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        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 23, 2017, Vol. 18, No. 59


                            Headlines


A U S T R I A

RAIFFEISEN BANK: Moody's Raises Subordinated Debt Rating to Ba1


C R O A T I A

AGROKOR DD: Croatia Wants to Hold Talks with Int'l Creditors


F I N L A N D

TAKOMA OYJ: Opts to File Bankruptcy Application


G R E E C E

FRIGOGLASS: S&P Lowers CCR to 'CC' on Intended Exchange Offer


I R E L A N D

ST. PAUL'S CLO VII: Moody's Assigns B2 Rating to Class F Notes
ST. PAUL'S CLO VII: Fitch Rates EUR10MM Class F Notes B-sf


N O R W A Y

TELLUS PETROLEUM: Parent Opts to Commence Liquidation Process


P O R T U G A L

CAIXA GERAL: S&P Affirms 'B' Rating & Maintains on Watch Positive


R U S S I A

AGENCY FOR HOUSING: S&P Affirms 'BB+/B' Issuer Credit Ratings
DETSKY MIR: S&P Assigns 'B+' CCR, Outlook Stable
INTECHBANK: Central Bank Submits Bankruptcy Case to Court
KHANTY-MANSIYSK: S&P Revises Outlook to Pos. & Affirms 'BB+' ICR
MEZHTOPENERGOBANK: S&P Affirms 'B-/C' Counterparty Credit Ratings

MOSCOW CITY: S&P Affirms 'BB+' ICR & Revises Outlook to Positive
TATFONDBANK: Central Bank Submits Bankruptcy Case to Court
YAMAL-NENETS: S&P Revises Outlook to Pos. & Affirms 'BB+' ICR

* S&P Revises Outlooks on 13 Russian Companies to Positive


S E R B I A

BANINI: Jaffa Acquires Business for EUR15 Million


S P A I N

ABENGOA SA: Moody's Withdraws Ca Corporate Family Rating
AYT COLATERALES: Fitch Affirms CCCsf Rating on Class D Notes


S W E D E N

LANDSHYPOTEK BANK: S&P Assigns 'BB+' Rating to Proposed AT1 Notes


U N I T E D   K I N G D O M

AI MISTRAL: Moody's Assigns B2 CFR, Outlook Negative
BRANTANO: Files Notice of Intention to Appoint Administrators
COVENTRY CITY FOOTBALL: More Than GBP100MM Needed to Save Club
MATTHEWS LIMITED: Goes Into Liquidation, Six Lose Jobs

* UK: Quarter of Home Care Providers Face Insolvency Risk


                            *********



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A U S T R I A
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RAIFFEISEN BANK: Moody's Raises Subordinated Debt Rating to Ba1
---------------------------------------------------------------
Moody's Investors Service upgraded Raiffeisen Bank International
AG (RBI)'s long-term debt and deposit ratings to Baa1 from Baa2.
At the same time, the rating agency upgraded RBI's baseline
credit assessment (BCA) to ba2 from ba3, its adjusted BCA to ba1
from ba2, and its long-term counterparty risk assessment to
Baa1(cr) from Baa2(cr). The outlook on the long-term debt and
deposit ratings changed to stable from positive.

The rating action follows the merger between Raiffeisen
Zentralbank Oesterreich AG (RZB), so far the lead institution of
Austria's biggest cooperative group, and its Central and Eastern
Europe (CEE) focused subsidiary RBI, which took effect on 18
March 2017. Upon the merger, RBI will assume RZB's assets and
liabilities, while RZB is legally dissolved. The rating upgrade
is supported by the continued strengthening of RBI's credit
fundamentals, whilst the stable outlook reflects Moody's
expectation that the bank will be able to sustain its more solid
financial metrics going forward.

As part of rating action, Moody's upgraded RBI's subordinated
debt ratings to Ba1 from Ba2, and certain preferred stock ratings
issued by finance vehicles to B1(hyb) from B2(hyb). Those
instruments are backed and assumed by RBI. The bank's short-term
ratings were affirmed at P-2 as well as its short-term P-2(cr)
counterparty risk assessment.

In addition, Moody's upgraded RZB's long-term debt to Baa1 from
Baa2, and changed the outlook to stable from positive, as well as
its subordinated debt ratings to Ba1 from Ba2.

Moody's will withdraw RZB's Baa2(cr)/P-2(cr) long- and short-term
counterparty risk assessment and its Baa2 long-term issuer and
deposit ratings. Further, the rating agency will withdraw RZB's
short-term deposit ratings at P-2.

RATINGS RATIONALE

UPGRADE OF RBI'S RATINGS

The upgrade of RBI's long-term deposit and senior unsecured debt
ratings to Baa1 reflects: (1) the upgrade of the bank's BCA to
ba2 from ba3; (2) the upgrade of its adjusted BCA to ba1 from
ba2, incorporating the rating agency's "high" affiliate support
assumption from Austria's Raiffeisen Banking Group (RBG, unrated)
from "moderate" previously; (3) the unchanged results of Moody's
Advanced LGF analysis; and (4) the agency's unchanged assumptions
of a low probability of government support from the Austrian
government (Aa1, stable), which leads to no additional rating
uplift for RBI's long-term ratings.

The upgrade of RBI's standalone BCA to ba2 primarily reflects the
bank's improved asset quality and capitalization. Based on pro-
forma financials, i.e. including the merger effects with RZB,
RBI's problem loans as a percentage of gross loans have improved
to 8.7% at end-2016 from 11.1% in 2015. The disposal of problem
loans, the ongoing economic recovery in many CEE countries, as
well as the bank's successful de-risking of its balance sheet
were key drivers for the improvement. Similarly, RBI's pro-forma
fully-loaded common equity tier 1 (CET1) capital ratio improved
to 12.4% at end-2016 from 10.5% at end-2015, mainly reflecting
the bank's organic improvements during 2016, including the
continued reduction in risk-weighted assets. The improving trend
in RBI's capitalization was further supported by higher pro-forma
pre-tax profits which increased to EUR946 million in 2016 from
EUR777 million in 2015, benefiting from lower credit costs. In
addition, the transfer of domestic banking activities from RZB
will help to diversify RBI's credit profile by increasing the
share of less cyclical and lower risky assets.

The upgrade of RBI's adjusted BCA to ba1 follows the upgrade of
its standalone BCA and also takes into account the rating
agency's affiliate support assumption from Austria's Raiffeisen
Banking Group (RBG, unrated), which was raised to "high" from
"moderate" previously. Moody's assumption of a stronger cohesion
within the co-operative group reflects that RBI will become a
direct member of the banking group's institutional protection
scheme (IPS). However, Moody's continues to believe that RBG's
financial capacity to provide support to RBI, in case of need,
remains limited.

The upgrade of RBI's long-term senior ratings by one notch to
Baa1 follows the one-notch upgrade of its BCA. Under Moody's
Advanced LGF analysis, RBI's Baa1 long-term deposit and senior
unsecured debt ratings take into account an extremely low loss-
given-failure, reflecting the bank's ample amounts of
subordinated debt instruments which provide protection for these
higher ranking liabilities. This analysis leads Moody's to
incorporate three notches of uplift from RBI's ba1 adjusted BCA.
Moody's Advanced LGF analysis takes into account the severity of
loss faced by the different liability classes in resolution.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on RBI's long-term debt and deposit ratings
reflects Moody's expectation that the bank will be able to
sustain its improved credit profile. This should result in a
further stabilisation of the banks' financial fundamentals over
the next 12-18 months, despite continued pressures from the
persistent low interest-rate environment on the bank's earnings.

WITHDRAWAL OF RZB'S RATINGS

Moody's will withdraw RZB's long-term Baa2 issuer and deposits
ratings, its short-term P-2 deposit ratings, as well as its long-
and short-term Baa2(cr)/P-2(cr) CR Assessments, because RZB
ceased to exist as legal entity with effect from 18 March 2017.
Those senior unsecured debt and subordinated debt instruments,
which were previously issued by RZB and are now assumed by RBI,
have been upgraded to Baa1 from Baa2, and to Ba1 from Ba2.

WHAT COULD CHANGE THE RATING UP/DOWN

RBI's long-term ratings could be upgraded following (1) the
upgrade of the bank's BCA; and/or (2) an increase in Moody's
affiliate support assumption from Austria's RBG.

Upward pressure on RBI's BCA could be triggered by (1) a further
meaningful improvement in the bank's asset quality; (2) a further
strengthening of its capitalisation; and (3) a material
improvement in the bank's profitability without an increase in
its risk profile.

RBI's long-term ratings could be downgraded following (1) a
downgrade of the bank's BCA; (2) a reduction of Moody's affiliate
support assumption from Austria's RBG; and/or (3) a significant
decrease in RBI's bail-inable debt cushion, leading to fewer
notches of rating uplift under Moody's Advanced LGF analysis.

Downward pressure on RBI's BCA could be triggered by (1) a
material set-back in the bank's effort to contain asset risks;
(2) substantial additional credit charges beyond those currently
expected; (3) an extended period of declining earnings and
internal capital generation; and/or (4) a decline in
capitalisation and regulatory capital buffers.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Raiffeisen Bank International AG

- LT Bank Deposits to Baa1 from Baa2, Outlook change to Stable
   from Positive

- LT Senior Unsecured to Baa1 from Baa2, Outlook changed to
   Stable from Positive

- LT Senior Unsecured (MTN) to (P)Baa1 from (P)Baa2

- Subordinate to Ba1 from Ba2

- Subordinate (MTN) to (P)Ba1 from (P)Ba2

- Baseline Credit Assessment to ba2 from ba3

- Adjusted Baseline Credit Assessment to ba1 from ba2

- LT Counterparty Risk Assessment to Baa1(cr) from Baa2(cr)

Issuer: Raiffeisen Zentralbank Oesterreich AG

- BACKED Subordinate to Ba1 from Ba2 (debts assumed by RBI)

- BACKED Senior Subordinate to Ba1 from Ba2 (debts assumed by
   RBI)

- BACKED Senior Unsecured to Baa1 from Baa2, Outlook changed to
   Stable from Positive (debts assumed by RBI)

Issuer: RZB Finance (Jersey) III Limited

- BACKED Pref. Stock Non-cumulative to B1(hyb) from B2(hyb)
(debt assumed by RBI)

Issuer: RZB Finance (Jersey) IV Limited

- BACKED Pref. Stock Non-cumulative to B1(hyb) from B2(hyb)
(debt assumed by RBI)

Affirmations

Issuer: Raiffeisen Bank International AG

- ST Counterparty Risk Assessment, Affirmed, P-2(cr)

- ST Deposits, Affirmed, P-2

- ST Deposit Note / CD Program, Affirmed, P-2

- ST Commercial Paper, Affirmed, P-2

- Other Short Term Debt, Affirmed, (P)P-2

Withdrawals:

Issuer: Raiffeisen Zentralbank Oesterreich AG

- LT Issuer Rating, Withdrawn, previously rated Baa2, Positive

- LT Deposits, Withdrawn, previously rated Baa2, Positive

- LT Counterparty Risk Assessment, Withdrawn, previously rated
Baa2(cr)

- ST Counterparty Risk Assessment, Withdrawn, previously rated
P-2(cr)

- ST Bank Deposits, Withdrawn, previously rated P-2

Outlook Actions:

Issuer: Raiffeisen Bank International AG

- Outlook, Changed to Stable from Positive

Issuer: Raiffeisen Zentralbank Oesterreich AG

- Outlook, Changed to No Outlook from Positive

PRINCIPAL METHODOLOGY

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


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C R O A T I A
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AGROKOR DD: Croatia Wants to Hold Talks with Int'l Creditors
------------------------------------------------------------
Boris Cerni and Luca Casiraghi at Bloomberg News report that
Croatia's government wants to hold talks with Agrokor's
international creditors as it seeks to help obtain financing
without hurting the country's economy, to which Agrokor is a main
contributor.

Sberbank PJSC's First Deputy Chief Executive OfficerMaxim
Poletaev said in an interview Russia's biggest bank and Agrokor's
largest lender, wants founder Ivica Todoric to give creditors
control over its retail and other business in return for a
rescue, Bloomberg relates.

Agrokor said on March 19 it's working with key investors on a new
business model and that the survival of the company with annual
sales of about EUR6.5 billion (US$7 billion) is "not in
question", Bloomberg notes.

According to Bloomberg News, Prime Minister Andrej Plenkovic, as
cited by Jutarnji List newspaper, said in Zagreb on March 20
"After talks we've had with a number of Agrokor creditors and
after the economy minister speaks to suppliers, we want to talk
to Agrokor's international creditors."

"We are looking for a solution and we hope and wish that such a
solution won't have a negative impact on Croatia's economy and
its financial system."

Sberbank is the company's largest creditor after lending about
EUR1 billion in previous years and EUR100 million this month,
Bloomberg discloses.  The retailer needs to repay more than
EUR500 million of payment-in-kind loans maturing in June 2018 and
owes more than EUR2 billion to suppliers, Bloomberg states.

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).



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F I N L A N D
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TAKOMA OYJ: Opts to File Bankruptcy Application
-----------------------------------------------
The Boards of Takoma Oyj, which is a subsidiary of Panostaja and
parent company of Takoma Group, and Takoma Gears Oy, the Group's
subsidiary providing power transmission solutions, on March 20
decided to file bankruptcy applications.

Takoma's market situation has weakened significantly since the
confirmation of the reorganization program on September 30, 2014,
meaning that the assumptions regarding profitability and
financing have not been realized.  The Group has made heavy
losses due to the sharp decline of the offshore and marine
industry, which has diminished the Group's solvency and
liquidity.

Together with Panostaja, Takoma has implemented significant
functional changes aimed at adapting the operations to the
prevalent demand and making them profitable once more.  However,
the efforts to improve sales efficiency and acquire new customers
have failed to increase business volume, and the demand for
Takoma products on the market has been insufficient.

As a result of this, Takoma is currently unable to implement its
reorganization program and continue its operations without
significant additional financing.  Panostaja has worked with
Takoma to explore numerous additional financing options and the
possibilities of divesting Takoma's assets and operations without
finding a satisfactory solution.

The current economic climate and Takoma's predictions would have
required significant refinancing, which Panostaja, as the
majority owner, is not willing to provide.

"As an owner, we are strongly committed to developing all of our
companies, but sometimes we are unfortunately forced to make
difficult decisions.  It is deeply regrettable that we were
unable to find a solution for continuing Takoma's operations,
despite numerous attempts.  We will make every effort with the
bankruptcy administration to find someone to continue Takoma's
operations as soon as possible," Panostaja CEO Juha Sarsama says.

Once Takoma Oyj has been declared bankrupt, Panostaja's IFRS-
compliant control in Takoma will end and Takoma will no longer be
incorporated into Panostaja Group.  In accordance with the IFRS,
Takoma will be classified as a discontinued operation, and its
income statement and cash flow will be listed in Panostaja's
Interim Report of April 30, 2017 under discontinued operations.
In this context, Panostaja will record an estimated loss of MEUR
2.5 in the Group's second quarter profit/loss.  In addition to
Takoma Oyj's shares, Panostaja Oyj will write down all
receivables from Takoma Oyj and Takoma Gears Oyj whose effect on
the Group's profit/loss has been taken into account in the loss
amount.

Panostaja is an investment company developing Finnish SMEs in the
role of an active majority shareholder.  The company aims to be
the most sought-after partner for business owners selling their
companies as well as for the best managers and investors.
Together with its partners, Panostaja increases the Group's
shareholder value and creates Finnish success stories.  Panostaja
operates in eight business segments, and Panostaja Group employs
some 1,300 staff.  Panostaja's shares (PNA1V) are quoted on the
NASDAQ OMX Helsinki Stock Exchange.  In the 2016 financial
period, the Group's official net sales totaled MEUR 172.5.


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G R E E C E
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FRIGOGLASS: S&P Lowers CCR to 'CC' on Intended Exchange Offer
-------------------------------------------------------------
S&P Global Ratings said that it lowered its corporate credit
rating on Greek ice-cold merchandiser Frigoglass to 'CC' from
'CCC+'.  The outlook is negative.

At the same time, S&P lowered the issue rating on the
EUR250 million senior unsecured notes issued by group financing
vehicle Frigoglass Finance B.V. from 'CCC+' to 'CC'.

On March 20, 2017, Frigoglass announced its intention, as part of
a broad capital restructuring, to offer noteholders the option to
exchange their senior notes with new first-lien notes.  The
remainder of the existing notes would be exchanged for 50% of new
second-lien notes and 50% of company shares.

S&P views this intention to undertake an exchange offer as
distressed because Frigoglass would not meet its financial
obligations under the terms of the existing senior notes.

Under the proposed terms, S&P understands that the EUR250 million
notes due in May 2018 will not be repaid (principal and interest)
in full and on time.  The coupon of the new first-lien and
second-lien notes will be lower than existing ones (8.25% per
annum) and the maturity of the notes will be different: December
2021 instead of May 2018.  Some of the existing notes will be
exchanged against more junior securities like second-lien notes
and shares in Frigoglass.  Finally, there will be no cash
payments for debt repayment or interest until transaction
closing.

The proposed transaction remains subject to a signed agreement
between the company's main shareholder, the core banks, and the
main noteholders.  On completion of the transaction S&P will
likely lower the issuer rating to 'SD' and shortly thereafter
review S&P's ratings on Frigoglass based on the new capital
structure in place, its liquidity position, and the outlook for
the business.

The outlook is negative.  If the transaction goes ahead, at
closing S&P expects to lower the corporate credit rating to 'SD'
and the rating on the senior unsecured notes to 'D'.

Subsequently, S&P would reevaluate the ratings in light of the
new capital structure, liquidity position, and business outlook
over the coming years.


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I R E L A N D
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ST. PAUL'S CLO VII: Moody's Assigns B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by St. Paul's CLO
VII DAC:

-- EUR229,400,000 Class A-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aaa (sf)

-- EUR10,600,000 Class A-2 Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aaa (sf)

-- EUR23,150,000 Class B-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aa2 (sf)

-- EUR9,500,000 Class B-2 Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aa2 (sf)

-- EUR21,100,000 Class B-3 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aa2 (sf)

-- EUR5,000,000 Class C-1 Senior Secured Deferrable Floating
    Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

-- EUR15,000,000 Class C-2 Senior Secured Deferrable Floating
    Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

-- EUR21,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Baa2 (sf)

-- EUR25,250,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Ba2 (sf)

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

RATINGS RATIONALE

Moody's definitive ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. The definitive ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the Collateral Manager, Intermediate
Capital Managers Limited ("ICM"), has sufficient experience and
operational capacity and is capable of managing this CLO.

St. Paul's CLO VII is a managed cash flow CLO. At least 90% of
the portfolio must consist of secured senior loans or senior
secured bonds and up to 10% of the portfolio may consist of
unsecured senior loans, second lien loans, high yield bonds and
mezzanine loans. The portfolio is expected to be at least 65%
ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe. The remainder of the portfolio will be acquired during
the six month ramp-up period in compliance with the portfolio
guidelines.

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

In addition to the ten classes of notes rated by Moody's, the
Issuer issued EUR43,990,000 of subordinated notes. Moody's will
not assign rating to this class of notes.

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

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

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

Loss and Cash Flow Analysis:

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

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche.

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

Par Amount: EUR400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 4.0%

Weighted Average Coupon (WAC): 5.0%

Weighted Average Recovery Rate (WARR): 42.5%

Weighted Average Life (WAL): 8 years

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with local currency country
risk ceiling ratings of between A1 to A3 cannot exceed 10%.
Following the effective date, and given these portfolio
constraints and the current sovereign ratings of eligible
countries, the total exposure to countries with a LCC of A1 or
below may not exceed 10% of the total portfolio. The remainder of
the pool will be domiciled in countries which currently have a
LCC of Aa3 and above. Given this portfolio composition, the model
was run without the need to apply portfolio haircuts as further
described in the methodology.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted an additional sensitivity analysis, which was an
important component in determining the provisional 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 each of the rated notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds
to higher expected losses), holding all other factors equal.

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

Class B-3 Senior Secured Floating Rate Notes: -2

Class C-1 Senior Secured Deferrable Floating Rate Notes: -2

Class C-2 Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

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

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

Class B-1 Senior Secured Floating Rate Notes: -3

Class B-2 Senior Secured Fixed Rate Notes: -3

Class B-3 Senior Secured Floating Rate Notes: -3

Class C-1 Senior Secured Deferrable Floating Rate Notes: -4

Class C-2 Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Methodology Underlying the Rating Action:

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


ST. PAUL'S CLO VII: Fitch Rates EUR10MM Class F Notes B-sf
----------------------------------------------------------
Fitch Ratings has assigned St. Paul's CLO VII Designated Activity
Company notes final ratings, as follows:

EUR229.4 million class A-1 notes due 2030: 'AAAsf'; Outlook
Stable
EUR10.6 million class A-2 notes due 2030: 'AAAsf'; Outlook Stable
EUR23.15 million class B-1 notes due 2030: 'AAsf'; Outlook Stable
EUR9.5 million class B-2 notes due 2030: 'AAsf'; Outlook Stable
EUR21.1 million class B-3 notes due 2030: 'AAsf'; Outlook Stable
EUR5 million class C-1 notes due 2030: 'Asf'; Outlook Stable
EUR15 million class C-2 notes due 2030: 'Asf'; Outlook Stable
EUR21 million class D notes due 2030: 'BBBsf'; Outlook Stable
EUR25.25 million class E notes due 2030: 'BBsf'; Outlook Stable
EUR10 million class F notes due 2030: 'B-sf'; Outlook Stable
EUR43.99 million subordinated notes: not rated

St. Paul's CLO VII Designated Activity Company is a cash flow
collateralised loan obligation (CLO).

KEY RATING DRIVERS

'B+'/'B' Portfolio Credit Quality
Fitch expects the average credit quality of obligors to be in the
'B+'/'B' category. The agency has public ratings or credit
opinions on all the obligors in the identified portfolio, apart
from one. The weighted average rating factor (WARF) of the
identified portfolio which represents 67.8% of the target par
amount, is 31.3, below the maximum WARF of 33.

High Recovery Expectations
At least 90% of the portfolio will comprise senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured, and mezzanine
assets. Fitch has assigned Recovery Ratings to all obligations in
the identified portfolio apart from one. The average recovery
rate (WARR) of the identified portfolio is 68.7%, above the
minimum WARR of 66.75%.

Diversified Asset Portfolio
The transaction contains a covenant that limits the top 10
obligors in the portfolio to 20% of the portfolio balance. This
ensures that the asset portfolio will not be exposed to excessive
obligor concentration.

Limited Interest Rate Risk
Unhedged fixed-rate assets cannot exceed 15% of the portfolio
while fixed-rate liabilities represent 5% of the target par
amount. The transaction is therefore partially hedged against
rising interest rates.

Unhedged Non-Euro Assets Exposure
The transaction is allowed to invest up to 2.5% of the portfolio
in non-euro-denominated primary market assets without entering
into an asset swap on settlement, subject to principal haircuts.
Unhedged assets may only be purchased if after the applicable
haircuts the aggregate balance of the assets is above the
reinvestment target par balance. Additionally, no credit in the
overcollateralisation (OC) tests is given to assets left unhedged
for more than 180 days after settlement.

TRANSACTION SUMMARY

Net proceeds from the notes will be used to purchase a EUR400m
portfolio of mainly euro-denominated leveraged loans and bonds.
The transaction has a four-year reinvestment period. The
underlying portfolio of assets will be managed by Intermediate
Capital Managers Limited.

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

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

The class B-3 and C-2 notes are not subject to 0% Euribor floor
during the non-call period, which ends in April 2019 and the
spreads on the notes will be 0.17% higher than the spreads on
class B-1 and C-1 notes. After the non-call period, the class B-3
and C-2 notes will have a 0% Euribor floor and the spreads will
step down to the same level as class B-1 and C-1, respectively.

RATING SENSITIVITIES

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


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


TELLUS PETROLEUM: Parent Opts to Commence Liquidation Process
-------------------------------------------------------------
Sequa Petroleum N.V. (the "Company") on March 17 disclosed that
consultation procedures with Tellus Petroleum AS ("Tellus")
employee representatives have concluded and Tellus board and
shareholder meetings have resolved to commence the Tellus
liquidation process in accordance with the Norwegian Companies
Act.

As stated in the Company's press release of February 9, 2017, the
cessation of its business in Norway, now followed by the
commencement of liquidation, constitutes under article 10 (g) of
the Terms and Conditions of the Bonds a potential default of the
Bonds.

The Company expects this potential default, together with the
potential default related to the outstanding Q4 2016 Bond coupon
as stated in the Company's press release of November 14, 2016, to
be resolved with Sapinda's support as the Company understands
that the required majority of the Bonds is held by Sapinda and
affiliates.

While amounts received to date have not matched the timing or
quantum requested, the Company currently expects to be able to
draw sufficient funds from its convertible loan facilities with
Sapinda Invest Sarl and Sapinda Asia Limited to enable it to
continue to trade and complete the liquidation of Tellus.

The net funds expected from the repatriation of liquidated assets
together with debt restructuring and possibly new equity and/or
debt funds will enable the Company to progress selected high
quality appropriately sized acquisition targets of production and
development assets elsewhere that are value-accretive and provide
cash flow.


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


CAIXA GERAL: S&P Affirms 'B' Rating & Maintains on Watch Positive
-----------------------------------------------------------------
S&P Global Ratings maintained on CreditWatch with positive
implications its 'BB-' long-term counterparty credit rating on
Portugal-based Caixa Geral de Depositos S.A. (CGD).  S&P also
affirmed its 'B' short-term rating on the bank.

At the same time, S&P maintained on CreditWatch positive its
'CCC' issue rating on the nondeferrable subordinated debt issued
or guaranteed by CGD.  In addition, S&P raised the issue rating
on the bank's junior subordinated debt to 'CCC-' from 'D', and
placed it on CreditWatch positive.  The issue rating on the
bank's preference shares remains at 'D'.

The rating action reflects the ongoing recapitalization of CGD,
which, if completed as planned, could allow the bank to operate
with stronger capital.  However, S&P now assess CGD's capital
position as very weak instead of weak.  This reflects the bank's
reported losses for year-end 2016, which were higher than S&P had
anticipated.  This has led S&P to revise its stand-alone credit
profile (SACP) downward to 'b' from 'b+'.

CGD's published results for 2016 revealed a record EUR1.9 billion
loss, resulting mainly from the EUR3 billion provisioning effort
conducted in the last quarter of the year.  This also resulted in
the bank reporting regulatory capital ratios for end-2016 that
are below the 2017 requirements of the European Central Bank's
Supervisory Review and Evaluation Process for CGD.  Based on
reported losses, S&P estimates that CGD's risk-adjusted capital
(RAC) ratio could decline to 2%-3% as of end-2016, from 4.3% a
year before.

The bank is currently working on the placement of a EUR0.5
billion additional Tier 1 instrument (AT1) among private
investors, which it plans to complete in the next few weeks.  If
successful, CGD will then receive a EUR2.5 billion cash injection
from the government, as contemplated in its recapitalization
plan.  The cash injection, together with the AT1 issuance and the
first stage of its recapitalization (completed in January 2017),
could allow the bank to operate with a RAC ratio slightly above
5%.  The first stage entailed the conversion of CGD's EUR0.9
billion contingent convertible securities (cocos) into equity and
the transfer of the government's shares in ParCaixa SGPS, S.A. --
with a EUR0.5 billion book value -- to the bank.

If the bank failed to place the AT1 among private investors, S&P
believes that the Portuguese government would still recapitalize
the bank, but the terms and timing of the recapitalization would
probably be different.  In such a scenario, S&P would assess the
implications for its assessment of CGD's creditworthiness.

CGD has also just announced a new strategic plan for 2017-2020,
with the ultimate goal of ensuring the bank's long-term
profitability.  The plan will be carried out under a newly
appointed management team.  S&P expects any progress to be
limited over the next 12 months, and as such S&P forecasts that
the bank will remain lossmaking in 2017.

S&P's revision of CGD's SACP has not resulted in S&P lowering the
'BB-' long-term rating on the bank because S&P now incorporates
two notches of government support instead of one.  This reflects
S&P's unchanged view that there is a very high likelihood that
the government of Portugal would provide CGD with timely and
sufficient extraordinary support in case of need.

The rating on CGD's nondeferrable subordinated instruments
remains at 'CCC'.  S&P's downward revision of the bank's SACP is
compensated for by the statement of the European Commission (EC)
that it does not view the upcoming recapitalization of CGD with
public funds as state aid.  This implies that there is no longer
a risk that the EC could require CGD to stop coupon payments on
such instruments.

S&P's raising of the issue rating on CGD's junior subordinated
debt to 'CCC-' from 'D' reflects that the bank has just resumed
coupon payments on the instrument, after receiving authorization
from the EC to do so.

The rating on the preference shares remains at 'D', reflecting
that the bank has not yet resumed coupon payments on these
instruments.  S&P understands, however, that CGD will soon resume
coupon payments on the preference shares, at which point S&P
would likely raise the rating from 'D'.

The CreditWatch positive on S&P's long-term rating on CGD
continues to reflect the possibility of us raising the rating by
one notch.  An upgrade would depend on the bank completing its
recapitalization as announced, and on S&P concluding that its RAC
ratio will increase and be maintained sustainably above 5% over
the next 12 months.

Conversely, S&P would likely affirm the long-term rating if it
were to conclude that the bank's capital will not strengthen
sufficiently over S&P's outlook horizon, even if the
recapitalization is completed in a timely manner and as planned.

Any meaningful delays in the undertaking of the recapitalization
or changes to the original plans could lead to a different rating
action.

The CreditWatch on CGD's nondeferrable subordinated debt and
junior subordinated debt reflects that S&P could raise its issue
ratings on the instruments by up to two notches.  The extent of
the upgrade would depend on the completion of the
recapitalization in the terms and amount announced, and on S&P's
assessment of CGD's post-transaction capital strength.


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


AGENCY FOR HOUSING: S&P Affirms 'BB+/B' Issuer Credit Ratings
-------------------------------------------------------------
S&P Global Ratings said that it had revised its outlook on
Russia's Agency for Housing Mortgage Lending JSC (AHML) to
positive from stable.  At the same time, S&P affirmed its 'BB+/B'
long- and short-term issuer credit ratings and 'ruAA+' Russia
national scale rating on the agency.

The outlook revision on AHML follows S&P's recent similar action
on the Russian Federation.

S&P continues to consider AHML to be a government-related entity
(GRE) with a very high likelihood of extraordinary government
support.  In accordance with S&P's criteria for rating GREs,
S&P's view is based on its assessment of AHML's:

   -- Very important role as Russia's sole state developer of
      mortgage market infrastructure, which the government views
      as an essential policy tool to improve currently poor
      housing affordability.  AHML will play an increasing role
      in lowering primary mortgage rates through greater
      involvement in the secondary market.  The institution will
      continue to drive the development of the market for
      residential mortgage-backed securities and promote social
      and rental housing; and

   -- Very strong link with Russia, due to the state's 100%
      ownership of AHML, a very low likelihood of privatization
      in the medium to long term, the government's strong
      oversight of the company's strategy with a deputy chairman
      of the government heading the board, and the high
      reputation risk for the government if AHML were to default.
      Over 60% of AHML's existing wholesale debt is secured by
      state guarantees, although these are conditional on
      potential guarantor objections, as well as the form and
      timeliness of the claim.

S&P's long-term rating on AHML is therefore one notch higher than
S&P's assessment of its stand-alone credit profile (SACP).  S&P
uses its banking criteria to assess AHML's SACP, reflecting the
agency's status as a quasi-bank and the similarities of its
financial profile to those of a bank.  S&P assess AHML's SACP at
'bb'.

The positive outlook on AHML reflects that on Russia, while the
agency's SACP remains in line with S&P's base-case expectations.
A rating action on the local currency long-term sovereign rating
would likely be followed by a similar action on AHML.  Under
S&P's criteria for rating GREs, it caps its local currency
ratings on AHML at the level of the foreign currency sovereign
rating.

S&P could revise the outlook on AMHL to stable following a
similar action on Russia over the next year, or if S&P was to
revise down its assessment of the likelihood of extraordinary
government support, or if at the same time S&P saw a significant
deterioration in the agency's performance, leading to a downward
revision of the SACP.  However, S&P currently sees these
developments as unlikely.


DETSKY MIR: S&P Assigns 'B+' CCR, Outlook Stable
------------------------------------------------
S&P Global Ratings said it has assigned its 'B+' long-term
corporate credit rating to Russia-based children's goods and baby
food retailer PJSC Detsky Mir.  The outlook is stable.

At the same time, S&P assigned its 'ruA+' Russia national scale
rating to the company.

Detsky Mir is a leading specialty children's goods retailer in
Russia with 480 stores in 171 cities across the country, and
seven in Kazakhstan.  In addition to its own-branded stores, the
company operates 45 franchised Early Learning Centre (ELC)
stores.  In its stores and via the proprietary online platform,
Detsky Mir offers a broad product portfolio comprising toys,
stationary, footwear, apparel, and products for newborns.  In
2016, Detsky Mir generated Russian ruble (RUB) 79.5 billion in
revenues.  After the recent IPO, Detsky Mir's controlling
shareholder Sistema maintains a 52% share.

S&P considers Detsky Mir's lack of end-market diversity with a
focus on competitive children and baby products markets, its
geographic concentration in the Russian market, and risks related
to operating in volatile emerging markets as main constraints for
the business.  Detsky Mir operates in a fragmented retail market
exposed to the relatively discretionary nature of demand for
nonfood products, with demand softening for children's and baby
goods when the economy weakens and disposable income shrinks.
S&P considers that toys, apparel, and footwear segments (together
accounting for about 60% of revenues in 2016) are particularly
exposed to economic cycles.  In addition, the company's store
expansion program is subject to execution risk, in S&P's view,
although store expansion has been successful so far.  Management
plans to continue its ambitious program of opening new stores and
intends to add up to 250 stores in the medium term from 480 open
as of Dec. 31, 2016.

Detsky Mir benefits from its position as the leading player in
the Russian children's and baby goods retail market with its
strong brand recognition and solid store network in 178 cities
across Russia and Kazakhstan.  Detsky Mir benefits from its solid
position in the baby food segment, the most resilient to economic
downturns.  In addition, the high share of apparel sales that
Detsky Mir derives from its own private label products and its
new centralized distribution center, completed in 2016, support
sound profitability and a competitive pricing policy.  This
enhances the company's competitive advantage and supports S&P's
expectation of robust like-for-like annual sales growth of more
than 10%, well in excess of the 4.5% nominal GDP growth S&P
forecasts for Russia in 2017.

The company's financial risk profile reflects its growth
strategy, which includes an ambitious store rollout program and
sizable investment in working capital and capital expenditures
(capex).  In addition, Detsky Mir will continue paying
progressively growing dividends to its shareholders.  S&P
believes this will keep discretionary cash flow negative in the
medium term, and constrain the company's deleveraging prospects.

S&P sees a relatively strong level of credit metrics such as S&P
Global Ratings-adjusted debt to EBITDA of 3.5x-4.5x, funds from
operations (FFO) to debt of 12%-15%, and positive free operating
cash flow (FOCF) generation over 2016-2018 as supporting factors
for the rating.  Detsky Mir has adopted a financial policy such
that the target weighted-average maturity of the company's debt
is set to be at least two years.  At 2.7x average debt maturity
as of Feb. 28, 2017, S&P views Detsky Mir's debt maturity profile
as relatively short compared to peers, in particular those based
in the developed markets.  This does not constrain the rating at
present, but could limit the headroom if the company fails to
secure medium-term funds to finance its expansionary program.

S&P Global Ratings' base case assumes:

   -- Anticipated total annual sales growth of 20%-30% in the
      next two years, reflecting the improved economic climate in
      Russia, the company's accelerated store expansion program,
      and S&P's expectation of robust like-for-like sales growth
      underpinned by Detsky Mir's strong market positions.

   -- Profitability will benefit from the ongoing cost efficiency
      program and centralized logistics owing to the new
      distribution center, allowing the company to raise its
      reported EBITDA margins of more than 10% in the medium
      term, compared with 10.3% in 2016 and 8.5% in 2015.

   -- S&P deducts surplus cash that is not "trapped" in tills or
      in transit, as it is used to partially cover sizable short-
      term debt maturities.

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

   -- S&P Global Ratings-adjusted debt to EBITDA of about 3.5x-
      4.5x in 2017 and 2018.

   -- Adjusted EBITDAR to cash interest plus rents coverage of
      1.5x-1.6x in 2017 and 2018.

S&P applies its group rating methodology to Detsky Mir and
Sistema -- the company's controlling shareholder.  S&P considers
Detsky Mir a moderately strategic subsidiary of Sistema because
S&P believes that, in line with Sistema's investment strategy,
Detsky Mir is unlikely to be sold in the short term.  S&P
understands that Sistema will maintain its stake in Detsky Mir at
above 50%.  Detsky Mir has also been successful in growing its
earnings and dividends, and is likely to receive support from the
group should it fall into financial difficulty, in S&P's opinion.
As a result, S&P includes one notch of uplift to the ratings on
Detsky Mir due to group support.

The stable outlook on Detsky Mir reflects S&P's expectation that
the group will maintain resilient operating performance while
demonstrating prudent liquidity management by financing expansion
capex with medium-term funding and maintaining weighted-average
debt maturity of at least two years.  S&P expects Detsky Mir will
maintain its adjusted debt-to-EBITDA ratio of comfortably less
than 5x over the next 12 months, while EBITDAR to cash interest
plus rents will remain at least 1.6x posted in 2016, while
reported FOCF will remain positive.  Likewise, S&P do not
anticipate lowering the rating on Sistema below 'BB-'.

S&P could take a negative rating action if Detsky Mir's overall
liquidity management and financial policy become more aggressive.
In S&P's view, this might happen if the group fails to maintain
its weighted-average debt maturity of at least two years or
overinvests in capex or working capital without proper execution,
which could cause liquidity to erode and leverage to increase.

S&P could also lower the ratings if it forecast that S&P Global
Ratings-adjusted debt to EBITDA will approach 5x and EBITDAR
coverage ratio will fall from about 1.6x posted in 2016.  FOCF
turning negative could be another reason for a downgrade.  This
could result from weakening profitability due to soft demand,
execution risk, and the challenging economic environment, or if
the group decides to pursue large-scale debt-financed
acquisitions.  S&P would also lower the ratings if it sees a
deterioration in liquidity.

An upgrade is unlikely at this stage, and is limited both by
Detsky Mir's relatively high lease-adjusted leverage and the
limitations of its business risk profile.


INTECHBANK: Central Bank Submits Bankruptcy Case to Court
---------------------------------------------------------
PRIME Business News Agency Russia's central bank has submitted a
bankruptcy case against Tatarstan republic's Intechbank to the
Arbitration Court of the republic of Tatarstan.

The case against Intechbank was sent on March 15 and proceedings
started on March 17, PRIME relates.  A hearing of the case was
scheduled for April 12, PRIME discloses.

The Deposit Insurance Agency (DIA) was listed as the third party
in the case, PRIME notes.

On March 3, the central bank revoked the license of Intechbank,
ranked 138th largest by assets as of Feb. 1, PRIME relays.

The capital gap of Intechbank at RUR14 billion as of Feb. 1,
PRIME states.

Intechbank ranked 138th largest by assets as of Feb. 1.


KHANTY-MANSIYSK: S&P Revises Outlook to Pos. & Affirms 'BB+' ICR
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Khanty-Mansiysk
Autonomous Okrug (KMAO), an oil-producing region in the western
part of Siberia, to positive from stable.  At the same time, S&P
affirmed its 'BB+' long-term issuer credit rating and 'ruAA+'
Russia national scale rating on the okrug.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 "EU CRA Regulation"), the ratings on KMAO are subject
to certain publication restrictions set out in Article 8a of the
EU CRA Regulation, including publication in accordance with a
pre-established calendar.  Under the EU CRA Regulation,
deviations from the announced calendar are allowed only in
limited circumstances and must be accompanied by a detailed
explanation of the reasons for the deviation.  In the case of
KMAO, the deviation has been caused by S&P's revision of the
outlook on the Russian Federation to positive from stable on
March 17, 2017.  The next scheduled publication for the rating of
KMAO is on Aug. 18, 2017.

                         RATIONALE

The rating action on KMAO follows S&P's recent revision of the
outlook on the Russian Federation to positive from stable.

The long-term rating on KMAO continues to be capped by the 'BB+'
foreign currency long-term rating on the Russian Federation,
because S&P believes that Russian local and regional governments
(LRGs) cannot be rated above the sovereign.  This reflects S&P's
view of Russia's institutional framework, in which LRGs have very
restricted revenue autonomy and are unable to withstand possible
negative intervention by the federal government.

In accordance with S&P's criteria, it assess KMAO's stand-alone
credit profile (SACP) at 'bbb-', one notch higher than the issuer
credit rating.  The SACP results from the combination of S&P's
assessment of an LRG's individual credit profile and the effects
S&P sees of the institutional framework in which it operates.
The SACP is not a rating but a means of assessing an LRG's
intrinsic creditworthiness under the assumption that there is no
sovereign rating cap.

The SACP assessment on KMAO reflects the okrug's strong
liquidity, very low contingent liabilities, low debt, and average
budgetary performance.  S&P assess KMAO's economy as average
overall and neutral for its creditworthiness, because in S&P's
opinion, its very high wealth levels are subject to high
concentration.  The SACP is constrained by our view of Russia's
volatile and unbalanced institutional framework and KMAO's weak
budgetary flexibility.  S&P also takes into account the okrug's
weak financial management in an international context.

Currently, S&P don't envisage any potential upward revision of
its assessment of the okrug's SACP.

                              OUTLOOK

The positive outlook mirrors that on Russia.  Any rating action
S&P takes on the sovereign would likely be followed by a similar
action on KMAO.

S&P could revise the outlook on KMAO to stable following a
similar action on Russia.  Alternatively, a downward revision of
S&P's assessment of KMAO's SACP, which is currently one notch
higher than the long-term rating on the okrug, could translate
into ratings pressure.  However, S&P sees this development as
unlikely.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

                                     Rating
                                     To             From
Khanty-Mansiysk Autonomous Okrug
Issuer Credit Rating
  Foreign and Local Currency         BB+/Pos./--    BB+/Stable/--
  Russia National Scale              ruAA+/--/--    ruAA+/--/--


MEZHTOPENERGOBANK: S&P Affirms 'B-/C' Counterparty Credit Ratings
-----------------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'B-/C' long- and
short-term counterparty credit ratings and 'ruBBB-' Russia
national scale rating on Mezhtopenergobank OJSC (MTEB).

S&P subsequently withdrew its ratings on MTEB at the bank's
request.  At the time of withdrawal, the outlook was negative and
there was no outstanding debt rating.

The affirmation reflects S&P's view that MTEB will maintain its
niche market position in Russia, servicing small and midsize
corporate entities from the construction, real estate, trade, and
manufacturing sectors.  S&P's ratings also reflected its
expectations that the bank's capitalization and ability to
generate capital internally will remain weak in the next 12-18
months.

At the time of withdrawal, the outlook was negative, reflecting
the possibility of further deterioration of the bank's asset
quality and relatively low provisioning of nonperforming loans
(NPLs), which S&P believed could lead to credit losses exceeding
the sector average.  In S&P's view, MTEB's high single-name
concentration and relatively large exposure to real estate and
construction might lead to the material increase in NPLs if one
or a few large exposures do not perform.


MOSCOW CITY: S&P Affirms 'BB+' ICR & Revises Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Russia's capital city
of Moscow to positive from stable.  At the same time, S&P
affirmed its 'BB+' long-term issuer credit rating and 'ruAA+'
Russia national scale rating on the city.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 "EU CRA Regulation"), the ratings on the city of Moscow
are subject to certain publication restrictions set out in Art 8a
of the EU CRA Regulation, including publication in accordance
with a pre-established calendar.  Under the EU CRA Regulation,
deviations from the announced calendar are allowed only in
limited circumstances and must be accompanied by a detailed
explanation of the reasons for the deviation.  In this case, the
deviation has been caused by the revision of the outlook on the
Russian Federation to positive from stable on March 17, 2017.
The next scheduled rating publication on the City of Moscow is
planned for Aug. 18, 2017.

                             RATIONALE

The rating action on Moscow follows S&P's recent revision of the
outlook on the Russian Federation to positive from stable.

The long-term rating on Moscow continues to be capped by the
'BB+' long-term foreign currency sovereign rating on the Russian
Federation because S&P believes that Russian local and regional
governments (LRGs) cannot be rated above the sovereign.  This
reflects S&P's view of Russia's institutional framework, in which
LRGs have very restricted revenue autonomy and are unable to
withstand possible negative intervention bythe federal
government.

In accordance with S&P's criteria, it assess Moscow's stand-alone
credit profile (SACP) at 'bbb', two notches higher than the
issuer credit rating.  The SACP results from the combination of
S&P's assessment of an LRG's individual credit profile and the
effects we see of the institutional framework in which it
operates.

The 'bbb' SACP reflects Moscow's position as Russia's economic,
administrative, and financial center.  This position underpins
Moscow's very low debt, exceptional liquidity, strong budgetary
performance, and very low contingent liabilities.  Moscow's
average budgetary flexibility and average economy are neutral for
the city's creditworthiness, in S&P's view.  Moscow's SACP is
constrained by Russia's volatile and unbalanced institutional
framework, under which distribution of revenues and expenditures
largely depends on decisions by the federal government, and by
what S&P views as the city's weak financial management, given the
only emerging nature of long-term planning and limited
predictability of budget policy.

                               OUTLOOK

The positive outlook on Moscow mirrors that on Russia.  Any
rating action S&P takes on the sovereign would likely be followed
by a similar action on Moscow.

S&P could revise the outlook to stable in case of a similar
action on Russia.  S&P views a downside scenario based on
Moscow's intrinsic creditworthiness as highly unlikely, because
S&P's assessment of Moscow's SACP is two notches higher than the
long-term rating on the city.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

                                     Rating
                                     To             From
Moscow (City of)
Issuer Credit Rating
  Foreign and Local Currency         BB+/Pos./--    BB+/Stable/--
  Russia National Scale              ruAA+/--/--    ruAA+/--/--
Senior Unsecured
  Local Currency                     BB+            BB+


TATFONDBANK: Central Bank Submits Bankruptcy Case to Court
----------------------------------------------------------
PRIME Business News Agency reports that Russia's central bank has
submitted a bankruptcy case against Tatarstan republic's
Tatfondbank to the Arbitration Court of the republic of
Tatarstan.

According to PRIME, the case against Tatfondbank was sent on
March 16, proceedings have not started yet.

The Deposit Insurance Agency (DIA) was listed as the third party
in the case, PRIME notes.

On March 3, the central bank revoked the license of Tatfondbank,
PRIME relates.

The capital gap of Tatfondbank was estimated at RUR96.7 billion
as of Feb. 1, PRIME discloses.

Tatfondbank ranked 42nd largest by assets as of Feb. 1.


YAMAL-NENETS: S&P Revises Outlook to Pos. & Affirms 'BB+' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Yamal-Nenets Autonomous
Okrug (YANAO), a gas-producing region in Russia's western
Siberia, to positive from stable.  At the same time, S&P affirmed
its 'BB+' long-term issuer credit rating and 'ruAA+' Russia
national scale rating on the okrug.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 "EU CRA Regulation"), the ratings on YANAO are subject
to certain publication restrictions set out in Art 8a of the EU
CRA Regulation, including publication in accordance with a pre-
established calendar.  Under the EU CRA Regulation, deviations
from the announced calendar are allowed only in limited
circumstances and must be accompanied by a detailed explanation
of the reasons for the deviation.  In the case of YANAO, the
deviation has been caused by the outlook change on the Russian
Federation to positive from stable on March 17, 2017.  The next
publication for the rating of YANAO is scheduled for June 9,
2017.

                              RATIONALE

The outlook revision on YANAO follows S&P's similar action on the
Russian Federation.

The long-term rating on YANAO continues to be capped by S&P's
'BB+' foreign currency long-term sovereign rating on Russia,
based on S&P's view that Russian local and regional governments
(LRGs) cannot be rated above the sovereign.  This reflects S&P's
opinion of Russia's institutional framework, in which LRGs have
very restricted revenue autonomy and are unable to withstand
possible negative intervention by the federal government.

S&P assess YANAO's stand-alone credit profile (SACP) at 'bbb-',
one notch higher than S&P's long-term rating on the okrug.  The
SACP results from the combination of S&P's assessment of an LRG's
individual credit profile and the effects S&P sees of the
institutional framework in which it operates.  The SACP is not a
rating, but a means of assessing an LRG's intrinsic
creditworthiness under the assumption that there is no sovereign
rating cap.

The 'bbb-' SACP reflects S&P's view of YANAO's average economy,
which enjoys very high wealth, but is subject to concentration
and has limited growth prospects.  S&P also factors into its SACP
assessment the region's strong liquidity, very low debt, and very
low contingent liabilities.  Average budgetary performance, which
is subject to volatility, and average budgetary flexibility, are
neutral for YANAO's creditworthiness.  The SACP is constrained by
S&P's view of Russia's volatile and unbalanced institutional
framework and weak financial management in an international
context.

Currently, S&P don't envisage any potential upward revision of
its assessment of the okrug's SACP.

                              OUTLOOK

The positive outlook on YANAO mirrors that on Russia.  Any rating
action S&P takes on the sovereign would likely be followed by a
similar action on YANAO.

S&P could revise the outlook on YANAO to stable following a
similar action on Russia.  Alternatively if S&P was to revise
down its assessment of YANAO's SACP, which is currently one notch
higher than the long-term rating on the okrug, this could also
translate into ratings pressure.  However, S&P sees this
development as unlikely.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

                                     Rating
                                     To             From
Yamal-Nenets Autonomous Okrug
Issuer Credit Rating
  Foreign and Local Currency         BB+/Pos./--    BB+/Stable/--
  Russia National Scale              ruAA+/--/--    ruAA+/--/--


* S&P Revises Outlooks on 13 Russian Companies to Positive
----------------------------------------------------------
S&P Global Ratings said that it has revised its outlooks on 13
Russian companies to positive from stable after a similar action
on the Russian Federation.

                 COMMODITY PRODUCERS (EXPORTERS)

   -- S&P revised its outlook on Gazprom PJSC to positive from
      stable and affirmed the 'BB+/B' foreign currency (FC) long-
      and short-term corporate credit ratings and the 'BBB-/A-3'
      local currency (LC) long- and short-term corporate credit
      ratings.

   -- S&P revised its outlook on Gazprom Neft PJSC to positive
      from stable and affirmed the 'BB+' long-term corporate
      credit ratings.

   -- S&P revised its outlook on LUKOIL PJSC to positive from
      stable and affirmed the 'BBB-' long-term corporate credit
      ratings.

   -- S&P revised its outlook on Oil Company Rosneft OJSC to
      positive from stable, and affirmed the 'BB+' long-term
      corporate credit ratings.

                         TELECOM OPERATORS

   -- S&P revised its outlook on Mobile TeleSystems PJSC to
      positive from stable and affirmed the long-term corporate
      credit ratings 'BB+' ratings.

   -- S&P revised its outlook on the 'BB+' FC long-term corporate
      credit rating on MegaFon PJSC to positive from stable, and
      affirmed the 'BB+' FC and 'BBB-' LC long-term corporate
      credit ratings.  The outlook on the 'BBB-' LC long-term
      corporate credit rating remains stable.

               INFRASTRUCTURE AND UTILITY COMPANIES

   -- S&P revised its outlook on Public Joint Stock Company
      Transneft to positive from stable and affirmed the 'BB+' FC
      and the 'BBB-' LC long-term corporate credit ratings.

   -- S&P revised its outlook on Federal Grid Co. of the Unified
      Energy System to positive from stable and affirmed the
      'BB+' long-term corporate credit ratings.

   -- S&P revised its outlook on Moscow United Electric Grid Co.
      PJSC to positive from stable and affirmed the 'BB-' long-
      term corporate credit ratings.

   -- S&P revised its outlook on Interregional Distribution Grid
      Company of Centre, Public Joint-Stock Company to positive
      from stable and affirmed the 'BB-' long-term corporate
      credit ratings.

   -- S&P revised its outlook on the 'BB+' FC long-term corporate
      credit rating on Russian Railways JSC to positive from
      stable, and affirmed the 'BBB-' LC and 'BB+' FC long-term
      corporate credit ratings.  The outlook on the LC rating
      remains stable.

   -- S&P revised the outlook on Public Joint Stock Company
      Rosseti to positive from stable and affirmed the 'BB+'
      long-term corporate credit ratings.

   -- S&P revised its outlook on Atomic Energy Power Corp.  JSC
      positive from stable and affirmed the 'BB+' long-term
      corporate credit ratings.

The outlook revisions on the 13 entities in the rating actions
mirror the outlook revision on Russia.  For the government-
related entities, the revised outlooks reflect our view that a
potentially stronger Russian government could have more capacity
to support these entities.  For the private companies, stronger
sovereign creditworthiness could lessen constraints to achieve a
higher rating.

The ratings on the following six Russia-based companies continue
to exceed the FC sovereign credit rating and Transfer and
Convertibility (T&C) assessment on Russia: LUKOIL mentioned
above, as well as Norilsk Nickel, Severstal, NLMK, Novatek, and
PhosAgro, which are not part of today's rating actions.  Among
these entities, only LUKOIL now carries a positive outlook.  This
is because S&P assess its stand-alone credit profile (SACP) at
'bbb', and it could consequently upgrade it if we upgraded
Russia.

                   COMMODITY PRODUCERS (EXPORTERS)

Gazprom

The outlook revision on Gazprom takes into account Russia's
position as controlling shareholder of the company.  The positive
outlook reflects S&P's expectation that it would raise its
ratings on Gazprom if S&P raised its sovereign ratings on Russia.

S&P continues to assess Gazprom's SACP at 'bbb-'.  In S&P's base
case, it generally expects that Gazprom's funds from operations
(FFO) to debt will exceed 45% on average in 2016-2018.  S&P
assumes that the company will adapt its strategy to the changed
industry conditions, namely the substantially lower gas prices.
S&P also assumes that it can achieve neutral free cash flow
generation under its current gas price assumptions, despite its
strategic investments into the Power of Siberia and Nord Stream-2
projects.

S&P could revise the outlook on Gazprom to stable if S&P took a
similar action on the sovereign.  Because S&P views Gazprom as a
government-related entity (GRE) with a very strong link to and
critical role for the government, S&P do not expect to rate
Gazprom above the sovereign, which would constrain any rating
upside in the absence of a sovereign upgrade.  Still, S&P's
expectation of extraordinary state support makes the rating less
sensitive to potential weakening of S&P's SACP assessment.  If
Gazprom's SACP were to deteriorate one notch to 'bb+', S&P would
maintain the positive outlook on the 'BB+' foreign currency
rating and revise the outlook on S&P's LC long-term rating on the
company to stable.  This could happen if the company made large
debt-financed investments that S&P currently don't include in its
base case.

Gazprom Neft

The outlook revision to positive follows both the outlook
revisions on Russia and parent Gazprom, the company's controlling
shareholder.  The positive outlook reflects S&P's expectation
that it would raise its ratings on the company if S&P raised its
sovereign ratings on Russia and our FC rating on Gazprom.

S&P continues to assess Gazprom Neft's SACP at 'bbb-'.  In S&P's
base case, it generally expects that Gazprom Neft's FFO to debt
will exceed 45% on average in 2017-2018.

S&P could revise the outlook on Gazprom Neft to stable if S&P
took similar actions on Gazprom and on Russia.  S&P do not expect
to rate Gazprom Neft above its parent or the sovereign.  In S&P's
view, key industry and country sovereign factors with which the
parent operates ultimately fuel the company's financial
performance.

                                LUKOIL

The outlook on LUKOIL mirrors that on Russia, where LUKOIL
generates about 85% of its EBITDA.  S&P rates the company one
notch above the foreign currency rating and T&C assessment on
Russia, as S&P thinks the company could withstand a sovereign
default.  Therefore, S&P could raise its rating on LUKOIL by one
notch if it raised its T&C assessment and our FC sovereign rating
on Russia.

On a stand-alone basis, S&P assess LUKOIL at 'bbb' and see
limited downside, absent an unexpected debt increase.  S&P might
consider a negative rating action if LUKOIL's local currency
liquidity resources declined while its hard currency short-term
maturities increased, or if S&P saw a pronounced deterioration in
business conditions for Russian companies beyond S&P's base-case
scenario. This might happen, for example, if the government were
to significantly amend the taxation system, which S&P currently
do not anticipate.

A negative rating action on LUKOIL could also stem from a marked
decline in production, large debt-financed investments or
shareholder distributions, a prolonged period of limited access
to financing, or the ratio of FFO to adjusted debt falling to
sustainably less than 60%.  That said, S&P sees these scenarios
as relatively unlikely in the next 12 months.

A revision of the outlook on Russia to stable could result in a
similar action on LUKOIL.

Rosneft

The positive outlook on Rosneft mirrors that on Russia, Rosneft's
controlling shareholder.  It reflects the likelihood that S&P
would raise its rating on Rosneft if S&P took a similar action on
Russia.  It also assumes that Rosneft's SACP will not weaken to
'b+' from 'bb' currently, which S&P thinks would only occur in
the event of liquidity pressures or a material increase in
leverage--a scenario S&P sees as unlikely over the next 12
months.

In S&P's base-case scenario it assumes that Rosneft's FFO to
debt, as adjusted by S&P Global Ratings, will remain at 20%-25%
in 2017. S&P believes that Rosneft's credit metrics have limited
potential to improve in the next 12 months, absent more asset
disposals than S&P currently assumes, as the company undertakes a
number of investment projects that will constrain free cash flow
generation.

S&P could revise its outlook on Rosneft to stable if S&P revised
its outlook on Russia to stable.

                         TELECOM OPERATORS

MTS

The positive outlook on MTS mirrors the outlook on Russia and
reflects S&P's view that it might upgrade MTS if S&P upgraded the
sovereign.  That said, the rating on MTS can be no more than two
notches higher than the ratings on its parent company, Sistema
PJSC (BB/Stable/--).  To consider an upgrade of MTS, S&P would
look for an adjusted debt-to-EBITDA ratio remaining consistently
below 2x and discretionary cash flow generation at close to
breakeven.

S&P could revise the outlook on MTS to stable if S&P took a
similar action on Russia or if S&P revised down its SACP on the
company.  Such a downward revision could result from MTS'
adjusted debt-to-EBITDA ratio exceeding 2x and its discretionary
cash flow turning strongly negative.  This could occur if MTS'
operating performance materially weakened due to significantly
adverse changes in its competitive or regulatory environment.

MegaFon

The positive outlook on S&P's 'BB+' FC long-term rating on
MegaFon reflects S&P's view that it might raise the rating if it
raised its ratings on the sovereign.  At the same time, the
outlook on the 'BBB-' LC long-term rating on MegaFon remains
stable, constrained by both the sovereign rating and the
company's stand-alone characteristics.  In S&P's base-case for
MegaFon S&P assumes the company will maintain moderate debt
leverage lower than 2.0x, despite a temporary increase to just
below 2.25x in 2017-2018.

S&P could revise the outlook on the FC rating to stable if it
took a similar action on the sovereign or if S&P saw weakening in
MegaFon's SACP.  S&P could lower the LC rating if MegaFon's
adjusted debt to EBITDA exceeded 2.25x on a protracted basis, as
a result of financial policy decisions, or S&P observed
pronounced weakening in the operating performance, amid the
sluggish market environment in Russia.

               INFRASTRUCTURE AND UTILITY COMPANIES

Transneft

The positive outlook on Transneft reflects S&P's expectation that
it would raise both the FC and LC ratings on the company if S&P
raise its ratings on Russia.  S&P continues to assess Transneft's
SACP at 'bbb', and in S&P's base-case scenario, it projects FFO
to debt at more than 60% on average for the next three years.

S&P do not expect to rate Transneft above the sovereign because
of the very strong links between the company and the government,
which could leave room for potential negative government
intervention.  Also, S&P views Transneft as a domestically-
focused company exposed to country risks in Russia.

S&P would revise the outlook on Transneft to stable if S&P
revised the outlook on Russia to stable.  S&P's expectation of an
extremely high likelihood of state support creates a cushion for
our rating on the company, meaning that S&P would consider a
revision of the outlook on the LC rating only if the SACP
deteriorated to 'bb+'.  This is not S&P's base-case scenario,
however.

Federal Grid

The positive outlook on Federal Grid reflects that on the
sovereign.  S&P would likely raise its FC and LC ratings on
Federal Grid if S&P raised its ratings on the sovereign.  S&P
continues to assess the company's SACP as 'bb+' and the
likelihood of extraordinary state support as very high.  S&P do
not expect to rate Federal Grid above the long-term FC sovereign
rating on Russia, given the full exposure of the company's
operations to country risk in Russia, its very strong links with
the government, and the risks of negative sovereign intervention.

S&P would revise the outlook on the LC rating to stable if S&P
changes the sovereign outlook to stable.  S&P's expectation of a
very high likelihood of sovereign support creates some cushion
against any weakening in the company's stand-alone performance,
which we currently do not expect.

                               MOESK

The positive outlook on MOESK reflects S&P's expectation that if
it raised its ratings on Russia, S&P would likely raise its
rating on the company by one notch to reflect the moderate
likelihood of state support.  Rating upside could also stem from
a stronger SACP, with FFO to debt above 45% on a consistent basis
(and above 30% excluding connection fees from EBITDA), which is
not S&P's base-case scenario.

S&P's base case scenario for MOESK includes adjusted FFO to debt
in the 30%-45% range (20%-30% excluding connection fees from
EBITDA) despite continued negative discretionary cash flow
generation, and prudent liquidity management.  This would
correspond to debt to EBITDA in the 2x-3x range (3x-4x excluding
connection fees from EBITDA). Our outlook, in particular, factors
in continued tariff increases in line with inflation and no
substantial decline in collection of receivables.

S&P would revise its outlook on MOESK to stable if S&P took a
similar action on the sovereign.

IDGC of Center

The positive outlook reflects S&P's expectation that in case of a
sovereign upgrade, it would incorporate a notch for extraordinary
government support in S&P's rating on IDGC of Center.  This would
accompany IDGC of Center's SACP remaining unchanged at 'bb-',
with FFO to debt of above 20% and adequate liquidity.

S&P also sees upside if the company's SACP strengthens, with FFO
to debt consistently above 30% and adequate liquidity, which,
however, is not S&P's base-case scenario.

A revision of the outlook on Russia to stable would trigger a
similar outlook revision on IGDC of Center.  In addition, rating
downside could stem from weakening liquidity or financial
metrics.

                                RZD

The positive outlook on S&P's FC rating on RZD reflects that on
the sovereign.  If S&P upgraded Russia, it would raise its FC
rating on RZD.

The stable outlook on the LC rating reflects S&P's unchanged
expectation of extremely high likelihood of government support
and a 'bb+' SACP, with FFO to debt of 20%-30%, debt to EBITDA of
about 3x, negative free operating cash flow (FOCF) and somewhat
increasing equity funding for capital expenditures (capex) from
the state.  S&P would also expect the company to demonstrate some
flexibility in capex projects in case of delays in state
financing.

Upside on the LC rating could stem from a combination of a
sovereign upgrade and the SACP strengthening to 'bbb-', which
could happen if higher profitability or significantly lower capex
covered by the company's own funds (that is, net of equity
contributions from the government) resulted in FFO to debt
sustainably above 30%.

Given the company's very strong links with the sovereign, its
primarily domestic focus, and its SACP that does not exceed the
sovereign rating, S&P do not expect to rate it above the
sovereign.  S&P would likely revise the outlook on the FC rating
to stable if it took a similar action on the sovereign.

If the SACP weakens by one notch to 'bb', S&P would likely lower
its LC rating to 'BB+' and affirm S&P's FC rating at 'BB+'.  This
could happen if FFO to debt declines below 20% due to weaker-
than-anticipated profitability, significant traffic declines, or
in case of higher capex or acquisitions that are not covered by
equity injections from the government, or excessive debt
accumulation above our expectations (for instance, in case of
material weakening in the Russian ruble).  Also, downside
pressure on the rating could stem from a sovereign downgrade or a
material change in the government's policy with regards to
ongoing and extraordinary support to RZD, which is not S&P's base
case expectation either.

Rosseti

The positive outlook takes into account that S&P would likely
raise its LC and FC ratings on Rosseti if S&P raised its ratings
on the sovereign, assuming the company's SACP profile and the
likelihood of government support remained unchanged.  If
Rosseti's SACP were to increase by one notch, this would not
affect the overall rating.

On a stand-alone basis, S&P expects Rosseti to generate FFO to
debt of above 20% and debt to EBITDA of less than 4x, with a
manageable debt maturity profile.  In S&P's base-case scenario,
it do not include any material change to the group structure and,
therefore, its market position.  S&P continues to see a very high
likelihood that the Russian government would provide
extraordinary support to Rosseti, given the company's position as
the monopoly electricity transmission and dominant distribution
provider in Russia, strong track record of ongoing government
support to the company (via capital injections and infrastructure
bonds), and the government's position as a stable majority
shareholder with a strong influence over the company's strategy.

S&P would likely revise the outlook to stable if it changed its
outlook on the sovereign to stable.

                               AEPC

The positive outlook reflects that S&P would likely raise its FC
and LC ratings on AEPC if S&P raised its ratings on Russia.  S&P
continues to assess AEPC's SACP at 'bb+', with an expected EBITDA
increase in 2017-2018 after a temporary decline in 2016.  S&P
views the likelihood of extraordinary state support as very high.
Even if AEPC's SACP were to strengthen, S&P do not expect to rate
AEPC above S&P's FC rating on the sovereign, given the company's
very strong links with the government.

S&P would revise its outlook on the LC rating to stable if it
changed the outlook on Russia to stable.  S&P's expectation of a
very high likelihood of sovereign support creates some cushion
against weakening in the company's stand-alone performance, which
S&P currently do not expect.

RATINGS LIST

Ratings Affirmed; CreditWatch/Outlook Action
                                      To            From
Atomic Energy Power Corp. JSC
Corporate Credit Rating              BB+/Pos./B    BB+/Stable/B

Ratings Affirmed

Atomic Energy Power Corp. JSC
Corporate Credit Rating
Russia National Scale                ruAA+/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                      To                 From
Federal Grid Co. of the Unified Energy System
Corporate Credit Rating              BB+/Pos./--   BB+/Stable/--

Ratings Affirmed

Federal Grid Co. of the Unified Energy System
Corporate Credit Rating
Russia National Scale                ruAA+/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                      To                 From
Gazprom Neft PJSC
Corporate Credit Rating              BB+/Pos./--    BB+/Stable/-
-

Gazprom PJSC
Corporate Credit Rating
  Foreign Currency                    BB+/Pos./B     BB+/Stable/B
  Local Currency                  BBB-/Pos./A-3   BBB-/Stable/A-3

Gazprom Capital OOO
Corporate Credit Rating
  Foreign Currency                  BB+/Pos./--    BB+/Stable/--
  Local Currency                    BBB-/Pos./--   BBB-/Stable/--

Ratings Affirmed

Gazprom Neft PJSC
Corporate Credit Rating
Russia National Scale                  ruAA+/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Interregional Distribution Grid Company of Centre, Public Joint-
Stock Company
Corporate Credit Rating             BB-/Pos./B     BB-/Stable/B

Ratings Affirmed

Interregional Distribution Grid Company of Centre, Public Joint-
Stock Company

Corporate Credit Rating
Russia National Scale                  ruAA-/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
LUKOIL PJSC
Corporate Credit Rating             BBB-/Pos./--   BBB-/Stable/-
-

Ratings Affirmed

LUKOIL PJSC
Corporate Credit Rating
Russia National Scale               ruAAA/--/--

Ratings Affirmed; CreditWatch/Outlook Action

                                        To                 From
MegaFon PJSC
MegaFon Finance LLC
Corporate Credit Rating
  Foreign Currency                    BB+/Pos./--    BB+/Stable/-
-

Ratings Affirmed

MegaFon PJSC
MegaFon Finance LLC
Corporate Credit Rating
  Local Currency                        BBB-/Stable/--
Russia National Scale                  ruAAA/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Moscow United Electric Grid Co. PJSC
Corporate Credit Rating             BB-/Pos./--    BB-/Stable/--

Ratings Affirmed

Moscow United Electric Grid Co. PJSC
Corporate Credit Rating
Russia National Scale                  ruAA-/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Oil Company Rosneft OJSC
Corporate Credit Rating             BB+/Pos./--    BB+/Stable/--

Rosneft International Holdings Limited
Corporate Credit Rating             BB+/Pos./B     BB+/Stable/B

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Public Joint Stock Company Rosseti
Corporate Credit Rating             BB+/Pos./B     BB+/Stable/B

Ratings Affirmed

Public Joint Stock Company Rosseti
Corporate Credit Rating
Russia National Scale                  ruAA+/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Public Joint Stock Company Transneft
Corporate Credit Rating
  Foreign Currency                   BB+/Pos./--    BB+/Stable/--
  Local Currency                     BBB-/Pos./--   BBB-/Stable/-
-

Ratings Affirmed; CreditWatch/Outlook Action
                                     To                 From
Russian Railways JSC
Corporate Credit Rating
  Foreign Currency                   BB+/Pos./--    BB+/Stable/--

Ratings Affirmed

Russian Railways JSC
Corporate Credit Rating
  Local Currency                      BBB-/Stable/--
Russia National Scale                  ruAAA/--/--

Ratings Affirmed; CreditWatch/Outlook Action
                                        To                 From
Mobile TeleSystems PJSC
Corporate Credit Rating              BB+/Pos./--   BB+/Stable/--

NB: This list does not include all the ratings affected.


===========
S E R B I A
===========


BANINI: Jaffa Acquires Business for EUR15 Million
-------------------------------------------------
SeeNews, citing regional public broadcaster Radio Televizija
Vojvodine (RTV), reports that Serbian biscuit producer Jaffa has
acquired insolvent confectionery maker Banini for EUR15 million
(US$16.2 million).

According to SeeNews, the broadcaster quoted the managing
director of Jaffa, Bojan Knezevic, as saying "Banini is insolvent
and has been facing very serious problems.  It owes EUR40 million
to banks and EUR10 million to suppliers."

In February, the Zrenjanin Commercial Court said it ordered the
sale of the factory of Banini to repay debt to creditors, SeeNews
recounts.

Banini's financial woes began in 2010 when it launched the
construction of the factory through a bank loan, SeeNews relays.
Three years later, the company's creditors offered a debt
restructuring plan, SeeNews discloses.

On April 26, 2016, the Zrenjanin Commercial Court declared Banini
bankrupt acting on a request by French lender Societe Generale,
to which the confectionery group owes EUR15 million, SeeNews
relates.


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


ABENGOA SA: Moody's Withdraws Ca Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has withdrawn all the ratings of
Abengoa S.A., including the company's Ca Corporate Family Rating
(CFR), Ca-PD Probability of Default Rating ("PDR"), and the
senior unsecured Ca ratings at Abengoa Finance, S.A.U., and
Abengoa Greenfield, S.A. At the time of withdrawal, the ratings
carried negative outlooks.

RATINGS RATIONALE

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

Headquartered in Seville, Spain, Abengoa S.A. is a vertically
integrated environment and energy group whose activities range
from engineering & construction (E&C), utility-type operation
(via concessions) of thermal-solar energy plants, electricity
transmission networks and water treatment plants to industrial
production of biofuels. Abengoa generated EUR1.5 billion of
revenues in 2016. Abengoa's shares are listed in Spain.


AYT COLATERALES: Fitch Affirms CCCsf Rating on Class D Notes
------------------------------------------------------------
Fitch Ratings has downgraded the senior tranche of AyT
Colaterales Global Hipotecario, FTA Serie Caja Vital I (Vital I)
and affirmed the others, as follows:

Class A notes (ISIN ES0312273081): downgraded to 'A+sf' from
'AAsf'; Outlook Stable
Class B notes (ISIN ES0312273099): affirmed at 'BBBsf'; Outlook
Stable
Class C notes (ISIN ES0312273107): affirmed at 'Bsf'; Outlook
Stable
Class D notes (ISIN ES0312273115): affirmed at 'CCCsf'; Recovery
Estimate 85%

The RMBS transaction comprises residential mortgages originated
and serviced in Spain by Kutxabank, S.A. (BBB/Positive/F3).

KEY RATING DRIVERS

Payment Interruption Risk
Vital I is exposed to payment interruption risk in the event of a
servicer disruption, which could affect collections from the
underlying mortgages. The available structural mitigants -- a
dynamic commingling reserve plus a generic cash reserve fund
(reduced by the expected loss) - are insufficient to cover
stressed senior fees, net swap payments and note interest under a
2.5% Euribor environment. The commingling reserve stands at just
EUR20,000 considering it operates with no floor amount and any
potential top-ups associated with higher interest rate scenarios
depend on Kutxabank's financial ability to implement them. As a
result, Fitch has downgraded and capped the notes at 'A+sf' in
accordance with its Counterparty Criteria for Structure Finance
and Covered Bonds.

Stable Asset Performance
Vital I has shown sound asset performance compared with the
Spanish average. As of November 2016, three-months plus arrears
(excluding defaults) as a percentage of the current pool balance
were 0.7% compared with 0.8% of Fitch's Spanish Prime RMBS index.
Cumulative defaults, defined as mortgages in arrears by more than
18 months, at 2.0% also remain below the 5.6% observed on Fitch's
index. To reflect this better performance expectation, Fitch has
adjusted the performance adjustment factor (PAF) when estimating
the lifetime default rate on the remaining portfolio.

Credit Enhancement (CE) Trend
Existing and projected CE is sufficient to mitigate credit and
cash flow stresses commensurate with the ratings, especially as
CE continues building up as the transaction is expected to
maintain sequential amortisation. Structural CE is 22.9%, 12.4%,
5.6% and 2.4% for the class A, B, C and D notes, respectively, as
of the last interest payment date.

VARIATIONS FROM CRITERIA
PAF

Fitch applies a PAF to the base foreclosure frequency when
conducting its asset analysis, based on the comparison between
observed gross cumulative defaults and outstanding arrears
against expected defaults at that point in the transaction's
life. The maximum PAF reduction as per the agency's criteria is
30%, but Fitch has removed this floor for the transaction,
allowing for a PAF reduction of 39%. The removal of the PAF floor
constitutes a variation from Fitch's EMEA RMBS Rating Criteria,
and it is substantiated by the relatively better performance of
Vital I versus comparable Spanish RMBS transactions.

RATING SENSITIVITIES

As long as payment interruption risk is not fully mitigated, the
maximum achievable rating of the notes will remain capped at
'A+sf'. If payment interruption risk is sufficiently mitigated,
the class A notes could be upgraded to 'AAsf' rating category,
all else being equal.

A worsening of the Spanish macroeconomic environment, especially
employment conditions, or an abrupt shift in interest rates could
jeopardise the ability of the underlying borrowers to meet their
payment obligations. Material increase in default rates, as a
result of these macroeconomic factors, could trigger negative
rating action.


===========
S W E D E N
===========


LANDSHYPOTEK BANK: S&P Assigns 'BB+' Rating to Proposed AT1 Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to
the proposed perpetual Additional Tier 1 (AT1) capital notes to
be issued by Sweden-based Landshypotek Bank AB (A-/Negative/A-2).
The rating is subject to S&P's review of the notes' final
documentation.

This is Landshypotek's first AT1 issuance since the introduction
of the EU's latest capital requirements directive (CRD IV)
requirements.  S&P notes that the issue will include a fixed-to-
floating rate tranche (series A) and a floating-to-floating rate
tranche (series B), and it will be denominated in Swedish krona.

S&P determines the rating on the notes by notching down from its
assessment of Landshypotek's stand-alone credit profile (SACP),
which is 'a-'.  Therefore, the 'BB+' issue rating reflects S&P's
analysis of the proposed notes as well as its view of
Landshypotek stand-alone credit characteristics.

The 'BB+' issue rating is four notches lower than the SACP,
reflecting S&P's deduction of:

   -- One notch for subordination;
   -- Two notches for the notes' status as Tier 1 regulatory
      capital; and
   -- One notch because the instruments allow for the full or
      partial temporary write-down of the principal amount.

S&P do not apply additional notching because it assumes that the
specified regulatory capital ratio for Landshypotek will remain
at least 700 basis points (bps) higher than the 7% mandatory
conversion trigger at the group level and the 5.125% conversion
at the parent bank level.  As of end-December 2016, the group's
common equity tier 1 (CET1) ratio was 29.4%.  While a pending
reclassification of regulatory exposures could lead to a decline
in the bank's capital ratios, S&P estimates that Landshypotek's
reported CET1 ratio level is likely to remain above 17% over the
next 18-24 months, thereby providing a substantial buffer over
the trigger level.

In addition to the write-down trigger, there is a risk of coupon
nonpayment if Landhypotek's capital levels were to fall within
the regulatory capital conservation buffer.  S&P understands that
a breach of the combined buffer requirement could trigger
nonpayment of coupons, as detailed in Article 141 of CRD IV.
Excluding the Basel transitional floors, S&P estimates that a
mandatory nonpayment of coupons would occur at the point when the
CET1 ratio falls within the capital conservation buffer, that is,
to about 8.5% for the group, including the minimum requirement
(4.5%), the countercyclical capital buffer (1.5%), and the
capital conservation buffer (2.5%).  However, S&P notes that the
Financial Services Authority has the ability to set a minimum
requirement that includes Pillar II buffers and as such could
force a halt to coupon payments on the AT1 notes before the CET1
ratio falls to 8.5%.

S&P will assess the notes as having intermediate equity content
when the regulator formally approves them for inclusion in
Landshypotek's regulatory Tier 1 capital.  The proposed
instruments meet S&P's conditions for intermediate because they:

   -- Are perpetual, with a call date expected to be five or more
      years from issuance;
   -- Do not contain a coupon step-up; and
   -- Have loss-absorption features on a going-concern basis,
      since the bank has the flexibility to suspend the coupon at
      any time.


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


AI MISTRAL: Moody's Assigns B2 CFR, Outlook Negative
----------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating (CFR) and a B2-PD probability of default (PDR) to AI
Mistral Holdco Ltd, parent and holding company of V.Group.
Moody's has also assigned definitive B1 ratings to the USD515
million first lien senior secured term loan due 2024, the USD30
million acquisition facility due 2022, and the USD57.5 million
revolving credit facility due 2022. These facilities have all
been borrowed by AI Mistral (Luxembourg) Subco S.ar.l., a
subsidiary of AI Mistral Holdco Ltd. The outlook on all ratings
is negative.

Concurrently, Moody's has withdrawn the B1 CFR and B1-PD PDR on
Vouvray Midco Limited (both under review for downgrade), former
parent of V.Group, concluding the review of the ratings. Moody's
has also withdrawn the instrument ratings of the facilities
issued by Vouvray Acquisition Limited and Vouvray US Finance LLC.

The action was prompted by the completion of the acquisition of a
majority stake in V.Group by Advent International ("Advent") on
9th March 2017 via AI Mistral Holdco Ltd, a recently incorporated
company.

The final capital structure also includes a USD172.5 million
second lien senior secured term loan due 2025 (unrated).

RATINGS RATIONALE

To reflect the new corporate and financing structure, Moody's has
moved V.Group's CFR to AI Mistral Holdco Ltd from Vouvray Midco
Limited and downgraded the CFR to B2 from B1. The downgrade was
driven by the material increase in Moody's adjusted leverage to
6.9x from 4.6x as at LTM September 2016 and by the lack of
organic growth in both revenue and managed fleet during the last
two years.

At the closing of the transaction, Advent holds 74.4% of AI
Mistral share capital while both OMERS and the management retain
a minority stake in the Group of 19.9% and 5.7% respectively.

The ratings reflect V.Group's (1) very high opening financial
leverage; (2) lack of organic growth in both revenue and managed
fleet in the last two years; (3) relatively small scale; and (4)
dependence on key operational personnel, specifically fleet
superintendents and skilled crew. This is partially offset by the
company's (1) leading market position in the marine operations
segment; (2) diversified customer portfolio with long-term
relationships and low churn rates; (3) positive cash flow
generation; and (4) track record of deleveraging.

V.Group's liquidity, pro-forma for the transaction, is expected
to remain good, with sufficient internal resources to service
debt. The business model requires low levels of maintenance capex
and working capital outflows, as the business grows, and it is
further mitigated by up-front deposits paid by clients on
contract signing. Free cash flow - calculated after capex, taxes
and interests payments - is expected to be above USD30 million in
the next 12-18 months. The company is unlikely to retain
significant cash on balance sheet, applying residual cash flow
toward acquisitions or further debt repayment.

At closing of the transaction, the company has cash balance of
approximately USD22 million, which the management considers
sufficient to run the business, access to an undrawn USD57.5
million revolving credit facility and a USD30 million acquisition
facility. The RCF has a springing first lien net leverage
covenant of 7.5x when drawn more than 35%.

The first lien term loans amortizes at 1% per annum. In addition
the debt documentation includes a cash sweep mechanisms for
excess cash above USD10 million. The next debt maturity will be
the revolving credit facility and the acquisition facility in
2022.

RATING OUTLOOK

The negative outlook reflects the weak positioning of the company
within the B2 category and the lack of organic growth in revenue
and vessels under management over the last two years. A
stabilisation of the outlook will require the company to return
to positive organic growth and de-leverage from the high Moody's
adjusted opening leverage level of 6.9x.

WHAT COULD CHANGE THE RATING UP

Given the company's weak positioning within the B2 category, an
upgrade is unlikely in the short term. However, upward pressure
on the rating could materialize if the company continues to
develop its fleet under management and services offer and (1)
adjusted debt/EBITDA moves sustainably below 5.0x; (2)
EBITA/interest ratio moves towards 3.0x; and (3) RCF/Net Debt
above 10%.

WHAT COULD CHANGE THE RATING DOWN

Conversely, immediate downward pressure on the rating would
develop if benefits from costs reduction initiatives and expected
synergies do not flow through as anticipated or if organic
revenue growth fails to materialize such that (1) adjusted
debt/EBITDA doesn't fall towards 6.0x in the next 12-18 months;
(2) its EBITA/interest ratio falls below 2.0x; and/or (3) its
liquidity profile weakens materially.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

CORPORATE PROFILE

Headquartered in the United Kingdom, V.Group is a leading global
maritime service provider, specialising in the outsourced
technical management of high value maritime assets and the
provision of a wide-range of supporting technical, workforce and
commercial services. V.Group operates in the commercial shipping,
cruise, energy and defence sectors. Pro-forma for the Bibby Ship
Management and Selandia acquisitions, the company had 989 vessels
under management, of which 662 in technical management, and a
crew pool of 48,000 seafarers at the end of 2016. V.Group has a
network of 70 offices across 31 countries.

Pro-forma for the acquisition of Bibby and Selandia, V.Group had
pro-forma revenue of USD561 million and management pro-forma
adjusted EBITDA of USD105.9 million for the FY2016.


BRANTANO: Files Notice of Intention to Appoint Administrators
-------------------------------------------------------------
Elias Jahshan at Retail Gazette reports footwear retailer
Brantano has filed notice of intention to appoint administrators,
a day after its parent company did the same for sister brand
Jones Bootmaker.

The administration notice gives the high street chain protection
from creditors seeking to recover debts, and allowing it some
additional time to secure a rescue deal with potential buyers,
according to Retail Gazette.

The report recalls Brantano first went into administration in
January 2016 before being bought back private equity firm Alteri
Investors.

Alteri is now reportedly putting Brantano through the same
process as Jones but the two chains are being dealt with
separately, the report relays.

Both Jones and Brantano could be offloaded as a going concern or
through a pre-pack administration whereby it enters insolvency
proceedings but assets are acquired by a new owner, the report
relays.

The report discloses that the fate of employees at Brantano and
Jones -- the latter has around 800 staff members -- is not yet
known.

According to Sky News, Jones is currently in discussions with two
potential buyers, fashion retailer Kurt Geiger and turnaround
firm Endless, about a deal that could save jobs, the report
relays.

The report notes that rival footwear chain Pavers has also
reportedly expressed interest in Jones.

Meanwhile, there is speculation that Edinburgh Woollen Mill Group
is interested in acquiring Brantano, alongside a few other
private equity firms, the report relays.

Last month, Alteri appointed KPMG advisors to explore options for
Jones, which include a sale or putting it into administration,
the report discloses.

Alteri acquired Jones Bootmaker and Brantano in October 2015, in
what was a GBP12.2 million deal from now-bankrupt Dutch firm
Macintosh.


COVENTRY CITY FOOTBALL: More Than GBP100MM Needed to Save Club
--------------------------------------------------------------
Simon Gilbert at Coventry Telegraph reports that Coventry City
Football Club owners Sisu would need to be paid more than GBP100
million to walk away from the club without suffering a loss.

That's the view of an expert accountant who has reviewed the
latest accounts of Coventry City business Otium Entertainment and
parent company Sky Blue Sport and Leisure, according to Coventry
Telegraph.

The report notes that Paul Carvell, managing partner at Stuart
Fletcher and Barrett, says the London hedge fund has about GBP101
million sewn up in the club and that Coventry City would not be
able to survive without the current owners continuing to plough
money into it.

Mr. Carvell, last year's president of the Coventry and
Warwickshire Chamber of Commerce, also said Sisu "almost don't
deserve the abuse they are getting" and that no-one was "milking"
the club, which was instead "just taking" Sisu's money, the
report relates.

The report says the latest Otium accounts show Coventry City made
a profit of GBP700,000 after player sales during the year up to
May 2016.

The report discloses but they also show the club would have made
a GBP1.75million loss before player sales were taken into
account.

According to the accounts, the group has net current liabilities
of GBP44 million, up from GBP41.94 million the previous year,
with GBP28.5 million owed to Sisu and almost GBP12.5 million to
Sisu's Cayman Island-based investment vehicle ARVO, the report
relays.

The report notes it is also made clear that the company is only
able to continue trading with the support of the owners who have
issued guarantees that they don't intend to withdraw financial
support or call in loans in the "foreseeable future".

Coventry City and Sisu have been approached for comment.

The report discloses that here is what Mr. Carvell had to say
about the accounts:

How much would Sisu need to get for the club to walk away without
suffering any losses?

"You would be looking at GBP101 million.

"GBP36 million of that is existing loans (from Sisu related
companies), the rest is shareholding."

The shares were created when the owners agreed to convert
GBP60,898,116 of the club's loan debt to Sisu into shares after
the club went into administration in 2013, notes the report.
Replacing the debt with shares meant the loans no longer existed
and the only way the owners would see a return on that investment
is by selling those shares.

The conversion was a condition imposed by the Football League in
exchange for the golden share (the club's right to play in the
league) being returned to Sisu when the club came out of
administration, says the report.

Can the company ever generate the money needed to repay Sisu
alone?

"No. At least Wasps own the stadium, what have they got here?"

Has Sisu put any more money into the club?

"Overall borrowing has gone up by GBP1.9 million. That's how much
more Sisu have put in. Sisu are funding it.

"They are not taking money out of the club. They are not milking
this at all.

"But there is interest on these loans, don't get me wrong."

Directors' pay

"There were four during that year. Their emoluments are
GBP115,500. If you divide that by four, it's not a lot.

"It was GBP144,000 the year before."

"I would not look at that and say they are milking it."

How is the club being run?

"I look at this and think they almost don't deserve the abuse
they are getting.

"It's just taking their money. They are throwing good after bad.

"Without Sisu the club cannot be self sustainable."

What's your overall view of the accounts?

"The accounts are straight, clean, with nothing hidden.

"It's interesting that the report was signed off on February 27,
2017. I just wonder about the forecasts they are using. But I
think the bit where it says they need additional funding tells
you all you need to know.

"The accounts are better than the year before. It's a football
club, it loses money. That's what they do."

How has the club performed as a business?

"Operating loss of GBP1.7 million is a much improved position
from year before of GBP3.8 million. They are moving in the right
direction.

"The business actually made a profit of GBP725,000 taking into
account player sales. That was compared to a loss of GBP1m
before."

How have they managed to improve the figures?

"Turnover has gone up to GBP5.5 million - a GBP680.000 increase.
Direct costs have gone down by GBP395,000. It's GBP1.5 million
this year, GBP1.1 million this year.

"Gross profit, and they should be shouting about this, has gone
up by GBP1 million to GBP4.3 million.

"Staff costs have also gone down to GBP4.3 million from GBP5
million and administrative expenses have gone down from GBP1.8 to
GBP2 million the year before.

"They've actually clawed back GBP2m of losses.

"In the background there's actually a lot of good management
going on considering all the stresses and strains.

"A loss is a loss, but it's not as big as it has been."

What's hurting the balance sheet?

"Here's the killer, their interest and similar charges was
GBP2.5m compared to GBP1.3 million the year before.

"Their interest charges have gone up by GBP1.1m.

"Interest payable had increased from GBP1.37 million to GBP2.47
million year-on-year due to an additional withholding tax due to
HMRC on the interest owed to ARVO (another Sisu company). Money
owed to ARVO sits at GBP12.4 million.

"If you have a related party that you've made loans to, HMRC can
take tax which then has to be repaid when that debt is repaid.

"It doesn't get paid until the debt is repaid."

How much did they spend on players or make from sales?

"They have spent GBP164,000 on player registrations.

"I can't say whether that's money they have spent on players,
they don't have to describe that in the accounts.

"Player sales was GBP2.5 million, that's down from GBP2.7 million
- so they didn't do as well."


MATTHEWS LIMITED: Goes Into Liquidation, Six Lose Jobs
------------------------------------------------------
Duncan Brodie at Ipswich Star reports that a long-established
electrical appliances retailer in Ipswich has gone into
liquidation with the loss of six jobs.

Matthews, based in Foxhall Road, has been trading in the town for
more than 70 years, but is said to have struggled for sales
recently in the face of competition from large edge-of-town
stores and online operators, according to Ipswich Star.

The report notes that Chris McKay, a director at regional
business rescue and insolvency specialist McTear Williams & Wood,
has now been appointed as liquidator following a meeting of
creditors held under the Insolvency Act 1986.

Adrian Sage, senior associate at McTear Williams & Wood, said:
"Matthews is a long-established and well-known local business but
it has suffered a reduction trade, with online retailers and out-
of-town stores affecting sales. Unfortunately, all six employees,
including the two directors, have been made redundant," the
report relays.

He added that the prospects for creditors of the company remained
uncertain at such an early stage in the liquidation process, the
report notes.

Records at Companies House show that Matthews Limited was
incorporated in February 1971 and took its current name in May
1988, having previous been known as Matthews TV Rentals Limited.
However, according to the company's website, the business was
first established in 1946.  The current directors, according to
Companies House, are Andrew John Cloud, appointed in October
2010, who is shown in the company's last annual return as its
sold shareholder, and John Lorne Crawford, appointed in January
2014.

The report discloses that the company's last annual accounts,
filed in July last year and covering the year to October 31,
2015, show net liabilities of GBP77,768, compared with GBP63,356
a year earlier.


* UK: Quarter of Home Care Providers Face Insolvency Risk
---------------------------------------------------------
Paul Gallagher at iNews reports that an investigation has found a
quarter of the UK's 2,500 home care providers are at risk of
insolvency and almost 70 have closed down in the last three
months.

According to iNews, BBC Panorama discovered 95 councils have also
had home care contracts cancelled by private companies, as a
nationwide shortage of home-care workers puts the sector on the
brink of collapse.

The program found that agencies were struggling to deliver the
care required with the funding offered, forcing the companies to
end their contracts, iNews relates.

The agencies -- which provide help for people living
independently at home -- also struggled to recruit and retain
staff, iNews discloses.

                            *********

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

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

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


                            *********


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

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

Copyright 2017.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *