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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

         Thursday, September 24, 2015, Vol. 16, No. 189

                            Headlines

C Y P R U S

ORPHANIDES PUBLIC: Creditors Appoint Liquidators


F R A N C E

TECHNICOLOR SA: S&P Affirms 'B+' CCR, Outlook Remains Stable


G E R M A N Y

TELE COLUMBUS: S&P Affirms 'B+' CCR, Outlook Negative


I T A L Y

BANCA CARIGE: S&P Affirms 'B-/C' Counterparty Credit Ratings
ISTITUTO CENTRALE: S&P Keeps 'BB+' CCR on CreditWatch Negative
TEREOS: Moody's Lowers CFR to B1, Outlook Negative


K A Z A K H S T A N

EXIMBANK KAZAKHSTAN: Fitch Publishes B- LT Issuer Default Ratings


N E T H E R L A N D S

MOSCOW STARS: Fitch Withdraws 'BBsf' Ratings on 2 Debt Classes


N O R W A Y

PETROLEUM GEO-SERVICES: Moody's Cuts CFR to B1, Outlook Negative


P O L A N D

CYFROWY POLSAT: Moody's Affirms Ba3 CFR, Outlook Positive
JSW: Likely to Reach Debt Restructuring Deal with Creditors


P O R T U G A L

METRO DE LISBOA: S&P Raises ICR to 'BB+', Outlook Stable
OCIDENTAL DE VIDA: S&P Raises CCR Rating to 'BB+', Outlook Stable
PORTUGUESE BANKS: S&P Takes Rating Actions on 5 Institutions


R U S S I A

EXPRESS-VOLGA JSCB: DIA to Oversee Rehabilitation Measure
RUSSIA: Fitch Says Tariff Freezes May Prompt Utilities Capex Cuts


S P A I N

ABENGOA SA: HSBC Withdraws Support for Planned Capital Increase
PESCANOVA: To Face Liquidation if Shareholders Don't Back Bailout


T U R K E Y

WTA-X TRAVEL: Tour Operator Goes Insolvent


U K R A I N E

FERREXPO PLC: Says Not Seeking Restructuring Advisor


U N I T E D   K I N G D O M

BRIT LIMITED: Fitch Affirms 'BB' Rating on Subordinated Notes
HUELIN-RENOUF: Restructuring Law Speeds Up Liquidation
INTEROUTE COMMUNICATIONS: S&P Assigns Preliminary 'B+' CCR
MICRO FOCUS: S&P Affirms 'BB-' CCR, Outlook Stable
MISYS NEWCO: Moody's Affirms B2 CFR, Outlook Stable

* Consultation on Plan to Improve Depositors' Protection Ongoing


X X X X X X X X

* SME Loan Payment Delays in Italy and Spain May Improve
* EMEA Commodity Producers Most Exposed to China's Slowdown
* Fitch: EU Leveraged Finance Multiples Back to Pre-Crisis Levels


                            *********


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C Y P R U S
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ORPHANIDES PUBLIC: Creditors Appoint Liquidators
------------------------------------------------
Financial Mirror reports that two authorized insolvency advisors
from the Cyprus and Ireland offices of Baker Tilly have been
appointed by creditors as liquidators of the now defunct
Orphanides Public Co.

The international advisory firm said that Antonis Vasiliou --
an.vasiliou@bakertillyklitou.com -- and George Maloney --
gmaloney@bakertillyrg.ie -- were appointed after the recent
Larnaca District Court ruling into the case and following the
creditors meeting on July 29, Financial Mirror relates.

Orphanides, the one-time retail giant with hypermarkets and mini-
stores throughout the island, collapsed after banks called in the
collateral for debts that had piled up over the years, Financial
Mirror recounts.

The company debt includes millions owed to banks, creditors and
former staff which is expected to be recovered from the sale of
assets, including properties held by affiliate companies of
Oprhanides Plc, Financial Mirror discloses.



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F R A N C E
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TECHNICOLOR SA: S&P Affirms 'B+' CCR, Outlook Remains Stable
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit ratings on France-based technology company
Technicolor S.A. and its subsidiary Thomson Licensing SAS and the
'B' short-term rating on Technicolor.  The outlook remains
stable.

At the same time, S&P affirmed its 'B+' issue rating on
Technicolor's senior secured debt.  The recovery rating remains
'3', indicating S&P's expectation of meaningful recovery (50%-
70%; higher half of the range) in the event of a default.

S&P also affirmed its 'B+' issue rating on the senior secured
debt issued by Technicolor's Luxembourg-based special-purpose
vehicle Tech Finance & Co S.C.A.

The affirmation of the ratings follows Technicolor's announcement
that it has acquired U.K.-based visual effects and content
creation studio, The Mill, for EUR259 million.  Total funding for
The Mill and for the recent acquisition of Cisco Connected
Devices (CCD) will include EUR375 million in an incremental term
loan, a rights offering of up to EUR225 million, and about EUR100
million of cash, in addition to EUR137 million of Technicolor's
stock to Cisco.  This relative mix is in line with S&P's previous
assumptions at the time of the Cisco acquisition in July.

The Mill complements Technicolor's visual effects and post-
production offer, making it the leader in its field in
advertising, in addition to film and TV.  However, given the
modest size of the acquisition -- S&P expects revenue
contributions will be less than 5% of its 2016 forecast -- S&P
believes that it will have only an incremental impact on the
group's overall business risk.  S&P also expects no material
impact to the group's Standard & Poor's-adjusted credit metrics,
or its overall financial profile.

The stable outlook reflects S&P's view that after the
acquisition's financing, Technicolor will maintain adjusted debt
to EBITDA below 3x, assuming a moderate realization of synergies,
FOCF exceeding EUR200 million on a sustainable basis, and
"strong" liquidity.  S&P expects deleveraging will occur through
synergy-driven Connected Home EBITDA growth and the cash flow
sweep amortization.  The EBITDA contribution and cost synergies
from the CCD and The Mill acquisitions will also help mitigate
the significant loss of EBITDA beyond 2015 as its MPEG-LA license
revenues drop.



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G E R M A N Y
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TELE COLUMBUS: S&P Affirms 'B+' CCR, Outlook Negative
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on German cable operator Tele Columbus
AG.  The outlook is negative.

S&P also affirmed its 'B+' issue rating on the company's existing
EUR935 million senior facilities, consisting of EUR810 million of
term loans, a EUR75 million capital expenditure facility, and a
EUR50 million revolving credit facility (RCF).  The recovery
rating on all of Tele Columbus' senior secured facilities is '3',
indicating S&P's expectation of meaningful recovery in the event
of a payment default, in the lower half of the 50%-70% range.

At the same time, S&P affirmed its 'B-' issue rating on the
second-lien facility, with a recovery rating of '6', indicating
S&P's expectation of negligible (0%-10%) recovery in the event of
a payment default.

The affirmation follows Tele Columbus' announcement on Sept. 13,
2015, that it had entered into an agreement to acquire German
cable operator pepcom GmbH (pepcom) for a purchase price of
EUR608 million.  S&P thinks that, although the transaction will
incrementally increase Tele Columbus' debt-to-EBITDA ratio, as
adjusted by Standard & Poor's, the overall prospect for leverage
reduction by means of a capital increase planned for late 2015
remains intact.  Therefore, S&P anticipates that leverage will
stay within limits consistent with the current rating.

After taking into account debt and debt-like items assumed, as
well as a minority stake in one of pepcom's subsidiaries that is
not part of the acquisition, the cash payable amounts to
EUR505 million.  The transaction will be funded with new senior
debt, an equity bridge facility, and balance-sheet cash.  The
deal is Tele Columbus' second large acquisition in 2015 after it
acquired German cable operator PrimaCom on July 31, 2015, for
EUR711 million, funded with a mix of senior and junior debt, a
EUR125 million equity bridge loan, and cash.  Tele Columbus plans
to use a rights issue in late 2015 to repay the equity bridge
facilities for both the pepcom and PrimaCom acquisitions.  Any
surplus proceeds could be used to pay down additional debt.  The
objective as expressed by Tele Columbus is to conclude the
relevant rights issues before the end of 2015.

"The rating is supported by our expectation that the planned
capital increase will result in meaningful proceeds in excess of
the PrimaCom and pepcom equity bridge loans, and that this cash
will be applied toward debt reduction, most likely by paying down
a substantial part or all of the second-lien debt.  We think this
view is substantiated by Tele Columbus' ambition to return to its
medium-term leverage target of 3.0x-4.0x, as per the company's
definition, within 18?24 months.  On this basis, we forecast that
pro forma debt to EBITDA including PrimaCom and pepcom and as
fully adjusted by Standard & Poor's, will be about 5.5x?5.7x in
2015 and gradually decline to about 5.0x in 2016 and 4.2x?4.4x in
2017.  This compares with pro forma debt to EBITDA of about 5.4x
in 2015 and 4.6x?4.8x in 2016 in our forecast before the pepcom
acquisition," S&P said.

From a business risk perspective, S&P thinks that the acquisition
of pepcom, which will increase the number of homes connected by
about 810,000 to 3.7 million for the three companies combined,
incrementally enhances Tele Columbus' scale and market position
as the third-largest German cable operator.  Through pepcom's
subsidiary HL komm, it also adds a small B2B (business-to-
business) segment to Tele Columbus' mostly housing association
and B2C (business-to-consumer) operations and brings about
potential for some cost and revenue synergies, for example from
streamlining overhead functions.

However, in S&P's view, these advantages are offset by the low
level of geographic overlap, which limits any possible benefits
from lower competitive intensity and which may constrain the
companies' ability to consolidate network footprints.  Moreover,
like Tele Columbus, pepcom faces the need to invest to allow for
the migration of additional homes to its network.  Currently,
less than 65% of the homes pepcom covers are connected to the
company's own backbone network.

S&P continues to apply a one-notch negative adjustment to reflect
its expectation of Tele Columbus' weak near-term cash flow
metrics, with expected negative free operating cash flow (FOCF)
for the combined entity in 2015 and 2016.  S&P bases this
anticipation on the company's cash spending on migration and
modernization of Tele Columbus', PrimaCom's, and pepcom's
networks.

S&P's negative outlook on Tele Columbus reflects S&P's view that,
after acquiring PrimaCom and pepcom, the company may not
deleverage as much as S&P expects in its base case, undermining
prospects for achieving Standard & Poor's-adjusted debt to EBITDA
of 5.0x and near-breakeven FOCF by the end of 2016.  This
scenario could unfold as a result of weaker EBITDA growth or
lower debt reduction in the second half of 2015 than S&P
currently anticipates, or further debt-funded acquisitions.

S&P could lower the rating if it thinks that Tele Columbus is
unlikely to deleverage as quickly as S&P expects.  More
specifically, S&P would consider a downgrade if it thinks that
Standard & Poor's-adjusted debt to EBITDA will remain
significantly and sustainably above 5.0x, with worsening
prospects for FOCF to turn positive by 2017.  This could be the
case if the potential rights issue planned for the second half of
2015 results in lower proceeds and debt reduction than S&P
currently anticipates or if Tele Columbus' EBITDA growth is
weaker than S&P expects in its base case, for example due to
difficulties with integrating PrimaCom and pepcom.  Moreover,
such a scenario could materialize due to further debt-funded
acquisitions.

S&P could revise the outlook to stable if Tele Columbus
integrates PrimaCom and pepcom smoothly and successfully executes
its network modernization program, supporting an increasing
penetration of bundled offers in its customer base and the
migration of most customers to its own network, while
strengthening FOCF toward 5% of adjusted debt and Standard &
Poor's-adjusted debt to EBITDA to sustainably below 5.0x.



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I T A L Y
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BANCA CARIGE: S&P Affirms 'B-/C' Counterparty Credit Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B-/C'
long- and short-term counterparty credit ratings on Italy-based
Banca Carige SpA.

S&P then withdrew the ratings at the issuer's request.  At the
time of the withdrawal, the outlook was stable.

The affirmation reflects S&P's view that the EUR850 million
capital increase finalized by Carige in July 2015 will allow it
to absorb the still-high credit losses S&P expects it to post in
the next 18 to 24 months.

S&P estimates that the EUR850 million capital increase improved
Carige's risk-adjusted capital (RAC) ratio by about 200 basis
points from 3.5% as of December 2014.  Despite this capital
improvement, S&P anticipates that Carige's creditworthiness will
likely remain constrained by its poor asset quality and weak
preprovision profitability.  S&P therefore expects Carige's RAC
ratio to be only slightly above 5% by the end of 2017.

Carige had accumulated a stock of nonperforming assets (NPAs) of
about EUR6.8 billion as of June 2015, equivalent to about 29.7%
of its gross loans.  This level is significantly higher than the
system average and poses risks for the bank's business and
financial profiles in the next couple of years.  In S&P's view,
Carige's very high stock of NPAs makes it more vulnerable than
peers to higher-than-expected credit losses.

At the time of the withdrawal, the outlook was stable.  The
outlook reflected S&P's view that Carige's improved
capitalization would have offset the possibility of us removing
the one notch of uplift for extraordinary government support that
S&P included in the long-term rating.  S&P could have removed the
extraordinary support by year-end 2015, if it considered such
support was less predictable under the EU Bank Recovery and
Resolution Directive.


ISTITUTO CENTRALE: S&P Keeps 'BB+' CCR on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it kept its 'BB+'
long-term corporate credit ratings on Istituto Centrale Delle
Banche Popolari Italiane (ICBPI) and its core subsidiary CartaSi
on CreditWatch with negative implications, where they were
originally placed on June 24, 2015.  At the same time, S&P
affirmed the 'B' short-term rating.

S&P is keeping ICBPI on CreditWatch because of uncertainties
relating to the leverage structure of the sale and the pending
regulatory approval.

On June 19, 2015, the Italian regional banks that are
shareholders of ICBPI signed an agreement to sell 85.8% of the
company to a private equity consortium comprising Bain Capital,
Advent International, and Clessidra.  S&P understands that the
parties are currently exploring several options with regard to
the purchase amount and leverage structure, which will only be
finalized upon approval by local and European regulators.

In September 2015, the consortium successfully submitted an
official transaction approval request to the regulatory
authorities and S&P expects the regulator to provide feedback by
end-November.

The Italian regional banks are: Credito Valtellinese S.C., Banco
Popolare S.C., Banca Popolare di Vicenza ScpA., Veneto Banca
ScpA., Banca Popolare dell'Emilia Romagna S.C., Iccrea Holding
SpA., Banca Popolare di Cividale ScpA., UBI Banca ScpA., Banca
Popolare di Milano SCRL., Banca Sella Holding SpA., and Banca
Carige SpA.

S&P aims to resolve the CreditWatch status of ICBPI by end-2015,
once S&P receives further details of the final structure of the
transaction and the new shareholders' business plan for ICBPI.

Upon completion of S&P's review, it could lower the ratings on
ICBPI if it was to anticipate that its financial or business
profiles were set to deteriorate as a result of the transaction.

This could happen if S&P was to anticipate 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 was to expect
that ICBPI's solvency or liquidity position would significantly
deteriorate as a result of a more aggressive financial policy.


TEREOS: Moody's Lowers CFR to B1, Outlook Negative
-----------------------------------------------
Moody's Investors Service downgraded the corporate family rating
of Tereos to B1 from Ba2 and the senior unsecured rating of the
EUR500 million bond issued at Tereos Finance Group I, guaranteed
by Tereos to B1 from Ba3.  The probability of default rating
(PDR) of Tereos was downgraded to B1-PD from Ba2-PD.  The outlook
is negative.  The action concludes the review of the ratings
announced on Aug. 17, 2015.  The downgrade action reflects the
expectation by Moody's of sustainably weaker operating
performance and elevated leverage in very challenging market
conditions over the foreseeable future.

RATINGS RATIONALE

The rating review was prompted by the ongoing deterioration of
Tereos' generated EBITDA, which has accelerated over the last two
quarters and the deteriorating conditions on the sugar markets.
The downgrade reflects Moody's expectation that the recovery in
performance might be slow and that credit metrics will remain
much weaker in the current financial year than previously
expected.  The EBITDA fell to EUR376 million after the first
quarter 2015-2016 (on a Tereos reported basis and measured over
last 12 months) from EUR 453 million as of March 31, 2015, and
from EUR499 million as of Dec. 2014.  Though Moody's recognizes
that the currently weak earnings and credit metrics largely
reflect the cyclicality of sugar markets, recovering a stronger
operating performance is likely to take time even if the
transition to the new European sugar Regime implemented from
October 2017 onwards is likely to have positive implications for
Tereos' cash-flow generation.

While the management still expects to broadly maintain its
operating margin in the current financial year, Moody's believes
that this will be a very challenging target to achieve.  At this
point in time Moody's expects an EBITDA materially below 400
million in this financial year.  Subsequent improved performance
in the following financial year will be primarily dependent on a
recovery of sugar prices.  Though Tereos' capital expenditures
will tend to normalize in the current financial year to levels
close to depreciation and working capital inflows should mitigate
the lower funds from operations, the free cash-flow will be
limited if not negative over the next 12 to 18 months.

Gross leverage as adjusted by Moody's increased to 6.1x as of
March 2015 and Moody's expects the leverage to continue to
increase after weak first half results and to exceed 7x at the
end of the financial year 2015-2016.  In the following financial
year, even if sugar prices start to rebound, Moody's expects the
leverage to be likely to remain above 6.5x except in case of
dramatic increase in sugar prices.

In the other segments, ethanol prices have some recovery
potential in Brazil which could also favor better sugar prices on
the Brazilian market.  However in Brazil the weakening currency
will continue to constrain sugar prices expressed in dollars.

In addition, Tereos will face debt refinancing needs in
particular in the perimeter of Tereos Internacional.  The
downgrade to B1 also reflects that Tereos' debt maturity profile
and its financial structure do not provide significant
flexibility for a cyclical company.  In addition Tereos Brazilian
operations are exposed to a more volatile environment including
the current weakness of the Brazilian currency.

On the positive side, Moody's continues to consider Tereos as one
of the most efficient European sugar operators with operating
margins somewhat stronger than most peers for their respective
European sugar division.  Tereos should be one the few operators
that could be in a position to export outside of the EU after
2017.  Tereos is also likely to be able to buy beet at a lower
price than the currently fixed price for beet after the market
reform implemented in 2017 and possibly gain additional profits
from increased exports outside of the EU.  Nevertheless on
current market prices, the profitability of additional production
to be exported remains uncertain.

However the leverage will remain elevated in the near term though
largely reflecting the trough of the current cycle.  The rating
also reflects that Tereos' credit metrics are affected by
seasonality with inventories close to peak levels at financial
year-end.  Tereos indicates that its own adjusted leverage would
be 0.4x lower at year-end 2015 on a seasonally adjusted basis.
The cyclicality is also a key factor in the way Moody's assesses
Tereos' credit metrics.  At a time sugar prices are very low, the
B1 rating will have some tolerance for higher leverage in a
trough.  Moody's would expect Tereos' leverage to normally be
between 5 and 6.5 times for the major part of the cycle to be
consistent with the B1 rating category.  The downgrade also
reflects a low interest cover (EBITA to Interest expense).  This
ratio (1.3x in 2014-2015) will probably weaken towards 1 or below
in the current financial year, which will appear as weak for the
B1 category.  However Moody's recognizes that the current
profitability is constrained by the fixed beet prices under the
current regulation.

The bond rating was downgraded to B1 and is now in line with CFR.
The removal of the notching for the bond reflects that the bond
is primarily used to fund the European sugar assets and is
expected to be repaid primarily thanks to the cash-flow generated
by these assets.  The bond is guaranteed by the holding company
Tereos UCA, which does not guarantee the vast majority of the
debts of the group.  Moody's views The European sugar operations
as a stronger part of the business, considering the high level of
operating efficiency of Tereos in European sugar markets.
Moody's views comparatively Tereos Internacional businesses as
having less strong market positions and carrying a very high
level of leverage.  The leverage of Tereos Internacional was at
7.2x at year-end 2015.  While the bond remains subordinated to
the bank facilities financing the working capital of the European
sugar activities, Moody's analysis also reflects that the drawing
of these facilities is only seasonal.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the expectation that Tereos credit
metrics are going to be weakly positioned in the near term, with
an expected leverage as adjusted by Moody's in excess of 6.5x.,
over the next quarters.  Moody's expects that an improvement of
credit metrics will remain dependent on the evolution of sugar
prices while free cash-flow is going to be weak preventing debt
reduction over the near term.  It also reflects that the access
to bank financing and capital markets may be more challenging and
more expensive than in the past for Tereos Internacional.

WHAT COULD CHANGE THE RATING -- UP

Positive pressure on the rating would develop in case of
substantial rebound of sugar prices on the world market and in
Europe.  If Tereos can deleverage towards 5x on a sustainable
basis, positive pressure on the rating would be likely to
develop. In the near term, if the management appears on track to
deliver in this financial year an operating margin not materially
weaker than last year's, in turn stabilize leverage at around
6.5x, raise interest cover comfortably above 1 and execute timely
refinancing, the outlook could be stabilized.

WHAT COULD CHANGE THE RATING -- DOWN

Negative rating pressure could develop if the company's
profitability does not recover in the financial year 2016-2017,
for instance as a result of world market sugar prices remaining
at current levels and if the interest coverage ratio does not
recover to above 1.5x over time.  Failure to reduce leverage to
comfortably below 6x after the new European regulation is
implemented in October 2017 could also create negative pressure.
In the near term, negative pressure could also develop if Tereos
does not maintain an adequate liquidity.

The principal methodology used in these ratings was Global
Protein and Agriculture Industry published in May 2013.



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K A Z A K H S T A N
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EXIMBANK KAZAKHSTAN: Fitch Publishes B- LT Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has published Eximbank Kazakhstan's (Exim) Long-
term Issuer Default Ratings (IDRs) of 'B-'. The Outlooks are
Stable

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS, VIABILITY RATING AND SENIOR DEBT

Exim's IDRs are based on the bank's Viability Rating (VR), which
reflects a narrow franchise, weak asset quality, high reliance on
shareholders for funding and modest profitability. The ratings
also take into account currently solid capital ratios.

Exim is a part of a broader business of its shareholders, who are
also majority owners of one of the largest private electricity
companies in Kazakhstan, Central-Asian Electric-Power Corporation
(CAEPCo, BB-/Outlook Negative). Fitch does not explicitly factor
in support from CAEPCo into Exim's ratings, but the bank's credit
profile benefits from the shareholder's ability to originate
business for the bank on both sides of its balance sheet.

Exim's asset quality is assessed as weak. Although its reported
NPL ratio was low at 0.8% at end-2014, some 45% of gross loans
were restructured, about half of which is financing of real
estate assets, which generate little cash-flow at present.
Reserves covered only 46% of NPLs and restructured loans, while
unreserved part accounted for a high 1.6x of Fitch core capital
(FCC) at end-2014.

Additionally, there are some 5% of gross loans (0.2x FCC), which,
although technically performing and non-restructured, are
considered relatively high-risk due to weak collateral and/or
poor borrower financials. Further 16% of gross loans (0.8x FCC)
were provided to companies related to the energy business of Exim
shareholders, although these are secured by state contracts and
assessed by Fitch as moderate risk.

Profitability is weak with return on assets (ROA) and return on
equity (ROE) for 2014 of 0.5% and 2% respectively. The quality of
earnings is weak since around 80% of net income generated in 2014
was represented by accrued but not received interest income.
Fitch estimates that on a cash pre-impairment basis Exim incurred
a small loss in 2014. Profitability remained flat in 1H15, based
on the regulatory accounts, but cash generation from the loan
book has improved.

Capitalization is a positive rating factor with Tier 1 and total
capital ratios standing, respectively, at a high 22.3% and 26.1%
at end-1H15. Fitch estimates that capital buffer is sufficient
for the bank to fully cover unreserved high-risk restructured
loans with reserves without breaching the minimum regulatory
requirements.

Exim is predominantly funded by customer accounts, of which 61%
are from shareholders' companies and a further 13% are deposits
serving as collateral for certain loans -- both of these funding
sources are fairly stable. Liquidity buffer, net of potential
wholesale repayments, covered a reasonable 60% of non-related
customer accounts at end-1H15. Foreign currency liquidity is
tight, but the risk is mitigated by the absence of foreign
currency debt repayments over the next year.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS, VR AND SENIOR DEBT

Significant improvement of asset quality metrics while
maintaining solid capital position, and greater funding
diversification may lead to a rating upgrade. Weakening in the
liquidity profile and asset quality may lead to a rating
downgrade.

SUPPORT RATING and SUPPORT RATING FLOOR - KEY RATING DRIVERS AND
RATING SENSITIVITIES

The Support Rating '5' reflects Fitch's view that support from
the bank's private shareholder, although possible, cannot be
reliably assessed. The Support Rating Floor of 'No Floor' is
based on Exim's low systemic importance which is not expected to
be revised over the next year.

The rating actions are as follows:

  Long-term foreign and local currency IDRs: published at 'B-';
  Stable Outlook

  Short-term foreign-currency IDR: published at 'B'

  National Long-term rating: published at 'B+(kaz)'; Stable
  Outlook

  Viability Rating: published at 'b-'

  Support Rating: published at '5'

  Support Rating Floor: published at 'No Floor'

  Senior unsecured debt ratings: published at 'B-'/'B+(kaz)';
  Recovery Rating at 'RR4'



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N E T H E R L A N D S
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MOSCOW STARS: Fitch Withdraws 'BBsf' Ratings on 2 Debt Classes
--------------------------------------------------------------
Fitch Ratings has withdrawn Moscow Stars B.V.'s ratings, as
follows:

Class A (ISIN: XS0307297225): withdrawn at 'BBsf', Outlook Stable
Class B (ISIN: XS0307297811): withdrawn at 'BBsf', Outlook Stable

Moscow Stars B.V. is a securitization of mortgage loans
originated by CB Moskommertsbank.

KEY RATING DRIVERS

The withdrawal of the ratings follows the withdrawal of CB
Moskommertsbank's ratings in August 2015 and the downgrade of
Kazkommertsbank, the originator's parent company. The
originator's rating is an important part of Fitch's criteria for
rating securitizations in emerging markets. Without it, the
transaction's ratings cannot be maintained.

Before withdrawal, Fitch did not form an opinion on the notes'
ratings. Given the lack of available rating on the originator,
there was insufficient information for forming any opinion on the
notes' ratings.

RATING SENSITIVITIES

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

DUE DILIGENCE USAGE

Fitch has not checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. 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.

DATA ADEQUACY

Fitch has not checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. 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.



===========
N O R W A Y
===========


PETROLEUM GEO-SERVICES: Moody's Cuts CFR to B1, Outlook Negative
----------------------------------------------------------------
Moody's Investors Service has downgraded Petroleum Geo-Services
ASA's (PGS or the company) corporate family rating to B1 from Ba3
and probability of default rating (PDR) to B1-PD from Ba3-PD.
Concurrently, Moody's has also downgraded the ratings on the
senior notes and the senior secured bank credit facilities to B1
from Ba3.  The rating outlook remains negative.

RATINGS RATIONALE

The rating action reflects Moody's expectations that market
conditions in the seismic industry will remain challenging
throughout 2016 with limited visibility on the timing of a
potential market recovery.

Because crude prices are likely to remain volatile and rise
minimally through 2017, Moody's expects upstream offshore
investments to continue at a reduced level as oil producers
re-align their respective cost structures to manage through a
protracted period of low and uncertain commodity prices.  Most
producers will defer high-cost exploration, appraisal and early-
stage development projects.

As a result, Moody's does not anticipate the company's credit
metrics to stabilize in the near term.  PGS's leverage as
measured by Debt/EBITDA minus multi-client amortization was 4.2x
as of
June 30, 2015, but could rise above 6.0x by the end of year with
limited visibility on deleveraging prospects in 2016.

Furthermore, Moody's expects the company to continue to generate
negative free cash flow in 2015 and 2016.  Capital expenditures
will spike in 2016 due to the delivery of the last two Ramform
Titan-class vessels but remaining yard payments will be fully
funded by committed export credit facilities.

Moody's notes that the company has liquidity of approximately
US$508 million as of June 30, 2015 including cash balances of
approximately US$58 million and US$450 million available under
its revolving credit facility (RCF) maturing in 2018.  However,
Moody's cautions that the company's ability to access its RCF
could become increasingly constrained as covenant headroom under
the RCF is likely to tighten in the coming quarters given the
expected increase in leverage.  That being said, the B1 CFR
assumes that the company will be able to obtain a waiver of any
breach and/or reset covenants if necessary.

The ratings also incorporate PGS's size and scale, its leading
market position, its geographic diversification, and its high
quality fleet.  Furthermore, the rating also reflects the
company's strong balance sheet and continuous prudent financial
policies which have led to a manageable debt maturity profile
with no material debt maturities before the second half of 2018.

RATING 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

A downgrade of the CFR could occur in the event of further
deterioration in operating performance, resulting in Moody's
expectation that leverage will remain sustainably over 6.0x
and/or weakening liquidity position.

The outlook could be stabilized following improvement in market
conditions and operating performance.  Over time, the rating
could be upgraded if leverage falls below 5.0x on a sustained
basis and the company maintains a solid liquidity profile.  Any
potential upgrade would also include an assessment of market
conditions.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in
December 2014.

Headquartered in Norway, Petroleum Geo-Services ASA is a
technologically leading oilfield services company specializing in
reservoir and geophysical services, including seismic data
acquisition, processing and interpretation, and field evaluation.
PGS maintains an extensive multi-client seismic data library.
For the year ended Dec. 31, 2014, PGS reported revenues of
US$1.45 billion.



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


CYFROWY POLSAT: Moody's Affirms Ba3 CFR, Outlook Positive
---------------------------------------------------------
Moody's Investors Service has affirmed Cyfrowy Polsat S.A.'s Ba3
corporate family rating and Ba3-PD probability of default rating
(PDR), and changed the outlook to positive from stable.

The Ba3 CFR, Ba3-PD PDR and B2 ratings on the EUR542.5 million
and USD500 million senior subordinated notes due in 2020 issued
by Eileme 2 AB (publ), a subsidiary of Polsat that indirectly
owns 100% of Polkomtel, remain unchanged with a stable outlook.

"Changing the outlook on Polsat's ratings to positive primarily
reflects the benefits the company derived from refinancing most
of its debt through a cheaper Polish zloty-denominated facility",
says Ivan Palacios, a Moody's Vice President, Senior Credit
Officer and lead analyst for Polsat.  "The change in outlook to
positive also reflects the expected improvement in credit metrics
over the next 12 to 18 months to levels that could support an
upgrade to Ba2", added Mr Palacios.

The rating and outlook on Eileme 2 AB remain unchanged after this
refinancing exercise, as its leverage ratios remain relatively
high for the Ba3 CFR and most of the benefits from this
refinancing will not be visible within the Eileme 2 AB credit
pool until January 2016, when its EUR542.5 million and USD500
million senior subordinated notes due in 2020 are expected to be
prepaid, and the rating at Eileme 2 AB will be withdrawn.

RATINGS RATIONALE

On Sept. 21, 2015, Polsat announced the successful refinancing of
its and Eileme 2 AB's bank facilities with a new Polish zloty-
denominated facility that will also allow the repayment of Eileme
2 AB's high yield notes in 2016.  The change in Polsat's outlook
to positive primarily reflects the benefits associated with the
new facility such as (1) the reduction in foreign currency risk;
(2) the lower cost of debt; (3) the extension of the debt
maturity profile; and (4) the expected simplification of the
group's financing structure.

After the refinancing and the planned repayment of Eileme 2 AB's
EUR and USD notes in January 2016, the group's structure will be
simplified as Polsat and Eileme 2 AB will become a unified credit
pool.  In addition, all the debt will be denominated in Polish
zloty, the currency in which the vast majority of the group's
cash flows are generated.  This will substantially reduce the
group's foreign currency risk, since prior to this refinancing,
around one third of the group's debt was foreign currency
denominated.  The cheaper cost of debt will lead to annual
savings of around PLN380 million, freeing up cash flows for other
uses, such as accelerating debt repayments or increasing capex,
while the debt maturity wall has been pushed by two years, to
2020 from 2018.

The positive outlook also reflects Moody's expectation that
Polsat's credit metrics will continue to improve over the medium
term, driven by strong cash flow generation that will be used to
reduce debt.  Moody's notes that the company has a publicly
stated target of reducing net debt/EBITDA (as reported) to below
2.5x, from the current 3.0x.  Polsat's gross debt/EBITDA (as
adjusted by Moody's) for the LTM ended June 2015 stood at 3.9x,
while its RCF/debt ratio stood at 19.9%.  Over the next 12
months, Moody's expects these metrics to improve, possibly
reaching the triggers for an upgrade of the rating to Ba2 (gross
debt/EBITDA below 3.5x and RCF/debt above 20%).

Despite the positive considerations derived from the refinancing
of the group's debt, Moody's also notes that the group is facing
some challenges that could postpone the materialisation of a
rating upgrade.  The operating performance of the mobile business
is suffering from a very tough competitive environment and margin
pressure derived from the increase in data costs owing to the
exponential growth in traffic.  Capex as a percentage of sales is
relatively low compared with the European average, and therefore
the group may have to catch up on investments over the next two
to three years.  Finally, Moody's expects that over time, the
group will try to reach a controlling position in Midas.  Moody's
assumes that any potential acquisition of a controlling stake in
Midas would be funded conservatively, such that credit metrics do
not weaken from current levels.

WHAT COULD CHANGE THE RATING -- UP/DOWN

Upward pressure on the rating would require the group to maintain
its current profitability as well as strong cash flow generation.
Metrics that would support upward pressure on the rating are
adjusted debt/EBITDA sustainably below 3.5x and RCF/debt above
20%.

Downward pressure on the rating could be exerted as a result of a
material weakening in the group's operating performance such that
debt/EBITDA increases towards 4.5x.  A weakening in the company's
liquidity profile (including a reduction in headroom under
financial covenants) could also exert downward pressure on the
rating.

The principal methodology used in these ratings was Global
Telecommunications Industry published in December 2010.

The Cyfrowy Polsat Group (Polsat) is a leading multimedia company
providing integrated media and telecommunication services in
Poland.  The group combines Cyfrowy Polsat, the largest Polish
pay TV direct-to-home (DTH) provider, and TV Polsat, the largest
free-to-air TV broadcaster with 26 thematic channels, with
Polkomtel, one of the largest mobile telecommunications operators
in Poland. In 2014, the group reported revenues of PLN7.4 billion
and EBITDA of PLN2.7 billion.


JSW: Likely to Reach Debt Restructuring Deal with Creditors
-----------------------------------------------------------
Konrad Krasuski at Bloomberg News reports that JSW may a reach
deal with creditors, suspending early repayment of debt through
the end of November.

Creditors have initially accepted details of agreement, Bloomberg
notes.

The standstill will give JSW time to negotiate terms of debt
restructuring, with plans to replace existing liabilities with a
new 5-year zloty loan, Bloomberg says.

According to Bloomberg, under the probable agreement, the company
will gradually repay part of its liabilities owed to ING Bank
Slaski, the only creditor that demanded early repayment of JSW
debt.

JSW spokeswoman Katarzyna Jablonska-Bajer said by e-mail that the
company is in "intense talks" on debt restructuring, including a
possible standstill deal, with PKO Bank Polski, BGK, ING Bank
Slaski and fund owned by PZU, Bloomberg relates.

JSW is a Polish miner of coking coal.



===============
P O R T U G A L
===============


METRO DE LISBOA: S&P Raises ICR to 'BB+', Outlook Stable
--------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term issuer
credit ratings on Portuguese subway operator Metropolitano de
Lisboa E.P. (Metro) to 'BB+' from 'BB'.  The outlook is stable.

The upgrade follows S&P's similar action on the Republic of
Portugal on Sept. 18, 2015.

S&P equalizes its long-term rating on Metro with that on
Portugal, based on S&P's view of the almost certain likelihood
that Metro would receive timely and sufficient extraordinary
support from the Portuguese government in the event of financial
distress.

S&P regards Metro as a government-related entity (GRE) under
S&P's criteria.  S&P bases its assessment of the likelihood of
government support on its view of Metro's critical role for and
integral link with Portugal, the company's 100% owner.

S&P believes Metro's role for Portugal is critical because Metro
is key in implementing the government's policy of fostering urban
mobility in the capital city of Lisbon.  Moreover, most of
Metro's debt is guaranteed by the government and contains cross-
default clauses regarding all of the company's financial
obligations.

S&P thinks that Metro has an integral link with the government.
S&P continues to see Metro as an extension of the Portuguese
government, in charge of managing and enlarging the subway
network in the Lisbon area, in strict accordance with government
plans.

S&P assesses Metro's stand-alone credit profile (SACP) at 'cc'.
S&P assigns a 'cc' SACP to an issuer when it expects default to
be a virtual certainty, unless it receives extraordinary support
from a parent or government.

S&P views Metro's liquidity as very weak based on the latest
information available to S&P.  In 2015, Metro must honor
approximately EUR190 million in debt service.  Its cash holdings
will be about EUR6 million monthly, by S&P's estimate.  S&P
expects positive nonfinancial cash flows of EUR5 million and
government capital injections of roughly EUR190 million over
2015.

The stable outlook on Metro reflects that on Portugal.  S&P
expects Metro's long-term issuer credit rating will move in
tandem with that on Portugal.

Although highly unlikely at this stage, S&P could downgrade Metro
if it revised downward S&P's view of the likelihood of
extraordinary support from the Portuguese government.  In
particular, this could happen if S&P considered that the
Portuguese government's decision to tender Metro's operations to
a private contractor could diminish its commitment to continue
supporting Metro's debt service through timely and sufficient
capital injections.

RATINGS LIST

                                Ratings
                                To            From
Metropolitano de Lisboa E.P.
Issuer credit rating
  Foreign and Local Currency    BB+/Stable/--         BB/Pos./--


OCIDENTAL DE VIDA: S&P Raises CCR Rating to 'BB+', Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BB+' from 'BB' its
long-term counterparty credit and insurer financial strength
ratings on Portuguese insurer Ocidental Companhia Portuguesa de
Seguros de Vida S.A. (OCV).  The outlook is stable.

The upgrade follows the sovereign rating action on Portugal on
Sept. 18, 2015.

The ratings on OCV are now in line with its 'bb+' indicative
stand-alone credit profile (S&P's assessment before the impact of
sovereign risk).

S&P regards OCV as a strategically important subsidiary of
Belgium-based insurance group Ageas (core operating entities
rated 'A-/Positive/--').  Although this group status would
normally translate into rating uplift of up to three notches, the
extent to which S&P can recognize group support in the ratings is
constrained by the local currency sovereign credit rating on
Portugal.  As a result, the 'BB+' rating on OCV does not benefit
from uplift for group support.

The stable outlook on OCV mirrors that on Portugal, reflecting
the company's significant exposure to Portuguese assets.  Any
rating action on the sovereign could lead to a similar action on
OCV.

S&P might lower the ratings on OCV if it was to lower its ratings
on Portugal.

S&P might raise the ratings on OCV if S&P was to raise its
ratings on Portugal, as the ratings would start to benefit from
group support owing to OCV's status as a strategically important
subsidiary of Ageas.


PORTUGUESE BANKS: S&P Takes Rating Actions on 5 Institutions
------------------------------------------------------------
Standard & Poor's Ratings Services on Sept. 22 said it took
various rating actions Portuguese banks.  Specifically, S&P:

   -- Raised the long-term ratings on Banco Santander Totta S.A.
      to 'BB+' from 'BB'.  The outlook is stable.

   -- Revised the outlook to positive from stable on Caixa Geral
      de Depositos S.A. (CGD) and affirmed the 'BB-/B' ratings.

   -- Revised the outlook to positive from stable on Banco
      Comercial Portugues S.A. (Millennium bcp) and affirmed the
      'B+/B' ratings.

   -- Affirmed the 'BB-/B' ratings on Banco BPI S.A. (BPI) and
      its core subsidiary Banco Portugues de Investimento S.A.
      The outlook remains negative.

The rating actions reflect S&P's view that the firming economy is
becoming more supportive of banks' domestic performance.  They
also reflect S&P's assumption that improving investor confidence
in the sovereign and its lower borrowing costs should gradually
benefit banks' funding profiles.

S&P expects Portuguese real GDP to expand at an average annual
rate of 1.8% in 2015-2017.  Improving employment and rising
disposable income support Portuguese domestic demand.
Unemployment fell to 11.9% in June 2015 from the 17.5% peak in
January 2013.  This and stronger exports are driving the economic
recovery.  Moreover, the expansionary monetary policy of the
European Central Bank (ECB) is also supportive of the economic
consolidation.  S&P has therefore improved its assessment of the
economic risks faced by banks in Portugal.

In this positive economic context, S&P anticipates that banks'
credit losses will decline from 2011-2014 peak levels of more
than 2% of gross loans.  However, S&P expects provisions to stay
above normalized charges this year and next due to corporates'
still-weak financial profiles.  In this context, S&P's assessment
of banks' capital cushions also benefits from our view of the
lower unexpected losses that banks could face in Portugal.

At the same time, S&P believes that the constraints on banks'
access to wholesale funding could gradually loosen over the
medium term.  Investor sentiment toward the sovereign continues
to improve.  This, together with the ECB's accommodative monetary
policy, should help the government to maintain sustainable
borrowing costs.  This environment should also facilitate, in
S&P's view, banks' access to capital markets and reduce their
wholesale funding costs.  Over the medium term, S&P expects banks
to diversify their long-term financing, which is still dependent
on ECB resources.  Therefore, S&P now sees a positive trend for
the industry risks faced by banks in Portugal.

As a consequence of S&P's improved assessment of economic risks
and the positive prospects for industry risks, it has revised its
outlook on CGD and Millenium bcp to positive from stable.  For
Millenium bcp, S&P's outlook also reflects its view of the
ongoing strengthening of the bank's solvency position.

S&P has maintained the negative outlook on BPI because S&P
remains cautious regarding the possible negative implications on
the bank's business position and risk profile from potential
instability in its shareholding structure and material exposure
to Angola.  These near- to medium-term risks outweigh the longer-
term benefits of the economic recovery and the potential
improvement of the industry's funding profile.

The recent upgrade of Portugal is the key reason for S&P's
upgrade of Totta.  S&P designates the bank as a "highly
strategic" subsidiary of Banco Santander S.A. and its ratings are
now three notches below the long-term rating on its parent.  This
is because the long-term rating on Totta is constrained by the
sovereign credit rating on Portugal.

S&P's stand-alone credit profile (SACP) assessments of the banks
remain unchanged.  At the same time, the 'BB-' long-term rating
on CGD continues to factor in S&P's view of its government-
related entity (GRE) status.  S&P considers that the likelihood
remains very high that the bank would receive timely and
sufficient support from the government if needed.  The 'B+'
issuer credit rating on Millenium bcp also includes one notch of
uplift for potential extraordinary government support.

OUTLOOK

Banco Santander Totta S.A.

The stable outlook on Totta mirrors that on Portugal.  S&P
considers Totta to be "highly strategic" for its parent, Banco
Santander S.A.  Under S&P's criteria, the long-term rating on
this type of subsidiary is one notch below that on the parent.
However, the uplift for group support cannot lead to the
subsidiary being rated above its sovereign.  For this reason, S&P
maintains the rating on Totta at the level of the sovereign.

As a result of this, and given S&P's ratings on its parent, it
could raise the ratings on Totta if S&P was to take a similar
action on the sovereign.

Likewise, S&P could revise the outlook to stable or lower the
ratings on Totta following a similar action on the sovereign.

Caixa Geral de Depositos S.A.

The positive outlook on CGD reflects the prospects of easing
industry risks faced by the Portuguese banking system.  In
particular, S&P expects banks' funding profiles to benefit from
the improving investor confidence in the sovereign and its lower
borrowing costs.  This should support banks' access to capital
markets, reduce their cost of wholesale funding, and diversify
their sources of long-term financing.

An upgrade of CGD would also depend on the bank continuing its
profitability recovery and asset quality stabilization.  S&P
anticipates that the bank will be close to breaking even in 2015
and that its earnings performance will continue to improve in
2016.  Declining credit losses and lower cost of customer
deposits will be the key drivers for improving profitability, in
S&P's view.  S&P also forecasts that CGD's stock of nonperforming
assets will peak in 2015.

S&P could revise the outlook back to stable if the lower
sovereign funding costs and improved investor confidence do not
translate into benefits for the funding profile of the overall
Portuguese financial system.  Similarly, S&P could also revise
the outlook to stable if CGD underperforms the system average in
terms of the recovery in profitability and asset quality.

Banco Comercial Portugues S.A.

The positive outlook on Millenium bcp reflects:

   -- The ongoing strengthening of the bank's capital base, at a
      time when the country's economic risk is diminishing.  S&P
      now believes this could result in its risk-adjusted capital
      (RAC) ratio exceeding 5% over the next 12-18 months.
      Incorporating S&P's improved assessment of economic risks,
      Millenium bcp's RAC ratio was 4.4% at December 2014 on a
      pro forma basis;

   -- Prospects of the bank continuing to reduce its dependence
      on ECB funding (net usage of which was EUR6.1 billion on
      June 30, 2015) while keeping its funding profile weighted
      toward long-term resources; and

   -- The potential for a less-risky operating environment in
      Portugal as banks gradually normalize their funding.

The above factors outweigh the possible negative impact on the
ratings from the potential removal of the notch of uplift
extraordinary government support at the end of 2015 as Portugal
fully implements the new bank resolution regime.

Although this is not S&P's base-case scenario, it could
contemplate revising the outlook back to stable if the bank
proves unable to continue strengthening its capital and
sustaining it at a level that S&P would consider moderate.  S&P
could also revise the outlook to stable if it does not reduce its
dependence on ECB funding or if it meaningfully increases its
recourse to short-term funding, failing to improve its liquidity.
Finally, S&P would consider an outlook revision to stable if it
sees that the lower sovereign funding costs and improved investor
confidence are not translating into funding benefits for the
overall Portuguese financial system.

Banco BPI S.A.

The negative outlook on BPI reflects the risk of meaningful
changes of the shareholder structure.  S&P believes that this
might either lead to significant strategy changes or an impasse,
either of which could eventually have negative implications for
our view of BPI's relative business position.

Also contributing to the negative outlook is the potential for
BPI's business position or risk profile to weaken given the
economic slowdown in Angola and the measures it may take to
comply with stricter regulatory requirements related to its
Angolan subsidiary, BFA.  This could be the case, for example, if
BPI loses control over BFA or the contribution to group's profits
coming from Angola falls materially, resulting in a worse risk
profile or lower diversification compared with BPI's peers.

S&P might revise the outlook to stable if it anticipates that BPI
would be able to comply with stricter regulatory rules related to
BFA while strengthening its capital position and maintaining an
adequate risk profile.  S&P could also revise the outlook to
stable if it believes that BPI is maintaining a cohesive,
supportive shareholding structure and a strategy that entails
contained business and financial risks.

BICRA SCORE SNAPSHOT*

Portugal                         To                   From

BICRA Group                      7                    7

Economic risk                   6                    7
   Economic resilience           Intermediate Risk    High Risk
   Economic imbalances           High Risk            High Risk
   Credit risk in the economy    High Risk            High Risk
  Trend                          Stable               Positive

Industry risk                   7                    7
   Institutional framework       Intermediate Risk
Intermediate Risk
   Competitive dynamics          High Risk            High Risk
   Systemwide funding            Very High Risk       Very High
Risk
  Trend                          Positive             Stable

*Banking Industry Country Risk Assessment (BICRA) economic risk
and industry risk scores are on a scale from 1 (lowest risk) to
10 (highest risk).

RATINGS LIST

Upgraded; Outlook Action; Ratings Affirmed
                                   To                 From
Banco Santander Totta S.A.
Counterparty Credit Rating        BB+/Stable/B       BB/Pos./B

Ratings Affirmed; Outlook Action
                                   To            From
Caixa Geral de Depositos S.A.
Counterparty Credit Rating        BB-/Pos./B    BB-/Stable/B

Banco Comercial Portugues S.A.
Counterparty Credit Rating        B+/Pos./B     B+/Stable/B

Ratings Affirmed

Banco BPI S.A.
Banco Portugues de Investimento S.A.
Counterparty Credit Rating             BB-/Neg./B

N.B. This list does not include all ratings affected.



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


EXPRESS-VOLGA JSCB: DIA to Oversee Rehabilitation Measure
---------------------------------------------------------
The Bank of Russia on Sept. 21 approved amendments to the plan
for participation of the state corporation Deposit Insurance
Agency in bankruptcy prevention of JSC JSCB EXPRESS-VOLGA.

The Agency held a tender to select an investor who proposed the
most favorable conditions for bankruptcy prevention financing of
JSC JSCB EXPRESS-VOLGA.  Resulting the tender PJSC Sovcombank has
been selected.

The participation plan provides taking over JSC JSCB EXPRESS-
VOLGA by the Investor, as well as its reorganization through
merger with PJSC Sovcombank.


RUSSIA: Fitch Says Tariff Freezes May Prompt Utilities Capex Cuts
-----------------------------------------------------------------
Fitch Ratings says that budget deficits and rising inflation may
require the Russian government to become more prudent with the
spending of state-owned utilities & transport companies, which
could result in lower subsidies and tariffs. While this is likely
to prompt the companies to further substantially cut capex, we
believe capex adjustments cannot be used as a long-term
sustainable measure.

Consistently high inflation compared with previous years may
result in the government deciding to reduce or freeze some of the
natural monopolies' tariffs, as was the case in 2014-2015. Fitch
expects CPI to increase to 11.2% in 2015, which is substantially
higher than 2012-2014, when it was below 8%. Utilities and
transport tariff growth contribute a substantial part of
inflation in Russia and tariff freezes could be used to contain
CPI at acceptable levels.

Fitch expects the impact on thermal generators to be limited, as
the pricing parameters for capacity supply agreements, which in
most cases provide the largest share of the companies' EBITDA,
have not been changed. However, the credit metrics of network
utilities and JSC Russian Railways (RZD; BBB-/Negative) may come
under pressure if the companies fail to implement rigorous cost
containment and cut capex.

"Many Russian utilities and transport companies cut their capex
in 2014. Open Joint Stock Company Federal Grid Company of Unified
Energy System (BBB-/Negative) plans to cut its capex by as much
as 30% (RUB163bn) in 2015-2019, while OJSC Moscow United Electric
Grid Company (BB+/Stable) is planning to cut its capital
expenditures by approximately 17% in 2015. We believe that RZD
may postpone some of its capex projects although part of its
spending program is dictated by the needs of the state. Therefore
we anticipate state support to be available to the company to
fund large-scale projects and loss-making passenger
transportation, as was the case in the past. However, we believe
that intensifying challenging market conditions may limit the
scale of state support, increasing the importance of implementing
efficiency measures."

"We believe the Russian utilities still have some headroom to
further cut or delay expansionary capex in the short term,
especially in light of Russia's economic downturn when
electricity consumption is much lower than previously expected.
The level of maintenance capex is estimated by the companies at a
range of 20%-40% from total capex programs, while the remaining
portion is expansion and/or modernisation capex. However, in the
medium term, Russian utilities will need to continue investing to
replace and modernize what are in many cases highly depreciated
assets, which needs to be covered by either adequate tariffs or
attractive funding from the market."

"We also consider there is significant potential for improving
operational efficiencies at all of the Russian state-owned
utilities and transport companies. The current state of the
Russian economy may make it a focus for the government and the
management of companies, which would be positive for credit
profiles.

"Our ratings on state-owned utilities and transport companies
incorporate state support. If the tangible state support,
including subsidies, equity injections and a favorable tariff
policy, is substantially reduced and the state-owned companies
cannot exercise enough flexibility to adjust their capex plans
imposed by the state, we may reconsider our rating approach with
regard to state support."



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


ABENGOA SA: HSBC Withdraws Support for Planned Capital Increase
---------------------------------------------------------------
Katie Linsell at Bloomberg News reports that HSBC Holdings Plc
withdrew support for the company's planned capital increase.

According to Bloomberg, Spanish news website El Confidencial on
Sept. 21 reported that HSBC retracted an agreement to back
EUR120 million of the company's EUR650 million share sale.

HSBC, Banco Santander SA and Credit Agricole SA had agreed to be
standby underwriters of the increase last month, Bloomberg
relays, citing people familiar with the matter.

Abengoa declined to comment on El Confidencial's article,
Bloomberg notes.

The company is struggling to convince investors that its plan to
raise capital and sell assets will succeed after forecasting that
free cash-flow will be lower than previously estimated, Bloomberg
discloses.

Navann Ty, a credit analyst at Bank of America Corp., who has an
underweight recommendation on the bonds, said the share sale is
critical for Abengoa's near-term liquidity, Bloomberg relates.

Mr. Ty, as cited by Bloomberg, said in a note to investors on
Sept. 21, "If working capital deteriorates and the capital
increase is not executed, liquidity could become tight" as soon
as this year.  "Irrespective of the capital increase, which would
be positive for near-term liquidity, we think Abengoa may look to
engage in a more radical plan."

While Abengoa's focus is on the share sale, it may also consider
a debt restructuring in the future, Bloomberg states.

Abengoa is discussing a variety of options with financial
advisory firm Lazard Ltd. and banks, Bloomberg says, citing
people familiar with the matter.

Abengoa SA is a Spanish renewable-energy company.


PESCANOVA: To Face Liquidation if Shareholders Don't Back Bailout
-----------------------------------------------------------------
Undercurrent News reports that Pescanova could be liquidated if
shareholders do not back the creditors' restructuring proposal
next week, La Voz de Galicia reports.

During the shareholder meeting that will be held in Pontevedra,
Spain, on Sept. 29, Pescanova's shareholders will decide whether
to reduce its stake in the new company emerging after
restructuring 'Nueva Pescanova' to 5% and give creditor banks the
control of the Spanish multinational, or to raise their share to
20%, according to Undercurrent News.

If the latter option is supported by a majority of shareholders,
creditor banks will assure that this cannot be executed, leading
the judge to order the liquidation of the company, the report
notes.

Pescanova's board has provided extensive legal documentation to
the Spanish financial regulator CNMV to justify the legality of
the proposed alternative, and convince banks that it does not
alter the content of the bailout plan agreed by creditors, the
report relates.

However, creditors are not expected to accept the alternative
plan, as it lacks the financial capacity to restructure the
company, they said previously, the report adds.



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


WTA-X TRAVEL: Tour Operator Goes Insolvent
------------------------------------------
fvw.com reports that tour operator WTA-X Travel is insolvent and
the financial impact could add up to about EUR1 million,
according to the company's insurance agent.

fvw.com relates that Turkish hoteliers last week refused to
accept the company's customers after not being paid for booked
accommodation while several hundred customers were apparently
stranded in Spain.

According to the report, WTA-X Travel said that booked holidays
for departures up to September 20 "can take place fully" in
agreement with its insurance company, but it could not exclude
that customers might have to pay airport transfers or hotel
accommodation, which had already been paid for, in cash again at
the destination and then claim it back from the company's
insurers.



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


FERREXPO PLC: Says Not Seeking Restructuring Advisor
----------------------------------------------------
Michael Turner at Reuters reports that Ferrexpo plc says claims
it is seeking a restructuring advisor are "completely untrue".

Over the weekend, the UK's Sunday Times reported that the company
was considering hiring an external adviser to help with a debt
restructuring, though on Sept. 21 a Ferrexpo spokesperson told
IFR that this claim was false, Reuters relates.

"It is completely untrue, we are not seeking financial advisors
for a debt restructuring," the spokesperson, as cited by Reuters,
said, adding that the firm is not seeking to restructure debt.

According to Reuters, Sberbank analysts said on Sept. 21 that
they see the likelihood of Ferrexpo launching a debt
restructuring as "rather high".

The UK-listed metals company ran into trouble late last week when
Ukraine's Bank Finance and Credit -- a related party that held
around US$174 million of Ferrexpo's US$280 million cash pile --
was declared insolvent by the National Bank of Ukraine, Reuters
recounts.

Ferrexpo plc is a Swiss-based iron-ore producer operating in
Ukraine.  It is listed on the London Stock Exchange.

As reported by the Troubled Company Reporter-Europe on July 15,
2015, Fitch Ratings downgraded Ferrexpo plc's Long-term and
Short-term Issuer Default Ratings (IDR) to 'RD' (Restricted
Default) from 'C'.  The downgrade to 'RD' follows Ferrexpo's
successful completion of its exchange offer and consent
solicitation in respect of its 2016 bonds.  Subsequently, Fitch
assigned the company a Long-term IDR of 'CCC' and Short-term IDR
of 'C'.  Fitch said the Outlook on the Long-term IDR is Stable.

On July 15, 2015, The Troubled Company Reporter-Europe reported
that Standard & Poor's Ratings Services said it raised its long-
term corporate credit rating on Ukraine-based iron ore producer
Ferrexpo PLC to 'CCC+' from 'SD' (selective default).  S&P said
The outlook is negative.



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


BRIT LIMITED: Fitch Affirms 'BB' Rating on Subordinated Notes
-------------------------------------------------------------
Fitch Ratings has affirmed Brit Limited's Long-term Issuer
Default Rating (IDR) at 'BBB' with a Stable Outlook and its
subordinated notes at 'BB'.

KEY RATING DRIVERS

The ratings are constrained by Fitch's view of the financial
strength of its owner, Canadian financial services group, Fairfax
Financial Holdings Limited (Fairfax). This reflects the risk that
if the Fairfax group comes under financial stress, it could seek
to extract capital or other resources from Brit to support the
rest of the group.

Fitch believes that the financial profile of Brit is sound,
supported by strong risk-adjusted capitalization and underlying
earnings. At end-2014, Brit's risk-adjusted capitalization was
'Strong' as measured by Fitch's Prism Factor Based Model,
although the ratio of net written premiums to equity of 1.2x was
high relative to Lloyd's market peers.

Following the acquisition by Fairfax, Brit has begun to de-risk
its investment portfolio, which Fitch views positively. The
company has begun to shift away from structured and corporate
debt in favor of government bonds and cash. At end-1H15
government debt increased to 45.7% of total investments (end-
2014: 19.6%) and corporate debt was reduced to 11.3% (end-2014:
28.9%).

In recent years Brit has reduced its exposure to the reinsurance
business, which is being impacted by a softening market, to focus
on short tail direct insurance and profitable specialty lines.
Brit has achieved consistently strong underwriting results with a
combined ratio of less than 100% for each of the last five years,
and a Fitch-calculated three-year average combined ratio of
88.5%, assisted by a continued benign catastrophe environment.

Brit is a medium-sized non-life insurer, but the largest insurer
to write exclusively through Lloyd's of London (Lloyd's) and its
presence in the Lloyd's market is viewed positively for the
rating.

Fairfax is a Canadian insurance holding company whose largest
subsidiaries operate primarily in the US and Canada, but also has
a significant presence in Asia and Latin America. At end-December
2014 Fairfax had total assets of GBP23bn and gross written
premiums of GBP4.5bn, compared with Brit's total assets of
GBP3.8bn and premiums of GBP1.3bn.

RATING SENSITIVITIES

The key rating trigger that could result in an upgrade of Brit
would be an improvement, in Fitch's view, of the Fairfax group's
financial strength. Similarly, deterioration in the financial
strength of the Fairfax group could result in a downgrade of
Brit.


HUELIN-RENOUF: Restructuring Law Speeds Up Liquidation
------------------------------------------------------
Guernsey Press reports that the winding up of Huelin-Renouf is
happening more quickly through an innovation in pan-island
restructuring law.

Law firm Ogier and liquidator Grant Thornton applied to the
courts in Guernsey and Jersey to pool the liquidations of the
long-established shipping line, which collapsed in August 2013
after 80 years of operating between the islands and the UK,
Guernsey Press relates.

Pooling would mean the Jersey and Guernsey companies would be
treated as one for the purpose of distributing a dividend to
creditors and the courts' approval means that a dividend to
creditors in the islands is due to be paid before the end of the
calendar year, Guernsey Press notes.

According to Guernsey Press, the pooling order means that once
the liquidators have concluded adjudication of claims, employees
will receive 100% of the priority element of their claims, which
Jamie Toynton from Grant Thornton said would not otherwise have
been possible had the Guernsey company been treated separately
from the Jersey company.

Huelin-Renoufis a cross-Channel shipping line.


INTEROUTE COMMUNICATIONS: S&P Assigns Preliminary 'B+' CCR
----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its
preliminary 'B+' long-term corporate credit rating to U.K.-based
European information communication technology and cloud computing
company, Interoute Communications Holdings Ltd.  The outlook is
stable.

At the same time, S&P assigned its preliminary 'B+' issue rating
to the company's proposed EUR590 million senior secured notes.

The rating reflects S&P's view of Interoute's business risk
profile as "fair" and its financial risk profile as "aggressive."

Interoute is planning to issue EUR590 million of senior secured
notes, which, along with EUR75 million of funds from its
shareholders, will be used to fund the acquisition of European
managed services provider, Easynet, and related integration
costs.

The shareholder loans will be subordinated to all the debt and to
mature six months after the company's senior debt.

S&P's assessment of Interoute's business risk profile is
supported by its high level of recurring revenue through long
contractual relationships with both telecom providers and
enterprises.  In S&P's view, these contractual relationships,
along with relatively meaningful switching costs -- notably in
Interoute's enterprise segment -- result in a very low churn rate
for Interoute and provide relatively high visibility for its
future revenue streams. Additionally, S&P thinks that Interoute's
strategy of leveraging its own Pan-European fiber network within
its enterprise segment creates a key competitive advantage, as
well as a differentiating factor with peers, which enables it to
attract big international enterprises, despite operating in a
highly competitive and fragmented space.  Further supports for
S&P's assessment of Interoute's business risk profile include its
lack of exposure to legacy declining fixed line voice revenues;
its well invested fiber network; solid growth prospects for cloud
based managed services; and a relatively predictable and
regulated pricing for leasing of the last mile (telecom network
chain that physically reaches the customer's premises) from local
incumbents in Europe.

"Our assessment is constrained, however, by Interoute's
operations in a highly competitive environment in the network
segment which leads to pricing pressure constraints, despite the
continued growth in demand for data capacity.  Furthermore,
Interoute's scale is a key weakness as it competes in both the
enterprise and network segments with many players that benefit
from a larger scale, more meaningful resources, and well known
market brands (Microsoft, Amazon, BT, Verizon, etc.).  Finally, a
key constraint, in our view, is Interoute's underutilized
network, and lack of meaningful operating leverage in its
enterprise segment, which result in relatively low EBITDA margins
compared to some of its peers, and limited FOCF generation.  We
therefore assess Interoute at the lower range of "fair" in
comparison with rated peers," S&P said.

"Our assessment of Interoute's financial risk profile reflects
our forecast that the company's adjusted leverage will be
slightly less than 4.5x in 2015, pro forma for the full year
consolidation of Easynet.  By 2017, we forecast that adjusted
leverage will decline to less than 4x due to continued revenue
growth and the positive benefits of cost savings from the
integration with Easynet.  While we see some risks related to the
integration given the scale of the acquisition, we assess the
majority of the company's planned synergies as achievable.  This
is because they are mainly related to savings on duplicated
positions and offshoring of employees, in line with Interoute's
current staffing strategy.  We calculate Standard & Poor's-
adjusted EBITDA to include capitalized development costs and
restructuring costs, in line with our criteria.  We also adjust
the company's debt and EBITDA for the non-cancellable portion of
the operating leases and the company's rent payments.  We note,
however, that the operating lease adjustment has a somewhat
favorable impact on Interoute due to its relatively short lease
profile.  Our assessment of Interoute's financial risk profile is
constrained by Interoute's relatively weak FOCF generation, on
the back of high capital expenditure (capex)--most of which is
linked to the expansion and maintenance of the existing customer
base.  We currently forecast that Interoute will generate
slightly negative FOCF in 2016, largely due to the burden of
integration costs which are expected to primarily take place in
this period.  However, we anticipate meaningful improvement in
FOCF in 2017, with FOCF increasing to about EUR30 million,
driven, to a large extent, by the impact of the merger related
cost efficiencies," S&P noted.

S&P views the company's profitability as lower than that of other
rated network peers.  S&P sees potential risks related to the
merger with Easynet -- partly also due to limited historical
figures on Easynet -- and S&P assess Interoute's credit quality
as weaker than peers such as Level 3 and Interxion.

S&P's base case assumes:

   -- Revenue growth of 2%-3% on a like-for-like basis in 2015-
      2017, reflecting continued pricing pressures in transport,
      more than offset by demand for the company's enterprise
      solutions (notably from 2016 onward, when S&P expects the
      demand for cloud based computing to accelerate);

   -- Continued decline in Easynet's revenues in 2016, due to
      both the impact of legacy service revenues and the negative
      impact of the integration process on the company's sales;

   -- EBITDA margins growing to about 24% by 2017, owing to
      increased operating leverage and benefits of merger related
      synergies; and

   -- Capex to sales declining to about 12% from about 17% in
      2014 due to the merger, with a much less capital intensive
      business.

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

   -- Debt to EBITDA of about 4.3x-4.5x in 2015, declining to
      about 3.3x-3.5x in 2017;

   -- EBITDA interest coverage of 4x-5x; and

   -- Negative FOCF in 2016, but FOCF to debt increasing to about
      5% in 2017 (reflecting 6%-7% on an adjusted basis).

The stable outlook reflects S&P's anticipation that Interoute
will continue to post stable revenue growth and generate positive
FOCF from 2017, after implementing the merger-related synergies.
This should enable Interoute to maintain a leverage of 4.0x-4.5x.

S&P views an upgrade over the next 12 months as unlikely given
the short-term integration risks and costs.  S&P could raise the
ratings if EBITDA margins improve to more than 25%, adjusted
leverage improves to less than 4x, and FOCF to debt increases to
more than 5%.  S&P do not envisage this to happen before 2017.

S&P also sees relatively limited potential for a negative rating
action given the relatively high revenue visibility and S&P's
anticipation that cost efficiencies will more than offset
potential pricing pressures.  S&P could lower the rating if
integration leads to higher than anticipated costs and negative
operating trends, resulting in meaningful cash burn and adjusted
leverage approaching 5x.


MICRO FOCUS: S&P Affirms 'BB-' CCR, Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term corporate credit rating on U.K.-based software
provider Micro Focus International PLC.

At the same time, S&P affirmed its 'BB-' issue rating on the
company's US$1.85 billion senior secured term loans, including an
undrawn revolving credit facility (RCF).  The recovery rating
remains at '3', indicating S&P's expectation of recovery in the
higher half of the 50%-70% range in the event of a default.

The affirmation reflects S&P's expectation that Micro Focus will
gradually reduce its leverage, thanks to positive cash flow
generation.  This is despite the ongoing integration of software
company Attachmate Corp., which Micro Focus acquired in November
2014 and will result in additional restructuring costs over the
next 12 months.

Micro Focus' business risk profile continues to reflect its
narrow revenue base, limited growth prospects, and intense
competition from much larger players.  Micro Focus derives about
20% of its pro forma revenues from COBOL, a software programming
language.  It is primarily active in the distributed segment of
this market, where customers can use their own applications
written in COBOL across multiple platforms.  Micro Focus also
operates in the mainframe segment, but to a much smaller extent.
Many segments are mature, with limited growth prospects, and S&P
anticipates flat or declining revenues in all segments but SUSE
Linux. Furthermore, the group competes with much larger players,
including IBM, Microsoft, and Oracle, and with niche software
providers such as Red Hat Inc.

These weaknesses are partly offset by the group's solid
profitability.  The Standard & Poor's-adjusted EBITDA margin
declined, due to the restructuring activities, to a still-strong
38.2% as of fiscal year ended April 30, 2015.  S&P calculates its
adjusted EBITDA figure after deducting capitalized development
and restructuring costs.  S&P expects the margin will rebound
over the next two years as cost savings from the integration of
Attachmate are achieved and restructuring costs decline.

S&P's financial risk profile assessment reflects the company's
significant debt, including S&P's anticipation of adjusted debt
to EBITDA above 3.0x and funds from operations (FFO) to debt in
the 20%-25% range in 2016.  S&P's debt adjustments include
operating leases and a 25% surplus-cash haircut, in line with its
criteria. Micro Focus targets a ratio of debt to facility EBITDA
of 2.5x, which S&P thinks corresponds to an adjusted debt-to-
EBITDA ratio of about 3x, and now intends to achieve this before
the original November 2016 target date.  However, after that, S&P
thinks the company's leverage could increase again due to
acquisitions or shareholder returns.  Therefore, S&P believes
adjusted debt to EBITDA could remain at 3.0x or higher in the
longer term.

Compared with other software providers S&P rates, Micro Focus has
weaker growth prospects, in S&P's view.  Moreover, S&P still sees
some execution risks with the integration of Attachmate, which
could result in lower revenues or delays in achieving cost
reductions, although S&P understands many planned initiatives
have already been taken.

The stable outlook reflects S&P's anticipation that Micro Focus'
adjusted debt-to-EBITDA ratio will decline below 3.5x and FFO to
debt will increase beyond 20% over the next 12 months.

S&P could raise the rating once the integration of Attachmate has
been completed and organic revenues have at least stabilized.  In
addition, gradually stronger metrics in line with S&P's base case
would support an upgrade.

S&P could lower the rating if the adjusted debt-to-EBITDA ratio
exceeded 4x or FFO to debt were approaching 15%.  S&P thinks this
could result from operational problems, notably if revenues
declined more than S&P expects in some segments, or from
integration issues leading to higher restructuring costs or lower
cost savings.


MISYS NEWCO: Moody's Affirms B2 CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service has affirmed Misys Newco 2 S.a r.l.'s
B2 CFR, B2-PD PDR and the B1 rating of the Term Loan B issued by
Magic Newco LLC (USD tranche) and Magic Newco 5 S.a.r.l. (EUR
tranche), and the Revolving Credit Facility (RCF) raised by Magic
Bidco Limited.  Moody's has also affirmed the Caa1 rating of the
Second Lien Term Loan issued by Magic Newco LLC.  The ratings
outlook was changed to stable from negative.

RATINGS RATIONALE

The change of outlook to stable from negative reflects Misys'
improving free cash flow generation, although still low, and in
turn more likely deleveraging prospects.  While Moody's adjusted
leverage has slightly increased from prior year to 5.6x Moody's
do not expect it to rise further.

Moody's also recognizes that Misys enjoys a strong position in
its markets as demonstrated by the company's strong pipeline and
high retention rate.  This is further supported by its (i) wide
product offering which provides financial institutions with a
one-stop shop option; (ii) the embedded nature of its products
and strong customer relationships; (iii) high recurring revenue
base that provides steady maintenance revenue streams; and (iv)
geographic diversification and low customer concentration.

The rating also reflects (i) the fragmented market characterized
by intense competition; (ii) lengthy process in closing new
contract wins due to financial institutions' internal diligence
processes; (iii) revenue volatility from license fees with lower
degree of predictability; (iv) exposure to adverse currency
movements; and (v) tighter covenant headroom due to the test step
down over the current year.

Moody's adjusted leverage increased slightly to approximately
5.6x at May 2015 from prior year of 5.4x which is primarily
attributed to delays in closing new contracts, and the
significant US dollar appreciation against the Euro.  This
volatility illustrates the lengthy decision making process for
banks to enter new contracts, but also indicates a reliance on an
element of new business being secured each year to deliver
performance.

As a result of these delays, in the financial year end May 2015
(FY14/15) revenues declined by 1.2% on a constant currency basis
to USD934 million with a 15% revenue decline in its license
segment.  More positively, maintenance revenues continued to
increase with a 5% growth on a constant currency basis driven by
annual price increases and strong new wins in the prior year.
Cash flow generation remains weak with FCF to debt at 1.5% in
FY14/15 largely due to the company's high interest costs, ongoing
exceptional costs and working capital outflows.  While Moody's
expects FCF to debt to remain in the low single digits in the
next 12-18 months due to further restructuring cost payments and
working capital outflows, we expect some top line and margin
improvements as delayed deals are expected to close throughout
the year, further supported by a strong pipeline and major
reorganizational measures taken so far to improve its sales
execution and continued growth in maintenance revenues.

Liquidity remains adequate for the company's near term
requirements.  It is supported by total cash balances of
USD40 million and USD100 million undrawn RCF at year end
May 2015. Moody's expects peak RCF utilisation of around USD50-60
million during the year.  Financial covenant headroom is expected
to reduce in the next 18 months.  Moody's expects the company to
remain covenant compliant albeit with marginal headroom over this
period.

The stable outlook reflects Moody's expectation that Misys's free
cash flow generation will remain positive over the next 18 months
with a slow but steady deleveraging pace.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings could be upgraded if adjusted leverage falls towards
4.5x on a sustainable basis, with sustainable positive free cash
flow.

Conversely, ratings could be downgraded following either: (1) an
increase of the company's adjusted leverage to above 6x (which
would be around 6.5x with expensed R&D costs), which also
reflects the currently limited covenant headroom; (2) further
weakening in the free cash flow; (3) additional concerns over the
company's liquidity profile; (4) a more aggressive financial
strategy resulting in Misys distributing further dividends or
performing debt-financed acquisitions.

The principal methodology used in these ratings was Global
Software Industry published in October 2012.

Headquartered in London, United Kingdom, Misys is one of the
world's leading financial services software providers offering a
broad range of solutions to over 2000 Banking and Treasury &
Capital Markets customers located across 130 countries.  In the
fiscal year end May 2015 (FY14/15) the company generated reported
revenues of USD881 million and Moody's adjusted EBITDA of USD348
million.


* Consultation on Plan to Improve Depositors' Protection Ongoing
----------------------------------------------------------------
isleofman.com reports that the Department of Economic Development
is consulting on a proposal to change the order in which
recovered money is repaid in the event of a local bank becoming
insolvent.

The report relates that the move would give 'preferred creditor'
status to eligible deposits as defined and covered by the
Island's Depositors' Compensation Scheme (DCS), ranking them
ahead of other creditors in the liquidation process.

This change would mean that vulnerable depositors and, if claim
was made to the DCS, the public purse would be reimbursed
earlier, the report says. For example, when Kaupthing Singer &
Friedlander failed, the DCS pay-outs were funded initially by the
Government, these would have been repaid earlier (reducing the
financing costs) if preferred creditor status was in place,
according to the report.

isleofman.com said the proposal is in line with developments in
the European Union and elsewhere to protect smaller depositors
and reduce the taxpayers' exposure to loss through schemes to
guarantee retail bank deposits.

"This proposal aims to better protect the interests of the
vulnerable depositors and that of the Isle of Man taxpayer by
ensuring they receive faster recovery of funds. Further it would
reduce the interest costs incurred by the Government of financing
the DCS. If the proposed scheme had been in place for the pay out
to the depositors of Kaupthing Singer & Friedlander, then the
speed of payment would have been substantially improved," the
report quotes Minister for Economic Development Laurence Skelly
MHK as saying.

The Isle of Man DCS provides protection up to GBP50,000 for
individual deposits and GBP20,000 for corporate deposits, the
report notes.



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


* SME Loan Payment Delays in Italy and Spain May Improve
--------------------------------------------------------
While SME loan payments in Italy and Spain lag behind the UK and
the Netherlands, they may improve on the back of the economic
recovery, says Moody's Investors Service in a special report
published on Sept. 22.  Moody's data show that they display the
largest gap between contractual and actual payment timing in the
business-to-business and public sectors.

The rating agency expects payment delays to improve in Spain,
mirroring the economy's recovery.  Italian small and medium-sized
enterprises (SMEs) have already shown some improvement in this
regard in 2015.  Moody's also says improvements to financial,
behavioral and performance data quality on European SMEs will
help lenders assess borrower creditworthiness more accurately,
boosting their willingness to lend and decreases refinancing risk
in European ABS deals backed by SME loans.

"Moody's delinquency data for asset-backed securities backed by
SME loans show performance is more closely correlated with
economic growth rather than payment delays.  For this reason,
although payment delays are still long -- especially in Italy and
in the public sector -- we do not expect arrears to rise in ABS
SME deals due to delays," says Monica Curti, a Vice President -
Senior Credit Officer at Moody's.

Moody's says payment delays can affect SMEs' liquidity, as
liquidity conditions are tight.

"Assuming that liquidity issues are a direct result of late
payment, they nonetheless do not necessarily lead to default
because Southern European SMEs are operationally prepared to
manage this problem, which is reflected in ABS SME deal
performance," observes Ms. Curti.

"Payment delays are both a cause and consequence of financial
difficulties," says Greg Davies, an Assistant Vice President -
Research Writer at Moody's.  "Financial difficulties can lead to
increases in payment delays and the latest data shows this, but
late payments also lead to liquidity problems; one would assume
that the recessions in some countries means that their domestic
SMEs would be in a worse position to pay," he adds.  The report
cites data from Intrum Justitia showing that in 2015, 82% of
companies in Italy gave financial difficulties as reasons for
late payment; in Spain, this percentage is 88%.  This is
considerably higher than 39% in the UK and 60% in the
Netherlands.  But, in Italy, 73% of companies in 2015 cited
liquidity problems owing to late payments.

Initiatives to improve data quality are already underway,
including the European Central Bank's (ECB) AnaCredit project to
establish a European credit register, tools leveraging the
European Datawarehouse and the European centralized financial
database.

"Improvements to the quality of, and lenders' access to, data on
SMEs' credit worthiness will help lenders more accurately assess
this, which will have a two-fold effect of increasing lenders'
willingness and ability to lend to SMEs, while simultaneously
decreasing refinancing risk in SME ABS pools," says Ms. Curti.

Moody's says widely available borrower data discourages bad
behavior among SME borrowers, especially in fragmented banking
systems.  For example, borrowers have greater incentive to repay
when they know lenders share their credit records, and that a
default with one lender would disrupt their access to credit from
all other lenders.  Second, data sharing helps close the
information gap between SMEs and bank and between bank and non-
bank lenders.  This diversifies the lender base by encouraging
alternative lending, which reduces refinancing risk and lowers
borrowing costs.  Non-bank lenders (such as peer-to-business
platforms and private debt funds) typically do not have their own
data on borrowers' past payment behavior, so better access to SME
borrower data is crucial for sound origination and servicing.


* EMEA Commodity Producers Most Exposed to China's Slowdown
-----------------------------------------------------------
EMEA's mining sector faces the most exposure to the expected
gradual slowdown in China, followed by oil & gas, shipping,
chemicals and auto manufacturing, says Moody's Investors Service
in a report published.  Other sectors face a moderate or
negligible impact.

Moody's recently slightly revised its GDP growth forecast for
China to 6.3% for 2016 and maintained its forecast of 6.8% for
2015.  While this represents a significant slowdown over previous
years, the country's growth rate remains significantly ahead of
most other developed countries, and notably the Euro area.
Further policy support is likely to ensure that the economic
slowdown in China remains gradual.  In spite of the slowdown, a
number of European companies still expect industry growth in
China to exceed that of other regions where they operate.

Metal and mining companies are most exposed both in terms of
export volumes and the knock-on effect of lower prices.  The oil
and gas sector has indirect exposure owing to the impact of
weaker demand on prices, while the shipping industry will feel
the side effects of lower demand for imports of raw materials and
lower exports.  Although Moody's expects that slowing China sales
will depress earnings for European auto manufacturers, the impact
could be largely offset by stronger sales in Europe and the US.
Chemicals companies are likely to face lower demand but also to
derive some cost benefits from lower oil prices.

"The impact of developments in China for many EMEA sectors, such
as tobacco, telecoms, real estate, healthcare, railways and
airports, will be negligible.  While these sectors are not
irrelevant to the Chinese economy, they tend to be more
regionally focused, so any exposure is too minimal to affect
their creditworthiness", said Richard Morawetz, a Moody's Group
Credit Officer for the Corporate Finance Group and author of the
report. "A handful of manufacturing companies have also shifted
production to China and export to other countries, so they could
potentially benefit from a weaker Chinese currency, if that
happens, or slowing wage inflation", added Mr. Morawetz.

Manufacturing, retail, media, utilities and consumer product
companies have only moderate exposure to China.  For most
manufacturers, growth in China is still strong enough to limit
any impact of a slowdown.  The few retailers and restaurant
chains with a presence in China have very limited exposure there.
Weak demand for discretionary products could result in a shift in
consumption patterns for beverage companies, while organic growth
could slow for some consumer products.  Utilities with merchant
power generation may be affected by a fall in coal or gas prices.
Service company exposure to China is quite limited, with some
exceptions.  Moody's expects that media sector growth will slow,
but China growth remains higher than in other regions.


* Fitch: EU Leveraged Finance Multiples Back to Pre-Crisis Levels
-----------------------------------------------------------------
Fitch Ratings says in a new report that enterprise value (EV)
multiples (EV/EBITDA) of European leveraged finance transactions
continued rising in 1H15, and recovered to pre-crisis levels
ahead of the August 2015 equity market correction. Global fiscal
and monetary stimulus in the post-crisis years, including
monetary stimulus in the eurozone in 2015, supported corporate
profits and multiple expansions, even though the broader economic
recovery has been slower to develop in Europe. Monetary stimulus
supported IPOs, with leading European indices returning to, or
establishing new all-time highs.

Sector multiple performance, however, varies and median
transaction multiples have fallen slightly to just over 9x in
1H15, after breaching 10x in 2014. Medians over the past year
remained well above the 8x recorded from 2009-2012, despite
recent softness and volatility in equities. Sharp rises in the
chemicals sector (to 8.8x in 1H15 from 4.6x in 2014), diversified
manufacturing (9.4x against 7.8x) and health care (33.1x against
11.8x) were offset by lower multiples recorded in the consumer
products sector (8.7x against 10.7x), diversified services (7.5x
against 12.4x) and energy (3.1x against 10.6x).

The post-crisis M&A recovery has been led by corporate trade
buyers as they seek to acquire revenue growth, pursue additional
cost cuts in combinations and regain pricing power by taking out
excess capacity in their sectors. This is in contrast to the pre-
crisis M&A market, characterized by financial sponsors taking
advantage of cheap credit and ample pricing power to drive
organic top-line revenue growth and margin expansion. Last year
and 1H15 saw an acceleration of trade-buyer transactions with
growth of over 50% in 2014.

Financial sponsors have been unable to compete in vendor auctions
as their return and leverage requirements put them at a
competitive disadvantage to less constrained trade and public-
equity investors. Sponsors nonetheless benefit as they became
active sellers of assets and have recently turned to higher
equity contribution investments in growth-oriented technology and
service sectors. They are also increasingly engaging in add-on
acquisitions to participate in the trend for sector
consolidation.

The full report, "European Leveraged Finance Multiple
EV-aluator", is available at fitchratings.com or by clicking on
the link above. The report provides an updated analysis of
European transaction multiples by sector, using data collected
over the last decade to June 2015. It provides an overview of
sector valuation statistics, changes in distressed multiples, and
summaries of individual transactions on a sector-specific basis.


                            *********

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

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

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


                            *********


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

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

Copyright 2015.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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