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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, February 11, 2015, Vol. 16, No. 30

                            Headlines

B U L G A R I A

UNITED BULGARIAN: S&P Puts 'B' LT CCR on CreditWatch Negative


C R O A T I A

ZAGREBACKA BANKA: Fitch Cuts Viability Rating to 'bb'


C Z E C H   R E P U B L I C

U ROZVARILU: Blanka Ambrozova Takes Over Restaurant Operations


G E R M A N Y

DECO 15-PAN EUROPE 6: Fitch Affirms CCsf Rating on Class E Notes
VIKTORIAGRUPPE: German Court Launches Insolvency Proceedings


G R E E C E

GREECE: Offers Bailout Compromise Ahead of Meeting with Creditors


I R E L A N D

BOSPHORUS CLO I: S&P Assigns Prelim. B Rating to Class F Notes
BOSPHORUS CLO I: Fitch Rates Class F Notes 'B(EXP)sf'


I T A L Y

PARMA FC: Names New President; Seeks to Avert Bankruptcy
RIVA GROUP: Milan Court Declares ILVA Steel Plan Insolvent


N E T H E R L A N D S

V&D: Averts Bankruptcy After Agreement with Banks, Landlords


P O L A N D

KORPORACJA BUDOWLANA: Submits Insolvency Plan


R U S S I A

VOLKSWAGEN BANK: S&P Lowers Rating to 'BB+' on Increasing Risks
X5 RETAIL: Fitch Assigns 'BB' Issuer Default Ratings


S P A I N

CM BANCAJA 1: S&P Lowers Rating on Class D Notes to 'CCC+'
ESMAGLASS HOLDING: S&P Assigns Prelim. 'B+' CCR; Outlook Stable
MBS BANCAJA 2: Fitch Affirms 'CCsf' Rating on Class F Debt


U K R A I N E

FINTEST TRADING: Fitch Withdraws 'C' Issuer Default Rating


U N I T E D   K I N G D O M

CIRCLE HEALTHCARE: Seeks Government Bailout of Nearly GBP10-Mil.
DECO 6 - UK: Fitch Affirms 'Csf' Ratings on 3 Note Classes
LAST MINUTE: May Go Bust Over Ashley's Clothing Firm Collapse
LQD MARKETS: Enters Special Administration


                            *********


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B U L G A R I A
===============


UNITED BULGARIAN: S&P Puts 'B' LT CCR on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'B' long-term counterparty credit rating on United Bulgarian Bank
AD (UBB) on CreditWatch with negative implications.  At the same
time, S&P affirmed its 'C' short-term counterparty credit rating
on UBB.

The CreditWatch placement follows a similar action on UBB's 99%
owner, the National Bank of Greece.

With total assets of Bulgarian lev (BGN) 6.6 billion (about
EUR3.3 billion) as of year-end 2014, UBB is the fourth-largest
commercial bank in Bulgaria, with a market share of about 9.5% by
loans and 10% by retail deposits.  S&P considers UBB to be a
"highly systemically important" bank in Bulgaria and consider the
Bulgarian government "supportive" of the domestic banking system,
as S&P's criteria define these terms.  Because Bulgaria has made
a significant economic adjustment by reducing its deficit, S&P
anticipates that the government would have the capacity to
support UBB if NBG could no longer do so.  However, this does not
result in any uplift to S&P's rating on UBB, which is capped due
to potential risks related to the parent.

S&P considers UBB to be a "non-strategic" subsidiary of NBG.  As
such, the ratings on UBB reflect S&P's assessment of UBB's stand-
alone credit profile (SACP) without factoring in any uplift for
potential parental support in the event of need.  Furthermore,
S&P believes that the rating on UBB is sensitive to the rating on
NBG, and S&P limits the rating on UBB to two notches above that
on the parent to reflect the risk related to the parent.

"We assess UBB's funding as "average" and liquidity as
"moderate," which is a negative rating factor in our opinion,
stemming principally from persisting contagion risk from the
bank's weak parent.  That said, we observed stable core customer
deposits over 2014 in light of severe turbulence in the Bulgarian
banking sector after the failure of the two largest players.  In
2014, the effects for UBB were favorable, partly enhancing the
self-sufficiency of the bank's funding base. As of Dec. 31, 2014,
direct funding from NBG comprised only about 3% of UBB's
liabilities (90% of which represented a subordinated loan with
annual amortization of BGN51 million until 2017).  An additional
0.2% of funding was attributed to the companies under parental
control.  At the same time, in our view, NBG's ownership of UBB
gives rise to potential contagion risk, which we believe could
destabilize its deposit base and constrain its access to
wholesale funding," S&P said.

The CreditWatch placement mirrors that on NBG and reflects S&P's
view that the weakening liquidity position of Greek banks could
affect UBB, in view of its ownership by NBG.  If contagion risk
were to threaten UBB's ability to fund itself and government
support did not materialize, S&P would lower the rating.  A
negative action on NBG could also lead to a similar action on
UBB, but would be unlikely to exceed one notch from the current
level, in the absence of a substantial erosion of the
subsidiary's liquidity.

S&P could affirm the rating on UBB and remove it from CreditWatch
if it took a similar action on NBG and if S&P did not see
evidence of weakening of UBB's funding and liquidity position.



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C R O A T I A
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ZAGREBACKA BANKA: Fitch Cuts Viability Rating to 'bb'
-----------------------------------------------------
Fitch Ratings has downgraded Zagrebacka Banka d.d.'s (ZABA)
Viability Rating (VR) to 'bb' from 'bb+' and removed it from
Rating Watch Negative (RWN). The bank's Long-Term foreign
currency Issuer Default Rating (IDR) has been affirmed at 'BBB-'
with a Stable Outlook.

KEY RATING DRIVERS -- IDRS, SUPPORT RATING

ZABA's Long- and Short-term IDRs and Support Rating are based on
the potential support available from its ultimate parent,
UniCredit S.p.A. (UC; BBB+/Negative/bbb+). Fitch believes that UC
continues to have a strong propensity to support ZABA given the
importance of the Central and Eastern Europe (CEE) region to its
strategy and would normally rate ZABA one notch below UC's IDR.
However, ZABA's Long-term IDR is capped by the Country Ceiling of
Croatia (BBB-). Croatia's Long-Term foreign currency IDR is
'BB'/Stable and the Stable Outlook on ZABA's IDR mirrors that on
the sovereign.

Fitch does not incorporate into ZABA's ratings any potential
support coming directly from ZABA's direct owner, UniCredit Bank
Austria AG (UCBA, A/Negative/bbb+). This is because UCBA's Long-
term IDR currently benefits from Fitch's view of potential
support from the Austrian sovereign due to its systemic
importance. Fitch believes that the Austrian authorities would
probably look to UC to provide support to its CEE subsidiaries
before allowing any Austrian sovereign support to flow through to
these entities. Fitch also considers its expectation of weakening
sovereign support as well as the risk that any potential negative
developments at UC could ultimately also result in deterioration
of UCBA's standalone credit profile, weakening its ability to
provide support to the CEE subsidiaries.

RATING SENSITIVITIES - IDRS, SUPPORT RATING

ZABA's IDRs could be downgraded if (i) UC markedly changes its
CEE strategy, resulting in a lower expectation of parent support
for its subsidiaries in the region in general, and ZABA in
particular; or (ii) Croatia's Country Ceiling was lowered. An
upgrade of ZABA's Long-term IDR would require an upward revision
of the Country Ceiling, which is unlikely at present given the
recent affirmation of the sovereign rating with Stable Outlook.

KEY RATING DRIVERS - VR

The downgrade of ZABA's VR to the level of Croatia's Long-Term
foreign currency IDR reflects Fitch's view of the high
correlation between the sovereign and the bank's credit profile.
The agency believes that ZABA's high direct exposure to the
sovereign (around 27% of total balance sheet assets at end-3Q14,
or 180% of its Fitch core capital), the broader operating
environment, and its marginal geographical diversification mean
that the bank would most likely require extraordinary liquidity
and capital support in case of the sovereign default. Fitch has
also taken into consideration the negative impact that the
macroeconomic environment has had on the bank's credit profile,
in particular on its asset quality. ZABA's VR continues to be
supported by its leading market position, sound funding profile
and adequate capitalization, although these do not fully mitigate
the above risks.

The prolonged period of economic recession has resulted in a
rapid inflow of non-performing loans (NPLs), which rose to
account for 17.8% of total gross loans at end-3Q14 from 4.0% at
end-2008. In 2015, Fitch envisages a further moderate
deterioration in the bank's loan quality despite expecting a
marginal GDP yoy growth of 0.5%, because of the lag effect of the
six years of economic recession on the loan book combined with
subdued new lending. ZABA's material exposure to the troubled
construction and real estate sectors, high private sector
indebtedness and unemployment amplify the credit risks. The
expected regulatory one-year fixing of the CHF/HRK exchange rate
for retail loan repayments should somewhat mitigate new defaults,
although CHF-denominated mortgages accounted for a relatively
moderate 6.5% of ZABA's total gross loans at end-2014

ZABA's funding profile is its key rating strength. The bank
sources most of its funding from customer deposits, while its
wholesale funding is obtained largely from the parent bank. The
stability of the deposit base is underpinned by the bank's strong
customer deposit market share (around one quarter of the system's
total at end-1H14), mostly from retail customers. The bank's
liquidity position is comfortable. However, the liquidity buffer
is predominantly held in Croatian government debt and thus is
sensitive to sovereign stress.

Fitch views ZABA's capitalization as adequate in view of the
challenging operating environment, the bank's risk concentrations
and only moderate coverage of outstanding NPLs. The loss
absorption capacity is substantial. If all NPLs were covered with
impairment reserves, the FCC ratio would drop to 15.3 % at end-
3Q14.

ZABA's pre-impairment profitability has been relatively
resilient, which can be attributed to its strong market
franchise, large overall size (cost efficiencies) and extensive
lending to the broader public sector. However, the bank has
suffered from high loan impairment charges (LICs) and continued
private sector deleveraging. In 2015, Fitch expects ZABA's profit
to drop due to likely loan book contraction, elevated LICs and
the sale of its subsidiary, Istraturist, in 2014. The one-year
fixing of CHF/HRK exchange rate will have a limited negative
impact on the bank's revenue and LICs.

RATING SENSITIVITIES - VR

The VR is sensitive to the further deterioration in the operating
environment, including that evidenced by a potential downgrade of
the sovereign. If growing NPLs and reduced profitability lead to
markedly higher pressure on the bank's capital, this could result
in a downgrade of the VR.

The rating actions are as follows:

  Long-term IDR affirmed at 'BBB-'; Outlook Stable

  Short-term IDR affirmed at 'F3'

  Viability Rating downgraded to 'bb' from 'bb+', removed from
  RWN

  Support Rating affirmed at '2'



===========================
C Z E C H   R E P U B L I C
===========================


U ROZVARILU: Blanka Ambrozova Takes Over Restaurant Operations
--------------------------------------------------------------
CTK reports that Kappa Asset Consulting said Prague's U Rozvarilu
restaurant, whose history dates back to the First Czechoslovak
Republic, continues activities under a new owner, Blanka
Ambrozova, executive of the new owner.

The former operator, U Rozvarilu, filed an insolvency proposal on
itself due to a CZK6.85 million debt, CTK relates.

"I took over the facility and all its employees.  Most of the
equipment belongs to the department store's owner and I bought
something for my own money.  The problems of the former operator
should thus not endanger us," CTK quotes Ms. Ambrozova as saying.



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G E R M A N Y
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DECO 15-PAN EUROPE 6: Fitch Affirms CCsf Rating on Class E Notes
----------------------------------------------------------------
Fitch Ratings has upgraded DECO 15 - Pan Europe 6 Ltd.'s class
A1, A2, B and C notes due 2018 and affirmed the class D and E
notes as follows:

  EUR32.7 million class A2 (XS0307400258) upgraded to 'AAAsf'
  from 'AAsf'; Outlook Stable

  EUR68.2 million class A3 (XS0307400506) upgraded to 'AAsf' from
  'Asf'; Outlook Stable

  EUR52.0 million class B (XS0307401140) upgraded to 'BBBsf' from
  'BBsf'; Outlook Stable

  EUR53.5 million class C (XS0307405133) upgraded to 'BBsf' from
  'Bsf'; Outlook Stable

  EUR41.3 million class D (XS0307405729) affirmed at 'CCCsf';
  Recovery Estimate (RE) 75%

  EUR15.7 million class E (XS0307406453) affirmed at 'CCsf'; RE0%

The transaction was originally the securitization of 10
commercial mortgage loans secured on assets located in Germany,
Austria and Switzerland. In July 2014, four loans remained.
Although three loans have defaulted and one remains current, all
four are trapping surplus cash to amortize the outstanding
balances or fund capital expenditure (capex) on the collateral
(predominantly retail warehouses in Germany).

KEY RATING DRIVERS

The upgrades reflect the switch to sequential principal
allocation and the better than expected performance of the EUR27m
AOK Schwerin loan, which was expected to produce approximately a
30% loss and repaid in full. Other two facilities repaid as
expected, for an aggregate balance of EUR155 million. Of the two
expected repayments, one occurred after loan maturity. Although a
short term extension was granted, the failure to repay timely
ended the modified pro rata principal allocation to the notes.
The class A3 notes' rating remains constrained by event risk
concerning the repayment of the Freiburg loan and the exposure to
two impaired facilities.

The EUR141.9 million Mansford OBI Large failed to repay at its
scheduled maturity in July 2014 and entered special servicing.
The interest coverage ratio (ICR) increased to 5.5x from 1.5x pre
default, as interest payments became floating. This allowed the
securitised loan to be repaid by EUR0.8 million over the last
quarter alone.

The collateral, 10 retail warehouses located across Germany is
fully let predominantly to OBI (a DIY chain) on leases maturing
in 7.4 years (weighted average or WA). The first revaluation
since closing is currently being conducted. Fitch believes that
no equity remains and that the planned asset disposal will result
in a significant loss.

The EUR68.9m Main loan has been in special servicing since
failing to repay at its maturity in July 2011. Since then, the
asset manager has attempted to stabilize asset performance before
the assets are sold. Various tenants have been approached
regarding lease extensions (as the WA remaining lease term of the
32 underlying retail warehouses is short at 3.6 years).
Furthermore, potentially value-enhancing capex measures (store
extensions, adding retail units) have been identified as well as
10 assets which are ready to be sold.

The collateral is currently 93% occupied. Like Mansford OBI, the
loan is benefiting from a floating interest rate in a low-rate
environment. This allowed the repayment of EUR13 million since
the default. Nevertheless, Fitch expects a significant loss as
the loan-to-value (LTV) ratio stands at 139%, based on a 2013
revaluation.

The EUR75.5 million Freiburg loan remains current and will mature
in April 2015. Surplus income has been used to amortize the
facility since July 2012 (in line with the loan maturity),
although the fixed interest rate (at 5.4x) limits the benefits of
the cash sweep. The borrower has announced that it is in
refinancing negotiations. Failing that, Fitch believes that a
floating rate after maturity will help improve the exit position
of the loan sufficiently for a full repayment. The loan is
secured on a shopping centre and a retail asset located in
Freiburg, both near fully let.

The smallest loan, EUR11.8 million Plus Retail, has been in
default since its maturity in 2012. Substantial works on the
largest of the five underlying asset (including lease extensions,
removal of defaulted tenants and reletting) improved the
collateral value, although with an LTV of 137.8% (down from
149.4% 12 months ago) an ultimate loss remains likely. The
application of trapped surplus rent towards further value
enhancing measures or loan redemption partially mitigates the
high leverage.

RATING SENSITIVITIES

Should the Freiburg loan remain outstanding past its maturity,
the senior notes may become subject to rating caps within 18 to
24 months prior to bond maturity. Recoveries below Fitch's
expectations on any of the loans may put downward pressure on the
class C and D notes.

Fitch estimates 'Bsf' recoveries of approximately EUR234m.


VIKTORIAGRUPPE: German Court Launches Insolvency Proceedings
------------------------------------------------------------
CTK reports that State Material Reserves Administration spokesman
Jakub Linka said a German district court has launched insolvency
proceedings with Viktoriagruppe.

According to CTK, Mr. Linka said there is a real danger that the
Czech Republic will not even get a full compensation.

In January, the preliminary insolvency administrator of
Viktoriagruppe refused to acknowledge that diesel oil stored in
the company's German facility belongs to the Czech Republic, CTK
relates.

"If the insolvency administrator includes the oil in the assets
of the bankrupt Viktoriagruppe, it will be sold and the money
acquired by the insolvency administrator will be used to satisfy
creditors.  They will, however, receive only a proportionate part
of the due sum," CTK quotes Mr. Linka as saying.

SSHR intends to lodge its claim by March 16, CTK discloses.

Viktoriagruppe stores Czech diesel oil worth hundreds of millions
crowns.



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G R E E C E
===========


GREECE: Offers Bailout Compromise Ahead of Meeting with Creditors
-----------------------------------------------------------------
Nikolaos Chrysoloras and Eleni Chrepa at Bloomberg News report
that Greece offered compromises ahead of an emergency meeting
with its official creditors today, Feb. 11, as German Chancellor
Angela Merkel remained unyielding over terms of the country's
bailout conditions.

Greek Finance Minister Yanis Varoufakis told lawmakers on Feb. 9
that the government intends to neither tear up the existing
bailout agreement, nor allow the budget to be derailed, Bloomberg
relates.  He said Greece will implement about 70% of reforms
already included in the current bailout accord, Bloomberg notes.

Mr. Varoufakis's proposal will ask for an EUR8 billion increase
in the stock of Treasury Bills the country is allowed, said a
government official who asked not to be named because the
negotiations are confidential, Bloomberg discloses.  He will also
seek the disbursement of EUR1.9 billion of profits that euro
area-central banks made on their Greek bonds holdings, Bloomberg
relays.

German political leaders have said they will not extend more
assistance to Greece without strings attached, according to
Bloomberg.  Ms. Merkel, as cited by Bloomberg, said in Washington
on Feb. 9 that the existing aid programs are the basis for Greek
talks.



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I R E L A N D
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BOSPHORUS CLO I: S&P Assigns Prelim. B Rating to Class F Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services has assigned preliminary
credit ratings to Bosphorus CLO I Ltd.'s class A, B, C, D, E, and
F secured deferrable and non-deferrable floating-rate notes.  At
closing, Bosphorus CLO I will also issue unrated subordinated
notes.

Bosphorus CLO I is a cash flow collateralized loan obligation
(CLO) transaction securitizing a portfolio of senior secured
loans and bonds granted to speculative-grade European corporates.
Commerzbank AG, London Branch will manage the transaction.

Under the transaction documents, the rated notes will pay
quarterly interest unless there is a frequency switch event.
Following this, the notes will switch to semiannual payment.

Since this is a static transaction, the portfolio will be fully
ramped up at closing, with no reinvestment or discretionary
trading permitted thereafter.  However, the portfolio manager
will identify and may dispose of credit-impaired and defaulted
assets during the transaction's life.

At closing, S&P understands that the portfolio will represent a
well-diversified pool of corporate credits, with a fairly uniform
exposure to all of the credits.  Therefore, S&P has conducted its
credit and cash flow analysis by applying its criteria for
corporate cash flow collateralized debt obligations.

In S&P's cash flow analysis, it used a portfolio target par
amount of EUR230.04 million, using the actual weighted-average
spread (4.09%), and the actual weighted-average recovery rates at
each rating level.

The rated notes benefit from the par value ratio tests.  These
ratios track the degree to which the performing collateral is
sufficient to repay principal to the debt investors.  Once the
par value ratios fall below certain documented minimum levels,
the transaction will redirect available interest and principal
proceeds, if required, toward the redemption of senior
liabilities.

The numerator of the par value ratios is adjusted to reflect the
quality of the performing assets.  For example, loans rated 'CCC'
(above a certain threshold) and loans that have defaulted are
included in the numerator of the par value ratios at less than
full par value.

The Bank of New York Mellon, London Branch will be the bank
account provider and custodian.  At closing, S&P anticipates that
the participants' downgrade remedies will be in line with S&P's
current counterparty criteria.

At closing, S&P understands that the issuer will be bankruptcy-
remote under its European legal criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes its preliminary
ratings are commensurate with the available credit enhancement
for each class of notes.

RATINGS LIST

Preliminary Ratings Assigned

Bosphorus CLO I Ltd.
EUR233.40 Million Secured Deferrable And Non-Deferrable
Floating-Rate Notes

Class            Prelim.             Prelim.
                 rating      amount (mil. EUR)

A                AAA (sf)             135.40
B                AA+ (sf)              24.60
C                A+ (sf)               17.50
D                BBB+ (sf)             14.10
E                BB (sf)               15.00
F                B (sf)                 6.90
Subordinated     NR                    19.90

NR--Not rated.


BOSPHORUS CLO I: Fitch Rates Class F Notes 'B(EXP)sf'
-----------------------------------------------------
Fitch Ratings has assigned Bosphorus CLO I Limited's notes
expected ratings as follows:

Class A: 'AAA(EXP)sf'; Outlook Stable
Class B: 'AA+(EXP)sf'; Outlook Stable
Class C: 'A(EXP)sf'; Outlook Stable
Class D: 'BBB(EXP)sf'; Outlook Stable
Class E: 'BB(EXP)sf'; Outlook Stable
Class F: 'B(EXP)sf'; Outlook Stable
Subordinated notes: not rated

Bosphorus CLO I Limited is a static cash flow collateralized loan
obligation (CLO).

KEY RATING DRIVERS

Static Portfolio

The portfolio will be 100% ramped at closing. The manager is only
allowed to sell credit impaired and defaulted obligations. Any
principal proceeds will be used to redeem the notes.

Higher Obligor Concentration

The transaction is exposed to higher obligor concentration than
other CLO transactions with the presented portfolio consisting of
57 assets from 45 obligors. The largest obligor represents 2.61%
and the largest 10 obligors represent 26.08% of the portfolio
notional.

Shorter Risk Horizon

The transaction's weighted average life is 5.68 years and the
legal final maturity is set in November 2023. The shorter risk
horizon means the transaction is less vulnerable to underlying
prices, and economical and asset performances.

Portfolio Credit Quality

The average credit quality of obligors will be in the 'B'/'B-'
range with the weighted average rating factor of the portfolio
34.3. Fitch has credit opinions or public ratings on 100% of the
identified portfolio. There are no 'CCC' rated assets in the
portfolio.

High Recovery Expectations

The portfolio will comprise senior secured loans and bonds.
Recovery prospects for these assets are typically more favorable
than for second-lien, unsecured, and mezzanine assets. Fitch has
assigned Recovery Ratings for all assets in the presented
portfolio.

First Time Manager

Commerzbank AG, London Branch (A+/Negative/F1+) by an independent
and segregated division, has not previously issued a CLO. It
commenced activities in 2007 and has been managing loan funds
since 2009. As of October 2014, its assets under management were
EUR830m.

TRANSACTION SUMMARY

Net proceeds from the notes are being used to purchase a EUR230m
portfolio of 90.2% euro-denominated leveraged loans and 9.8%
bonds. The transaction is static.

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

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

RATING SENSITIVITIES

A 25% increase in the expected obligor default probability would
lead to a downgrade of one to three notches for the rated notes.

A 25% reduction in expected recovery rates would lead to a
downgrade of one to four notches for the rated notes.



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I T A L Y
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PARMA FC: Names New President; Seeks to Avert Bankruptcy
--------------------------------------------------------
According to dpa, Serie A bottom side Parma on Feb. 9 said it has
named a new president and look set to come out of a financial
crisis that has brought them close to bankruptcy.

"The post of president is taken since [Mon]day and with full
powers by Giampietro Manenti," dpa quotes the Parma Web site as
saying.  "Operations will be handled by Fiorenzo Alborghetti with
the assistance of Pietro Leonardi."

Parma footballers and staff have not been paid for six months and
threatened to sue the club on Feb. 16, dpa notes.

Mr. Alborghetti, a manager in the paper industry, and former
director general Leonardi are to handle the procedure to name the
new board on Feb. 19, after personnel salaries and tax payments
are settled, dpa discloses.

"It is one of the principal clubs in Italy.  We will try to
involve Italian and foreign businesses.  I say it: we will pay
everything," Mr. Manenti, as cited by dpa, said, adding that he
had been close to acquiring Parma in October.

About EUR50 million (US$56.7 million) are believed to be needed
to get Parma in the black, while relegation seems unavoidable as
the club sit last on nine points from 21 games, with 17
remaining, dpa states.

Parma Football Club, commonly referred to as just Parma, is an
Italian professional football club based in Parma, Emilia-Romagna
that will compete in Serie A in the 2014-15 season, having
finished in sixth position last season.


RIVA GROUP: Milan Court Declares ILVA Steel Plan Insolvent
----------------------------------------------------------
Gazzetta del Sud On Line reports that Milan's bankruptcy court
declared ILVA, Riva Group's biggest company, insolvent on
Jan. 30, with a debt totaling nearly EUR3 billion, the judges'
ruling said.

The troubled Taranto steel plant is under temporary public
control, a move that Premier Matteo Renzi said in December would
last at most 36 months, the report relates.

According to the report, the industry ministry last month named
former power and environmental executives Piero Gnudi, Enrico
Laghi and Corrado Carrubba as extraordinary commissioners, as
part of the Italian government's massive clean-up and turnaround
project.

Gazzetta del Sud On Line relates that Mr. Gnudi, formerly an ILVA
sub-commissioner, is an ex-sports minister who was chairman of
electrical power company Enel for almost a decade, and said ILVA
could return to profitability by 2017.

The report says the ILVA plant has been shrouded in controversy
in recent years, related to serious pollution it has caused that
has been linked to an unusually high rate of cancers in the area.

Taranto Mayor Ippazio Stefano sent a letter to Renzi in January
in which he said some 3,000 workers have not been adequately paid
and they should be given the highest priority as ILVA creditors,
reports Gazzetta del Sud On Line.

Riva Group is one of Europe's largest steelmakers.



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


V&D: Averts Bankruptcy After Agreement with Banks, Landlords
------------------------------------------------------------
Xinhua reports that V&D has temporarily been saved from
bankruptcy, after the owner, the banks and landlords reached an
agreement on Feb. 9.

Sun Capital, the owner of V&D, the banks and landlords of the V&D
buildings have come to an agreement on a temporary plan to get
the EUR24 million (about US$27 million) needed for short-term
financing, Xinhua says, citing, Dutch broadcaster NOS.

For the longer term, there is a basic agreement that individual
parties continue their talks, with a possibility for rent
reductions in the future, Xinhua discloses.

IEF Capital, owner of 12 buildings, among which the biggest in
Amsterdam, Utrecht, The Hague and Maastricht, and the other
property owners already agreed with the plan on Feb. 7, Xinhua
relates.  The banks and Sun Capital, the owner, followed on
Feb. 9, Xinhua notes.

There is no agreement yet with the unions FNV and CNV, which
filed a lawsuit against the plan of V&D for a pay cut of 5.8%,
Xinhua states.

V&D is a Dutch department store.



===========
P O L A N D
===========


KORPORACJA BUDOWLANA: Submits Insolvency Plan
---------------------------------------------
Reuters reports that Korporacja Budowlana Kopahaus SA said on
Feb. 1 that it submitted to the Regional Court in Szczecin,
Poland, proposal of an insolvency with liquidation plan.

The report relates that the company plans to cash in its assets
via a public sale of the two organized parts of the business:
production and hotels, and liquidation of all the other parts of
the company.

Reuters says the company said it plans to pay with the
accumulated money for the insolvency proceedings and the costs of
running the company in a new form over the next 12 months
following the end date of the insolvency arrangement.

The company plans to change its business profile from production
to retail and focus mainly on western and central Europe.  The
rest of the funds will be used to pay off creditors, Reuter
relays.

The company plans to converse 20% of the outstanding liabilities
of each creditor into shares of a new issue and write off the
rest of the debt, adds Reuters.

Korporacja Budowlana Kopahaus SA manufactures prefabricated
houses for recreational parks, housing estates, and individual
customers primarily in Poland. It also manufactures prefabricated
wooden structures; passive houses; modular homes; and precast
products, including prefabricated walls, ceilings, and roofs.



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


VOLKSWAGEN BANK: S&P Lowers Rating to 'BB+' on Increasing Risks
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
issue ratings to 'BB+' from 'BBB-' on three ruble bonds issued in
2014 by Volkswagen Bank RUS (VW Bank RUS).

The rating action follows the lowering of the foreign currency
sovereign ratings on Russia on Jan. 26, 2015.

VW Bank RUS, a licensed bank domiciled in Russia, is almost fully
owned by Germany-based Volkswagen Financial Services AG (VWFS;
A/Stable/A-1), which has issued separate irrevocable public
offers for each of the three bonds.  Although the offers are not
legal guarantees, S&P considers them to be consistent with a
cross-border guarantee, given clauses that constitute a legally
binding commitment on VWFS.

However, this does not allow S&P to rate the instruments at the
level of the issuer credit rating on VWFS because various
country-risk factors mean that the offers are not unconditional.
VWFS has the right to terminate the offers under certain
circumstances, including a deposit freeze, nationalization of the
bank, and war. Even though S&P thinks the parent is very
committed to providing timely support to VW Bank RUS, S&P
believes there are various situations in which it may be unable
to do so, given country risks that are beyond its control.
Consequently, S&P caps the ratings on the bonds at the level of
its long-term foreign currency rating on Russia.

Considering the support VW Bank RUS has received from its parent
through the three public irrevocable offers, including the
country risks that could affect the offers, S&P treats VW Bank
RUS as economically close to a cross-border branch of VWFS.
According to S&P's criteria for "Assessing Bank Branch
Creditworthiness," published Oct. 14, 2013, S&P's foreign
currency rating on the host sovereign caps S&P's view of the
creditworthiness of a branch or branch-like entity, and therefore
also our ratings on that entity's issues.


X5 RETAIL: Fitch Assigns 'BB' Issuer Default Ratings
----------------------------------------------------
Fitch Ratings has assigned X5 Retail Group N.V. Long-term foreign
and local currency Issuer Default Ratings (IDRs) of 'BB' and a
National Long-term Rating of 'AA-(rus)'. The Outlooks are Stable.

The ratings reflect X5's strong market position as the second-
largest food retailer in Russia with a multi-format store-base
and healthy operating performance demonstrated in 2014, which we
expect to continue in the medium term, particularly in the soft
discounter format. The ratings are supported by moderate leverage
together with adequate financial flexibility thanks to the
group's limited FX risks, capex scalability and adequate near-
term liquidity profile.

"The ratings are constrained by a weak fixed charge coverage
ratio (2013: 1.9x), pressured by relatively high share of leased
space in X5's real estate portfolio. While this metric is below
the median for a 'BB' food retail rating category (2.0x), we
acknowledge the flexibility provided by the high share of
variable leases and easy cancellation of lease contracts. Fitch
expects the ratio to remain within 1.6x-1.8x over the next three
years due to the expected further increase of leased space share
in the group's store base and assuming the current high interest
rate environment in Russia persists. Although we expect a stable
credit profile, weaker profit margins together with lower than
expected coverage metrics or a reduced share of revenue-linked
contracts in the lease portfolio may put negative pressure on the
ratings," Fitch said.

KEY RATING DRIVERS

Leading Multi-Format Retailer in Russia

The rating is supported by X5's strong market position as the
second-largest food retailer in Russia, which is one of the top-
10 largest food retail markets in the world. The business model
is supported by own logistics and distribution systems and multi-
format strategy with a focus on a defensive discounter format.
Despite increasing competition from other large retail chains in
the country, Fitch believes that X5 is well positioned to retain
and improve its market position in the medium term. The ratings
also factor in X5's strong bargaining power over suppliers due to
its large scale and growing geographical presence across Russia's
regions.

Subdued Consumer Sentiment

"We expect that the slowdown in the Russian economy, increasing
inflation and weak rouble will translate into subdued consumer
sentiment in 2015-2016. However, we believe that X5's revenues
and operating margins will not be negatively affected by
consumers' purchasing power erosion as a potential decrease in
supermarket and hypermarket traffic will be offset by more
frequent purchases at discounters, as demonstrated during 2008-
2009. We also expect accelerated traffic migration to the largest
retail chains, including X5, thanks to their better price
proposition in comparison with traditional stores and small
retailers," Fitch said.

Improved Operating Performance

"Since 4Q13, X5 has demonstrated healthy like-for-like (LFL)
sales growth and stabilization in margins. We expect positive LFL
sales trends to continue in the medium term on the back of on-
going store refurbishments, assortment optimization and high
inflation in Russia. Despite pressure from potential margin
sacrifices and higher lease payments, the EBITDA margin is
expected to remain stable thanks to high price inflation
outpacing growth of staff costs and other administrative
expenses. We note that X5's current and expected levels of EBITDA
margins (2013: 7.2%) are strong compared with Fitch-rated
European food retailers," Fitch said.

Stable Leverage

Fitch said "We expect an acceleration in store openings over
2015-2017, which will enable X5 to take market share from
traditional retailers and regional players hit by the challenging
operating environment. However, this is likely to result in
marginal changes in FFO adjusted leverage metrics due to expected
strong revenue growth and cash flows from operations (CFO). We
expect CFO should be sufficient to cover 60%-80% of planned capex
in 2015-2016."

Weak Coverage Metrics

"We expect the FFO fixed charge coverage ratio to remain weak for
the ratings, at around 1.6x-1.8x over 2015-2017, as a result of
higher operating lease expenses and the high interest rate
environment in Russia. However, this is mitigated by the partial
dependence of leases on store turnover, favorable lease
cancellation terms and the high share of fixed-rate debt," Fitch
said.

Financial flexibility is also supported by X5's sound liquidity
position and limited FX risk as its debt, revenues and most of
costs, with the exception of certain lease contracts and minor
direct imports (2% in 2013), are rouble-denominated.

Refinancing Risks in 2016

"The debt maturity profile is skewed towards the end of 2016,
when term loans and three local bonds mature. We believe
refinancing risks are manageable due to capex scalability and our
expectation that X5 will retain access to local funding thanks to
the company's large scale, non-cyclical food retail operations.
We also expect continuing compliance with bank financial
covenants," Fitch said.

Group Structural Debt Considerations

The consolidated risk profile is reflected in the 'BB' IDR. Fitch
notes that all debt within the group is unsecured while there are
cross-suretyships between OpCos covering bank debt, including a
RUB15bn club loan facility at X5 Retail Group N.V. (HoldCo)
level. Debt that is raised at HoldCo and X5 Finance LLC (FinCo),
including various bonds maturing between October 2015 and October
2016, is on-lent to OpCos mirroring the terms of external
obligations. These intra-group loan agreements create an
unsecured claim on the main profit generating OpCos thereby
mitigating any structural subordination between HoldCo and OpCo
creditors.

Below-average Recoveries for Unsecured Bondholders

Fitch has assigned a senior unsecured long term rating of
'BB'/'RR4' to the RUB8 billion bonds issue due in June 2016,
which have suretyship from Trade House Perekrestok CJSC, one of
X5's major operating subsidiaries. The rating on the three bonds
issued by X5 Finance LLC, which are not covered by suretyships
from OpCos, are notched down to 'BB-'/'RR5', reflecting
structural subordination to the rest of the group's debt
considered as prior-ranking and comprising more than 2x 2014F
EBITDA and therefore weak recovery prospects in the event of
default.

LIQUIDITY AND DEBT STRUCTURE

Fitch assesses X5's liquidity as adequate for the rating. At the
end of September 2014, X5 had committed undrawn bank facilities
of RUB57.9 billion and unrestricted cash balances of RUB3.5
billion. Despite expected negative free cash flow (FCF) in 2015,
short-term liquidity should be sufficient to cover short-term
debt commitments of RUB15.9 billion due in 2015.

KEY ASSUMPTIONS

Fitch's key assumptions within the ratings agency's rating case
for the issuer include:

  -- Annual revenue growth of around 20% driven by high single-
     digit LFL sales growth and selling space CAGR of 15% over
     2015-2017

  -- Stable EBITDA margin, at around 7%

  -- Capex at around 5% of revenue

  -- No dividends

  -- Neutral to negative FCF margin

  -- No large-scale M&A activity

RATING SENSITIVITIES

Negative: Future developments that could lead to negative rating
action include:

  -- A sharp contraction in like-for-like sales growth relative
     to close peers.

  -- EBITDA margin erosion to below 6.5% (2013: 7.2%).

  -- FFO-adjusted gross leverage above 5.0x on a sustained basis
     (2013: 4.3x).

  -- FFO fixed charge cover significantly below 2.0x on sustained
     basis if not mitigated by flexibility in managing operating
     lease expenses, including alignment of leases with store
     revenue.

  -- Deterioration of liquidity position as a result of high
     capex, worsened working capital turnover and weakened access
     to local funding in the face of Rouble bonds maturing in
     2015-2016.

Positive: Future developments that could lead to positive rating
action include:

  -- Positive like-for-like sales growth comparable with close
     peers together with maintenance of its leading market
     position in Russia's food retail sector.

  -- Ability to maintain the group's EBITDA margin at around 7%.

  -- FFO-adjusted gross leverage below 3.5x on a sustained basis.

  -- FFO fixed charge coverage around 2.5x on a sustained basis.

Full List of Rating Actions

X5 Retail Group N.V.

Long-Term foreign currency IDR assigned at 'BB', Stable Outlook
Long-Term local currency IDR assigned at 'BB', Stable Outlook
National Long-Term Rating assigned at 'AA-(rus)', Stable Outlook

X5 Finance LLC

RUB8bn guaranteed bonds due June 2016
Senior unsecured Long-Term Rating of 'BB'/RR4
Senior unsecured National Long-Term Rating of 'AA-(rus)'

RUB5bn bonds due October 2015

Senior unsecured Long-Term Rating of 'BB-'/RR5
Senior unsecured National Long-Term Rating of 'A+(rus)'

RUB5bn bonds due September 2016

Senior unsecured Long-Term Rating of 'BB-'/RR5
Senior unsecured National Long-Term Rating of 'A+(rus)'

RUB5bn bonds due October 2016

Senior unsecured Long-Term Rating of 'BB-'/RR5
Senior unsecured National Long-Term Rating of 'A+(rus)'



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


CM BANCAJA 1: S&P Lowers Rating on Class D Notes to 'CCC+'
----------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
CM Bancaja 1, Fondo de Titulizacion de Activos' class B and C
notes. At the same time, S&P has lowered its rating on the class
D notes.

Upon publishing S&P's updated criteria for rating single-
jurisdiction securitizations above the sovereign foreign currency
rating (RAS criteria), S&P placed those ratings that could
potentially be affected "under criteria observation".

Following S&P's review of this transaction, its ratings that
could potentially be affected by the criteria are no longer under
criteria observation.

S&P has used data from the December 2014 investor report to
perform its credit and cash flow analysis and has applied its
European small and midsize enterprise (SME) collateralized loan
obligation (CLO) criteria and S&P's current counterparty
criteria. For ratings in this transaction that are above S&P's
rating on the sovereign, it has also applied its RAS criteria.

CREDIT ANALYSIS

CM Bancaja 1 is a single-jurisdiction cash flow CLO transaction
securitizing a portfolio of SME loans that was originated by
Bankia S.A. in Spain.  The transaction closed in September 2005.

S&P has applied its European SME CLO criteria to determine the
scenario default rate (SDR) -- the minimum level of portfolio
defaults that S&P expects each tranche to be able to withstand at
a specific rating level using CDO Evaluator.

To determine the SDR, we adjusted the archetypical European SME
average 'b+' credit quality to reflect two factors (country and
originator and portfolio selection adjustments).

S&P ranked the originator into the moderate category.  Taking
into account Spain's Banking Industry Country Risk Assessment
(BICRA) score of 5 and the originator's average annual observed
default frequency, S&P has applied a downward adjustment of one
notch to the 'b+' archetypical average credit quality.  To
address differences in the creditworthiness of the securitized
portfolio compared with the originator's entire loan book, S&P
further adjusted the average credit quality by three notches.

As a result of these adjustments, S&P's average credit quality
assessment of the portfolio was 'ccc', which S&P used to generate
its 'AAA' SDR of 93.09%.

S&P has calculated the 'B' SDR, based primarily on its analysis
of historical SME performance data and S&P's projections of the
transaction's future performance.  S&P has reviewed the
originator's historical default data, and assessed market
developments, macroeconomic factors, changes in country risk, and
the way these factors are likely to affect the loan portfolio's
creditworthiness.  S&P's analysis of the 'B' SDR also considered
the portfolio concentration, as approximately only 40 assets
remain in the portfolio.  For instance, the largest borrower in
the portfolio accounts for nearly 14% of the current performing
balance.  As a result of this analysis, S&P's 'B' SDR is 23%.

S&P interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with S&P's European SME CLO criteria.

RECOVERY RATE ANALYSIS

S&P applied a weighted-average recovery rate (WARR) at each
liability rating level by considering the asset type and its
seniority, the country recovery grouping, and the observed
historical recoveries in this transaction.

COUNTRY RISK

S&P's long-term rating on the Kingdom of Spain is 'BBB'.  S&P's
RAS criteria require the tranche to have sufficient credit
enhancement to pass a minimum of a "severe" stress to qualify to
be rated above the sovereign.

CASH FLOW ANALYSIS

S&P used the reported portfolio balance that it considered to be
performing, the principal cash balance, the current weighted-
average spread, and the weighted-average recovery rates that S&P
considered to be appropriate.  S&P subjected the capital
structure to various cash flow stress scenarios, incorporating
different default patterns and timings and interest rate curves,
to determine the rating level, based on the available credit
enhancement for each class of notes under S&P's European SME CLO
criteria.

"Under our RAS criteria, we can rate a securitization up to four
notches above our foreign currency rating on the sovereign if the
tranche can withstand "severe" stresses.  However, if all six of
the conditions in paragraph 48 of the RAS criteria are met
(including credit enhancement being sufficient to pass an extreme
stress), we can assign ratings in this transaction up to a
maximum of six notches (two additional notches of uplift) above
the sovereign rating.  The available credit enhancement for the
class B notes withstands extreme stresses.  We have therefore
raised to 'AA (sf)' from 'A (sf)' our rating on the class B
notes.  At the same time, we have raised to 'A+ (sf)' from 'BBB+
(sf)' our rating on the class C notes as the available credit
enhancement for this class of notes withstands severe stresses,"
S&P said.

SUPPLEMENTAL TESTS

The application of the largest obligor default test constrained
S&P's rating on the class D notes.  The supplemental stress tests
address event and model risk not captured in our credit and cash
flow analysis.

Because the largest obligor default test constrains S&P's rating
on the class D notes, S&P has lowered to 'CCC+ (sf)' from 'B'
(sf)' its rating on the class D notes.

RATINGS LIST

Class       Rating            Rating
            To                From

CM Bancaja 1, Fondo de Titulizacion de Activos
EUR556.2 Million Floating-Rate Notes

Ratings Raised

B           AA (sf)           A (sf)
C           A+ (sf)           BBB+ (sf)

Rating Lowered

D           CCC+ (sf)         B+ (sf)


ESMAGLASS HOLDING: S&P Assigns Prelim. 'B+' CCR; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned a
preliminary 'B+' long-term corporate credit rating to Spain-based
Pigments II B.V., a holding company for Spain-based ceramic-
products maker Esmaglass.  The outlook is stable.

"At the same time, we assigned our preliminary 'B+' issue rating
to the EUR305 million senior secured facilities (comprising a
EUR250 million term loan B, a EUR40 million revolving credit
facility [RCF] and a EUR15 million capital expenditure [capex]
facility), in line with our preliminary corporate credit rating.
The preliminary recovery rating on these facilities is '3'.
Despite our indicative recovery prospects on the secured
facilities being in excess of 70%, our criteria cap the recovery
rating at '3' because of our view of Spain as a relatively
unfavorable jurisdiction for creditors," S&P said.

"The final rating will depend on the company's successful
issuance of the new EUR250 million term loan B, EUR40 million
RCF, and EUR15 million capex facility, as well as completion of
the acquisition of Spain-based Fritta.  The final rating will
also depend on our receipt and satisfactory review of all final
transaction documentation.  Accordingly, the preliminary rating
should not be construed as evidence of the final rating.  If
Standard & Poor's does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, we reserve the right to withdraw or revise
our ratings.  Potential changes include, but are not limited to,
utilization of new notes proceeds, maturity, size and conditions
of the notes, financial and other covenants, security and
ranking," S&P added.

The preliminary rating reflects S&P's assessment of Esmaglass'
business risk profile as "weak" and of its financial risk profile
as "aggressive," as S&P's criteria define these terms.

"Esmaglass is a leading producer of intermediate products that
are sold directly to ceramic tile manufacturers worldwide.  The
product portfolio includes glazing products (frits, glazes) as
well as body stains to color the body of the tiles and surface
products (glaze stains, inkjet inks).  The group is a niche
player with a portfolio of products applied to a wide range of
tiles.  The group benefits from strong market positions in the
countries in which it operates, and has good geographic and
client diversity.  On the other hand, Esmaglass is exposed to
particularly cyclical and volatile construction end markets,
which has resulted in revenue contraction and absolute EBITDA
declines in the past when demand has suddenly fallen.  The
group's recent, and rapid, expansion into countries that we
consider higher-risk under our criteria could increase the
volatility of future demand," S&P noted.

The group has signed a definitive agreement to acquire Fritta, a
Spain-based company that designs, manufactures, and sells glazes,
frits, digital standard inks, and ceramic colors.  In S&P's
opinion, this acquisition will complement the Esmaglass group's
existing footprint and product suite, and should also offer
a good platform to continue its expansion in southeast Asian
markets.

Esmaglass is currently majority-owned by financial sponsor
Investcorp, and S&P notes that Esmaglass' management also holds a
significant stake in the group.  S&P acknowledges that its owners
have a more conservative approach and lower tolerance for
aggressive leverage than such a sponsor usually does, which S&P
reflects in its 'FS-5' financial policy modifier.  S&P considers
it highly unlikely that the group would be releveraged to more
than 5x debt to EBITDA over S&P's rating horizon of 12-18 months.
Esmaglass' capital structure contains a relatively modest amount
of shareholder loans and accrued payment-in-kind (PIK)
interest -- totaling about EUR53 million on Dec. 13, 2014.

Esmaglass' core and supplementary credit metrics fall within the
"significant" and "aggressive" financial risk profile categories
in S&P's forecast.  However, S&P's FS-5 financial policy modifier
also reflects the element of uncertainty (in terms of the
potential for higher leverage, a more aggressive acquisition
policy, and higher shareholder returns) that is introduced by
financial-sponsor majority ownership.  Under S&P's criteria, when
an issuer has a "weak" business risk profile combined with a
'FS-5' financial policy descriptor modifier, S&P caps the
issuer's financial risk profile at "aggressive."

S&P's base case for the fiscal year ending Dec. 31, 2015,
assumes:

   -- Stable growth fundamentals in the group's end markets,
      anticipating that the global recovery stays on track;

   -- Full integration of Fritta, resulting in growth of the
      group's consolidated revenues to about EUR425 million; and

   -- EBITDA margins strengthening to slightly more than 20%,
      should management continue to reduce its cost base and
      deliver sufficient synergies from the Fritta transaction.

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

   -- Standard & Poor's-adjusted debt to EBITDA of about 3.5x
      (including the shareholder loan and accrued PIK interest);

   -- Funds from operations (FFO) to debt of about 16%-17%; and

   -- Cash interest coverage of more than 3x.

S&P assess the group's management and governance as "fair,"
reflecting its experienced management team and clear operational
and financial goals.

The outlook is stable.  S&P anticipates that the growth
environment that is currently benefiting the industry will
continue through 2015.  S&P expects that Esmaglass will be able
to increase revenues and slightly improve its margins over the
rating horizon of 12-18 months.  S&P anticipates that the group's
Standard & Poor's-adjusted debt to EBITDA should be about 3.5x in
2015, with good cash interest coverage of significantly more than
3x.

S&P sees a limited likelihood of raising the ratings at this
stage, because S&P's 'FS-5' financial policy score effectively
caps the group's FRP at "aggressive," due to uncertainty over the
potential for future releveraging, shareholder returns, and
changes to the group's acquisition and disposal strategy.

S&P could lower the ratings if Esmaglass were to experience
severe margin pressure, or poorer cash flows, leading to weaker
credit metrics -- specifically, debt to EBITDA above 4x.  S&P
could also lower the ratings if Esmaglass undertook debt-funded
acquisitions or increased shareholder returns.


MBS BANCAJA 2: Fitch Affirms 'CCsf' Rating on Class F Debt
----------------------------------------------------------
Fitch Ratings has affirmed 21 and downgraded two tranches of six
MBS Bancaja, FTA transactions, a series of Spanish prime RMBS
comprising loans originated and serviced by Bancaja, which was
taken over by Bankia S.A. (BBB-/Negative/F3). The Outlooks have
been revised to Negative from Stable on four tranches and to
Stable from Negative on one tranche.

KEY RATING DRIVERS

Improved Arrears Performance

A combination of sufficient credit enhancement and improved asset
performance has led to the affirmations of the notes in MBS
Bancaja 1-2 and 7-8, as well as the revision of Outlook to Stable
from Negative on class E in MBS Bancaja 2. The improved arrears
performance is reflected in the reduced pace of new arrears.
Fitch estimates that on average the 0-to-90 day arrears decreased
by over 1.4 percentage points (pp) over the past 12 months,
reflecting an improved economic environment in Spain.

While Bancaja 3 and 4 have seen some asset performance in the
past 12 months, the trend seen in the two transactions, in
particular MBS Bancaja 4, is not representative of its peers.
Loans in arrears by more than 90 days in MBS Bancaja 4 have
remained at 2.6% of the current balance for the past two
quarters. The data received suggests that loans that are being
identified as defaulted and provisioned for are offset by new
loans entering late-stage arrears. This, together with lower
levels of credit enhancement, has led Fitch to downgrade the
class B and C notes of MBS Bancaja 4.

Reserve Draws for Bancaja 3 and 4
The transaction structures allow for the full provisioning of
defaulted loans, which are defined as loans in arrears by more
than 18 months. While the annualized constant default rate has
decreased across all transactions, on average by 1.3pp over the
past 12 months, gross excess spread and recoveries in MBS Bancaja
3 and 4 remain insufficient to fully cover the period provisions.
As a result, the reserve funds in these two transactions
decreased by 9pp and 5pp in the last 12 months and presently
stand at 76% (MBS Bancaja 3) and 36% (MBS Bancaja 4) of their
respective targets.

Fitch expects gross cumulative defaults to increase further,
leading to additional draws. This expectation comes as late-stage
arrears (2.2% in MBS Bancaja 3 and 2.6% in MBS Bancaja 4) remain
higher than Fitch's three-month plus arrears Spanish RMBS index
of 1.7%. For this reason the Outlooks were revised to Negative
from Stable on four tranches of MBS Bancaja 3 and 4.

Other Reserve Funds Stable
"Some replenishment was reported in MBS Bancaja 1 and 2, where
the funds available in the reserves are up to 94% and 91% of the
target, from their most recent troughs of 93% and 89%
respectively in January 2014. We do not expect further draws on
these reserves due to a stable inflow of period recoveries, which
are the highest across the whole series," Fitch said.

The reserve funds of MBS Bancaja 7 and 8 are fully funded. Fitch
does not expect any future draws because the reserve funds in
these transactions cannot be utilized to provision for defaults.
They are only available to meet class A interest and senior fees
in case of interest shortfalls.

Account Bank Exposure
In line with Fitch's criteria, the ratings in MBS Bancaja 7 and 8
are capped at 'A+sf', as the account bank rating trigger of
'BBB+'/'F2' specified in the transaction documentation, can only
support note ratings up to 'A+sf'.

RATING SENSITIVITIES

Deterioration in asset performance may result from economic
factors, in particular the increasing effects of unemployment.
Portfolio deterioration beyond Fitch's stresses would trigger
negative rating actions.

The rating actions are as follows:

MBS Bancaja 1, FTA
Class A (ES0361794003) affirmed at 'AA+sf'; Outlook Stable
Class B (ES0361794011) affirmed at 'AA+sf'; Outlook Stable
Class C (ES0361794029) affirmed at 'AA-sf'; Outlook Stable
Class D (ES0361794037) affirmed at 'A-sf'; Outlook Stable

MBS Bancaja 2, FTA
Class A (ES0361795000) affirmed at 'AA+sf'; Outlook Stable
Class B (ES0361795018) affirmed at 'AA+sf'; Outlook Stable
Class C (ES0361795026) affirmed at 'AA-sf'; Outlook Stable
Class D (ES0361795034) affirmed at 'A-sf'; Outlook Stable
Class E (ES0361795042) affirmed at 'BB+sf'; Outlook revised to
Stable from Negative
Class F (ES0361795059) affirmed at 'CCsf'; Recovery Estimate 90%

MBS Bancaja 3, FTA
Class A2 (ES0361796016) affirmed at 'AA-sf'; Outlook Stable
Class B (ES0361796024) affirmed at 'AA-sf'; Outlook revised to
Negative from Stable
Class C (ES0361796032) affirmed at 'Asf''; Outlook revised to
Negative from Stable
Class D (ES0361796040) affirmed at 'BB+sf'; Outlook Negative
Class E (ES0361796057) affirmed at 'CCsf'; Recovery Estimate 45%

MBS Bancaja 4, FTA
Class A2 (ES0361797014) affirmed at 'A+sf'; Outlook revised to
Negative from Stable
Class A3 (ES0361797022) affirmed at 'A+sf'; Outlook revised to
Negative from Stable
Class B (ES0361797030) downgraded to 'BBB-sf' from 'BBB+sf';
Outlook Stable
Class C (ES0361797048) downgraded to 'BBsf' from 'BBB-sf';
Outlook Stable
Class D (ES0361797055) affirmed at 'Bsf'; Outlook Negative
Class E (ES0361797063) affirmed at 'CCsf'; Recovery Estimate 0%

MBS Bancaja 7, FTA
Class A (ES0361746003) affirmed at 'A+sf''; Outlook Stable

MBS Bancaja 8, FTA
Class A (ES0361747001) affirmed at 'A+sf''; Outlook Stable
Contact:



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


FINTEST TRADING: Fitch Withdraws 'C' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has withdrawn all ratings for Fintest Trading Co.
Limited (Fintest), as the Ukrainian steel group has chosen to
stop participating in the rating process. Therefore, Fitch will
no longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Fintest.

Full List of Ratings:

Fintest Trading Co. Limited

  Long-term foreign and local currency long-term Issuer Default
  Rating (IDRs): 'C'; withdrawn

  National Long-term rating: 'C(ukr)'; withdrawn



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


CIRCLE HEALTHCARE: Seeks Government Bailout of Nearly GBP10-Mil.
----------------------------------------------------------------
Gill Plimmer at The Financial Times reports that Circle
Healthcare has asked for a government bailout of nearly GBP10
million, just six weeks before it is handed back to the public
sector.

The request comes a month after stock market-listed Circle said
it was abandoning its deal to run the 365-bed Hinchingbrooke
hospital in Cambridgeshire, the FT relates.

Circle is expected to hand over operations to the National Health
Services on March 31 but will leave an expected deficit of
between GBP7.7 million and GBP12 million for the financial year,
the FT says, citing Hinchingbrooke Health Care Trust's latest
finance report, first reported in the Health Service Journal.
The company will not be liable under the terms of its contract,
which places a GBP5 million cap on its losses, a figure that has
already been reached, the FT notes.

Hinchingbrooke has applied to the NHS Trust Development Authority
for GBP9.6 million and expects to borrow from the TDA in the
meantime, the FT discloses.

"If it were a private company they would let it go bust but,
given they can't, taxpayers will have to foot the bill for
keeping the hospital running.  Circle has effectively limited its
losses to GBP5 million but it is the NHS that will now have to
pick up the pieces and decide what to do," the FT quotes
Michelle Tempest, a consultant at Candesic, the healthcare
consultancy, as saying.

Circle Healthcare is the first privately run NHS hospital.


DECO 6 - UK: Fitch Affirms 'Csf' Ratings on 3 Note Classes
----------------------------------------------------------
Fitch Ratings has affirmed DECO 6 - UK Large Loan 2 plc's
floating rate notes due 2017 as follows:

  GBP105.1 million class A2 (XS0235683223) affirmed at 'CCsf';
  Recovery Estimate (RE) 75%

  GBP34.4 million class B (XS0235683736) affirmed at 'Csf'; RE 0%

  GBP39.3 million class C (XS0235684114) affirmed to 'Csf'; RE 0%

  GBP24.1 million class D (XS0235684544) affirmed at 'Csf'; RE 0%

DECO 6 - UK Large Loan 2 plc was originally the securitization of
four commercial loans originated by Deutsche Bank AG
(A/Stable/F1), which closed in December 2005. Two of the loans
have since repaid in full which led to the full repayment of the
class A1 notes in 1Q12. The remaining two loans are secured by a
UK shopping centre and five office assets.

KEY RATING DRIVERS

The affirmation reflects the unchanged recovery prospects for the
two defaulted loans (and the expectation of major loss), the
sequential principal allocation and the ongoing liquidation of
the Mapeley portfolio.

In January 2015, the GBP96.6 million Mapeley loan was secured by
five UK office properties with an aggregate value of GBP12.2
million (based on a 2012 valuation). The loan-to-value ratio was
reported at 554% in October 2014. The loan remains in special
servicing with Hatfield Philips.

Five additional properties have been sold since the last rating
action in February 2014, with gross sales prices exceeding
reported value by 15.6%. The most recent reported interest
coverage ratio (October 2014) was 0.13x, due to high vacancy at
79% and a fixed interest rate of 5.7%.

A reserve account is being used to ensure full interest payments
on the loan. However, unless the remaining assets are sold
swiftly, the reserve will be depleted in 2H15 and principal
recoveries can be expected to be diminished to repay overdue
interest/ liquidity drawings. Fitch expects a major loss.

The GBP99.7 million Brunel Shopping Centre loan has been in
special servicing since 2011. The underlying property was valued
at GBP63 million in January 2014, compared with GBP87.3 million
in October 2011. The decline was driven by depression of retail
occupier demand, increased irrecoverable costs as the result of
tenant defaults and downwards rental reviews and incentives for
potential parting tenants.

However, occupancy remains close to 90% while improving the
tenant mix and estimated rental values is the main focus.
Potential tenants are being approached with space offers. The
special servicers (and its agents) are trying to renegotiate the
rates liabilities for tenants and landlord, which are perceived
as too high. Meanwhile alternative uses are being discussed for
vacant space and the arcade area of the centre. Fitch expects a
significant loss.

Fitch estimates 'Bsf' principal proceeds of approximately EUR70m.

RATING SENSITIVITIES

The ratings will be downgraded to 'Dsf' once losses are incurred.


LAST MINUTE: May Go Bust Over Ashley's Clothing Firm Collapse
-------------------------------------------------------------
Martin Williams at Herald Scotland reports that Last Minute
Logistics says they face going under after being left nearly
GBP50,000 out of pocket when Rangers kingpin Mike Ashley's
clothing firm went into administration.

Justin McGonigle, of Last Minute Logistics, says there has been
no response from Sports Direct, which owned USC, despite a
face-to-face meeting with chief executive Dave Forsey at their
Derbyshire head office in which they pleaded for payment to save
the company, Herald Scotland relates.

He has since received an email from the administrators but said
he was no closer knowing whether he would get any money back to
prevent his own firm going under, Herald Scotland relays.

It has also been claimed that Business Secretary Vince Cable was
not given advance notice of the redundancies when the Sports
Direct-owned company went into administration last month, leading
to the loss of jobs for 79 permanent staff and 166 either agency
or zero-hour contract workers at Dundonald, South Ayrshire,
Herald Scotland discloses.

Last Minute was one of the delivery firms that ferried goods to
Sports Direct and USC around the country and Mr. McGonigle said
they were given an indication that they could work something out,
Herald Scotland notes.

Mr. McGonigle has, along with staff, registered his complaints to
Brian Donohoe, the local Labour MP, who is to push for Mr. Ashley
to be brought before the Department of Business, Innovation and
Skills to explain the actions, Herald Scotland relays.

Last Minute Logistics is a transport firm.


LQD MARKETS: Enters Special Administration
------------------------------------------
Matthew Haw, Graham Bushby and Matthew Wild of Baker Tilly
Restructuring and Recovery LLP have been appointed as Joint
Special Administrators of LQD Markets (UK) Ltd by order of the
High Court.

LQD Markets is an online forex and CFDs broker providing premium
brokerage services to clients through its customised MetaTrader 4
platform. The company was licensed and regulated by the Financial
Conduct Authority.

LQD Markets experienced trading difficulties following the
decision by the Swiss National Bank to remove the informal peg
between the Swiss franc and Euro which prompted volatility across
foreign exchange markets.

Following consultation with the Financial Conduct Authority (FCA)
the company applied to the FCA for a number of requirements to be
imposed on its business. One of these requirements was that the
company ceased entering into any new transactions with clients
and for all open positions to be closed.

The company explored alternative options to recapitalise the
business, but unfortunately these were unsuccessful and in order
to protect the clients and creditors, the company took steps to
apply for an order placing the company into Special
Administration.

The Joint Special Administrators will now work to reconcile the
client positions and to facilitate the release of client funds as
soon as practicable. They will shortly be writing to clients and
creditors to provide them with additional information relating to
the administration and to explain how the process will proceed
and what they are required to do to register their claim.


                            *********

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

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

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


                            *********


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

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

Copyright 2015.  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
202-362-8552.


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