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

                           E U R O P E

           Friday, February 12, 2016, Vol. 17, No. 030


                            Headlines


G E R M A N Y

ADINOTEC AG: Insolvency Process Under Self-Administration Opened
TUI AG: S&P Revises Outlook to Positive & Affirms 'BB-' CCR


G R E E C E

ELLAKTOR SA: S&P Raises CCRs to 'B-/B', Outlook Stable
GREECE: Central Bank Calls for Swift Conclusion of Bailout Review


I R E L A N D

BLACKROCK EUROPEAN: S&P Assigns Prelim. BB Rating to Cl. E Notes
EUROCREDIT CDO VII: S&P Raises Rating on Class E Notes to B+
HOUSE OF EUROPE V: Moody's Hikes Class A2 Debt Rating to B1(sf)


I T A L Y

BANCA ETRURIA: Arezzo Court Declared Insolvent


K A Z A K H S T A N

EASTCOMTRANS LLP: Moody's Affirms B3 CFR, Outlook Negative


L A T V I A

KVV LIEPAJAS: Treasury Says Not Provided Full Guarantees for Debt


L U X E M B O U R G

CERBERUS NIGHTINGALE: Fitch Lowers IDR to 'B', Outlook Stable


N E T H E R L A N D S

NORTH WESTERLY I: S&P Lowers Ratings on 2 Note Classes to 'CC'


N O R W A Y

NORSKE SKOG: Says Bondholders Sue to Trigger CDS Payouts


R U S S I A

NATIONAL FACTORING: Moody's Withdraws B3 Deposit Ratings


S L O V E N I A

NOVA LJUBLJANSKA: Moody's Affirms 'B2' LT Deposit Ratings


S P A I N

ABENGOA SA: Asks Creditors for EUR750MM Loan Amid Rescue Talks
ABENGOA SA: Sells 20% Shares in 100-MW CSP Plant to Masdar


U K R A I N E

BANK PREMIUM: NBU Revokes License, Commences Liquidation


U N I T E D   K I N G D O M

ALPINE CONSULT: 19 Carbon Credit Firms Put Into Liquidation
ARTISTS AVENUE: Court Orders GBP50M Phantom Cos. Into Liquidation
CUCINA ACQUISITION: Moody's Affirms Caa1 Corporate Family Rating
ELEMENT MATERIALS: S&P Assigns Prelim. 'B' CCR, Outlook Stable
EMPIRE DIAMONDS: Court Winds Up Diamond Investment Company

ENJOY PUBS: Court Orders Abacus Bar Into Liquidation
* UK: Oil and Gas Businesses Insolvencies Rise in 2015


X X X X X X X X

* Shipowners Face Financial Woes Amid Dry Bulk Crisis
* Falling Short-Term Bank Supply Tests EU Money Funds, Fitch Says
* EU Leveraged Retail Lodging Credits Face Challenges, Fitch Says
* BOOK REVIEW: Landmarks in Medicine - Laity Lectures


                            *********



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G E R M A N Y
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ADINOTEC AG: Insolvency Process Under Self-Administration Opened
----------------------------------------------------------------
Reuters reports that Adinotec AG said the District court
Darmstadt opens as of Feb. 1 insolvency proceedings under self-
administration.

Adinotec said the board now intends a reorganization with the
majority shareholder in form of an insolvency plan, according to
Reuters.


TUI AG: S&P Revises Outlook to Positive & Affirms 'BB-' CCR
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Germany-based tour operator TUI AG to positive from
stable.  S&P affirmed its 'BB-' long-term corporate credit rating
on TUI.

At the same time, S&P affirmed its 'BB-' ratings on the company's
senior unsecured bank facilities and notes.  The recovery rating
is unchanged 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 outlook revision follows the company's strong operating
performance in fiscal year ended Sept. 30, 2015.  Supported by an
increase in customers, prices, and occupancy rates, TUI's
revenues rose by 3.6% (before foreign exchange adjustments)
during the year.  At the same time, the company's foreign-
exchange-adjusted underlying EBITA improved by 15.4%.  Moreover,
the Standard & Poor's-adjusted EBITDA figure was 12% higher year
on year, and was equivalent to an adjusted EBITDA margin increase
to 11.0% from 10.5% the year before.

For the current fiscal year ending Sept. 30, 2016, TUI's
management is confident that the company will achieve revenue
growth of at least 3% and increase underlying EBITA by at least
10%.  This is supported by recent trading figures indicating
further growth of bookings and prices in most markets, despite
the ongoing challenges in the tourism industry related to
terrorist attacks in North Africa and Turkey.

Furthermore, management has demonstrated its commitment to
further improving TUI's credit metrics.  The recently released
financial policy targets a leverage ratio of 2.75x-3.50x after
3.0x in 2015, and an interest coverage ratio of 4.5x-5.5x
compared with 4.7x in the previous fiscal year.  Translated into
Standard & Poor's definitions, this is approximately equivalent
to debt to EBITDA of 2.65x-3.40x and EBITDA interest coverage of
5.3x-6.3x.  The stronger ends of these ranges are in our
intermediate financial risk category and the weaker ends in the
significant category.

S&P's view of TUI's business risk profile reflects the group's
exposure to the global tourism industry's cyclicality and strong
seasonality, which result in significant event risk.  In
addition, TUI is exposed to changes in discretionary consumer
spending that are linked to general economic developments.
Online competition and increased comparability of offers and
prices pose another source of risk to the business model.  Also,
the Standard & Poor's-adjusted EBITDA margin for TUI is lower
than for other companies it rates in the leisure segment.

That said, these weaknesses are partly offset by the strong
recognition of the TUI brand and the group's portfolio of brands.
TUI's large size puts it in a favorable negotiating position with
hotel owners and enables it to offer exclusive locations.  In
addition, the group's geographic diversification enables it to
redirect customers to alternative destinations in the event of
regionally isolated events, as shown by recent developments in
Turkey, for example.

With respect to TUI's financial risk profile, as a weighted
average over 2014-2018, S&P estimates the Standard & Poor's-
adjusted funds from operations (FFO) to debt ratio at 27%-28%,
which is at the upper end of the range for S&P's significant
category.  S&P's forecasts of debt to EBITDA at 2.7x-2.8x and
EBITDA interest coverage at about 6.0x are both at the lower end
of the respective ranges for S&P's intermediate financial risk
category.

S&P's positive outlook reflects its expectation of low- to mid-
single-digit growth of TUI's revenues and EBITDA, which should
lead to free operating cash flow exceeding planned dividend
payments.  S&P consequently expects further improvements in TUI's
credit metrics.

S&P could raise the ratings by one notch over the coming 12
months if TUI's revenues, EBITDA, and operating cash flow
increase as it anticipates, despite the difficult general tourism
environment. This would indicate the company's resilience against
turmoil in holiday destinations.

Provided the company performs in line with S&P's base case, it
forecasts that FFO to debt will approach 30% and debt to EBITDA
will stay below 3.0x on a sustainable basis.

Depending on the company's performance, an upgrade could stem
from a stronger business risk profile, an improved financial risk
profile, or both.

S&P could revise the outlook to stable should TUI's operating
performance and leverage metrics be weaker than S&P's forecasts.
This could, for example, occur if political unrest, terrorist
attacks, or natural disasters lead to a drop in customer numbers.



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G R E E C E
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ELLAKTOR SA: S&P Raises CCRs to 'B-/B', Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long- and short-term corporate credit ratings on Greek
concessions and construction group Ellaktor S.A. to 'B-/B' from
'CCC+/C'.  The outlook is stable.

The rating action on Ellaktor reflects S&P's recent upgrade of
Greece.

Ellaktor's stand-alone credit profile (SACP) is now at the same
level as S&P's sovereign rating on Greece.  Therefore, S&P no
longer apply its liquidity stress test, which assumes a sovereign
default.  However, the continuation of capital controls in Greece
has led S&P to consider the group's cash held in Greek banks as
restricted in S&P's liquidity base-case scenario, resulting in a
lower starting point for its liquidity assessment.  S&P assess
the group's liquidity as less than adequate.  Ellaktor currently
holds around 40% of its total cash balances in Greek banks, which
S&P considers puts pressure on the group's liquidity position.

S&P continues to assess Ellaktor's SACP at 'b-'.  This reflects
S&P's view that the challenging macroeconomic situation in Greece
has weakened the group's business and financial prospects.
Ellaktor generates around 80%-90% of its earnings in Greece and
relies on government and bank funding from the country.

The timetable and the profitability of construction projects in
Greece have become more uncertain because of the extended period
of macroeconomic uncertainty caused by the country's liquidity
crisis and resulting capital controls, combined with its
political developments.

That said, there have been positive developments, such as the
state's settlement of its overdue financial contributions to
various concessions under construction and the approval of a
restructuring plan for Moreas, one of Ellaktor's five
concessions. As a result, Moreas is expected to receive extra
compensation, with the first instalment of EUR50 million expected
in early 2016.

The group reported total debt of about EUR1.48 billion as of
Sept. 30, 2015 (down from about EUR1.55 billion on Dec. 31,
2014). S&P considers this to be a high level of indebtedness to
support. S&P expects its adjusted debt to EBITDA to have
deteriorated in 2015 to around 7x.  However, S&P also expects
this to remain at about 6x on a weighted-average basis for the
five-year period through 2017.

The stable outlook on Ellaktor reflects that on Greece.  The
outlook also reflects S&P's expectation that the conclusion of
the financial sector recapitalization and the implementation of
the third European Stability Mechanism (ESM) program to
contribute to the gradual normalization of the Greek economy and
improve the group's prospects in 2016.  Nevertheless, existing
capital controls contribute to S&P's current assessment of
Ellaktor's SACP at 'b-', at the same level as the rating on the
sovereign.

In S&P's opinion, unless it raises its sovereign rating on
Greece, S&P would only raise its rating on Ellaktor if S&P
revised upward its SACP and it passed its simulated sovereign
stress scenario. Passing the test would allow the group to be
rated up to two notches above the rating on the sovereign.  S&P
considers Ellaktor to have high country risk sensitivity as a
predominantly transportation infrastructure group.  As a starting
point for passing S&P's simulated sovereign stress scenario, it
would expect to see the lifting of capital controls, including
deposit withdrawal limits, which would lead to an improvement in
the group's liquidity position.

S&P could also raise the ratings if it saw a rapid improvement in
the group's financial and operating performance.  This could be
based on improving traffic volumes in the concession business and
normalization of construction activities, with a healthy level of
backlog replenishment, full resumption of construction
operations, improvement in the receivable collection and payments
in the domestic market, and stabilization of operating margins.

In absence of any lifting of capital controls, S&P may lower the
rating on Ellaktor if S&P takes a negative rating action on
Greece.  S&P could also take a negative rating action on Ellaktor
if the expected gradual normalization of macroeconomic conditions
does not materialize, leading to further deterioration in the
company's credit metrics, or if S&P believes that Ellaktor
becomes vulnerable or dependent upon favorable business,
financial, and economic conditions to meet its financial
commitments.


GREECE: Central Bank Calls for Swift Conclusion of Bailout Review
-----------------------------------------------------------------
Nektaria Stamouli at The Wall Street Journal reports that
Greece's central bank chief called on Feb. 10 for a prompt
conclusion to the country's first bailout review, or put at risk
a projected economic recovery for the second half of 2016.

"The projection for an economic recovery in the second half of
the year is at the moment still subject to risks," the Journal
quotes Bank of Greece's Governor Yannis Stournaras as saying at a
parliamentary committee meeting.

Mr. Stournaras said that 2016 can be the "beginning of a new
path" for the country's economy, the Journal relates.

"But in order for that to happen, the review needs to be
completed, which has already been delayed," Mr. Stournaras, as
cited by the Journal, said.

"The mistakes of the past that led to a dead-end must be avoided.
Every time there is a failure to conclude the review, sentiment
gets worse".

Greece's government is currently locked in negotiations with the
country's international creditors to complete the first review of
the country's third bailout, worth up to EUR86 billion (US$93
billion), the Journal discloses.

The government is eager for a swift conclusion in order to start
negotiations with lenders over the country's debt relief, the
Journal notes.



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I R E L A N D
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BLACKROCK EUROPEAN: S&P Assigns Prelim. BB Rating to Cl. E Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned preliminary credit
ratings to BlackRock European CLO I Designated Activity Co.'s
(BlackRock European CLO I) floating- and fixed-rate class A-1, A-
2, B-1, B-2, C, D, and E notes.  At closing, BlackRock European
CLO I will also issue an unrated subordinated class of notes.

BlackRock European CLO I is a European cash flow collateralized
loan obligation (CLO), securitizing a portfolio of primarily
senior secured euro-denominated leveraged loans and bonds issued
by European borrowers.  BlackRock Investment Management (UK) Ltd.
is the collateral manager.

Under the transaction documents, the rated notes will pay
quarterly interest unless there is a frequency switch event.
Following this, the notes will permanently switch to semiannual
payment.  The portfolio's reinvestment period will end
approximately four years after closing.

"Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average 'B+' rating.  We consider that the portfolio at
closing will be well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds.  Therefore, we have conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations," S&P said.

In S&P's cash flow analysis, it used the EUR400 million target
par amount, the covenanted weighted-average spread (4.0%), the
covenanted weighted-average coupon (5.5%), and the covenanted
weighted-average recovery rates at each rating level.  S&P
applied various cash flow stress scenarios, using four different
default patterns, in conjunction with different interest rate
stress scenarios for each liability rating category.

Elavon Financial Services Ltd. is the bank account provider and
custodian.  At closing, S&P anticipates that the documented
downgrade remedies will be in line with its current counterparty
criteria.

Following the application of its non-sovereign ratings criteria,
S&P considers that the transaction's exposure to country risk is
sufficiently mitigated at the assigned preliminary rating levels.
This is because the concentration of the pool comprising assets
in countries rated lower than 'A-' will be limited to 10% of the
aggregate collateral balance.

At closing, S&P considers that the issuer will be bankruptcy
remote, in accordance with its European legal criteria.

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

RATINGS LIST

BlackRock European CLO I Designated Activity Co.
EUR410.238 Million Senior Secured Floating- And Fixed-Rate Notes
And Subordinated Notes

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

A-1                   AAA (sf)          215.000
A-2                   AAA (sf)           21.843
B-1                   AA (sf)            35.000
B-2                   AA (sf)            22.895
C                     A (sf)             22.500
D                     BBB (sf)           19.000
E                     BB (sf)            24.000
Sub                   NR                 50.000

Sub--Subordinated loan.
NR--Not rated.


EUROCREDIT CDO VII: S&P Raises Rating on Class E Notes to B+
------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Eurocredit CDO VII PLC's revolving facility and class A, B, C, D,
and E notes.

The upgrades follow S&P's assessment of the transaction's
performance using data from the Nov. 30, 2015, trustee report and
the application of its relevant criteria.

S&P subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class
at each rating level.  The BDR represents S&P's estimate of the
maximum level of gross defaults, based on its stress assumptions,
that a tranche can withstand and still fully repay the
noteholders.  In S&P's analysis, it used the portfolio balance
that it considers to be performing (EUR134,730,988), the current
weighted-average spread (3.17%), and the weighted-average
recovery rates calculated in line with S&P's corporate
collateralized debt obligation (CDO) criteria.  S&P applied
various cash flow stresses, using its standard default patterns,
in conjunction with different interest rate and currency stress
scenarios.

Since S&P's June 10, 2014 review, the aggregate collateral
balance has decreased by 57.77% to EUR134.73 million from
EUR319.02 million.

S&P has observed that the class A notes and revolving facility
have amortized by EUR170.95 million since its previous review.
In S&P's view, this has increased the available credit
enhancement for all of the rated classes of notes.  S&P has also
observed that the concentration of 'CCC' category ('CCC+', 'CCC',
and 'CCC-') rated assets and defaulted assets has decreased since
S&P's previous review.

S&P has observed that non-euro-denominated assets currently make
up 2.73% of the total performing assets.  These assets are hedged
by drawing in the same currency from the multicurrency revolving
liabilities to create a natural hedge.  The transaction has
currency call options, which hedge any currency mismatches.  In
S&P's opinion, the documentation for these derivative agreements
does not fully reflect its current counterparty criteria.  In
S&P's cash flow analysis, for ratings above the issuer credit
rating plus one notch on the counterparty, S&P considered
scenarios where the options and swap counterparty do not perform.

The exposure to obligors based in countries rated below 'A-' is
greater than 10% of the aggregate collateral balance (16.8%).
Therefore, S&P has also applied additional stresses in accordance
with its nonsovereign ratings criteria.

Taking into account the results of S&P's credit and cash flow
analysis and the application of its current counterparty criteria
and its nonsovereign ratings criteria, S&P considers that the
available credit enhancement is commensurate with higher ratings
than previously assigned for all classes of notes.  S&P has
therefore raised its ratings on all classes of notes.

Eurocredit CDO VII is a cash flow collateralized loan (CLO)
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  The transaction closed in May
2007 and is managed by Intermediate Capital Group PLC.

RATINGS LIST

Class             Rating
            To                 From

Eurocredit CDO VII PLC
EUR520 Million Senior And Secured Deferrable Floating-Rate Notes

Ratings Raised

A           AAA (sf)           AA+ (sf)
Revolving   AAA (sf)           AA+ (sf)
B           AAA (sf)           AA- (sf)
C           AA+ (sf)           BBB+ (sf)
D           BB+ (sf)           B+ (sf)
E           B+ (sf)            B- (sf)


HOUSE OF EUROPE V: Moody's Hikes Class A2 Debt Rating to B1(sf)
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on notes
issued by House of Europe Funding V PLC:

  EUR580,000,000 Class A1 House of Europe Funding V PLC Floating
  Rate Notes Due 2090 (current outstanding balance of

  EUR106,602,647.68), Upgraded to Aa2 (sf); previously on June
  17, 2015 Upgraded to A2 (sf)

  EUR70,000,000 Class A2 House of Europe Funding V PLC Floating
  Rate Notes Due 2090, Upgraded to B1 (sf); previously on June
  17, 2015 Upgraded to Caa1 (sf);

House of Europe Funding V PLC, issued in October 2006, is a
collateralized debt obligation backed primarily by a portfolio of
European CLOs, RMBS, CMBS and ABS originated from 2002 to 2007.

RATINGS RATIONALE

These rating actions are due primarily to the deleveraging of the
senior notes and an increase in the transaction's over-
collateralization (OC) ratios since June 2015. The Class A1 notes
have been paid down by approximately 33%, or EUR52 million, since
that time. Based on Moody's calculation, the OC ratios for the
Class A1 and Class A2 notes are currently 225.8% and 136.3%
respectively, versus 181.8% and 126.2% in June 2015. The paydown
of the Class A1 notes is partially the result of cash collections
from certain assets treated as defaulted by the trustee in
amounts materially exceeding expectations. Additionally the Class
A1 notes have also benefited from the receipt of excess spread as
a result of mezzanine OC test failures.

The deal has also benefited from an improvement in the credit
quality of the underlying portfolio since June 2015. Based on the
trustee's February 2016 report, the weighted average rating
factor is currently 1092, compared to 1162 in June 2015.

Factors That Would Lead To an Upgrade or Downgrade of the Rating:

This transaction is subject to a number of factors and
circumstances that could lead to either an upgrade or downgrade
of the ratings, as described below:

1) Primary causes of uncertainty about assumptions are the extent
of any deterioration in either consumer or commercial credit
conditions and in the commercial and residential real estate
property markets. Commercial real estate property market is
subject to uncertainty about general economic conditions
including commercial real estate prices, investment activities,
and economic performances. The residential real estate property
market's uncertainties include housing prices; the pace of
residential mortgage foreclosures, loan modifications and
refinancing; the unemployment rate; and interest rates.

2) Deleveraging: One source of uncertainty in this transaction is
whether deleveraging from principal proceeds, recoveries from
defaulted assets, and excess interest proceeds will continue and
at what pace. Faster than expected deleveraging could have a
significantly positive impact on the notes' ratings.

3) Recovery of defaulted assets: The amount of recoveries
received from defaulted assets reported by the trustee and those
that Moody's assumes as having defaulted as well as the timing of
these recoveries create additional uncertainty. Moody's analyzed
defaulted assets assuming limited recoveries, and therefore,
realization of any recoveries exceeding Moody's expectation in
the future would positively impact the notes' ratings.

Loss and Cash Flow Analysis:

Moody's applies a Monte Carlo simulation framework in Moody's
CDOROM(TM) to model the loss distribution for SF CDOs. The
simulated defaults and recoveries for each of the Monte Carlo
scenarios define the reference pool's loss distribution. Moody's
then uses the loss distribution as an input in the CDOEdge(TM)
cash flow model.

In addition to the base case analysis, Moody's also conducted
sensitivity analyses to test the impact of a number of default
probabilities on the rated notes. Below is a summary of the
impact of different default probabilities (expressed in terms of
WARF) on all of the rated notes (by the difference in the number
of notches versus the current model output, for which a positive
difference corresponds to lower expected loss):

Ba1 and below ratings notched up by two rating notches (655):

Class A1: +1

Class A2: +3

Class A3-a: 0

Class A3-b: +1

Class B: 0

Class C: 0

Class D: 0

Class E1: 0

Class E2: 0

Ba1 and below ratings notched down by two notches (1400):

Class A1: 0

Class A2: -3

Class A3-a: 0

Class A3-b: 0

Class B: 0

Class C: 0

Class D: 0

Class E1: 0

Class E2: 0



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I T A L Y
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BANCA ETRURIA: Arezzo Court Declared Insolvent
----------------------------------------------
ANSA reports that Arezzo's bankruptcy court on Feb. 11 declared
the "old" Banca Etruria insolvent, upholding a request by bank
commissioner Giuseppe Santoni.

The court instead rejected an objection that last year's Banca
Etruria bail-in was unconstitutional, filed by defense lawyers
for the bank's last president, Lorenzo Rosi, ANSA relates.

According to ANSA, the legal documents will now be transferred to
the prosecutor's office in the Tuscan city, paving the way for
the possible opening of a probe into fraudulent bankruptcy.

Banca Etruria is an Italian bank.



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K A Z A K H S T A N
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EASTCOMTRANS LLP: Moody's Affirms B3 CFR, Outlook Negative
----------------------------------------------------------
Moody's Investors Service changed the outlook on Eastcomtrans LLP
(ECT), Kazakhstan's largest private freight railcar leasing
company, to negative from positive. Concurrently, the rating
agency affirmed ECT's B3 corporate family rating (CFR), B3 senior
secured rating, B3-PD probability of default rating (PDR), and
national scale corporate family rating (NSR) of B3.kz.

The rating action reflects the potential for further
deterioration of ECT's financial metrics and liquidity beyond
Moody's current projections as a result of unfavorable market
developments and the Kazakhstani tenge devaluation. This could
trigger continuous covenant resetting processes, an increase in
debt service, and a further weakening in the credit profile.

RATINGS RATIONALE

ECT's B3 corporate family rating takes into account (1) increased
uncertainty regarding ECT's fleet utilization rates and revenue
generation in the next 12-18 months, given the weakening
operating environment in Kazakhstan; (2) elevated remarketing
risk as customers seek more flexibility under existing and new
contracts; (3) expected pressure on margins resulting from the
renegotiation of ECT's US dollar-denominated lease rates; (4)
ECT's exposure to foreign-currency risk, as most of its debt is
US-dollar denominated; (5) weak liquidity, caused by a breach of
the tangible net worth covenant under ECT's debt facilities. The
latter was triggered by the devaluation of the local currency. In
addition, ECT is experiencing materially reduced leeway under
leverage and coverage covenants, which might trigger a further
breach in the short term.

However, these negatives are partially offset by (1) ECT's
relatively high fleet utilization rates, although these declined
in 2015; (2) the company's high fleet diversification, with oil
and gas tank cars accounting for 66% of the fleet, gondola cars
for 23% and other types for 11% as of end-2015; (3) the company's
solid market positioning; (4) its modern railcar fleet, with an
average age of six years, compared with the estimated industry
average of above 15 years, which provides savings in terms of
repair costs; (5) its high EBITDA margin and adequate projected
financial metrics for the current rating category; and (6) the
high book value of ECT's pledged railcar fleet, at around $370
million as of end-September 2015, versus net debt of
approximately $226 million as of end-2015.

WHAT COULD CHANGE RATINGS UP/DOWN

Upward pressure is limited at this point considering the negative
outlook on the ratings. Moody's could stabilize the outlook if
the company were to (1) reset its financial covenants to a
comfortable and sustainable level; (2) reduce foreign-exchange
risk; and (3) demonstrate resilience of cash flow generation and
business profile to the market downturn.

Conversely, Moody's could downgrade the ratings if there were a
deterioration in the liquidity profile, as a result of (1)
unresolved covenant breaches increasing the probability of debt
acceleration; (2) a weakening in cash flow generation beyond
currently expected levels; (3) an increase in currency mismatch
between revenues and debt service as a result of currency
devaluation; and (4) failure to achieve a smoother debt repayment
profile before cash reserves deplete.



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L A T V I A
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KVV LIEPAJAS: Treasury Says Not Provided Full Guarantees for Debt
-----------------------------------------------------------------
The Baltic Course reports that KVV Liepajas metalurgs
metallurgical company has met the requirements set by the Latvian
government only partly as it has proven unable to provide a bank
guarantee for the overdue payment of EUR2.7 million, Treasury
spokeswoman Eva Dzelme told LETA.

"The document they had submitted has been analyzed and the first
quick conclusion is that they are ready to meet the conditions
only partly, namely, they are not providing a full guarantee for
the postponed payments, so it means that an agreement on the
restructuring of their debt has not been reached," The Baltic
Course quotes Ms. Dzelme as saying.  "We will have to consider
exercising our rights we have under the contract regarding
guarantees for the payments."

Asked what guarantees she meant, Ms. Dzelme said that these were
the bank guarantees submitted by the company already earlier and
that the Treasury would propose demanding the money from the
banks, The Baltic Course relates.

"Of course, consultations and talks with the company will be
continued and there is still a possibility of reaching some kind
of an agreement," Ms. Dzelme, as cited by The Baltic Course,
said.

On Jan. 18, KVV Liepajas metalurgs submitted to the Treasury a
document asserting compliance with the government's requirements.

On Jan. 19, the Latvian government was expected to decide behind
closed doors on the metallurgical company's request to postpone
the EUR2.7 million payment KVV Liepajas metalurgs was due to make
by the end of 2015.

The government already addressed the issue last month and decided
that the request could be granted on certain conditions,
according to the report.

According to The Baltic Course, Treasury head Kaspars Abolins
stressed that any postponed payments have to be secured with bank
guarantees.

The Baltic Course notes that in order to get a two-year debt
extension, KVV Liepajas metalurgs had to submit to the government
a convenant about its Ukrainian parent company making financial
investments in the company and a bank guarantee for the overdue
payment of EUR2.7 million valid until January 31, 2017.

The late payment interest on the EUR2.7 million payment that was
due on Dec. 28, 2015, is 0.1 percent per day of delay, the report
says.

The production plant of the insolvent KVV Liepajas metalurgs was
sold to Ukraine's KVV Group on Oct. 2, 2014, The Baltic Course
notes.

The Baltic Course says KVV Liepajas metalurgs is to keep making
payments the Finance Ministry for 10 years. Considering the down
payment received from Ukrainian investors when they bought the
insolvent Latvian steel company, the annual installment for 2015
has been calculated at EUR 2.7 million but in the coming years
the company will have to pay EUR7.5 million annually, the report
states.

On Nov. 12, 2013, the court declared Liepajas metalurgs
insolvent, The Baltic Course recalls.  The report says the
company ran into financial troubles and had to cease production
in spring 2013 due to a shortage of working capital. According to
the report, Liepajas metalurgs could not repay a state-guaranteed
loan it had taken from an Italian bank, and the loan was repaid
by the Latvian state. Liepajas metalurgs was placed under legal
protection but all negotiations about rescuing the company and
bringing in a new investor failed and the company's administrator
filed for insolvency, according to The Baltic Course.



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


CERBERUS NIGHTINGALE: Fitch Lowers IDR to 'B', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has downgraded Cerberus Nightingale 1 SA's Long-
term Issuer Default Rating to 'B' from 'B+'.  The Outlook is
Stable.  Cerba HealthCare SAS's EUR530 mil. senior secured notes
have been downgraded to 'B+'/'RR3' from 'BB-'/'RR3' and the
EUR145m senior notes issued by Cerberus have been downgraded to
'CCC+'/'RR6' from 'B-'/'RR6'.  Cerberus is an indirect holding
company of Cerba HealthCare SAS (formerly known as Cerba European
Lab SAS).

The downgrade of the IDR reflects Fitch's expectation that
Cerberus's deleveraging process will take longer than initially
assumed at the time of the Novescia acquisition in January 2015
(when we revised the Outlook on the IDR to Negative).  This is
driven by increased indebtedness and a challenging operating
environment, resulting in funds from operations (FFO) gross
adjusted leverage (pro forma for 12-month contribution of
acquisitions) remaining above 6.5x and FFO interest cover around
2.0x by 2017.

Fitch views positively Cerberus's free cash flow (FCF) margin in
the low to mid-single digit of sales and the progress realized in
extracting the planned synergies from the Novescia acquisition.
However, persistent pressure in the Routine Lab segment over the
medium term given on-going reimbursement cuts and risks of
further underperformance in Central Lab, combined with Cerberus's
primarily debt-funded bolt-on acquisition strategy will likely
lead to credit metrics that are more commensurate with a 'B' IDR
level on a sustained basis.

                       KEY RATING DRIVERS

Delayed Deleveraging

Fitch expects FFO gross adjusted leverage (adjusted for 12-month
contribution of acquisitions) will remain above 6.5x and FFO
interest cover around 2.0x by 2017.  In an environment where many
European healthcare services companies are facing sustained
regulated tariff pressure, these credit metrics are no longer
commensurate with a 'B+' IDR and are similar to those of
Cerberus's closest peer, Synlab Unsecured Bondco PLC (Synlab;
B/Stable), which also has a larger scale and diversification than
Cerberus.

Central Lab and Routine Luxembourg Pressure

The lack of improvement in credit metrics in 2015 resulted from
higher than expected tariff cuts in Luxembourg (20% in 2015) and
a material underperformance in the Central Lab segment, as large
pharmaceutical companies have cancelled or postponed drug
development processes.  Fitch expects Cerberus will rely more
heavily than before on a refilling backlog in Central Lab and no
further cuts in Routine Labs, including in France, to deliver
earnings and cash flow growth to support more meaningful
deleveraging from 2016 onwards.

Debt-funded Routine Labs Expansion

The ratings reflect Cerberus's strategy, which is aimed at
consolidating the fragmented French routine lab market.
Cerberus's acquisitive strategy enables the group to broaden its
network of labs around regional platforms and grow market share
accordingly while realising synergies.  In Fitch's view, Cerberus
is reliant on successfully integrating its acquisitions and
extracting the planned synergies to support mild deleveraging
prospects over the medium term as on-going reimbursement pressure
in Cerberus's key markets offsets volumes growth and limits
organic earnings and margin expansion.  Fitch's financial
forecasts supporting the 'B' rating assume up to EUR50 mil. per
year for small bolt-on acquisitions over the next three years,
partly financed by drawings under the EUR80 mil. revolving credit
facility (RCF).

Reduced Integration Risk of Novescia

The execution risk related to the acquisition of Novescia and the
extraction of planned synergies has reduced.  Cerberus's
management had completed around 70% of expected synergies as of
September 2015.  Fitch considers the risks associated with the
remaining 30%, primarily related to medical purchases and
production cost savings, to be limited.  The progress in the
integration of Novescia is evidence of management's ability to
integrate larger targets, besides its traditional small bolt-on
strategy.

Leading Clinical Laboratories Player

Cerberus is one of the largest medical diagnostics groups in
Europe.  Like-for-like performance is supported by growing
volumes, especially in the Specialised Lab segment where the
group benefits from a sound reputation for scientific expertise
and innovation and fairly stable profit margins.  The group's
activities in its Central Lab division globally and in the
Belgian and Luxembourg routine markets provide some geographical
diversification and reduce Cerberus's exposure to the French
healthcare system.

Weak Recoveries for Cerberus's Noteholders

The EUR145m senior notes are rated two notches below the IDR to
reflect their subordination to prior-ranking obligations.  The
'RR6' reflects the weak recovery prospects (0-10%) of the notes
in a default scenario.  Fitch still expects above-average
recovery prospects within the 'RR3' range (51-70%) for senior
secured noteholders and continues to value the group on the basis
of a 6.0x multiple applied to an estimated post-restructuring
EBITDA (in the event of default), which is 25% below the last 12-
month EBITDA as of September 2015, pro-forma for acquisitions
already completed.

                          KEY ASSUMPTIONS

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

   -- Like-for-like sales growth of 0% to 1% per year in Routine
      Labs as volume growth is offset by tariff pressure in key
      markets.

   -- Full year contribution of Novescia from 2016.

   -- Stable EBITDA margin of around 22% as synergies from
      Novescia gradually materialize.

   -- Small bolt-on acquisitions of up to EUR50m per year over
      the next three years, partially funded by the RCF.

   -- Stable capex around 3% of sales (excluding acquisitions).

                       RATING SENSITIVITIES

Future developments that could lead to negative rating action
include:

   -- Further profit pressure in any segment so that FFO adjusted
      gross leverage remains sustainably above 7.5x and FFO
      interest cover reduces below 1.8x (pro forma for
      acquisitions).

   -- FCF reducing to neutral or slightly positive territory.

   -- Further aggressively funded acquisition policy.

Future developments that could lead to positive rating action
include:

   -- Sustained revenue growth and full realization of synergies
      associated with Novescia and smaller bolt-on acquisitions
      together with a recovery in Central Lab and Routine Lab
      (Belux) resulting in EBITDA margin above 23% and FCF in the
      mid to high single digit of sales on a sustained basis.

   -- FFO adjusted gross leverage below 6.5x and FFO interest
      cover trending towards 2.5x (pro forma for acquisitions) on
      a sustained basis.

                      SATISFACTORY LIQUIDITY

Fitch expects Cerberus to maintain satisfactory liquidity over
the rating horizon.  In addition, liquidity will be supported by
a EUR80 mil. RCF that can be used for bolt-on acquisitions and
EUR14 mil. of unrestricted cash (excluding any amounts that are
considered not freely available by Fitch) as of Sept. 30, 2015,
given no meaningful debt amortization pressures as the combined
EUR675 mil. senior secured and senior notes fall due in 2020.



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


NORTH WESTERLY I: S&P Lowers Ratings on 2 Note Classes to 'CC'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its credit ratings on North Westerly CLO I B.V.'s
class IV-A and IV-B notes.  At the same time, S&P has affirmed
its 'CCC- (sf)' ratings on the class III-A, III-B, and III-C
notes.

The portfolio has continued to amortize since S&P's previous
review.  It currently comprises two loans granted to CBR Holding
Gmbh, a textile company based in Germany.  The total notional
amount of the loans is EUR8.05 million.  The legal final maturity
of each of these loans falls after the maturity date of the
notes. S&P has received confirmation from NIBC Bank N.V. that it
expects to liquidate the loans in late April/early May 2016.

S&P estimates that in order to fully repay the rated notes at
maturity, the liquidation proceeds of the loans should be at
least EUR6.67 million for the class III-A, III-B, and III-C
notes, and EUR23.40 million for class IV-A and IV-B notes.

S&P has applied its "Criteria For Assigning 'CCC+', 'CCC', 'CCC-
', And 'CC' Ratings".  In S&P's opinion, it expects default on
the class IV-A and IV-B notes to be a virtual certainty.  S&P has
therefore lowered to 'CC (sf)' from 'CCC- (sf)' its ratings on
the class IV-A and IV-B notes in line with S&P's criteria.

In S&P's opinion, the payment of principal and interest on the
class III-A, III-B, and III-C at maturity is dependent upon
favorable market conditions.  S&P has therefore affirmed its
'CCC- (sf)' ratings on the class III-A, III-B, and III-C notes.

North Westerly CLO I is a cash flow collateralized loan
obligation (CLO) transaction managed by NIBC Bank.  The
transaction closed in June 2003 and its reinvestment period ended
in June 2008.

RATINGS LIST

North Westerly CLO I B.V.
EUR363 mil, US$5.27 mil senior deferrable interest and
subordinated notes

                                         Rating
Class      Identifier              To               From
III-A      663322AD7               CCC- (sf)        CCC- (sf)
III-B      663322AE5               CCC- (sf)        CCC- (sf)
III-C      XS0168835493            CCC- (sf)        CCC- (sf)
IV-A       663322AF2               CC (sf)          CCC- (sf)
IV-B       663322AG0               CC (sf)          CCC- (sf)



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


NORSKE SKOG: Says Bondholders Sue to Trigger CDS Payouts
--------------------------------------------------------
Chris Dolmetsch and Sally Bakewell at Bloomberg News report that
Norske Skogindustrier ASA said bondholders suing to prevent a
debt exchange want to drive it into bankruptcy to profit from
bets against its survival.

According to Bloomberg, James Warnot, a lawyer for the distressed
Norwegian paper maker, told a U.S. federal court judge on Feb. 10
the noteholders are trying to trigger payouts on credit-default
swaps.

Norske Skog is seeking to restructure about US$1 billion of debt
after a decade of declining sales, Bloomberg discloses.  Holders
of EUR326 million (US$366 million) of notes have until Feb. 26 to
decide whether to exchange them for longer-term securities or
face severe losses, Bloomberg notes.  A New York court put a
temporary halt on the deal last week, Bloomberg recounts.

The case has been moved to federal court, where U.S. District
Judge Richard Sullivan scheduled a March 2 hearing on the bid to
block the exchange, pending the outcome of the litigation,
Bloomberg relates.  Judge Sullivan, as cited by Bloomberg, said
he was unlikely to allow Norske Skog to seek information about
the suing bondholders' positions because they don't have a
fiduciary duty to the company.  He denied its request to require
the group to post US$100 million in collateral to cover potential
damages that might result from the suit, Bloomberg notes.

Mr. Warnot told the judge Norske Skog "really views this as the
last opportunity to save the company", Bloomberg relays.

People familiar with the matter said in October, the secured
bondholder group includes BlueCrest Capital Management, Marathon
Asset Management and Sampo Oyj and is being advised by
Rothschild, Bloomberg recounts.

"We are long-term investors in Norske Skog who want it to avoid
insolvency so safeguarding the jobs of its employees and
suppliers," Bloomberg quotes Andrew Dowler, a spokesman for
Blackstone in London, as saying in an e-mail on Feb. 10.  "Others
have taken action which threatens the company's future.  We have
invested to secure its future.  We are one of the largest
financial investors in Norske Skog across its capital structure."

                       About Norske Skog

Norske Skogindustrier ASA or Norske Skog, which translates as
Norwegian Forest Industries, is a Norwegian pulp and paper
company based in Oslo, Norway and established in 1962.

As reported by the Troubled Company Reporter-Europe in mid-
November 2015, Moody's Investors Service downgraded Norske
Skogindustrier ASA's (Norske Skog) Corporate Family Rating
("CFR") to Caa3 from Caa2 and its Probability of Default Rating
(PDR) to Ca-PD from Caa2-PD.  Standard & Poor's Ratings Service
also downgraded the Company's long-term corporate credit rating
to CC from CCC.



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


NATIONAL FACTORING: Moody's Withdraws B3 Deposit Ratings
--------------------------------------------------------
Moody's Investors Service has today withdrawn the B3/Not Prime
local and foreign-currency deposit ratings, the B3 local currency
senior unsecured debt rating, the b3 baseline credit assessment
(BCA)/Adjusted BCA and the B2(cr)/Not Prime(cr) Counterparty Risk
Assessments of National Factoring Company. At the time of the
withdrawal the National Factoring Company's long-term debt and
deposit ratings carried a negative outlook.

RATINGS RATIONALE

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

Headquartered in Moscow, Russia, NFC reported total assets of
RUB15.7 billion ($238 million) and total equity of RUB3.2 billion
($48 million) under unaudited IFRS as of October 1, 2015.



===============
S L O V E N I A
===============


NOVA LJUBLJANSKA: Moody's Affirms 'B2' LT Deposit Ratings
---------------------------------------------------------
Moody's Investors Service has affirmed the long-term deposit
ratings of three banks in Slovenia: Nova Ljubljanska banka d.d.
at B2, Nova Kreditna banka Maribor d.d. at B3 and Abanka d.d. at
B3.

Concurrently, Moody's has affirmed the banks' baseline credit
assessments (BCAs). The banks' Counterparty Risk (CR)
Assessments, short-term deposit ratings and outlooks are
unaffected.

RATINGS RATIONALE

Moody's says that the affirmations reflect (1) the fact that the
improvement in Slovenia's Macro Profile has not led to immediate
changes in the banks' ratings owing to weak loan demand and high
levels of problem loans; and (2) the protection stemming from
Slovenian banking legislation, which establishes full depositor
preference over senior unsecured debt instruments.

-- STRONGER MACRO PROFILE AND PROTECTION PROVIDED BY BANKING
    LEGISLATION

Moody's change of Slovenia's Macro Profile to "Weak+" from "Weak"
was driven by the improvement in the Slovenian banks' operating
environment, particularly the country's economic strength. The
strengthening of the Macro Profile led Moody's to review the
affected Slovenian banks' financial metrics and standalone credit
profiles, in order to assess the impact of this change on the
banks' ratings.

According to Moody's, the more benign economic environment will
help Slovenian banks stabilize their credit fundamentals, albeit
at weak levels. However, it is unlikely to lead to material
improvements in the banks' credit profiles in the short-term.
Slovenia's banking industry remains challenged, as loan demand is
weak and banks are burdened with high levels of problem loans.
The rating agency says that the improvement in the Macro Profile
has not therefore led to immediate changes in banks' ratings. The
effect of improved operating environment over the past few years
has already been reflected in the positive outlook on two (Nova
Ljubljanska banka d.d. and Nova Kreditna banka Maribor d.d.) of
the three rated banks.

The affirmation of the banks' deposit ratings also reflects
Moody's analysis of Slovenia's legislation, which subordinates
certain creditors to depositors in a resolution scenario, as
captured by Moody's Advanced Loss Given Failure (LGF) analysis.
The protection provided by the Slovenian banking legislation
establishes full depositor preference over senior unsecured debt
instruments. The rating agency considers that the full depositor
preference will remain unchanged after the transposition of the
Bank Recovery and Resolution Directive (BRRD) in Slovenia in
2016.

Moody's has taken into consideration the rank ordering of
liabilities in a bank resolution scenario by amending the capital
structure used in its Advanced LGF analysis, in accordance with
full depositor preference. Previously, Moody's "de jure" scenario
reflected the pari passu ranking of deposits and senior debt.
Moody's amended Advanced LGF analysis has not resulted in changes
to the affected banks' deposit ratings because they do not have
any subordinated debt and the amount of senior unsecured debt
that could limit losses on deposits in a resolution scenario is
very limited.

--- BANK-SPECIFIC ANALYTIC FACTORS

-- Nova Ljubljanska banka d.d.

The affirmation of Nova Ljubljanska banka d.d.'s (NLB) B2 long-
term deposit rating reflects the combination of the following:
(1) the affirmation of its caa1 BCA; (2) the Advanced LGF
analysis, which provides one notch of uplift from the bank's BCA;
and (3) Moody's assumption of a moderate likelihood of government
support for NLB, as Slovenia's largest bank, which also provides
one notch of rating uplift. The Advanced LGF analysis reflects
the full depositor preference in the event of bank resolution.
The bank's deposit ratings benefit from a large volume of
deposits and limited senior debt, resulting in low loss given
failure.

The affirmation of NLB's caa1 BCA reflects the bank's weak,
albeit improving, credit profile following its restructuring and
recapitalization in 2013. NLB reported a 62% increase in net
income for the first nine months of 2015 compared to the same
period in 2014, resulting in a 0.9% Return on Assets (ROA). The
high level of problem loans, which accounted for 28% of the
bank's gross loans in Q3 2015, will likely entail additional loan
loss provisions. Limited lending growth and modest profitability
will underpin NLB's good capital adequacy with its Tier 1 ratio
at 15.9% as of Q3 2015. NLB is largely deposit-funded, with a
gross loan-to-deposit ratio of 91.1% in Q3 2015.

The outlook on the bank's long-term deposit ratings remains
positive, reflecting the improvement in asset quality and
capitalization.

-- Nova Kreditna banka Maribor d.d.

The affirmation of Nova Kreditna banka Maribor d.d.'s (NKBM) B3
long-term deposit rating reflects the combination of the
following: (1) affirmation of its caa1 BCA; (2) the Advanced LGF
analysis, which does not provide any rating uplift from the
bank's BCA; and (3) Moody's assumption of a moderate likelihood
of government support for NKBM as one of Slovenia's three largest
banks, which provides one notch of rating uplift. The Advanced
LGF analysis reflects the full depositor preference in the event
of bank resolution. NKBM's deposits are likely to face a moderate
loss given failure, due to the loss absorption provided by the
large volume of deposits and limited senior debt.

The affirmation of NKBM's caa1 BCA reflects the bank's weak,
albeit improving, credit profile following its restructuring and
recapitalization in 2013. NKBM reported a modest RoA of 0.51% for
the first nine months of 2015, pressured by declining net
interest income. Moody's considers that the more benign economic
conditions in Slovenia will help NKBM to work out its high level
of problem loans, which accounted for 41.5% of the bank's gross
loans in Q3 2015 and entail additional loan loss provisions.
Limited lending growth and modest profitability will underpin
NKBM's good capital adequacy; its Tier 1 ratio was 25.1% as
reported in Q3 2015. NKBM is predominantly deposit--funded, with
a gross loan-to-deposit ratio of 81.6% in Q3 2015.

In June 2015, the Slovene Sovereign Holding (the shareholder of
NKBM on behalf of the government), Apollo Global Management LLC
(Apollo) and the European Bank for Reconstruction and Development
(EBRD) signed an agreement concerning the sale of a 100%
shareholding of the Republic of Slovenia in NKBM. According to
the agreement, Apollo acquires 80% of the bank, while EBRD
purchases the remaining 20%. The acquisition will likely receive
regulatory approval in 2016. Moody's will assess the implications
of the bank's ownership change for its credit profile as soon as
they materialize.

The outlook on the bank's long-term deposit ratings remains
positive, reflecting the improvement in its asset quality and
capitalization.

-- Abanka d.d.

The affirmation of Abanka d.d.'s B3 long-term deposit rating
reflects the combination of the following: (1) the affirmation of
its caa1 BCA; (2) the Advanced LGF analysis, which does not
provide any rating uplift from the bank's BCA; and (3) Moody's
assumption of a moderate expectation of government support for
Abanka, as one of Slovenia's three largest banks, which provides
one notch of rating uplift. Moody's based its Advanced LGF
analysis on full depositor preference in the event of bank
resolution. Abanka's deposits are likely to face a moderate loss
given failure due to the loss absorption provided by the large
volume of deposits.

The affirmation of Abanka's caa1 BCA reflects the bank's improved
asset quality and capitalization, as well as uncertainties
arising from its merger with Banka Celje d.d.in October 2015.
Banka Celje was a smaller Slovenian bank, which was nationalized
and restructured by the government.

Most of Abanka's problem loans were transferred to Slovenia's
Bank Asset Management Company (BAMC) in 2014, reducing their
share of the bank's gross loans to 13.76% at year-end 2014 from
46.13% at year-end 2013. Although both Abanka and Banka Celje
returned to profit in 2015 (following large losses in 2013 and
2014), declining net interest income constrained their earnings.
As of Q3 2015, Abanka reported a strong Tier 1 ratio of 21%.

The merger of the two banks will increase Abank's market share
and may improve its operational efficiency in the long-term.
However, over the next 12-18 months, the integration costs will
likely weigh on Abanka's profitability.

The outlook on the bank's long-term deposit ratings is stable,
reflecting the improvement in its asset quality and
capitalization, as well as uncertainties arising from the merger
with Banka Celje.

-- WHAT COULD MOVE THE RATINGS UP/DOWN

Moody's could upgrade the banks' ratings in case of (1) a
sustained improvement in profitability; (2) solid capital
positions; or (3) a significant reduction in problem loans.

Downward rating pressure could emerge if (1) credit underwriting
standards deteriorate noticeably; or (2) asset quality and
profitability pressures emerge owing to a potential weakening in
the operating environment.

LIST OF AFFECTED CREDIT RATINGS

Nova Ljubljanska banka d.d.

-- B2 long-term local and foreign-currency deposit ratings
    affirmed with positive outlook

-- caa1 Baseline Credit Assessment affirmed

Nova Kreditna banka Maribor d.d.

-- B3 long-term local and foreign-currency deposit ratings
    affirmed with positive outlook

-- caa1 Baseline Credit Assessment affirmed

Abanka d.d.

-- B3 long-term local and foreign-currency deposit ratings
    affirmed with stable outlook

-- caa1 Baseline Credit Assessment affirmed

Outlook Actions:

-- Issuer: Nova Ljubljanska banka d.d.

-- Outlook, Remains Positive

-- Issuer: Nova Kreditna banka Maribor d.d.

-- Outlook, Remains Positive

-- Issuer: Abanka d.d.

-- Outlook, Remains Stable



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


ABENGOA SA: Asks Creditors for EUR750MM Loan Amid Rescue Talks
--------------------------------------------------------------
Jose Elias Rodriguez at Reuters reports that Abengoa SA has asked
its creditors for a loan of up to EUR750 million (US$843 million)
to keep it afloat while its lenders discuss a financial plan to
avoid it becoming Spain's biggest bankruptcy.

"Abengoa has asked for EUR650 million to EUR750 million in
additional liquidity," a source close to the talks, as cited by
Reuters, said on Feb. 10, adding that this was on top of around
EUR160 million Abengoa is requesting from bondholders.

According to Reuters, the source said KPMG, currently acting as
intermediary between the engineering firm and its creditors, must
now analyze the financial and industrial plan, which will be
presented to creditors and bondholders between Feb. 20 and
Feb. 25.

The company must agree on a full restructuring plan with
creditors before the end of March, or enter into a full-blown
insolvency process, Reuters notes.

A source previously told Reuters that Abengoa aims to reduce its
corporate debt to around EUR3 billion from EUR9 billion, implying
creditors would have to accept a loss of about 70% on their
investment and swap debt for shares.

Abengoa SA is a Spanish renewable-energy company.


                        *       *       *

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2015, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CCC-' its long-term corporate credit
rating on Spanish engineering and construction company Abengoa
S.A.  S&P also lowered the short-term corporate credit rating on
Abengoa to 'SD' from 'C'.  S&P said the downgrade reflects
Abengoa's failure to pay scheduled maturities under its EUR750
million Euro-Commercial Paper Program.


ABENGOA SA: Sells 20% Shares in 100-MW CSP Plant to Masdar
----------------------------------------------------------
SeeNews reports that Abengoa SA said on Feb. 4 it has sold its
20% stake in the 100-MW Shams 1 concentrating solar power (CSP)
station in the UAE to Masdar.

According to SeeNews, the company, which initiated pre-insolvency
proceedings in November 2015, has sold the interest in the solar
thermal power plant as part of a EUR100-million (US$112 million)
programme involving the disposal of non-strategic assets. Abengoa
has also recently sold its former offices in Madrid and is
currently negotiating other potential disposals.

SeeNews quotes Abengoa's chairman Jose Dom°nguez Abascal as
saying that "income from the sale of assets will be used to cover
expenses of the company in order to face the negotiation process
under Article 5 bis of the Spanish Insolvency Law".

Shams 1 is a CSP plant in Abu Dhabi that uses the parabolic
trough technology. Following the stake sale by Abengoa,
renewables firm Masdar now has an 80% stake in the facility,
while France's Total SA owns the rest of the shares, SeeNews
notes.

Abengoa SA is a Spanish renewable-energy company.

                        *       *       *

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2015, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CCC-' its long-term corporate credit
rating on Spanish engineering and construction company Abengoa
S.A.  S&P also lowered the short-term corporate credit rating on
Abengoa to 'SD' from 'C'.  S&P said the downgrade reflects
Abengoa's failure to pay scheduled maturities under its EUR750
million Euro-Commercial Paper Program.



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


BANK PREMIUM: NBU Revokes License, Commences Liquidation
--------------------------------------------------------
Interfax-Ukraine reports that the National Bank of Ukraine has
decided to remove the license of Bank Premium and liquidate it
for violation of financial monitoring laws.

"The facts of violation of law were established during the off-
schedule audit of bank Premium in connection with financial
monitoring issues," Interfax-Ukraine quotes the regulator as
saying.

According to Interfax-Ukraine, the NBU said that the Individuals'
Deposit Guarantee Fund will pay funds to 97% of depositors of the
bank worth some UAH150 million.

Bank Premium was founded in 2007.  The bank ranked 56th among 123
operating banks as of October 1, 2015, in terms of total assets
worth UAH1.754 billion, according to the NBU.



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


ALPINE CONSULT: 19 Carbon Credit Firms Put Into Liquidation
-----------------------------------------------------------
The Insolvency Service said 19 companies involved in a giant
boiler room scam to sell carbon credits to the public for
investment have been ordered into liquidation in the public
interest, following petitions presented by the Secretary of State
for Business, Innovation & Skills.

The winding-up orders by the High Court on February 3, at which
the companies had each filed no evidence and did not oppose the
proceedings and were not present or represented at the hearings,
followed an Insolvency Service investigation that revealed well
over 5 million carbon credits were sold to the public for sums in
excess of GBP36 million.

At one stage there were nearly 90 individual broker companies
involved in the scheme, many of which have been forcibly closed
already as a result of the Insolvency Service's intervention.

The Official Receiver now appointed to administer the liquidation
of these latest companies will be glad to hear from investors who
have dealt with them.

Welcoming the Court's decisions Chris Mayhew, Company
Investigations Supervisor, said:

"This stoke of boiler rooms was one giant scam emitting the now
all too familiar hot air on an industrial scale, persuading
ordinary people to part with their hard earned savings to invest
in near worthless voluntary carbon credits which were
aggressively peddled to them by these companies at significantly
inflated prices.

"Thanks to the hard work of investigators, Chris Gray and Joe
Peacock and by working closely with other regulators, this
operation has been effectively curtailed. This is not the end of
the matter and I would once more urge investors to be green, not
gullible and to hang up on cold calling con artists.

"The Insolvency Service will act whenever serious failings are
discovered and 'close the deal' on unscrupulous companies to
prevent them from profiting by their bullying and deceitful
tactics and inflicting misery on ordinary people."

The companies are:

Alpine Consult Limited
Environmental Acquisitions Limited
Blue Horizons Trading Ltd
Burlington Energy Markets Ltd
Charles Stratton Limited
Claremont James Ltd
CNI (UK) Limited
Clear View Partnership Ltd
Eden Brown Group S.L.
Enviro Associates Limited
Global Carbon Exchange Limited
Harman Royce Limited
Karlsson Chase Limited
Liberty Alternative Investments Limited
New Frontier Partnership Ltd
Oswald Bradshaw Limited
Pure Carbon Ltd
Seasaw Limited
Strategic Carbon Solutions Ltd

The petitions to wind up the foregoing 19 companies were
presented in the High Court on April 27, 2015, under the
provisions of section 124A (and in the case of the overseas
companies section 221(1) ) of the Insolvency Act 1986 following
confidential enquiries carried out by Company Investigations
under section 447 of the Companies Act 1985, as amended.

The grounds for winding up the companies were their lack of
commercial probity by participating in and benefitting from an
objectionable scheme to sell VER carbon credits to the public as
an investment opportunity.

Also presented in the High Court at the same time were petitions
to wind up a further 10 companies on grounds of public interest
and those petitions remain opposed (including in the case of
Viceroy Jones Ltd, its restoration to the register) and are
listed for trial in the High Court in early 2017. No further
details regarding the action taken against those companies will
be made available until the petitions against them have been
determined by the Court.

The opposing 10 companies are:

    Opus Capital Limited (company number 08380328)
    Gemmax Solutions Limited (company number 07260486)
    Opus Capital Investments Limited (company number 07768323)
    Otium Ventures plc (company number 05874310)
    Vaeron Finance Limited (company number 07241915)
    Tocan Limited (company number 07662985)
    Opus Clearing Limited (company number 07670885)
    Gemmax Solutions Nominees Limited (company number 08481505)
    Yarmouth Place Limited (company number 08331161)
    Viceroy Jones Ltd (dissolved company number 0791260)

In ordering on Feb. 3, 2016, these 19 companies into liquidation
on grounds of public interest, Mr Registrar Briggs said:

". . . the companies have each been involved to some degree or
other in a scheme to market and sell VER carbon credits to the
public for investment . . . none of the companies appears today
to defend the petitions . . .  I am satisfied that the Secretary
of State's unopposed allegations are made out . . .  the
investigator Mr Peacock has in support produced an extensive
witness statement and he exhibits the material relied upon ? this
shows that the credits were marketed and sold to the public at
inflated prices . . .  credits were sold at up to 28 times greater
than the cost of the credits . . .  false information was given
and the public misled . . .  in my judgement this absence of
commercial probity by preying on individuals and depriving them
in this way of their property requires me to order the companies
into liquidation in the public interest . . .  additionally in
some instances accounts and annual returns have not been filed
. . .  in my judgement in order to protect the public from an
immoral and considerable scheme to sell credits to the public
at huge mark ups it is right that winding up orders are made and
I do so order.

A carbon credit is a certificate or permit, which represents the
right to emit one tonne of carbon dioxide (CO2) and can be traded
for money. The Financial Conduct Authority's consumer information
on carbon credit trading and what to consider before investing
can be found at http://is.gd/w81pMd

The Financial Conduct Authority has published help for those most
at risk of investment fraud: http://is.gd/qyzt6x


ARTISTS AVENUE: Court Orders GBP50M Phantom Cos. Into Liquidation
-----------------------------------------------------------------
A web of 'construction and civil engineering' companies with
reported combined sales of over GBP50 million and assets of
GBP8.4 million, but run solely as instruments of fraud to obtain
credit by filing false accounts and other false information, have
been ordered into liquidation on grounds of public interest
following an investigation by the Insolvency Service.

Petitions to wind up the companies were issued and presented by
the Secretary of State for Business, Innovation & Skills,
following confidential enquiries carried out by Company
Investigations, part of the Insolvency Service.

The Court heard how some 15 ready made companies had been bought
off the shelf from two company formation agents by a person
calling himself Jonathan Hunting.

Although the companies were dormant and had never traded whilst
under the control of the formation agents, when bought and
activated by the new owner fictitious directors were appointed
and the dates of their appointments back-dated by several years
to the date of incorporation of the relevant company in order to
lend legitimacy to the false accounts filed by the new owner
reporting significant assets and trading since incorporation by
some of the companies.

The companies had no physical presence at their registered
offices located in different parts of the country and ostensibly
each was independently owned and operated.

Typically, this type of fraud can inflict losses on legitimate
business of around GBP200,000 or in one recent case as much as $7
million by the company on that occasion dishonestly securing the
supply of band width technology for text messaging services.

Welcoming the Court's winding up decisions Chris Mayhew, Company
Investigations Supervisor, said:

"These supposedly unrelated companies had no legitimate purpose
and existed solely to seek to obtain easily disposable goods on
credit including expensive motor vehicles on lease finance with
no intention of paying for them.

"False accounts were filed by some of the companies to create the
impression that they were substantial and credit worthy
businesses and had been trading profitably for a number of years
which the investigation found to be blatantly untrue. Where no
trading accounts had been filed the first step, backdating the
date of the director's appointment, had been taken to continue
with the fraud.

"I would urge businesses approached for credit to question why a
potential new corporate customer would choose to back date the
appointment of its recorded officers and to file accounts showing
significant trading and assets at a time when clearly the company
was still on the shelf of the company formation agent dormant
awaiting sale.

"We work closely with a number of partners such as Companies
House to prevent the abuse of the corporate regime by such
deliberate lack of transparency and the Insolvency Service will
continue to investigate and bring to a halt companies harming or
about to harm legitimate business by operating in this way."

The petitions to wind-up the companies were presented under
section 447 of the Companies Act 1985, as amended.

-- Artists Avenue Agency Ltd
-- Britannia Bespoke Ltd
-- Peakshire Limited
-- Colelane Limited
-- Haleborough Limited
-- Leonworth Limited
-- Thornetech Limited
-- Sladeborough Limited
-- Wardleigh Limited
-- Bromshire Limited
-- Argentum Villages Limited
-- Brentgreen Limited
-- Haleshire Limited
-- Northring Limited
-- Sandiheath Limited

The petitions to wind up the 15 companies in the public interest
were each presented on Sept. 17, 2015. The petition issued
against Britannia Bespoke Ltd was supported by a steel supplier
claiming GBP96,733 and which also supported the petition issued
against Leonworth Limited claiming GBP81,144. The supporting
creditor's director Jude Bafoe was present at the hearing of the
Secretary of State's petitions and had earlier indicated to that
his company was also owed money by Colelane Limited. Mr Bafoe's
company had earlier petitioned to wind up Cabalian Baldwin & Co
Ltd.

The public interest ground for winding up the 15 companies was
that they were being used as vehicles for the commission of
fraud.

In ordering the companies into liquidation on grounds of public
interest on January 28, 2016, Mr. Registrar Briggs said:

". . . in my judgement the Secretary of State's case is made out
. . .  there is a deliberate attempt to hoodwink those who rely
on documents filed at Companies House . . .  the whole point of
having an open registry is so that those accessing the register
can rely on the accuracy of the information presented . . .  the
information laid before Companies House here is clearly false and
this shows a complete lack of commercial probity . . .  in my
view it is just and equitable that the companies be wound up, and
obviously so, and I do so order".

Companies House deals with complaints about companies that fail
to file documents like annual accounts or returns, or file
fraudulent documents. If you suspect a company of breaking the
law on the filing of documents, email the details to
fraud@companieshouse.gov.uk


CUCINA ACQUISITION: Moody's Affirms Caa1 Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has affirmed the corporate family
rating (CFR) of Caa1 and the probability of default rating (PDR)
of Caa1-PD of Cucina Acquisition (UK) Limited ("Brakes").
Concurrently, Moody's has affirmed the B3 rating on the GBP457
million fixed rate senior secured notes and the EUR150 million
floating rate senior secured notes due in 2018 and issued by
Brakes Capital.

The outlook on all ratings remains stable.

The rating action reflects i) an improving operating performance
which we expect will continue this year and which is evidenced by
sales growth of 6.5%, reported EBITDA growth of 13.8% and EBITDA
margin improvement of 34bps in YE2015, ii) the near completion of
the investment plan in the multi temperature distribution network
which will result in lower capex in 2016 as well as progress made
on the roll-out to Brakes' customers, iii) Moody's positive view
on the acquisition of Davigel closed in November 2015, which will
allow the company to double its presence in France, realize
synergies, and build a strong position in the frozen dessert
segment, iv) the improved debt maturity profile resulting from
the recent refinancing of a large part of the second lien term
loan facility. Notwithstanding the above mentioned positive
developments, the rating continues to be constrained by i) the
company's very high leverage with Moody's adjusted Debt-to-EBITDA
of 7.7x as of December 31, 2015 (pro forma for Davigel and Fresh
Direct) and ii) some refinancing risk due to a portion of the
second lien and PIK loan facilities still due in 2017.

RATINGS RATIONALE

The Caa1 corporate family rating (CFR) reflects Brakes' (1) high
leverage and weak cash flow generation; (2) the competitive
nature of the market leading to low EBITDA margin; (3) high
customer concentration; and (4) exposure to cyclical consumer
spending.

More positively the rating is supported by (1) leading market
position in the UK foodservice distribution market, scale and
purchasing power; (2) strong penetration of higher margin own-
branded products in the UK and France; (3) distribution density;
and (4) expected improvement in cash flow generation in 2016 as
the investment program aimed at reducing distribution costs
reaches completion.

Moody's views positively the acquisitions of Fresh Direct in
February 2015 and Davigel in November 2015. The integration of
Fresh Direct is progressing well based on management feedback,
and enhances the group's market position in the UK with a broader
offering of fresh products (a growing segment where Brakes has
had less presence compared to frozen) and more frequent
deliveries. Brakes acquired Davigel from Nestle in a transaction
that has been funded by a EUR130 million acquisition facility and
EUR90 million preference shares. Davigel will double the scale of
Brakes' operations in France to EUR1.2 billion pro-forma revenues
and we understand that management estimates purchasing synergies
of EUR10 million. Additionally, Brakes will strengthen the
offering in the frozen desserts segment by leveraging Davigel's
10 years exclusive rights to distribute Nestle's ice-creams in
France.

Brakes achieved revenue growth in all countries in 2015 when
measured in local currencies (+7.5% in the UK, +22.5% in France,
and +13.7% in Sweden) although a large part of the growth in the
UK and in France is due to the contribution of Fresh Direct and
Davigel. EBITDA margins also increased in all markets (+30bps to
5.8% in the UK, +10bps to 4.1% in France and +60bps to 3.5% in
Sweden). In the UK, the main driver for the margin increase was
the company's efforts to address low margin contracts, which
however negatively affected sales. In France, Brakes increased
market shares and maintained stable margins, while in Sweden the
margin increase was more pronounced starting from a lower base
and with potential for further improvements.

The company continues to make progress on the roll-out of the
multi temperature distribution network. The roll-out will take
time to be fully completed, with completion expected at year end
2018, however most of the capex has been spent in 2015. As a
result, we expect cash flow generation to improve in 2016 due to
lower capex and a reduction in exceptional costs which amounted
to GBP58 million last year.

Moody's considers Brakes' near-term liquidity to be adequate and
supported by reported cash of GBP150 million as of December 2015,
an undrawn revolving credit facility of GBP75 million due in 2018
and based on our expectation that Brakes will successfully renew
its GBP125 million receivable facility due in 2016.

In November 2015, Brakes has successfully refinanced a large part
of the second lien facility, improving its debt maturity profile.
However, a portion of GBP63 million is still due in 2017, while
GBP73 million has been extended by one year to 2018 and GBP230
million to 2020. We expect sufficient headroom under the
maintenance financial covenants, namely the net leverage and the
interest cover, to be maintained.

The outstanding subordinated shareholder loans and payment-in
kind (PIK) loan (the "shareholder loan instruments") of over GBP1
billion, due in 2019, have been treated as equity since the
ratings were initially assigned. However, following the GBP230
million refinancing of the second lien maturing in 2020, the
shareholder loan instruments are now due before other debt
instruments. As evidenced by the refinancing of the second lien
and the company's indication that it is considering an IPO
amongst other options, we understand that the capital structure
is evolving and that the shareholder loan instruments may be
extended. Moody's estimates Moody's adjusted leverage to be 13x
including GBP1 billion of shareholder loan instruments in our
calculation of adjusted debt.

Brakes' PDR (Caa1-PD) is aligned with the CFR, reflecting our
assumption of a 50% family recovery rate as is customary for
capital structures including both secured bank loans and bonds.
The GBP457 million senior secured notes and the EUR150 million
senior secured floating rate notes due 2018 are rated B3, one
notch above the CFR, to reflect their seniority in right of
payment to the aggregated GBP366 million second lien facilities.
The notes have a loss given default score of 3 (LGD-3),
representing a LGD between 30%-50% under Moody's LGD methodology.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook assumes that Brakes will maintain market
shares in its core markets, and continue to achieve EBITDA margin
growth through benefits from the multi temperature distribution
network roll-out and cost efficiencies in the UK, realization of
synergies with Davigel in France, and implementation of best
practices in Sweden. We anticipate a gradual deleveraging and
assume that the company will address debt maturities well before
they arise, including the second lien due in 2017.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure on the rating could develop if the company were
to significantly improve its EBITDA margin, leading to sustained
positive free cash flow generation, with leverage falling
materially below 7x on a Moody's adjusted basis.

A downgrade could occur in the event of business weakening,
potentially resulting in reductions in margins or free cash flow,
slower-than-anticipated deleveraging or if liquidity weakens.
Negative pressure would also arise if near term maturities were
not addressed, particularly the second lien due in 2017, or if
the maturity of the shareholder loan instruments is not extended
within the next 12 months.

Founded in 1958 and headquartered in the UK, Brakes is the
largest European foodservice distributor with a presence in the
UK and Ireland, France and Sweden. For FY2015 Brakes generated
GBP3.3 billion of revenues and Moody's-adjusted EBITDA of GBP177
million


ELEMENT MATERIALS: S&P Assigns Prelim. 'B' CCR, Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B' long-term corporate credit rating to U.K.-based
materials testing and product qualification testing (PQT)
services provider, Element Materials Technology Ltd. (Element), a
holding company created to acquire Element Materials Technology
Group Holding CC2 Ltd.  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to the proposed $30 million revolving credit facility (RCF), the
$70 million capital expenditure (capex) facility, $225 million
term loan B1, and $210 million equivalent term loan B2 (euro
denominated) to be borrowed by Element subsidiaries EMT 2
Holdings Limited and EMT Finance Inc.  The recovery rating on
these facilities is '4', indicating S&P's expectation of recovery
prospects in the upper half of 30%-50% range, in the event of a
payment default.

The final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of the
final ratings.  If Standard & Poor's does not receive the final
documentation within a reasonable time frame, or if the final
documentation departs from the materials S&P has already
reviewed, it reserves the right to withdraw or revise its
ratings.  Potential changes include, but are not limited to,
utilization of loan proceeds, the maturity, size, and conditions
of the loan, financial and other covenants, security and ranking.

S&P is assigning its preliminary ratings to Element as a result
of the company's refinancing via a fully underwritten $435
million senior secured term loan B.  The rating action follows
Element's incorporation by funds advised by private equity firm
Bridgepoint Capital to acquire Element Materials Technology
Group.  The target company's principal activity is to provide
materials testing, and product qualification testing services.

S&P's assessment of Element's business risk profile acknowledges
its leading position in the niche markets in which it operates
the significant complexity of the services the company provides,
and its highly educated workforce.  Additionally, the "mission
critical" nature of its services differentiates it from general
testing inspection and certification (TIC) and PQT providers and
enhances its competitive advantage.  Furthermore, the
accreditations and certifications required from TIC providers,
the increasingly stringent regulations, and frequent auditing
create high entry barriers.  In addition, the long-standing
client relationships and the outsourcing tendencies of the
industry support Element's business prospects.

However, S&P also acknowledges Element's small absolute scale in
the global TIC industry, its limited end product, and limited
end-market diversity.  Additionally, the group's concentration in
the U.S. market (approximately 75% of revenues, although a large
market), and its narrow focus of industries -- primarily
aerospace and oil and gas -- give it a more limited diversity
compared with larger more diverse peers.  Furthermore, the
group's highly skilled workforce could, in S&P's opinion, lead to
short-term inflexibility of its operating cost structure during
times of stress.  However, this is not uncommon for such
professional services companies.

S&P believes that Element Materials Technology Group's 2015
acquisition of TRaC -- in addition to its purchases of Cascade
Tek and Environ -- will support its leading position in the
aerospace testing market, as well as strengthen its testing
capabilities by offering an expanded range of PQT services.
However, S&P do not anticipate that Element's overall competitive
position will change significantly from the increased revenue
generation, capabilities, and offering.

S&P assesses Element's financial risk profile as highly
leveraged. Following Bridgepoint's acquisition of the group, S&P
forecasts that Element's Standard & Poor's-adjusted debt will
increase to approximately $695 million by end-2016, including a
$435 million newly issued term loan B, $230 million shareholder
loan, and approximately $30 million in operating lease
commitments.  This compares with adjusted debt of approximately
$375 million at financial year ended Dec. 31, 2015 (FY15),
including a $280 million term loan B, $70 million incremental
term loan, and S&P's adjustment for operating lease commitments
of approximately
$25 million.

S&P forecasts debt to EBITDA of nearly 9.0x (nearly 6.0x
excluding the shareholder loan [SHL]), and funds from operations
(FFO) to debt of less than 5.0% (10.0% excluding SHL) at end-
FY16.

While S&P acknowledges Element's recent EBITDA growth, and
forecast future benefits from its acquisitive strategy, S&P also
notes the group's access to a $70 million acquisition/capex
facility, and its non-cash-paying SHL, which would limit
significant improvement in S&P's adjusted metrics in the near
future.

S&P's assessment of Element's financial policy as aggressive
reflects its private equity ownership, as well as the possibility
of shareholder distributions.  S&P considers Element's positive
free cash flow as supportive for the rating.

In S&P's base case, it assumes:

   -- Low-double-digit revenue growth in FY16 to approximately
      $305 million, incorporating mid-single-digit organic growth
      supported by full consolidation of recent acquisitions;

   -- Mid-single-digit revenue growth in FY17 and FY18;

   -- Bolt-on acquisition expenses of around $20 million a year;

   -- Capex of about $18 million-$24 million a year; and

   -- Zero dividends.

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

   -- Adjusted EBITDA margins of about 25%-26% over the next 18
      months;

   -- Adjusted debt-to-EBITDA of about 9.0x at end-2016 (6.0x
      excluding SHL); and

   -- Adjusted FFO to debt of approximately 5.0% (10.0% excluding
      SHL) in full-year 2016.

The stable outlook reflects S&P's view that Element will retain
its leading position as a materials testing provider in its niche
U.S. sectors and in European markets, as well as its good
profitability.  The stable outlook also reflects S&P's view that
the company will maintain its credit metrics in line with a
highly leveraged financial risk profile in the near term,
including a ratio of adjusted debt to EBITDA of above 5x.

Due to the accreting debt levels, and the aggressive financial
policy of the group, S&P is unlikely to raise the ratings in the
near future.  However, S&P could consider upgrading Element if it
demonstrated a track record of improved credit metrics, such that
adjusted debt to EBITDA were sustained below 5.0x, as well as an
absence of shareholder distributions.  An improvement in credit
metrics could result from better operating conditions than S&P
currently forecasts leading to growth in adjusted EBITDA.

S&P could consider lowering the rating if Element posted negative
free operating cash flow, or it observed a sustained contraction
in, or increased volatility of, its EBITDA margin, triggered by
unexpected adverse operating developments.  Likewise, tightened
liquidity, material debt-financed acquisitions, or an FFO-cash
interest coverage ratio below 2.0x could cause S&P to lower the
ratings.


EMPIRE DIAMONDS: Court Winds Up Diamond Investment Company
----------------------------------------------------------
Empire Diamonds Ltd, a London-based company which made false and
misleading statements in persuading members of the public to
invest in coloured diamonds, has been wound up in the High Court
following an investigation by the Insolvency Service.

The company sold diamonds by way of a telesales operation, cold-
calling members of the public whose details were obtained from
purchased data lists. The investigation found that:

  * the company's promotional literature claimed a rate of return
    on investment of 15-25% per annum

  * these claims of investment growth were made to customers in
    circumstances where the company had already marked-up the
    diamonds on cost price by between 142% and 1289%

  * those customers who subsequently had their diamonds
    independently valued stated that they have been considerably
    overcharged. For example, one client was charged GBP11,850
    but his purchase was independently valued at GBP1,352

  * aggregate sales were GBP187,538, representing a mark-up of
    GBP146,053 on an aggregate cost price of GBP41,485

  * falsified customer testimonials were displayed on the
    company's website

  * the company solicited investment from some customers on the
    basis that it would sell their existing diamonds, but then
    failed to fulfil this promise

  * the company operated with a lack of transparency as to
    ownership and control

Commenting on the case, Colin Cronin, Investigation Supervisor
said:

"Empire Diamonds Ltd obtained clients and made sales by making
misleading, false and/or unfounded statements to them as to value
of the diamonds and returns. As a consequence clients paid the
company an exorbitant and unjustified mark up on the cost price
of the diamonds.

"These winding-up proceedings show that the Insolvency Service
will take firm action against companies which mislead the public
in this way.

"The London Diamond Bourse has published advice with the
objective of preventing the public falling foul of boiler room
scams purporting to sell highly lucrative investment diamonds. I
would encourage anyone who is approached by way of cold call and
offered diamonds to refer to this advice before making any
purchase."

Empire Diamonds Ltd was incorporated on June 12, 2012. The
company's registered office since July 23, 2013 has been at 68
Lombard Street, London, EC3V 9LJ. The registered office prior to
this was at Hillhead Cottage, Cheddon Fitzpaine, Taunton, TA2
8JZ.

The petition to wind-up Empire Diamonds Ltd was presented under
s124A of the Insolvency Act 1986 on Dec. 4, 2015. The company was
wound up on Feb. 1, 2016 and the Official Receiver has been
appointed as liquidator.


ENJOY PUBS: Court Orders Abacus Bar Into Liquidation
----------------------------------------------------
Michael Broomhead at The Star reports that the Abacus bar in
Chesterfield shut after the company which operated it was closed
under insolvency legislation.

According to The Star, Companies House documents show a High
Court judge ordered that the firm be wound up under the
provisions of the Insolvency Act after a creditor petitioned for
such action to happen.

West Yorkshire-based O'Haras Ltd was then appointed liquidators
of the firm, the report notes.

Plymouth-based Enjoy Pubs Ltd ran the large popular premises on
St Mary's Gate.  The Abacus opened in February 2011.  Projected
net sales for 2015 were GBP570,741. Turnover was GBP710,724
during 2014.

It is not known how many people have lost their jobs following
its closure, The Star discloses.

The Star says the three-storey building has been put up for sale
by agents Christie + Co with a 13-year leasehold costing
GBP40,000 and yearly rent of GBP76,000.


* UK: Oil and Gas Businesses Insolvencies Rise in 2015
------------------------------------------------------
Jonathan Davies at freshbusinessthinking.com reports that there
was a sharp rise in the number of oil and gas businesses in the
UK to go bust in 2015, according to accountancy firm Moore
Stephens.

freshbusinessthinking.com says 28 oil and gas firms became
insolvent last year, up from 18 in 2014, as oil prices continued
to plummet.

The industry suffered a vicious cycle last year, with Moore
Stephens saying that GBP140 billion worth of contracts were
cancelled, the report relays..

"Oil and gas service companies expanded their businesses over the
last decade based on an oil price well above the current one,"
freshbusinessthinking.com quotes Moore Stephens head of
restructuring and insolvency, Jeremy Willmont, as saying. "The
pain caused by the oil price fall has translated into a rising
tide of financial distress across the sector."

And things could get even worse this year, with oil prices having
already fallen 20% in the first few weeks of the year and some
economists forecasting prices to drop as low as $10 per barrel in
the near future, freshbusinessthinking.com adds.



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


* Shipowners Face Financial Woes Amid Dry Bulk Crisis
-----------------------------------------------------
Robert Wright at The Financial Times reports that record low
prices for transporting coal, iron ore and other dry bulk
commodities by sea have pushed shipping companies into severe
financial distress.

The suspension of payments to creditors and big write-offs by
publicly listed entities are likely to reflect similar hidden
crises at smaller, private operators that own most of the world's
vessels for carrying these products, the FT says.

According to the FT, shipowners are reacting to a slump in
charter rates brought on by a mix of faltering trade growth,
particularly with China, and a glut of ships as vessels ordered
in better times arrive on the market.

The collapse has dragged on far longer than anticipated, with
average charter rates for dry bulk carriers -- already at the
lowest level since the Baltic Dry Index started in 1985 --
declining every day so far in 2016, the FT discloses.

"The shipowners have been burning cash now for about 18 months,"
the FT quotes Basil Karatzas, a New York-based maritime finance
adviser, as saying.  "They're running very low on capital."


* Falling Short-Term Bank Supply Tests EU Money Funds, Fitch Says
-----------------------------------------------------------------
Fitch Ratings says that the material decline in short-term supply
from banks is challenging portfolio liquidity management for
European money funds.  They rely more on highly-rated and liquid
sovereign, supranationals and agencies (SSAs) to maintain robust
portfolio liquidity, especially at times of most pronounced
banks' retreat, as was the case at end-2015.  In its latest
quarterly report on European MMFs, Fitch also highlights that
more active corporate issuance is flowing into euro MMFs.

The average European MMF allocation to SSA stood above 16% at
end-2015 with notable increase in UK Gilt, US Treasuries, and
Danish, Belgium, French and Dutch government or agency securities
for the sterling, US dollar and euro funds, respectively.  The
shrinking short-term bank supply is a consequence of the banking
regulations and their liquidity requirements, which are
discouraging banks from taking on short-term deposits and repo.
The phenomenon is particularly acute at year-end and, since 2015,
also at quarter-end, when banks report their liquidity coverage
ratios.

The resulting sector reallocations in European money funds are
most pronounced in euro funds, where the share of financials
declined in 4Q15 for the seventh consecutive quarter, while
non-financial corporates reached an historical high of 17% at
end-2015, compared with less than 10% two years ago.  This was
fuelled by more active high-quality corporate issuance, as many
corporates take advantage of historically low rates in euros to
shore up debt financing.  It includes US corporates, which
confirmed their interest for issuing in euro amid diverging rate
paths between the US and Europe.  Procter and Gamble is now the
largest unsecured average exposure across euro funds we rate, an
unusual situation for money funds that are typically more exposed
to financial issuers.

At end-2015, the financial allocation in euro MMFs had fallen to
59% from 67% a year before, although it remains the largest
sector in euro money funds.

Inflows into US dollar and sterling-denominated CNAV MMFs in 4Q15
pushed assets in the overall European CNAV MMF segment to
EUR580.7 bil. at end-2015 (up 13% yoy), after having reached its
historical high of EUR585.2 bil. in November.  This highlights a
sustained demand for liquidity products as cash remains high on
corporate treasurers' balance sheets.  Euro CNAV assets
stabilized at EUR70 bil. this quarter, slightly lower than at
end-3Q15, but were down by more than 18% in 2015 due to large
outflows in 2Q15 after funds' yield turned negative in April.

Euro and US dollar-denominated European MMFs saw their yields
markedly diverge following December's decisions by the ECB and
the Fed to change their policy rates.  The average euro MMF gross
yield was negative 0.13% at end-January, a 6bp decline from the
previous quarter, less than the euro LIBID change.  The ECB
deposit facility rate was cut by 10bp to minus 0.30% on Dec. 9.
In contrast, yields on US dollar funds increased to 0.49%,
representing an increase of 23bp over the quarter, as the Fed
funds rate was raised by 25bp to 0.50% after almost a decade of
stalled US policy rates.


* EU Leveraged Retail Lodging Credits Face Challenges, Fitch Says
-----------------------------------------------------------------
Fitch Ratings says that challenges including increased
competition, the shift to online, and constrained disposable
incomes in the eurozone will pose the greatest threats for
leveraged credits in retail, lodging and restaurants sectors.
Moreover, more onerous lease expenses usually translate into
weaker financial flexibility for European retailers compared with
their US counterparts.  These are the conclusions of the first
edition of Fitch's 'European Non-Food Retail, Lodging,
Restaurants: Speculative-Grade Handbook'.  At present Fitch
covers 27 non-food retail credits in the leveraged loan/high-
yield sector, and 19 in lodging/restaurants.

Retailers focusing on the value-end of the market are faring
better than those with an undifferentiated product offer and/or
an unclear pricing or service proposition, as consumers remain
discriminating in their spending habits post crisis.  Restaurants
and hotels currently benefit from positive consumption and
demographic trends, as well as an increase in spending on
"experiences".  The operating leverage in these businesses means
that highly leveraged expansion plans could fail if economic
conditions were to worsen.

Fitch sees digital as both a threat and a source of opportunities
for retail, hotels, even restaurants.  In particular small
operators face increasing and disruptive competition from pure
online retailers, hotel booking systems or digital ordering
(Uber-like) for restaurants.  The inability of such small
players, often leveraged, to adapt to the new reality could
seriously impair their business models as they may fail to grab
elusive customers.

The combination of business model weaknesses and exposure to
cyclical end demand translate into a high inherent business risk
profile.  In addition, within our coverage of credit opinions for
leveraged loans in these sectors, high leverage and volatile or
low cash-flow conversion result in an average Issuer Default
Credit Opinion (IDCO) of b-*/b*.

Historically, these sectors have seen defaults.  Although the
significant fragmentation of these sectors in Europe leaves some
room to perform, Fitch expects a high degree of credit stress
over the next two years for credits positioned in the low end of
the rating spectrum as reflected in the relatively large
proportion of "at-risk" borrowers with about 24% of all names
rated 'b-*'/Negative Outlook or below.

This is the first of a series of reports in Europe which
highlights common elements, including Fitch's approach to rating
the sectors under review, a sector snapshot including market and
macroeconomic trends, as well as leveraged statistics related to
primary activity and performance analytics.


* BOOK REVIEW: Landmarks in Medicine - Laity Lectures
-----------------------------------------------------
Introduction by James Alexander Miller, M.D.
Publisher: Beard Books
Softcover: 355 pages
List Price: $34.95
Review by Henry Berry
Order your own personal copy today at http://bit.ly/1sTKOm6

As the subtitle points out, the seven lectures reproduced in this
collection are meant especially for general readers with an
interest in medicine, including its history and the cultural
context it works within. James Miller, president of the New York
Academy of Medicine which sponsored the lectures, states in his
brief "Introduction" that this leading medical organization "has
long recognized as an obligation the interpretation of the
progress of medical knowledge to the public." The lectures
collected here succeed admirably in fulfilling this obligation.
The authors are all doctors, most specialists in different areas
of medicine. Lewis Gregory Cole, whose lecture is "X-ray Within
the Memory of Man," is a consulting roentgenologist at New York's
Fifth Avenue Hospital. Harrison Stanford Martland is a professor
of forensic medicine at New York University College of Medicine.
Many readers will undoubtedly find his lecture titled "Dr. Watson
and Mr. Sherlock Holmes" the most engrossing one. Other
doctorauthors are more involved in academic areas of medicine and
teaching. Reginald Burbank is the chairman of the Section of
Historical and Cultural Medicine at the New York Academy of
Medicine. He lectured on "Medicine and the Progress of
Civilization." Raymond Pearl, whose selection is "The Search for
Longevity," is a professor of biology at Johns Hopkins
University.

The authors' high professional standing and involvement in
specialized areas do not get in the way of their aim to speak to
a general audience. They are all skilled writers and effective
communicators. As the titles of some of the lectures noted in the
previous paragraph indicate, the seven selections of "Landmarks
in Medicine" focus on the human-interest side of medicine rather
than the scientific or technological. Even the two with titles
which seem to suggest concern with technical aspects of medicine
show when read to take up the human-interest nature of these
topics.

"The Meaning of Medical Research", by Dr. Alfred E. Cohn of the
Rockefeller Institute for Medical Research, is not so much about
methods, techniques, and equipment of medical research, but is
mostly about the interinvolvement of medical research, the
perennial concern of individuals with keeping and recovering good
health, and social concerns and pressures of the day. "The
meaning of medical research must regard these various social and
personal aspects," Cohn writes. In this essay, the doctor does
answer the questions of what is studied in medical research and
how it is studied. And he answers the related question of who
does the research. But his discussion of these questions leads to
the final and most significant question "for what reason does the
study take place?" His answer is "to understand the mechanisms at
play and to be concerned with their alleviation and cure." By
"mechanisms," Cohn means the natural--i. e., biological--causes
of disease and illness. The lay person may take it for granted
that medical research is always principally concerned with
finding cures for medical problems. But as Cohn goes into in part
of his lecture, competition for government grants or professional
or public notoriety, the lure of novel experimentation, or
research mainly to justify a university or government agency can,
and often do, distract medical researchers and their associates
from what Cohn specifies should be the constant purpose of
medical research. Such purpose gives medicine meaning to
humankind.

The second lecture with a title sounding as if it might be about
a technical feature of medicine, "X-ray Within the Memory of
Man," is a historical perspective on the beginnings of the use of
x-ray in medicine. Its author Lewis Cole was a pioneer in the
development of x-rays in the late 1800s and early1900s. He mostly
talks about the development of x-ray within his memory. In doing
so, he also covers the work of other pioneers, notably William
Konrad Roentgen and Thomas Edison. Roentgen was a "pure
scientist" who discovered x-rays almost by accident and at first
resented the application of his discovery to practical uses such
as medical diagnosis. Edison, the prodigious inventor who was
interested only in the practical application of scientific
discoveries, and his co-worker Clarence Dally enthusiastically
investigated the practical possibilities of the discoveries in
the new field of radiation. Dally became so committed to his work
in this field that he shortly developed an illness and died. At
the time, no on knew about the dangers of prolonged exposure to
x-rays. But sensing some connection between his co-worker's
untimely death and his work with x-rays, Edison stopped his own
investigations.

Cole himself became involved in work with x-rays during his
internship at Roosevelt Hospital in New York City in 1898 and
1899. His contribution to this important field was in the area of
interpretation of what were at the time primitive x-rays and
diagnosis of ailments such as tuberculosis and kidney stones.
Cole writes in such a way that the reader feels she or he is
right with him in the steps he makes in improving the use of x-
rays. He adds drama and human interest to the origins of this
important medical technology. The lecture "Dr. Watson and Mr.
Sherlock Holmes" uses the popular mystery stories of Arthur Conan
Doyle to explore the role of medicine in solving crimes,
particularly murder. In some cases, medical tests are required to
figure out if a crime was even committed. This lecture in
particular demonstrates the fundamental role played by medicine
in nearly all major areas of society throughout history. The
seven collected lectures have broad appeal. All of them are
informative and educational in an engaging way. Each is on an
always interesting topic taken up by a professional in the field
of medicine obviously skilled in communicating to the general
reader. The authors seem almost mind readers in picking out the
most fascinating aspects of their subjects which will appeal to
the lay readers who are their intended audience. While meant
mainly for lay persons, the lectures will appeal as well to
doctors, nurses, and other professionals in the field of medicine
for putting their work in a broader social context and bringing
more clearly to mind the interests, as well as the stake, of the
public in medicine.


                            *********

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 2016.  All rights reserved.  ISSN 1529-2754.

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

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

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


                 * * * End of Transmission * * *