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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, January 15, 2014, Vol. 15, No. 10

                            Headlines

G E R M A N Y

WELTBILD GMBH: Bavaria State May Offer Financial Aid


I C E L A N D

* ICELAND: May Set Deadline as Bank Creditor Settlements Drag


I R E L A N D

DOONBEG GOLF: In Receivership; Buyers Sought for Property


I T A L Y

BANCA MONTE: Board Meets After Main Shareholder Blocks Share Sale
TAURUS CMBS 2: Fitch Affirms 'CCC' Rating on Class G Notes


N E T H E R L A N D S

DUCHESS VI: Moody's Raises Rating on Class D Notes to Ba1


R O M A N I A

OPTINOVA: Enters Bankruptcy After Reorganization Plan Fails


S P A I N

AYT FONDO: Moody's Puts B2-Rated Notes Under Review for Downgrade
CAJA DE AHORROS: Bailout Cost May Reach EUR15 Billion
CIRSA GAMING: S&P Revises Outlook to Stable & Affirms 'B+' CCR
CODERE SA: Won't Be Making Jan. 15 Bond Coupon Payment


S W E D E N

STENA AB: Moody's Assigns '(P)B2' Rating to Sr. Unsecured Notes


U K R A I N E

MRIYA AGRO: S&P Revises Outlook to Stable & Affirms 'B-' CCR


U N I T E D   K I N G D O M

CANOPIUS SYNDICATE 4444: Moody's Reviews B Continuity Opinion
CANOPIUS SYNDICATE 958: Moody's Reviews B Continuity Opinion
CO-OPERATIVE GROUP: S&P Raises CCR & Unsec. Debt Ratings to B+
DMI (UK): Enters Administration, 23 Jobs Axed
NATIONAL BANK UK: Fitch Affirms 'B-' Issuer Default Rating

S&P ARCHITECTS: Insolvency No Impact GBP15MM Perth Leisure Centre
WHITCLIFFE HOTEL: Placed in Liquidation


X X X X X X X X

* Moody's Says US Money Market Funds Boost EU Banking Exposure
* Milbank Elects Six New Members to Partnership


                            *********


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G E R M A N Y
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WELTBILD GMBH: Bavaria State May Offer Financial Aid
----------------------------------------------------
Reuters reports that the German state of Bavaria may offer
insolvent bookseller Weltbild financial backing to try to avert
thousands of job losses, a newspaper cited Bavarian state premier
Horst Seehofer as saying.

There are a number of options ranging "from debt guarantees to
bridge financing", the Sueddeutsche Zeitung quoted Seehofer as
saying on Jan. 13, according to Reuters.

Weltbild, owned by the Roman Catholic Church and which has 6,300
employees, filed for insolvency on Jan. 10 after failing to keep
up with competition from Internet-savvy rivals such as Amazon.com
and to obtain new financing.

Reuters says the owners of Weltbild -- 12 Catholic dioceses, the
Association of German Dioceses and the church's soldiers' welfare
organization -- have long fought over company strategy.

Two years ago, they decided to prepare a sale of the for-profit
business after accusations that Weltbild was making profits from
selling erotic books, but no deal materialized, Reuters recalls.

According to Reuters, labor representatives have criticized the
Church for allowing Weltbild to become insolvent, putting jobs at
risk.

Reuters relates that the Church said it has no choice and has
offered financing, which Sueddeutsche Zeitung said was
EUR65 million ($88.87 million), less than half the EUR135 million
Weltbild has demanded.

"As owners we could not justify investing three-digit million
euro sums, taken from church tax revenue, for the foreseeable
future," Reinhard Marx, archbishop of Munich, told Sueddeutsche,
Reuters relays.

Weltbild, which relies on sales from catalogues and is part-owner
of Germany's second biggest brick-and-mortar bookstore chain
Hugendubel, said its business will continue while the court-
appointed insolvency administrator works out a plan to
restructure the business, Reuters adds.



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I C E L A N D
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* ICELAND: May Set Deadline as Bank Creditor Settlements Drag
-------------------------------------------------------------
Omar R. Valdimarsson at Bloomberg News reports that Iceland is
losing patience with creditors in its failed banks as the
government considers forcing through bankruptcy proceedings to
help it exit capital control in place since 2008.

"The Bankruptcy Act doesn't anticipate that attempts to seek
composition last forever," Bloomberg quotes Finance Minister
Bjarni Benediktsson as saying in a Jan. 10 interview in
Reykjavik.  "It's to the benefit and in the interest of everyone
to complete these matters as soon as possible."

The banks that collapsed in 2008, Kaupthing Bank hf, Glitnir Bank
hf and Landsbanki Islands hf, have been run by winding up
committees representing their creditors, many of whom are hedge
funds, Bloomberg recounts.  So far, the two sides have failed to
reach an agreement as Iceland fights to ensure any deal doesn't
trigger a flight of capital out of the country that would derail
its financial markets, Bloomberg relates.

The combined kronur-denominated assets of the creditors are
equivalent to about ISK461 billion (US$3.9 billion), or 28% of
the nation's gross domestic product, Bloomberg discloses.  The
leaders of all of Iceland's political parties have said these
assets will need to be written down before a settlement can be
reached, Bloomberg notes.

Setting a deadline and forcing bankrupt entities to convert their
foreign holdings into kronur "is one of the things that we're
looking into," Mr. Benediktsson, as cited by Bloomberg, said.  "I
don't want to make any statements" on whether this will happen
later this year "although I don't exclude it."

According to Bloomberg, Mr. Benediktsson's comments add to
pressure on hedge funds and other creditors after similar remarks
in November from Prime Minister Sigmundur David Gunnlaugsson.



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I R E L A N D
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DOONBEG GOLF: In Receivership; Buyers Sought for Property
---------------------------------------------------------
BreakingNews.ie reports that receivers have been appointed to
The Lodge at Doonbeg and Doonbeg Golf Club in Co Clare.

In a statement on Monday evening, it was confirmed that the
five-star property would continue to operate as normal as
receivers work to secure a buyer for the resort, BreakingNews.ie
relates.

Customers are advised that there will be no disruption to
services as a result of the appointment, and events booked will
go ahead as scheduled, and all deposits and gift vouchers will be
honored, BreakingNews.ie discloses.



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I T A L Y
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BANCA MONTE: Board Meets After Main Shareholder Blocks Share Sale
-----------------------------------------------------------------
Sonia Sirletti and Elisa Martinuzzi at Bloomberg News report that
Banca Monte dei Paschi di Siena SpA's board was set to meet for
the first time since its main shareholder blocked a share sale to
repay state aid.

Executives were set to convene at the offices of Monte Paschi,
Italy's third largest bank, in the city of Siena yesterday,
Bloomberg relates.

Fondazione Monte dei Paschi di Siena won a bid on Dec. 28 to
delay a EUR3 billion (US$4.1 billion) share sale to May from this
month, thwarting efforts by the world's oldest bank to raise
capital quickly and avert the risk it may be nationalized,
Bloomberg recounts.  The delay prompted speculation in Italian
newspapers such as la Repubblica that Chief Executive Officer
Fabrizio Viola would resign, Bloomberg relays.  According to
Bloomberg, Monte Paschi Chairman Alessandro Profumo said in
December he will decide on his future by the middle of this
month.

"The postponement of the capital raising increased the
uncertainty about the ability of the bank to avert
nationalization," Bloomberg quotes Fabrizio Bernardi, a Milan-
based analyst at Fideentiis Equities, as saying.

The latest blow to Monte Paschi's rescue efforts comes a year
after Bloomberg revealed the bank masked losses with a
derivatives contract named Santorini, prompting it to restate its
accounts.

Messrs. Viola and Profumo, appointed in 2012 to turn around the
541-year-old bank, are trying to implement a restructuring plan
to return the firm to profit after it sought a EUR4.1 billion
state rescue, Bloomberg recounts.  Their mission is complicated
by Italy's recession and stricter requirements on capital and
liquidity imposed by European authorities, Bloomberg notes.

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 18,
2013, Fitch downgraded MPS's Viability Rating (VR) to 'ccc' from
'b' and removed it from Rating Watch Negative (RWN).

TCR-Europe also reported on June 19, 2013, that Standard & Poor's
Ratings Services lowered its long-term counterparty credit rating
on Italy-based Banca Monte dei Paschi di Siena SpA (MPS) to 'B'
from 'BB', and affirmed the 'B' short-term rating.  S&P also
lowered its rating on MPS' Lower Tier 2 subordinated notes to
'CCC-' from 'CCC+'.  S&P affirmed the ratings on MPS' junior
subordinated debt at 'CCC-' and on its preferred stock at 'C'. At
the same time, S&P removed the ratings from CreditWatch, where it
placed them with negative implications on Dec. 5, 2012.


TAURUS CMBS 2: Fitch Affirms 'CCC' Rating on Class G Notes
----------------------------------------------------------
Fitch Ratings has affirmed Taurus CMBS No.2 S.r.l. (Taurus 2) as
follows:

  -- EUR1.5m class B (IT0003957013) affirmed at 'AA+sf'; Outlook
     Negative

  -- EUR14.2m class C (IT0003957021) affirmed at 'AAsf'; Outlook
     Stable

  -- EUR16.6m class D (IT0003957039) affirmed at 'Asf'; Outlook
     Stable

  -- EUR14.2m class E (IT0003957047) affirmed at 'BBsf'; Outlook
     revised to Stable from Negative

  -- EUR9.5m class F (IT0003957054) affirmed at 'CCCsf'; Recovery
     Estimate RE100%

  -- EUR14.1m class G (IT0003957062) affirmed at 'BBsf'; Outlook
     Stable

Taurus 2 is a securitization of four commercial mortgage loans
originated in Italy.  The loans, originated by Merrill Lynch
Capital Markets Bank Ltd, were secured by 83 predominantly office
properties.  Following the prepayment of the Bentra, Little Domus
and Leather loans, only the Berenice loan remains outstanding.
The Berenice loan was a one-third pari passu participation in a
EUR490 million syndicated loan, granted to a closed-ended listed
real estate investment fund.

The affirmations of all classes of notes and the revised Outlook
on the class E notes reflect the improved performance of the
Berenice loan since Fitch's last rating action in January 2013.
The reported loan-to-value (LTV) decreased to 45.6% at the most
recent January 2014 interest payment date (IPD) from 52.9% 12
months earlier.  This fall in leverage was driven by a partial
repayment of EUR17.7 million, the remaining balance of a
scheduled EUR23.3 million installment already partially met
through past asset disposals.  The balance was funded from
diversion of excess cash that was otherwise due to the borrower's
unit holders.

The Berenice loan consists of a 33% portion of a syndicate
financing facility backed by 29 outstanding properties.  Of this
17 assets (but only 18% by market value) are let to Telecom
Italia (BBB-/Negative) on leases expiring in 2027 but with a
break option in 2021; the remainder generally consists of
secondary office space in the north of Italy, predominantly Milan
semi-centre or periphery.  Since Fitch's last rating action no
asset sales have occurred and the market value of the portfolio
declined to EUR390.4 million, from EUR436.6 million as of the
previous June 2012 valuation.  The loan matures in July 2015 and
benefits from further scheduled amortization of EUR70 million in
June 2014 and EUR70 million in December 2014; only EUR23.3
million, or a third, will be available for the securitization at
each interest payment date.  While the scheduled amortization
(and possible utilization of excess cash flows to meet
amortization targets) mitigates most of the risks, Fitch
estimates the portfolio value to be much lower, since most of the
relevant markets are experiencing noticeable fall in rental
values and increase in rental yields.

The higher rating of the class G notes (compared with the class F
notes) is due to its available funds cap, which means that
Fitch's analysis does not incorporate the likelihood of interest
being paid on class G following principal amortization.  Should
the issuer expenses rise (as they did in the recent past for
unexpected fees, or if the loan enters into workout), interest
shortfalls could affect the class F notes. This possibility
explains its 'CCCsf' rating, despite expectations of ultimate
recoveries remain high, as reflected in Fitch's recovery estimate
of 100%.

Fitch's expected note principal repayments amount to EUR84
million. Any delay in the disposal program of the borrower or
sudden falls in rental income -- both factors impacting the
payment of scheduled amortization and potentially causing a loan
event of default -- could lead to negative rating action. Any
possible positive rating action is constrained by a rating cap on
Italian rated bonds of 'AA+sf'.



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


DUCHESS VI: Moody's Raises Rating on Class D Notes to Ba1
---------------------------------------------------------
Moody's Investors Service has taken the following rating actions
on six classes of notes issued by Duchess VI CLO B.V.:

    EUR215M Class A-1 Notes (currently EUR193.2M outstanding),
    Affirmed Aaa (sf); previously on Aug 10, 2011 Upgraded to Aaa
    (sf)

    EUR125M Revolving Facility Notes (currently EUR99.7M
    outstanding), Affirmed Aaa (sf); previously on Aug 10, 2011
    Upgraded to Aaa (sf)

    EUR35M Class B Notes, Upgraded to Aa2 (sf); previously on
    Aug 10, 2011 Upgraded to A1 (sf)

    EUR25M Class C Notes, Upgraded to A2 (sf); previously on
    Aug 10, 2011 Upgraded to Baa1 (sf)

    EUR32.5M Class D Notes, Upgraded to Ba1 (sf); previously on
    Aug 10, 2011 Upgraded to Ba2 (sf)

    EUR15M Class E Notes (currently EUR 14.4M outstanding),
    Affirmed B1 (sf); previously on Aug 10, 2011 Upgraded to B1
    (sf)

Duchess VI CLO B.V., issued in August 2006, is a dual currency
(EUR and GBP) Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European loans. It is
predominantly composed of senior secured loans. The portfolio is
managed by Babson Capital Europe Limited. This transaction passed
its reinvestment period in August 2013.

Ratings Rationale

According to Moody's, the rating actions taken on the notes
result from an improvement in credit metrics of the underlying
portfolio and also the benefit of modelling actual credit metrics
following the expiry of the reinvestment period in August 2013.

The credit quality has improved as reflected in the improvement
in the average credit rating of the portfolio (measured by the
weighted average rating factor, or WARF). As of the trustee's
November 2013 report, the WARF was 2753, compared with 2919 in
January 2013 and 2986 at the time of the last rating action in
August 2011. The weighted average spread also increased to 4.3%
in November 2013, from 3.2% in August 2011.

In consideration of the reinvestment restrictions applicable
during the amortization period, and therefore the limited ability
to effect significant changes to the current collateral pool,
Moody's analyzed the deal assuming a higher likelihood that the
collateral pool characteristics will continue to maintain a
positive buffer relative to certain covenant requirements. In
particular, the deal is assumed to benefit from a shorter
amortization profile and higher spread levels compared to the
levels assumed at the last rating action in August 2011.

The key model inputs Moody's uses 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. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR422.5
million, defaulted par of EUR18.7 million, a weighted average
default probability of 23.4% (consistent with a WARF of 3209 with
a weighted average life of 4.5 years), a weighted average
recovery rate upon default of 46.77% for a Aaa liability target
rating, a diversity score of 40 and a weighted average spread of
4.3%. The default probability derives from the credit quality of
the collateral pool and Moody's expectation of the remaining life
of the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 90.8% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the remainder non first-lien loan corporate assets would recover
15%. In each case, historical and market performance and a
collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
November 2013.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
2.7% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 3263
by forcing ratings on 50% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of the base-
case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of 1) uncertainty about credit conditions in the
general economy and 2) the large concentration of lowly- rated
debt maturing between 2014 and 2015, which may create challenges
for issuers to refinance. CLO notes' performance may also be
impacted either positively or negatively by 1) the manager's
investment strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

1) Portfolio amortization: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales the collateral manager or
be delayed by an increase in loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

2) Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralization levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analyzed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

3) Foreign currency exposure: The deal has significant exposure
to GBP denominated assets. Volatility in foreign exchange rates
will have a direct impact on interest and principal proceeds
available to the transaction, which can affect the expected loss
of rated tranches.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision



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R O M A N I A
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OPTINOVA: Enters Bankruptcy After Reorganization Plan Fails
-----------------------------------------------------------
Irina Popescu at Romania-Insider.com reports that Optinova has
gone bankrupt at the judicial administrator's proposal.

The company had entered insolvency in 2011, Romania-Insider.com
recounts.

According to Romania-Insider.com, the Bucharest Court said the
company's reorganization plan was not respected, as the debtor
failed to manage its business efficiently, adding losses.

In 2011, when the company announced its insolvency, it recorded a
turnover of RON2.9 million (EUR685,000) and losses of RON1.41
million (some EUR333,000), Romania-Insider.com relates.

The following year, Optinova had a turnover of RON2 million
(EUR449,000) and losses of some RON393,000 (some EUR 85,000),
Romania-Insider.com discloses.

Optinova is one of the most important players in the Romanian
medical optics market.



=========
S P A I N
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AYT FONDO: Moody's Puts B2-Rated Notes Under Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed the B2 ratings of the Series
E1 and E2 Notes issued under the AyT FONDO EOLICO, FTA program
(AyT Fondo Eolico) on review for downgrade. This rating action
follows the rating action announced by Moody's on December 30,
2013, which placed on review for downgrade the B3 rating of the
notes' guarantor, NCG Banco S.A.

The affected ratings are:

Issuer: AyT FONDO EOLICO, FTA

    EUR7.7M E1 Notes, B2 Placed Under Review for Possible
    Downgrade; previously on Jul 9, 2013 Downgraded to B2

    EUR7.6M E2 Notes, B2 Placed Under Review for Possible
    Downgrade; previously on Jul 9, 2013 Downgraded to B2

Ratings Rationale

The rating action follows the rating action announced by Moody's
on December 30, 2013, which placed on review for downgrade the B3
rating of the notes' guarantor, NCG Banco S.A.

As Moody's analysis of the likelihood of payments under the notes
primarily relies on a guarantee from NCG Banco S.A., the ratings
of the notes have been fully linked to those of the bank itself.
In 2008, however, the guarantor strengthened its collateral
guarantee in making cash deposits (for about a third of the
outstanding balance of each class of notes). The cash deposits
are currently held at the paying agent Barclays Bank PLC,
Sucursal en Espana.

Moody's rating methodology takes into account the joint benefit
of the guarantee and of the cash deposits. The rating agency
assumes a default probability for the notes that is consistent
with the rating of the guarantor but currently includes in its
recovery assumption the benefit of the cash deposit, in addition
to a claim on the guaranteeing bank for the residual amount of
the principal. As a result, Moody's currently rates the notes one
notch above the rating of the guaranteeing bank.

The methodology used in this rating was Rating Transactions Based
on the Credit Substitution Approach: Letter of Credit-backed,
Insured and Guaranteed Debts published in March 2013.

   -- Factors that would lead to an upgrade or downgrade of the
      rating

AyT Fondo Eolico notes ratings may be upgraded or downgraded as a
consequence of NCG Banco S.A. rating downgrade or upgrade.

THE TRANSACTION

AyT Fondo Eolico represents the securitization of loans granted
for the purpose of developing different Eolic projects in the
region of Galicia. These projects are established under the
Galician Eolic Plan, "Plan Eolico Estrategico", which has been
approved by the Galician government to promote the development of
Eolic parks within the region of Galicia.

The transaction features a guarantee from NCG Banco S.A. on any
principal payments due on the loans. NCG Banco S.A. also
guarantees the portion of interest that does not depend on the
turnover of the debtor. However, there is no guarantee that
bondholders will receive the variable amount (2.75% of turnover)
of interest they are entitled to.

Moody's ratings do not address the timely payment of this portion
of interest, but only the 1) timely payment of interest accrued
at the reference index plus 25 basis points (bps); and 2) payment
of principal at final legal maturity of the notes (in October
2014 and December 2016, respectively).

No cash flow analysis or stress scenarios have been conducted as
the rating was directly derived taking into account the joint
benefit of the guarantee and of the cash deposits.


CAJA DE AHORROS: Bailout Cost May Reach EUR15 Billion
-----------------------------------------------------
Esteban Duarte and Emma Ross-Thomas at Bloomberg News report that
Spain's Economy Minister Luis de Guindos said the country's 2011
bailout of savings bank Caja de Ahorros del Mediterraneo (CAM)
may cost as much as EUR15 billion (US$21 billion) because its
assets performed worse than expected.

Banco Sabadell SA bought the failed savings bank known as CAM for
EUR1 after Spain's deposit-guarantee fund, financed by the
nation's banks, injected EUR5.25 billion into the lender and
offered guarantees against certain assets souring, shielding the
national budget from losses, Bloomberg relates.

According to Bloomberg, Mr. De Guindos said on Monday the assets
included in the so-called asset-protection plan had performed
worse than predicted, and the total cost of the cleanup may
amount to as much as EUR15 billion.

Bloomberg notes that an Economy Ministry spokesman said the
additional costs for CAM, based in Alicante, southeastern Spain,
will be borne by the deposit-guarantee fund, not the taxpayers.

In the 2011 deal, brokered in the last weeks of Spain's previous,
Socialist government, the deposit-guarantee fund recapitalized
CAM, which had run up losses of EUR1.73 billion in the first nine
months of the year, Bloomberg recounts.  Sabadell said at the
time the fund then agreed to guarantee 80% of losses that may
arise from EUR24.6 billion of problem assets, Bloomberg relays.

Caja de Ahorros del Mediterraneo (CAM) is a savings bank that
attracts deposits and provides commercial banking services in
Spain.


CIRSA GAMING: S&P Revises Outlook to Stable & Affirms 'B+' CCR
--------------------------------------------------------------
Standard & Poor's Rating Services revised its outlook on Spain-
based gaming company Cirsa Gaming Corp. S.A. to stable from
negative.  S&P also affirmed the 'B+' long-term corporate rating
on Cirsa.

At the same time, S&P assigned a 'B+' issue rating to Cirsa's
EUR120 million bond tap.  The recovery rating on these notes is
'4', indicating S&P's expectation of average (30%-50%) recovery
for noteholders in the event of a payment default.

S&P also affirmed its 'B+' issue rating on the existing
EUR780 million senior unsecured notes.  The recovery rating on
these notes remains unchanged at '4', reflecting S&P's
expectation of average (30%-50%) recovery for noteholders in the
event of a payment default.

The outlook revision incorporates S&P's view that the
EUR120 million tap issue improves Cirsa's liquidity.  It removes
some bank refinancing risk, resets the revolving credit facility
(RCF) to its EUR50 million availability, and allows Cirsa to
maintain a sizable cash balance.

S&P understands that Cirsa will use part of the cash raised for
selective acquisitions.  However, S&P also takes into account the
group's ongoing resilient operating performance -- which further
supports S&P's outlook revision -- despite some notable weakness
in Argentina, Spain, and Italy.  S&P expects Cirsa's Standard &
Poor's-adjusted EBITDA for 2013 to increase by about 5% to
EUR395 million compared with 2012.  This rise is principally due
to improved adjusted margins by about 50 basis points to roughly
25%, and it is driven by operating efficiencies, the installation
of additional slot machines in better performing halls, and the
expansion of existing halls in Panama and Colombia.

Cirsa is a privately owned gaming company that operates slot
machines, casinos, and bingo halls in Latin America, Spain, and
Italy.  The rating on Cirsa reflects S&P's view of its "weak"
business risk profile.  This stems from the regulatory framework
in which the group operates and S&P's view of political risks in
Latin America.  This is particularly the case in Argentina, where
the group generates about 25% of its EBITDA, given the
substantial macroeconomic risks S&P continues to see.  In
addition, Cirsa's earnings in Spain and Italy are increasingly
constrained by the currently weak economic conditions in both
countries.  In Italy, S&P has seen recent gaming tax increases,
which further limit earnings capacity generation.  Nevertheless,
S&P's assessment is supported by the group's leading positions in
the low-stake, high-repeat, cash-generative profitable businesses
and its geographically diverse portfolio.  In addition, Cirsa
benefits from regulatory barriers to entry, given the licensing
and exclusivity agreements requirements with site owners in Spain
and Italy.

S&P views Cirsa's financial risk profile as "aggressive."  This
reflects the group's unhedged open foreign exchange positions --
which imply currency translation risks -- its fairly modest free
operating cash flow (FOCF) after capital expenditures (capex),
and its financial policy, which we regard as aggressive.  These
weaknesses are somewhat mitigated by the group's cash-generative
characteristics and manageable maintenance capex requirements.
Moreover, S&P believes that Cirsa's management is capable of
maintaining a financial risk structure commensurate with the
current ratings.

S&P applies its criteria for rating above the sovereign because
it assess the group as having material (roughly 25%) exposure to
the lower-rated sovereign of Argentina.  According to S&P's
criteria, it assess the group's exposure to Argentina's country
risk as "moderate."  The group has passed S&P's stress test on
its operations (including a drop in GDP, depreciation of the
local currency, and higher inflation).  Additionally, in S&P's
view, Cirsa has enough financial flexibility to withstand a
period of sovereign stress in Argentina.

S&P's base case assumes:

   -- In 2014, uncertainty in Argentina will keep growth low, and
      overall flat to low-single-digit percentage revenue growth
      across the group's markets;

   -- A fairly consistent adjusted EBITDA margin, leading to
      stable profits in 2014; and

   -- Sizable capex and plans for several acquisitions in 2014,
      which will translate into neutral to slightly positive
      FOCF.

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

   -- An adjusted ratio of debt to EBITDA of approximately 3.5x
      in 2014 and 2015;

   -- Adjusted EBITDA interest coverage of about 3.0x over the
      next two years; and

   -- Adjusted FOCF to debt of nearly 5%, which reflects the
      group's financial policy of reinvesting most of its
      generated cash flows into its operations.

The stable outlook reflects S&P's view of Cirsa's "adequate"
liquidity, based on its projection that the group will maintain
sufficient liquidity during the next 12 months and that the
group's EBITDA will comfortably cover interest expense over the
same period.

S&P believes that rating upside is limited over the next 12
months.  However, S&P could consider a positive rating action if
Cirsa's ongoing solid operating performance resulted in notable
positive FOCF on a consistent basis, and it moved toward a
financial policy consistent with a higher rating.

The ratings could come under pressure if liquidity weakened
sharply.  This could stem from weaker-than-anticipated trading
conditions if further restrictions on repatriating cash flows
from Argentina materialized, or if Cirsa were unable to control
capex. S&P could also take a negative rating action if the
Standard & Poor's-adjusted EBITDA interest coverage figure fell
toward 2x. Moreover, rating pressure could arise if FOCF
unexpectedly turned negative.


CODERE SA: Won't Be Making Jan. 15 Bond Coupon Payment
------------------------------------------------------
Reuters reports that Spanish gaming group Codere said it would
not make an interest payment due today, Jan. 15, on a 2015 bond
issue, adding that it was continuing debt restructuring
negotiations with creditors.

The company sought protection from creditors and started talks to
avoid insolvency earlier in January, Reuters notes.

Codere SA is a Spain-based company engaged, together with its
subsidiaries, in the operation of activities related to the
private gaming sector, principally in the operation of arcade and
slot machines, sports betting houses, bingo halls, casinos and
racetracks.  The Company has presence in Spain, Italy, Argentina,
Brazil, Colombia, Mexico, Panama and Uruguay.

                           *     *     *

As reported by the Troubled Company Reporter-Europe on Dec. 23,
2013, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CC' its long-term corporate credit
rating on Spain-based gaming company Codere S.A.  At the same
time, S&P lowered its issue rating on the EUR760 million senior
notes due 2015 issued by Codere Finance (Luxembourg) S.A. to 'D'
(default) from 'CC'.  The recovery rating on these notes remains
unchanged at '4', reflecting S&P's expectation of average (30%-
50%) recovery in the event of a payment default.



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


STENA AB: Moody's Assigns '(P)B2' Rating to Sr. Unsecured Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 rating
to the proposed USD400 million senior unsecured notes to be
issued by Stena AB. The outlook on Stena's ratings is stable.

Moody's issues provisional ratings in advance of the final sale
of securities and these only reflect Moody's opinions regarding
the transaction. Upon closing of the refinancing and a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings to Stena's proposed bond issuance. A
definitive rating may differ from a provisional rating.

Ratings Rationale

Stena's Ba3 corporate family rating (CFR) assumes that despite a
deterioration of the credit metrics in the past couple of years,
Stena's financial profile will improve significantly over the
next 12 to 18 months strengthening the group's positioning in the
current rating category from 2014. Stena's leverage peaked in
2012 and 2013, due to the combined effect of the heavy capital
investment plan implemented during the last five years and the
impact of the 2008-09 crisis on ferry activity, which has reduced
its contribution to the consolidated results, despite the
investments made to increase its profitability. In the next few
years Stena's capital expenditure (capex) is expected to
substantially decrease, allowing the Swedish group to generate
meaningful free cash flow (FCF). Furthermore Moody's expects
Stena to utilize these internally generated cash resources to
reduce the current level of debt and reduce its financial
leverage, measured as debt to EBITDA, as adjusted by Moody's,
below 6x.

Overall, Stena's CFR reflects (1) the company's relatively high
financial leverage both as reported and as adjusted by Moody's --
mostly for leases -- with adjusted debt/EBITDA of 7.2x on a
consolidated level as at end-September 2013; (2) its exposure to
economic downturns and charter-rate volatility of its shipping
activities; and (3) the risks involved in Stena's investment and
trading activities, albeit outside of the restricted group. The
negative credit considerations are offset by (1) Stena's
diversified operations (ferry, shipping, offshore drilling, real
estate and investment activities), including the company's
leading positions in the markets in which it operates; (2) the
backlog of contracted revenues derived from real estate, drilling
and LNG activities; (3) its strong asset base; and (4) the
company's strong brand name and market shares in the ferry
business in Scandinavia, the UK and Germany. The rating also
incorporates the resilience of the activities carried out in the
unrestricted group, which lends some credit support to the
restricted group.

  -- ASSIGNMENT OF (P)B2 RATING TO SENIOR UNSECURED NOTES--

The (P)B2 rating (LGD6 - 91%) assigned to the proposed notes
issuance reflects the fact that the new senior notes, will have
the same seniority as Stena's four outstanding senior unsecured
bond issues, which amounted to around SEK5.2 billion (USD786
million) as of end-September 2013. Proceeds of the notes will be
used to repay existing drawings under some of the group's
revolving credit facility which will be cancelled after the
transaction.

The notes will be unsecured obligations, which rank equally in
right of payment with all the unsecured and unsubordinated debt
of the group. The notes, which are rated two notches below the
CFR, are effectively subordinated to all the secured debt of the
group. Furthermore, given that Stena is a holding company, the
note-holders are structurally subordinated to the subsidiaries'
operating liabilities.

Based on the indenture governing the senior notes, the
subsidiaries that conduct real estate operations, and the two
that primarily invest in securities, are designated as
unrestricted subsidiaries. As a result, they will not be bound by
the restrictive provision of the indenture. As the indenture
contains no limitation as to the amount of debt an unrestricted
subsidiary may incur, it requires that any indebtedness of
unrestricted subsidiaries incurred after offering the notes must
be non-recourse to Stena and its restricted subsidiaries.
Therefore, in our LGD assessment for the restricted subsidiaries
Moody's excluded the secured debt incurred by unrestricted
subsidiaries, taking into account that (1) no cross guarantee
links unrestricted and restricted subsidiaries (in the case of
default, neither group can claim any recourse on the asset of the
other); and (2) no cross-default clauses link the debt of
restricted and unrestricted subsidiaries related to real estate
activities.

Rating Outlook

The stable outlook reflects Moody's view that, despite Stena's
currently weak credit metrics for the rating category, material
improvements in financial ratios are expected in 2014 and 2015 as
Moody's understands the company is planning to use the free cash
flow that will be generated by its operations to deleverage its
capital structure. The stable outlook also reflects our
understanding that the company will not enter in sizeable
discretionary capex or acquisitions.

What Could Change The Rating UP/DOWN

Upward pressure on Stena's ratings -- albeit unexpected in the
medium term -- could develop following (1) a sustainable increase
in internal cash flow generation, with consolidated RCF/net debt
approaching the high teens in percentage terms; and (2)
progressive deleveraging of the group's balance sheet, with total
consolidated debt/EBITDA below 5.0x.

Moody's could downgrade Stena's ratings if it fails to strengthen
its credit metrics. In particular Moody's could downgrade the
rating if the company fails to show progress in reducing its
consolidated debt/EBITDA towards 6.0x and in maintaining its
consolidated EBIT interest cover above 1.5x. Failure to evidence
a path for the restricted group to reduce debt/EBITDA towards
5.0x and to improve restricted group retained cash flow (RCF)/net
debt towards the mid-teens in percentage terms might also result
in a rating downgrade. Downward rating pressure could also result
from (1) Stena's developing an increased appetite for risk in its
trading activities; and (2) any significant deterioration in the
group's liquidity profile.

Principal Methodology

The principal methodology used in this rating was the Global
Shipping Industry published in December 2009. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June 2009.

Headquartered in Gothenburg, Sweden, Stena AB is one of the
largest entities within the "Stena Sphere" of companies, fully
controlled by the Olsson Family. Stena AB is a holding company
engaged in various business divisions, including ferry
operations, shipping, offshore drilling, real estate and other
investment/trading activities. At the end September 2013, the
group had last-12-months consolidated turnover of approximately
SEK29.4 billion (USD4.5 billion).



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


MRIYA AGRO: S&P Revises Outlook to Stable & Affirms 'B-' CCR
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised to
stable from negative its outlook on Ukrainian farming company
Mriya Agro Holding PLC.  At the same time, S&P affirmed its 'B-'
long-term corporate credit rating on Mriya.  The recovery rating
on the company's debt issues remains unchanged.

The outlook revision follows S&P's similar action on Ukraine
where Mriya's core assets are concentrated.  S&P believes that
the improved creditworthiness of the sovereign will reduce the
likelihood of the government instructing export companies to
convert their hard currencies, which could otherwise weigh on
Mriya's dollar-denominated debt service.

The rating on Mriya reflects S&P's assessment of the company's
"vulnerable" business risk profile and "significant" financial
risk profile, as S&P's criteria define the terms.

S&P acknowledges that Mriya generates about 80% of its revenue
through export, and consequently holds most of its cash offshore.
This large amount of revenue denominated in dollars ensures debt
service and is critical to our assessment of the company's
liquidity as "adequate."  Still, S&P thinks that improved
creditworthiness of the sovereign reduces the risk of
restrictions on the transfer of funds outside Ukraine and of
stringent currency controls.

                         Upside scenario

Mryia's stand-alone credit profile of 'b+' could lead to a higher
rating if S&P was to raise its sovereign credit rating and T&C
assessment on Ukraine and if S&P saw lower risk related to
currency controls or repatriation requirements.

                         Downside scenario

If S&P was to lower its ratings on Ukraine and revise its T&C
assessment downward, this could lead to a similar rating action
on Mryia, but not automatically, especially if the company was
able to show resilience to country-specific factors, including
the risk of stricter currency restrictions.  S&P notes that Mriya
benefits from recurrent streams of foreign currency inflows
stemming from exports.  This, combined with offshore cash
accounts, mitigates local T&C issues.



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


CANOPIUS SYNDICATE 4444: Moody's Reviews B Continuity Opinion
-------------------------------------------------------------
Moody's Analytics placed the B(Average), stable outlook,
continuity opinion of Lloyd's syndicate 4444 (Canopius Managing
Agents Limited) under review for possible upgrade following the
announcement that NKSJ Holdings ("NKSJ") had signed an agreement
to purchase 100 per cent of the shares of Canopius Group Limited.

Syndicate 4444 is managed by Canopius Managing Agents Limited,
whose ultimate holding company is Canopius Group Limited
(Canopius), which is predominantly backed by private equity funds
managed by Bregal Capital LLC. The syndicate writes a composite
account with a material binding authority book.

For 2014, syndicate 4444 has a capacity of GBP700 million with
Canopius holding a 67% interest in syndicate 4444. Canopius also
holds a 69% interest in syndicate 958 (Continuity Opinion B
(Average)), which from 2014 is being written in parallel with
syndicate 4444, business being split 80:20 syndicate 4444:
syndicate 958, with the syndicates' combined effective capacity
GBP875 million.

Syndicate 4444 recorded an annually accounted profit of 11% of
Net Premium Earned (NPE) for 2012 on a combined ratio of 95%
(including forex) at 31.12.12. Moody's stated that, in terms of
reported results, and including the results of syndicates merged
in, on a cross-cycle basis the syndicate had recorded average
profits of 4% of NPE for 2004 to 2012 under annual accounting,
performing in line with B (Average) continuity opinion benchmark
returns in terms of indicative average annual returns on capital.

NKSJ and Canopius announced in December 2013 that NKSJ's
subsidiary, Sompo Japan Insurance Inc. ("Sompo") (Moody's
Investors Service A1 Insurance Financial Strength Rating) was due
to acquire Canopius in the second quarter of 2014. On completion,
Canopius is due to operate as Sompo's international, Specialty
insurer under its existing brand and management, continuing its
current growth strategy.

Moody's commented that Canopius' 2014 share of syndicate 958 and
syndicate 4444's combined 2012 Net Premium Written (NPW)
represented some 5% of Sompo's 2012 NPW and 3% of ultimate group,
NKSJ's 2012 NPW, although the full details of NKSJ's
participation in the combined syndicates' operations had not yet
been released. Furthermore, no disclosure had yet been made of
any public commitment of additional support that might be made by
NKSJ on completion of the acquisition.

However, with the operation likely to be material to Sompo and
with the syndicate's 5-year average indicative cross-cycle
returns on capital in line with the lower end of the B+ (Above
Average) peer group, Moody's has placed the B (Average)
continuity opinion of Canopius syndicate 4444 under review for
possible upgrade, reflecting Moody's view of relative performance
and continuity prospects for the syndicate over the insurance
cycle.

Moody's stated that the review would focus on confirming
completion of the acquisition and considering any potential
formal commitment to the syndicate from Sompo, should any formal
commitment be made. Moody's continued that any upgrade was likely
to be limited to a one-notch upgrade to B+ (Above Average),
subject to the proposed acquisition being completed.

The last action was in June 2010 when syndicate 4444's B-
(Below Average), positive outlook, continuity opinion was
upgraded to B (Average) and a stable outlook assigned.

Syndicate 4444 is a composite syndicate, ultimately backed c.67%
by the Canopius Group, with 2014 capacity of GBP700 million that
operates within the Lloyd's of London insurance market.


CANOPIUS SYNDICATE 958: Moody's Reviews B Continuity Opinion
------------------------------------------------------------
Moody's Analytics placed the B(Average), stable outlook,
continuity opinion of Lloyd's syndicate 958 (Canopius Managing
Agents Limited) under review for possible upgrade following the
announcement that NKSJ Holdings ("NKSJ") had signed an agreement
to purchase 100 per cent of the shares of Canopius Group Limited.

Syndicate 958 is managed by Canopius Managing Agents Limited,
whose ultimate holding company is Canopius Group Limited
(Canopius), which is predominantly backed by private equity
funds managed by Bregal Capital LLC. The syndicate writes a
composite account with a material binding authority book.

For 2014, syndicate 958 has a capacity of GBP175 million with
Canopius holding a 69% interest in syndicate 958. Canopius also
holds a 67% interest in syndicate 4444 (Continuity Opinion B
(Average)), which from 2014 is being written in parallel with
syndicate 958, business being split 20:80 syndicate 958:
syndicate 4444, with the syndicates' combined effective capacity
GBP875 million.

Syndicate 958 recorded a 2012 annual loss of 23% of Net Premium
Earned (NPE) on a combined ratio of 125% (including forex) at
31.12.12. Moody's stated that, in terms of reported results,
on a cross-cycle basis the syndicate had recorded average
profits of 4% of Net Premium Earned (NPE) for the period
2004 to 2012 under annual accounting, albeit benefiting from a
material forex gain in 2008, performing in line with the
B (Average) peer group in terms of indicative average annual
returns on capital, but that more recent 5-year indicative
average annual returns on capital had been in line with B- (Below
Average) benchmarks.

Moody's continued, however, that with the syndicate operating
under Canopius management from August 2012 and with its business
being written in parallel with syndicate 4444 from 2014, Moody's
currently considered that its relative performance and continuity
prospects should be in line with those of Canopius syndicate 4444
and the B (Average) peer group.

NKSJ and Canopius announced in December 2013 that NKSJ's
subsidiary, Sompo Japan Insurance Inc. ("Sompo") (Moody's
Investors Service A1 Insurance Financial Strength Rating) was due
to acquire Canopius in the second quarter of 2014. On completion,
Canopius is due to operate as Sompo's international, Specialty
insurer under its existing brand and management, continuing its
current growth strategy.

Moody's commented that Canopius' 2014 share of syndicate 958 and
syndicate 4444's combined 2012 Net Premium Written (NPW)
represented some 5% of Sompo's 2012 NPW and 3% of ultimate group,
NKSJ's 2012 NPW, although the full details of NKSJ's
participation in the combined syndicates' operations had not yet
been released. Furthermore, no disclosure had yet been made of
any public commitment of additional support that might be made by
NKSJ on completion of the acquisition.

However, with the combined operation likely to be material to
Sompo and Canopius' combined operation's lead syndicate 4444's
5-year average indicative cross-cycle returns on capital in line
with the lower end of the B+ (Above Average) peer group, Moody's
has placed the B (Average) continuity opinion of Canopius
syndicate 958 under review for possible upgrade, reflecting
Moody's view of relative performance and continuity prospects for
the syndicate over the insurance cycle.

Moody's stated that the review would focus on confirming
completion of the acquisition and considering any potential
formal commitment to the syndicate from Sompo, should any formal
commitment be made. Moody's continued that any upgrade was likely
to be limited to a one-notch upgrade to B+ (Above Average),
subject to the proposed acquisition being completed.

The last action was in June 2012 when the syndicate's B+ (Above
Average), under review for possible downgrade, continuity opinion
was downgraded to B (Average) and a stable outlook assigned.

Canopius Syndicate 0958 is a Composite syndicate, ultimately
backed c.69% by the Canopius Group, which operates within the
Lloyd's of London insurance market.


CO-OPERATIVE GROUP: S&P Raises CCR & Unsec. Debt Ratings to B+
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating on the Co-operative Group Ltd. to
'B+' from 'B'.  The outlook is stable.

At the same time, S&P raised the senior unsecured debt ratings to
'B+' from 'B'.  The recovery rating on the group's senior
unsecured debt is unchanged at '3', indicating S&P's expectation
of meaningful (50%-70%) recovery for debtholders in the event of
a payment default.

In addition, S&P raised the issue ratings on the new subordinated
notes due 2025 issued by the Co-operative Group to 'B-' from
'CCC+'.  The recovery rating on the notes is unchanged at '6',
indicating S&P's expectation of negligible (0%-10%) recovery for
debtholders in the event of a payment default.

The upgrade reflects that the Co-operative Group will incur less
debt to support the recapitalization of the Co-operative Bank
(the bank) than previously anticipated.  The group's indebtedness
will be less than under the earlier plan, which had envisaged the
group contributing up to GBP1 billion towards the bank's capital.

As part of the "liability management exercise" (LME), the group
issued GBP129 million of new subordinated notes in exchange for
certain preference shares and subordinated bonds previously
issued by the bank.  The recapitalization plan also calls for the
group to inject GBP333 million of common equity into the bank by
the end of 2014.  Management expects to fund this through the
sale of the group's general insurance business and the proceeds
of the recently completed sale of the life insurance business to
the Royal London Mutual Insurance Society for about GBP219
million.  S&P notes that, if management is not able to sell the
general insurance business on time, the group could meet its
required capital contribution if it reduces capital expenditure
and sells some additional assets.

Following the completion of the recapitalization, S&P forecasts
that the group's adjusted debt to EBITDA will be in the range of
4x to 4.5x at the end of 2014, with adjusted funds from
operations (FFO) to debt of about 15%.  The group has also reset
its financial covenants, resulting in adequate covenant headroom.
As a result, S&P now considers the group's liquidity to be
"adequate," as its criteria define the term, and S&P is revising
its assessment of the group's financial risk profile upward to
"aggressive" from "highly leveraged."  However, S&P's assessment
of the group's financial risk profile is constrained by the
group's inability to raise public equity due to its status as a
co-operative and its substantial operating lease commitments.

Following these transactions, S&P notes that the group's
shareholding in the bank has reduced to 30%, although it remains
the largest shareholder in the bank and the bank continues to
share the Co-operative brand.  S&P therefore sees a residual, if
much diminished, incentive for the group to provide further
support to the bank in case of need, even though S&P understands
that it would not be obligated to do so.  Management maintains
that on completion of the GBP1.5 billion recapitalization, the
bank will not be dependent on additional support from the group.

In any case, S&P believes the group would be constrained in
providing any further substantial capital support to the bank,
beyond the GBP333 million equity contribution in 2014.  More
generally, the group would have no meaningful capacity to support
the bank's liquidity.  Nevertheless, S&P continues to regard the
bank's creditworthiness as relevant to our ratings on the group.

S&P continues to assess the group's management and governance as
"weak."  This is based on S&P's view of the significant strategic
and financial missteps that have led to losses, S&P's expectation
of further losses to come, and the need to recapitalize the Co-
operative Bank.  In recent months, there has been substantial
turnover in several key roles in top management, at both the
group and the bank level.  The Co-operative Group views these
management changes as a positive development, which they consider
have resulted in a stronger and more experienced management team.

"We continue to assess the Co-operative Group's business risk
profile as "satisfactory," based on its position as the U.K.'s
largest consumer co-operative and fifth-largest food retailer.
The group also has a well-recognized brand and large store
network, comprising local, convenience, and midsize stores.  Our
base-case forecasts factor in nominal growth in group revenues of
less than 1%, with the adjusted EBITDA margin remaining less than
7% in 2014, given an intensely competitive trading climate and
subdued macroeconomic conditions in the U.K.  We view the
profitability of the trading group, as measured by EBITDA
margins, as average compared with peers (in the 5%-10% range),"
S&P said.

S&P views the Co-operative Group's liquidity as "adequate."  S&P
estimates that the company's sources of liquidity will likely
exceed its uses by 1.2x or more over the next 12 months, based on
its forecasts below.

S&P estimates that the trading group's liquidity sources amount
to more than GBP1.3 billion for the next 12 months.  These
include:

   -- Cash balances of more than GBP200 million at the group;

   -- A cash inflow from disposals of about GBP275 million, not
      including the proceeds from the sale of insurance
      businesses;

   -- Availability of at least GBP400 million under revolving
      credit facilities maturing in 2017;

   -- FFO generation of around GBP450 million; and

   -- Neutral to moderately positive working capital.

S&P estimates the trading group's liquidity uses over the next 12
months to be about GBP500 million, comprising capital expenditure
of about GBP450 million and member payments of about
GBP50 million.

Management expects to fund the group's GBP333 million capital
contribution to the Co-operative Bank through the sale of the
group's general insurance business and the proceeds of the
recently completed sale of the life insurance business, which
amounted to about GBP219 million.  S&P notes that, if management
is not able to sell the general insurance business on time, the
group could meet its required capital contribution if it reduces
capital expenditure and sells additional assets.

The stable outlook reflects S&P's view that the Co-operative
Group will focus on improving its operating performance and
deleveraging its balance sheet following the transactions to
support the bank recapitalization.  S&P also anticipates that the
group will maintain its Standard & Poor's-adjusted ratio of debt
to EBITDA at 4x to 4.5x and FFO to debt of about 15%.
Furthermore, following the reduction of the group's shareholding
in the Co-operative Bank to 30%, the stable outlook assumes that
the group will not have to make any capital contribution to the
bank beyond that agreed in the recapitalization plan.

S&P could raise the ratings if the Co-operative Group sustainably
improves its adjusted financial metrics, such that debt to EBITDA
is less than 4x.  In S&P's view, this could happen as a result of
improved operating performance in the food retail business,
bolstered by significant disposals.  An upgrade would also depend
on S&P's increased confidence that the Co-operative Bank will be
able to support itself and not require further financial support
from the group.

S&P could lower the ratings if it sees renewed risks and
uncertainties relating to the bank that may affect the group.
These could include severe problems with the bank's restructuring
or evidence of franchise damage that affects the group's trading
businesses.

S&P could lower the rating if management is unable to turn around
the food retail business or if weak financial policy execution
causes the group's adjusted debt to EBITDA to rise to more than
5x.  This could also occur if the group is unable to dispose of
the general insurance business or unable to realize the proceeds
of the sale of the life insurance business, and does not mitigate
this with other disposals or lower capital expenditure.


DMI (UK): Enters Administration, 23 Jobs Axed
---------------------------------------------
InsolvencyNews reports that car component manufacturer DMI (UK)
Ltd has entered administration, resulting in the loss of 23 jobs.

Ian Kings -- ian.kings@bakertilly.co.uk -- and Steven Ross --
steven.ross@bakertilly.co.uk -- from Baker Tilly were appointed
as joint administrators on Jan. 8, 2014, following "difficulties
in generating business," which led to a decline in work and an
increase in financial losses for the company over the past two
years.

The administrators are currently seeking a buyer for the
business.

The spokesman for DMI (UK) said: "We had big customers who were
buying quite a lot from us but that then fell to around 20% of
what we had anticipated and budgeted for.

"We brought some work back in but that didn't achieve anything
like we were hoping and it actually exacerbated matters, and we
stopped that a few months ago.

"With losses mounting, we got to a point where we couldn't
survive any longer. Even with the deepest of pockets you cannot
carry on with big losses forever."

Based in North Shields, North Tyneside, DMI (UK) Ltd provides
treating and reconditioning components for luxury car brands such
as Rolls Royce.


NATIONAL BANK UK: Fitch Affirms 'B-' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed National Bank of Egypt's (NBE), its
wholly-owned subsidiary, National Bank of Egypt (UK) Ltd's
(NBEUK), and Commercial International Bank's (CIB) Long-term
foreign currency Issuer Default Ratings (IDR) at 'B-' and revised
the Outlooks to Stable from Negative.

The Outlook revision on NBE, NBEUK and CIB reflect the rating
action taken on the Arab Republic of Egypt's ratings.

NBE's and CIB's Viability Ratings (VR), which are highly linked
to the sovereign's ratings, have also been affirmed at 'b-' and
'b', respectively.

Credit Agricole Egypt's (CAE) Support Rating, which is also
linked to the sovereign's ratings, has been affirmed at '4'.

NBE's, CIB's and CAE's National Ratings have been affirmed as
Fitch considers that their relative creditworthiness remains
unchanged.

KEY RATING DRIVERS - IDRs, SUPPORT RATINGS AND SUPPORT RATING
FLOORS

NBE's Long-term and Short-term IDRs are equalized with Egypt's
Long-term foreign currency IDRs, with the Egyptian authorities'
strong propensity to support the bank constrained by the
limitations on their ability to do so (as indicated by Egypt's
'B-' rating).

NBE is wholly owned by the Egyptian state. It is Egypt's largest
bank by assets, with a dominant domestic franchise, especially in
customer deposits.

NBEUK's IDRs are in line with its parent's IDRs and, in turn,
Egypt's Long-term foreign currency IDRs. They reflect Fitch's
view that there is a limited probability of support from the
Egyptian state via NBE.

CIB's Long-term IDR is driven by its VR but is constrained by
Egypt's Country Ceiling of 'B-'. CIB is the leading private
sector bank in Egypt.

CAE's Support Rating reflects Fitch's belief that Credit Agricole
(A/Stable) has a high propensity to support its Egyptian
subsidiary, but that this likelihood of support is constrained by
the Egyptian sovereign ratings. CAE is about 60% owned by Credit
Agricole and is part of Credit Agricole's presence and strategy
in the Middle East and North Africa region.

RATING SENSITIVITIES - IDRs, SUPPORT RATINGS AND SUPPORT RATING
FLOORS

The ratings are sensitive to the Egyptian sovereign ratings, and
any changes would reflect a change in the sovereign ratings.

CAE's Support Rating is also sensitive to any change in Credit
Agricole's propensity or ability to provide support.

KEY RATING DRIVERS - NATIONAL RATINGS

NBE's, CIB's and CAE's National Ratings reflect their relative
ranking in the market for local currency risk.

RATING SENSITIVITIES - NATIONAL RATINGS

The ratings are sensitive to any change in Fitch's view of the
relative ranking of the banks, which could arise as a result of
their being affected to differing degrees by developments
(positive or negative) in the market.  The Outlooks on the
National Ratings are Stable, reflecting Fitch's expectation that
the relative ranking of the three banks will remain stable.

KEY RATING DRIVERS - VR

NBE's VR reflects the close ties between its creditworthiness and
that of the Egyptian sovereign, including through substantial
holding of government debt.

Given that virtually all of NBE UK's funding and its main
business are dependent on its connection to the Egyptian
sovereign, through NBE, and NBEUK's strategy capitalizes on NBE's
franchise, Fitch has not assigned a VR to NBEUK.

CIB's VR is effectively capped by its high exposure to the
domestic economic environment and significant holdings of
Egyptian sovereign debt. However the VR takes into account the
strength of the bank's local franchise and experienced
management, its consistently strong profitability, sound asset
quality and liquidity. The VR remains above its foreign currency
IDR as Fitch considers that, despite the difficult conditions in
the domestic market, CIB's intrinsic creditworthiness remains
among the strongest in the sector.

RATING SENSITIVITIES - VR

The banks' VRs are sensitive to developments in the domestic
operating environment which would impact performance, asset
quality, and/or capitalization. An improvement in the operating
environment could result in upward pressure on the VRs.

In addition, CIB's VR - being the highest among rated banks in
Egypt and above the foreign currency IDR - could be vulnerable to
downward pressure if the bank's exposure to the Egyptian
sovereign were to increase significantly.

The rating actions are as follows:

NBE

  -- Long-term IDR affirmed 'B-'; Outlook revised to Stable
  -- Short-term IDR affirmed at 'B'
  -- National Long-term Rating affirmed 'AA-(egy)'; Outlook
     Stable
  -- National Short-term Rating affirmed at 'F1+(egy)'
  -- Viability Rating affirmed at 'b-'
  -- Support Rating affirmed at '5'
  -- Support Rating Floor affirmed at 'B-'
  -- Senior unsecured debt affirmed at 'B-'

NBEUK

  -- Long-term IDR affirmed 'B-'; Outlook revised to Stable
  -- Short-term IDR affirmed at 'B'
  -- Support Rating affirmed at '5'

CIB

  -- Long-term IDR affirmed 'B-'; Outlook revised to Stable
  -- Short-term IDR affirmed at 'B'
  -- National Long-term Rating affirmed at 'AA(egy)'; Outlook
     Stable
  -- National Short-term Rating affirmed at 'F1+(egy)'
  -- Viability Rating affirmed at 'b'
  -- Support Rating affirmed at '5'
  -- Support Rating Floor affirmed at 'B-'

CAE

  -- National Long-term Rating affirmed at 'AA+(egy)'; Outlook
     Stable
  -- National Short-term Rating affirmed at 'F1+(egy)'
  -- Support Rating affirmed at '4'


S&P ARCHITECTS: Insolvency No Impact GBP15MM Perth Leisure Centre
-----------------------------------------------------------------
Paul Reoch at The Courier reports that plans for a new
GBP15 million leisure centre in Perth are still on track despite
its designers going into administration.

The Courier says S&P Architects have worked on a raft of
projects, including the Olympic pool in London, where the likes
of Michael Phelps and Missy Franklin won medals.

The firm also refurbished the Royal Commonwealth Pool in
Edinburgh and Gateshead International Athletics Stadium, but it
plunged into the red and merged with AFL Architects to become
AFLS+P last year, the report relates.

According to the report, AFLS+P insisted that S&P's financial
difficulties will not affect plans for the new leisure centre to
be built in Perth. The new centre will be called Live Active
Leisure Park and is set to replace the Dewars Centre and Perth
Leisure Pool.

The Courier relates that a spokesperson for S&P Architects said
the company did not have permission to talk to the press about
the situation.

However, Keith Ashton, director with AFLS+P, told The Courier the
work with Perth Leisure Centre "remains unaffected", with the
same team involved in the project.

"We can confirm that S&P and AFL merged early last year and that,
as part of that merger process, the old S&P company was put into
administration," Mr. Ashton told The Courier.

The Courier quotes a spokesperson for Live Active Leisure as
saying that: "This project is very much in its infancy and we
look forward to the first stage, which is progressing the
fundraising in the near future.

"AFLS+P is the appointed lead design team to develop the Perth
Leisure Pool and Dewars site when the project begins.

"The project is entering a very exciting time over the next few
months and we look forward to progressing the fundraising for
this project in the near future."


WHITCLIFFE HOTEL: Placed in Liquidation
---------------------------------------
Julie Tickner at The Telegraph & Argus reports that the
Whitcliffe Hotel has closed its doors and put up a poster telling
would-be guests to contact insolvency practitioners.

T&A relates that the Whitcliffe Hotel in Cleckheaton shut
suddenly and Companies House now has the business listed as being
in liquidation.

According to T&A, the 40-bed wedding venue's website has also
been shut down with only a simple message to customers, which
reads: "We are sorry but the Whitcliffe Hotel is closing for
business from January 4, 2014.

"We should like to take this opportunity to thank all our guests
who visited the hotel while we have been here. Your custom has
been greatly appreciated."

T&A discloses that companies House has the Whitcliffe Hotel
listed as being care of Wilkinson and Partners, based at
Cottingley Business Park. The company confirmed it acted as
accountants for the hotel, but had no one available to speak
about the current situation, the report notes.

Rushtons Accountants Insolvency Practitioners, based in Shipley,
are acting for the hotel and a meeting of creditors was held on
January 6 at its offices in Ashley Lane, says T&A.

The three-star Whitcliffe Hotel had a restaurant and three
conference rooms catering for 120 people.



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


* Moody's Says US Money Market Funds Boost EU Banking Exposure
--------------------------------------------------------------
US money market funds (MMFs) have increased their total exposure
to European financial institutions by 11% in the first two months
of Q4 2013, while euro and sterling MMFs reduced their
investments in European financial institutions by 8% and 5%,
respectively said Moody's Investors Service.

--- US-dollar prime money market funds (MMFs): Exposures to
European financial institutions up 11%; assets under management
(AUM) increased by 3%; weighted-average maturity (WAM) shortened
by 1 day

Exposure to European financial institutions within US-dollar
prime MMFs continued to rise in Q4 2013 (based on October and
November data), with European banks securities increasing by 11%,
driven by increased investment in British and French financial
institutions, which rose by 33% and 11%, respectively. US money
market funds have shown a much stronger appetite for investments
in Europe in recent months, reflecting the receding concerns
about Europe's financial system.

Credit quality in the US MMF portfolios displayed modest
deterioration as investment in Aaa-rated securities decreased to
18% from 20% during Q4. Overnight liquidity remained solid at
35%, whereas offshore domiciled funds have recorded an
improvement, to 40% from 37% during the period.

The funds' sensitivity to market risk has slightly improved, as
the WAM shortened (on average) by one day to 41 days. The average
of Moody's stressed net asset value (NAV) measure of rated MMFs
remained stable at 0.9919.

US-domiciled funds increased AUM by 3% to $689 billion from $667
billion during the period.

--- Euro-denominated MMFs: Exposures to European financial
institutions down 8%, WAM extended by three days

Euro-denominated MMFs' aggregate exposure to European financial
institutions dropped by 8%, and fell to a 12-month low at EUR25.4
billion. Investments in Dutch, German and French financial
institutions recorded the sharpest fall -- decreasing by EUR1.2
billion (down 23%); EUR1 billion (down 33%) and EUR550 million
(down 6%), respectively.

Credit profiles improved as investments in Aa-rated investments
increased by 8% partly because of higher exposures to repurchase
agreements collateralized by Aa sovereign securities.

Prime funds have increased their WAM by 3.5 days to 42.7 days on
average, because exposures to securities with maturities between
1 and 3 months rose to 40% from 30% in Q3. This reflects
managers' continued struggle to generate yield for their
investors amid the ongoing unfavourable interest rate
environment. The average liquidity of these funds declined to
30.8% from 32.9% in Q3.

The WAM increase prompted a slight deterioration of the funds'
sensitivity to market risk. Funds' stressed NAV declined to
0.9923 the first two months of Q4 2013 from 0.9926 at the end of
Q3. Obligor concentration remained relatively low at 19.3%.

Euro-denominated MMFs recorded a modest (0.4%) increase in AUM to
EUR67.1 billion in the first two months of the fourth quarter.

--- Sterling-denominated MMFs: Exposures to European financial
institutions down 5%; WAM and market risk have stabilized

Exposure to European financial institutions fell by 5.4% (down by
GBP2.6 billion) with UK, German and French financial institutions
experiencing the sharpest fall -- decreasing by GBP1.8 billion
(down 16%), GBP700 million (down 16%) and GBP700 million (down
6%), respectively.

Prime sterling-denominated MMF credit profiles experienced a
modest improvement with a 3% increase in the investment of Aaa-
rated and Aa-rated securities, while investment in A-rated
instruments declined by 4%.

WAM of Sterling-denominated prime funds was stable at 42.1 days,
with overnight liquidity at 30.9% of fund portfolios.

The sensitivity to market risk also remained stable in Q4, with
an average stressed NAV at 0.9925.

Sterling-denominated prime MMFs recorded a small (0.4%) decrease
in AUM to GBP99.5 billion in the first two months of the fourth
quarter.

Moody's analysis is based on the portfolios of all Moody's-rated
MMFs in the first two months of Q4 2013. For the US dollar funds,
the data covers 40 US Prime MMFs and 27 European and offshore US
dollar-denominated MMFs. For the euro-denominated MMFs and
sterling-denominated MMFs, the data covers 22 and 21 funds,
respectively, domiciled in Europe.


* Milbank Elects Six New Members to Partnership
-----------------------------------------------
Milbank, Tweed, Hadley & McCloy on Jan. 10 disclosed that it has
elected six new members to the firm's partnership, effective
Jan. 1.  The new partners represent a broad range of practice
areas, including securities and capital markets, project finance,
tax, financial restructuring, space & transportation, and trusts
& estates.

"We are delighted to welcome six new internal partners to the
Milbank Partnership," said Milbank Chairman Scott Edelman.  "Our
decision to elevate this large class reflects our confidence in
our business, which grew substantially in 2013, as well as in the
skills and talents of the individuals whom we are promoting."

The new Milbank partners are:

Austin Bramwell, a member of the Trusts & Estates practice group,
resident in New York.  Mr. Bramwell designs innovative and
sophisticated estate and charitable-giving plans, and has
represented clients before the Internal Revenue Service and
Surrogate's Court.  He has written and lectured extensively on
trust and estate planning, and is an adjunct law professor at
New York University School of Law.  Mr. Bramwell earned his J.D.,
cum laude, from Harvard Law School and his B.A. from Yale.
Before starting at Milbank, he clerked for the Hon. Timothy M.
Tymkovich of the 10th Circuit Court of Appeals.

Roland Estevez of the Project Finance Group, based in New York.
Roland has extensive representation experience of multi-national
companies, financial institutions, development banks, export
credit agencies and multilateral institutions in significant
financings across Latin America spanning a broad spectrum of
sectors, including power, oil/gas, renewable energy,
infrastructure and mining.  Mr. Estevez earned special
recognition this year as a leading project finance lawyer in
Chambers Latin America (Projects) and Chambers USA (Expert in
Projects) and was recently part of the Milbank team that won the
2013 Chambers Latin America Award for Excellence in Project
Finance -- the fourth time in five years that Milbank has won the
award.  Mr. Estevez graduated from the Hofstra University School
of Law, where he was a member of the Hofstra Law Review.  He
received his B.A. from University of South Florida.

Leah Karlov, a member of Milbank's Tax Group, where she was
previously Of Counsel.  Based in Los Angeles, Ms. Karlov focuses
on the tax-efficient structuring of domestic and international
transactions, including M&A, financing, and restructuring
transactions for investment funds, partnerships and multinational
corporations.  She has significant experience in aircraft and
equipment financing and acquisitions, and frequently represents
sponsors, tax equity investors and lenders in connection with the
purchase and construction of facilities that produce electricity
through renewable energy.  Ms. Karlov earned her law degree at
Brooklyn Law School and a B.S.B.A. from Boston University.

Brett Nadritch, a member of the Global Securities Group in
New York.  Mr. Nadritch has significant experience in
representing both issuers and underwriters on debt and equity
offerings, including initial public offerings, investment grade
debt offerings, high yield Rule 144A and Regulation S offerings,
and airline and aviation asset portfolio securitizations;
representing issuers and investors with SEC reporting and
corporate governance obligations; representing both creditors and
debtors in in-court and out-of-court restructurings; and
representing private equity firms in connection with portfolio
company transactions.  Mr. Nadritch earned his J.D. from Columbia
University School of Law, where he was a Harlan Fiske Stone
Scholar, and his B.S. from Yeshiva University.

Peter Newman, a member of the Financial Restructuring Group,
resident in London.  Mr. Newman represents major stakeholders,
including debtors, creditors (individuals as well as ad hoc and
official committees) and prospective investors, in complex
restructurings around the world.  His experience includes a wide
range of court-supervised and out-of-court restructurings of
large- and mid-size companies across a broad range of industries
and jurisdictions, with a particular focus on multifaceted cross-
border transactions.  Peter has spent his entire career with
Milbank, both in the New York and London offices.  He earned his
J.D. from New York University School of Law and his B.A. from the
University of Maryland.

James Pascale, a member of the Transportation and Space Group,
who was formerly Special Counsel.  Mr. Pascale represents clients
in connection with securities offerings, securitizations,
lending, leasing, acquisitions, and financial restructuring
transactions.  His deals are routinely recognized by leading
industry publications, and in 2012 he was named a "rising star"
by Airfinance Journal.  He received his J.D. from Vanderbilt
University and his B.S. from Stetson University.

                          About Milbank

Milbank, Tweed, Hadley & McCloy LLP -- http://www.milbank.com--
is an international law firm that has been providing innovative
legal solutions to clients throughout the world for more than 145
years.  Milbank is headquartered in New York and has offices in
Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, Sao
Paulo, Singapore, Tokyo and Washington, DC.

The firm's lawyers provide a full range of legal services to the
world's leading commercial, financial and industrial enterprises,
as well as to institutions, individuals and governments.
Milbank's lawyers meet the needs of its clients by offering a
highly integrated and collaborative range of services across key
practice groups throughout its global network.  Milbank's
integrated practice is underpinned by its attorneys' acknowledged
technical excellence, sector expertise and a strong tradition of
innovation and client service.


                            *********

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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

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


                            *********


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

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

Copyright 2014.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


                 * * * End of Transmission * * *