TCREUR_Public/170503.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, May 3, 2017, Vol. 18, No. 87


                            Headlines


G R E E C E

GREECE: Reaches Deal with Creditors on Austerity Measures


I R E L A N D

AQUEDUCT 1-2017: Moody's Assigns (P)B2 Rating to Class F Notes
BOSPHORUS CLO III: Fitch Rates EUR7.3MM Class F Notes 'B(EXP)'
EUROPEAN 2017-NPL1: Moody's Assigns Ba3 Rating to Class C Notes
PB DOMICILE 2006-1: Fitch Affirms 'Bsf' Rating on Class E Notes


I T A L Y

ALITALIA SPA: Files Request to Enter Administration Proceedings
VENETO BANCA: Liquidates Irish Wholesale Banking Operation


N E T H E R L A N D S

CAIRN CLO IV: Moody's Affirms B2 Rating on Class F Sr. Sec. Notes
CAIRN CLO IV: Fitch Affirms B- Rating on EUR8.0MM Class F Notes
GROSVENOR PLACE 2015-1: Moody's Affirms B2 Rating on Cl. E Notes
GROSVENOR PLACE 2015-1: Fitch Affirms B- Rating on Class E Notes
MESDAG DELTA: Fitch Affirms 'CC' Rating on EUR46MM Class E Notes


R U S S I A

KURSK REGION: Fitch Withdraws 'BB+/B' Issuer Default Ratings
MURMANSK REGION: Fitch Withdraws BB- IDRs, Outlook Stable
PERESVET BANK: Inter RAO Receives 15% of Funds
STAVROPOL REGION: Fitch Affirms BB Long-Term IDRs, Outlook Stable
TVER REGION: Fitch Affirms 'BB-/B' IDRs, Outlook Stable


S P A I N

BANCO BILBAO: Fitch Affirms 'BB' Preference Shares Rating
FTPYME BANCAJA 3: Fitch Affirms 'CC' Rating on Class D Notes


U K R A I N E

UKRAINE: Fitch Affirms B- Long-Term IDRs, Outlook Stable


U N I T E D   K I N G D O M

CLEEVE LINK: County Pays Previous Staff's Wages After Liquidation
COPPOLA RISTORANTE: Goes Into Administration
LONDON AND ST. LAWRENCE: Placed Into Voluntary Liquidation
MILLCLIFFE LTD: In Administration, Burger King Jobs at Risk
PRECISE MORTGAGE 2017-1B: Moody's Rates GBP8.7MM Cl. E Notes Ba2

PRECISE MORTGAGE 2017-1B: Fitch Assigns BB+ Rating to Cl. E Notes
SAGA PLC: Moody's Rates Proposed GBP250MM Sr. Unsecured Bond Ba1
TATA STEEL: Liberty to Add Jobs at Specialty Steels Operations


X X X X X X X X

* Number of B3-PD Neg. or Lower Rated EMEA Companies Falls in 1Q


                            *********


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G R E E C E
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GREECE: Reaches Deal with Creditors on Austerity Measures
---------------------------------------------------------
Szu Ping Chan at The Telegraph reports that Greece has reached a
deal with its creditors on austerity measures that will pave the
way for talks to reduce Athens' massive debt burden.

Euclid Tsakalotos, the country's finance minister, said a
preliminary agreement had been reached following late night
talks, The Telegraph relates.

"The negotiations for a technical deal were concluded on all
issues . . . the way has now been paved for debt relief talks,"
The Telegraph quotes Mr. Tsakalotos as saying.

The deal, which is set to unlock billions of euros in rescue
funds, will also pave the way for the International Monetary Fund
(IMF) to join Greece's third, EUR86 billion (GBP73 billion)
rescue package, The Telegraph notes.

Policies to offset the austerity measures were also agreed,
including rent subsidies, higher child benefit and more means-
tested support for prescriptions, The Telegraph states.

According to The Telegraph, the agreement saw Athens bow to a
series of creditor demands, including double-digit pension cuts
and a reduction in tax-free allowances in order to broaden the
tax base.

The European Stability Mechanism, the eurozone's bail-out fund,
signalled that it was optimistic about the IMF's participation in
the bail-out, on which countries such as Germany have insisted,
The Telegraph relays.


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I R E L A N D
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AQUEDUCT 1-2017: Moody's Assigns (P)B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Aqueduct
European CLO 1-2017 Designated Activity Company:

-- EUR234,000,000 Class A Senior Secured Floating Rate Notes due
    2030, Assigned (P)Aaa (sf)

-- EUR54,000,000 Class B Senior Secured Floating Rate Notes due
    2030, Assigned (P)Aa2 (sf)

-- EUR27,000,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)A2 (sf)

-- EUR20,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Baa2 (sf)

-- EUR24,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Ba2 (sf)

-- EUR11,300,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will endeavor
to assign definitive ratings. A definitive rating (if any) may
differ from a provisional rating.

RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. The provisional 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, HPS Investment
Partners CLO (UK) LLP ("HPS Investment Partners"), has sufficient
experience and operational capacity and is capable of managing
this CLO.

Aqueduct European CLO 1-2017 Designated Activity Company is a
managed cash flow CLO. At least 96% of the portfolio must consist
of senior secured loans and senior secured bonds and up to 4% of
the portfolio may consist of unsecured obligations, second-lien
loans, mezzanine loans and high yield bonds. The bond bucket
gives the flexibility to Aqueduct European CLO 1-2017 Designated
Activity Company to hold bonds. The portfolio is expected to be
approximately at least 60% ramped up as of the closing date and
to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe.

HPS Investment Partners 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 obligations, and are subject
to certain restrictions.

In addition to the six classes of notes rated by Moody's, the
Issuer will issue EUR19.1m of subordinated M-1 notes, EUR21.5m of
subordinated M-2 notes and EUR0.1m of subordinated M-3 notes,
which will not be rated. To the extent M-2 and M-3 subordinated
notes are held by affiliates of HPS Investment Partners, these
notes will accrue interest in the amount of the senior and
subordinated management fee which would have otherwise been paid
to the collateral manager. In case of a distribution switch event
triggered by the removal and replacement of HPS Investment
Partners as the manager under this transaction, the transaction
will convert back to directly paying fees to the (third party)
collateral manager.

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. HPS Investment Partners'
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. As such, Moody's
encompasses the assessment of stressed scenarios.

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

Par amount: EUR400,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2775

Weighted Average Spread (WAS): 3.70%

Weighted Average Recovery Rate (WARR): 43%

Weighted Average Life (WAL): 8 years.

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum 10% of the pool would be domiciled in
countries with A3. The remainder of the pool will be domiciled in
countries which currently have a local or foreign currency
country ceiling of Aaa or Aa1 to Aa3.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional rating assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on 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 3191 from 2775)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B Senior Secured Floating Rate Notes: -2

Class C 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 3608 from 2775)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes:-1

Class B Senior Secured Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -2

Further details regarding Moody's analysis of this transaction
may be found in the upcoming pre-sale report, available soon on
Moodys.com.

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.


BOSPHORUS CLO III: Fitch Rates EUR7.3MM Class F Notes 'B(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned Bosphorus CLO III Designated Activity
Company expected ratings, as follows:

EUR219.4m Class A Secured Floating Rate Notes: 'AAA(EXP)sf';
Outlook Stable
EUR34.7m Class B Secured Floating Rate Notes: 'AA+(EXP)sf';
Outlook Stable
EUR23.7m Class C Secured Deferrable Floating Rate Notes:
'A(EXP)sf'; Outlook Stable
EUR17.7m Class D Secured Deferrable Floating Rate Notes:
'BBB(EXP)sf'; Outlook Stable
EUR22.3m Class E Secured Deferrable Floating Rate Notes:
'BB(EXP)sf'; Outlook Stable
EUR7.3m Class F Secured Deferrable Floating Rate Notes:
'B(EXP)sf'; Outlook Stable
EUR29.3m Subordinated Notes: Not Rated

Bosphorus CLO III Designated Activity Company is a cash flow
collateralised loan obligation. Net proceeds from the notes are
being used to purchase a EUR346.4 million portfolio of European
leveraged loans and bonds. The portfolio is managed by
Commerzbank AG.

KEY RATING DRIVERS

Limited Reinvestment Period
The portfolio will be 100% ramped at closing and the manager is
only allowed to reinvest unscheduled principal proceeds for two
years. Sales proceeds from credit-impaired and defaulted
obligations are not allowed to be reinvested and will be used to
redeem the notes.

Higher Obligor Concentration
The transaction is exposed to higher obligor concentration than
other CLO transactions but is more granular than Bosphorus CLO
II, with the portfolio consisting of 78 assets from 57 obligors.
The largest obligor represents 2.53% and the 10 largest obligors
represent 25.3% of the portfolio notional.

Shorter Risk Horizon
The transaction's weighted average life (WAL) is 5.56 years and
the maximum WAL covenant is set at 6.34 years. The shorter risk
horizon means the transaction is less vulnerable to underlying
price movements and economic and asset performances.

Portfolio Credit Quality
The average credit quality of obligors will be in the 'B'
category, with the weighted average rating factor of the
portfolio 31.8. The transaction has a maximum weighted average
rating factor covenant of 32.25. Fitch has credit opinions or
public ratings on 100% of the identified portfolio. The
transaction does not contain and cannot purchase 'CCC' rated
assets.

High Recovery Expectations
The portfolio will comprise senior secured loans and bonds.
Recovery prospects for these assets are typically more favourable
than for second-lien, unsecured, and mezzanine assets. Fitch has
assigned Recovery Ratings for all assets in the portfolio. The
weighted average recovery rate of the portfolio is expected to be
68.77% and the minimum weighted average recovery covenant is
68.25%.

RATING SENSITIVITIES

A 25% increase in the obligor default probability could lead to a
downgrade of up to three notches for the rated notes, while a 25%
reduction in expected recovery rates could lead to a downgrade of
up to four notches for the rated notes.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognized
Statistical Rating Organizations and/or European Securities and
Markets Authority registered rating agencies. Fitch has relied on
the practices of the relevant groups within Fitch and/or other
rating agencies to assess the asset portfolio information.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.

- Loan-by-loan data provided by Stifel as at April 17, 2017
- Preliminary offering circular dated April 22, 2017


EUROPEAN 2017-NPL1: Moody's Assigns Ba3 Rating to Class C Notes
---------------------------------------------------------------
Moody's Investors Service has assigned definitive credit ratings
to the following notes issued by European Residential Loan
Securitisation 2017-NPL1 DAC:

-- EUR182.76M Class A Mortgage Backed Floating Rate Notes due
    July 2054, Definitive Rating Assigned A1(sf)

-- EUR16.81M Class B Mortgage Backed Floating Rate Notes due
    July 2054, Definitive Rating Assigned Baa3(sf)

-- EUR14.71M Class C Mortgage Backed Floating Rate Notes due
    July 2054, Definitive Rating Assigned Ba3(sf)

Moody's has not assigned ratings to the EUR44M Class P and
EUR161.87M Class D Mortgage Backed Notes due July 2054.

This transaction represents the second securitisation transaction
that Moody's has rated in Ireland that is backed by non-
performing loans ("NPL"). The assets supporting the notes are
NPLs extended to borrowers in Ireland.

The portfolio will be serviced by Start Mortgages DAC ("Start";
NR). The servicing activities performed by Start are monitored by
the servicing consultant, Hudson Advisors Ireland DAC ("Hudson";
NR). Hudson has also been appointed as back-up servicer
facilitator in place to assist the issuer to find a substitute
servicer in case the servicing agreement with Start is
terminated.

RATINGS RATIONALE

Moody's ratings reflect an analysis of the characteristics of the
underlying pool of NPLs, sector-wide and servicer-specific
performance data, protection provided by credit enhancement, the
roles of external counterparties, and the structural integrity of
the transaction.

In order to estimate the cash flows generated by the pool,
Moody's used a Monte Carlo based simulation that generates for
each property backing a loan an estimate of the property value at
the sale date based on the timing of collections.

The key drivers for the estimates of the collections and their
timing are: (i) the historical data received from the servicer;
(ii) the timings of collections for the secured loans based on
the legal stage a loan is located at; (iii) the current and
projected property values at the time of default, and (iv) the
servicer's strategies and capabilities in maximising recoveries
on the loans and in foreclosing on the properties.

Hedging: As the collections from the pool are not directly
connected to a floating interest rate, a higher index payable on
the notes would not be offset with higher collections from the
NPLs. The transaction therefore benefits from an interest rate
cap, linked to one-month EURIBOR, with Barclays Bank PLC (A1/P-1/
A1(cr)) as cap counterparty. The notional of the interest rate
cap is equal to the closing balance of the Class A, B and C
notes. The cap expires five years from closing.

Coupon cap: The transaction structure features coupon caps that
apply when five years have elapsed since closing. The coupon caps
limit the interest payable on the notes in case of rising
interest rates following the expiration of the interest rate cap.

Transaction structure: The payment waterfall provides for full
cash trapping: as long as Class A is outstanding, any cash left
after replenishing the Class A reserve and paying the servicer
consultant fee will be used to repay Class A. The transaction
benefits from an amortising Class A reserve equal to 4.5% of the
Class A note balance. The Class A reserve can be used to cover
senior fees and interest payments on Class A. The amounts
released from the Class A reserve as it amortises form part of
the available funds and will be used to pay the servicer
consultant fees and/or to amortise Class A. The Class A reserve
would be sufficient to cover around 23 months of interest on the
Class A notes and more senior items, at the strike price of the
cap. Class B benefits from a dedicated Class B interest reserve
equal to 10% of Class B balance at closing which can only be used
to pay interest on Class B while Class A is outstanding. The
Class B interest reserve is sufficient to cover around 53 months
of interest on Class B, assuming EURIBOR at the strike price of
the cap. Class C benefits from a dedicated Class C interest
reserve equal to 15% of Class C balance at closing which can only
be used to pay interest on Class C while Classes A and B are
outstanding. The Class C interest reserve is sufficient to cover
around 48 months of interest on Class C, assuming EURIBOR at the
strike price of the cap. Unpaid interest on Class B and Class C
is deferrable with interest accruing on the deferred amounts at
the rate of interest applicable to the respective note.

Structural changes related to Class C following the assignment of
the provisional rating: Compared to the provisional ratings
structure where Class C did not benefit from any source of
liquidity, Class C now benefits from a dedicated Class C interest
reserve as described under Transaction structure above.
Furthermore, the credit enhancement of Class C increased from
48.5% to 49%. These changes resulted in the definitive ratings
assigned to Class C being one notch higher than the provisional
ratings assigned to this Class on April 5th, 2017.

Servicing disruption risk: Hudson Advisors Ireland DAC (not
rated) is the back-up servicer facilitator in the transaction.
The back-up servicer facilitator will help the issuer to find a
substitute servicer in case the servicing agreement with Start is
terminated. Moody's expects the Class A reserve to be used up to
pay interest on Class A in absence of sufficient regular
cashflows generated by the portfolio early on in the life of the
transaction. It is therefore likely that there will not be
sufficient liquidity available to make payments on the Class A
notes in the event of servicer disruption. The insufficiency of
liquidity in conjunction with the lack of a back-up servicer mean
that continuity of note payments is not ensured in case of
servicer disruption. This risk is commensurate with the single-A
rating assigned to the most senior note.

Moody's Parameter Sensitivities: The model output indicates that
if house price volatility were to be increased to 6.28% from
5.23% and it would take an additional 12 months to go through the
foreclosure process the Class A notes would move to A2. Moody's
Parameter Sensitivities provide a quantitative/model-indicated
calculation of the number of rating notches that a Moody's
structured finance security may vary if certain input parameters
used in the initial rating process differed. The analysis assumes
that the deal has not aged and is not intended to measure how the
rating of the security might migrate over time, but rather how
the initial rating of the security might have differed if key
rating input parameters were varied.

The principal methodology used in these ratings was "Moody's
Approach to Rating Securitisations Backed by Non-Performing and
Re-Performing Loans" published in August 2016.

Please note that on March 22, 2017, Moody's released a Request
for Comment, in which it has requested market feedback on
potential revisions to its Approach to Assessing Counterparty
Risks in Structured Finance. If the revised Methodology is
implemented as proposed, the Credit Rating on European
Residential Loan Securitisation 2017-NPL1 DAC is not expected to
be affected. Please refer to Moody's Request for Comment, titled
"Moody's Proposes Revisions to Its Approach to Assessing
Counterparty Risks in Structured Finance," for further details
regarding the implications of the proposed Methodology revisions
on certain Credit Ratings.

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

Factors that may lead to an upgrade of the ratings include that
the recovery process of the NPLs produces significantly higher
cash flows realised in a shorter time frame than expected.

Factors that may cause a downgrade of the ratings include
significantly less or slower cash flows generated from the
recovery process on the NPLs due to either a longer time for the
courts to process the foreclosures and bankruptcies or a change
in economic conditions from Moody's central scenario forecast or
idiosyncratic performance factors. For instance, should economic
conditions be worse than forecasted, falling property prices
could result, upon the sale of the properties, in less cash flows
for the issuer or it would take a longer time to sell the
properties and the higher defaults and loss severities resulting
from a greater unemployment, worsening household affordability
and a weaker housing market could result in downgrade of the
rating. Additionally, counterparty risk could cause a downgrade
of the rating due to a weakening of the credit profile of
transaction counterparties.

Finally, unforeseen regulatory changes or significant changes in
the legal environment may also result in changes of the ratings.

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

Moody's will monitor this transaction on an ongoing basis. For
updated monitoring information, please contact
monitor.rmbs@moodys.com.


PB DOMICILE 2006-1: Fitch Affirms 'Bsf' Rating on Class E Notes
---------------------------------------------------------------
Fitch Ratings has upgraded PB Domicile 2006-1 plc's EUR2.4
million class D notes (DE000A0GYFL1) to 'A-sf' from 'BBB+sf' and
assigned a Negative Outlook. At the same time, Fitch has affirmed
PB Domicile 2006-1 plc's EUR15.4 million class E notes
(DE000A0GYFM9) at 'Bsf'; the Outlook is Stable.

The transaction is a synthetic residential mortgage backed
security referencing German mortgage loans. The reference loans
were originated by Deutsche Postbank AG (A-/Negative/F1) and its
acquired entity, DSL Bank.

The transaction was called in 2011 and now consists of the
outstanding class D and E notes that are equal to the outstanding
reference claim balance that was overdue at the time of the call
(EUR18.3 million as at 31 January 2017). Excess spread for the
benefit of the class D and class E noteholders is calculated on
the basis of the total reference portfolio of EUR531 million (as
at 31 January 2017).

For the purpose of asset modelling with Fitch's ResiEMEA Germany
model, Fitch assumed a debt-to-income ratio for each borrower of
0.4, reflecting established underwriting standards. The property
market values have been derived by dividing the lending values by
0.9. This assumption is prudent given the average observed
difference between property and market value.

KEY RATING DRIVERS

The class D notes rating is constrained by the Long-Term IDR of
Deutsche Postbank AG as provider of the charged/funded assets and
as the payer of the excess spread. The Negative Outlook therefore
reflects Deutsche Postbank AG's Long-Term IDR Outlook.

Besides the subordination, the excess spread of 57bps per annum
is another form of credit enhancement to the class D notes, while
it is the only form of credit enhancement to the class E notes.
The excess spread amount depends on the amortisation speed of the
reference portfolio; thus, fast amortisation is a major risk. The
future excess spread amounts have been estimated based on
calculated portfolio amortisation and prepayments in line with
Fitch's criteria. Since the excess spread amounts are fading over
time, late losses are introducing a risk, particularly to the
class E notes, which is reflected in the 'Bsf' rating of the note
class even with the currently high excess spread amounts. The
timing of the losses from the remaining portfolio of previously
overdue reference claims is more important than the amount of the
losses.

VARIATIONS FROM CRITERIA
None.

RATING SENSITIVITIES

The ratings of the notes depend on the rating of Deutsche
Postbank AG as issuer of the charged assets and provider of
synthetic excess spread. A change in the rating of Deutsche
Postbank AG would have a direct impact on the rating of the class
D notes.

The repayment rate of the reference portfolio together with the
timing of losses from the outstanding overdue reference claims
are the biggest drivers on the class E notes' performance.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.
  - Loan-by-loan data provided by Deutsche Postbank AG as at
   January 31, 2017

  - Transaction reporting provided by Deutsche Postbank AG as at
    January 31, 2017

  - Loan-by-loan data provided by Deutsche Postbank AG on its
    covered bond residential mortgage pool as at September 30,
    2016


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I T A L Y
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ALITALIA SPA: Files Request to Enter Administration Proceedings
---------------------------------------------------------------
James Politi at The Financial Times reports that Alitalia has
filed a request with the Italian government to enter
administration proceedings, in a process that will lead to the
sale or liquidation of Italy's flag carrier.

Following a shareholder meeting on May 2, the loss-making
airline, partly owned by Etihad of the UAE, asked the ministry of
economic development to move ahead with the administration, the
FT relates.

According to the FT, in a statement Alitalia said the board had
unanimously agreed to take the step, noting the "serious economic
and financial situation of the company" and the "unfeasibility of
finding alternative solutions" quickly.
The government will now have to issue a decree naming between one
and three commissioners with broad powers to lead Alitalia in the
months ahead, and cut jobs and renegotiate contracts as
necessary, the FT discloses.

                         About Alitalia

Alitalia-Compagnia Aerea Italiana has navigated its way through
a successful restructuring.  After filing for bankruptcy
protection in 2008, Alitalia found additional investors, acquired
rival airline Air One, and re-emerged as Italy's leading airline
in early 2009.  Operating a fleet of about 150 aircraft, the
airline now serves more than 75 national and international
destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice,
Naples, and Catania.  Alitalia extends its network as a member of
the SkyTeam code-sharing and marketing alliance, which also
includes Air France, Delta Air Lines, and KLM.  An Italian
investor group owns a majority of the company, while Air France-
KLM owns 25%.


VENETO BANCA: Liquidates Irish Wholesale Banking Operation
----------------------------------------------------------
Fiona Reddan at The Irish Times reports that Veneto Banca, the
troubled Italian lender which is in the process of requesting
state aid to secure its future, has liquidated its Irish
wholesale banking operation, Veneto Ireland Financial Services.

According to The Irish Times, a spokesman for the bank said the
decision to close the Dublin branch came about as a result of the
group's rationalization of its foreign subsidiaries.

The bank's Irish branch, which closed to business in March 2016,
before being liquidated in March of this year, reported operating
income of some EUR5 million for the Irish branch as of year-end
2016, largely due to the sale of its securities portfolio (EUR6
million) down from EUR47 million in the same period in 2015, The
Irish Times relates.  The bank had assets of EUR435.6 million at
year-end 2016, The Irish Times discloses.

Veneto's main activity was engaging in a range of financial
transactions, and supporting the group in implementing its
financial strategies, The Irish Times discloses.  Based in
Commerzbank House in the IFSC, it employed fewer than 10 people,
The Irish Times states.

Veneto Banca was bailed out by the Italian government in 2016,
when a private vehicle sponsored by the government took ownership
of it, The Irish Times recounts.  It has subsequently applied for
an injection of public money, a so-called "precautionary
recapitalisation" by the state, a scheme already being used by
troubled bank Monte dei Paschi di Siena, The Irish Times notes.

Veneto Banca S.p.A. is an Italian bank headquartered in
Montebelluna, Italy.


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


CAIRN CLO IV: Moody's Affirms B2 Rating on Class F Sr. Sec. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to six classes of notes issued by Cairn CLO IV B.V., (the
"Issuer"):

-- EUR175,000,000 Refinancing Class A-1 Senior Secured Floating
    Rate Notes due 2028, Definitive Rating Assigned Aaa (sf)

-- EUR5,000,000 Refinancing Class A-2 Senior Secured Fixed Rate
    Notes due 2028, Definitive Rating Assigned Aaa (sf)

-- EUR20,250,000 Refinancing Class B-1 Senior Secured Floating
    Rate Notes due 2028, Definitive Rating Assigned Aa2 (sf)

-- EUR15,000,000 Refinancing Class B-2 Senior Secured Fixed Rate
    Notes due 2028, Definitive Rating Assigned Aa2 (sf)

-- EUR16,750,000 Refinancing Class C Senior Secured Deferrable
    Floating Rate Notes due 2028, Definitive Rating Assigned A2
    (sf)

-- EUR15,750,000 Refinancing Class D Senior Secured Deferrable
    Floating Rate Notes due 2028, Definitive Rating Assigned Baa2
    (sf)

Additionally, Moody's has affirmed the ratings on the existing
junior notes issued by Cairn CLO IV B.V.:

-- EUR21,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2028, Affirmed Ba2 (sf); previously on 18 Dec 2014
    Definitive Rating Assigned Ba2 (sf)

-- EUR8,000,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2028, Affirmed B2 (sf); previously on 18 Dec 2014
    Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the refinancing notes address the
expected loss posed to noteholders. The ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets.

The Issuer issued the Refinancing Class A-1 Notes, the
Refinancing Class A-2 Notes, the Refinancing Class B-1 Notes, the
Refinancing Class B-2 Notes, the Refinancing Class C Notes and
the Refinancing Class D Notes (the "Refinancing Notes") in
connection with the refinancing of the Class A-1 Senior Secured
Floating Rate Notes due 2028, the Class A-2 Senior Secured Fixed
Rate Notes due 2028, the Class B-1 Senior Secured Floating Rate
Notes due 2028, the Class B-2 Senior Secured Fixed Rate Notes due
2028, the Class C Senior Secured Deferrable Floating Rate Notes
due 2028 and the Class D Senior Secured Deferrable Floating Rate
Notes due 2028 ("the Original Notes") respectively, previously
issued on December 18, 2014 (the "Original Closing Date"). The
Issuer uses the proceeds from the issuance of the Refinancing
Notes to redeem in full the Original Notes that are refinanced.
On the Original Closing Date, the Issuer also issued the Class E
Notes and Class F Notes as well as one class of subordinated
notes, which will remain outstanding.

Other than the changes to the spreads and coupon of the notes, no
other material modifications to the CLO are occurring in
connection to the refinancing.

Cairn CLO IV B.V. is a managed cash flow CLO. The issued notes
will be collateralized primarily by broadly syndicated first lien
senior secured corporate loans. At least 90% of the portfolio
must consist of senior secured loans or senior secured bonds and
up to 10% of the portfolio may consist of unsecured senior loans,
second lien loans, mezzanine obligations and high yield bonds.
The underlying portfolio is expected to be 100% ramped as of the
refinancing date.

Cairn Loan Investments LLP (the "Manager") manages the CLO. It
directs the selection, acquisition, and disposition of collateral
on behalf of the Issuer. After the reinvestment period, which
ends in January 2019, the Manager may reinvest unscheduled
principal payments and proceeds from sales of credit improved and
credit risk obligations, subject to certain restrictions.

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

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

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

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. As such, Moody's
encompasses the assessment of stressed scenarios.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par, recoveries and principal proceeds balance:
EUR300,000,000

Defaulted par: EUR0

Diversity Score: 40

Weighted Average Rating Factor (WARF): 3300

Weighted Average Spread (WAS): 4.70%

Weighted Average Recovery Rate (WARR): 45.65%

Weighted Average Life (WAL): 5.76 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with foreign currency
government bonds rating of A3 or below. Following the effective
date, and given the portfolio constraints and the current
sovereign ratings in Europe, such exposure may not exceed 10% of
the total portfolio, where exposures to countries rated below
Baa3 cannot exceed 5%. As a result and in conjunction with the
current foreign government bonds ratings of the eligible
countries, as a worst case scenario, a maximum 5% of the pool
would be domiciled in countries with A3 local currency country
ceiling and 5% in countries with Baa3 local currency country
ceiling. The remainder of the pool will be domiciled in countries
which currently have a local currency country ceiling of Aaa or
Aa1 to Aa3. Given this portfolio composition, the model was run
with different target par amounts depending on the target rating
of each class of notes as further described in the rating
methodology. The portfolio haircuts are a function of the
exposure size to peripheral countries and the target ratings of
the rated notes and amount to 0.75% for the Class A-1 and A-2
Notes, 0.50% for the Class B-1 and B-2 Notes, 0.375% for the
Class C Notes and 0% for Class D Notes.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the ratings assigned to the Refinancing
Notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on the Refinancing Notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), assuming that all other factors are held equal.

Percentage Change in WARF -- increase of 15% (from 3300 to 3795)

Rating Impact in Rating Notches:

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

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

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

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

Refinancing Class C Senior Secured Deferrable Floating Rate
Notes: 0

Refinancing Class D Senior Secured Deferrable Floating Rate
Notes: 0

Percentage Change in WARF -- increase of 30% (from 3300 to 4290)

Rating Impact in Rating Notches:

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

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

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

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

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

Refinancing Class D Senior Secured Deferrable Floating Rate
Notes: -1

Further details regarding Moody's analysis of this transaction
may be found in the related new issue report, published on the
Original Closing Date in December 2014 and available on
Moodys.com.

Methodology Underlying the Rating Actions:

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


CAIRN CLO IV: Fitch Affirms B- Rating on EUR8.0MM Class F Notes
---------------------------------------------------------------
Fitch Assigns Cairn CLO IV Refinancing Notes Final Ratings

Fitch Ratings has assigned Cairn CLO IV B.V.'s refinancing notes
final ratings and affirmed the others, as follows:

EUR175.0 million Class A-1 notes: assigned 'AAAsf'; Outlook
Stable
EUR5.0 million Class A-2 notes: assigned 'AAAsf'; Outlook Stable
EUR20.3 million Class B-1 notes: assigned 'AAsf'; Outlook Stable
EUR15.0 million Class B-2 notes: assigned 'AAsf'; Outlook Stable
EUR16.8 million Class C notes: assigned 'Asf'; Outlook Stable
EUR15.8 million Class D notes: assigned 'BBBsf'; Outlook Stable
EUR21.0 million Class E notes: affirmed at 'BBsf'; Outlook Stable
EUR8.0 million Class F notes: affirmed at 'B-sf'; Outlook Stable

The transaction is a cash flow collateralised loan obligation
securitising a portfolio of mainly European leveraged loans and
bonds. The portfolio is managed by Cairn Loan Investments LLP.

KEY RATING DRIVERS

Cairn CLO IV B.V. closed in December 2014 and is still in in its
reinvestment period, which is set to expire in January 2019. The
issuer is now issuing new notes to refinance part of the original
liabilities. The refinanced notes A-1, A-2, B-1, B-2, C and D
will be redeemed in full as a consequence of the refinancing.

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

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

'B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors in the 'B'
category. The agency has public ratings or credit opinions on all
the obligors in the current portfolio. The weighted average
rating factor (WARF) of the current portfolio is 32.1, below the
covenanted maximum for the current matrix point of 33.5.

High Recovery Expectation
At least 90% of the portfolio will comprise senior secured loans
and senior secured bonds. Recovery prospects for these assets are
typically more favourable than for second-lien, unsecured, and
mezzanine assets. The weighted average recovery rate of the
current portfolio is 66.4%, above the covenanted minimum for the
current matrix point of 64.4%.

Performance Within Expectations
The affirmation of the class E and F notes reflects the stable
performance of the transaction, in line with Fitch's
expectations. The transaction is 0.67% above par and there are no
defaults or assets rated 'CCC' and below in the portfolio. All
coverage, collateral and portfolio profile tests were passing, as
of the March 2017 report.

RATING SENSITIVITIES

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognized
Statistical Rating Organizations and/or European Securities and
Markets Authority registered rating agencies. Fitch has relied on
the practices of the relevant groups within Fitch and/or other
rating agencies to assess the asset portfolio information.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.

- Loan-by-loan data, provided by the collateral administrator
   as at March 6, 2017.

- Transaction reporting, provided by the collateral
administrator
   as at March 6, 2017.

- Offering circular, dated April 26, 2017.

REPRESENTATIONS AND WARRANTIES

A description of the transaction's Representations, Warranties
and Enforcement Mechanisms (RW&Es) that are disclosed in the
offering document and which relate to the underlying asset pool
was not prepared for this transaction. Offering documents for
EMEA leveraged finance CLOs typically do not include RW&Es that
are available to investors and that relate to the asset pool
underlying the CLO. Therefore, Fitch's credit reports for EMEA
leveraged finance CLO offerings will not typically include
descriptions of RW&Es. For further information, see Fitch's
Special Report titled "Representations, Warranties and
Enforcement Mechanisms in Global Structured Finance
Transactions," dated 31 May 2016.


GROSVENOR PLACE 2015-1: Moody's Affirms B2 Rating on Cl. E Notes
----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to six classes of refinancing notes issued by Grosvenor
Place CLO 2015-1 B.V.:

-- EUR202,750,000 Class A-1A-R Senior Secured Floating Rate
    Notes due 2029, Definitive Rating Assigned Aaa (sf)

-- EUR5,000,000 Class A-1B-R Senior Secured Fixed Rate Notes due
    2029, Definitive Rating Assigned Aaa (sf)

-- EUR31,750,000 Class A-2A-R Senior Secured Floating Rate Notes
    due 2029, Definitive Rating Assigned Aa1 (sf)

-- EUR12,000,000 Class A-2B-R Senior Secured Fixed Rate Notes
    due 2029, Definitive Rating Assigned Aa1 (sf)

-- EUR20,000,000 Class B-R Senior Secured Deferrable Floating
    Rate Notes due 2029, Definitive Rating Assigned A1 (sf)

-- EUR17,250,000 Class C-R Senior Secured Deferrable Floating
    Rate Notes due 2029, Definitive Rating Assigned Baa1 (sf)

Additionally, Moody's has affirmed the ratings on the existing
following notes issued by Grosvenor Place CLO 2015-1 B.V.:

-- EUR24,750,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2029, Affirmed Ba2 (sf); previously on Apr 30, 2015
    Assigned Ba2 (sf)

-- EUR11,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2029, Affirmed B2 (sf); previously on Apr 30, 2015
    Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the refinancing notes address the
expected loss posed to noteholders. The ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets.

The Issuer issued the Class A-1A-R Notes, the Class A-1B-R Notes,
the Class A-2A-R Notes, the Class A-2B-R Notes, the Class B-R
Notes and the Class C-R Notes (the "Refinancing Notes") in
connection with the refinancing of the Class A-1A Senior Secured
Floating Rate Notes due 2029, the Class A-1B Senior Secured Fixed
Rate Notes due 2029, the Class A-2A Senior Secured Floating Rate
Notes due 2029, the Class A-2B Senior Secured Fixed Rate Notes
due 2029, the Class B Senior Secured Deferrable Floating Rate
Notes due 2029 and the Class C Senior Secured Deferrable Floating
Rate Notes due 2029 ("the Original Notes") respectively,
previously issued on April 30, 2015 (the "Original Issue Date").
The Issuer has used the proceeds from the issuance of the
Refinancing Notes to redeem the Original Notes. On the Original
Issue Date, the Issuer also issued two classes of rated notes,
one class of unrated notes and one class of subordinated notes,
which remain outstanding.

Grosvenor Place CLO 2015-1 B.V. 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 underlying portfolio is 100%
ramped as of the refinancing date.

CQS Investment Management Limited (the "Manager") manages the
CLO. It directs the selection, acquisition and disposition of
collateral on behalf of the Issuer and may engage in trading
activity, including discretionary trading, during the
transaction's reinvestment period. After the reinvestment period,
which ends in April 2019, 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.

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. 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.

Loss and Cash Flow Analysis:

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

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par, recoveries and principal proceeds balance:
EUR350,000,000

Defaulted par: EUR2,178,796

Diversity Score: 38

Weighted Average Rating Factor (WARF): 3163

Weighted Average Spread (WAS): 4.58%

Weighted Average Recovery Rate (WARR): 45.81%

Weighted Average Life (WAL): 6 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 rating of A1 to Baa3 cannot exceed 10%. As a worst
case scenario, a maximum 10% of the pool would be domiciled in
countries with LCC of Baa1 to Baa3. The remainder of the pool
will be domiciled in countries which currently have a LCC of Aa3
and above. Given this portfolio composition, the analysis was
performed with different target par amounts depending on the
target rating of each class of notes as further described in the
methodology. The portfolio haircuts are a function of the
exposure size to peripheral countries and the target ratings of
the rated notes and amount to 1.50% for the Class A-1-R Notes,
1.00% for the Class A-2-R Notes, 0.75% for the Class B-R Notes
and 0% for the Classes C-R, D and E Notes.

Methodology Underlying the Rating Action:

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

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

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

Stress Scenarios:

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

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

Percentage Change in WARF -- increase of 15% (from 3163 to 3637)

Rating Impact in Rating Notches:

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

Class A-1B-R Senior Secured Fixed Rate Notes: 0

Class A-2A-R Senior Secured Floating Rate Notes: -2

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

Class B-R Senior Secured Deferrable Floating Rate Notes: -1

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

Percentage Change in WARF -- increase of 30% (from 3163 to 4112)

Rating Impact in Rating Notches:

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

Class A-1B-R Senior Secured Fixed Rate Notes: 0

Class A-2A-R Senior Secured Floating Rate Notes: -2

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

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

Class C-R Senior Secured Deferrable Floating Rate Notes: -3

Further details regarding Moody's analysis of this transaction
may be found in the related new issue report, published around
the Original Issue Date in April 2015 and available on
Moodys.com.


GROSVENOR PLACE 2015-1: Fitch Affirms B- Rating on Class E Notes
----------------------------------------------------------------
Fitch Ratings has assigned Grosvenor Place CLO 2015-1 B.V.'s
refinancing notes final ratings, and affirmed the junior notes as
follows:

EUR202.75 million Class A-1A notes: 'AAAsf'; Outlook Stable
EUR5.0 million Class A-1B notes: 'AAAsf'; Outlook Stable
EUR31.75 million Class A-2A notes: 'AAsf'; Outlook Stable
EUR12.0 million Class A-2B notes: 'AAsf'; Outlook Stable
EUR20.0 million Class B notes: 'Asf'; Outlook Stable
EUR17.25 million Class C notes: 'BBBsf'; Outlook Stable
EUR24.75 million Class D notes: Affirmed at 'BBsf'; Outlook
Stable
EUR11.0 million Class E notes: Affirmed at 'B-sf'; Outlook Stable
EUR1.35 million Class M notes: Not Rated
EUR36.11 million subordinated notes: Not Rated

The transaction is a cash flow collateralised loan obligation
securitising a portfolio of mainly European leveraged loans and
bonds. The portfolio is managed by CQS Investment Management
Limited.

KEY RATING DRIVERS

Refinancing Issuance
Grosvenor Place CLO 2015-1 B.V. closed in April 2015 and is still
in in its reinvestment period, which will expire in April 2019.
The issuer has now issued new notes to refinance part of the
original liabilities. The original notes have been redeemed in
full as a consequence of the refinancing.

The refinancing notes bear interest at a lower margin over
EURIBOR than the notes being refinanced. The remaining terms and
conditions of the refinancing notes (including seniority) are the
same, with exception of the Fitch test matrix, which has been
revised. Fitch has tested the refinanced notes and the
outstanding junior notes in its analysis of the new Fitch test
matrix.

Fitch has affirmed the junior notes based on stable performance
during the review period. The transaction is passing all
collateral quality and portfolio profile tests.

'B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors in the 'B'
category. The agency has public ratings or credit opinions on all
the obligors in the current portfolio. The weighted average
rating factor of the current portfolio is 32.59.

High Recovery Expectation
At least 90% of the portfolio will be comprised of senior secured
loans and senior secured bonds. Recovery prospects for these
assets are typically more favourable than for second-lien,
unsecured, and mezzanine assets. The weighted average recovery
rate of the current portfolio is 63.84%.

RATING SENSITIVITIES

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

DATA ADEQUACY

Most of the underlying assets have ratings or credit opinions
from Fitch and/or other Nationally Recognised Statistical Rating
Organisations and/or European Securities and Markets Authority
registered rating agencies. Fitch has relied on the practices of
the relevant groups within Fitch and/or other rating agencies to
assess the asset portfolio information.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.
- Loan-by-loan data, provided by the collateral administrator
   at March 31, 2017

- Transaction reporting, provided by the collateral
administrator
   at March 31, 2017

- Final offering circular received April 26, 2017

REPRESENTATIONS AND WARRANTIES

A description of the transaction's Representations, Warranties
and Enforcement Mechanisms (RW&Es) that are disclosed in the
offering document and which relate to the underlying asset pool
was not prepared for this transaction. Offering documents for
EMEA leveraged finance CLOs typically do not include RW&Es that
are available to investors and that relate to the asset pool
underlying the CLO. Therefore, Fitch's credit reports for EMEA
leveraged finance CLO offerings will not typically include
descriptions of RW&Es. For further information, see Fitch's
Special Report titled "Representations, Warranties and
Enforcement Mechanisms in Global Structured Finance
Transactions," dated May 31, 2016.


MESDAG DELTA: Fitch Affirms 'CC' Rating on EUR46MM Class E Notes
----------------------------------------------------------------
Fitch Ratings has affirmed Mesdag (Delta) B.V.'s floating rate
notes due 2020 as follows:

EUR366.3 million class A (XS0307565928) affirmed at 'BBsf';
Outlook Stable

EUR44.0 million class B (XS0307574599) affirmed at 'BB-sf';
Outlook revised to Stable from Negative

EUR50.0 million class C (XS0307576701) affirmed at 'B-sf';
Outlook revised to Stable from Negative

EUR60.1 million class D (XS0307578749) affirmed at 'CCsf';
Recovery Estimate revised to 30% from 10%

EUR46.0 million class E (XS0307580307) affirmed at 'CCsf; RE
revised to 0% from 5%

The transaction is the securitisation of a single commercial
mortgage-backed loan originated by NIBC Bank N.V. and closed in
2007. The loan was a 10-year refinancing facility backed by 77
commercial assets, predominantly retail, office and industrial.
In April 2017, 55 properties remained.

KEY RATING DRIVERS
The affirmation of the class A, B and C notes with Stable
Outlooks reflects the portfolio's stable performance in the last
12 months, as well as the expected liquidation of the portfolio
and full redemption of these tranches prior to bond maturity in
2020. The affirmation of the two junior tranches at 'CCsf'
reflects their likely default at maturity and ultimate loss; with
less than three years remaining until bond maturity, Fitch
expects recovery proceeds from sales to be discounted versus the
reported portfolio value.

Since the last rating action in May 2016 and prior to loan
default, EUR10.4 million of principal proceeds, from two property
sales and scheduled amortisation, has been applied to the notes
on a modified pro rata basis. Following the January loan default,
and resulting switch to sequential principal allocation, EUR3.9
million, stemming from surplus rent, was allocated to the class A
notes. No asset sales occurred between January and April 2017.

Current interest payments only account for around 8% of the net
operating income, although interest coverage is reported at 2.2x
(whether this mistakenly includes an unscheduled principal
payment has not been confirmed to Fitch). The debt service
coverage ratio is reported as 1.0x, suggesting that all excess
cash is being applied to repay the loan, but the special servicer
is actually trapping surplus rental income with the aim of
utilising such funds for future capital expenditure as part of
the disposal business plan.

A February 2017 revaluation of the collateral places the value at
EUR538.7 million, compared with a EUR534.5 million like-for-like
valuation of December 2015 (0.7% increase) and resulting in a
reported loan-to-value ratio of 109.7%. Fitch understand that
this is largely due improving asset values in central locations,
such as Amsterdam, where there has been an improvement in
occupancy and rental growth, as well as continued yield
compression, but has been hampered by falling values in regional
assets with expected increases in vacancy. The weighted average
vacancy rate across the portfolio remains high at 20.4%,
including seven fully vacant buildings, but slightly down from
22.5% at the last rating action in 2016.

The special servicer and borrower are targeting asset sales in
the remaining time to legal final of EUR120 million-EUR150
million in 2017, EUR150 million-EUR200 million in 2018 and the
remaining assets before legal final in January 2020. The plan is
to start with small assets and properties without potential value
enhancement. The borrower continues to manage the property
portfolio under a revised asset management agreement.

RATING SENSITIVITIES

Sales progress well below the targets set out by the special
servicer may result in downgrades of the notes and recovery
estimate revision on class D. A deterioration in the portfolio's
income profile or a worsening of the Dutch secondary property
market could also lead to negative action.

Fitch estimates 'Bsf' recoveries of EUR480 million.

DUE DILIGENCE USAGE

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall and together with the assumptions referred to above,
Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis:
Investor reporting provided by NIBC as at April 2017
Investor reporting provided by Situs Asset Management as at
January 2017


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


KURSK REGION: Fitch Withdraws 'BB+/B' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has withdrawn Russian Kursk Region's 'BB+'
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) with Stable Outlooks and 'B' Short-Term Foreign-Currency
IDR.

Fitch has chosen to withdraw the ratings of Kursk Region for
commercial reasons. As Fitch does not have sufficient information
to maintain the ratings, accordingly, the agency has withdrawn
the region's ratings without affirmation and will no longer
provide ratings or analytical coverage for Kursk Region.

RATING SENSITIVITIES

Not applicable


MURMANSK REGION: Fitch Withdraws BB- IDRs, Outlook Stable
---------------------------------------------------------
Fitch Ratings has withdrawn Russian Murmansk Region's 'BB-' Long-
Term Foreign and Local-Currency Issuer Default Ratings (IDRs)
with Stable Outlooks and 'B' Short-Term Foreign-Currency IDR.

KEY RATING DRIVERS

Fitch has withdrawn the ratings of Murmansk Region for commercial
reasons and due to lack of information. As Fitch does not have
sufficient information to maintain the ratings, accordingly the
agency has withdrawn the region's ratings without affirmation and
will no longer provide ratings or analytical coverage for
Murmansk Region.

RATING SENSITIVITIES

Not applicable.


PERESVET BANK: Inter RAO Receives 15% of Funds
----------------------------------------------
Interfax-Ukraine reports that the Inter RAO Group has already
received 15% of the funds hanging in Peresvet Bank.

"We have already received dividends for investment," Interfax-
Ukraine quotes company head Boris Kovalchuk as saying.

The Central Bank of the Russian Federation on April 19 decided to
repair Peresvet using the bail-in mechanism (converting the
bank's liabilities into its capital), Interfax-Ukraine relates.

The Bank of Russia will provide financing in the amount of
RUR66.7 billion, Interfax-Ukraine discloses.

According to Interfax-Ukraine, over 70 creditors of Peresvet,
including Inter RAO, voluntarily expressed their readiness to
convert the funds placed in it to the amount of RUR69.7 billion
in 15-year subordinated bonds (the nominal volume of the issue is
RUR125 billion).

                          *   *   *

As reported by the Troubled Company Reporter-Europe on April 3,
2017, S&P Global Ratings affirmed its 'D/D' long- and short-term
counterparty credit ratings and its 'D' Russia national scale
rating on JSCB Peresvet Bank.  At the same time, S&P affirmed its
'D' ratings on the bank's senior unsecured debt.  S&P
subsequently withdrew all ratings at the bank's request.

At the time of the withdrawal, S&P's ratings on Peresvet Bank
reflected the bank's inability to honor its obligations on time
and in full.

On Oct. 21, 2016, the Central Bank of Russia announced the
appointment of a temporary administration of Peresvet Bank and
imposed a payment moratorium, citing the bank's failure to meet
creditors' claims for more than seven days.  S&P subsequently
lowered the ratings on Peresvet Bank to 'D' on Oct. 24, 2016.


STAVROPOL REGION: Fitch Affirms BB Long-Term IDRs, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Russian Stavropol Region's Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'BB' with a Stable Outlook and Short-Term Foreign-Currency IDR at
'B'. The region's senior debt long-term rating has been affirmed
at 'BB'.

The affirmation and Stable Outlook reflects Fitch's base case
scenario regarding expected consolidation of the region's sound
operating performance, stabilisation of the debt metrics and
narrowing budget deficit over the medium term.

KEY RATING DRIVERS

The 'BB' ratings reflect the track record of satisfactory
budgetary performance with an operating balance covering interest
payments several times and a moderate level of debt with
increased reliance on low-cost budget loans. The ratings also
take into account refinancing pressure concentrated in 2017-2019,
below the national average wealth metrics of the regional economy
and a weak institutional framework for Russian sub-nationals.

Fitch expects consolidation of the region's budgetary performance
with an operating margin slightly above 10% over the medium term.
This will be underpinned by a moderate increase of taxes and
higher current transfers from the federal budget as a result of a
new approach to allocating the general-purpose grants. In 2016
the operating margin improved to 11.2% from 5% in 2015 supported
by control over operating expenditure and growth of tax revenue.

Taxes accounted for close to 70% of the region's operating
revenue and increased by 17% in 2016. The major contributors to
the growth were corporate income tax, one of the largest for the
region, and excises. The excises on fuel boosted the overall
increase in excises by 48% in 2016, but will likely decelerate in
2017 due to changed allocation.

We project the region's deficit before debt will remain at 4% of
total revenue in 2017 and further narrow to 2% in 2018-2019. This
will be underpinned by an improving operating balance and a
moderate decline of capital expenditure. Overall, Stavropol has a
higher level of capex than most of its 'BB' rated national peers,
which indicates the region's better financial flexibility. In
2016 the deficit before debt shrunk to 3.9% from a peak of 12.2%
in 2015.

Stavropol's debt will remain moderate stabilising at around 50%
of current revenue over the medium term. In 2016 the region's
direct risk was RUB38.5 billion, which corresponds to 50% of
current revenue (2015: 49%). The composition of direct risk
favourably changed towards higher proportion of low-cost federal
budget loans, which made up 38% of the total in 2016 (2015: 28%),
and allows the region to save on interest. The remaining direct
risk comprises bank loans (40%) and issued debt (23%).

Like most of its national peers, Stavropol remains exposed to
refinancing pressure with 84% of maturities due in 2017-2019. The
weighted average maturity profile was 2.7 years in 2016, which is
below the direct risk to current balance ratio at 5.5 years. The
peak of refinancing is in 2019 when the total outstanding amount
of the region's bank loans (RUB15.2 billion) should be refinanced
or rolled-over. The refinancing needs for 2017 are limited by
RUB2.9 billion, or 8% of the total debt stock, which are more
than 10x covered by the available liquidity resources.

The region's liquidity position further improved to RUB4.6
billion as of 1 January 2017 from RUB3.4 billion one year before.
As of
April 1, 2017 the unutilised revolving credit lines with banks
amounted to RUB30.3 billion, of which RUB21.2 billion stretches
until 2019.

Stavropol's socio-economic profile is historically weaker than
that of the average Russian region. Its economy is dominated by
agriculture, food processing and the chemical industry. Its GRP
per capita was 66% of the national median in 2015. The region's
administration expects the local economy will start to recover
gradually from 2017 after a period of contraction in 2015-2016.
This trend is close to Fitch's expectation for the broader
Russian economy, which shrunk by 0.2% in 2016 before growing by a
projected 1.3%-2% in 2017-2018.

Russia's institutional framework for sub-nationals is a
constraint on the region's ratings. Frequent changes in both the
allocation of revenue sources and the assignment of expenditure
responsibilities between the tiers of government limit
Stavropol's forecasting ability and negatively affect the
region's strategic planning, and debt and investment management.

RATING SENSITIVITIES

Maintenance of sound operating performance, coupled with an
extension of the debt repayment profile leading the debt payback
towards the weighted average debt maturity could lead to an
upgrade.

Consistently weak operating balance that is insufficient to cover
interest expense, coupled with an increase in direct risk above
60% of current revenue, would lead to a downgrade.


TVER REGION: Fitch Affirms 'BB-/B' IDRs, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Russian Tver Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'BB-' with Stable Outlooks and Short-Term Foreign-Currency IDR at
'B'. The region's outstanding senior unsecured domestic bonds
have been affirmed at 'BB-'.

KEY RATING DRIVERS

The ratings reflect the Fitch's expectation that Tver will
maintain a satisfactory operating performance, after a notable
improvement in 2015-2016 following a period of high volatility,
and moderate debt, albeit short-term, exposing the region to
annual refinancing pressure. The ratings also take into account
the modest size of the local economy, which decelerated following
the national economic downturn and a weak institutional framework
for Russian sub-nationals.

Fitch projects Tver's operating balance at 6%-8% of operating
revenue in 2017, which will comfortably covers its interest
payment. In 2016 the region recorded a sound operating balance of
about 10% for the second year running, which is a notable
improvement with to the weak performance in 2011-2014. This was
driven by the administration's tight cost control leading to
almost unchanged operating expenditure amid continuous growth of
operating revenues. Fitch projects an acceleration of operating
expenditure growth in 2017, driven by several expenditure items
shifted from the previous years. Opex growth will likely overtake
operating revenue growth in 2017, which remains fragile due to
the slow pace of economic recovery.

The region recorded a significant RUB4.4 billion (8.6% of total
revenue) budget surplus in 2016 due to the postponement of large-
scale capital expenditure until the next financial year, while an
earmarked capital grant was already received from the federal
government. Following this, Fitch expects significant growth of
capex in 2017, which will lead to a budget deficit of about 5% of
total revenue. However, the deficit will be fully covered by
outstanding cash, limiting any debt increase. In general the
region's expenditure flexibility is limited, as the scope for
capex reduction is almost exhausted, with the share of capital
outlays decreasing below 10% of total spending in 2015-2016.

Fitch expects the region will continue the trend of debt
reduction from its peak of 63% of current revenue in 2013-2014
and direct risk will stabilise at 50%-55% in the medium term.
This will be supported by the administration's commitment to
reach a balanced budget in 2018-2019 and to stabilise debt stock
in nominal terms. The region has no outstanding guarantees and
public sector entities' debt does not pose any pressure to the
budget.

As with most Russian regions, Tver is exposed to refinancing
pressure as 95% of its direct risk matures in 2017-2019. High
refinancing risk is mitigated by the large proportion of budget
loans (58% of outstanding loans as of 1 January 2017) at near-
zero interest rate. For 2017 the region has contracted a new
RUB4.9 billion loan from the federal budget and also gets access
to short-term treasury facilities up to RUB3.7 billion. Fitch
expects the region will manage to refinance maturing market debt
with new bank loans in 2017. However, overall refinancing
pressure will persist in the medium term due to the short-term
debt repayment profile.

Tver has a modest economic profile with GRP per capita at 80% of
the national median in 2015. According to preliminary estimates,
Tver's GRP demonstrated marginal 0.4% yoy growth in 2016,
following two years of economic recession. Fitch expects a
moderate recovery of the national economy at 1.4% yoy in 2017
(2016: -0.2%) and the region's economy will likely follow this
trend in 2017-2019. The region's economy is well-diversified,
despite its moderate size, with a focus on electric power
generation, machine building, transport, agriculture and food
processing. Its tax base is fairly broad, with the largest 10
taxpayers accounting for about 23% of tax revenue in 2016.

Russia's institutional framework for sub-nationals is a
constraint on the region's ratings. It has a shorter record of
stable development than many of its international peers. The
predictability of Russian LRGs' budgetary policy is hampered by
frequent reallocation of revenue and expenditure responsibilities
within government tiers.

RATING SENSITIVITIES

Consolidation of the operating balance close to 10% of operating
revenue and debt payback ratio (direct risk-to-current balance)
at around 10 years on a sustained basis could lead to an upgrade.

Inability to maintain a positive operating balance on a sustained
basis or an increase in direct risk above 80% of current revenue
could lead to a downgrade.


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


BANCO BILBAO: Fitch Affirms 'BB' Preference Shares Rating
---------------------------------------------------------
Fitch Ratings has affirmed Spain-based Banco Bilbao Vizcaya
Argentaria, S.A.'s (BBVA) Long-Term Issuer Default Rating (IDR)
at 'A-' and its Viability Rating (VR) at 'a-'. The Outlook on the
Long-Term IDR is Stable.

In addition, Fitch has assigned an 'A-(dcr)' Derivative
Counterparty Ratings (DCR) to BBVA as part of its roll-out of
DCRs to significant derivative counterparties in western Europe
and the US. DCRs are issuer ratings and express Fitch's view of
banks' relative vulnerability to default under derivative
contracts with third-party, non-government counterparties.

KEY RATING DRIVERS
IDRS, VR, DCR AND SENIOR DEBT

BBVA's Long-Term IDR and VR are one notch above Spain's sovereign
rating (BBB+/Stable), reflecting diversification benefits from
the bank's solid retail franchises in several countries outside
Spain, namely Mexico, Turkey, the US and a number of South
American countries. The VR also factors in the bank's modest risk
appetite, weaker, albeit improving, asset quality metrics
relative to peers, satisfactory capitalisation and resilient
earnings generation.

BBVA's risk profile is nevertheless correlated to that of the
Spanish sovereign, as reflected in sensitivity of the group's
performance and asset quality to the economic environment in
Spain. The bank's cost of market funding and the stability of the
investor base are also typically influenced by perceptions of
sovereign risk.

Asset quality metrics are weaker than peers because of its
exposure to Spain and emerging markets. Better economic
conditions in Spain are helping the group to digest its stock of
problem assets (NPLs and foreclosed assets), a large portion of
which was integrated upon the acquisitions in 2012 and 2015 of
two banks that received state support. At end-2016, Fitch
calculates that the problem asset ratio stood at a still
relatively high 6.6%, although it decreased from 7.3% a year
earlier. At end-March 2017, the NPL ratio improved to 4.8% and
Fitch expects the positive asset quality trend to continue in
2017, mainly driven by improvements in Spain.

The group's profitability has been fairly stable over the
business cycle thanks to the geographical diversification and
retail banking focus. Wider margins in emerging economies and
good cost controls helped to absorb higher loan impairment
charges over the past few years and to maintain strong internal
capital generation capacity. Fitch expects profitability to be
resilient in 2017, as economic improvements in Spain should
offset the headwinds from deteriorating operating environments in
emerging markets and some potential foreign currency exchange
volatility in the income statement.

BBVA's capitalisation is broadly commensurate with its risk
profile, with solid buffers above minimum regulatory
requirements. However, given its strong presence in emerging
markets, its capital levels could be more volatile relative to
international peers. At end-March 2017, the bank reported fully
loaded CET1 and leverage ratios of 11% and 6.6%, respectively.

BBVA's funding profile is stable, as it benefits from solid
retail deposit franchises in its core markets. The international
subsidiaries have no material funding imbalances. The group is a
regular issuer in local and international wholesale debt markets
and has an adequate liquidity position.

Fitch has also assigned a DCR to BBVA since the bank has
significant derivatives activity and is swap counterparty to
Fitch-rated structured finance transactions. The BBVA's DCR is at
the same level as the Long-Term IDR because, in Spain, derivative
counterparties have no preferential legal status over other
senior obligations in a resolution scenario.

SUPPORT RATING AND SUPPORT RATING FLOOR

BBVA's Support Ratings (SR) of '5' and Support Rating Floors
(SRF) of 'No Floor' reflect Fitch's belief that senior creditors
of the bank can no longer rely on receiving full extraordinary
support from the sovereign in the event that the bank becomes
non-viable. The EU's Bank Recovery and Resolution Directive
(BRRD) and the Single Resolution Mechanism (SRM) for eurozone
banks provide a framework for resolving banks that is likely to
require senior creditors participating in losses, instead of or
ahead of a bank receiving sovereign support.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by BBVA are
notched down from its VR, in accordance with Fitch's assessment
of each instrument's respective non-performance and relative loss
severity risk profiles, which vary considerably.

Subordinated (lower Tier 2) debt is rated one notch below the
bank's VR to reflect above average loss severity of this type of
debt compared with average recoveries (one notch). Upper Tier 2
debt is rated three notches below the bank's VR to reflect above
average loss severity of this type of debt compared with average
recoveries (one notch) and high risk of non-performance (two
notches) as there is the option to defer coupons if the issue
reported losses in the last audited accounts.

Preferred shares are rated five notches below the bank's VR to
reflect higher loss severity risk of these securities when
compared with average recoveries (two notches from the VR), as
well as high risk of non-performance (an additional three
notches) due to profit test for legacy issues and fully
discretionary coupon payments for recent issues.

RATING SENSITIVITIES
IDRS, VR, DCR AND SENIOR DEBT

The Stable Outlook reflects Fitch expectations that the group's
overall credit profile will remain stable in the foreseeable
future. Currently, BBVA's VR (and hence its IDRs) is capped at
one notch above Spain's sovereign rating. However, a Spanish
sovereign upgrade would not automatically trigger a VR upgrade
given the group's material exposures to emerging markets such as
Turkey, Mexico and Latin America. A stabilisation of key emerging
markets combined with a Spanish sovereign upgrade could be
ratings positive, if accompanied by better asset quality metrics.

A downgrade of Spain's sovereign rating would trigger a downgrade
of the bank's VR. Downward rating pressure could also arise from
sharp asset quality deterioration or a substantial weakening of
earnings, which Fitch views as unlikely.

For the senior notes and the DCR to achieve a one-notch uplift
from the Long-Term IDR, the buffer of qualifying junior debt and
non-preferred senior debt would need to exceed Fitch estimates of
a 'recapitalisation amount'. This amount is likely to be around
or above the bank's minimum pillar 1 total capital requirement.

SUPPORT RATING AND SUPPORT RATING FLOOR
Any upgrade of the SRs and upward revision of the SRFs would be
contingent on a positive change in the sovereign's propensity to
support its banks. While not impossible, this is highly unlikely,
in Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by Banco BBVA
are primarily sensitive to any change in their VRs. Upper Tier 2
notes and preferred shares are also sensitive to Fitch changing
its assessment of the probability of their non-performance
relative to the risk captured in the banks' VRs.

The rating actions are:

BBVA
Long-Term IDR: affirmed at 'A-'; Outlook Stable
Short-Term IDR: affirmed at 'F2'
VR: affirmed at 'a-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Derivative Counterparty Rating: assigned at 'A-(dcr)'
Senior unsecured debt long-term rating: affirmed at 'A-'
Senior unsecured debt short-term rating and commercial paper:
affirmed at 'F2'
Subordinated debt: affirmed at 'BBB+'
Upper Tier 2 debt: affirmed at 'BBB-'
Preference shares: affirmed at 'BB'

BBVA Capital Finance, S.A. Unipersonal
Preference shares guaranteed by BBVA: affirmed at 'BB'

BBVA International Preferred, S.A. Unipersonal
Preference shares guaranteed by BBVA: affirmed at 'BB'

BBVA Senior Finance, S.A. Unipersonal
Senior unsecured debt long-term rating: affirmed at 'A-'
Senior unsecured debt short-term rating and commercial paper:
affirmed at 'F2'

BBVA U.S. Senior, S.A. Unipersonal
Commercial paper guaranteed by BBVA: affirmed at 'F2'

BBVA Subordinated Capital, S.A. Unipersonal
Subordinated debt guaranteed by BBVA: affirmed at 'BBB+'


FTPYME BANCAJA 3: Fitch Affirms 'CC' Rating on Class D Notes
------------------------------------------------------------
Fitch Ratings has upgraded FTPYME Bancaja 3 FTA's notes as
follows:

Class C (ISIN ES0304501044): upgraded to 'BBB+sf' from 'Bsf';
Outlook Positive
Class D (ISIN ES0304501051): affirmed at 'CCsf'; Recovery
Estimate 80% revised from 0%

FTPYME Bancaja 3, FTA is a static cash flow SME CLO originated by
Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja), now
part of Bankia S.A. (BBB-/Stable/F3). The note proceeds were used
to purchase a EUR900 million portfolio of secured and unsecured
loans granted to Spanish small and medium enterprises.

KEY RATING DRIVERS

Delinquencies over 90 and 180 days remained stable during the
past year and represented 2.2% and 1.9% of the portfolio,
respectively, according to the March 2017 report. These
delinquency levels are in line with the delinquencies at the last
annual review. Cumulative defaults since closing increased by
EUR148,720 and there are currently EUR8.5 million defaults in the
portfolio. Fitch has revised the annual average expected
probability of default to 3.9% from 4.7% due to a decline in
delinquencies over the past three years.

The deleveraging of the portfolio and stable performance allowed
the class C notes to repay by EUR7.5 million, while the
EUR850,000 principal deficiency ledger (PDL) balance was paid in
full over the year. The reserve fund had accumulated EUR297,000
since the PDL balance was paid. Consequently, the credit
enhancement available for the class C notes increased
substantially to 71.9% from 39.9%.

Obligor concentration in the portfolio is high and has increased
since the last annual review, as the transaction deleveraged. The
largest performing obligor in the portfolio represents 10% of the
performing portfolio balance and the largest 10 obligors 41.1%,
up from 6.8% and 36.6% at the last review, respectively. In
addition, obligors accounting for more than 0.5% each represent
78.7% of the performing balance, up from 71.7% at the last annual
review.

A default of the largest obligors could undermine the capacity of
the transaction to repay the notes. Therefore, Fitch tested the
sensitivity of the most senior notes to the default of the
largest 10 obligors in the portfolio, with the result that the
class C notes cannot withstand rating stresses above 'BBB+sf'.

The class D notes have been affirmed at 'CCsf' as the notes are
only partially backed by performing collateral and will otherwise
rely on recoveries.

RATING SENSITIVITIES

Increasing the default probabilities assigned to the underlying
obligors by 25%, or decreasing the recovery rates assigned, would
not affect the rating of any of the notes.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.
- Loan-by-loan data provided by Europea de Titulizacion as of
   February 28, 2017

- Transaction reporting provided by Europea de Titulizacion as
   of March 31, 2017


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


UKRAINE: Fitch Affirms B- Long-Term IDRs, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Ukraine's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'B-' with a
Stable Outlook. The issue ratings on Ukraine's senior unsecured
foreign- and local-currency bonds have also been affirmed at 'B-'
and the sovereign's short-term senior unsecured local currency
bonds at 'B'. The Country Ceiling has been affirmed at 'B-' and
the Short-Term Foreign-Currency and Local-Currency IDRs at 'B'.

KEY RATING DRIVERS

Ukraine's ratings balance weak external liquidity, a high public
debt burden and structural weaknesses, in terms of a weak banking
sector, institutional constraints and geopolitical and political
risks, against improved policy credibility and coherence, the
sovereign's near-term manageable debt repayment profile and a
track record of multilateral support.

International reserves rose to USD16.7 billion in early April
boosted by the latest IMF disbursement (USD1 billion), and the
second instalment (EU600 million) of the EU Macro-Financial
Assistance Programme. Reserves could increase further to USD18.1
billion (3.6 months of CXP) by year-end, but Ukraine's external
buffers remain weaker than 'B' peers (4 months of CXP). Increased
exchange rate flexibility, manageable foreign-currency
commitments and moderate external imbalances mitigate near-term
pressures on international reserves. FX controls still cushion
external liquidity, although they have been gradually reduced.

The continuation of the Fund programme (third review completed)
is positive for Ukraine's credit profile, as it supports external
financing, underpins confidence and provides reform momentum.
However, further disbursements from the IMF and other
international partners will depend on progress in the structural
reform agenda, which is subject to delays and execution risks.
Key reforms benchmarks include pensions, land sales,
privatisation and progress in the fight against corruption.

External debt repayments to multilateral and bilateral creditors
are manageable, and external market debt amortisations resume
only in 2019. Domestic debt roll-over risk is limited, as the
majority of the debt stock is held by the central bank (58%) and
state-owned banks. Some USD900 million in cash in Ukraine's
treasury provides the sovereign with space to bridge gaps in
external disbursements in the short term. Increased access to
external financing will be key to meet restructured debt
commitments starting in 2019.

A trade blockade with occupied territories in the East will
result in wider current account deficits and lower growth. The
current account deficit is expected to widen to 4.3% of GDP in
2017-2018 from 3.6% in 2015 due to reduced exports of steel and
increased demand for energy imports (coking coal). Improved
commodity export prices and increased export volumes from the
agricultural sector should mitigate the increase in the trade
deficit.

Ukraine's 2016 GDP growth of 2.3% surpassed expectations, but the
blockade will negatively impact the mining, metallurgical and
electricity sectors. Fitch forecast growth to decelerate to 2% in
2017 before picking up to 3% in 2018 on the back of improving
consumer demand and investment.

Annual headline inflation increased to 15.1% in March, while core
inflation has averaged 6.3% since September 2016. Average
inflation is forecast to decline to 11.2% in 2017, down from
14.9% in 2016 but still well above the 5.3% 'B' median. In
Fitch's view, the National Bank of Ukraine's (NBU) institutional
commitment to sustainably lowering inflation while maintaining
exchange rate flexibility, and continued coordination with fiscal
policy to improve macroeconomic stability are important support
factors for Ukraine's credit profile.

The general government deficit is projected to increase to 3% of
GDP (the target in the IMF program) in 2017. Adhering to the
deficit reduction path outlined in the IMF EFF (2.5% and 2.3% of
GDP in 2018 and 2019, respectively) will likely require
additional policy measures due to spending pressures, most
notably pension transfers and the public sector salary bill.
Defence spending will remain high at 5% of GDP over the forecast
period.

General government debt rose to 72% of GDP (84% including
guarantees) in 2016, substantially above the 56% 'B' median,
partly reflecting the recapitalisation bill for Privatbank, which
is forecast to add 5.6% of GDP to the country's debt burden. Debt
dynamics remain subject to currency risks (68% FX denominated).

After the nationalisation of Privatbank, state-owned banks'
(SOBs) share of the banking sector rose to 50% of total system
assets. Since 2015, the government has issued UAH151.5 billion
(6.6% of GDP) to capitalise SOBs. The NBU has resolved 92 banks
since 2014, bringing down the system's total to 93. The NBU has
reviewed the assets of 95% of the banking sector. The banking
sector has stabilised. Nevertheless, low capitalisation levels
and non-performing loans of over 50% of total loans pose risks to
macro stability and constrain economic recovery.

In late March, the UK High Court rejected Ukraine's request for a
full trial on the USD3 billion outstanding debt dispute with
Russia. Ukraine will appeal and the Court has granted a stay on
enforcing Russia's claim. Fitch expects the dispute resolution
process to be complex and protracted, but assumes that it will
not affect Ukraine's ability to access external financing and
service its debt commitments.

The unresolved conflict in eastern Ukraine remains a risk for
overall macroeconomic performance and stability. In addition to
continued clashes, the government decided to suspend trade with
the Non-Government Controlled Area in the aftermath of protest
from veterans and politicians against trade with this area and
separatists' seizure of Ukrainian assets.

The IMF programme continues to face risks of reform fatigue and
execution delays. The government of Prime Minister Volodomyr
Groysman does not currently face risks to governability, but an
early start of the electoral season for the 2019 general
elections could further slow reform momentum.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Ukraine a score equivalent to a
rating of 'CCC' on the Long-Term FC IDR scale.

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

Macro: +1 notch, to reflect Ukraine's strengthened monetary and
exchange rate policy which will likely support improved
macroeconomic performance and domestic confidence. Increased
exchange rate flexibility allows the economy to absorb shocks
without depleting reserves.

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

RATING SENSITIVITIES

The Stable Outlook reflects Fitch's assessment that upside and
downside risks to the rating are currently balanced. Nonetheless,
the following risk factors could, individually or collectively,
trigger negative rating action:

   - Re-emergence of external financing pressures, loss of
confidence and increased macroeconomic instability, for example
stemming from delays to disbursements from, or the collapse of,
the IMF programme.

   - External or political/geopolitical shock that weakens
macroeconomic performance and Ukraine's fiscal and external
position.

The following risk factors could individually or collectively,
trigger positive rating action:

   - Increased external liquidity and external financing
flexibility.

   - Sustained fiscal consolidation leading to improved debt
dynamics.

   - Improved macroeconomic performance.

KEY ASSUMPTIONS
Fitch expects neither resolution of the conflict in eastern
Ukraine nor escalation of the conflict to the point of
compromising overall macroeconomic performance.

Fitch assumes that the debt dispute with Russia will not impair
Ukraine's ability to access external financing and meet external
debt service commitments.


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


CLEEVE LINK: County Pays Previous Staff's Wages After Liquidation
-----------------------------------------------------------------
Worcester News reports that former staff at a home care company
have been given a timely boost after council chiefs paid their
outstanding wages.

Cleeve Link staff have been battling to receive their wages for
February and the first week of March ever since the provider went
into voluntary liquidation on March 7, according to Worcester
News.

The report discloses that Worcestershire County Council staff
have now paid the staff in the county their wages.

The council's actions follow in the footsteps of Gloucestershire
County Council, who paid the former staff at Cleeve Link in
Gloucestershire their wages, the report notes.

Staff are now working at TLC Home Care Services in Evesham, the
report relays.

The report discloses that Worcestershire County Council
spokesperson said: "The staff that were left without pay,
following the collapse of Cleeve Link, have contacted
Worcestershire County Council and, in acknowledgement of the
financial hardship caused by their situation, we have offered to
make a payment of the amount requested to them.

"We've been in conversation with their new employer and the money
will be paid to them in due course."

The report relays that Corina Moldovan, a former staff member at
Cleeve Link and based in Evesham had told how repeated calls to
the liquidator for the company to receive wages had fallen on
deaf ears.

The report discloses that she said: "I phoned the liquidator, and
he said that our wages cannot be paid as they do not have access
to files showing how much we have worked, even though I still
have my schedule for that month.

"They did not give any notice of closure, they just closed their
phones and offices.

"The liquidator claimed that he didn't have access to Cleeve Link
files and they don't know how many hours we worked. It's easy to
see our schedules as we still have our rotas and also to phone
the clients to check that we worked."


COPPOLA RISTORANTE: Goes Into Administration
--------------------------------------------
Storm Rannard at Insider Media reports that two businesses which
operate a number of popular eateries in Warwickshire have gone
into administration.

Matt Hardy -- matth@poppletonandappleby.co.uk -- and Andy Turpin
-- andyt@poppletonandappleby.co.uk -- of Poppleton & Appleby have
been appointed joint administrators of Coppola Ristorante Ltd,
which trades as Bar Angeli, Corleoni Caffe and La Coppola, and
Parssa Ltd, which trades as Micatto, according to Insider Media.

Micatto launched on Warwick's Market Place in 2012 while the
other venues occupy units on Regent Street and Livery Street in
Leamington Spa.

According to Companies House, both businesses share the same
directors -- Charlotte and Parham Ahmadi, the report relays.

A statement from the administrators said: "No redundancies have
been made, and the joint administrators have made arrangements to
ensure that all the outlets are continuing to trade as normal,"
the report notes.


LONDON AND ST. LAWRENCE: Placed Into Voluntary Liquidation
----------------------------------------------------------
BFN News reports London and St Lawrence Investment Company (LSLI)
has been placed into members' voluntary liquidation after
shareholders passed the requisite resolutions at the General
Meeting.  James Eldridge -- james.eldridge@moorestephens.com --
and Jeremy Willmont -- Jeremy.willmont@moorestephens.com -- both
of Moore Stephens LLP, have been appointed as liquidators.


MILLCLIFFE LTD: In Administration, Burger King Jobs at Risk
-----------------------------------------------------------
Pete Hughes at Oxford Times reports that jobs at a Burger King in
Banbury could be at risk after the company which runs the
franchise went into administration, it has been reported.

Several media outlets have reported that Millcliffe Ltd and CPL
Foods Ltd, which run a total of 36 Burger Kings across the UK
including the one at Castle Quay shopping centre, went into
administration this month, according to Oxford Times.

The report discloses that Scottish business advisory firm Alix
Partners is reportedly managing those firms' affairs.

A member of staff at the Banbury Burger King said that workers
had been told not to answer media enquiries on the subject, the
report notes.

The report says it is not known how many staff the restaurant.


PRECISE MORTGAGE 2017-1B: Moody's Rates GBP8.7MM Cl. E Notes Ba2
----------------------------------------------------------------
Moody's Investor Service has assigned definitive long-term credit
ratings to Notes issued by Precise Mortgage Funding 2017-1B PLC:

-- GBP252,000,000 Class A Mortgage Backed Floating Rate Notes
    due March 2054, Definitive Rating Assigned Aaa (sf)

-- GBP13,500,000 Class B Mortgage Backed Floating Rate Notes due
    March 2054, Definitive Rating Assigned Aa1 (sf)

-- GBP13,500,000 Class C Mortgage Backed Floating Rate Notes due
    March 2054, Definitive Rating Assigned A1 (sf)

-- GBP7,500,000 Class D Mortgage Backed Floating Rate Notes due
    March 2054, Definitive Rating Assigned Baa1 (sf)

-- GBP8,700,000 Class E Mortgage Backed Floating Rate Notes due
    March 2054, Definitive Rating Assigned Ba2 (sf)

Moody's has not assigned ratings to the GBP 4,801,000 Class Z
Mortgage Backed Fixed Rate Notes due March 2054 and the Residual
Certificates.

The portfolio backing this transaction consists of first ranking
buy-to-let mortgage loans advanced to semi-professional landlords
with small portfolios secured by properties located in England
and Wales.

On the closing date Charter Court Financial Services Ltd (not
rated) has sold the portfolio to Precise Mortgage Funding 2017-1B
PLC.

Please note that on March 22, 2017, Moody's released a Request
for Comment, in which it has requested market feedback on
potential revisions to its Approach to Assessing Counterparty
Risks in Structured Finance. If the revised Methodology is
implemented as proposed, the Credit Rating on Precise Mortgage
Funding 2017-1B may be affected. Please refer to Moody's Request
for Comment, titled "Moody's Proposes Revisions to Its Approach
to Assessing Counterparty Risks in Structured Finance," for
further details regarding the implications of the proposed
Methodology revisions on certain Credit Ratings.

RATINGS RATIONALE

The rating takes into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement (CE) and the portfolio expected loss, as
well as the transaction structure and legal considerations. The
expected portfolio loss of 2% and the MILAN CE of 13% serve as
input parameters for Moody's cash flow model and tranching model,
which is based on a probabilistic lognormal distribution.

The portfolio expected loss is 2.0%: which is marginally higher
than other comparable buy-to-let transactions in the UK mainly
due to: (i) the originators' limited historical performance, (ii)
the current macroeconomic environment in the UK, (iii) the low
weighted-average seasoning of the collateral of 0.5 years; and
(iv) benchmarking with similar UK buy-to-let transactions.

The portfolio MILAN CE is 13.0%: which is marginally higher than
other comparable buy-to-let transactions in the UK mainly due to:
(i) a weighted average current LTV of 72.0%; (ii) around 95.35%
of the pool being interest-only loans; (iii) the originators'
limited historical performance and (iv) benchmarking with other
UK buy-to-let transactions.

At closing the mortgage pool balance will consist of GBP 300.0
million of loans. An amortizing reserve fund will be funded to
2.0% of the aggregate principal amount outstanding of the rated
notes as of the closing date. Within the reserve fund an amount
equal to 2.0 of Class A and Class B notes outstanding principal
amount will be dedicated to provide liquidity to Class A and
Class B notes. Moreover, the Class A and B notes benefit from
principal to pay interest mechanism.

Operational Risk Analysis: Charter Court Financial Services Ltd
("CCFS", not rated) will be acting as servicer. In order to
mitigate the operational risk, there will be a back-up servicer
facilitator, Intertrust Management Limited (not rated), and
Elavon Financial Services DAC, (Aa2/P-1) acting through its UK
Branch will be acting as an independent cash manager from close.
To ensure payment continuity over the transaction's lifetime the
transaction documents incorporate estimation language whereby the
cash manager can use the three most recent servicer reports to
determine the cash allocation in case no servicer report is
available.

Interest Rate Risk Analysis: The transaction will benefit from a
swap provided by Lloyds Bank Plc (Aa3(cr)/P-1(cr)). Under the
swap agreement during the term of the life of the fixed rate
loans the issuer will pay a fixed swap rate of 0.686% and on the
other side the swap counterparty will pay three-month sterling
Libor.

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes. In Moody's opinion the
structure allows for timely payment of interest for Class A notes
and Class B notes, ultimate payment of interest on or before the
rated legal final maturity date for Class C to E notes and
ultimate payment of principal at par on or before the rated final
legal maturity date for all rated notes. Moody's ratings only
address the credit risk associated with the transaction. Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

The analysis undertaken by Moody's at the initial assignment of
the ratings for RMBS securities may focus on aspects that become
less relevant or typically remain unchanged during the
surveillance stage.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 2.0% to 6.0% of current balance, and the MILAN
CE was increased from 13.0% to 15.6%, the model output indicates
that the Class A notes would still achieve Aaa(sf) assuming that
all other factors remained equal. Moody's Parameter Sensitivities
provide a quantitative/model-indicated calculation of the number
of rating notches that a Moody's structured finance security may
vary if certain input parameters used in the initial rating
process differed. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might migrate over time, but rather how the initial rating of the
security might have differed if key rating input parameters were
varied. Parameter Sensitivities for the typical EMEA RMBS
transaction are calculated by stressing key variable inputs in
Moody's primary rating model.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.


PRECISE MORTGAGE 2017-1B: Fitch Assigns BB+ Rating to Cl. E Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Precise Mortgage Funding 2017-1B Plc's
notes final ratings as follows:

GBP252,000,000 Class A: 'AAAsf'; Outlook Stable
GBP13,500,000 Class B: 'AAsf'; Outlook Stable
GBP13,500,000 Class C: 'Asf'; Outlook Stable
GBP7,500,000 Class D: 'BBB+sf'; Outlook Stable
GBP8,700,000 Class E: 'BB+sf'; Outlook Stable
GBP4,801,000 Class Z: Not rated

This transaction is a securitisation of buy-to-let (BTL)
mortgages that were originated by Charter Court Financial
Services (CCFS), trading as Precise Mortgages (Precise or the
originator), in England and Wales.

KEY RATING DRIVERS

BTL Loan Composition Increases Risk
The portfolio consists exclusively of BTL loans originated by
CCFS. Fitch considers loans on BTL properties to be inherently
more susceptible to default than those secured on an owner-
occupied property. As a result, Fitch applies a 25% increase to
the foreclosure frequency for these loans.

Prime Underwriting
Fitch deemed the loans constituting the mortgage pool to be
consistent with its prime classification. These loans have been
granted to borrowers with no adverse credit, full rental income
verification and full property valuations, and with a clear
lending policy in place. The available data show robust
performance, which would be expected of prime loans. Fitch
treated these loans as prime but with an upward underwriting
adjustment of 10% to account for certain features in CCFS's
underwriting standards.

Fixed Hedging Schedule
The issuer entered into a swap at closing to mitigate the
interest rate risk arising from the fixed-rate mortgages in the
pool. The swap is based on a defined schedule, rather than the
balance of fixed-rate loans in the pool; if loans prepay or
default, the issuer will be over-hedged. The excess hedging is
beneficial to the issuer in a high interest rate scenario and
detrimental in a declining interest rate scenario.

Unrated Originator and Seller
The originator and seller are not rated entities and therefore
may have limited resources available to repurchase any mortgages
if there is a breach of the representations and warranties (RW)
given to the issuer. This is a weakness, but there are a number
of mitigating factors that make the likelihood of a RW breach
remote, such as the clean agreed-upon procedures report provided.

RATING SENSITIVITIES

Material increases in the frequency of defaults and loss severity
on defaulted receivables producing losses greater than Fitch's
base case expectations may result in negative rating action on
the notes. Fitch's analysis showed that a 30% increase in the
weighted average foreclosure frequency, along with a 30% decrease
in the weighted average recovery rate, would imply a downgrade of
the class A notes to 'AA-sf' from 'AAAsf'.

DATA ADEQUACY

Fitch reviewed the results of a third-party assessment conducted
on the asset portfolio information, and concluded that there were
no findings that affected the rating analysis.

Fitch conducted a review of a small targeted sample of CCFS's
origination files and found the information contained in the
reviewed files to be adequately consistent with the originator's
policies and practices and the other information provided to the
agency about the asset portfolio.
Overall, Fitch's assessment of the asset pool information relied
on for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.
- Loan-by-loan data provided by CCFS as at April 20, 2017
- Loan performance data provided by CCFS as at February 28, 2017


SAGA PLC: Moody's Rates Proposed GBP250MM Sr. Unsecured Bond Ba1
----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 debt rating to Saga
Plc's proposed GBP250 million backed senior unsecured bond
instrument. The outlook on Saga plc is stable.

Saga is a UK based group, listed on the London Stock Exchange,
providing a range of branded products to the over-50s consumer
segment. Saga's core products within the group's insurance
business include home, motor, travel and private medical
insurance, and the travel business include tour and cruise
holidays.

RATINGS RATIONALE

   -- DEBT AND PROBABILITY OF DEFAULT RATINGS --

The Ba1 rating of the proposed senior unsecured bond, which ranks
pari passu with the proposed senior unsecured bank loan and
senior unsecured revolving credit facility, is in line with the
Ba1 corporate family rating (CFR) and the existing rating of the
secured bank credit facility, which are being refinanced. The Ba1
rating also reflects the relatively small amount of obligations,
including the super senior pension liabilities, which rank ahead
of the bond instruments and bank loans. Incorporated into Moody's
analysis is also the future ship financing of GBP245 million
expected from July 2019.

Moody's expects the proceeds of the new senior unsecured bond and
bank facilities will be used to refinance the existing GBP380
million senior secured term loan and GBP100 million drawn under
Saga's revolving credit facility, with no material impact on the
Group's leverage position or earnings coverage on interest.

The bonds benefit from a guarantee from Saga Services Limited,
the Group's insurance broking entity and Saga MidCo Ltd, an
intermediate holding company, which collectively account for
around 51% of the Group's consolidated EBITDA for the 12 months
to January 31, 2017, and 174% of consolidated net assets. There
is no guarantee provided by the regulated entities, including
Saga's underwriting and travel businesses. Saga's proposed
unsecured bank term loan and revolving facility also benefit from
these limited guarantees and will be accessible by both Saga Plc
and Saga MidCo Ltd.

Saga's PDR of Ba1-PD is now aligned with the Ba1 Corporate Family
Rating (CFR), reflecting Moody's assumption of a 50% family
recovery rate, as is customary for capital structures that
include bond instruments and bank debt.

   -- CORPORATE FAMILY RATING --

Saga's Ba1 CFR is supported by the Group's well-established and
highly trusted affinity brand, loyal customer base and Saga's
unique route to market, and up-sale and cross-sale capabilities.
Saga also continues to deliver good levels of underlying pre-tax
profit growth, up 5% to GBP187m for the 12 months ended
January 31, 2017 (YE2017) and strong cash generation, with
available operating cash flow at GBP218 million at YE2017. The
company has also reduced its reported net debt-to-EBITDA to 1.9x
as at January 31, 2017, which is now within the Group's target
range of 1.5-2.0x ahead of plans. Offsetting these benefits to a
certain extent is Saga's limited scale and relatively modest
share of both the UK personal insurance market and travel
industry, even within its target over-50s customer segment.

Moody's acknowledges that the new cruise ship "The Spirit of
Discovery", which is expected to become operational in mid-2019,
will reposition Saga's travel business with the potential to
generate significant contributions to Group EBITDA. However, the
agency is also mindful of the operational risks associated with
this GBP280 million investment, particularly if the ship is
delayed or if the expected revenue and cost benefits fall short
of expectations or take longer to materialize.

   -- OUTLOOK --

The stable outlook reflects Moody's expectation that over the
coming 12-18 months, the Group will continue to expand its
footprint and grow its profitability and operating cash flows
within its retail insurance broking and travel businesses, whilst
controlling its risk profile within its underwriting portfolio.

The agency also expects Saga to continue investing in future
growth, including personal finance, healthcare, retirement
villages and the acquisition of the new cruise ship, due for
delivery in mid-2019, with an option to purchase a second similar
ship for delivery in late 2020/early 2021. With regard to the new
cruise ship, Moody's believes there is a high risk that the
related financing loan will increase Saga's debt-to-EBITDA ratio
above the agency's downgrade trigger of 3.0x, particularly should
the Group exercise its option to build a second ship. However,
incorporated into the Ba1 CFR is the expectation that this would
be a temporary increase and that EBITDA growth, together with
strong cash flows, will enable the Group to quickly deleverage.

WHAT COULD CHANGE THE RATING UP / DOWN

Moody's says the following factors could put upward pressure on
Saga's ratings: (1) continued growth in Saga's share of the UK
personal line insurance market whilst maintaining strong
underwriting or broking EBITDA margins; (2) net profit margins
consistently above 10%; (3) meaningful growth in travel pre-tax
profits in line with the Group's target increase of 4-5x over the
next 5 years, particularly following the launch of the Group's
new ship; and/or (4) net debt-to-EBITDA remaining in Saga's 1.5x-
2x target on a long-term sustainable basis, including the
financing of the Group's new ship.

Downward rating pressure could develop in the event of: (1) gross
debt-to-EBITDA above 3x for a prolonged period; (2) a material
deterioration in profitability, reflected in EBTIDA margins
consistently below 20% or Net Profit Margins below 8%; (3)
adverse loss development driving a material deterioration in
Saga's combined operating ratio; (4) the Group's market share
reducing significantly in its core lines of business; and/or (5)
anticipated revenue and cost benefits associated with Saga's new
ship and/or insurance initiatives falling materially short of
Group targets.

LIST OF ASSIGNED RATINGS

Issuer: Saga Plc

Upgrades:

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

Assignments:

  -- BACKED Senior Unsecured Regular Bond/Debenture, Assigned Ba1
    (LGD4)

Outlook Actions:

  -- Outlook, Remains Stable

In fiscal year ended January 31, 2017, Saga reported revenues
from continued operations of GBP871.3 million (YE2016: GBP963.2
million) and profit before tax from continued operations of
GBP193.3 million (YE16: GBP176.2 million). Saga Plc reported
total equity of GBP1,195.2 million and total assets of GBP2,698.8
million as at January 31, 2017.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in December 2015.


TATA STEEL: Liberty to Add Jobs at Specialty Steels Operations
--------------------------------------------------------------
Alan Tovey at The Telegraph reports that Britain's steel industry
has been given a vote of confidence with a pledge to create
hundreds of new jobs at a business sold by Tata.

Industrials and commodities group Liberty House has said it will
add 300 roles at the speciality steels operations it is has
bought from Tata, The Telegraph relates.

The new jobs were revealed as Liberty and Tata completed the
GBP100 million deal that will protect the existing 1,700 staff at
the business's main sites in Rotherham, Stocksbridge and
Brinsworth in South Yorkshire, smaller operations in Bolton,
Lancashire, and Wednesbury, West Midlands, and distribution
centers in China, The Telegraph relays.

According to The Telegraph, Liberty, headed by entrepreneur
Sanjeev Gupta, said it would invest GBP20 million in the first
year of its ownership the business, which will be renamed Liberty
Speciality Steels, with plans to increase production to 1m tonnes
a year.

The business supplies high-value steel that is used in the
automotive, aerospace and energy industries, The Telegraph notes.

The purchase comes after Tata started a wholesale disposal of its
loss-making UK steel businesses -- including the giant Port
Talbot plant -- last year as the crisis in the UK steel industry
resulted in thousands of job losses, The Telegraph states.  Tata
later did a U-turn, instead deciding to hive off parts of the
business piecemeal, The Telegraph recounts.

Tata Steel is the UK's biggest steel company.


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


* Number of B3-PD Neg. or Lower Rated EMEA Companies Falls in 1Q
----------------------------------------------------------------
The number of EMEA companies with a rating of B3-Probability of
Default (B3-PD) negative or lower fell in the first quarter from
a record high at the end of last year, mainly driven by rating
actions in the energy and metals & mining sectors, Moody's
Investors Service said in a report published April 27, 2017.

The report, "B3 Negative and Lower Ratings -- EMEA List Recedes
from Record Level in Q1 2017", is available on www.moodys.com.
Moody's subscribers can access this report using the link at the
end of this press release. The research is an update to the
markets and does not constitute a rating action.

The number of companies rated B3 negative or lower declined to 57
at the end of March 2017 from 60 at the end of 2016. In the first
three months of 2017, four new entries on the list were offset by
two upgrades, two ratings withdrawals and three defaults.

"A further fall in the number of companies on the list would
require improvements in the credit quality of energy and metals &
mining issuers and resilient trading for weaker single-B
companies, particularly in the retail, manufacturing and service
sectors," said Matteo Versiglioni, a Moody's Analyst and co-
author of the report.

The proportion of B3-PD negative and lower companies stands at
13.3% of all the speculative-grade companies that Moody's rates
in the EMEA region. That is higher than the long-term average of
11.8%, but in line with the 13.5% average recorded during the
2010-2013 period.

Recent downgrades in the retail and healthcare sectors have
resulted in an increase in the number of companies from these two
sectors in the list. These sectors now have a total of eight
issuers in the B3 negative and lower list, up from six at the end
of 2016.

While there were some actions taken in the energy and metals &
mining sectors in the first three months of 2017, which resulted
in issuers moving out of the list, these sectors continue to be
over-represented, as they make up 31.6% of the B3 negative and
lower list, despite accounting for only 15.4% of the total EMEA
speculative-grade rated universe.

Moody's expects the B3 negative and lower list to remain fairly
stable in 2017 and in line with the last six months, provided
there are no unexpected economic events.

While more stable oil and commodity prices could support positive
actions in the energy and metals & mining sectors, there are 131
single B-rated issuers on the edge of entering the list, compared
with 23 ratings that could potentially move out if performances
were to improve in the next 12 to 18 months.



                            *********

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.


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

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

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

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-
381-8268.

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