TCREUR_Public/170928.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Thursday, September 28, 2017, Vol. 18, No. 193



UNION DE BANQUES: Fitch Affirms 'bb' Viability Rating


GEORGIA: Fitch Affirms BB- Long-Term IDR, Outlook Stable


AIR BERLIN: Lufthansa to Add More Planes After Rival's Insolvency
SKW STAHL-METALLURGIE: Files for Insolvency in Munich Court
THYSSENKRUPP AG: Fitch Puts 'B' ST IDR on Rating Watch Positive


BANCA UBAE: Fitch Affirms BB Long-Term IDR, Outlook Negative


* LITHUANIA: Number of Insolvencies Rose 35.2% in 2016


GALAPAGOS HOLDING: S&P Cuts CCR to 'CCC+', Outlook to Neg.
PC ARMATURES: Files for Insolvency; 50 Staff to Lose Jobs


FIMBANK PLC: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable


BANK OTKRITIE: Maya Sudakova Named Temporary Administration Head
KOMI REPUBLIC: Fitch Affirms BB- Long-Term IDR, Outlook Stable
LOCKO-BANK: Fitch Affirms B+ Long-Term IDR, Outlook Stable
TAMBOV REGION: Fitch Withdraws BB+ Long-Term IDR, Outlook Stable
YAROSLAVL REGION: Fitch Affirms BB- Long-Term IDR, Outlook Stable


NEURON BIO: Board Agrees to File for Insolvency Proceedings


QUID PRO QUO: FINMA Shuts Down Provider of Fake Cryptocurrency


ARAP TURK: Fitch Affirms BB- Long-Term IDR, Outlook Stable


UKRAINE: Fitch Says Bond Issue Positive but IMF Funding Still Key

U N I T E D   K I N G D O M

CARILLION PLC: Middle Eastern Company Prepares Takeover Bid
MENAI VEHICLE: Director Disqualified for 10 Years



UNION DE BANQUES: Fitch Affirms 'bb' Viability Rating
Fitch Ratings has affirmed Union de Banques Arabes et Francaises'
(UBAF) Long-Term Issuer Default Rating (IDR) at 'A-', Short-Term
IDR at 'F1' and Viability Rating (VR) at 'bb'. The Outlook on the
Long-Term IDR is Stable.


The IDRs and Support Rating of UBAF are driven by potential
support from its largest shareholder, Credit Agricole Corporate
and Investment Bank (CACIB; A+/Stable; 47% shareholder), part of
Credit Agricole (CA; A+/Stable). Fitch believes that timely
financial support would be provided by CACIB in its role as
UBAF's reference shareholder, or ultimately by CA, if required.

The two-notch difference between CACIB's and UBAF's Long-Term
IDRs reflects Fitch's opinion that UBAF is of limited importance
to the parent. This takes into account UBAF's limited role in the
group and niche franchise, as well as the absence of material
synergies with CACIB. This is counterbalanced by the high
reputational risk for the parent if UBAF defaults in addition to
UBAF's small size, which would only require limited resources of
the parent in case of support.

UBAF's Short-Term IDR of 'F1', the higher of two options mapping
to an 'A-' Long-Term IDR, reflects Fitch views that, as long as
it remains a reference shareholder, CACIB will ensure that
sufficient liquidity is available at UBAF to meet its needs.

The company profile of UBAF constrains its VR given its niche
trade finance franchise focussed on flows between Europe or Asia
and its core markets in the Middle East and North Africa. The
outcome of the litigation with the US Office of Foreign Asset
Control (OFAC) relating to certain transactions recorded between
May 2009 and May 2014 that might be construed as impermissible
under US regulations may affect the bank's company profile. A
proportionate fine following UBAF's voluntary self-disclosure,
which is Fitch base case, would allow UBAF to renew business
growth. Alternatively, a large fine would be highly detrimental
to the bank's franchise. UBAF booked a EUR17 million provision at
end-2016 related to this litigation.

UBAF mainly provides letters of credit, guarantees and trade
finance-related loans. The strategy followed since 2014 was to
reduce credit risk and to improve financial security procedures.
However, the bank was able to preserve its expertise and to grow
business volume in 2016 despite continuing political turmoil in
some of its key markets, which Fitch views positively.

UBAF's profitability is a rating weakness. Its business
turnaround and litigation costs have resulted in low operating
profitability during the past three years, which Fitch does not
expects to improve over the short-term. In 2016, the increase in
volumes did not translate into additional income due to margin
pressure. The bank's main challenge will be to restore operating

UBAF's risk appetite has reduced and the bank is, in Fitch
opinions, more conservative than some of its specialist trade
finance peers. It has exited certain high-risk countries and
clients, notably in correspondent banking and aligned its risk
and reporting tools with CACIB's. UBAF's risk appetite
nevertheless remains above average due to country risk, which is
inherent to the bank's activities.

UBAF is exclusively funded by short-term interbank and corporate
deposits, mainly denominated in US dollars. The vast majority of
trade finance transactions are also short-term and denominated in
the same currency. There is little reliance on funding from
CACIB/CA other than the availability of contingency funding if

UBAF's asset quality is satisfactory. The volume of impaired
loans to customers and banks was around 3% of gross loans at end-
2016, a slight increase from previous years. In parallel, the
coverage of impaired loans by specific provisions increased to
above 90%, and above 100% when considering the bank's generic
country risk provision. Nonetheless, UBAF remains sensitive to
event risk due to asset and geographic concentrations.

UBAF's capital ratios remain acceptable, but the bank's Fitch
Core Capital ratio declined to 16.7% from close to 24% during
2016. This was mainly driven by an increase in regulatory risk-
weighted assets following the first-time application of an EU
capital requirements regulation's provision on the equivalence of
regulatory requirements in third countries. UBAF's equity base
remains small in absolute terms (end-2016 FCC: EUR337 million)
and therefore unlikely to be able to absorb material shocks
without support from the bank's shareholders.


The Stable Outlook on UBAF's Long-Term IDR mirrors that on CACIB
and CA. UBAF's IDRs and Support Rating are sensitive to a change
in CACIB's, and therefore CA's, IDRs. The ratings are also
sensitive to a change in UBAF's links to CACIB and could be
negatively affected if these weaken, for example because of a
sale or material reduction in the ownership stake.

The bank's VR could be downgraded if UBAF is unable to restore at
least acceptable underlying profitability. Sizeable operational
losses, including from an OFAC settlement, with no credible plan
for restoring capitalisation would also put the VR under
pressure. A shift toward a higher risk appetite, deterioration in
asset quality, lower capitalisation or less stringent liquidity
policies could also trigger a downgrade.

Upside for the VR is limited given the bank's narrow business
model and the challenging operating environment in the Middle
East and Africa. An upgrade would be contingent on a material
improvement in revenue generation, leading to satisfactory
profitability, while maintaining its sound risk appetite and
acceptable capitalisation.

The rating actions are:
Long-Term IDR: affirmed at 'A-'; Outlook Stable
Short-Term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Viability Rating: affirmed at 'bb'


GEORGIA: Fitch Affirms BB- Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Georgia's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' with a Stable Outlook.

Georgia's ratings balance favourable governance and business
environment indicators compared with rated peers and resilience
to recent macroeconomic shocks with weak external finances,
including large current account deficits, high net external debt
and low external liquidity.

In April the Georgian government and the IMF agreed a three-year
arrangement under the extended fund facility (EFF) for an amount
of around USD285.3 million to support the Georgian authorities'
reform agenda. The overall objectives of the programme are to
ensure fiscal consolidation over the medium-term; implementing
structural reforms aimed at improving domestic savings,
investment and competitiveness; and unlocking bilateral and
multilateral support to finance infrastructure investment and
build foreign exchange reserves.

In Fitch's view, the new IMF programme will provide an anchor to
macroeconomic policy, potentially increasing confidence in the
authorities' reform effort. At the same time, the difficulties
faced by the previous IMF programme (linked to a stand-by
agreement) are a reminder of the potential challenges posed by
multi-year programmes.

Georgia's recent macroeconomic performance has been resilient to
the shocks affecting the region. Over five years, GDP growth has
averaged 4% (BB median of 3.6%). GDP growth accelerated in 1H17
to 4.9% year-on-year, due to both an improvement in economic
conditions among Georgia's main trading partners (eurozone
countries, Turkey and Russia) and domestic demand. Fitch expects
real GDP growth to average around 4.5% this year, and similar
growth over the next two years.

Inflation has risen this year due to increased excise duties and
higher international prices for food. Inflation rose to 7.1% in
June from 1.8% in December 2016, before falling back. Fitch
expects inflation to average 5.6% this year, before falling
towards the policy target, averaging 3.5% in 2018 and 3% in 2019.

External finances remain a key rating weakness. The current
account deficit (CAD) was 13.5% of GDP in 2016, up from 12% in
2015, driven by a worsening of the primary income deficit. Fitch
expects this to unwind to some extent, so that the CAD falls to
11.3% this year. Over the next two years, Fitch expects
improvements in remittances to further shrink the CAD, to 10.2%
by 2019. Foreign direct investment (FDI) flows remain a crucial
source of funding for the CAD. In 2016, inward equity FDI
(according to IMF data) was around USD1.4 billion (around 9.6% of

Net external debt was estimated at 66% of GDP at end-2016, more
than four times the 'BB' median. Despite a favourable composition
of the debt stock, with a share of both concessional debt and
inter-company loans, estimated external debt service is
substantially higher than peers. Georgia's external liquidity
position is also weak, with FX reserves at around three months of
import cover, and a liquidity ratio below 100% (vs. BB median of
over 150%).

The budgetary process for 2018 is in its early stages. Fitch does
not currently expects significant deviations from the tax and
spending changes introduced in 2017 and the medium-term fiscal
framework underpinned by the IMF programme. Fitch expects the
deficit to narrow this year to 3.9% of GDP, from 4.1% in 2016
(against the original budgeted 3%). Current expenditure
restraint, in the context of higher public investment, is
expected to result in a fall in the spending-to-GDP ratio, and
thus a smaller deficit of 3.5% in 2018 and 3.4% in 2019.

General government debt was 44.6% at end-2016, somewhat below the
'BB' median of 51%. Fitch public finance projections envisage the
public debt ratio remaining at around 45% through 2019. Georgia
has a very high share of foreign currency-denominated debt
(around four-fifths) and its public finances are therefore
vulnerable to exchange rate shocks. However, most of the foreign-
currency debt is on concessional terms, implying moderate debt
maturities and low interest rates (the weighted average interest
on external debt is 2%).

The overall soundness of the banking sector mitigates the risks
stemming from widespread dollarisation (at around two-thirds of
bank deposits). The aggregate capital ratio was 16.5% at end-
2Q17, and levels of non-performing loans are low (3.5% of gross
loans). The Georgian authorities have introduced a strategy with
specific policies to encourage the expansion of loans and
deposits in lari. Despite a decrease in recent months, around
two-thirds of bank deposits are in foreign currency. Moreover,
Georgia scores 2* on Fitch's Macro-Prudential Indicator,
indicating moderate vulnerability from strong credit growth.

Fitch's proprietary SRM assigns Georgia a score equivalent to a
rating of 'BB' on the Long-Term Foreign Currency 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:
- External finances: -1 notch, to reflect high net external debt
(66% of GDP at end-2016, compared with the BB median of 16%),
structurally large current account deficits, and a large negative
net international investment position.

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


The main factors that could, individually or collectively,
trigger positive rating action are:
- Strong and sustainable GDP growth consistent with
   macroeconomic stability;
- A reduction in external vulnerability; and
- Shrinkage in budget deficits and public sector indebtedness.

The main factors that could, individually or collectively,
trigger negative rating action are:
- An increase in external vulnerability, for example a widening
   of the current account deficit not financed by FDI;
- Worsening of the budget deficit, leading to further rise in
   public indebtedness; and
- Deterioration in either the domestic or regional political
   environment that affects economic policymaking or regional
   growth and stability.


Fitch does not expect a deterioration of bilateral relations with
Russia and assumes that potential spikes in tensions related to
the latent conflicts in Abkhazia and South Ossetia do not affect
the Georgian economy's performance and stability.

The full list of rating actions is as follows:

Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
Outlook Stable
Short-Term Foreign- and Local-Currency IDRs affirmed at 'B'
Country Ceiling affirmed at 'BB'
Issue ratings on long-term senior-unsecured foreign-currency
bonds affirmed at 'BB-'
Issue ratings on long-term senior-unsecured local-currency bonds
affirmed at 'BB-'
Issue ratings on short-term senior-unsecured local-currency bonds
affirmed at 'B'


AIR BERLIN: Lufthansa to Add More Planes After Rival's Insolvency
Reuters reports that Lufthansa's supervisory board approved plans
to invest EUR1 billion (US$1.2 billion) in up to 61 additional
planes to expand its Eurowings budget business after German rival
Air Berlin was declared insolvent.

Air Berlin's creditors have selected Lufthansa and British budget
carrier easyJet to negotiate over a carve-up of its assets,
Reuters relates.

According to Reuters, Lufthansa said its investment is set to be
used for the purchase and lease of 41 A320 single aisle jets and
20 Bombardier Dash 8 Q400 planes.

Those planes will likely come from Air Berlin, with Lufthansa
saying the purchase or lease of the planes is "partly dependent"
on a successful conclusion of talks to take over assets from Air
Berlin, Reuters notes.

Air Berlin's administrator said on Sept. 25 Lufthansa has made an
offer for Air Berlin's holiday airline Niki, which flies 21 A320
family jets, regional unit Luftfahrtgesellschaft Walter, which
flies 20 Dash 8 turboprops, plus some additional A320 planes,
Reuters relays.

Lufthansa boss Carsten Spohr said last week that even if
Lufthansa were unsuccessful with the Air Berlin bid, it would
still expand Eurowings on its own, Reuters recounts.

According to Reuters, a source has said Lufthansa has bid around
200 million euros for parts of Air Berlin, plus offer another 100
million euros to meet operating costs during a transition phase.

Air Berlin, however, does not own its planes, but instead rents
them from leasing companies, meaning any investor has to fund the
planes separately, Reuters states.

                       About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.

SKW STAHL-METALLURGIE: Files for Insolvency in Munich Court
On September 27, 2017, the management board of SKW Stahl-
Metallurgie Holding AG was forced to file for an in-court
insolvency proceeding under self-administration at the competent
insolvency court in Munich.  This proceeding is aimed at the
financial restructuring of the holding company with its 13
employees in a "protective shield" proceeding
("Schutzschirmverfahren").  The operative subsidiaries are not
affected by this insolvency filing of the holding company.
Therefore, the operative business of SKW group of companies is
continued worldwide without constraints.

This filing for insolvency was necessary, because the shareholder
MCGM GmbH, whose managing director Dr. Olaf Marx is also a member
of the supervisory board of SKW Stahl-Metallurgie Holding AG, has
blocked the management's concept for a financial restructuring
which involved the investor Speyside Equity.  The management had
to assume that during the up-coming shareholders' meeting on
October 10, 2017, the concept would not have achieved the
necessary majority of votes.  Thereby, the positive continuance
prognosis of the overindebted company had ceased and the
management board was forced to enter into insolvency.  Also,
there were no sustainable and promising alternative offers aimed
at the financial restructuring of the company available to the
management.  Due to the initiation of insolvency proceedings, the
shareholders' meeting originally convened for October 10, 2017,
will be cancelled.

The filing for insolvency has no implications to the operational
business of the subsidiaries. In this context, Dr. Kay Michel,
CEO of SKW Stahl-Metallurgie Holding AG, points out:
"Operationally, we are better positioned than many competitors
worldwide, and therefore our business operations are not
threatened by this measure.  Furthermore, our operative
subsidiaries are financed predominantly locally by regional
banks, and not via SKW Stahl-Metallurgie Holding AG.  Thus, our
subsidiaries remain solvent and will supply their customers with
usual quality as well as adherence to schedules."

The requested in-court restructuring under self-administration
with "protective shield" proceedings ("Schutzschirmverfahren"),
is aimed at continuing the company.  It allows for setting up an
insolvency plan, which defines the necessary steps for
restructuring as well as their exact implementation.  It is aimed
at achieving the already initiated financial restructuring
together with the investor Speyside Equity with the participation
of creditors and shareholders in the proceeding under the
insolvency plan.  However, for the shareholders of the company,
today's step, will presumably amount to a complete loss of their
invested capital.  The management's restructuring plan provided
for a capital reduction and a capital increase against
contribution in kind by way of a debt-to-equity-swap by the
industry-experienced financial investor Speyside Equity.

In the meantime, Speyside Equity and the banks of the syndicated
loan agreement have entered into a purchase agreement for the
credit claims owed by SKW Stahl-Metallurgie Holding AG under this
agreement in the amount of around EUR 74 million.  Closing of
this transaction is expected in mid-October.

The acquisition of the credit claims by Speyside Equity is not
conditioned on the shareholders' meeting taking place and is in
no way connected to the now initiated insolvency proceeding.
Therefore, the investor Speyside Equity also has a vital interest
in continuing the business operations of the operative
subsidiaries in an unmodified manner.  "We deeply regret that the
financial restructuring with the involvement of our shareholders'
meeting was blocked by the irresponsible behavior of MCGM", says
CEO Michel.  "Now, our firm goal should be to fully continue
business operations of SKW group of companies for our customers
and employees worldwide and to provide a healthy and sustainable
financial basis for our company once more, based on which we can
continue the positive trend in our operative business and
strategically develop the whole group."

SKW Stahl Metallurgie Holding AG is a Germany-based steel
refining company.  The Company is engaged in both primary
metallurgy, which refers to processing or ore into liquid iron,
and secondary
metallurgy, which includes refining the liquid iron into steel of
different quality levels for use in a multitude of industries,
from steel girders for building to sheets for the automotive

THYSSENKRUPP AG: Fitch Puts 'B' ST IDR on Rating Watch Positive
Fitch Ratings has placed thyssenkrupp AG's (TK) Long-Term Issuer
Default Rating (IDR) and senior unsecured rating of 'BB+' and
Short-Term IDR of 'B' on Rating Watch Positive.

This rating action follows the signing of a memorandum of
understanding between TK and Tata Steel Limited (TSL) to
contribute their European steel assets to a 50/50 joint venture.


Improving Business Profile: Given the overcapacity and
cyclicality present in the European steel industry, Fitch
believes that the reduced direct exposure to this industry, and
relative increase in the significance of the group's more stable
capital-goods businesses will be beneficial in reducing
volatility and improve the overall business profile. Within the
group's remaining businesses, Fitch considers the capital-goods
businesses of Components Technology, Elevator Technology and
Industrial Solutions to offer strong diversification, with
relatively limited correlation across divisions.

The Industrial Solutions business is currently suffering weak
performance due to the low oil price and low industrial
confidence limiting investments. However, this is offset by a
robust automotive market supporting Components Technology growth,
and strong aftermarket-driven earnings in Elevators.

Transaction Addresses Market Weaknesses: Overcapacity in the
European steel industry results in structurally lower achievable
margins, and attempts to limit the impact of Chinese imports
through anti-dumping measures have been at least partially offset
by increased imports from elsewhere. Several countries including
Ukraine, India, Indonesia, Korea and Brazil have raised volumes
into Europe in the first six months of 2017.

Significant Synergies: Combining the number two and three
producers will enable the new entity to initially generate
synergies, estimated by the company at EUR400-600 million, by
improving its cost structure through the removal of duplicated
functions, improved procurement and more efficient plant
utilisation. In the medium term the larger combined group is also
better placed to address issues related to capacity, though
upstream capacity reductions are not planned before 2020.

Non-Recourse JV: Fitch understands that the liabilities of the
new JV will not be guaranteed by the partners, and pensions will
not have recourse to them. Pensions at Port Talbot under the BSPS
2 scheme are sponsored by Port Talbot only, and will not have
recourse to the wider JV entity or to TK or Tata, limiting the
exposure to this site only. Given the recent recovery in steel
pricing, the JV is likely to be self-sustaining without requiring
additional equity contributions from TK or Tata. Cash flow to TK
from the JV will be limited to dividends paid, which Fitch does
not believes will be material in the initial two to three years
from inception given restructuring needs at the JV.

Given the lack of recourse of the JV to TK and cash-flow exposure
limited to dividends, Fitch will follow the equity accounting
treatment of this new entity, rather than proportionally
consolidate, and will place an emphasis on the significance of
the remaining wholly owned businesses when assessing the business
profile of the group.

Steel Price Impact Moderate: TK's recent and expected operating
margins have been helped by a recovery in steel pricing, with
reported adjusted EBIT at the Steel Europe Business for the third
quarter increasing to EUR323 million from EUR91 million a year
prior. Steep increases in raw-material costs have however had a
significant impact on working capital. Over the first nine months
the group saw a EUR2.0 billion working-capital outflow. Fitch
expects a partial reversal in the final quarter, but this could
potentially still be over EUR1 billion for the full year.

More Resilient Than Peers: The impact of low pricing from mid-
2015 to mid-2016 had been limited versus peers such as
ArcelorMittal S.A. (BB+/Positive) given TK's significant,
profitable capital goods businesses and fairly high-grade
products in the European steel business.

CSA Disposal Positive: The disposal of CSA to Ternium for EUR1.5
billion which closed in September 2017 will improve FFO adjusted
leverage metrics by approximately 0.9x. Despite the significant
write-down in asset value over recent years, Fitch views the
disposal positively. Given continued operational problems which
have limited the mills' output, as well as a low pricing
environment, progress towards profitability has been slow, and
Fitch did not expect the plant to become a material contributor
to the group's cash flows in the coming years. The sale is an
opportunity for the group to reduce net debt, and eliminate the
operating risks of improving the plant's performance.

Credit Profile Improving: The group failed to maintain its
deleveraging path in the year ending 30 September 2016 (FY16),
with FFO adjusted net leverage remaining at 3.3x. However, this
should be viewed in the context of significant headwinds in the
global steel industry. Fitch expects pro rata FFO-adjusted net
leverage to improve to around 2.1x in FY17 on proceeds from the
CSA disposal, improved pricing and cost-saving measures, and
despite material working-capital headwinds. Gross leverage is
likely to remain closer to 4x as TK maintains a strong liquidity
position and refinances its maturing bonds.

Transaction Slows Deleveraging Expectations: Following closing,
the cash flows of TKs steel business will be deconsolidated.
Under the planned structure, TK will offload EUR3.6 billion of
pension obligations to the new entity, but no financial debt.
This will result in a deterioration in leverage metrics compared
to Fitch's previous expectations. The JV is intended to operate
with a high dividend payout ratio. However, given the
restructuring costs that will be required, Fitch expects
dividends to be minimal in the initial two to three years. Once
dividends begin, then leverage metrics will again improve given
the renewed contribution of cash flows to TK from the steel


TK's rating of 'BB+' reflects a strong business profile, with
greater diversification than steel-focused peers, in particular
closest peer ArcelorMittal (AM - BB+/Positive). AM has greater
scale, greater geographic diversification and a better cost
position than TK. However, AM is exposed only to steel which
results in greater earnings volatility.

Conversely, compared to capital goods peers including KION GROUP
AG (BBB-/Stable) and Atlas Copco (A/Stable), TK has greater
exposure to volatile steel earnings, a greater fixed cost base
and lower production flexibility. These peers also have a greater
proportion of total group sales derived from stable servicing and

Fitch considers the group's business profile to be investment
grade. However, the ratings are currently limited by the group's
leverage and cash generation, which are poor for the current

No country-ceiling, parent/subsidiary or operating environment
aspects impacts the rating.


Fitch's key assumptions within Fitch ratings case for the issuer
excluding the proposed transaction include:
- 8% improvement in like-for-like revenues in 2017, returning to
   low-single-digit growth thereafter;
- EBITDA margin improvement to 7%-8% over 2017-2018 as a result
   of improved pricing, cost saving measures and rightsizing of
   the industrial solutions business, and ceasing dilution from
   Steel Americas;
- capex of approximately EUR1.4 billion per year following CSA
- working-capital outflow of around EUR1.0 billion in 2017,
   around neutral thereafter;
- CSA disposal closed September 2017 with proceeds of EUR1.5


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
Fitch would expect to resolve the Rating Watch upon the closing
of the transaction. Given the expected improvement in the
business profile, Fitch would take positive rating action if the
business continues to perform in line with Fitch expectations.
Closing of the JV transaction would result in reduced direct
exposure to volatile steel markets and greater focus on capital

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
In the absence of the transaction progressing, negative rating
action may result from:
- EBIT margin failing to improve towards 5%;
- FFO lease-adjusted gross leverage sustained above 3.5x;
- FFO lease-adjusted net leverage sustained above 3.0x;
- free cash flow remaining negative.


Healthy Liquidity: Liquidity is strong, given EUR2.2 billion
reported cash, and EUR3.8 billion undrawn committed facilities at
30 June 2017 against EUR1.2 billion of short term financial debt.
In addition, the group regularly accesses capital markets through
its EUR1.5 billion commercial paper programme. Receipt of
proceeds from the sale of CSA will also provide additional


ThyssenKrupp AG
- Long-Term IDR rated 'BB+' placed on Rating Watch Positive
- Senior unsecured notes rated 'BB+' placed on Rating Watch
- Short-Term IDR rated 'B' placed on Rating Watch Positive
- Commercial paper rated 'B' placed on Rating Watch Positive


BANCA UBAE: Fitch Affirms BB Long-Term IDR, Outlook Negative
Fitch Ratings has affirmed Banca UBAE's (UBAE) Long-Term Issuer
Default Rating (IDR) at 'BB'. The Outlook is Negative. The
Viability Rating (VR) has also been affirmed at 'bb'.


UBAE's IDRs are driven by the bank's standalone strength, as
expressed by the VR. The ratings reflect UBAE's niche trade
finance franchise based on flows between Italy and its core
markets in the Middle East and North Africa (MENA) region, and
high reliance on funding from its majority shareholder, Libyan
Foreign Bank (LFB). UBAE's business model benefits from some
diversification through business lines with a few large Italian
corporates and regional banks. UBAE is also active in the
interbank money market where it deploys surplus funds from LFB,
providing US dollar liquidity.

The Negative Outlook on UBAE's Long-Term IDR reflects continued
pressure on the bank's capitalisation, exacerbated by weak
earnings in recent years. Fitch considers UBAE's Fitch Core
Capital (FCC)/risk-weighted assets ratio of 11.1% at end-2016 low
in the context of its business risks and high credit
concentrations. UBAE's capital buffers over minimum regulatory
capital requirements remain modest despite a reduction in the
latter. The bank is seeking a capital injection from its
shareholders but the timing and amount remains uncertain. In the
event that the bank is unable to attract new capital, UBAE's
ability to execute strategic objectives will remain constrained
and it may risk breaching regulatory requirements.

The bank's internal capital generation (0.9% in 2016) is hampered
by a high cost base, which in 2016 included a EUR4.5 million
contribution to the Italian Resolution Fund (excluding this,
internal capital generation was 2.9%). Internal capital
generation is also impacted by limited cost flexibility and high
dividend payments. In addition, UBAE's capital base is small in
absolute terms (EUR220 million FCC at end-2016), exposing the
bank to event risk from high credit concentrations and
operational risks, which are prevalent in trade finance.

UBAE has tight underwriting standards and its risks are
adequately controlled. The bank has consistently demonstrated
sound asset quality, which reflects its long-standing
relationships with its clients, including entities related to
Libya and LFB.

UBAE's funding profile remains significantly reliant on parent
funding, with LFB-related funding making up 58% of total funding
at end-2016. However, UBAE's liquidity is good, given the self-
liquidating nature of the bank's short-term trade finance
transactions and large portfolio of unencumbered, liquid


Fitch believes that in case of need, UBAE would first look to LFB
for extraordinary support. LFB has shown a high propensity to
support UBAE, as it views the bank as important to its
international network and strategy. However, UBAE's Support
Rating of '5' reflects Fitch's view that LFB's ability to provide
support cannot be relied upon given the uncertain economic and
political environment in Libya.


The ratings are primarily sensitive to UBAE's capital position,
partly affected by its earnings trends. If a capital injection
from the shareholders fails to be forthcoming in the next 12
months, the ratings will likely be downgraded. Even with a
capital injection, material earnings deterioration or continued
erosion of capital ratios would be negative for the VR.

Given the bank's high dependence on the parent for funding, the
ratings remain sensitive to any unexpected withdrawal or volatile
material swings in the levels of such funding. This could
threaten UBAE's liquidity and challenge the bank's business
model. This could happen, for example, if a new regime took over
in Libya, including control of central bank operations (LFB is
owned by the Central Bank of Libya).

The concentration of UBAE's credit exposures means that ratings
are also sensitive to material deterioration in the quality of
one or more of the bank's counterparties.

Greater diversification of UBAE's funding profile, a material
capital increase or significant improvements in Libya's operating
environment would bring ratings upside if earnings were improving
at the same time.


UBAE's Support Rating is sensitive to changes in Fitch's
assumptions regarding potential support from LFB and may be
upgraded if Fitch believes that some support could come from LFB.
However, this is contingent on access to LFB as well as
sufficient improvement of the economic and political environments
in Libya.

The rating actions are:

Long-Term IDR: affirmed at 'BB'; Outlook Negative
Short-Term IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb'
Support Rating: affirmed at '5'


* LITHUANIA: Number of Insolvencies Rose 35.2% in 2016
The Baltic Course, citing LETA, reports that the number of
company insolvencies in Latvia and Estonia dropped in 2016, while
in Lithuania this number rose, according to representatives of
credit risk insurer Coface, citing the latest data.

The number of bankruptcies declined 12.4% in Latvia, 10.9% in
Latvia, but rose 35.2% in Lithuania, Baltic Course relates.

According to the report, Coface representatives said Lithuania's
statistics were impacted by the State Tax Inspectorate and Social
Fund's process of "cleaning" the market of companies which had in
reality been insolvent for some time.

At the same time, 2016 showed a continued decline of 6% in the
number of company insolvencies in the Central and Eastern
European region. This improvement was in line with the favorable
macroeconomic environment, largely due to the positive situation
on the labor market, with lower unemployment rates and rising
wages, the report states.

The steepest rise in the number of insolvencies was registered in
Hungary (56.9%), and the steepest drop was in Bulgaria (35.6%),
Baltic Course says.

In terms of sectorial split, the construction sector faced the
most difficult business environment. For some countries, such as
Estonia, Hungary and Russia, insolvencies of construction
companies represented over 20% of the total proceedings, the
report relats.

Coface Baltics director Mantvydas Stareika noted that the number
of insolvencies in the region will continue declining also this
year and next year, the report says. A positive signal is
increase of GDP growth and recovery of investments.


GALAPAGOS HOLDING: S&P Cuts CCR to 'CCC+', Outlook to Neg.
S&P Global Ratings lowered its long-term corporate credit rating
on Luxembourg-based heat-exchanger equipment provider Galapagos
Holding S.A. to 'CCC+' from 'B-'. The outlook is negative.

At the same time, S&P lowered the following ratings on the
group's debt:

-- S&P's issue-level rating on the super senior secured
    facilities, comprising a EUR75 million revolving credit
    facility (RCF) and a EUR400 million guarantee facility, to
    'B' from 'B+'. The '1' recovery rating on these facilities
    remains unchanged, reflecting S&P's expectations of very high
    (90%-100%, rounded estimate: 95%) recovery prospects in the
    event of a payment default;

-- S&P's issue rating on the senior secured notes to 'CCC+' from
    'B-'. The recovery rating on the notes is '3', indicating
    S&P's expectations of meaningful (30%-50%, rounded estimate:
    50%) recovery prospects in the event of a payment default;

-- S&P's issue-level rating on the senior unsecured notes to
    'CCC-' from 'CCC'. The recovery rating on these notes is '6',
    reflecting S&P's expectations of negligible (0%-10%, rounded
    estimate: 0%) recovery in the event of a payment default.

S&P said, "The downgrade to 'CCC+' reflects our view that
financial commitments might be unsustainable over the long term,
given continued softness of end markets (power, oil and gas, and
marine), and ongoing restructuring charges that are depressing
EBITDA. In light of the risk of deteriorating liquidity if
planned asset sales are delayed or halted, we have assigned a
negative outlook."

Galapagos represents subsidiaries Kelvion and ENEXIO. Continued
weak order intake, especially for ENEXIO's large projects, high
price pressure, and ongoing restructuring charges will lead to
lower-than-expected operating performance in 2017 and 2018. This
results in materially lower-than-expected credit metrics, with
debt to EBITDA between 8x and 9x and cash funds from operations
(FFO) to interest coverage ratio of less than 1.5x. At such
levels, S&P assesses debt leverage as unsustainable.

S&P said, "We don't expect that Galapagos will face a payment
crisis within the next 12 months, given available liquidity
resources, planned assets sales, and only moderate negative free
cash flow over the next 12 months. However, if planned asset
sales (worth around EUR25 million) were materially delayed or
halted, the liquidity situation would likely worsen and
compliance with its financial covenants would be at risk. In
addition, a successful refinancing of its long-dated debt
instruments is currently unlikely, in our view.

"The group's past performance shows that economic conditions and
high exposure to cyclical and mature markets, including power,
climate and energy, oil and gas, and marine, and chemicals hamper
revenues and operating performance. The high fixed-cost base,
high price pressure, stiff competition, and significant
restructuring charges negatively impact performance at the EBITDA
level and push profitability below levels that we view as average
for the capital goods sector. Starting in 2018, we expect some
recovery in margins as restructuring charges will decrease
compared with last year, and first benefits will unfold. On the
positive side, we note that small-scale order intake remained
relatively stable due to the large installed asset base, and
other end markets remained relatively stable or grew slightly.
The company also enjoys some good geographic and customer
diversification. However, these factors have not offset the
headwinds from commodity-driven end markets. Overall, we assess
the business risk profile of Galapagos as weak."

Galapagos' adjusted debt reached about EUR681.2 million on Dec.
31, 2016, with adjustments for operating leases of about EUR34.8
million, approximately EUR21.6 million for unfunded
postretirement obligations, about EUR11.4 million of finance
leases, and accrued interest of EUR1.4 million. Adjusted EBITDA
reached EUR62.2 million, with an operating-lease adjustment of
EUR15 million being the main adjustment to reported EBITDA of
EUR48.7 million. This translates into adjusted debt to EBITDA of
about 11.0x and EBITDA to interest of about 1x. Given relatively
high interest charges and current taxes, FFO was negative in
2016, translating into a ratio of cash FFO to interest coverage
of about 1x. S&P said, "We still anticipate that free operating
cash flow will remain negative for the coming 12 months, despite
countermeasures implemented by management, including cash
optimization project (focus on trade working capital) and
materializing benefits from restructuring measures. Overall, we
consider Galapagos' financial risk profile as highly leveraged.

"The negative outlook reflects our view that the group might face
liquidity concerns if the planned asset sales do not materialize,
which would lead to difficulties in complying with its financial
covenants and a liquidity crisis over the next 12 months. A
further deterioration of operating performance, leading to lower-
than-expected cash generation, could also trigger a downgrade.

"We could revise our outlook to stable if planned asset sales are
completed and liquidity sources are sufficient to meet uses
through 2018. We could consider a stable outlook if we expected a
substantial stabilization of operating performance over the next
12 months, including positive free operating cash flow or an
equity injection. In combination with debt reduction, this could
also lead to a positive rating action."

PC ARMATURES: Files for Insolvency; 50 Staff to Lose Jobs
Delano reports that PC Armatures announced on Sept. 12 that it
filed for insolvency.

It has been reported that 50 employees will lose their jobs,
Delano says. The trade union LCGB organised a meeting to help
them recover their outstanding salaries on Sept. 14, the report
relays. The trade union announced it would also help them find
new jobs.

Based in Esch/Alzette, PC Armatures specialised in the
construction of family homes.


FIMBANK PLC: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Malta-based Fimbank Plc's (Fimbank)
Long-Term Issuer Default Rating (IDR) at 'BB' with a Stable


The IDRs and Support Rating of Fimbank are driven by potential
support, if required, from its shareholder Kuwait-based Burgan
Bank, reflecting strong management and operational integration
between the two banks.

Burgan's Long-Term IDR of 'A+' is driven by sovereign support
(Kuwait AA/Stable), but given its shareholding in Fimbank is only
19.7% and Fimbank is not based in Kuwait, Fitch believes support
from Kuwait cannot be relied upon to flow through to the Maltese
associate. Therefore, Fimbank's IDRs are in line with Burgan's
Viability Rating (VR) of 'bb'.

Burgan's ultimate parent is Kuwait Projects Company Holding
K.S.C.P. (KIPCO), a leading regional investment company.. Two
other KIPCO subsidiaries, Bahrain-based United Gulf Bank and
Tunisia-based Tunis International Bank hold 61.2% and 2.8%,
respectively, in Fimbank. Over time, Fitch expects these stakes
to be consolidated and Burgan to eventually take a majority stake
in Fimbank, as it has done in most of KIPCO's other bank

Fimbank's 'bb-' VR reflects the bank's niche trade finance focus
and expertise, with business generated in and reliance on a
number of emerging markets. The bank's company profile is
underpinned by a long-standing franchise and improving business
model, and Fitch believes that Fimbank has a capable management
team and clear turnaround strategy.

We view Fimbank's risk appetite as being above average due to the
nature of the bank's business. The bank is working through legacy
problem loans and restructuring under-performing factoring
subsidiaries. However, any material improvement to Fimbank's
currently weak asset quality metrics will take time, in Fitch
views. Risk management and controls are improving, helped by
Burgan's oversight.

Fimbank's capital is under pressure from poor internal capital
generation and regulatory adjustments. Furthermore, the bank is
required to meet higher minimum capital requirements by the Malta
Financial Services Authority as part of its Supervisory Review
and Evaluation Process (SREP), which has curbed Fimbank's ability
to grow. As a result, Fimbank's board has recently approved a
fairly substantial rights issue, which is expected to be
concluded in 4Q17.

Fimbank's shareholders remain supportive, including fully
subscribing a USD50 million subordinated bond in 2015, which is
included in regulatory Tier 2 capital. The bank's Fitch core
capital/risk-weighted assets ratio, however, was 11.7% at end-
2016, which Fitch views as only adequate in the context of
Fimbank's risk profile.

Recent profitability trends, although modest, are showing
improvement and reflect better cost control and lower loan
impairment charges.

Funding and liquidity continue to strengthen with Fimbank's
expanding retail deposit platform and ordinary funding support
from Burgan. In Fitch views, the former is price-sensitive but
provides more stable and lower-cost funding than the bank can
obtain on wholesale markets.


Fimbank's IDRs and SR are sensitive to a change in Burgan's VR.
Fimbank's IDRs could also be downgraded if Burgan/KIPCO reduce
their stakes, if capital injections are not forthcoming or if
Burgan's control or oversight of its associate loosens.

Fimbank's Long-Term IDR could be upgraded by more than one notch
if Fitch believes that support from its owners is more likely,
for example, due to Burgan acquiring a majority stake in the bank
or Fimbank evolving into a key and integral part of the group's
business and providing core products and services to Burgan's
core markets.

Our base case is that Fimbank will receive a capital injection
from its shareholders (or KIPCO), within the next six months to
enable it to meet increased regulatory requirements. If it does
not, its VR will likely be downgraded. Strong recovery in its
financial metrics could result in Fimbank's VR being upgraded.
Downside pressure on the VR could also come from weaker asset
quality or a failure to improve underlying earnings further.

The rating actions are:

Long-Term IDR affirmed at 'BB'; Outlook Stable
Short-Term IDR affirmed at 'B'
Viability Rating affirmed at 'bb-'
Support Rating affirmed at '3'


BANK OTKRITIE: Maya Sudakova Named Temporary Administration Head
Jake Rudnitsky at Bloomberg News reports that Russian central
bank has named Maya Sudakova as head of temporary administration
at Bank Otkritie FC, replacing Dmitry Pozhidaev.

As reported by the Troubled Company Reporter-Europe on Aug. 31,
2017, The Financial Times related that Russia's central bank said
on Aug. 29 it would intervene to save Otkritie, the country's
largest privately held lender, from collapse.  According to the
FT, the central bank in a statement said it planned to become
Otkritie's "main investor" with public funds.  Otkritie would
continue to function normally without resorting to the bail-in
measures the fund was originally created for, the FT noted.
Otkritie lost RUR611 billion in deposits -- 20% of its balance
sheet -- in June and July, including from the personal accounts
of its then-CEO, as fears grew over its stability, the FT
disclosed.  Three senior state bankers told the FT that Otkritie
had a balance sheet hole comparable to the one found at the Bank
of Moscow in 2011, which required a EUR$14 billion bailout.

Otkritie is one of Russia's largest private listed banks.

KOMI REPUBLIC: Fitch Affirms BB- Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Russian Republic of Komi's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'BB-' with Stable Outlooks and the Short-Term Foreign-Currency
IDR at 'B'. The republic's senior unsecured debt long-term rating
has been affirmed at 'BB-'.

The ratings reflect Komi's persistent budget deficits leading to
a growing debt burden as well as the republic's weak fiscal
performance albeit with some evidence of restoration in 1H17.
This is counterbalanced by sound socio-economic metrics by
national standards.


Fitch projects Komi's budgetary performance will moderately
recover from a prolonged period of weak operating balance and
high budget deficit. Komi recorded a low positive 0.56% operating
margin in 2016 after an average negative 4.2% margin in 2013-
2015. Fitch expects further improvement in the operating margin
to 5% in the medium term, but the current balance will remain
negative due to increased interest payments. The better
performance is underpinned by the recovery of major taxes,
particularly corporate income tax (CIT) and property tax, which
together account for about two-thirds of total tax revenue.

During 1H17 Komi collected 53% of revenue budgeted for full-year
and incurred 47% of full-year expenditure, which led to a mid-
year deficit of RUB469 million. This was driven by better than
expected CIT and property tax proceeds, which increased by 16%
and 31% yoy, respectively.

Fitch expects acceleration of expenditure (particularly capital
spending) in 2H17 and forecast a full year deficit of about
RUB4.8 billion or 7.4% of total revenue, which is a notable
improvement compared with 2016's actual result (RUB7.3 billion or
12.1%). In Fitch's view the deficit before debt variation may
further narrow to 5%-6% in 2018-2019 after several years of
double-digit deficit (average 16.3% in 2013-2016).

As of Sept. 1, 2017, direct risk had declined to RUB37.0 billion
from maximum RUB41.2 billion at the beginning of the year as the
region was forced to accelerate repayment of a RUB7.5 billion
budget loan due to breaching its terms required by the Ministry
of Finance. Fitch forecasts direct risk will increase by year-end
and reach 73% of current revenue (2016: 70.3%). It will likely
approach 80% in 2018-2019, driven by a persistent, albeit
narrowing, budget deficit. The debt burden increased materially
during 2013-2016 due to an ongoing budget deficit. It grew to
70.3% of current revenue by end-2016 from 21% at end-2012.

The increasing debt burden is mitigated by Komi's diversified
debt portfolio structure, with a high proportion of amortised
domestic bonds with up to seven year maturity. The latter
amounted to 63% of direct risk at 1 September 2017. The remaining
debt is split between bank loans (23%) and federal treasury and
budget loans (14%). The debt maturity profile is stretched to
2034, but about 70% of the risk is concentrated in 2017-2021.
This leads to a weighted average debt maturity of about four
years, which is relatively short in an international context.

Komi has reduced immediate refinancing risk after the early
repayment of federal budget loans in August 2017. As of 1
September it needs to repay RUB4.6 billion of a short-term
federal treasury loan by end-2017. Fitch expects most debt due in
2017 and expected budget deficit to be financed by a new loan
from the federal budget and bank loans. As of 1 September 2017
Komi had RUB5 billion unutilised contracted credit lines with
banks and an approved federal budget loan of up to RUB5.8

Komi has a sound economy and its GRP per capita was almost twice
as high as the national median in 2014-2015 and the average
salary about 50% above the national median. However, the economy
is concentrated in the natural resources sector, which exposes
the region to commodity price fluctuations and potential changes
in fiscal regulation.

The republic's credit profile remains constrained by the weak
institutional framework for Russian local and regional
governments (LRGs), which has a shorter record of stable
development than many of its international peers. Weak
institutions lead to lower predictability of Russian LRGs'
budgetary policies, which are subject to the federal government's
continuous reallocation of revenue and expenditure
responsibilities within government tiers.


The inability to maintain a positive operating balance on a
sustained basis, along with an increase in direct risk above 90%
of current revenue, would lead to a downgrade.

The restoration of a positive current balance on a sustainable
basis and stabilisation of direct risk at below 75% of current
revenue (2016: 70.3%) would lead to an upgrade.

LOCKO-BANK: Fitch Affirms B+ Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Rosevrobank (REB) at 'BB-', Banca Intesa Russia (BIR)
at 'BBB-' and Joint Stock Company LOCKO-Bank (Locko) at 'B+'. The
Outlooks are Stable.


The affirmation of BIR's IDRs and senior debt rating reflects
Fitch's view that BIR would likely be supported, in case of need,
by its ultimate parent, Intesa Sanpaolo S.p.A. (ISP, BBB/Stable).
This view is based on BIR's strategic role for further
development of the group's Russian franchise, the low cost of the
potential support that might be required, common branding and
potential reputational and contagion risks for the group in case
of a subsidiary default.

The IDRs of REB and Locko, and Locko's senior debt rating reflect
their intrinsic strength, as expressed by their Viability Ratings
(VR). The banks' '5' Support Ratings and 'No Floor' Support
Rating Floors reflect Fitch's view that support from shareholders
or the Russian authorities, although possible, cannot be relied
upon in case of need.

The affirmation of all three banks' VRs (REB at 'bb-', BIR and
Locko at 'b+') reflects their generally adequate and stable
credit profiles. This view is based on sufficient capitalisation,
reasonable asset quality (better at REB), resilient profitability
(at REB and Locko) and comfortable liquidity. Negatively, the
banks' VRs factor in the relatively high-risk Russian operating
environment, the banks' limited franchises and fairly
concentrated balance sheets. REB's one-notch higher VR relative
to the other two banks reflects its stronger and more resilient
performance through the cycle, lower risk appetite and lower
impaired loans.

BIR's asset quality remains under pressure, as the share of NPLs
(non-performing loans, overdue more than 90 days) was a
significant 17% at end-1H17 (same at end-2016), although fully
reserved. Restructured exposures made up an additional 7% of
gross loans at end-1H17, but these are performing under the
renegotiated terms.

The NPL origination ratio (defined as the net increase in NPLs
for the period plus write-offs, divided by average performing
loans -- a proxy for credit losses) declined to zero in 1H17
following a strengthening of underwriting standards. However, the
latter has also resulted in BIR's negative loan growth in
previous years (-28% in 2016 and -16% in 2015).

Profitability remained weak: the net interest margin (7% in 1H17,
annualised) was almost fully consumed by high operating expenses
(89% of gross revenues) as efficiency weakened as a result of the
recent deleveraging. Pre-impairment profitability (4% of average
equity) was insufficient to cover impairment charges, and BIR
thus reported a negative return on average equity of 5%.

The Fitch Core Capital (FCC) to risk-weighted assets ratio was
16% at end-1H17 (17% at end-2016, 13% at end-2015) supported by
deleveraging and modest positive net income reported in 2016,
derived from a one-off commission gain. The Tier 1 regulatory
capital ratio was also 17% at end-8M17, providing sizeable
additional loss-absorption capacity equal to 18% of gross loans.

Funding was mainly sourced from customer accounts and deposits
(68% of total funding), while the share of funding from the
parent further decreased to 11% at end-1H17 from 14% at end-2016
due to deleveraging. Liquidity was sufficient to repay 49% of
customer accounts at end-8M17, while the unused credit lines from
the parent could cover all customer accounts in case of need.

The affirmation of REB's VR reflects the extended record of good
financial performance supported by relatively low funding costs
and strong asset quality, a solid capital buffer and ample
liquidity. At the same time, REB's ratings factor in its
currently small franchise.

REB's loan book quality remains strong, with a consistently low
NPLs ratio (1.7% at end-1H17) and low restructured exposures
(2.9%). These exposures were 2x covered by loan impairment
reserves (LIRs) at end-1H17. Based on a review of the 25 largest
corporate exposures (equal to 1x FCC) Fitch considers them of
limited risk because these are either (i) working-capital loans
to cash- generative clients with long operational track records;
or (ii) low-risk loans to government-related companies (about 20%
of gross loans).

REB's capitalisation is strong, as reflected by a high FCC ratio
of 18% at end-1H17, up from 16% at end-2016. The increase was due
to only limited lending growth and strong internal capital
generation (annualised ROAE of 18% in 1H17). Regulatory capital
ratios were also solid, with an 11% Tier 1 capital adequacy ratio
(CAR) and 14% total CAR. Fitch estimates that at end-1H17 the
bank's regulatory capital was sufficient to increase LIRs up to
22% of gross loans (from the current 12%) without breaching
minimum capital requirements. Beyond that, loss absorption
capacity is strengthened by solid pre-impairment profit, which
was equal to a large 9.4% of average loans in 1H17 (annualised).

REB's liquidity is ample, with liquid assets, including cash,
short-term bank placements and liquid securities covering a high
45% of customer deposits at end-8M17. The bank's funding benefits
from the high share (41% of liabilities at end-1H17) of sticky
and granular interest-free current accounts. The funding
structure translates into REB's fairly low funding cost (4.6% in
1H17), providing the bank with a significant competitive edge for
lending to better quality corporates while maintaining healthy
margins. Funding concentration is low (the 20 largest clients
accounted for a moderate 20% of end-1H17 total accounts) and
proved to be rather stable through the past crises.

NPLs in Locko's corporate portfolio (which accounted for 45% of
total loans) stood at 10.1% at end-1H17 (end-2016: 7.3%), and
restructured loans made up a further 2.9%. Corporate NPLs were
73% covered by reserves, while coverage of NPLs and restructured
loans was a combined 57%. Fitch views this as adequate as most
restructured exposures are performing and secured by completed
real estate, and half of these are expected to be refinanced at
other banks shortly. At the same time Locko applies reasonable
discounts when assessing collateral and expects some recoveries
on its NPLs.

Problem loans in the retail portfolio (55% of the total book)
were 10.6% at end-1H17, with NPLs and restructured making up 6.1%
and 4.5%, respectively. Reserve coverage of problem retail loans
was 52%, which is reasonable in Fitch's view, as about 70% of
them were secured and the restructured part was represented by
somewhat more risky but still performing loans.

Single borrower concentrations are moderate, with the largest 25
borrowers accounting for 0.76x FCC. However, additional asset
quality pressure may stem from Locko's significant exposure to
the construction and real estate sectors (net exposure of 0.5x
FCC at end-6M17). Fitch views most of these as of adequate risk
since they are amortising and underlying projects are performing,
while about 30% of them (0.2x FCC) are of higher risk, as the
collateral is fairly illiquid real estate, although loan-to-value
ratios are reasonable in most cases.

The bank's FCC ratio was 21% at end-1H17 (19% at end-2016), while
regulatory Tier 1 and total capital ratios at end-8M17 were lower
due to more conservative risk weightings but still sound at 13%
and 14%, respectively, allowing the bank to increase impairment
reserves to 17% (from 8%) of gross loans without breaching
minimum ratios. Pre-impairment profit net of securities gains
equalled a healthy 5.9% of average loans in 1H17 (annualised),
providing additional loss absorption capacity.

Funding concentrations are low, with the 20 largest clients
accounting for less than 20% of end-1H17 customer balances. Locko
had a large cushion of liquid assets at end-8M17, which net of
potential money market repayments maturing within the next 12
months covered customer accounts by 36%.


The Stable Outlook on BIR's ratings reflects the Stable Outlook
on Russia's sovereign rating and the Stable Outlook on ISP. BIR
would likely be downgraded if either Russia or ISP is downgraded,
but would only be upgraded if both Russia and ISP were upgraded.
BIR could also be downgraded if there was a sharp reduction in
ISP's commitment to the subsidiary.

Upside for the VR is currently limited due to BIR's weak
performance and asset quality metrics. Negative pressure could
stem from further asset quality deterioration and a weakening of
the capital position, if this is not rectified by fresh equity
injections from the parent.

TAMBOV REGION: Fitch Withdraws BB+ Long-Term IDR, Outlook Stable
Fitch Ratings has withdrawn Russian Tambov Region's 'BB+' Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs)
with Stable Outlooks and 'B' Short-Term Foreign-Currency IDR. The
agency has also withdrawn the region's senior unsecured debt
rating of 'BB+'.


Fitch has withdrawn the ratings of Tambov 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 on Tambov region.


Not applicable

YAROSLAVL REGION: Fitch Affirms BB- Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Russian Yaroslavl Region's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB-'
and Short-Term Foreign Currency IDR at 'B'. The Outlook is
Stable. The region's senior debt ratings have been affirmed at
long-term local currency 'BB-'.


Fitch projects Yaroslavl's operating margin will gradually
improve to 3%-5% in 2017-2018 (2016: 2%) and further to 6% in
2019, which will then be sufficient to fully cover interest
payments. Financial flexibility remains weak, despite the
region's interim deficit shrinking to 1.7% of total revenue by
end-7M17. Nonetheless, Fitch forecasts that the deficit before
debt variation will persist over the medium term, albeit
narrowing to 3.5%-6.5% of total revenue from 8.4% in 2016.

Fitch expects fiscal performance to be supported by continued
increase in the region's taxation, albeit at a slower rate of 2%-
2.5% in 2017 after a 7.8% rise in 2016. Taxes on average
represented 88% of Yaroslavl's operating revenue in 2012-2016.
Expenditure is historically rigid, with inflexible spending items
(salaries and current transfers of all kinds) averaging at 93.3%
of total expenditure in 2012-2016. As a result pressure from
operating expenditure is likely to persist over the medium-term.

Fitch expects direct risk will continue to increase to 75% of
current revenue in 2017-2019, from 38% at end-2012. However,
Yaroslavl's debt burden should remain consistent with the
region's ratings. Interim direct risk stabilised at RU35.6
billion as of 1 August 2017 (2016: RUB35.6 billion or 69% of
current revenue). The composition of the interim debt stock
changed in favor of domestic bonds (51% of total debt vs. 35% in
2016), followed by low-cost federal budget loans (46%), while
bank loans dropped to 3% from 24% in 2016.

The region's immediate refinancing risk is somewhat immaterial
with 10% of its current debt stock scheduled to mature by end-
2017 as a result of tapping the debt capital market and budget
loans. Yaroslavl is a frequent issuer and the administration
expects a tap issue of up to RUB2.5 billion bonds in 2H17 in
addition to the RUB7.5 billion 10-year bonds issued in May 2017.
Recently issued bonds have improved the maturity profile of the
region's debt portfolio to 4.6 years (2016: 3.6 years).

A well-diversified local economy helps keep wealth metrics in
line with the national median. Various sectors of the processing
industry provide the region with a broad tax base. The top 10
taxpayers contributed 36% of Yaroslavl's tax revenue in 2015-
2016. In 2016, the region's gross regional product grew 1.2%,
versus the Russian economy's 0.4% fall. According to the
administration's restated base macro-forecast 3.6% economic
growth is projected in 2017, before rising to 4%-4.5% in 2018-

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional
governments (LRGs), which has a shorter record of stable
development than many of the region's international peers. The
predictability of Russian LRGs' budgetary policy is hampered by
frequent reallocation of revenue and expenditure responsibilities
between government tiers.


An improvement in the operating balance towards 10% of operating
revenue, coupled with debt coverage ratio (direct risk-to-current
balance) at around 10 years (2016: negative 14 years) for a
sustained period could lead to an upgrade.

Inability to restore a positive current balance and widening of
the deficit above 10% of total revenue could lead to a downgrade
of the ratings.


NEURON BIO: Board Agrees to File for Insolvency Proceedings
Reuters reports that Neuron Bio SA's board agreed to file for
insolvency proceedings as it has not reached agreement with
creditors or potential investors to refinance the company.

Headquartered in Granada, Spain, Neuron Bio, S.A. operates as a
biotechnological company in Spain.  It operates through Pharma,
Diagnostic, and Services divisions.


QUID PRO QUO: FINMA Shuts Down Provider of Fake Cryptocurrency
The Financial Market Supervisory Authority FINMA has closed down
the unauthorised providers of the fake cryptocurrency "E-Coin".
The developers of E-Coin had accepted some million Swiss francs
in public deposits without holding the required banking licence.
FINMA has also launched bankruptcy proceedings against the legal
entities involved.

For over a year since 2016, the QUID PRO QUO Association had been
issuing so-called "E-Coins", a fake cryptocurrency developed by
the association itself. Working together with DIGITAL TRADING AG
and Marcelco Group AG, the association gave interested parties
access to an online platform on which E-Coins could be traded and
transferred. Via this platform, these three legal entities
accepted funds amounting to at least four million Swiss francs
from several hundred users and operated virtual accounts for them
in both legal tender and E-Coins. This activity is similar to the
deposit-taking business of a bank and is illegal unless the
company in question holds the relevant financial market licence.

                FINMA Liquidates the Companies

FINMA has taken action to protect creditors by launching
enforcement proceedings against those involved. In its
proceedings, FINMA found that the three legal entities had
seriously breached supervisory law by failing to obtain the
required authorisation. As is usual in serious cases of
unauthorised activity, FINMA has liquidated the association and
the two companies. Since the three legal entities are insolvent,
FINMA has also launched bankruptcy liquidation proceedings
against them. FINMA has been able to seize and block assets to
the value of approximately two million Swiss francs. The final
amount of liquidation proceeds will not be known until bankruptcy
liquidation proceedings have been concluded and all relevant
liabilities have been identified.

                   Not an Actual Cryptocurrency

Unlike real cryptocurrencies, which are stored on distributed
networks and use blockchain technology, E-Coins were completely
under the providers' control and stored locally on its servers.
The providers had suggested that E-Coins would be 80% backed by
tangible assets, but the actual percentage was significantly
lower. Moreover, substantial tranches of E-Coins were issued
without sufficient asset backing, leading to a progressive
dilution of the E-Coin system to the detriment of investors.

FINMA issues a warning about unscrupulous cryptocurrency
providers and intervenes if regulations are breached

FINMA welcomes innovation, but when innovative business models
are misused for unauthorised activities, FINMA intervenes. FINMA
has evidence of attempts by unauthorised parties to persuade
former E-Coin users to invest in two new, presumably fake,
cryptocurrencies. FINMA has also placed the following companies
on its warning list due to suspicious activity in the same field:

  - Suisse Finance GmbH (in Liquidation)
  - Euro Solution GmbH
  - Animax United LP.

In addition, FINMA is conducting 11 investigations into other
presumably unauthorised business models relating to such coins.
As with any other investment opportunity, market participants
should carefully weigh up the risks before they invest in
instruments of this kind. FINMA publishes advice on its website
suggesting ways in which market participants can protect


ARAP TURK: Fitch Affirms BB- Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Arap Turk Bankasi A.S.'s (ATB) Long-
Term Local and Foreign Currency Issuer Default Ratings (IDRs) at
'BB-' with a Stable Outlook.


The IDRs and National Rating are driven by the standalone
strength of ATB, as measured by its 'bb-' Viability Rating (VR).
The VR reflects ATB's reliance on substantial deposit funding
from majority shareholder, Libyan Foreign Bank (LFB), and on
trade flows between Libya and Turkey. The ratings also take into
consideration the limited franchise of ATB within the Turkish
banking sector, its specialist focus on the high-risk Middle East
and North Africa (MENA) region and high credit concentrations on-
and off-balance sheet. The VR benefits from ATB's track record of
consistently sound financial performance.

ATB has developed significant expertise in trade financing
between Turkey and MENA countries, in particular Libya. Other
activities include correspondent banking with regional
counterparties including Libyan banks, as well as cash loans to
major Turkish corporates. Transactions with Libya, although high
in risk, have performed well over time, and their high
proportions of the bank's activity are mitigated by guarantees
from large Turkish banks and corporates. Consequently, ATB's
asset quality metrics compare well with Turkish commercial banks'
and trade finance bank peers', as impaired exposures represented
a low 0.4% of total credit exposure (total cash and non-cash
commitments) at end-1H17. The main risk to asset quality is from
high borrower and geographic concentrations in volatile

Deposits from LFB represented 44% of ATB's non-equity funding at
end-2016, presenting significant funding concentration. However,
this has been fairly stable over the years and has supported
ATB's operations within the region. Other sources of funding
consist of bank borrowings (30%), of which a high proportion is
from LFB affiliates or related entities, and customer deposits
(12%). Management intends to diversify sources of funding to
reduce concentrations.

ATB's capital adequacy ratios are adequate (Fitch Core Capital
(FCC)/risk-weighted assets: 17.2% at end-1H17), but capital is
small in terms of absolute size (end-June 2017: TRY757 million),
especially given the bank's high credit concentrations.
Capitalisation is supported by acceptable internal capital
generation. However, capital adequacy ratios are vulnerable to an
increase in risk-weighted assets from lira depreciation, given
ATB's large proportion of foreign currency (FC) assets (81% at
end-1H17), mainly in euros and US dollars.

Profitability ratios compare well with trade finance bank peers',
despite tough operating conditions (return on equity: 11% in
1H17). Margins are healthy (net interest margin: 4.7% in 1H17),
but are expected to come under pressure as funding costs increase
due to the focus on diversification. Integration with LFB group
banks and a small branch network of seven help keep cost
efficiency stable (cost/income: 39% in 1H17).

The affirmation of ATB's 'A+(tur)' National Long-Term Rating
reflects Fitch's view that the bank's credit profile relative to
others financial institutions in the Turkish market has not


The bank's '5' Support Rating reflects Fitch's view that support
cannot be relied upon either from the Turkish authorities or from
the shareholders. Fitch believes that support cannot be relied
upon from the Turkish authorities, given ATB's limited systemic
importance. ATB's Support Rating Floor (SRF) has been affirmed
and withdrawn, as Fitch believes the primary source of any
potential support would be LFB and not the Turkish authorities.

Given the uncertain economic and political environment in Libya,
LFB's ability to provide support cannot be relied upon despite a
track record of past support for the Turkish bank's operations.
LFB has over time shown a high propensity to support ATB,
underlining the importance of the bank to the former's
international strategy. As well as providing low-cost funding,
LFB appoints key senior management (including the CEO) and plays
a vital role in introducing business to its Turkish subsidiary.


The bank's IDRs and National Rating are sensitive to a change in
the VR. The bank's VR could be downgraded if ATB's strategic
importance to LFB is reduced, through a substantial loss or
withdrawal of funding or business, due to, for example, a change
in the regime in Libya. ATB's VR is also sensitive to a material
weakening of the domestic operating environment and the potential
negative impact of this on asset quality and earnings as well as
the sufficiency of the bank's capital and liquidity buffers.
However, these scenarios do not represent Fitch's base case.

Upside for the ratings is limited given the bank's niche
franchise, high reliance on parent funding and exposure to the
Libyan economy. However, diversification of ATB's funding profile
and business model or significant improvements in Libya's
operating environment could bring rating upside.


The Support Rating could be upgraded if Fitch judges that LFB is
able to provide extraordinary support to ATB in case of need.
This would be contingent on a more stable regime in Libya while
maintaining the importance of ATB to LFB.

The rating actions are:

Long-Term Foreign and Local IDRs affirmed at 'BB-'; Stable
Short-Term Foreign and Local IDRs affirmed at 'B'
Viability Rating affirmed at 'bb-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor' and withdrawn
National Long-term Rating affirmed at 'A+(tur)'; Stable Outlook


UKRAINE: Fitch Says Bond Issue Positive but IMF Funding Still Key
Ukraine's return to the international bond market reduces
refinancing risk and boosts reserves, supporting the country's
sovereign credit profile, but official lenders (chiefly the IMF)
remain the cornerstone of both Ukraine's external financing and
its commitment to reform, Fitch Ratings says.

Ukraine (B-/Stable) raised USD3 billion of 7.375% 15-year bonds
on September 18, 2017, in its first international issue since the
crisis triggered by Russia's military intervention in 2014 and
Ukraine's subsequent debt restructuring. The issue attracted
orders of USD9.5 billion from around 350 investors, according to
the Ministry of Finance.

The strong demand highlights the progress the Ukrainian
authorities have made in correcting economic imbalances and
strengthening the country's macroeconomic policy framework. The
deal reduces refinancing risk as a portion of the proceeds will
be used to repurchase USD1.6 billion of notes maturing in 2019
and 2020. And it will further increase reserves, which had
climbed to USD18 billion in August from USD15.4 billion in
January, partly due to the latest IMF disbursement (USD1 billion
following the conclusion of the programme's Third Review in
April), the second instalment of the EU Macro-Financial
Assistance Programme of EUR600 million, and sales of FX by

Sustained bond market access would improve external financing
flexibility, but until Ukraine has re-established a track record
of issuance, multilateral and bilateral support will remain the
key source of balance-of-payments and budget financing. Fitch
does not anticipate a strong pick-up in FDI inflows in 2017-2018,
leaving official disbursements (mostly from the IMF) to provide
the bulk of net external financing.

"We believe that the IMF programme also underpins the confidence
and reform momentum that supported Ukraine's bond market return
and helps ensure support from other official sector creditors.
Further disbursements under the Extended Fund Facility will
depend on the government's structural reform efforts. The
government has indicated that it wants to move swiftly on pension
and land sales, both key IMF reform benchmarks," Fitch says.

"But reform fatigue and delays in execution present risks,
particularly as the emphasis shifts towards introducing and
sustaining politically and socially sensitive reforms such as gas
tariff adjustments. Meeting deficit targets (2.5% of GDP in 2018
and 2.3% in 2019) will probably require additional measures due
to spending pressures, notably from pension transfers and wages.

"We think the government remains committed to reform, and the IMF
has shown flexibility in its programme assessments (Ukraine
completed just five of 14 structural benchmarks for the Third
Review). However, maintaining momentum in areas such as
privatisation and tackling corruption may prove challenging, as
highlighted in recent comments by IMF official David Lipton to
the Ukrainian press. The approach of the 2019 elections may also
weigh on reform momentum.

"Given the importance of multilateral support, our sovereign
rating assessment is focused on the credibility and consistency
of Ukraine's policy framework, sustained strengthening of
external buffers, and progress of reforms intended to improve
macroeconomic performance (most notably growth prospects) and to
cement fiscal consolidation, in line with Ukraine's IMF programme

U N I T E D   K I N G D O M

CARILLION PLC: Middle Eastern Company Prepares Takeover Bid
Rhiannon Bury at The Telegraph reports that a Middle Eastern
company was preparing a takeover bid for troubled construction
and support services firm Carillion plc.

According to The Telegraph, a report from City AM suggested that
the suitor was waiting for Carillion to update the market on its
financial position on Sept. 29 before making an offer.

The firm has suffered a disastrous few months including profit
warnings and GBP845 million of writedowns, which have wiped more
than 70% from its market capitalization and resulted in chief
executive Richard Howson stepping down, The Telegraph relates.

A takeover offer from a rival firm could be the lifeline
Carillion needs to continue trading; analysts have suggested that
the company could look to undertake a rights issue in the coming
months to shore up its cash position, or sell underperforming
parts of the business, The Telegraph discloses.

David Madden, analyst at CMC Markets, as cited by The Telegraph,
said: "The troubled construction company may welcome the takeover
approach as it is struggling with high debts, but some
shareholders might feel they are being targeted near the all-time

Carillion is expected to announce sales of parts of its Middle
Eastern business, where some of its problems have originated, on
Sept. 29 alongside its half-year financial results, The Telegraph
notes.  There is also concern that the firm's accounts, which
KPMG has been pouring over ahead of the delayed announcement,
could be hiding a number of other troubled contracts, The
Telegraph states.

MENAI VEHICLE: Director Disqualified for 10 Years
Gwyn Merion Roberts, director of Menai Vehicle Solutions Limited,
a car dealership in Bangor, North Wales has been disqualified for
10 years after scamming members of the public out of nearly GBP1

His company took money from customers but then failed to provide
the vehicles that had been paid for. It also failed to pay
customers for vehicles sold on their behalf.

Roberts gave an undertaking to the Secretary of State for
Business, Energy and Industrial Strategy, which prevents him from
becoming directly or indirectly involved in the promotion,
formation or management of a company for 10 years, beginning from
Sept. 5, 2017.

Menai went into liquidation on Oct. 21, 2015 owing at least
GBP1,250,000 to customers and other creditors.

The Insolvency Service's investigation concluded that Menai
operated a practice whereby it sold new vehicles to members of
the public for less than the cost incurred by Menai in purchasing
them from dealers. This encouraged new custom but inevitably
resulted in Menai becoming unable to meet its liabilities,
resulting in new customer deposits being used to finance the
purchase of vehicles for older customers.

The business model was unsustainable and Menai either failed to
provide vehicles to customers after having taken payment for the
vehicles or failed to forward funds to customers after selling
vehicles on their behalves.

This resulted in losses to at least 40 members of the public
totalling at least GBP969,011.

In several instances, Roberts provided banking documents to
customers, showing payments had been instructed to car dealers
for the purchase of the vehicle they had ordered, only to
subsequently revoke the instruction.

Commenting on the disqualification, Robert Clarke, Chief
Investigator at the Insolvency Service, said:

This is an unfortunate case in which members of the public
suffered significant losses as a consequence of the inexcusable
financial practices adopted by Mr Roberts.

The lengthy period of disqualification is testament to how
seriously the Insolvency Service views this misconduct.

The Insolvency Service will not hesitate to act where members of
the public have lost out as a result of malpractice leading to

Menai Vehicle Solutions Limited was incorporated on Feb. 5, 2008.
Menai operated from premises at Unit 8, Intec Parc Menai, Bangor,
Gwynedd LL57 4FG, which were also its registered address.

Mr. Roberts was a formally appointed director between May 20,
2011 and liquidation, and the sole appointed director of Menai
after June 14, 2011.

Menai went into Liquidation on Oct. 21, 2015. On Aug. 15, 2017
the Secretary of State accepted a Disqualification Undertaking
from Mr. Roberts effective from Sept. 5, 2017, for ten years.


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

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

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


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

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

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

This material is copyrighted and any commercial use, resale or
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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,
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