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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

            Friday, June 26, 2015, Vol. 16, No. 125

                            Headlines

B U L G A R I A

UNITED BULGARIAN: S&P Lowers Counterparty Rating to 'B-'


F R A N C E

CGG SA: Moody's Assigns (P)Ba1 Rating to 2021 Sr. Secured Loan
FCT MARSOLLIER: Moody's Reviews Class E Notes' 'Ba3(sf)' Rating
SPIE BONDCO 3: Moody's Raises CFR to 'Ba3', Outlook Stable


G E R M A N Y

ORION ENGINEERED: S&P Raises CCR to 'BB-', Outlook Stable


G R E E C E

GREECE: Still No Progress in Bailout Talks with Creditors


H U N G A R Y

ORCO PROPERTY: Completes Reorganization of Hungarian Subsidiaries


I R E L A N D

AVOCA CLO XIV: Moody's Assigns 'B2' Rating to Class F Notes


I T A L Y

ISTITUTO CENTRALE: S&P Puts BB+ Counterparty Rating on Watch Neg.
SALINI IMPREGILO: S&P Raises CCR to 'BB+', Outlook Stable


L U X E M B O U R G

AEOLOS SA: S&P Lowers Rating on EUR355MM Class A Notes to CCC
BANQUE INTERNATIONALE: Moody's Lifts BCA Rating to baa3 from ba1
ION TRADING: Moody's Affirms 'B2' Corporate Family Rating
ION TRADING: S&P Affirms 'B+' CCR, Outlook Remains Stable



N E T H E R L A N D S

AI ALABAMA: Moody's Assigns 'B2' Corporate Family Rating
AI ALABAMA: S&P Assigns Preliminary 'B' CCR, Outlook Stable



R O M A N I A

SNTGN TRANSGAZ: S&P Raises CCR to 'BB+', Outlook Stable



R U S S I A

RUSSIAN BANKS: Moody's Assigns CR Assessments to 5 Institutions



S P A I N

FTPYME BANCAJA 6: Fitch Raises Rating on Class B Notes to 'Bsf'


S W E D E N

NOBINA AB: S&P Raises CCR to 'BB-' Following IPO, Outlook Stable



T U R K E Y

BURGAN BANK: Moody's Cuts Long-Term Deposit Ratings to Ba3
HSBC BANK: Moody's Cuts Long-Term Currency Deposit Ratings to Ba1
YASAR HOLDING: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable



U K R A I N E

FIRST UKRAINIAN: Moody's Withdraws 'Caa3/Ca' Deposit Ratings
UKRAINE: Writedown on Bondholders May Hit IMF Restructuring Goals



U N I T E D   K I N G D O M

ARNOLD WORKING MEN: Club Goes Into Liquidation
EXPRO HOLDINGS: Moody's Cuts Corporate Family Rating to B3
GLOBO PLC: Moody's Assigns 'B2' Corporate Family Rating
INDEPENDENT ACADEMIES: Association Goes Into Liquidation
NEWDAY FUNDING: Fitch Assigns 'Bsf' Rating to GBP15.3MM Notes

OSTWALD HELGASON: Files for Liquidation in London
PETERBOROUGH PLC: Moody's Confirms Ba3 Rating on GBP446MM Bonds
PRECISE MORTGAGE 2015-2B: Moody's Rates Class E Notes (P)Ba3
TRAP OIL: Faces Cash Shortage; Mulls Rescue Options

* UK: Oilfield Services Companies Face Tough Months Ahead
UK: Fitch Affirms Ratings on 23 Tranches of 7 European SF CDO



X X X X X X X X

* BOOK REVIEW: EPIDEMIC OF CARE


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B U L G A R I A
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UNITED BULGARIAN: S&P Lowers Counterparty Rating to 'B-'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
counterparty credit rating on United Bulgarian Bank (UBB) to 'B-'
from 'B' and removed this rating from CreditWatch with negative
implications, where S&P initially placed it on Feb. 9, 2015.  The
outlook is negative.

At the same time, S&P affirmed its 'C' short-term counterparty
credit rating on the bank.

The downgrade of UBB follows S&P's downgrade of UBB's 99% owner,
National Bank of Greece.

"We have revised our assessment of UBB's business position to
"moderate" from "adequate," reflecting our concerns of increased
reputational contagion risk through NBG, which we recently
downgraded.  It also reflects our view of possible reduced
prospects for UBB to attract customers, due to its ownership by
the Greek bank, and the bank's low-growth operating conditions in
Bulgaria.  Our revised business position also reflects a
weakening of the bank's competitive position over the past four
years, due to balance-sheet contraction of about 12% from year-
end 2010 to March 31, 2015.  With total assets of Bulgarian lev
(BGN)6.5 billion (about EUR3.3 billion) as of March 31, 2015, UBB
is the fourth-largest commercial bank in Bulgaria, with a market
share of about 10% by loans and retail deposits," S&P said.

S&P has not changed its assessment of other rating factors.
UBB's ratings continue to be based on its exclusive Bulgarian
business reflected in its 'bb' anchor, which is the starting
point for rating commercial banks operating in Bulgaria, and the
bank's "adequate" capital and earnings, "weak" risk position,
"average" funding, and "moderate" liquidity, as defined in S&P's
criteria. The bank's unsupported stand-alone credit profile
(SACP) is 'b-'.

The counterparty credit rating on UBB is the same as its SACP,
reflecting two unchanged opposite dynamics that offset each
other. On one hand, S&P adds one notch of uplift to the SACP to
reflect potential extraordinary support from the Bulgarian
government to UBB.  S&P continues to view UBB as having "high
systemic importance," given that it is the fourth-largest bank in
Bulgaria with a sound market share of retail deposits, and S&P
classifies the Bulgarian government as "supportive" of the
country's private sector banking sector.  On the other hand, S&P
continues to adjust UBB's rating downward by one notch to reflect
the contagion risk related to the parent.

The ratings on UBB continue to be two notches above NBG,
reflecting S&P's view of extraordinary support by the Bulgarian
government in case of need.

UBB's only remaining funding from NBG is a BGN152.8 million
subordinated loan to be repaid by year-end 2017 through annual
installments of BGN50.9 million.  It accounted for about 3% of
UBB's funding as of March 31, 2015.

S&P continues to see UBB's funding and liquidity as a negative
rating factor, because S&P believes that a potential worsening of
the difficult economic situation in Greece and at its parent
could further weaken UBB's deposit base and access to wholesale
funding markets.  In the first quarter of 2015, UBB's retail
deposits declined by 1.6% and corporate deposits by 11.5%.

The negative outlook on UBB mainly reflects the negative outlook
on NBG.  NGB's negative outlook reflects the possibility that S&P
could lower the long-term ratings if it anticipates that capital
controls will be imposed, since this would likely lead to a
default under S&P's ratings definitions.  If this were to happen,
S&P believes that this could have a near-term contagion impact on
UBB due to its ownership by NBG.  It also reflects the negative
economic and industry trends in the Bulgarian banking industry,
due to limited growth prospects, high nonperforming loans, and
material ownership of Bulgarian banks by Greek financial
institutions.

S&P could lower the ratings on UBB, if contagion risk were to
materialize and weaken UBB's SACP, especially with regard to its
funding and liquidity position.  S&P could also lower the ratings
on UBB if S&P's view of the likelihood of extraordinary Bulgarian
government support were to weaken.

S&P could revise the outlook to stable if it took a similar
action on NBG, while UBB's funding and liquidity position
remained stable and the economic and industry risks for Bulgarian
banks diminished.



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F R A N C E
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CGG SA: Moody's Assigns (P)Ba1 Rating to 2021 Sr. Secured Loan
--------------------------------------------------------------
Moody's Investors Service assigned a (P)Ba1 rating to CGG SA's
envisaged issuance of USD350 million of senior secured term loan
due 2021 at CGG Holding (U.S.) Inc, a direct subsidiary of CGG
SA.

CGG's corporate family rating (CFR) at B1, probability of default
rating (PDR) at B1-PD, Ba1 ratings on the senior secured bank
facilities are unchanged and B2 ratings on the senior notes are
unchanged. The outlook on all ratings remain negative.

Moody's issues provisional ratings in advance of the final sale
of securities. Upon closing of the transaction and a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings. A definitive rating may differ from a
provisional rating.

RATINGS RATIONALE

Net proceeds from the new term loan after fees and expenses will
be used to repay nearly all outstanding amounts under the
company's various revolving credit facilities (RCFs) and for
general corporate purposes. The new term loan credit facility
will rank pari passu with the company's existing senior secured
bank credit facilities issued by CGG SA and CGG Holding (U.S.)
Inc. and benefit from the same security and guarantee package.
Pro-forma for the transaction the company's leverage as measured
by Debt / EBITDA minus multi-client amortization will increase to
5.7x from 5.5x as at end of March 2015.

Moody's views this level of leverage as high for the B1 category
with limited visibility on deleveraging prospects over the next
18 months reflecting Moody's expectations that the seismic
industry will remain soft for an extended period of time. Moody's
expects bottom-of-cycle margins in contract seismic due to
further pricing pressures and low level of vessel active time
because of higher idle time and/or steaming time between two
jobs. In multi-client surveys, Moody's expects late sales to
remain difficult to predict as customers delay purchases while
pre-funding rate for new surveys should be in line with the
company's target level of 70% or above. The weak seismic will
also take a toll on equipment sales, notably marine equipment
which will also be impacted by vessel retirements by CGG and
other market participants. On the other hand, the subsurface
imaging business should remain resilient but external sales will
be impacted by higher level of internal activity.

In 2014, CGG downsized its marine fleet from 18 to 13 3D vessels.
This vessel capacity reduction in addition to headcount reduction
and other cost efficiency initiatives resulted in a run-rate
decrease in the group's cost base of 23% compared to 2013. The
cold-stacking of another two vessels as well as lower fuel costs
and positive impact from the stronger USD vs. EUR will reduce the
cost base further in 2015. However, this is unlikely to be
sufficient to offset the decline in seismic demand.

The rating also continues to be supported by the group's position
as global leader in seismic equipment (through Sercel) and among
the largest players in marine seismic services worldwide as well
as the group's strong capabilities in sub-surface imaging and
reservoir.

The transaction will also increase the size of the company's
liquidity sources. Pro-forma for the transaction, the company
will have unrestricted cash balance of approximately USD304
million and approximately USD568 million available under its
RCFs. However, whilst the company has currently sufficient
headroom under its financial maintenance covenants with notably
the leverage covenant at 2.5x as of end of March 2015 compared to
a covenant of 3.75x, Moody's notes that this financial covenant
will step-down to 3.5x in December 2015, which the company may
find it challenging to meet in view of the current market trends.
However, Moody's believes that the company is likely to be able
to waive any breach and/or reset its covenants if necessary. On
the positive side, the rating reflects that CGG has no material
debt maturity over the next couple of years.

RATING OUTLOOK

The negative outlook reflects the current weak rating positioning
and the continued softening of market conditions combined with
the lack of visibility around an eventual recovery, while the
credit metrics are expected to remain weak for the rating
category over the foreseeable future.

WHAT COULD CHANGE THE RATING UP/DOWN

A downgrade of the CFR could occur over the coming quarters in
the event of limited improvement in operating performance,
resulting in a trajectory of credit metrics indicating that
leverage will likely remain sustainably over 5.5x at year-end
2015 and in 2016 or material deterioration in the company's
liquidity position in the coming quarters.

The outlook could be stabilized following improvement in market
conditions and operating performance. Over time, the rating could
be upgraded if leverage falls towards 4.0x on a sustained basis
and the company maintains a solid liquidity profile. Any
potential upgrade would also include an assessment of market
conditions.

PRINCIPAL METHODOLOGIES

The principal methodology used in this rating was Global Oilfield
Services Industry Rating Methodology published in 2014. 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 France, CGG ranks among the top three players in
the seismic industry, with revenues of USD3.1 billion in 2014. It
is listed on both Euronext Paris and the New York Stock Exchange.


FCT MARSOLLIER: Moody's Reviews Class E Notes' 'Ba3(sf)' Rating
---------------------------------------------------------------
Moody's Investors Service placed under review for upgrade the
tranche B, C, D and E in FCT Marsollier Mortgages. The rating
action reflects the deal-deleverage leading to a large increase
in credit enhancement for the affected tranches.

Issuer: FCT Marsollier Mortgages

-- EUR13.6 million B Notes, Aa2 (sf) Placed Under Review for
    Possible Upgrade; previously on Apr 30, 2009 Assigned
    Aa2 (sf)

-- EUR11.65 million C Notes, A2 (sf) Placed Under Review for
    Possible Upgrade; previously on Apr 30, 2009 Assigned A2 (sf)

-- EUR25.25 million D Notes, Baa3 (sf) Placed Under Review for
    Possible Upgrade; previously on Apr 30, 2009 Assigned
    Baa3 (sf)

-- EUR15.55 million E Notes, Ba3 (sf) Placed Under Review for
    Possible Upgrade; previously on Apr 30, 2009 Assigned
    Ba3 (sf)

RATINGS RATIONALE

The rating action is prompted by the increased levels of credit
enhancement for the affected notes.

In identifying the affected notes, Moody's conducted a review of
all the outstanding French RMBS transactions rated by Moody's.
During the analysis, the rating agency took into account the
performance of the collateral to date, its deviation from Moody's
expectations as well as the levels of credit enhancement
available to absorb the future projected losses on the respective
portfolios.

Total delinquencies for the transaction has remained stable for
the past year, standing currently at 17.72%. The cumulative
defaulted loan balance increased since the deal was restructured
in Q2-2012. A loan which shows an amount of unpaid interest and
principal equal or higher than 3 installments for the last 3
consecutive months is considered defaulted, compared with 33
consecutive months prior to the restructuring. The increase in
default contributed to a build-up in unpaid principal deficiency
of currently EUR16.1 million.

The securitized pool has de-leveraged since the restructuring,
with the pool factor now standing at 44% compared to 63% in Q2-
2012. The transaction is amortizing sequentially since the
cumulative outstanding principal balance of defaulted mortgage
loans exceeded 12% of initial pool balance in September 2013. The
deal de-leverage and sequential amortization of the pool lead to
the build-up in credit enhancement for the affected tranches,
which prompted Moody's to place the ratings of the affected notes
on review for upgrade.

The full review of the ratings of the affected notes will take
into account the current capital structures in their respective
transactions. As a part of its detailed transaction review, for
each mortgage portfolio Moody's will reassess its lifetime loss
expectation reflecting the collateral performance to date as well
as the future macro-economic environment. Moody's may request
updated loan-by-loan information to revise its MILAN Aaa credit
enhancement.

Moody's has also factored into its analysis the stable sector
outlook for French RMBS.

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) performance of the underlying collateral that
is worse than Moody's expected, (2) deterioration in the notes'
available credit enhancement and (3) deterioration in the credit
quality of the transaction counterparties.

The principal methodology used in this rating was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
January 2015.

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


SPIE BONDCO 3: Moody's Raises CFR to 'Ba3', Outlook Stable
----------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating
(CFR) of Spie BondCo 3 S.C.A. to Ba3 from B2. Concurrently
Moody's has assigned the CFR of Ba3 to SPIE S.A., the newly
listed reporting entity and the borrower under the new banking
facilities. Moody's will withdraw the CFR of Spie BondCo 3
S.C.A., the previous reporting entity of the group. Moody's has
withdrawn the probability of default rating (PDR) of B2-PD of
Spie BondCo 3 S.C.A. and the B2 rating of the now-repaid senior
secured facilities previously held at SPIE SA and Clayax
Acquisition 4 SAS. The rating outlook on the Ba3 CFR is stable.

The rating action concludes the review for upgrade, which was
initiated on June 4, 2015, after Spie launched an initial public
offering (IPO) on the regulated market of Euronext Paris.

"[W]e upgraded Spie's corporate family rating by two notches
because the IPO has led to a material reduction in gross debt
resulting in credit metrics commensurate with our previous
guidance for an upgrade" says Andrey Bekasov, Assistant Vice
President - Analyst and lead analyst for Spie. "The rating action
also reflect the company's stated and more predictable financial
policies which include a conservative leverage target, enhanced
corporate governance standards, and reduced influence from
private equity sponsors. However, we also acknowledge Spie's
continued challenges in France due to the reduction in public
spending as well as the cyclicality of its Oil & Gas segment"
adds Andrey Bekasov.

RATINGS RATIONALE

On 9 June 2015, Spie announced it had successfully completed its
IPO. The offering -- which priced at 16.5 per share -- gave the
company a market capitalization of around EUR2.5 billion at the
time of listing.

Spie raised EUR700 million by way of issuance of new shares while
the sale by the existing shareholders amounted to EUR239.1
million. The newly raised funds and drawing under the banking
facilities that Spie signed with its relationship banks in May
2015 subject to a successful IPO -- including a five-year senior
term loan of EUR1,125 million -- have been applied towards debt
redemption and refinancing of the existing debt.

The IPO has led to a material reduction in reported gross debt to
EUR1,541.7 million from EUR2,260.7 million as of 31 December 2014
on a pro forma basis for the refinancing in January 2015. Based
on 2014's reported EBITDA of EUR371.3 million, reported gross
debt-to-EBITDA has decreased to 4.2x from 6.1x at FY2014. Spie
plans to reach net debt-to-EBITDA equal to or less than 2.5x by
31 December 2015 on a pro-forma basis for the IPO. As part of the
IPO transaction private equity sponsors equitized the EUR171
million shareholder loan (including accrued interest) indirectly
provided to Spie BondCo 3 S.C.A.

Moody's estimates that adjusted gross debt-to-EBITDA will
decrease to around 5.0x in 2015, down from 6.3x in 2014 on a pro
forma basis for the refinancing in January 2015. This
deleveraging coupled with interest expense savings from the
refinancing has significantly improved Spie's expected credit
metrics for 2015.

Although Spie intends to pay around 40% of the consolidated net
income in 2015 in dividends, Moody's anticipates Spie to generate
good free cash flows supported by the lower cost of debt. The
private equity sponsors consortium continues to have a
significant ownership stake in the business after the IPO (46.3%
before the possible overallotment and 42.5% after). However, this
influence has notably reduced compared with the pre-IPO
situation.

Spie continued its good financial performance in 2014. According
to audited financial statements, consolidated revenue from
ordinary activities (revenue) was up 14.0% to EUR5,384.9 million
year-on-year driven primarily by acquisitions as well as strong
organic growth in the Oil & Gas and Nuclear and in the North-
Western Europe segments. Management EBITA was up by 12.1% to
EUR334 million while the EBITA margin slightly declined to 6.2%
from 6.3%. France (44.4% of 2014 revenue) continued to experience
a low single-digit organic decline (-2.9%) in revenue over the
period mainly due to the reduction in public spending.

During the three months ended March 2015 management EBITA
increased by 11.6% year-on-year, while the EBITA margin slightly
increased year-on-year to 4.37% from 4.27%. Profitability in
France continued to show resilience despite an organic decline (-
3.6%) in revenue year-on-year. Spie managed to maintain a stable
EBITA margin in France as a result of its competitive position
including a leading market share, density of network and focus on
profitability in the competitive bidding processes.

Despite the challenging economic environment in France, Moody's
expects Spie to generate a positive total revenue growth mainly
due to acquisitions and a gradual improvement in the EBITA margin
based on favorable growth outlook for its reference markets in
North-Western Europe, Germany and Central Europe which are also
the company's operating segments that will benefit from a cost
optimization undertaken in 2014.

The Ba3 CFR of Spie recognizes: (1) intense competition in the
fragmented multi-technical services market, including larger
players, leading to pricing pressure; (2) the company's exposure
to construction and renovation demand; (3) headwinds in its core
French market driven by lower public spent; (4) ongoing growth
strategy through acquisitions; and (5) cyclicality of the Oil &
Gas segment.

More positively, the rating also reflects (1) the positive growth
dynamics dominating the technical services industry; (2) the
company's well-established position in France and diversification
into Oil & Gas and Nuclear segments; (3) its recurring revenue
from a large number of small contracts leading to stable
financial performance in the past; (4) customer diversification;
and (5) steady cash flow generation underpinned by negative
working capital needs and the business's low capital intensity
leading to a higher pace of deleveraging on a net debt basis.

LIQUIDITY

Moody's expects Spie' liquidity profile to be good over the next
12-18 months supported by positive free cash flows, a EUR400
million revolving credit facility (RCF) under which EUR250
million was undrawn at IPO closing, and EUR211.8 million of cash
as of March 31, 2015. The liquidity profile also benefits from
structurally negative working capital needs which lead to
consistently positive free cash flow on a full year basis (before
spending on acquisitions). The new RCF contains a financial
maintenance covenant, under which we would expect Spie to have
good headroom. The refinancing has also notably lengthened debt
maturities. Spie has no large upcoming debt maturities till 2020.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that leverage
will reduce at a steady pace, despite the company's acquisition
growth strategy and that liquidity will remain good.

WHAT COULD CHANGE THE RATING UP/DOWN

Although an upgrade is unlikely at present, positive rating
pressure could arise if (1) Moody's adjusted gross debt-to-EBITDA
falls below 4.0x on a sustainable basis; and (2) RCF-to-net debt
ratio is above 17%.

Conversely, negative pressure could arise if (1) Moody's adjusted
gross debt-to-EBITDA fails to decrease below 5.0x on a
sustainable basis because of, amongst other things, margin
pressures; or (2) RCF-to-net debt deteriorates below 10%. Any
significant debt-financed acquisition may also put negative
pressure on the ratings.

PRINCIPAL METHODOLOGIES

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014. 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 France, SPIE SA (Spie) is an independent
European leader in multi-technical services in the areas of
electrical, mechanical and heating, ventilation and air
conditioning (HVAC) engineering services and communications
systems, as well as in specialized energy services. Spie posted
revenues of EUR5,220.4 million (EUR5.384.9 million with SONAID JV
and holding activities) and management EBITA of EUR334.0 million
in 2014. Spie employed 38,000 employees worldwide as at 31
December 2014. It operates in nearly 550 locations in around 35
countries, with France as its largest market accounting for 44.4%
of its total revenues in 2014.

As a result of the IPO and before the possible execution of the
overallotment option, 33.9% of Spie's share capital is in free
float while the private equity sponsors consortium indirectly
owns 46.3% (including 30.1%-held by Clayton, Dubilier & Rice,
8.1% by Caisse de depot et placement du Quebec, and 8.1% by
Ardian), Caisse de depot et placement du Quebec directly owns
4.1%, management own 13.6%, and employees own 2.1% via FCPE SPIE
Actionarriat 2011. If the overallotment option is exercised, the
share of free float will increase to 37.7% while the combined
stake of private equity sponsors consortium will decrease to
42.5%, other stakes will remain unchanged.



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ORION ENGINEERED: S&P Raises CCR to 'BB-', Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its
long-term corporate credit rating on Germany-based rubber and
specialty carbon blacks producer Orion Engineered Carbons S.A.,
listed on the New York Stock Exchange.  The outlook is stable.

At the same time, S&P raised to 'BB-' from 'B+' the issue ratings
on the EUR665 million senior secured term loan due 2021 and the
EUR115 million revolving credit facility (RCF) due 2019.  The
recovery ratings on these instruments are '3', indicating S&P's
expectation of meaningful recoveries (50%-70%, higher half of the
range).

The upgrade reflects Orion's improved financial performance and
S&P's forecast that it will further reduce its leverage in 2015.
It also captures S&P's expectation of a prudent dividend policy
given the anticipated continued stake reduction of Orion's
private equity owners.

Orion's first-quarter 2015 performance was above S&P's previous
expectations both in rubber blacks (EBITDA margin of above 13%)
and specialty blacks (EBITDA margin of about 29%).  S&P now
forecasts the company will generate adjusted EBITDA of EUR210
million to EUR220 million in 2015-2016.  This reflects the
favorable volume trends, notably in Europe and North America in
the rubber black business in the first quarter, which S&P expects
to continue through the rest of the year.  S&P also factors in
the benefit of the weak euro, given that EBITDA would move EUR5
million-EUR6 million for a 5% change in all currencies against
the euro.  Furthermore, the company benefits from the time-lag in
passing through oil-derived raw material price decreases to
customers, which translates into temporarily higher profits in
2015.

The stable outlook reflects S&P's view that Orion should sustain
credit metrics in line with the rating, with adjusted debt to
EBITDA of 3.5x or below, FFO to debt of about 20%, and
consistently positive free cash flow over the coming years.  It
also takes into account the management's and private equity
owners' commitment to further deleveraging the balance sheet.

Rating pressure may arise should the supply-demand balance in the
carbon black market deteriorate, leading to debt to EBITDA of
above 3.5x without expectation of a near-term recovery.  This
could also result from a departure from S&P's current expectation
of a supportive financial policy.

Ratings upside could stem from further improvements in the
business, including EBITDA growth and a track record of resilient
performance despite volatility in end markets and the oil price.
It would also depend on a further reduction in Orion's private
equity ownership, as well as adjusted debt to EBITDA being
sustainably below 3.0x and FFO to debt above 25%.



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GREECE: Still No Progress in Bailout Talks with Creditors
---------------------------------------------------------
BBC News reports that Greece and its international creditors
remain in deadlock over its debt crisis despite a series of top-
level meetings.

The country faces default if it fails to make a EUR1.6 billion
(GBP1.1 billion) IMF debt repayment by June 30, BBC notes.

According to BBC, a meeting of European finance ministers has
ended without progress.  In a separate meeting, Greece's prime
minster and its lenders also failed to find an agreement, BBC
relays.

Germany's Angela Merkel earlier warned that talks were going
nowhere, BBC notes.

"We still haven't made the necessary progress; in some places it
looks like we're even going backwards," BBC quotes Ms. Merkel as
saying.

If Greece does default, it could exit the eurozone, with possible
repercussions for the rest of Europe and the world economy, BBC
states.

Only once agreement is reached will the European Commission, the
European Central Bank (ECB) and the International Monetary Fund
(IMF) unlock the final EUR7.2 billion tranche of bailout funds
for cash-strapped Greece, BBC says.

After the meeting of finance ministers broke up without
agreement, Eurogroup head Jeroen Dijsselbloem, as cited by BBC,
said it was not too late for Greece to accept the proposals of
its international lenders.

It was the fourth time that the finance ministers had met in a
week in an attempt to prevent a Greek debt default, BBC notes.
They will meet again on June 27, BBC says.

An EU diplomat told the BBC that the Eurogroup had to make a
decision then -- yes or no.  The Greek government has criticized
the international creditors for rejecting its own ideas, which
were initially welcomed, BBC relays.

IMF head Christine Lagarde said the lenders had been presented
with a counter-proposal by the Greek parties "at the last hour"
on June 25 and needed more time to assess it, BBC says, citing
Reuters.

The IMF has been particularly strong in refusing to accept
Greece's proposals put forward earlier this week, BBC notes.

According to BBC, correspondents say the Greek plan included far
more tax rises and far fewer spending cuts than creditors had
suggested.

In the current impasse, one concern is that the Greek proposals
include too much emphasis on tax rather than spending, BBC
states.



=============
H U N G A R Y
=============


ORCO PROPERTY: Completes Reorganization of Hungarian Subsidiaries
-----------------------------------------------------------------
Orco Property Group on June 25 announced the completion of
insolvency reorganization proceedings for its three Hungarian
subsidiaries.

As a result of long-term negotiations among the biggest creditors
throughout 2014, the restructuring plans were approved at
creditors meetings in December and later on by the Budapest
Commercial Court.  As part of the approved reorganization the
subsidiaries transferred Vaci 1 (former stock exchange building)
and Szervita assets to the financing bank and Paris Department
Store to the Hungarian Republic, which exercised its preemption
right.  Within the reorganization settlement, ORCO paid to the
financing bank EUR9 million in consideration of the release of
corporate guarantees provided by the Company as well as the
release of pledges on Vaci 188 project, which was cross-
collateralized in favor of the financing bank.

Further to the successful completion of these Hungarian
reorganizations ORCO intends to proceed with orderly disposals of
its remaining Hungarian assets, subject to its satisfaction with
market offers.

This is in line with the Company strategy to exit Hungarian and
Slovak markets.

                About Orco Property Group

Orco Property Group SA -- http://www.orcogroup.com/-- is a
Luxembourg-based real estate company, specializing in the
development, rental and management of properties in Central and
Eastern Europe.  Through its fully consolidated subsidiaries,
Orco Property Group SA operates in several countries, including
the Czech Republic, Slovakia, Germany, Hungary, Poland, Croatia
and Russia.  The Company rents and manages real estate and hotels
properties composed of office buildings, apartments with
services, luxury hotels and hotel residences; it also develops
real estate projects as promoter.



=============
I R E L A N D
=============


AVOCA CLO XIV: Moody's Assigns 'B2' Rating to Class F Notes
-----------------------------------------------------------
Moody's Investors Service announced that it has assigned these
definitive ratings to notes issued by Avoca CLO XIV Limited:

   -- EUR292,500,000 Class A Senior Secured Floating Rate Notes
      due 2028, Definitive Rating Assigned Aaa (sf);

   -- EUR7,000,000 Class B-1 Senior Secured Fixed Rate Notes due
      2028, Definitive Rating Assigned Aa2 (sf);

   -- EUR56,500,000 Class B-2 Senior Secured Floating Rate Notes
      due 2028, Definitive Rating Assigned Aa2 (sf);

   -- EUR34,500,000 Class C Deferrable Mezzanine Floating Rate
      Notes due 2028, Definitive Rating Assigned A2 (sf);

   -- EUR25,000,000 Class D Deferrable Mezzanine Floating Rate
      Notes due 2028, Definitive Rating Assigned Baa2 (sf);

   -- EUR32,000,000 Class E Deferrable Junior Floating Rate Notes
      due 2028, Definitive Rating Assigned Ba2 (sf);

   -- EUR14,500,000 Class F Deferrable Junior Floating Rate Notes
      due 2028, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's rating of the rated notes addresses the expected loss
posed to noteholders by legal final maturity of the notes in
2028. The ratings reflect the risks due to defaults on the
underlying portfolio of loans given the characteristics and
eligibility criteria of the constituent assets, the relevant
portfolio tests and covenants as well as the transaction's
capital and legal structure.  Furthermore, Moody's is of the
opinion that the collateral manager, KKR Credit Advisors
(Ireland), has sufficient experience and operational capacity and
is capable of managing this CLO.

Avoca CLO XIV is a managed cash flow CLO.  At least 90% of the
portfolio must consist of senior secured loans or senior secured
bonds, and up to 10% of the portfolio may consist of senior
unsecured loans, second-lien loans, mezzanine obligations and
high yield bonds.  The portfolio is expected to be 70% ramped up
as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.  The
remainder of the portfolio will be acquired during the six month
ramp-up period in compliance with the portfolio guidelines.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer issues EUR54.1 million of subordinated notes which will
not be rated.

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

KKR Credit Advisors acquired and held 50% of the outstanding
shares in the Issuer.  The remaining 50% of the Issuer's
outstanding shares is held by a charitable trust.  In a typical
CLO transaction 100% of the Issuer's shares would be held by a
charitable trust.  Certain structural mitigants have been put in
place to ensure that Avoca CLO XIV will remain bankruptcy remote
from KKR Credit Advisors (for example, covenants to maintain a
majority of independent directors in Avoca CLO XIV, covenants to
maintain that Avoca CLO XIV and KKR Credit Advisors are operated
as separate businesses, and a share charge given by KKR Credit
Advisors over its shares in the Issuer securing it's observance
of such covenants).

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
February 2014.  The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders.  Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.  As such,
Moody's encompasses the assessment of stressed scenarios.

Moody's used these base-case modeling assumptions:

Par amount: EUR500,000,000
Diversity Score: 40
Weighted Average Rating Factor (WARF): 2750
Weighted Average Spread (WAS): 3.9%
Weighted Average Coupon : 5.6%
Weighted Average Recovery Rate (WARR): 43%
Weighted Average Life (WAL): 8 years

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analyses, which were important
components in determining the rating assigned to the rated notes.
These sensitivity analyses include increasing the default
probability relative to the base case.  Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3163 from 2750)

Ratings Impact in Rating Notches:
Class A Senior Secured Floating Rate Notes: 0
Class B-1 Senior Secured Fixed Rate Notes: -1
Class B-2 Senior Secured Floating Rate Notes: -1
Class C Deferrable Mezzanine Floating Rate Notes: -2
Class D Deferrable Mezzanine Floating Rate Notes: -2
Class E Deferrable Junior Floating Rate Notes: -1
Class F Deferrable Junior Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3575 from 2750)

Class A Senior Secured Floating Rate Notes: 0
Class B-1 Senior Secured Fixed Rate Notes: -3
Class B-2 Senior Secured Floating Rate Notes: -3
Class C Deferrable Mezzanine Floating Rate Notes: -3
Class D Deferrable Mezzanine Floating Rate Notes: -2
Class E Deferrable Junior Floating Rate Notes: -1
Class F Deferrable Junior Floating Rate Notes: -2



=========
I T A L Y
=========


ISTITUTO CENTRALE: S&P Puts BB+ Counterparty Rating on Watch Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
counterparty credit rating on Italian bank Istituto Centrale
Delle Banche Popolari Italiane (ICBPI) and its core subsidiary
CartaSi SpA (CartaSi) on CreditWatch with negative implications.
At the same time, S&P affirmed the 'B' short-term rating on both
banks.

The CreditWatch placement follows the announcement on June 19
that Italian regional banks that are shareholders of ICBPI signed
an agreement to sell 85.8% of the company to a consortium of
private equity funds, Bain Capital-Advent-Clessidra.

In S&P's view, there is still a lack of clarity about the future
structure of this transaction.  In particular, S&P understands
that the parties are currently exploring several options with
regard to the amount and structure of leverage and will only be
finalized upon approval by local and European regulators.

In S&P's base-case scenario, it assumes that ICBPI's solvency
levels will continue to benefit from regulatory supervision by
the Bank of Italy.  However, S&P believes that the new ownership
by private equity shareholders could reduce the company's
capitalization levels.

S&P also believes that ICBPI's future business strategy under new
ownership could have a negative effect on S&P's current view of
its business position, for instance in the event of more
aggressive business growth or diversification into riskier
business lines.

At the same time, S&P doesn't expect the transaction to change
the importance of CartaSi to the ICBPI group.  This is because of
the high contribution of CartaSi's business to overall group
revenues. As a result, S&P continues to align the ratings of
CartaSi with those on ICBPI.

Italian regional banks are: Credito Valtellinese S.c., Banco
Popolare S.c., Banca Popolare di Vicenza S.c.p.A., Veneto Banca
S.c.p.A., Banca Popolare dell'Emilia Romagna S.c., Iccrea Holding
S.p.A., Banca Popolare di Cividale S.c.p.A., UBI Banca S.c.p.A.,
Banca Popolare di Milano S.C.r.l., Banca Sella Holding S.p.A.,
and Banca Carige S.p.A.

The CreditWatch placement reflects S&P's view that it could lower
the ratings on ICBPI if S&P anticipated that its financial and/or
business profile would deteriorate as result of the transaction.

This could happen if S&P anticipated that ICBPI's new business
plan would significantly undermine its currently prudent growth
strategy or lead it to diversify its business into riskier
segments.  S&P could also lower the ratings if it anticipated
that ICBPI's solvency and/or liquidity position would
significantly deteriorate as a result of a more aggressive
financial policy.

S&P plans to resolve the CreditWatch in the next 90 days once it
receives further details on the structure of the transaction and
the new shareholders' business plan for ICBPI.  However, S&P
notes that any delay in the regulatory approval of the
transaction could prolong this process.


SALINI IMPREGILO: S&P Raises CCR to 'BB+', Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Italy-based construction company Salini
Impregilo SpA to 'BB+' from 'BB'.  The outlook is stable.

At the same time, S&P revised its issue rating on Salini
Impregilo's EUR400 million senior unsecured notes maturing in
2018 to 'BB+' from 'BB-'.  The recovery rating on the notes is
'4', indicating S&P's expectations of average (30%-50%) recovery
for the creditors in the event of a payment default.

The upgrade reflects S&P's view that Salini Impregilo should
achieve stronger credit ratios than S&P had previously expected
because of supportive market trends, a large backlog of orders,
and reduced interest expenses.

Earnings growth and lower interest expenses should enable Salini
Impregilo to post FFO to debt of about 45% in 2015.  S&P
calculates that the company will grow its EBITDA by 10%-15%
annually over the next two years on the back of a strong demand
for infrastructure and a large order backlog, which amounted to
nearly eight years of revenues at year-end 2014.  S&P understands
that the Salini-Impregilo merger is proceeding as planned and
remaining synergies could also support profitability.  In
addition, a reduction in interest expenses will bolster FFO
generation; Salini Impregilo substantially reduced its cost of
debt by refinancing bank facilities at the beginning of 2015.

However, weak free operating cash flow (FOCF) and the volatility
of the company's business model constrain the ratings.  S&P
thinks that adjusted FOCF, which reached minus EUR138 million in
2014, should remain negative in the next two years as a result of
high capital expenditure (capex) and rising working capital.
While management's commitment to reduce its reported net debt
supports the rating, S&P sees some uncertainties in the next few
years as the construction sector remains structurally volatile.
In addition, S&P do not rule out that Salini Impregilo's exposure
to emerging markets could result in unexpected operating
setbacks. However, S&P thinks that the company has enough
headroom at its current rating level to accommodate unexpected
cash outflows.

Good geographic diversity and a focus on infrastructure support
Salini Impregilo's business profile, in S&P's view.  Emerging
markets generate about 60% of the company's earnings and Italy
accounted for only 13% in 2014.  S&P thinks that infrastructure
has attractive growth potential, benefiting from increasing
urbanization and the growing weight of the middle classes in
emerging markets, and from the need to replace aging facilities
in developed countries.

Nevertheless, the company's high exposure to emerging markets
also creates unpredictable downside risk that constrains the
rating. Furthermore, Salini Impregilo has a negligible presence
in concessions, which S&P considers to be more stable than
construction.  The company also remains much smaller than higher-
rated European companies such as Strabag, Bilfinger, and Vinci.

S&P's base case assumes:

   -- Real world GDP growth of 3.4% in 2015 and 3.9% in 2016.
   -- Healthy growth of the infrastructure market through 2015
      and 2016, driven by new projects in emerging markets and
      renewals in developed countries.
   -- Annual revenue growth of about 10%-15% over the next two
      years, supported by a healthy backlog of orders.
   -- A stabilization of adjusted EBITDA margin at about 11%.
   -- A decline in interest costs, thanks to Salini Impregilo
      refinancing its bank debt at the beginning of 2015.
   -- Limited negative working capital fluctuations.
   -- About EUR500 million of capex overall for 2015-2016.
   -- Prudent financial policy.

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

   -- A stabilization of the adjusted EBITDA margin at about 11%
      over the next two years.
   -- FFO to debt increasing gradually to about 45%-50% in 2016
      from 42% in 2014.
   -- Negative adjusted FOCF in 2015 and 2016.

The stable outlook reflects S&P's view that a favorable operating
environment and a sizable backlog of orders will enable Salini
Impregilo to keep growing its earnings at a healthy pace and
maintain adjusted FFO to debt of about 45% in the next two years,
despite negative FOCF.  S&P also assumes that the company will
maintain strong risk-control management to minimize the risks
associated with its exposure to projects in emerging-market
countries.

S&P could raise its ratings on Salini Impregilo if it sustained
meaningfully positive FOCF, or if FFO to debt improved toward the
strong end of the 45%-60% range.  This could happen if the
company's large backlog and favorable economic conditions
translated into higher-than-anticipated earnings growth.  A
positive outlook would also require Salini Impregilo to
successfully manage its working capital and capex needs.

S&P could consider lowering the rating if Salini Impregilo's
adjusted FFO-to-debt ratio fell below 30%.  Such a scenario could
unfold if it made a large acquisition, chose to offer generous
shareholder remuneration, or suffered a severe operating setback.
S&P could also downgrade the company if liquidity became less
than adequate.



===================
L U X E M B O U R G
===================


AEOLOS SA: S&P Lowers Rating on EUR355MM Class A Notes to CCC
-------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on two tranches issued by European repackaging
transactions.

Specifically, S&P has:

   -- Lowered its rating on Aeolos S.A.'s class A notes; and

   -- Raised its rating on Poplar Finance Ltd.'s series 2008-1.

The rating actions on these two tranches follow S&P's recent
rating actions on their underlying collateral or reference
obligations.  Under S&P's criteria applicable to transactions
such as these, it would generally reflect changes to the rating
on the collateral or reference obligation in S&P's rating on the
tranche.

RATINGS LIST

Class        Rating            Rating
             To                From

Poplar Finance Ltd.
EUR11 Million Secured Repackaging Schuldschein Loan Agreement
With Limited Recourse Series 2008-1

Rating Raised

             AAA               AA+

Aeolos S.A.
EUR355 Million Floating-Rate Asset Backed Notes

Rating Lowered

A            CCC               CCC+


BANQUE INTERNATIONALE: Moody's Lifts BCA Rating to baa3 from ba1
----------------------------------------------------------------
Moody's Investors Service concluded its rating reviews on three
banks based in Luxembourg (Aaa stable). These reviews were
initiated on March 17, 2015, following the publication of Moody's
new bank rating methodology and also reflect revisions in Moody's
government support assumptions for European banks.

Moody's rating action on Luxembourg banks reflects the following
considerations: (1) the 'Very Strong -' Macro Profile of
Luxembourg; (2) Luxembourg banks' strong core financial metrics;
(3) the protection offered to senior creditors by substantial
volumes and subordination of bail-in-able securities, as captured
by Moody's Advanced Loss Given Failure (LGF) liability analysis;
and (4) the reduced likelihood of government support being
forthcoming for these institutions in the event of need.

Among the actions Moody's has taken are the following:

-- Baseline Credit Assessments (BCAs) and adjusted BCAs were
    upgraded for two banks and affirmed for one bank;

-- Long-term bank deposit ratings were upgraded for two banks
    and downgraded for one bank;

-- Long-term bank senior unsecured debt ratings were upgraded
    for one bank, downgraded for one bank and confirmed for one
    bank.

Furthermore, Moody's affirmed the short-term deposit and debt
ratings for the three Luxembourg banks involved in today's rating
action. Concurrently, Moody's has also assigned Counterparty Risk
Assessments (CR Assessments) to these three banks, in line with
its new bank rating methodology.

Moody's has withdrawn the outlooks on all junior instrument
ratings for its own business reasons.

Outlooks, which provide an opinion on the likely rating direction
over the medium term, are now assigned only to long-term senior
debt and deposit ratings.

The full list of affected credit ratings is available at:

http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_182536

RATINGS RATIONALE

The new bank rating methodology includes a number of elements
that Moody's has developed to help more accurately predict bank
failures and determine how each creditor class is likely to be
treated when a bank fails and enters resolution. These new
elements capture insights gained from the crisis and the
fundamental shift in the banking industry and its regulation.

(1) LUXEMBOURG'S "VERY STRONG -" MACRO PROFILE

Banks in Luxembourg benefit from the Grand Duchy's significant
wealth and strong debt metrics, as well as the strength of the
institutional framework and low susceptibility to event risk.
Luxembourg's ability to attract and retain foreign investors and
a highly qualified work force encourages innovation and growth in
the financial and other service sectors, which has contributed to
raising and maintaining a high level of GDP per capita.
Furthermore, Luxembourg's track record of fiscal prudence further
supports the economy. However, the economy is highly dependent on
the health of the financial sector, which accounts for around a
third of Luxembourg's GDP and 12% of total employment.

Luxembourg domestic retail banks take deposits through their
branches, but also through their private banking activities and
through the treasury services they provide for the country's very
large fund management industry. Limited lending opportunities
within the small Luxembourg economy means the deposits they take
are typically greater than the loans they give out. A wealthy
working-age population, the presence of foreign money in their
private banking businesses and significant treasury management
activities also play a part in the banks' funding strength.

The Luxembourg banking system does not suffer from excessive
fragmentation that could result in overcapacity and depressed
profitability. The systemically important financial institutions
have very large cumulated market shares in retail banking for
private individuals and commercial banking, allowing adequate
pricing power and profitability. Nonetheless, the Luxembourg
banking system is competitive, with no significant distortion
from the public sector or sponsored institutions.

(2) LUXEMBOURG BANKS' STRONG CORE FINANCIAL METRICS

The three banks' median BCA is around baa1 (BCAs range from baa3
to a2), which reflects (1) their strong core financial metrics
including their moderate risk profiles, focused on traditional
commercial and retail banking; (2) sound liquidity relying mainly
on stable funding sources; and (3) substantial loss-absorption
capacity through earnings, loan-loss reserves and, ultimately,
capital. Luxembourg banks' profitability is reduced by the
current low interest-rate environment.

(3) PROTECTION OFFERED TO SENIOR CREDITORS, AS CAPTURED BY
MOODY'S ADVANCED LGF LIABILITY ANALYSIS

Since Luxembourg banks are subject to the EU Bank Resolution and
Recovery Directive (BRRD), Moody's considers Luxembourg to have
an Operational Resolution Regime. Accordingly, Moody's applies
its Advanced LGF analysis to Luxembourg banks' liability
structures. This analysis results in a low to very low loss-
given-failure for long-term deposits and senior debt in most
cases, reflected in a one or two-notch uplift from the adjusted
BCA for all banks. This approach captures the protection offered
by the banks' sizeable volumes of deposits and senior debt, and
the amount of debt subordinated to both senior debt and deposits.

(4) REDUCED LIKELIHOOD OF GOVERNMENT SUPPORT

Moody's has lowered its expectations about the degree of support
that a government might provide to a bank in Europe. The main
trigger for this reassessment is the introduction of the BRRD in
the EU, which came into effect in January 2015 and is currently
being transposed into local law in each European jurisdiction.
This has resulted in a reduction in government support uplift in
Moody's senior unsecured debt and deposit ratings to one notch
for the three Luxembourg banks as they are all considered
systemically important by Moody's. The impact of this is partly
and in some cases more than offset by the notches of LGF uplift
in recognition of the low loss-given-failure described above.

ASSIGNMENT OF COUNTERPARTY RISK ASSESSMENTS

As part of today's rating action, Moody's has assigned CR
Assessments to three banks. CR Assessments are opinions of how
counterparty obligations are likely to be treated if a bank
fails, and are distinct from debt and deposit ratings in that
they (1) consider only the risk of default rather than the
likelihood of default and the expected financial loss incurred in
the event of default and (2) apply to counterparty obligations
and contractual commitments rather than debt or deposit
instruments. The CR Assessment is an opinion of the counterparty
risk related to a bank's covered bonds, contractual performance
obligations (servicing), derivatives (e.g., swaps), letters of
credit, guarantees and liquidity facilities.

Moody's CR Assessments for banks subject to a going-concern
operational resolution regime, which includes all Luxembourg
banks, start with the banks' adjusted BCA and use an advanced LGF
approach that takes into account the volume of liabilities
subordinated to counterparty obligations in the bank's liability
structure as well as any assumption of government support.

As a result, the CR Assessments for two of the Luxembourg banks
is one notch higher than their deposit ratings, and for one bank
(BGL) it is two notches above the deposit rating.


-- SPECIFIC ANALYTICAL FACTORS FOR THE THREE BANKS

-- Banque et Caisse d'Epargne de l'Etat (BCEE)

Moody's upgraded BCEE's BCA and adjusted BCA to a2 from a3,
reflecting the bank's stable profitability, strong liquidity and
capitalization, as well as a its low-risk profile. The upgrade
also takes into consideration BCEE's reduced exposure
concentrations to highly-indebted European countries, including
Italy (Baa2 stable). The exposure to Italian government bonds,
which has represented close to 100% of tangible common equity
(TCE) in the past, has decreased to only one third of TCE in
recent years and is now thus less of a constraint on the BCA.

BCEE's long-term deposit ratings were downgraded to Aa2 from Aa1
and its long-term senior unsecured debt ratings to Aa3 from Aa1.
The outlooks on the long-term deposit and senior unsecured debt
ratings are stable. These ratings result from (1) the bank's
adjusted BCA of a2; (2) the two-notch LGF uplift for deposits and
one-notch LGF uplift for senior debt given the large volume of
deposits and more limited amount of senior unsecured debt and
subordination below both deposits and senior debt; and (3)
government support uplift of one notch (from five notches
previously), reflecting a moderate probability of support.
Although the Luxembourg government would likely favor extending
support to this state-owned bank in case of need, Moody's notes
that BCEE is now subject to the BRRD and therefore the state's
ability to act is more restricted than previously. Moody's now
believes that the probability of government support for senior
unsecured debt and deposits is moderate, resulting in uplift of
one notch for both ratings, in line with other European banks
considered systemically important.

Concurrently, Moody's affirmed the short-term deposit and senior
unsecured debt ratings at Prime-1 and upgraded the subordinated
debt rating to A3 from Baa1.

Moody's also assigned a long and short-term CR Assessment of
Aa1(cr)/Prime-1(cr) to BCEE.

-- BGL BNP Paribas (BGL)

Moody's upgraded BGL's long-term deposit rating to A1 from A2 and
confirmed the senior unsecured debt rating at A2. Both the short-
term deposit and debt ratings were affirmed at Prime-1. The
bank's subordinated debt ratings were also affirmed at Baa1.
Furthermore, Moody's assigned a CR Assessment of Aa2(cr)/Prime-
1(cr) to BGL.

BGL's long-term deposit and senior unsecured ratings reflect the
bank's standalone BCA, which has been affirmed at a3, owing to
the bank's solid financial fundamentals. The deposit rating also
reflects a low loss-given-failure given the sizeable volume of
deposits, resulting in one notch of LGF uplift above the bank's
adjusted BCA. The loss-given-failure of the bank's senior
unsecured debt is however moderate, given the limited volume of
this debt category and the possibility of its subordination to
junior deposits in resolution, resulting in no LGF uplift.
Government support uplift is limited to one notch for both
deposits and senior unsecured debt, reflecting a moderate
probability of support.

-- Banque Internationale a Luxembourg (BIL)

Moody's upgraded BIL's BCA and adjusted BCA to baa3 from ba1,
reflecting the bank's recent track record of solid results since
the bank has been acquired by Precision Capital. The baa3 BCA
reflects (1) the bank's strong and stable core retail and
commercial franchise in Luxembourg; and (2) its sound financial
fundamentals. Despite some concentrations on sovereign bonds of
peripheral European countries in the investment portfolio, namely
Italy, Ireland (Baa1 stable) and Spain (Baa2 positive), these
exposures do not constrain the BCA at the baa3 level.

BIL's long-term deposit and senior unsecured debt ratings were
upgraded to A3 from Baa1. This results from (1) the bank's
adjusted BCA of baa3; (2) the two-notch LGF uplift for deposits
and senior debt from the baa3 adjusted BCA, given the large
volume of deposits and the amount of senior unsecured debt and
subordination below both deposits and senior debt; and (3) a
moderate probability of support from government support uplift of
one notch (from three notches previously) as Moody's considers
BIL to be a systemically important bank. The outlooks on the
long-term deposit and senior unsecured debt ratings are positive.
This reflects potential for an upgrade in the BCA if the bank
continues to accumulate a strong track record of earnings
stability whilst demonstrating clarity over its strategic
direction, which would likely result in an upgrade to the
ratings.

Concurrently, Moody's upgraded BIL's subordinated debt rating to
Ba1 from Ba2 and junior subordinated debt rating to Ba2(hyb) from
Ba3(hyb). The rating agency also affirmed the bank's Prime-2
short-term deposit and senior unsecured debt ratings.

Moody's also assigned a long and short-term CR Assessment of
A2(cr)/Prime-1(cr) to BIL.

WHAT COULD CHANGE THE RATINGS UP/DOWN

An upgrade of the long-term debt and deposit ratings of the
Luxembourg banks involved in this rating action could result from
(1) a sustainable and significant improvement in the banks'
profitability; (2) a durable improvement of asset quality,
notably through lower exposures to peripheral European
sovereigns; and/or (3) further clarity of the strategic direction
and stability of financial results for BIL.

The ratings could be downgraded if (1) the macroeconomic
environment weakens and asset quality and/or credit underwriting
standards deteriorate; (2) revenue and profitability pressures
intensify, especially if banks are unable to re-price their loan
portfolio against the background of a low interest-rate
environment; and/or (3) the banks' capital and/or liquidity
positions were to deteriorate.


ION TRADING: Moody's Affirms 'B2' Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service affirmed the corporate family rating
(CFR) and the probability of default rating (PDR) of ION Trading
Technologies Limited (ION Trading, or the company) at B2 and B2-
PD respectively. Concurrently, Moody's has downgraded from B1 to
B2 the rating of the USD40 million Revolving Credit Facility
maturing 2019, and the USD150 million and EUR450 million First
Lien Term Loans maturing 2021 borrowed by ION Trading
Technologies S.a r.l.

Moody's has also assigned a rating of B2 to the new First Lien
2015 Incremental Term Loans of USD400 million maturing 2021
proposed as part of the refinancing. The proceeds of the new
facility will be applied to prepay in full the company's Second
Lien Loan maturing 2022 and to prepay part of the existing First
Lien Loans. Once the refinancing is complete, Moody's will
withdraw the Caa1 rating on the existing Second Lien Loan.

The outlook on all ratings remains stable.

RATINGS RATIONALE

The downgrade of the First Lien Senior Facilities reflects the
proposed issuance of the additional first lien debt and increased
leverage through the first lien segment of the capital structure,
from 4x to 5.5x on a Moody's adjusted basis at 31 March 2015, on
the expectation of a successful closing of the refinancing. The
B2 rating is in line with the CFR reflecting the removal of
second lien debt from the structure. The probability of default
rating remains at B2-PD and the loss given default at 50%, which
reflects Moody's standard recovery rate for a senior-only
covenant-loose loan structure.

ION Trading's CFR reflects (1) continuous strong operating
performance with high cash flow generation; (2) a more
conservative financial policy with increased focus on
deleveraging; (3) good revenue visibility as a result of long-
term contracts and high customer retention rates; (4) positive
market dynamics supported by increased outsourcing trends,
regulatory changes and complexity of products; and (5) the
company's leading market position and high margins within a
fragmented industry segment.

The ratings remain constrained by: (1) the relatively high
leverage, although improved through continued EBITDA growth and
debt repayments in 2014; (2) dependence on a narrow range of
software and services for fixed income electronic trading
activities; and (3) high customer concentration with 35% of 2014
revenues generated by its top 10 clients.

ION Trading demonstrated strong revenue and EBITDA growth of
11.4% and 20.6% respectively in its audited accounts for the year
ended December 31 (FY) 2014. This was driven largely by increased
sales of ION Trading's products to existing customers, as well as
a significant increase in non-recurring income from new product
launches and large projects. Leverage reduced from 6.8x in FY2013
to 5.5x in FY2014, benefitting from earnings growth and also
significant voluntary debt repayments in FY2014 following a
change to a more conservative financial policy. This is now more
focused on deleveraging and integration of acquisitions and we
expect it to continue in the next 12-18 months.

Moody's expects the rate of deleveraging to slow in FY2015 due to
adverse currency movements and a reduction in the non-recurring
income, these factors however being offset by continued growth of
recurring revenues and further debt prepayments.

ION Trading's liquidity is good, supported by strong free cash
flow generation of EUR95 million for FY2014 resulting from its
low capex requirements and negative working capital. As at
March 31, 2015, the company had EUR62 million cash on balance
sheet and full availability of its USD40 million Revolving Credit
Facility.

The stable outlook reflects Moody's expectation that the company
will maintain adjusted leverage substantially below 6.0x and will
sustain its current operating performance. It also reflects the
expectation that the company will adhere to its current financial
policy with further voluntary debt prepayments, no shareholder
distributions and limited debt funded acquisitions.

Positive ratings pressure could develop if ION Trading reduces
adjusted leverage towards 4.5x on a sustainable basis, while
preserving its strong margins and FCF to net debt ratio above
15%, and maintaining a conservative financial policy.

Negative ratings pressure could occur if leverage increases above
6.0x, if margins weaken, if FCF to debt falls substantially below
10% or liquidity profile deteriorates, or if the company adopts a
more aggressive financial policy, either in terms of acquisitions
or shareholder returns.

The principal methodology used in these ratings was Global
Software Industry published in October 2012. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June 2009. Please see the Credit Policy page on www.moodys.com
for a copy of these methodologies.

Privately owned by ION Investment Group, a TA Associates company,
ION Trading Technologies Limited is a global provider of sell-
side trading software and services to banks and other financial
institutions operating in the fixed income markets. For FY2014
the company reported revenues of EUR287 million and EBITDA of
EUR143 million.


ION TRADING: S&P Affirms 'B+' CCR, Outlook Remains Stable
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Ireland-headquartered ION Trading
Technologies Ltd. (ION Trading), a provider of trading software
and solutions to financial institutions, and a wholly owned
subsidiary of ION Investment Group Ltd.  The outlook remains
stable.

At the same time, S&P assigned its 'B+' issue rating to the
company's proposed new US$400 million first-lien term loan due
2021, in line with S&P's rating on the company's existing first-
lien term loan and its US$40 million senior secured revolving
credit facility (RCF).  The new term loan will be issued by a
newly formed company incorporated in Ireland as a wholly owned
subsidiary of the group, while the group's existing debt
instruments were issued by ION Trading's wholly owned subsidiary
ION Trading Technologies S.a.r.l.  The recovery rating on all
first-lien debt instruments is '3', indicating S&P's expectation
of meaningful recovery in the event of a payment default.
However, S&P now sees recovery prospects at the lower end of the
50%-70% range.  S&P expects to withdraw the issue rating on the
company's existing $150 million term loan following the
completion of the proposed refinancing.

In addition, S&P affirmed its 'B-' issue and '6' recovery ratings
on the company's US$250 million second-lien term loan due 2022,
issued by ION Trading Technologies S.a.r.l.  S&P expects to
withdraw the issue rating on this instrument following the
completion of the proposed refinancing.

The affirmation of S&P's rating on ION Trading primarily reflects
S&P's view that the proposed refinancing would be only mildly
positive for ION Trading's credit metrics, chiefly because its
gross debt remains unchanged and moderate interest cost savings
are more than offset by transaction fees in 2015.  S&P continues
to expect the adjusted debt-to-EBITDA ratio to moderately decline
to 5.0x-5.5x by the end of 2015 from 5.5x as of year-end 2014.
Pro forma the closing of the transaction, S&P expects the funds
from operations (FFO)-to-debt ratio to slightly improve by about
0.5 percentage points compared with S&P's previous forecast.
Furthermore, healthy free operating cash flow (FOCF) generation
prospects should enable the company to further reduce debt.

S&P continues to assess ION Trading's financial risk profile as
"highly leveraged," given S&P's expectations of an adjusted debt-
to-EBITDA ratio above 5x and FFO to debt somewhat below 12% in
2015.  This is partly mitigated by S&P's expectations of solid
annual FOCF of EUR65 million-EUR95 million in 2015 and 2016,
supported by strong EBITDA margins and very limited capital
expenditure requirements, which should allow ION Trading to
deleverage swiftly if the company continues to apply excess cash
for debt reduction.

S&P still assess ION Trading's business risk profile as "fair."
This notably reflects the company's very narrow product focus on
trading solutions for electronic fixed-income markets and its
resulting sole reliance on financial institutions as end
customers for its product offering.  In addition, S&P thinks that
the business risk profile is constrained by the still high
customer concentration as well as meaningful competition from in-
house solutions, a few larger competitors such as SunGard, and
many smaller competitors.  These constraints are partly offset by
the company's:

   -- Large recurring revenue base (more than 80% of total
      revenues), through non-cancellable subscription agreements
      that typically last about five years; and

   -- Strong track record of profitable organic and acquisitive
      growth, helped by high client retention, successful cross-
      and up-selling efforts, and new customer wins.

Compared with many of its rating peers, ION Trading has markedly
higher profit margins, relatively strong interest cover ratios,
and solid FOCF prospects.  In addition, ION Trading has
demonstrated its willingness to use excess cash flows to reduce
debt, despite being owned by a financial sponsor.  As a result,
the corporate credit rating is one notch higher than the anchor
to reflect S&P's positive comparable ratings analysis.

The stable outlook reflects S&P's assumption that ION Trading
will increase its EBITDA interest cover ratio to more than 3.0x
and further utilize its solid FOCF generation to maintain a debt-
to-EBIDTA ratio at 5.0x-5.5x in 2015.

S&P could take a positive rating action if ION Trading is able to
maintain profit margins at about 50% and improve cash interest
cover to about 3.5x-4.0x, while implementing a financial policy
that leads to adjusted debt to EBITDA below 4.5x.  S&P also would
expect that the company could sustain leverage at this level.

S&P could lower the rating if:

   -- ION Trading pursued debt-financed acquisitions or
      shareholder returns that pushed the leverage ratio above
      6.0x;

   -- Sales fell due to another severe financial crisis in Europe
      that hindered demand from ION Trading's Europe-based
      customers;

   -- ION Trading's adjusted EBITDA margin declined to below 40%
      as a result of increasing competition; or

   -- EBITDA interest cover dropped below 2.5x.



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


AI ALABAMA: Moody's Assigns 'B2' Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR) to AI
Alabama Midco B.V. the holding company of Ammeraal Beltech
Holding B.V.

Concurrently, Moody's has assigned a provisional (P)B1 (LGD3)
rating to the proposed 7-year EUR205 million 1st Lien Term loan
and the 6-year EUR40 million RCF.  A (P)Caa1 (LGD 5) rating has
been assigned to the proposed 8-year EUR60 million 2nd Lien Term
Loan.  The borrower under the loans will be AI Medico Investments
B.V., although Moody's understands the name of the issuer will
change to AI Alabama B.V.  The outlook on all ratings is stable.
This is the first time that Moody's has rated AI Alabama Midco
B.V.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the agency's preliminary
credit opinion regarding the transaction only.  Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings to the group's proposed senior secured
loans. Definitive ratings may differ from provisional ratings.

RATINGS RATIONALE

The B2 Corporate Family Rating reflects Ammeraal's good and
defensive, albeit not dominant, niche market position in the
relatively fragmented light-weight belting market.  Ammeraal is
exposed to cyclicality as evidenced by the decline in earnings in
the downturn of 2008/09.  However, Ammeraal's integrated business
model (manufacture and fabrication), product quality, innovation
and good customer relationships, have ensured a large proportion
of recurring revenues.  These characteristics have provided the
company with a greater degree of earnings stability and a
relatively swift recovery following the downturn.

The rating also reflects the good future demand fundamentals for
light-weight belting product and Ammeraal's strategy of targeting
strategic customers and identifying cross-selling opportunities.
This, combined with a notable step-up in Ammeraal's FY15 EBITDA
margin owing to improved product-mix and efficiency measures,
should modestly increase the generation of positive free cash
flow in the short to medium-term.  However, Moody's highlights
that whilst Ammeraal's cost base and capex remain fairly
flexible, the higher debt burden following the buyout by funds
managed by Advent will increase the level of interest paid and
also limit Ammeraal's free cash flow (FCF) in terms of FCF to
debt to the low single digits.

A ratings constraint represents Ammeraal's high leverage
following the proposed EUR305 million refinancing as measured by
gross adjusted debt/EBITDA.  This is expected to remain around
5.5x in the medium-term.  Meaningful deleveraging from EBITDA
growth is not expected after 2015 as the EBITDA growth post 2015
is only modest.  Moreover the term loans do not amortize and we
do not expect cash surpluses to be made for the purpose of debt
repayment.  One possible use of cash surpluses is for
opportunistic bolt-on acquisitions to allow Ammeraal to
participate in the consolidation of the industry and accelerate
its growth plans.  However, in such a scenario, cash-funded
acquisitions would positively impact EBITDA and gross leverage.

The rating assumes Ammeraal is committed to deleveraging.
Covenants based on unadjusted total net debt/EBITDA are loosely
set and allow additional debt to be raised either through
drawings of the RCF and/or additional permitted indebtedness.
Signs of a more aggressive financial policy will likely lead to
negative rating action.

The company's liquidity is also deemed to be good in the context
of the proposed rating.

Positive rating action is likely where:

   -- Improving trend in the company's market positions including
      greater penetration in Asia and the US

   -- Adjusted gross debt/EBITDA decreases to below 5.0x on a
      sustainable basis, reflecting both improvements in EBITDA
      but also the company's commitment to maintaining a
      conservative financial policy

   -- Free cash flow/debt is sustainably around the mid single-
      digit range, supported by EBITA margins of around 10%

Negative rating action is likely where:

   -- Deteriorating market positions, particularly in main
      markets such as Europe or within the food industry, where
      it currently benefits from a strong market position

   -- Adjusted gross debt/EBITDA sustainably in excess of 6.0x,
      reflecting a deterioration in EBITDA and/or additional
      indebtedness and evidence of an aggressive financial policy
      (dividends or large acquisitions)

   -- Interest coverage as defined by EBITA to interest expense
      weakens to below 1.5x

   -- Negative FCF on a sustainable basis

STRUCTURAL CONSIDERATIONS

The (P)B1 ratings assigned to the proposed EUR205 million senior
secured first lien term loan and the EUR40 million revolving
credit facility is one notch above the group's CFR.  The rating
on these instruments reflects their contractual seniority in the
capital structure and benefits from a collateral package.  This
comprises of a pledge over the majority of the group's assets as
well as upstream guarantees from most of the group's operating
subsidiaries, representing more than 80% of aggregate EBITDA and
assets.  Lenders of the second lien term loan benefit from the
same collateral and guarantee package, but on a subordinated
basis.  The rating of the second lien term loan, therefore, is
two notches below the group's B2 corporate family rating at
(P)Caa1.

The grid-implied rating for the last-twelve-months period ending
Dec. 31, 2014, indicates a rating of B1, a notch above the
current rating, given the interest, leverage and cash flow
metrics do not reflect the EUR305 million refinancing transaction
and the additional interest on the higher debt burden.  The 12-18
month forward-looking grid indicates a rating of B2, in line with
the current CFR of B2.  Moody's considers the business profile to
be borderline B/Ba.

COMPANY PROFILE

Ammeraal, based in Alkmaar, the Netherlands, is a global producer
of light-weight belting products.  It focuses on the
manufacturing, fabrication, assembly, sales and service of
synthetic belts (41% of FY14 revenues), modular belts (20% of
FY14 revenues), specialty belts (19% of FY14 revenues) and other
belt types representing the remainder.  The company serves a
variety of end markets including industries such as food,
logistics, industrials, airports, paper and print with customers
representing OEMs, distributors and end-users.

Advent will use the aforementioned financing to fund part of the
purchase price for Ammeraal and transaction expenses.  The
transaction is expected to close in July 2015.


AI ALABAMA: S&P Assigns Preliminary 'B' CCR, Outlook Stable
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to AI Alabama Midco B.V. (AI
Alabama), prospective top holding company of The Netherlands-
based light-weight belting producer Ammeraal Beltech Holding B.V.
(Ammeraal Beltech).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
and a preliminary '3' recovery rating to AI Alabama's proposed
EUR205 million first-lien term loan and EUR40 million revolving
credit facility (RCF).  The recovery rating indicates S&P's
expectations of meaningful recovery in the event of payment
default, in the lower half of the 50%-70% range.

S&P also assigned its preliminary 'CCC+' issue rating and a
preliminary '6' recovery rating to AI Alabama's proposed EUR60
million second-lien term loan.  The recovery rating on these
facilities reflects S&P's expectations of negligible (0%-10%)
recovery in a default scenario.

Through AI Alabama, funds advised by Advent International
Corporation (Advent) will raise EUR265 million of drawn debt to
finance the acquisition of Ammeraal Beltech, a global
manufacturer of light-weight belting products with revenues of
about EUR325 million in 2014.  S&P's preliminary 'B' rating on AI
Alabama reflects S&P's view of the AI Alabama group's "highly
leveraged" financial risk profile and "weak" business risk
profile, as S&P's criteria define these terms.  S&P's assessments
reflect the group's new capital structure as a result of the
leveraged buyout.

Following the transaction, S&P estimates that the group's
Standard & Poor's-adjusted net debt-to-EBITDA ratio will be about
8.5x by year-end 2015.  This is based on S&P's assumption that AI
Alabama will slightly improve operating margins (EBITDA) thanks
to favorable industry trends, good sales visibility, and the
company's high portion of aftersales revenues.  S&P's estimated
debt figure includes the newly issued first-lien term loan of
EUR205 million as well as the second-lien term loan of
EUR60 million.  S&P expects the EUR40 million RCF to be drawn by
about EUR5 million for guarantees, which S&P do not include in
its debt calculation.  S&P do not give benefit for the about
EUR10 million-EUR15 million of cash at year-end 2015, because the
company is owned by a financial sponsor.

S&P's calculation of debt also includes a EUR100 million
shareholder loan.  This loan does not qualify for equity
treatment, according to S&P's criteria, because it is not stapled
to the equity.  However, S&P notes that this instrument is deeply
subordinated to all existing and future debt instruments, and no
mandatory cash payments are associated with this instrument.
Excluding this instrument, S&P expects debt to EBITDA will be at
about 6.5x at year-end 2015.

"We view AI Alabama's business risk profile as "weak," reflecting
the group's limited size and scope, which results in inherently
greater vulnerability to external changes, in our view.
Furthermore, the company has a relatively small presence in
emerging markets, with about 10% of revenues generated outside of
the Americas and Europe, and demonstrated adjusted EBTIDA margins
of about 11.5% in 2013 and about 13.0% in 2014, which are at the
lower end of the 11%-18% range that we consider average for the
capital goods industry.  We think that the fragmented nature of
the global light-weight belt market poses challenges to AI
Alabama's competitive position.  With an about 10% market share,
the group does not have a dominant position in this niche market,
and strong competition could lead to weaker bargaining power and
pronounced pricing pressure.  The nature of the group's product
offering is of relatively limited technological content, leading
to lower barriers to market entry than what we see for some other
rated peers in the capital goods industry," S&P said.

"However, we believe that these factors are partly mitigated by
the group's high end-market and customer diversity.  The high
proportion of recurring replacement sales and the fairly high
share of revenues derived from stable end markets, such as food,
provide some stability, in our opinion.  We also view positively
AI Alabama's good relationships with customers as a result of its
direct-selling strategy and international manufacturing and
distribution footprint.  The group has some exposure to raw
material prices, which could impact its year-on-year
profitability.  However, we understand the group has historically
been able to pass these costs on to its customers," S&P added.

"We view AI Alabama's financial risk profile as "highly
leveraged."  Major constraints are the group's aggressive
financial policy, owing to its private equity ownership and its
highly leveraged capital structure.  The group's financial risks
are partly mitigated by the low capital intensity of the business
with replacement capital expenditures (capex) estimated at only
about 2% of sales, and well-managed working capital.  In our
base-case operating forecast, therefore, we assume that the group
will generate positive free operating cash flow (FOCF) in 2016,
despite its high cash-paying interest burden," S&P noted.

The stable outlook is based on S&P's anticipation that AI Alabama
will be able to reach adjusted margins (EBITDA) of about 13.5% in
2015 and 14.0% in 2016, with minimal positive free cash flow
generation.  In S&P's view, rating-commensurate credit measures
include funds from operations (FFO) cash interest coverage above
2x.

S&P could consider revising our financial policy assessment
upward to "financial sponsor-5" ("FS-5") from "financial sponsor-
6" ("FS-6") only if S&P projects that AI Alabama's Standard &
Poor's-adjusted debt to EBITDA will improve to less than 5x on a
sustained basis.  This could lead to a positive rating action.
However, S&P thinks this is highly unlikely in the short term.

Rating pressure could arise in the case of weaker-than-expected
market conditions and a deterioration of AI Alabama's operating
results, leading to liquidity shortfalls and covenant headroom of
less than 15%.  A downgrade could also result from the group's
inability to maintain its FFO coverage ratio above 2x or if FOCF
turned significantly negative.



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R O M A N I A
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SNTGN TRANSGAZ: S&P Raises CCR to 'BB+', Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Romanian gas transmission and transit system
operator S.N.T.G.N. Transgaz S.A. Medias to 'BB+' from 'BB'.  The
outlook is stable.

"The upgrade reflects our view that the regulatory conditions for
regulated gas transmission activities in Romania have improved.
This has led us to revise upward our assessment of the company's
business risk profile to "fair" from "weak," as our criteria
defines these terms.  Over the past years, the regulator has
introduced changes to the regulatory framework that we consider
credit supportive.  This includes increasing the share of
capacity reservation tariffs to 50% as of August 2014, which
reduces revenue volatility.  Additional changes include the
recognition of unrealized revenues in the previous regulatory
period, allowing for efficiency gains to be obtained for five
years and providing higher remuneration for new investments.  Our
assessment is further based on our view that the regulatory
framework's predictability and visibility have improved," S&P
said.

"Our assessment of Transgaz' business risk profile as "fair"
incorporates our "moderately high" assessment of country risk,
which reflects that Transgaz operates solely in Romania, and our
"very low" industry risk assessment for regulated utilities.  Our
business risk profile assessment also reflects our view of the
company's "fair" competitive position, which is based on its role
as the national gas transmission operator in Romania where it
operates as a natural monopoly.  We assess the regulatory
advantage as "adequate" in light of recent credit-supportive
adjustments and improved predictability and visibility.  However,
regulatory reset risk, the lack of track records during
investment-heavy periods, and some uncertainty of the
compensation scheme for new expansion investments remain.
Furthermore, we incorporate into our business risk assessment
Transgaz' midstream activities, which consist of take-or-pay
transit contracts for transition natural gas going to Bulgaria
from Ukraine.  These contracts are highly profitable, but will
run out over the short to medium term," S&P noted.

"Our assessment of Transgaz' financial risk profile as
"intermediate" reflects its low leverage historically, with a
Standard & Poor's-adjusted debt-to-EBITDA ratio hovering at about
0.1x, and broadly positive cash flow generation after capital
expenditures (capex) and dividends.  In our base case, Transgaz
will, starting in the second half of 2015, increase its
investment levels substantially over the medium to long term and
maintain a dividend payout ratio of 50% of net income.  We
believe the company will be able to maintain credit metrics
commensurate with our "intermediate" financial risk category at
least over the next two to three years.  In particular, we
consider adjusted funds from operations (FFO)-to-debt ratio above
30% as commensurate with the current rating and in line with our
"intermediate" financial risk category," S&P added.

S&P considers Transgaz to be a government-related entity (GRE)
under S&P's criteria.  In accordance with S&P's methodology for
rating GREs, its rating on Transgaz incorporates S&P's assessment
of a "moderately high" likelihood that Romania would provide
timely and sufficient extraordinary support to Transgaz in the
event of financial distress.  This is based on S&P's view of
Transgaz':

   -- "Important" role for Romania's energy sector, due to the
      company's legal and natural monopoly position, and its
      operation of all strategically important gas transmission
      assets in the country.  "Strong link" with the government,
      which S&P sees as unchanged despite the Romanian
      government's sale of an additional 15% stake 2013.  The
      government currently retains a 58.5% stake in the company,
      and S&P understands the government will maintain control
      over Transgaz.

The stable outlook reflects S&P's assumption that Transgaz will
be able to achieve solid operating and financial results over the
next three years.  It also factors in S&P's expectation that the
regulatory framework will remain predictable, with sufficient
visibility, and that Transgaz will remain shielded from negative
political intervention linked to changes in the national
macroeconomic or fiscal environment.  For the current rating
level, S&P expects that Transgaz will achieve FFO to debt ratios
above 30%.

S&P could take a negative rating action if Transgaz' financial
and operating performance materially deviated from S&P's base
case, for example, due to higher dividend payouts, higher-than-
anticipated investments, or weaker and more volatile cash flow
generation.  A weakening of Transgaz' business risk profile,
resulting from a weaker regulatory framework assessment, for
instance, or a lack of full recovery of costs for new expansion
investments could also lead S&P to revise upwards its guideline
for the rating and consequently trigger a negative rating action.

S&P could raise the rating if it revised up its assessment of
Transgaz' financial risk profile to "modest," all else being
equal.  Such a development could result from a reduced investment
program and consequent lower-than-expected indebtedness for
Transgaz.  An improvement in Transgaz' business risk profile, for
example, resulting from a stronger regulatory advantage
assessment, could also trigger a positive rating action.

An upgrade of Romania by two notches would trigger an upgrade of
Transgaz, provided S&P's assessment of Transgaz' stand-alone
credit profile and the likelihood of government support remained
unchanged.



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


RUSSIAN BANKS: Moody's Assigns CR Assessments to 5 Institutions
---------------------------------------------------------------
Moody's Investors Service, on June 23, 2015, assigned
Counterparty Risk Assessments (CR Assessments) to five Russian
banks and their two subsidiaries, in line with its new bank
rating methodology.

At the same time, Moody's has affirmed all ratings of four
Russian banks and withdrawn the outlooks on subordinated
instrument for its own business reasons.

RATINGS RATIONALE

AFFIRMATION OF RATINGS

Sberbank

Moody's affirmation of Sberbank's long and short-term deposit,
debt, and subordinated debt ratings reflects the affirmation of
its ba2 BCA, which is one of the highest among its Russian peers,
and which is supported by the bank's dominant market position
that gives the bank strong pricing power and a competitive edge
over domestic peers, in the context of a very challenging
operating environment in the country.

The asset quality trends have worsened notably with the non-
performing loans ratio at 5.99% as at end-2014 compared to 4.7%
end-2013 (calclucated as per Moody's standard approach).
Sberbank's total capital adequacy ratio has declined recently to
12% as at end-2014 but remains comparable to similarly rated
peers.  In general, Moody's notes that the bank's historically
strong earnings-generating capacity and internal capital creation
rate support its standalone credit profile.  In addition,
Sberbank's funding position remains robust with limited
refinancing risk in 2015.

The bank's long-term senior unsecured debt and deposit ratings
benefit from Moody's assessment of very high probability of
government support in case of need from the Russian government
(Ba1 Negative) due to Sberbank's high systemic importance,
leading to one notch uplift for its senior unsecured debt and
local currency deposit ratings.

BANK VTB, JSC

Moody's affirmation of VTB's long and short-term deposit, debt,
and subordinated debt ratings reflects the affirmation of b1 BCA.
The bank's BCA is constrained by the challenges facing the bank
due to the very volatile operating environment, stressed
profitability and asset quality.  At the same time Moody's notes
that the funding received by the Central Bank of Russia (CBR) is
an important factor stabilizing its funding position and the bank
has limited external refinancing needs in 2015.

In addition, the affirmation of the ratings takes into account
that the bank has been the beneficiary of various government
support programs since 2014 and currently is in the process of
finalizing an injection of preferred shares in the amount of
RUB307 billion, which will stabilize its capitalization despite
the expectation of a loss-making year in 2015.

VTB's long-term senior unsecured debt and deposit ratings benefit
from a very high probability of government support in case of
need from the Russian government leading to a three notch uplift
for its senior unsecured debt and local currency deposit ratings.

Russian Agricultural Bank

Moody's affirmation of Russian Agricultural Bank's long and
short-term deposit, senior debt and subordinated debt ratings
reflects the affirmation of the bank's b3 BCA.  The BCA is
constrained by the bank's weak financial fundamentals, namely
asset quality, capital adequacy and profitability.  At year-end
2014, Russian Agricultural Bank's problem loans (defined by
Moody's as loans overdue by more than 90 days and loans in the
watch list category) stood at 24% of total gross loans and were
only 37% covered by loan loss reserves.  Russian Agricultural
Bank's Basel II Tier 1 and total capital adequacy ratios,
reported at 9.9% and 13.0%, respectively, as of 1 January 2015,
would more than halve if the bank were to immediately raise its
problem loan coverage ratio to the sector average.

As a government policy vehicle for lending to agricultural
sector, the bank does not target profit maximization and is
unable to replenish its capital from internal profits generation.
To compensate the bank for the cost of pursuing this strategy,
the government regularly injects additional capital.  As part of
the government's recapitalization program targeting large banks,
Russian Agricultural Bank is expected to receive a Tier 1 capital
injection of RUB68.8 billion this year.

Russian Agricultural Bank is dependent on market funding, which
Moody's views as a risk in the current environment.  As of year-
end 2014, customer funding accounted for just 44% of the bank's
total liabilities, whereas the aggregate share of wholesale
market borrowings stood at 49% of the total as of the same
reporting date.

Russian Agricultural Bank's long-term senior unsecured debt and
deposit ratings benefit from a very high probability of
government support in case of need from the Russian government,
leading to a four notch uplift for its senior unsecured debt and
deposit ratings.

Alfa Bank

Moody's affirmation of Alfa-Bank's long and short-term deposit,
debt, and subordinated debt ratings reflects the affirmation of
ba3 BCA.  The affirmation is taking into account the bank's
strong commercial franchise in Russia and business
diversification, its strong capitalization and manageable,
although deteriorating, level of non-performing assets.

Alfa is Russia's largest privately owned banking group, with one
of the largest branch networks in the country.  The bank's
capital position remains robust at 17.7% as at end-2014 (as
calculated by the bank) and one of the highest compared with its
Russian peers. Although the bank's loan-to-deposit ratio remains
high at 125% as at end-2014 Alfa's liquidity buffer is adequate
in the context of its customer-driven deposit funding base.

Alfa-Bank's long-term senior unsecured debt and deposit ratings
benefit from a moderate probability of government support in case
of need from the Russian government leading to a one notch uplift
for its senior unsecured debt and deposit ratings.

   --- ASSIGNMENT OF CR ASSESSMENTS

Moody's has also assigned CR Assessments to five Russian banks
and their two subsidiaries.  CR Assessments are opinions of how
counterparty obligations are likely to be treated if a bank
fails, and are distinct from debt and deposit ratings in that
they (1) consider only the risk of default rather than expected
loss and (2) apply to counterparty obligations and contractual
commitments rather than debt or deposit instruments.  The CR
Assessment is an opinion of the counterparty risk related to a
bank's covered bonds, contractual performance obligations
(servicing), derivatives (e.g., swaps), letters of credit,
guarantees and liquidity facilities.

In assigning the CR Assessment, Moody's evaluates the issuer's
standalone strength and the likelihood, should the need arise, of
affiliate and government support, as well as the anticipated
seniority of counterparty obligations under Moody's Loss Given
Failure framework.  The CR Assessment also assumes that
authorities will likely take steps to preserve the continuity of
a bank's key operations, maintain payment flows, and avoid
contagion should the bank enter a resolution.

In most cases, the starting point for the CR Assessment is one
notch above the bank's Adjusted Baseline Credit Assessment (BCA),
to which Moody's then typically adds the same notches of
government support uplift as applied to deposit and senior
unsecured debt ratings.  As a result, the CR Assessment for most
Russian banks is at the same level or one notch above the
supported senior debt and deposit ratings, reflecting Moody's
view that authorities are likely to honor the operating
obligations the CR Assessment refers to in order to preserve a
bank's critical functions and reduce potential for contagion.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the negative outlooks on the ratings of these entities an
upward pressure is unlikely to emerge in the near term.  A
further unexpected severe deterioration in the operating
environment and/or the solvency and liquidity positions of these
banks would lead to a downward adjustment on these ratings.

LIST OF AFFECTED RATINGS

Issuer: Alfa-Bank

   -- Adjusted Baseline Credit Assessment, Affirmed ba3;
   -- Baseline Credit Assessment, Affirmed ba3;
   -- Long-Term Deposit Ratings, Affirmed Ba2 Negative;
   -- Short-Term Deposit Rating, Affirmed NP;
   -- Senior Unsecured Regular Bond/Debenture, Affirmed Ba2
       Negative;
   -- Subordinate Regular Bond/Debenture, Affirmed B1;
   -- Subordinate Regular Bond/Debenture, Affirmed B2 (hyb);
   -- Backed Senior Unsecured Regular Bond/Debenture, Affirmed
      Ba2 Negative;
   -- Counterparty Risk Assessment, Assigned Ba1(cr);
   -- Counterparty Risk Assessment, Assigned NP(cr); Outlook,
      Negative

Issuer: Bank VTB, JSC

   -- Adjusted Baseline Credit Assessment , Affirmed b1
   -- Baseline Credit Assessment , Affirmed b1
   -- Long-Term Deposit Rating (Foreign Currency), Affirmed Ba2
       Negative;
   -- Long-Term Deposit Rating (Local Currency), Affirmed Ba1
       Negative;
   -- Short-Term Deposit Ratings, Affirmed NP;
   -- Senior Unsecured Regular Bond/Debenture, Affirmed Ba1
       Negative;
   -- Senior Unsecured Bank Credir Facility, Affirmed Ba1
       Negative;
   -- Subordinate Regular Bond/Debenture, Affirmed Ba3;
   -- Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1;
   -- Subordinate Medium-Term Note Program, Affirmed (P)Ba3;
   -- Short-Term MTN Program, Affirmed (P)NP;
   -- Counterparty Risk Assessment, Assigned NP(cr);
   -- Counterparty Risk Assessment, Assigned Ba1(cr) Outlook,
        Negative

Issuer: Sberbank

   -- Adjusted Baseline Credit Assessment, Affirmed ba2
   -- Baseline Credit Assessment, Affirmed ba2
   -- Long-Term Deposit Rating (Foreign Currency), Affirmed Ba2
       Negative;
   -- Long-Term Deposit Rating (Local Currency), Affirmed Ba1
       Negative;
   -- Short-Term Deposit Ratings, Affirmed NP;
   -- Senior Unsecured Regular Bond/Debenture, Affirmed Ba1
       Negative;
   -- Subordinate Regular Bond/Debenture, Affirmed Ba2;
   -- Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1
   -- Subordinate Medium-Term Note Program, Affirmed (P)Ba2
   -- Short-Term MTN Program, Affirmed (P)NP
   -- Counterparty Risk Assessment , Assigned NP(cr)
   -- Counterparty Risk Assessment , Assigned Ba1(cr)
       Outlook, Negative

Issuer: Russian Agricultural Bank

   -- Adjusted Baseline Credit Assessment, Affirmed b3;
   -- Baseline Credit Assessment, Affirmed b3;
   -- Long-Term Deposit Ratings, Affirmed Ba2 Negative;
   -- Short-Term Deposit Rating, Affirmed NP;
   -- Senior Unsecured Regular Bond/Debenture, Affirmed Ba2
       Negative;
   -- Subordinate Regular Bond/Debenture, Affirmed B2;
   -- Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba2;
   -- Subordinate Seniority Medium-Term Note Program, Affirmed
      (P)B2
   -- Counterparty Risk Assessment, Assigned Ba1(cr);
   -- Counterparty Risk Assessment, Assigned NP(cr); Outlook,
       Negative

Issuer: SME Bank

   -- Counterparty Risk Assessment , Assigned NP(cr)
   -- Counterparty Risk Assessment , Assigned Ba1(cr)

Issuer: VTB Bank (Deutschland) AG

   -- Counterparty Risk Assessment , Assigned NP(cr)
   -- Counterparty Risk Assessment , Assigned Ba1(cr)

Issuer: VTB24

   -- Counterparty Risk Assessment , Assigned NP(cr)
   -- Counterparty Risk Assessment , Assigned Ba1(cr)



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


FTPYME BANCAJA 6: Fitch Raises Rating on Class B Notes to 'Bsf'
---------------------------------------------------------------
Fitch Rating has upgraded FTPYME Bancaja 6 FTA's class B notes
and affirmed the others, as:

Class A3 notes (ES0339735021): affirmed at 'Asf', Outlook Stable

Class B notes (ES0339735039): upgraded to 'Bsf', Outlook Stable

Class C notes (ES0339735047): affirmed at 'CCsf', Recovery
Estimate revised to 40% from 0%

Class D notes (ES0339735054): affirmed at 'Csf', Recovery
Estimate 0%

FTPYME Bancaja 6 is a cash flow securitization of loans to small-
and medium-sized Spanish enterprises (SMEs) granted by former
Caja de Ahorros de Valencia, Castellon y Alicante, now Bankia
S.A.

KEY RATING DRIVERS

The upgrade of the class B notes reflects the improvement in the
transaction's performance.  The weighted average recovery rate
has improved by 7%, current defaults are falling on a notional
basis and credit enhancement has improved by 8.4% due to
amortization and repayment of the principal deficiency ledger.
Sensitivity analysis shows that the class B notes are now less
affected by deterioration of the portfolio.  However, the rating
also takes into account that the note is deferring interest due
to the cumulative default trigger of 5.75% being breached.

The class A3 notes' rating is capped at 'Asf' due to payment
interruption risk.  The reserve fund is depleted.  While the
servicer is currently posting collateral to mitigate commingling
risk, the amount can be volatile and may not be sufficient to
ensure timely payment of senior notes and transaction senior fees
in a stress scenario should Bankia default.

The class C notes have been affirmed at 'CCsf' as the reserve
fund is fully depleted and so the notes are first to absorb
further losses.  However, credit enhancement has increased due to
an improvement in recoveries.  Consequently, Fitch has increased
the Recovery Estimate to 40% from 0%.  Fitch assigns Recovery
Estimates to all notes rated 'CCCsf' or below.  Recovery
Estimates are forward-looking, taking into account Fitch's
expectations for principal repayments on a distressed structured
finance security.

The class D notes have been affirmed at 'C' as a depleted reserve
fund makes default inevitable.

Since the last review, delinquencies over 90 days have stabilized
and represent 6% of the portfolio.  The portfolio is relatively
concentrated with the top 10 obligors representing 16.5% of the
portfolio.  Based on Fitch's industry classification, the real
estate and building and material sectors represent 34% of the
portfolio.

RATING SENSITIVITIES

The analysis incorporated two stress tests in order to test the
ratings' sensitivity to a potential change of underlying
assumptions.  The first test addressed a reduction of the
recovery rates by 25%, whereas the second analysed the rating
impact of an increase in default rates by the same amount.  Both
tests indicated that no rating action would be triggered.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

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

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

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



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


NOBINA AB: S&P Raises CCR to 'BB-' Following IPO, Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Swedish bus operator Nobina
AB to 'BB-' from 'B'.  The outlook is stable.

The upgrade follows the IPO on June 18, 2015, whereby Nobina
raised Swedish krona (SEK) 850 million (EUR92 million) and
floated its shares on the Stockholm Stock Exchange.  S&P views
the IPO as credit positive for two reasons.  First, Nobina will
use part of the funds raised to repay its outstanding SEK550
million bond, reducing reported debt to about SEK3.7 billion
following the IPO, from about SEK4.3 billion as of May 31, 2015.
Second, S&P views the new shareholder base as positive, as it
primarily consists of long-only equity funds, which S&P views as
neutral for Nobina's financial policy.  The previous shareholder
base, consisting of hedge funds, was negative for the rating
because S&P viewed the shareholders as financially aggressive and
unpredictable as concerns Nobina's financial policy.  Although
S&P understands that several hedge funds combined still hold a
minority of the shares outstanding, S&P understands that they
hold less than 50% in aggregate and S&P thinks it likely that
they will gradually sell off their positions over the coming
year.

After the IPO, S&P views Nobina's financial risk profile as
"significant," compared with "highly leveraged" previously.  As a
result of increased transparency and the neutral shareholder
base, S&P has changed its analytical adjustment approach on
Nobina and now consider all nonrestricted cash holdings as
surplus cash and wededuct this sum from debt.

S&P assess Nobina's business risk profile as "fair," based on the
company's track record of stable profitability over the past few
years, with rolling 12-month Standard & Poor's-adjusted EBITDA
margins of about 13%.

S&P applies a one-notch negative adjustment to the 'bb' anchor,
which is S&P's starting point in assigning a corporate credit
rating, as Nobina's credit metrics are at the lower end of what
S&P views as commensurate for the "significant" financial risk
profile.  In addition, while the company has improved its
operations and contract bidding in recent years, S&P sees some
uncertainties with the large contract migrations in the current
and coming years and how these could impact profitability.

The stable outlook takes into account a gradual increase in sales
at Nobina in the coming years as new contracts ramp up.  It
further takes into account that Nobina will adhere to its newly
stated financial policy and that shareholder remunerations will
not be excessive.  For the current rating, S&P expects that
Nobina will maintain funds from operations (FFO) to debt at about
20%.

S&P could raise the rating to 'BB' if Nobina continues to improve
its operational performance through selective contract bidding,
efficiency improvements, and continued fleet optimization.
Although S&P recognizes that Nobina's heavy investments in new
buses will limit any large improvement in credit metrics, for an
upgrade to materialize S&P would expect FFO to debt of above 25%
and debt to EBITDA of below 3.5x on a sustainable basis, with
maintenance of at least "adequate" liquidity at all times.

S&P could lower the rating if Nobina were to adopt a more
shareholder friendly position than S&P currently anticipates,
resulting in increased leverage and weakening credit metrics.
S&P would, for example, consider a ratio of FFO to debt of below
16% to be inconsistent with the current rating.  In addition, S&P
could lower the rating if Nobina's liquidity position were to
weaken, which could be the result of lower cash balances in the
absence of any long-term committed bank credit lines.



===========
T U R K E Y
===========


BURGAN BANK: Moody's Cuts Long-Term Deposit Ratings to Ba3
----------------------------------------------------------
Moody's Investors Service downgraded the long-term deposit
ratings of Burgan Bank A.S. to Ba3 from Ba2, with a stable
outlook.

Burgan Bank's b2 standalone baseline credit assessment (BCA) was
not affected by this rating action.

The downgrade of the rating results from the downgrade to ba2
from ba1 of the BCA of Burgan's Kuwait based parent, Burgan Bank
S.A.K.P (deposits A3 STA/P-2; /BCA ba2). For further details on
the rating actions on the parent bank, please refer to Moody's
press release: https://www.moodys.com/research/--PR_327465

At the same time, the bank's Counterparty Risk Assessment was
lowered to Ba2(cr) from Ba1(cr) and the Adjusted BCA was
downgraded to ba3 from ba2.

This rating action concludes the review for downgrade placed on
this rating in March 2015.

RATINGS RATIONALE

The downgrade of the Kuwaiti parent's BCA to ba2 from ba1 has
prompted a similar downgrade of the subsidiary's supported
rating, driven by the parent's reduced capacity to provide
support. At the same time, the rating agency notes the
demonstrated willingness of the parent bank to maintain and
provide ongoing assistance to its Turkey-based given its growing
importance for the group.

Moody's continues to incorporate a very high probability of
support from the parent in Burgan Bank's long-term deposit
rating, leading to a two notch of uplift on the bank's standalone
BCA.

WHAT COULD MOVE THE RATINGS UP/DOWN

A downward or upward rating action of Burgan Bank's supported
ratings could be triggered by a similar rating action on Burgan
S.A.K.P, although given the stable outlook, this is unlikely in
the near future.

The standalone BCA of Burgan Bank A.S. has not been affected and
any upward future pressure will be driven by material evidence of
the bank managing to consolidate its franchise, achieve
sustainable improvement in core profitability and self-
sufficiency in funding and capital generation.

Conversely, negative pressure could develop on the BCA in case of
further deterioration in profitability or asset quality, leading
to further losses and diminished capitalization of the bank.


HSBC BANK: Moody's Cuts Long-Term Currency Deposit Ratings to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term local and
foreign currency deposit ratings of HSBC Bank A.S. (Turkey) (HSBC
Turkey) to Ba1 from Baa2 and Baa3 respectively, with a negative
outlook.

The short-term local and foreign currency deposit ratings were
downgraded to Not Prime from Prime-2 and Prime-3 respectively.

At the same time the banks Counterparty Risk Assessment was
lowered to Baa3(cr)/Prime-3(cr) from Baa1(cr)/Prime-2(cr).

HSBC Bank's standalone baseline credit assessment (BCA) at ba3
was not affected by this rating action, and the adjusted BCA was
downgraded to ba1 from baa2.

RATINGS RATIONALE

The downgrade of the HSBC Turkey's long-term deposit ratings is
due to the reduction in the probability of affiliate support
which Moody's incorporates into the bank's rating, following the
announcement by HSBC, as part of its group investor presentation
in June 2015, that it plans to divest its Turkish operations.

At the same time Moody's expects the group to maintain its
backing for the subsidiary until any divestiture and continues to
incorporate 2 notches of uplift in the deposit rating of HSBC
Turkey from its BCA of ba3.

The negative outlook in the rating is due to the pressure on the
standalone BCA of HSBC Turkey as well as the uncertainty
regarding the bank's future ownership.

WHAT COULD MOVE THE RATINGS UP/DOWN

Currently, there is no upward pressure on the standalone and the
long-term deposit ratings, as reflected by the negative outlook.

In case of further evidence of weakening in parental support the
deposit rating is likely to be adjusted downwards.

In addition, downward pressure on the standalone BCA could
develop as a result of (1) continued weak profitability and
earnings quality; (2) weakening of asset quality; (3) a material
reduction in the bank's capitalization; and/or (4) increased
reliance on intergroup funding elevating parental dependence.

NSR downgraded to A2.tr/TR-2 from Aa3.tr/TR-1

The bank's NSR reflect its creditworthiness within the Turkish
credit environment and is derived from the mapping of the bank's
global long-term deposit ratings, with the direction uncertain.
Therefore, the direction of the change in the long-term ratings
will influence the future adjustment in these ratings.


YASAR HOLDING: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed Turkish food group Yasar Holding
A.S.'s Long-term foreign and local currency Issuer Default
Ratings at 'B' and affirmed its National Long-term rating at
'BBB(tur)'.  The Outlooks on the IDRs and National Long-term
rating are Stable.

Fitch has also affirmed the USD250m senior unsecured notes due
2020 at 'B' with Recovery Rating 'RR4'.

The rating affirmation incorporates our expectations that 2015
will be a difficult year following adverse effects on pricing
power, costs and foreign currency-denominated debt from the
depreciation of the Turkish lira and a potentially weakening
consumer and business environment.  However, Fitch also expects
that Yasar will continue to cope effectively with Turkey's
volatile economy, drawing on its strength as an established
player in a growing Turkish food and beverages and coatings
markets.  Fitch also expects Yasar's profitability to continue to
benefit from a fragmented retail industry and manageable
competition characterizing the Turkish food processing industry.

KEY RATING DRIVERS

High Foreign Currency Risk

Fitch calculates that a further 10% depreciation of the Turkish
lira, without other cash or profit preservations measures, would
cause funds from operations (FFO) leverage to increase by at
least 0.5x.  Fitch estimates that over 65% of Yasar's debt at
end-December 2014 was foreign currency-denominated, while most of
its revenue is generated in Turkish lira.

Fitch acknowledges that the interest portion of Yasar's foreign
currency exposure is largely hedged by swap contracts.  Certain
operating costs, especially in coatings, are foreign currency-
denominated.  Food exports provide some relief in terms of
foreign currency generation, but remain limited, at under 10% of
group sales.

Leverage Could Rise

Fitch expects the strong 2014 performance to continue, enabling
further de-leveraging with FFO adjusted leverage likely to
decrease to around 5.2x in 2015 (2014: 5.5x).  However, if the
depreciation of the Turkish lira since the beginning of 2014 does
not reverse, a combination of higher debt in Turkish lira and
potentially weakening free cash flow (FCF) could push Yasar's FFO
adjusted leverage well above 5.0x, which is the upper limit for
the current 'B' rating.

Healthy F&B Prospects

Yasar's leading market position in several food categories in a
fragmented and stable market continues to underpin its ratings.
Fitch expects the company to extend its strong 2014 performance
in 2015 and that revenue, profit and profit margin should
continue to grow, albeit a slower pace than in 2014.

Its food and beverage division saw 2014 revenue grow by 17% and
EBITDA by 20% despite the Turkish lira depreciation and difficult
consumer environment.  Although input costs such as raw milk and
meat prices have continued to increase, Yasar has managed to pass
on these prices and maintained margins in 2014.  Fitch expects
sales volumes to rise in 2015 despite continued price increases
although growth may be limited in the long-term.  Fitch believes
that Yasar has the capacity to innovate and switch to higher-
margin products and adapt to the challenging consumer landscape
in Turkey.

Significant Improvement in Coatings

Revenue in the coatings business continued to grow (up by 20%) in
2014, driven by pent-up demand in the sector, while EBITDA
margins were resilient in the low- to mid-teens.  Fitch expects
EBITDA margins in 2015 to normalize at around 11%-12% as the
market stabilizes in line with general economic activity.
Coatings contributed nearly 34% of group EBITDA in 2014 compared
with just 11% in 2011.  The significant improvement is due to
cost rationalizations in 2009, the introduction of a stricter
foreign exchange hedging policy and other efficiency programs.

Limited FCF

FCF remained negative at TRY33.5 mil. in 2014 (2013: negative
TRY64.8 mil.) and Fitch projects this to continue over 2015-17
due to high capex.  Dividend leakage to minorities in the listed
subsidiaries further depresses cash flow by TRY35 million-TRY48
million a year. However, Fitch believes Yasar retains the
flexibility to postpone some of its capex, if need be, for
example, in the event of a large unforeseen depreciation of the
Turkish lira.

KEY ASSUMPTIONS

   -- Revenue growth remaining in high single digits over 2015-
      2018;

   -- Group EBITDA margin between 10.1% and 10.4% for 2015-2018;

   -- Capex between 2.5% and 4% of sales for 2015-2018;

   -- FCF to remain negative for 2015-17 before turning positive
      in 2018;

   -- TRY/USD exchange rate at 2.7 for 2015 in line with the
      average for the past three months

   -- Liquidity to remain adequate.

RATING SENSITIVITIES

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

   -- Operating shortfall, such as contracting revenue, further
      constraining cash flow and/or liquidity

   -- Adjusted gross debt/EBITDAR above 4.5x (2014: 4x) or FFO
      adjusted gross leverage above 5.0x on a sustained basis.

   -- FFO fixed charge coverage below 2.0x (2014: 2.0x) on a
      sustained basis.

   -- EBITDA margin falling below 8% (2014: 10%) for more than
      two financial years due to inability to pass on higher
      costs or due to increased competition.

   -- Sharp currency depreciation or economic downturn in Turkey
      affecting Yasar's operations.

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

   -- Adjusted gross debt/EBITDAR consistently below 3.5x or FFO
      adjusted gross leverage consistently below 4.0x.

   -- FFO fixed charge above 2.5x.

   -- EBITDA margin remaining at or above 10% with improved
      pricing power.

   -- Negative FCF at no more than 1% of sales and maintenance of
      longer-dated debt profile mitigating refinancing risks.

LIQUIDITY

Liquidity was supported by unrestricted cash (as defined by
Fitch) of TRY37 mil. at end-2014, approximately USD280 mil. in
undrawn uncommitted (as typical in Turkey) bank lines, as well as
strong relationships with both local and international banks.
This is sufficient to cover Yasar's near term debt maturities of
TRY305.3 million in 2015.



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


FIRST UKRAINIAN: Moody's Withdraws 'Caa3/Ca' Deposit Ratings
------------------------------------------------------------
Moody's Investors Service has withdrawn First Ukrainian
International Bank, PJSC's ratings:

   -- Long-term local-currency deposit rating of Caa3
   -- Long-term foreign-currency deposit rating of Ca
   -- Short-term deposit ratings of Not-Prime
   -- Long-term Counterparty Risk Assessment of Caa3(cr)
   -- Short-term Counterparty Risk Assessment of Not-Prime(cr)
   -- National Scale Rating of Caa3.ua
   -- Baseline credit assessment (BCA) of ca.
   -- Adjusted Baseline Credit Assessment of ca.

At the time of the withdrawal, all the bank's long-term ratings
carried a negative outlook.

RATINGS RATIONALE

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

Domiciled in Ukraine, First Ukrainian International Bank, PJSC
reported total assets of US$2.37 billion and shareholders' equity
of $351 million as at year-end 2014 under audited IFRS.


UKRAINE: Writedown on Bondholders May Hit IMF Restructuring Goals
-----------------------------------------------------------------
Marton Eder at Bloomberg News reports that a Franklin Templeton-
led creditor committee said Ukraine may not be able to achieve
the International Monetary Fund debt-restructuring goals if it
imposes a writedown on bondholders.

The four-member group in an open letter to IMF Managing Director
Christine Lagarde, received by e-mail on June 24, said forcing a
principal reduction on bondholders would "delay Ukraine's
eventual return to the global capital markets, raise the cost of
capital-markets funding if and when it does return, and increase
the country's medium-term dependence on official financing",
Bloomberg relates.  It said IMF assumptions of a return to
Eurobond markets by 2017 is not possible in that scenario,
Bloomberg notes.

The creditors, who together own about US$9 billion of Ukraine's
foreign-currency debt, sent a proposal to the Finance Ministry
last month that, they say, meets the IMF's three targets through
maturity extensions and coupon reductions alone, Bloomberg
relays.  Negotiations have been deadlocked since Ukraine rejected
the plan, returning with a counter-proposal on June 19, Bloomberg
recounts.

The committee, as cited by Bloomberg, said private creditors
wouldn't receive any principal payments until 2019 under its
plan, while the IMF would receive US$4.4 billion between 2015 and
2018, and US$8.1 billion by 2020.

According to Bloomberg, a person familiar with the government's
position said on June 19 the eastern European country's counter
proposal includes a so-called haircut of 40% to face value and
the government will impose a moratorium on debt payments if
creditors don't agree within a few weeks.



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


ARNOLD WORKING MEN: Club Goes Into Liquidation
----------------------------------------------
Nottingham Post reports that members of Arnold Working Men's Club
are waving goodbye to the venue that has been a fixture of the
town for 129 years.

The Front Street club, which used to have 1,200 members and was
the oldest venue in the town, is in liquidation, according to
Nottingham Post.

The report notes that Arnold Working Men's Club was first opened
by two farmers in 1874 as a place for them to meet, talk and play
games with their friends.  But it was not until two years later
that the venue was licensed and open to all, the report relates.

The report discloses that building owners Concept Properties
confirmed the club is in liquidation and have begun looking into
their options for the future of the site.

"It's early days at the moment," the report quoted an unnamed
spokesman as saying.  "It came as a surprise for us and we're
looking at the building, trying to work out which key opens which
door," the spokesman added.


EXPRO HOLDINGS: Moody's Cuts Corporate Family Rating to B3
----------------------------------------------------------
Moody's Investors Service downgraded Expro Holdings UK 3
Limited's (Expro or the company) corporate family rating (CFR) to
B3 from B2 and its probability of default rating (PDR) to B3-PD
from B2-PD. Concurrently, Moody's has downgraded to B1 from Ba3
the rating on Expro FinServices S.a r.l.'s guaranteed senior
secured bank credit facilities consisting of approximately USD1.3
billion term loan and USD250 million revolving credit facility
(RCF). The outlook on all ratings is negative.

RATINGS RATIONALE

The rating action reflects Moody's expectation that Expo's credit
metrics will no longer remain commensurate with a B2 CFR for an
extended period of time. The company's operating performance
started to soften during the second quarter of the financial year
2014/15 as the lower crude oil prices started to impact
exploration and appraisal activity. For the year-to-date ending
December 2014, EBITDA as reported by the company was down 9%
year-on-year at USD244 million whilst the Moody's adjusted
leverage for the last twelve month ending December 2014 was
approximately 6.3x.

As more projects are being postponed and some others risk to be
cancelled, Moody's anticipates further deterioration in operating
performance resulting in leverage rising to above 7.5x for at
least the financial year 2015/16 due to the company's exposure to
the exploration & appraisal and development & completion segments
of the oilfield lifecycle, which altogether accounted for
approximately two-third of the company's revenue in the financial
year 2013/14. Furthermore, similarly to other companies in the
oilfield services industry, pricing pressures will arise as oil
companies try to reduce their cost base and competition heightens
since new tenders become scarce. Moody's notes that the company's
main competitors are large diversified oilfield services
companies with stronger financial profile such as Schlumberger
Ltd (rated Aa3 stable) and Halliburton Company (A2 stable) and
hence, have generally a superior ability to withstand pricing
pressures and persistently weak market conditions.

Offsetting the above, Moody's also notes that 76% of the
company's revenue in the financial year 2013/14 was derived from
long-term contracts, of which 44% was based on fixed rental rates
(e.g. landing strings) and 32% on call-out rates. Additionally,
although contract terms including length vary according to the
type of activity, an incumbent service provider may be retained
for up to the life of the oil field for the more complex and
value-added services.

The ratings also incorporate the company's market leading
positions and its reputation for innovation, reliability and
customer service as well as its diversified geographic and
customer profile

Given the expected increase in leverage, Moody's cautions that
the company may breach its financial maintenance covenants under
its mezzanine facility (not rated). That being said, Moody's
assumes that the company will be able to obtain a waiver of any
breach and/or reset covenants if necessary. On this basis,
Moody's continues to view the company's liquidity profile as
adequate, underpinned by unrestricted cash balance of USD62
million and USD172 million available under its committed
revolving credit facility due September 2019 as at December 2014.
Free cash flow generation is likely to remain negative, albeit
capex should decline due to the lower level of activity. There is
no material debt maturity over the next 24 months but there are
springing maturities on the senior secured term loan and RCF if
the maturity on the mezzanine facility due July 2018 is not
extended.

OUTLOOK

The negative outlook reflects the continued softening of market
conditions combined with the lack of visibility around an
eventual recovery.

WHAT COULD CHANGE THE RATING UP/DOWN

The outlook could be stabilized following visible improvement in
market conditions and operating performance resulting in leverage
falling to 6.5x.

A downgrade of the CFR could occur in the event of material
deterioration in the company's liquidity position in the coming
quarters or limited improvement in operating performance
resulting in Moody's expectation that leverage will remain
sustainably over 7.5x over the next 12 to 18 months.

Over time, the CFR could be upgraded if Expro manages to reduce
leverage towards 5.5x and improve its interest coverage with
solid liquidity including sufficient covenant headroom, free cash
flow generation and supportive underlying market trends.


GLOBO PLC: Moody's Assigns 'B2' Corporate Family Rating
-------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and B1-PD probability of default rating (PDR) to Globo plc
(Globo or the company). Concurrently, Moody's has assigned a
(P)B2 rating to the USD180 million Senior Secured Notes due 2020
(EUR163.7 million equivalent) to be issued by Globo Mobile, Inc.,
a subsidiary of Globo. The outlook on all ratings is stable.

The proceeds from the notes issuance will be used to repay
EUR42.4 million of existing debt, to pay EUR6.7 million of
transaction fees, with the remaining EUR114.7 million mainly used
to fund future acquisitions.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the facilities. A definitive rating
may differ from a provisional rating.

RATINGS RATIONALE

"Globo's B2 CFR is weakly positioned in the rating category and
reflects (1) the relative recent entry of the company in the
enterprise mobility market, which has become management's point
of focus, (2) the relatively low technological barriers to entry
and switching costs for most of its products, (3) the high
reliance on resellers/vendors for the distribution of its
products due to the company's relatively low brand awareness, and
(4) the weak free cash flow generation projected over the rating
horizon", says Sebastien Cieniewski, Moody's lead analyst for
Globo. These weaknesses are, however, mitigated by (1) the
favourable market dynamics for Enterprise Mobility Management
(EMM) and Mobile Application Development Platform (MADP)
supporting double-digit revenue growth over the next three years,
(2) the company's niche positioning with a focus on small-and-
medium sized enterprises (SMEs) which has so far lacked focus
from larger players, (3) the company's good liquidity position
which provides headroom for bolt-on acquisitions, and (4) the
strong de-leveraging prospects over the next 2-3 years from a
relatively moderate level at the closing of the transaction.

Globo's rating is constrained by the company's small scale with
revenues of EUR106.4 million in 2014 concentrated around its
GO!Enterprise product suite, which includes EMM and MADP
solutions and consulting services accounting for a combined 55%
of group revenues. Moody's expects this proportion to increase
significantly over time as the company's consumer-oriented
solutions, which still accounted for a relatively large 36% of
2014 group revenues, experience weaker or negative growth
prospects compared to EMM and MADP.

Moody's considers that the market where Globo operates is highly
competitive. First, barriers to entry are relatively low as
demonstrated by the periodic entry of new local players. Second,
switching costs are low due to relatively limited integration of
EMM solutions with other business software, and the presence of
other products with similar functionalities that are easily
available. Players in the market are numerous ranging from larger
companies, including International Business Machines Corporation
(Aa3, stable) to smaller specialized companies, including Globo
and Good Technology. Moody's notes, however, that the high growth
of the overall market has so far alleviated some of the
competitive pressure.

Despite operating in a competitive market, Globo has shown strong
revenue growth over the last three years with sales growing at a
52% compound annual growth rate (CAGR) between 2012 and 2014.
Growth was driven by a high renewal rate of GO!Enterprise
licenses at 95% in 2014 with a surge in the sale of new licenses
-- business-to-employees licenses increased to 834,000 in 2014
from 340,600 in prior year while business-to-consumer licenses
increased to 31.8 million from 13.1 million. Moody's expects
further strong double-digit revenue growth over the next 2 to 3
years based on the strong fundamentals in the EMM and MADP
markets. According to IDC, a provider of IT market intelligence,
EMM and MADP markets will continue growing at a CAGR of 16% and
25%, respectively, over the period 2014 to 2018.

Globo generates the bulk of its revenues through indirect
distribution channels, comprising IT resellers and vendors. As a
result, the company displays high customer concentration with the
largest reseller accounting for 8% of 2014 sales and the top 10
clients representing a larger 55%. However, as these
intermediaries resell the company's products to numerous
corporates, Globo's end-customer base is more diversified
comprising more than 3,600 corporate clients serving a broad
range of industries. Going forward, Globo expects to generate an
increasing proportion of its revenues through the development of
its direct salesforce. While increased direct staff will reduce
EBITDA margin in the short- to medium-term from its high level of
48% in 2014 (as reported by the company), it should deliver
better growth prospects and increased customer engagement over
the longer-term.

Despite the issuance of the new USD180 million Notes, Globo will
still show a relatively moderate adjusted leverage (as adjusted
by Moody's for operating leases) of 3.0x with an EBITDA-to-
Interest of 3.6x as of December 31, 2014. However, Moody's notes
that Globo's leverage is understated by the large amount of
development costs being capitalized for new products. The rating
agency expects leverage to reduce by 1 to 1.5 turn over the next
3 years based on strong revenue growth as well as the
contribution from acquisitions to be funded mainly from the
proceeds of the notes. Moody's notes that earnings and de-
leveraging are exposed to currency volatility as the company
raises debt which is mainly denominated in USD while the majority
of earnings are generated in EUR and other currencies.

Globo's liquidity is good and supported by the large pro-forma
cash balance of EUR195.2 million as of December 31, 2014.
However, we expect the cash balance to reduce significantly over
the next 2-3 years as the company performs bolt-on acquisitions
that will contribute technologies or increase market reach.
Moody's considers that Globo's free cash flow (FCF) generation
will be limited over the rating horizon. FCF, projected at around
5% of total adjusted debt in the first 2 years, will be
constrained by working capital needs due to the company's
indirect distribution model and high capex as Globo invests
significant resources in research and development. We expect
capex to remain at a high level of 25% of sales going forward --
well above its maintenance level.

The provisional (P)B2 rating assigned to the Senior Secured Notes
due 2020, at the same level as the CFR, reflects the absence of
any significant non-debt liabilities ranking ahead or behind. The
indenture indicate that the Notes will benefit from guarantees
and securities from most of Globo's operating subsidiaries, but
on a second lien basis, in order to accommodate the raising of
bank facilities totalling up USD30 million in the future. These
bank facilities will benefit from the same guarantee and security
package but on a first lien basis.

Globo's stable ratings outlook reflects the strong growth
prospects for the business to be funded by ample liquidity at the
closing of the transaction.

What Could Change the Rating UP

While unlikely in the medium-term, positive pressure on the
ratings could arise if (1) the company experiences continued
revenue growth leading to a significant increase of active
business-to-employees and business-to-consumers licenses and
increases significantly its customer diversification, (2) reduces
adjusted gross leverage sustainably below 2.0x, (3) increases
FCF/debt at above 10%, and (4) maintains a good liquidity
position.

What Could Change the Rating DOWN

Negative pressure could arise if Globo (1) experiences a
significant slowdown in revenue growth, (2) generates limited
free cash flow at well below 5% of total adjusted debt on a
sustained basis, and (3) adopts an aggressive acquisition and/or
dividend policy.

The principal methodology used in these ratings was Global
Software Industry published in October 2012. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in
June 2009. Please see the Credit Policy page on www.moodys.com
for a copy of these methodologies.

Headquartered in New York, Athens, and London, where the company
is listed, Globo is a provider of enterprise and consumer
mobility solutions. GO!Enterprise, the company's fastest growing
product, allows, among others, its corporate customers' employees
to easily and securely access back-end enterprise information and
infrastructure, such as e-mails and files through a single
application on their mobile devices and IT departments to manage
and secure employees' mobile devices and deploy applications.


INDEPENDENT ACADEMIES: Association Goes Into Liquidation
--------------------------------------------------------
schoolsweek.co.uk reports that the Independent Academies
Association (IAA) has gone into liquidation citing changes in the
academies' landscape as one of the causes.

The IAA board said it is now in discussions with another,
unnamed, membership organization, to continue services during any
remaining period of membership, according to schoolsweek.co.uk.

The report notes that the tightened school budgets and the
growing number of multi-academy trusts meant schools were now
looking for support within their own trusts.

The report discloses that in a statement, the IAA said: "The IAA,
past and present is proud of the contribution it has made to
create this new landscape, however, it is because of this change,
that it can no longer realistically expect the levels of
membership or sponsorship required to resource the organization
moving forward.

"As a result of this, the Board has reluctantly come to the
inescapable conclusion that IAA is sadly no longer sustainable
long-term.  June 11, IAA Directors met, having taken advice from
a licensed insolvency practitioner, and in the light of our
projections regarding reduced membership income, it was agreed
that a liquidator should be appointed.

"The process for this is underway and all current active IAA
members will be contacted by the professional advisors involved."

The IAA was established in 2002 and its interim chief executive
is Sir Peter Simpson (pictured).


NEWDAY FUNDING: Fitch Assigns 'Bsf' Rating to GBP15.3MM Notes
-------------------------------------------------------------
Fitch Ratings has assigned NewDay Funding's notes final ratings
as:

GBP147.3 mil. Series 2015-1 A: 'AAAsf'; Outlook Stable
GBP21.6 mil. Series 2015-1 B: 'AAsf'; Outlook Stable
GBP31.8 mil. Series 2015-1 C: 'Asf'; Outlook Stable
GBP44.1 mil. Series 2015-1 D: 'BBBsf'; Outlook Stable
GBP22.8 mil. Series 2015-1 E: 'BBsf'; Outlook Stable
GBP15.3 mil. Series 2015-1 F: 'Bsf'; Outlook Stable
GBP250 mil. Series 2015-VFN: 'BBBsf'; Outlook Stable

The transaction is a securitization of UK non-prime credit card
receivables originated by NewDay Ltd.

KEY RATING DRIVERS

Non-Prime Asset Performance

Charge-off and payment rate performance of the pools reflects the
non-prime nature of the assets, which is mitigated by available
credit enhancement.  Fitch has set a steady state charge-off
assumption of 18%, with a stress on the lower end of the spectrum
due to the high absolute level of the steady state assumption
(3.5x for AAAsf).  Fitch applied a payment rate steady state
assumption of 10% with a stress of 45% at 'AAAsf'.

Given the specific nature of the underlying receivables,
performance is not directly comparable with prime UK credit card
transactions.

Changing Pool Composition

The portfolio consists of an open book and a closed book that
have displayed different historical performance trends.  Fitch
expects overall pool performance to migrate towards the
performance of the open book as the closed book amortizes.  Fitch
built this expectation into its steady state asset assumptions.

Variable Funding Notes (VFN)

In addition to Series 2015-VFN providing the funding flexibility
that is typical and necessary for credit card trusts, the
structure employs a separate originator VFN, purchased and held
by NewDay Funding Transferor Ltd (the transferor).  This note
serves three main purposes: to provide credit enhancement to the
rated notes; to add protection against dilution by way of a
separate functional transferor interest; and to serve the minimum
risk retention requirements.

Unrated Originator and Servicer

The NewDay group act in a number of capacities through its
various entities, most prominently as originator and servicer,
but also as cash manager to the securitization.  In most other UK
trusts these roles are fulfilled by large institutions with
strong credit profiles.  The degree of reliance on the NewDay
group in this transaction is mitigated by the transferability of
operations, agreements with established card service providers, a
back-up cash management agreement and a non-amortizing liquidity
reserve per series.

Steady Asset Outlook

Fitch expects UK credit card performance to remain stable, with
only limited rises in delinquency and charge-off levels
throughout 2015.  Payment rates and yields are likely to remain
stable in 2015, but there is still no clarity as to how lenders
which are reliant on interchange to fund their reward programs
will replace the loss of this income source.

RATING SENSITIVITIES

Rating sensitivity to increased charge-off rate

Increase base case by 25% / 50% / 75%
Series 2015-1 A: 'AAsf' / 'A+sf' / 'A-sf'
Series 2015-1 B: 'A+sf' / 'A sf' / 'A-sf'
Series 2015-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'
Series 2015-1 D: 'BB+sf' / 'BB-sf' / 'B+sf'
Series 2015-1 E: 'B+sf' / NA/ NA
Series 2015-1 F: NA/ NA/ NA

Rating sensitivity to reduced MPR

Reduce base case by 15% / 25% / 35%
Series 2015-1 A: 'AAsf' / 'A+sf' / 'A-sf'
Series 2015-1 B: 'A+sf' / 'BBB+sf' / 'BBBsf'
Series 2015-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'
Series 2015-1 D: 'BB+sf' / 'BB+sf' / 'BBsf'
Series 2015-1 E: 'B+sf' / 'B+sf' / 'B+sf'
Series 2015-1 F: NA/ NA / NA

Rating sensitivity to reduced purchase rate (ie aggregate new
purchases divided by aggregate principal repayments in a given
month)

Reduce base case by 50% / 75%
Series 2015-1 A: 'AAAsf' / 'AAAsf'
Series 2015-1 B: 'AAsf' / 'AAsf'
Series 2015-1 C: 'Asf' / 'Asf'
Series 2015-1 D: 'BB+sf' / 'BB+sf'
Series 2015-1 E: 'Bsf' / NA
Series 2015-1 F: NA / NA


OSTWALD HELGASON: Files for Liquidation in London
-------------------------------------------------
Drapers reports that two London-based designers, Lucas Nascimento
and Ostwald Helgason, have filed for liquidation within weeks of
each other.

Both designers were rapidly emerging names showing at London and
New York fashion weeks and sought by premium fashion boutiques
worldwide, according to Drapers.  One source close to the
situation said that both designers, like many young British
labels, suffered from production and late delivery issues, the
report notes.

London-based Ostwald Helgason, founded by Susanne Ostwald and
Ingvar Helgason in 2008, appointed Kirstie Provan and Gary
Shankland of insolvency specialist Begbies Traynor as joint
administrators this month, the report relates.

Its website is currently down, with the line: "We'll be back
soon!"  The label offered clean-lined, modern silhouettes with
bold colours and patterns and was stocked in Net-a-Porter's The
Outnet and London-based premium retailer Browns, recently bought
by Farfetch.

The liquidation comes after the label withdrew from London
Fashion Week in February "in order to focus efforts on the
development of the brand and its core collection," according to
website Fashionista, the report discloses.

A spokesperson for the brand told Fashionista at the time that
the "designers look forward to presenting their future
collections in the forthcoming seasons," the report relays.

Brazilian Lucas Nascimento went into voluntary liquidation last
month, appointing Paul Cooper and Paul Appleton of insolvency
practice David Rubin & Partners as joint administrators, the
report notes.

A source close to the situation said Mr. Nascimento had left a
small amount of debt.

UK and international sales of both Lucas Nascimento and Ostwald
Helgason were handled by London-based multi-label showroom
RainbowWave, which represents designers such as Peter Pilotto,
Bella Freud and Rachel Comey, the report says.

The report relays that RainbowWave founder and director Maria
Lemos said: "RainbowWave has embraced several young designers and
supported throughout the early stages of development.  It is
unfortunate that in a rostrum of several designers who are now
internationally acclaimed, Oswald Helgasson and Lucas Nascimento,
both very talented designers, were unable to overcome the initial
problems of a young business."

Both Lucas Nascimento and Ostwald Helgason could not be reached
for comment as Drapers went to press.


PETERBOROUGH PLC: Moody's Confirms Ba3 Rating on GBP446MM Bonds
---------------------------------------------------------------
Moody's Investors Service has confirmed at Ba3 the ratings of the
GBP446 million of fixed rate guaranteed senior secured bonds (the
Bonds) due 2042 issued by Peterborough (Progress Health) plc
(ProjectCo), a GBP14.5 million liquidity facility and a GBP7.2
million change in law facility (together the Standby Facilities).
The action reflects that a standstill arrangement between
ProjectCo and the Peterborough and Stamford Hospitals NHS
Foundation Trust (the Trust) was agreed in April 2015 which
should allow ProjectCo to continue to meet its financial
obligations while the underlying issues concerning fire
compartmentation at Peterborough City Hospital (the Hospital) are
investigated and, where necessary, remedied.  The outlook on the
ratings is developing.  This concludes the review of the ratings
that was initiated on April 2, 2015.

ProjectCo is a special purpose vehicle that in July 2007 entered
into a project agreement (Project Agreement) with three NHS
trusts, being the Trust, the Cambridgeshire and Peterborough
Mental Health Partnership NHS Trust (reconstituted, in June 2008,
as the Cambridgeshire and Peterborough NHS Foundation Trust,
together with the Trust, the Trusts), and Peterborough Primary
Care Trust (whose payment obligations were transferred to NHS
Property Services Ltd in April 2013).  The Project Agreement,
which expires 35 years and 4 months from financial close, governs
(1) the construction of a new acute hospital and a mental health
unit; (2) the construction of a new integrated care centre; and
(3) the provision of certain services (together the Project).

RATINGS RATIONALE

"The rating action reflects that the standstill agreement agreed
between the Peterborough and Stamford Hospitals NHS Foundation
Trust and the project vehicle restricts the Trust's ability to
withhold material portions of the monthly service payments, as
experienced from January to March 2015, improving the liquidity
position of the project vehicle" says Adam Muckle, an Analyst in
Moody's Infrastructure Finance Group and lead analyst for
Peterborough (Progress Health) plc.

On May 1, 2015, ProjectCo announced that it had entered into a
standstill agreement (the Trust Standstill) with the Trust, the
primary offtaker to the PFI project.  In accordance with the
Trust Standstill we do not expect the Trust to continue to
withhold material portions of the monthly service payment as it
previously did in January, February and March 2015.  At the same
time ProjectCo has entered into a back-to-back standstill
agreement with the construction contractor, Brookfield Multiplex
Construction Europe Limited (Brookfield Construction), and the
hard facilities management provider, Brookfield Multiplex
Services Europe Limited (Brookfield Services), (the Brookfield
Standstill) effectively passing down ProjectCo's obligations
under the Trust Standstill to its subcontractors.  The agreements
are credit positive for ProjectCo because they reduce the risk of
prospective deductions weakening its liquidity position.  It also
introduces more certainty in relation to resolution of the
underlying dispute concerning fire compartmentation at
Peterborough City Hospital (the Hospital).

During January, February and March 2015 the Trust withheld, in
aggregate, approximately GBP6.4 million from approximately
GBP11.5 million of monthly service payments.  Service payments
reflect project performance during the monthly period which
occurred two months previous to the payment month.  The aggregate
amounts were withheld because the Trust asserted that the
Hospital was unavailable but used for the period between Nov. 17,
2014, and Jan. 31, 2015, because fire compartmentation was not
compliant with contractual requirements.  As a result of entering
into the Trust Standstill, the Trust made no deductions from its
April 2015 and May 2015 monthly service payments.

In March and April 2015 ProjectCo issued demands to Brookfield
Construction, in accordance with the construction sub-contract,
for payment of the amounts withheld by the Trust in January and
February 2015 and March 2015 respectively, net of amounts not
paid to Brookfield Services during the same period.  The amounts
were paid in full and ProjectCo was able to meet its senior debt
service obligations which fell due on April 2, 2015, without
drawing on any reserves or the liquidity facility.

The terms of the Trust Standstill will allow the project parties
to investigate the underlying issues further and to undertake
remedial works, if necessary, whilst preventing the Trust from
claiming deductions or awarding service failure points, in
relation to fire compartmentation issues, during the period in
which the Trust Standstill is in force.  The standstill
agreements reduce the risk of material amounts being withheld
whilst investigations and, to the extent required, remedial works
are ongoing.  In Moody's view, the Trust Standstill reflects the
Trust's intention to collaborate with private sector parties in
solving underlying issues it has identified rather than wishing
to terminate the Project Agreement.  Moody's understands that
technical surveys of the estate are progressing and all parties
are working collaboratively and in accordance with the terms of
the Trust Standstill.

The Ba3 ratings are constrained by (1) the ongoing dispute with
the Trust regarding fire compartmentation at the Hospital; and
(2) the uncertainty in relation to the extent, if any, of
remedial works required at the hospital in order to meet the
requirements of the Project Agreement.

However the ratings reflect as positives (1) The Trust Standstill
and Brookfield Standstill which reduce the risk of prospective
material deductions to the monthly service payments; (2) the
contractual arrangements of the project and in particular the
construction sub-contract which has allowed ProjectCo to claim
timely compensation from Brookfield Construction for the amounts
withheld by the Trust; and (3) a range of creditor protections
included within the financing structure, such as a lifecycle
reserve account and a liquidity facility which will provide
ProjectCo with liquidity to meet its senior debt service
obligations.

Although the Bonds and Standby Facilities continue to benefit
from an unconditional and irrevocable guarantee provided by FGIC
UK Limited, the Ba3 ratings of the Bonds and the Standby
Facilities are based on the credit quality of the Project on a
standalone basis following the withdrawal of a Moody's rating of
FGIC UK Limited in 2009.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the ratings if the underlying dispute
regarding fire compartmentation is sufficiently resolved thus
significantly reducing the risk of further material deductions to
the monthly service payments or litigation by the Trust against
ProjectCo or its contractors.

Conversely, Moody's could downgrade the ratings if ProjectCo
breach the terms of the Trust Standstill or if progress on
resolving the dispute is insufficient, increasing the risk of
financial penalties being imposed on ProjectCo.

ProjectCo is wholly owned by Peterborough (Progress Health)
Holdings Ltd, which in turn is 49% owned by Peterborough
Hospitals Investments Limited (a subsidiary of InfraRed
Infrastructure Yield L.P.), 30% by John Laing Infrastructure Fund
and 21% by Macquarie Peterborough Hospital Investments Limited (a
subsidiary of Macquarie Bank Limited).


PRECISE MORTGAGE 2015-2B: Moody's Rates Class E Notes (P)Ba3
------------------------------------------------------------
Moody's Investor Service has assigned provisional long-term
credit ratings to Notes to be issued by Precise Mortgage Funding
2015-2B PLC:

   -- GBP[ ]M Class A Mortgage Backed Floating Rate Notes due
      June 2048, Assigned (P)Aaa (sf);

   -- GBP[ ]M Class B Mortgage Backed Floating Rate Notes due
      June 2048, Assigned (P)Aaa (sf);

   -- GBP[ ]M Class C Mortgage Backed Floating Rate Notes due
      June 2048, Assigned (P)Aa2 (sf);

   -- GBP[ ]M Class D Mortgage Backed Floating Rate Notes due
      June 2048, Assigned (P)Baa3 (sf); and

   -- GBP[ ]M Class E Mortgage Backed Floating Rate Notes due
      June 2048, Assigned (P)Ba3(sf)

Moody's has not assigned ratings to the GBP[ ]M Class Z Mortgage
Backed Fixed Rate Notes due June 2048 and the Residual
Certificates.

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

On the closing date, Charter Court Financial Services Ltd will
sell the portfolio to Precise Mortgage Funding 2015-2B PLC.

RATINGS RATIONALE

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

Portfolio expected loss of [2]%: this is marginally higher than
other buy to let pools in the UK and is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) the originator's limited historical performance, (ii) the
current macroeconomic environment in the UK, (iii) the collateral
performance to date along with an average seasoning of [2.2]
years; and (iv) benchmarking with similar UK Buy to Let
transactions.

MILAN CE of [13]%: this is higher than other UK buy to let
transactions due to (i) the originator's limited historical
performance and (ii) the weighted average LTV of [72.44%].

At closing the mortgage pool balance will consist of GBP [224]
million of loans.  The Reserve fund will be funded to [2.9]% of
the aggregate Principal Amount Outstanding of the Rated Notes as
of the Closing Date.  The Reserve fund will not be amortized.
Moreover, the class A and B notes benefit from principal to pay
interest.

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

Interest Rate Risk Analysis: The transaction will benefit from a
Swap provided by Credit Suisse International (A1/P-1).  Under the
swap agreements during the term of the life of the fixed rate
loans the issuer will pay a fixed swap rate of on the other side
the swap counterparty will pay three month sterling Libor.

The provisional ratings address the expected loss posed to
investors by the legal final maturity of the Notes.  Moody's
issues provisional ratings in advance of the final sale of
securities, but these ratings represent only Moody's preliminary
credit opinions.  Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavor to assign
definitive ratings to the Notes.  A definitive rating may differ
from a provisional rating.  Other non-credit risks have not been
addressed, but may have a significant effect on yield to
investors.

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

Stress Scenarios:

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from [2]% to [4]% of current balance, and the MILAN
CE was increased from [13]% to [18.2]%, the model output
indicates that the Class A notes would still achieve Aaa(sf)
assuming that all other factors remained equal.  Moody's
Parameter Sensitivities quantify the potential rating impact on a
structured finance security from changing certain input
parameters used in the initial rating.  The analysis assumes that
the deal has not aged and is not intended to measure how the
rating of the security might change over time, but instead what
the initial rating of the security might have been under
different key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security
might have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

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

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


TRAP OIL: Faces Cash Shortage; Mulls Rescue Options
---------------------------------------------------
Gareth Mackie at The Scotsman reports that Trap Oil is "urgently"
considering a range of options, including the sale of license
stakes, as it seeks to ward off collapse.

The firm warned in April that it was poised to run out of cash as
a result of "depressed" oil prices, and on June 11 said it was in
talks with potential investors, but "there can be no certainty
that a viable funding solution will be forthcoming", The Scotsman
relates.

In a statement issued after its share price more than doubled on
June 11, Trap, as cited by The Scotsman, said: "The directors
continue to believe that, absent a viable funding solution, the
company currently only has adequate working capital to support
its activities until early July."

Trap Oil is an independent UK oil and gas exploration, appraisal
and production company with a geographic focus on the UK
Continental Shelf (UKCS).


* UK: Oilfield Services Companies Face Tough Months Ahead
---------------------------------------------------------
Gareth Mackie at The Scotsman reports that the full impact of the
collapse in oil prices is yet to make itself felt as North Sea
operators delay or cancel projects.

According to The Scotsman, experts fear that the next six to 12
months will be "critical" for the survival of oilfield services
companies and those further down the supply chain amid efforts to
cut costs across the industry.

Although there have been relatively few insolvencies in the oil
and gas sector since Brent crude prices tumbled at the end of
last year, KPMG said there were increasing signs of distress in
the market at the "ripple effect" of cost reduction measures
begins to spread, The Scotsman relates.

Geoff Jacobs, pictured, restructuring director at the accounting
firm, said the low oil price has "serious implications" for oil
explorers and producers, which have so far borne the brunt of
redundancies, The Scotsman notes.

Confidence among the UK's oil and gas explorers has sunk for the
third quarter in a row, with the latest business sentiment index
published by industry body Oil & Gas UK falling further into
negative territory during the first three months of this year as
explorers struggle with historically low oil prices, The Scotsman
relays.

Mr. Jacobs, as cited by The Scotsman, said: "We are now really
seeing the impact of the oil price decline extend down the supply
chain affecting not only oilfield services companies but also
impacting businesses across Scotland not necessarily perceived as
being within the oil and gas sector.

"Businesses that supply into or are dependent upon the sector are
beginning to suffer as activity levels decrease generating less
revenue for many businesses across the north of Scotland."

With lenders carrying out a fresh round of checks on their
exposure to potentially stressed businesses, Mr. Jacobs urged
firms to take "positive action" as soon as possible to assess the
risks.

"Perceived loss of control may see financial stakeholders impose
onerous conditions and information requirements, distracting
management from the critical day job of running the business,"
The Scotsman quotes Mr. Jacobs as saying.

"Businesses of all sizes are caught up in the ongoing impact of
the oil price collapse and will require a range of support to
overcome the challenge that they are already experiencing or
anticipate in the next six to 12 months."


UK: Fitch Affirms Ratings on 23 Tranches of 7 European SF CDO
-------------------------------------------------------------
Fitch Ratings has affirmed 23 tranches, upgraded one tranche and
affirmed and withdrawn the rating on one tranche of seven
European structured finance collateralized debt obligation (SF
CDO) transactions.

KEY RATING DRIVERS

Strong recovery performance in Anthracite Euro CRE CDO 2006-1
p.l.c. has continued since the last review in July 2014 and the
class A note has been paid in full.  The class B note remains
undercollateralized, due to strong recovery performance, the
amount of undercollateralization has fallen to EUR14.8 mil. from
EUR26.2 mil., when defaulted assets are discounted to their
projected recovery values.  While Fitch considers default of the
class B note is still probable, due to strong recovery receipts
default is no longer considered inevitable.  As a result, Fitch
has upgraded the class B notes to 'CCsf' from 'Csf'.

Fitch has affirmed and withdrawn the rating of House of Europe
III's class E notes as a result of a policy change.  Under
Fitch's Criteria for Rating Caps and Limitations in Global
Structured Finance Transaction, we will not assign principal-only
ratings where an interest coupon for a note exists.  The class E
notes in this transaction are contractually due a coupon and a
principal-only rating is therefore not appropriate.

House of Europe 1's certificates are rated on a principal-only
basis and benefit from the support of zero-coupon French
government bonds to repay the notes' notional.  The certificates
are not due a contractual coupon but may receive a dividend at
each payment date should there be sufficient funds available.
The rating assigned does not address any dividend payments but
only that principal is repaid at or prior to maturity.

Fitch believes the remainder of the transactions are highly
distressed, as reflected by the highest rating of 'CCsf'.  Fitch
views the default of any tranche rated 'CCsf' as probable and
rated 'Csf' as inevitable.  Performance in the past year has been
in line with Fitch's expectations.

RATING SENSITIVITIES

Most notes are already at distressed ratings levels and as such
are unlikely to be affected by any further deterioration in the
respective underlying asset portfolios.  For House of Europe 1's
certificates, the rating is linked to the sovereign rating of
France.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

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

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

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

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by UBS as at 15 June 2015 with
      regards to Brooklands Euro Referenced Linked Notes 2005-1
      Ltd.
   -- Transaction reporting provided by Calculation Agents and
      Trustees

The rating actions are:

Anthracite Euro CRE CDO 2006-1 p.l.c.
Class B (ISIN XS0276697512): upgraded to 'CCsf' from 'Csf'
Class C (ISIN XS0276698163): affirmed at 'Csf'
Class D (ISIN XS0276698833): affirmed at 'Csf'
Class E (ISIN XS0276699302): affirmed at 'Csf'

Brooklands Euro Referenced Linked Notes 2005-1 Ltd
Class D1 (ISIN XS0226777133): affirmed at 'Csf'
Class D2 (ISIN XS0226777216): affirmed at 'Csf'
Class E (ISIN XS0226777729): affirmed at 'Dsf'

Cloverie Series 2005-04
Series 2005-04 (ISIN XS0212294077): affirmed at 'Csf'

High Tide CDO I S.A.
Class A (ISIN XS0169669081): affirmed at 'CCsf'
Class B (ISIN XS0169669164): affirmed at 'CCsf'
Class C (ISIN XS0169669248): affirmed at 'Dsf'

House of Europe Funding I, Ltd
Class A (XS0220241086): affirmed at 'Csf'
Class B (XS0220241755): affirmed at 'Csf'
Class C (XS0220242134): affirmed at 'Csf'
Class C additional interest (interest only): affirmed at 'Csf'
Certificates: affirmed at 'AAsf'; Stable Outlook

House of Europe Funding III PLC
Class A (XS0202218284): affirmed at 'Csf'
Class B (XS0202219092): affirmed at 'Csf'
Class C (XS0202219415): affirmed at 'Csf'
Class D (XS0202221072): affirmed at 'Csf'
Class E (XS0202221155): affirmed at 'AAsf' and withdrawn

ODEON ABS 2007-1 B.V.
Class A-1 (XS0308505568): affirmed at 'Csf'
Class A-2 (XS0308507267): affirmed at 'Csf'
Class A-3 (XS0308534154): affirmed at 'Csf'
Class B (XS0308534311): affirmed at 'Csf'



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


* BOOK REVIEW: EPIDEMIC OF CARE
-------------------------------
Author: George C. Halvorson
George J. Isham, M.D.
Publisher: Jossey-Bass; 1st edition
Hardcover: 271 pages
List Price: $28.20
Order your personal copy today at
http://www.amazon.com/exec/obidos/ASIN/0787968889/internetbankrup
t

Halvorson and Isham worked together as leaders of the Minneapolis
health-care organization HealthPartners; Halvorson as chairman
and CEO, and Isham as medical director and chief health officer.
From their positions as leaders in the health-care field, they
have gained a broad, thorough understanding of the structure,
workings, and the problems of America's health-care system. Their
"Epidemic of Care" written in a readable, lucid, jargon-free
style is a timely work for anyone interested in the pressing
matter of satisfactory health care in America. This includes
government workers, politicians, executives of HMOs and
hospitals, and critics of health care, to individuals making
choices about their own health care. It is a notable work both
practical and visionary that one hopes legislators and heads of
HMOs will take in. For Halvorson and Isham make their way through
the daunting complexities of today's health-care system to put
their finger on its core problems and offer practicable solutions
to these.

The two main problematic issues of contemporary health care are
health-care costs and quality of care. These two authors offer
solutions taking into consideration both of these. They put forth
balanced proposals instead of the many one-sided ones which
stress cutting costs at the expense of care or favor care
regardless of costs, costs usually born by government from tax
revenues. In the authors' comprehensive, balanced proposals,
corporations and businesses of all sizes, government agencies,
health-care organizations of all types, state and local
governments and health organizations, and also individuals work
together cooperatively for the goal of affordable, effective, and
widespread up-to-date health care.

Before outlining their program for dealing with the problems in
health care, which are only growing worse in the present system,
the authors relate information on different parts of today's
system most readers would not be aware of. Then they analyze it
to focus in on what is causing the problems in the particular
area of health care. In some cases, misconceptions held among the
public are cleared up, paving the way toward agreement on what
are the real problems and coming up with acceptable solutions for
them. The percentage of the cost of HMO membership and insurance
premiums going for administration is one such misconception.
"People guess, in fact, that HMO and insurance administration
costs are about 30 to 40 percent of premiums and that insurer
profits add another 10 to 20 percent of the total cost." This
means that anywhere from about 40 percent to 60 percent of
payments for HMOs or insurance doesn't go for health care. The
authors clear up this misconception giving rise to much confusion
in trying to deal with the serious problems facing the health-
care field, as well as a good deal of resentment against HMOs and
insurance companies, by citing that "health plan administrative
costs, including profits and marketing, average from 5 to 30
percent of total premium, depending on the plan." This leads to
the conclusion that it is not a sudden rise in administrative
costs or the greed of health-care providers that is mainly
responsible for driving up the costs of health care and will
continue to do so for the foreseeable future without effective
change in the field. Rising costs of health care from new
technologies, consumer expectations and demands, and also misuse
of drugs and treatments making patients worse or prolonging their
medical problems are the main reason for the rising costs. The
frequent misuse of modern-day medicines and treatments cited by
the authors is an issue that is starting to receive attention in
the media.

The price of prescription drugs is one health-care issue already
receiving much attention that the authors address. In this
discussion, they note that because of committees of physicians
and pharmacologists set up by HMOs to identify which drugs were
most effective for specific medical problems and set standards
for prescribing these according to HMO policies, "all Americans
benefited from the new focus on drugs that actually work." Before
these committees, eighty-four percent of drugs developed by the
pharmaceutical companies were what were know as "class C" drugs
that were little better than placebos. As the authors note, in
those days not so long ago, drugs were being developed and
marketed more to generate sales than remedy medical conditions.
The high cost Americans pay for prescription compared to buyers
in other countries is another matter the two authors take up. In
this, they take the position of American buyers of prescription
drugs by making the point that they should not be singled out to
bear the disproportionate share of the research and marketing
costs going into the drug prices since numbers of persons in
countries around the world gain health benefits from the drugs.
The wasteful similarities between some prescription drugs, the
misuse of some, and growing concerns over costs and use of the
drugs with persons under sixty-five are other topics dealt with
in the discussion and analysis of the issue of prescription
drugs.

Halvorson and Isham's fair-minded overview and critique of
today's heath-care field should be read by anyone with an
interest in and concern about this field central to the quality
of life of Americans and the economy. While they recognize that
the field's dysfunctions have such deep roots and thorny
complexities that "there is no single villain responsible for our
troubles and no silver bullet to cure them," undoubtedly some and
likely a number of the two authors' approaches to resolving
particular troubles or even their solutions to certain problems
will be adopted. There is just no way out of the current health-
care crisis other than the clear-sighted, comprehensive,
cooperative way Halvorson and Isham present.

George Halvorson is currently chairman and CEO of Kaiser
Permanente, one of the U. S.'s largest health-care organizations.
Isham continues as medical director and chief health officer of
HealthPartners.


                            *********

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.


                 * * * End of Transmission * * *