/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160622.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 22, 2016, Vol. 17, No. 122 Headlines B E L G I U M BANIMMO SA: Court Extends Urbanove's Reorganization Procedure F R A N C E DELACHAUX SA: S&P Revises Outlook to Neg. & Affirms 'B+' CCR G E R M A N Y HEIDELBERGCEMENT AG: Egan-Jones Hikes FC Sr. Unsec. Rating to BB H U N G A R Y ZSOLNAY PORCELANMANUFAKTURA: Nemzeti Nonprofit Appoints Custodian L U X E M B O U R G ARCELORMITTAL SA: Egan-Jones Cuts FC Sr. Unsec. Rating to B N E T H E R L A N D S ARCOS DORADOS: Fitch Affirms 'BB+' LT Issuer Default Ratings LEOPARD CLO V: S&P Affirms 'CCC-' Rating on Class F Notes S P A I N BBVA-6 FTPYME: Fitch Raises Rating on Class B Notes to 'BBsf' TP FERRO: Files Debt Restructuring Proposal T U R K E Y FINANSBANK AS: Fitch Withdraws 'BB-' Support Rating Floor U K R A I N E BANK CLASSIC: Deposit Guarantee Fund Seeks Investor FIRST INVESTMENT: Denies Bankruptcy Rumors U N I T E D K I N G D O M ECOTECH LONDON: Put Under External Administration OUTSOURCERY PLC: Goes Into Administration ********* ============= B E L G I U M ============= BANIMMO SA: Court Extends Urbanove's Reorganization Procedure ------------------------------------------------------------- John Martens at Bloomberg News reports that Banimmo SA said the commercial court in Brussels granted Urbanove Shopping Development and its subsidiaries an extension of judicial reorganization procedure until Nov. 30. Banimmo said the delay should enable creditors to reach agreement about a financial plan ensuring completion of mall projects in Verviers and Namur, Bloomberg relates. According to Bloomberg, the company said the new project was proposed to Verviers city council last month and commercialization of both projects continues actively. Banimmo SA is a Belgium-based real estate investment company. The Company aims at acquiring and reconditioning undervalued commercial properties, such as retail space and shopping centers, exhibition and conference centers in Belgium, France and Luxembourg. =========== F R A N C E =========== DELACHAUX SA: S&P Revises Outlook to Neg. & Affirms 'B+' CCR ------------------------------------------------------------ S&P Global Ratings revised its outlook on France-based rail fastening systems manufacturer Delachaux S.A. to negative from stable. At the same time, S&P affirmed its 'B+' long-term corporate credit rating on Delachaux, and S&P's 'B+' issue ratings on the company's senior secured term loan and revolving credit facility (RCF). The recovery rating on Delachaux's debt is '4', indicating S&P's expectation of recovery for noteholders in the lower half of the 30%-50% range. The outlook revision follows the persistent weakening in the group's order intake, chiefly in its Rail division, during first- quarter 2016, which has prompted S&P to revise its forecasts for the period 2016-2017 downward. S&P noticed the first signs of volume contraction in the North American rail transportation around the end of 2015, which has further accelerated in recent months, leading key operators to curb their capital spending plans by about 15%-20%. Similarly, sluggish market conditions in mining-led countries such as Brazil, South Africa, and Australia have translated into postponements of a number of projects. Further uncertainties come from the lack of visibility on the political landscape in Spain and the U.K., and thus could affect the rail maintenance program in those countries. In S&P's view, such challenging conditions will prevail over the next six-12 months in Delachaux's key end markets and weigh on the company's revenues and EBITDA generation. S&P doesn't think that potentially flat results to modest upside coming from the two other divisions (Conductic and Metal) will be sufficient to mitigate the poor performance of its Rail division, which accounts for 60% of its revenues (of which two-thirds are derived from maintenance and refurbishment of existing tracks). "In that context, we have revised down our revenue expectations by 7%-9% to about EUR830 million. We consider that management will undertake further restructuring to secure long-term profitability. Despite the resulting one-off erosion in the group's adjusted EBITDA margin, we still think the EBITDA margin will remain in the historical corridor of 13%-15% in 2016-2017. This will translate into credit ratios that remain well established in the highly leveraged category, given the inclusion of non-cash-paying preferred equity certificates anticipated at more than EUR200 million in our debt calculation, with S&P Global Ratings-adjusted funds from operations (FFO) to debt of about 5%- 7% and total debt to EBITDA at 8x-9x," S&P said. "In the meantime, we have reconsidered our position on Delachaux's business risk profile, given the sharp contraction in its order intake, our expected underperformance of the Rail division in 2016, and the pending uncertainties for 2017. Historically, we considered the visibility and stability of cash flow generation from the Rail division was a key supportive factor of Delachaux's business risk profile thanks to the high share of maintenance and repair-related revenues. However, we now think that, given Delachaux's relatively limited scale, any adverse conditions affecting the Rail segment could quickly have a drag on the group's operating performance and pace of deleveraging. Reputational risk further weighs on Delachaux's business risk profile, given that safety is a critical feature for rail products. However, the group does not currently face any significant claims related to this and has a strong historical track record," S&P noted. "We have nevertheless affirmed the ratings at 'B+' because we still think that Delachaux compares better against other European capital goods companies in the fair category (hence our positive comparable rating analysis), in light of the group's leading global market share in a niche market featuring high barriers to entry, the inherent stickiness of the revenue base, and Delachaux's ability to keep its EBITDA margin in the area of 13%- 15%. Furthermore, we acknowledge the group's deleveraging potential, as reflected through our forecast free operating cash flow (FOCF) of EUR55 million on average for 2016-2017, which will contribute to debt amortization, anticipated at about EUR50 million for 2016(of which only EUR3 million are contractually fixed, while broadly EUR18 million refers to the activation of the excess cash flow, leaving approximately EUR30 million for voluntary prepayments). Further supporting the rating is Delachaux's cash interest coverage, which has sustainably been in excess of 3x," S&P said. S&P's revision of the management and governance assessment to fair is neutral for the ratings. The negative outlook reflects the one-in-three likelihood of a downgrade in case of a stiff contraction in the 2016 full year S&P Global Ratings-adjusted EBITDA margin toward 12%, coupled with S&P's view that a rebound is unlikely during the course of 2017. S&P thinks that such a level would translate into credit ratios that would not be commensurate with the current 'B+' rating. This could result from cancellations of significant key contracts or further project postponements. A downgrade could come from the EBITDA margin dipping to about 12%, alongside FOCF dropping to less than EUR20 million, together with cash interest coverage loosening to less than 2.5x. Significant debt-funded acquisitions, and further dividend or other shareholder distribution, leading to an increase in adjusted debt and translating into total debt to EBITDA in excess of 10x could also trigger a downgrade. S&P could revise the outlook to stable if Delachaux were in a position to deliver an EBITDA margin better than S&P's base case and total debt to EBITDA of about 7x while maintaining FFO cash interest coverage in excess of 3x. S&P thinks that some contract launches currently planned for the fourth quarter will be critical for such an achievement. ============= G E R M A N Y ============= HEIDELBERGCEMENT AG: Egan-Jones Hikes FC Sr. Unsec. Rating to BB ---------------------------------------------------------------- Egan-Jones Ratings Company raised the foreign currency senior unsecured rating on debt issued by HeidelbergCement AG to BB from B+ on June 6, 2016. EG also raised the local currency senior unsecured rating on the Company to BB from BB-. HeidelbergCement is a German multinational building materials company headquartered in Heidelberg, Germany. ============= H U N G A R Y ============= ZSOLNAY PORCELANMANUFAKTURA: Nemzeti Nonprofit Appoints Custodian ----------------------------------------------------------------- Christian Keszthelyi at Budapest Business Journal reports that Nemzeti Reorganizacios Nonprofit appointed a custodian to oversee the assets of Zsolnay, as a partnership between a foreign businessman and the city of Pecs continues to unravel. In April, the firm was declared of "special strategic importance" by the Hungarian government, which means special bankruptcy procedures apply to Zsolnay, BBJ recounts. A company close to construction firm West Hungaria Bau initiated a liquidation procedure against Zsolnay after it acquired ownership of a HUF413 million loan that the company had owed to the state-owned Hungarian Development Bank (MFB), BBJ relays, citing Hungarian news agency MTI. According to BBJ, Cabinet Chief Janos Lazar said in the beginning of June that the Hungarian government "backs the efforts by the municipal council of Pecs", which is the minority owner of Zsolnay. He added that the Hungarian government has taken the side of the local council of Pecs in the "Zsolnay matter", BBJ relates. He said that the "apparent owner" of Zsolnay cannot count on further support from state-owned MFB or the government, BBJ notes. =================== L U X E M B O U R G =================== ARCELORMITTAL SA: Egan-Jones Cuts FC Sr. Unsec. Rating to B ----------------------------------------------------------- Egan-Jones Ratings Company lowered the foreign currency senior unsecured rating on debt issued by ArcelorMittal to B from B+ on June 8, 2016. EJR also lowered the commercial paper rating on the company to B from A3. ArcelorMittal S.A. is a multinational steel manufacturing corporation headquartered in Avenue de la Liberte, Luxembourg. ===================== N E T H E R L A N D S ===================== ARCOS DORADOS: Fitch Affirms 'BB+' LT Issuer Default Ratings ------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Arcos Dorados B.V. (AD), Arcos Dorados Holdings Inc. (Arcos), and Arcos' BRL675 million and $US475 million senior unsecured notes at 'BB+'. The Rating Outlook remains Negative. KEY RATING DRIVERS Arcos' ratings reflect its solid business position as the sole franchisee of McDonald's restaurants across Latin America. The company operates 2,141 McDonald's restaurants, 321 McCafes and 2,618 Dessert Centers in 20 countries. Arcos' benefits from McDonald's iconic brand, yet is confronted by several economic challenges facing the region, particularly in its key markets of Brazil and Argentina. The economic headwinds facing many Latin American markets and currency volatility across the region have negatively impacted Arcos' EBITDA generation and increased net lease adjusted leverage. Arcos' is also exposed to capital control risk in Venezuela, and to a lesser extent Argentina following the Argentine Peso free float. Despite these challenges, Arcos continues to make progress in its initiatives to improve its capital structure and reduce costs to partially offset the impact of currency depreciation. Fitch expects the company to reach a net lease adjusted leverage ratio below 4.0x by 2017. NEGATIVE OPERATING ENVIRONMENT Economic challenges and currency volatility across the region have eroded the company's EBITDA. Arcos' cash flow generation is concentrated in Brazil, which Fitch forecasts will contract by 3.8% in 2016. Brazil is by far the company's largest market contributing 45% to sales and 62% to EBITDA in 2015. EXPOSURE TO CURRENCY RISK Arcos is exposed to foreign exchange risk with currency depreciations in Argentina, Venezuela and Brazil, which negatively impacted results in 2015. EBITDA declined to $US217 million in 2015 from $US241 million in 2014 primarily due to the depreciation of the Brazilian real and Argentine peso. During the LTM ended March 31, 2016, EBITDA was $US224 million. Fitch expects continued currency volatility, particularly in Argentina, with projected year-end 2016 revenues and EBITDA to be slightly lower than 2015. EXPOSURE TO CAPITAL CONTROLS Arcos is exposed to exchange controls in its Venezuelan operations. Restrictions imposed by the Venezuelan Central Bank have limited the U.S. dollar supply in that country, which constrains the repatriation of available cash and restricts payment for imported goods as well as royalties. Following measures announced by the local government, Arcos obtained a temporary waiver to reduce royalty payments to McDonald's Corporation in 2012, 2013, and 2014. Venezuela represented about 5% of total sales in 2014. Arcos is also exposed to transferability risk with its Argentine operation. However, this risk is mitigated as its local operation does not generate excess cash with Arcos' headquarters being based in Argentina. IMPROVING CAPITAL STRUCTURE Leverage is currently weak for the rating level. Arcos is in the process of implementing several initiatives to improve its capital structure, including asset sales, asset redevelopments, refranchising and the restructuring of its corporate office. These asset sale related initiatives are expected to generate approximately $200 million over the next three years to be primarily be used to pay down debt. The company has also implemented several cost savings measures which are expected to add 2% to profit margins over the next three years to support EBITDA generation. Fitch expects these initiatives will allow net lease adjusted leverage to improve to below 4.0x to be commensurate with the rating level over the next 12 - 24 months. Net lease-adjusted leverage was 4.3x, improving from 4.8x in 2014. MCDONALD'S FRANCHISE STRENGTH The ratings also incorporate the strength of McDonald's as franchisor and its long standing relationship with Arcos' owners and management. The controlling shareholder of Arcos was the joint venture partner of McDonald's in Argentina for over 20 years and also served as President of the McDonald's South America division from 2004 until the acquisition. On average, the management team has worked for over 12 years at McDonald's. Under the terms of the Master Franchise Agreement (MFA), McDonald's has a call option to repurchase its assets in the region under certain events. Terms of the notes specify that these funds should be applied to debt repayment. The call option price is set as the fair market value of all assets of the operating companies (80% in the case of a material breach), minus debt at operating company and contingencies, plus cash. The MFA requires all group companies to remain current on their financial obligations to avoid a material breach of the agreement. MFA WITH MCDONALDS The MFA sets strict strategic, commercial and financial guidelines for the operations of Arcos, which support the operating and financial stability of the business as well as the underlying value of the McDonald's brand in the region. Arcos is the largest McDonald's franchisee in the world in terms of system-wide sales and number of restaurants. About 75% of the restaurants are operated by Arcos, and the remaining 25% are franchised restaurants. The company's strategy is to open 32 restaurants in 2016 (gross openings), with investments of less than $US120 million. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for Arcos include the following: -- Low single digit traffic declines in Brazil and Caribbean; -- Low single digit traffic increases in SLAD and NOLAD; -- Price increases in line with inflation; -- Payment of $US80 million of 2023 notes in 2016 and payment of remaining 2016 notes; -- EBITDA margin improving to 7.5% in 2016; -- No dividend payments in 2016 and 2017; -- Capex in line with company projections; -- Net lease adjusted leverage declining to below 4.0x by 2017. RATING SENSITIVITIES Arcos' ratings could be negatively affected by significant deterioration of same store sales; and higher than expected investments and dividends, pressuring free cash flow (FCF) and leverage ratios. Additional factors that could lead to consideration of a downgrade include: inability of Argentine and Venezuelan operations to be self-sustaining; failure to comply with the terms of the MFA; and/or a consolidated net lease adjusted debt-to-EBITDAR ratio above 4.0x on a sustained basis. A downgrade of Brazil's sovereign rating would not necessarily trigger a downgrade of Arcos' ratings. The applicable country ceiling for Arcos is Brazil's country ceiling of 'BB+'. In accordance with Fitch criteria, Arcos' Long-Term Foreign-Currency IDR can be rated one to two notches above Brazil's country ceiling given the company's ability to cover hard currency debt service with cash abroad. A return to a Stable Outlook could result from a net lease adjusted leverage ratio below 4.0x on a sustained basis. The ratings could also be positively affected by higher than expected cash generation from investment-grade countries that would lead to a material improvement in leverage metrics such as net lease- adjusted debt levels below 3.0x. LIQUIDITY Arcos had $US266 million in cash and marketable securities as of March 31, 2016, an increase from $US112 million at YE2015 due to the $US167 million secured loan the company received. This loan will be used to pay the company's BRL senior unsecured bond. During the second quarter Arcos launched a tender offer for its BRL notes which was successful and currently the notes have a remaining balance of $US58 million. Arcos has also tendered $US80 million of its 2023 notes with proceeds from asset sales. Liquidity is enhanced by the company's credit and debit card receivables ($US29 million as of March 31, 2016) and meal voucher receivables ($US8 million). It is important to note that the secured loan is secured by credit and debit card receivables from 100 restaurants in Brazil. AD Holdings also had $US35 million of receivables from franchisees. The company also benefits from a $US25 million committed revolving credit facility with Bank of America and a $US25 million facility with JP Morgan. Arcos first entered into this facility in 2011, and renewed it for up to $US25 million (previously $US75 million) on July 30, 2015. This facility matures August 3, 2016. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Arcos Dorados B.V. -- Long-Term Foreign-Currency IDR at 'BB+'; -- Long-Term Local-Currency IDR at 'BB+'. Arcos -- Long-Term Foreign-Currency IDR at 'BB+'; -- BRL675 million senior unsecured Brazilian-real notes due 2016 at BB+'; -- $US473.767 million senior unsecured notes due 2023 at 'BB+'. The Rating Outlook for the corporate ratings is Negative. LEOPARD CLO V: S&P Affirms 'CCC-' Rating on Class F Notes --------------------------------------------------------- S&P Global Ratings raised its credit ratings on Leopard CLO V B.V.'s class C-1, C-2, D, and R Combo notes. At the same time, S&P has affirmed its ratings on the class VFN, A, B, E-1, E-2, and F notes. The rating actions follow S&P's credit and cash flow analysis of the transaction using data from the trustee report dated March 31, 2016 and the application of S&P's relevant criteria. S&P conducted its cash flow analysis to determine the break-even default rate (BDR) for each rated class of notes. The BDR represents S&P's estimate of the maximum level of gross defaults, based on our stress assumptions, that a tranche can withstand and still fully repay the noteholders. S&P used the portfolio balance that we consider to be performing, the reported weighted- average spread, and the weighted-average recovery rates that S&P considered to be appropriate. S&P applied various cash flow stress scenarios using its standard default patterns, and timings for each rating category, combined with different interest stress scenarios as outlined in S&P's criteria. S&P's review of the transaction highlights that the class VFN and A notes, which S&P rates based on the timely payment of interest and ultimate repayment of principal and rank pari passu, have amortized to a note factor (the current notional amount divided by the notional amount at closing) of approximately 7.0%. The transaction has also been deleveraging because the class E and F notes' par value tests are failing. This has resulted in higher available credit enhancement for all classes of notes since S&P's previous review on July 23, 2015. The weighted-average spread earned on the portfolio has decreased to 3.73% from 3.87% and the transaction's weighted-average life has fallen to 4.80 years from 5.00 years. The proportion of 'CCC' rated assets has increased (debt obligations of obligors rated 'CCC+', 'CCC', or 'CCC-'), while there are no defaulted assets in the portfolio. The issuer has entered into a currency option agreement with The Royal Bank of Scotland PLC (BBB+/Positive/A-2). In S&P's opinion, the documented downgrade provisions do not fully comply with its current counterparty criteria. Therefore, in S&P's cash flow analysis, it has assumed that there are no currency options in the transaction in rating scenarios that are above the long- term issuer credit rating on the counterparty plus one notch. Under S&P's non-sovereign ratings criteria and following the stresses that i applies by not giving credit to currency options, the results of our cash flow analysis indicate that the class VFN, A, and B notes can sustain projected defaults at their currently assigned 'AAA' rating level. Due to the class VFN and A notes' amortization, S&P considers the increased credit enhancement for the class C-1, C-2, and D notes to be commensurate with higher ratings than those previously assigned. S&P has therefore raised to 'AA+ (sf)' from 'AA (sf)' its ratings on the class C-1 and C-2 notes. S&P has also raised to 'BBB+ (sf)' from 'BB+ (sf)' its rating on the class D notes. S&P's cash flow analysis indicates that the available credit enhancement for the class E-1, E-2, and F notes is commensurate with the currently assigned ratings. S&P has therefore affirmed its 'CCC+ (sf)' ratings on the class E-1 and E-2 notes, and S&P's 'CCC- (sf)' rating on the class F notes. The class F notes are currently deferring interest due to the failure of the class E par value test. The deferred interest is capitalized and accrues interest. The class R Combo notes comprise class C-2 (70%) and E-2 (30%) components. Their rated balance has decreased to EUR6.15 million from EUR10.0 million through interest distributions from their components. The results of S&P's cash flow analysis indicate that the class R Combo notes can sustain the stresses that it applies at a 'AAA' rating level. S&P has therefore raised to 'AAA (sf)' from 'AA+ (sf)' its rating on this class of notes. Leopard CLO V is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. RATINGS LIST Leopard CLO V B.V. EUR430 Million Floating- And Fixed-Rate Notes Class Rating To From Ratings Raised C-1 AA+ (sf) AA (sf) C-2 AA+ (sf) AA (sf) D BBB+ (sf) BB+ (sf) R Combo AAA (sf) AA+ (sf) Ratings Affirmed VFN AAA (sf) A AAA (sf) B AAA (sf) E-1 CCC+ (sf) E-2 CCC+ (sf) F CCC- (sf) ========= S P A I N ========= BBVA-6 FTPYME: Fitch Raises Rating on Class B Notes to 'BBsf' ------------------------------------------------------------- Fitch Ratings has upgraded BBVA-6 FTPYME, FTA's class B notes and affirmed the class C notes, as follows: EUR42.2 million Class B (ISIN ES0370460026): upgraded to 'BBsf' from 'B-sf'; Outlook Stable EUR32.3 million Class C (ISIN ES0370460034): affirmed at 'Csf'; Recovery Estimate 0% The transaction is a cash flow securitization of a static portfolio of secured and unsecured loans granted by Banco Bilbao Vizcaya Argentaria (BBVA, A-/Stable/F2) to small- and medium- sized enterprises (SMEs) in Spain. The initial balance was EUR1.5 bil. at closing in June 2007. KEY RATING DRIVERS The upgrade of the class B notes reflects the improving performance and the increase in credit enhancement since the last annual review. From May 2015 to April 2016, 90dpd delinquencies have decreased to 0.1% from 2.3%. Cumulative defaults account for 6.30% of the outstanding balance while the weighted average recovery rate remains fairly constant at around 46%. The positive performance expectations have been reflected in the analysis by a decrease in the portfolio's annual probability of default to 3.8% from 4.0%. Credit enhancement for the class B notes increased to 22.0% in April 2016 from 12.5% in June 2015 due to their amortization. The class B notes started to amortize in December 2015. The EUR24 mil. drawn from the guarantee provided by the Kingdom of Spain to repay the class A2(G) notes represented a liability senior to the class B notes and was repaid in full in December 2015. The principal deficiency ledger (PDL) balance had decreased to EUR20.3 mil. in March 2016 from EUR21.9 mil. in June 2015 due to the gross excess spread on class B notes. The PDL accounts for 63% of the class C notes' balance. The 'Csf' rating on the class C notes reflects their under-collateralization due to their subordinated position in the capital structure. Obligor concentration has increased as a result of the portfolio amortization. As of April 2016, the outstanding portfolio was 6.3% of the original portfolio balance. In terms of obligor concentration, 66% of the non-defaulted portfolio was formed by obligors accounting for more than 50 basis points each and the top 10 obligors represented 27% of the non-defaulted balance. The increased concentration has been captured by the asset modelling through a correlation uplift applied to obligors representing more than 50 basis points of the portfolio notional. RATING SENSITIVITIES The ratings are sufficiently robust to support slight deviations from performance expectations. However, a combined increase of 25% in defaults and 25% decrease in recovery rates could result in a downgrade of the class B notes to 'B+sf' or below. The class C notes' rating is at a distressed level and is therefore unlikely to be affected by a further deterioration of the pool. DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. TP FERRO: Files Debt Restructuring Proposal ------------------------------------------- Luca Casiraghi at Bloomberg News reports that TP Ferro has filed a debt restructuring proposal to the Spanish court. The company said in an e-mailed statement the plan needs creditors' approval, Bloomberg relates. According to Bloomberg, the Court in Girona, Spain, is set to rule on plan in next few days. Creditors, Bloomberg says, will have to vote on the plan on Sept. 15 if approved by the court. TP Ferro is a Franco-Spanish rail operator. =========== T U R K E Y =========== FINANSBANK AS: Fitch Withdraws 'BB-' Support Rating Floor --------------------------------------------------------- Fitch Ratings has upgraded Finansbank A.S.'s Long-Term Foreign Currency Issuer Default Rating (IDR) to 'BBB' from 'BBB-', Long- Term Local Currency IDR to 'BBB+' from 'BBB-, 'Short-Term IDRs to 'F2' from 'F3' and National Long-Term Rating to 'AAA(tur)' from 'AA+(tur).' The Support Rating has been upgraded to '2' from '3'. The ratings have been removed from Rating Watch Positive (RWP) and the Outlooks on the Long-Term IDRs and National Long-Term Rating are Stable. A full list of rating actions is at the end of this rating action commentary. The rating actions follow the acquisition of a 99.81% stake in Finansbank by Qatar National Bank (QNB; AA-/Stable) on 15 June 2016. Finansbank's IDRs, National Rating and Support Rating have been upgraded because Fitch believes QNB would be very likely to provide support to its subsidiary, if required. QNB's ability to provide support could be moderately constrained by Qatari regulatory limits in respect of the amount of support banks can extend to their foreign subsidiaries, but in Fitch's view, these limits are unlikely to be binding. The Support Rating Floor (SRF) has been affirmed and withdrawn, as Fitch only assigns SRFs to banks whose primary source of external support is considered to be the sovereign. This is no longer the case for Finansbank. Finansbank's Viability Rating is unaffected. KEY RATING DRIVERS FINANSBANK IDRS, NATIONAL RATINGS AND SENIOR DEBT Finansbank's IDRs, National and Support Ratings are now driven by potential support from QNB. The Stable Outlook mirrors that on the Turkish sovereign. Fitch views Finansbank as a strategically important subsidiary for QNB and believes there is a high probability it would receive support from its parent. However, Finansbank's Long-Term Foreign Currency IDR is constrained by Turkey's 'BBB' Country Ceiling. Its 'BBB+' Long- term local currency IDR also takes into account country risks. QNB's own ratings are driven by Fitch's expectation of a very high probability of support from the Qatari authorities should it be required. Finansbank's Short-Term IDRs have been upgraded to 'F2', the higher of the two possible Short-Term IDRs corresponding to its Long-Term IDR of 'BBB', reflecting Fitch's view of potential liquidity support from QNB. FINANS LEASING IDRS AND NATIONAL RATINGS The Long- and Short-Term IDRs and National Ratings of Finans Finansal Kiralama A.S. (Finans Leasing) are equalized with those of its direct parent, Finansbank, reflecting Fitch's view that it is a core, highly integrated, subsidiary of the bank. The upgrade of the Short-Term IDRs to 'F2' from 'F3' reflects potential liquidity support from Finansbank and, ultimately, QNB. RATING SENSITIVITIES IDRS, NATIONAL RATINGS AND SENIOR DEBT OF FINANSBANK Finansbank's IDRs, National and potentially also its Support Rating could be downgraded in the event of i) a weakening of the parent bank's ability to provide support if this is reflected in a multi-notch downgrade of its Long-Term IDRs; ii) a downgrade of Turkey's sovereign rating and revision of its Country Ceiling; or iii) a weakening in the parent bank's propensity to support its subsidiary. None of these scenarios is currently expected by Fitch. Finansbank's Long-Term Foreign Currency IDR could be upgraded if Turkey's Country Ceiling is revised upwards. An upgrade of the Long-Term Local Currency IDR would be contingent on a Turkish sovereign upgrade. IDRS, NATIONAL RATINGS AND SUPPORT RATINGS OF FINANS LEASING Finans Leasing's ratings are sensitive to any changes in (i) Finansbank's ratings; and (ii) Fitch's view of the propensity and ability of Finansbank to provide support in case of need. The rating actions are as follows: Finansbank A.S. Long-Term Foreign Currency IDR: upgraded to 'BBB' from 'BBB-'; off RWP; Stable Outlook Long-Term Local Currency IDR: upgraded to 'BBB+' from 'BBB-'; off RWP; Stable Outlook Short-Term Foreign and Local Currency IDRs: upgraded to 'F2' from 'F3'; off RWP National Long-term Rating: upgraded to 'AAA(tur)' from 'AA+(tur)'; off RWP; Stable Outlook Viability Rating of 'bbb-' unaffected Support Rating: upgraded to '2' from '3'; off RWP Support Rating Floor: withdrawn at 'BB-' Senior unsecured Long-Term rating upgraded to 'BBB' from 'BBB-'; off RWP Senior unsecured Short-Term rating upgraded to 'F2' from 'F3'; off RWP Finans Finansal Kiralama A.S. Long-Term Foreign Currency IDR: upgraded to 'BBB' from 'BBB-'; off RWP; Stable Outlook Long-Term Local Currency IDR: upgraded to 'BBB+' from 'BBB-'; off RWP; Stable Outlook Short-Term Foreign and Local Currency IDRs: upgraded to 'F2' from 'F3'; off RWP Support Rating affirmed at '2' National Long-Term Rating: upgraded to 'AAA(tur)' from 'AA+(tur)'; off RWP; Stable Outlook ============= U K R A I N E ============= BANK CLASSIC: Deposit Guarantee Fund Seeks Investor --------------------------------------------------- Interfax-Ukraine reports that the Individuals Deposit Guarantee Fund has announced a tender to select an investor to remove insolvent Bank Classic (Dnipro) from the market. The fund reported that the options for removing the bank from the market include liquidation of the bank, selling its assets and liabilities to the accepting bank; the creation of a transition bank and its transfer to the investor with assets and liabilities and further liquidation of the insolvent bank; and the sale of the insolvent bank, Interfax-Ukraine relates. According to Interfax-Ukraine, the fund said that the sum to be refunded to the bank's depositors as of June 14 was UA 457,600. The Deposit Guarantee Fund on June 14 introduced interim administration at Bank Classic in keeping with a decision by the National Bank of Ukraine (NBU) dated June 14, 2016, on designating the bank as being insolvent, Interfax-Ukraine recounts. The NBU board passed decision No. 67-rsh/BT on June 14 to recognize Bank Classic, which is under control of businessman Serhiy Dumchev, as insolvent in connection with the bank's failure to bring the structure of its ownership in line with legislation within 180 days since it was designated as a problem one, Interfax-Ukraine relates. Bank Classic was founded in 1995. It ranked 95th among 109 operating banks as of April 1, 2016, in terms of overall assets worth UAH 265.755 million, according to the NBU. FIRST INVESTMENT: Denies Bankruptcy Rumors ------------------------------------------- Interfax-Ukraine reports that First Investment Bank (PINbank) has denied information that the bank would allegedly soon become bankrupt. "Information published by journalist Oleksandr Dubynsky that PINbank would allegedly soon become bankrupt is untrue. The journalist on his Facebook page using 'they say' words as a source of information without any documentary evidence reported that the bank is allegedly bankrupt," Interfax-Ukraine quotes the bank as saying on its website. "In respect to concerns of the bank's clients caused by media reports PINbank officially informs that the operation of the financial institution completely meets all the requirements set by the National Bank of Ukraine (NBU)." Board Chairperson Iryna Kolesnyk said that current operations of the bank are usual and all payments are settled meeting the terms, Interfax-Ukraine relates. PINbank was founded in 1997. PINbank ranked 57th among 109 operating banks as of April 1, 2016, in terms of total assets worth UAH 1.108 billion, according to the NBU. =========================== U N I T E D K I N G D O M =========================== ECOTECH LONDON: Put Under External Administration ------------------------------------------------- Plasteurope.com reports that Ecotech London has been placed under external administration. Ecotech is the exclusive UK partner of STF Maschinen- & Anlagenbau, whose machines are used to recycle 70% of Germany's total regrind volumes, Plasteurope.com discloses. In September 2014, Ecotech opened a PET recycling plant in East London capable of processing more than 18,000 t/y of PET bottle, Plasteurope.com relates. Ecotech London is a UK-based PET recycler. The company specializes in the regrinding of PET and is capable of processing clear and coloured bottles, preforms, as well as post-industrial PET scrap. OUTSOURCERY PLC: Goes Into Administration ----------------------------------------- On June 16, 2016, Sam Woodward -- swoodward@uk.ey.com -- and Simon Edel of Ernst & Young LLP were appointed as Joint Administrators of Outsourcery Plc and three subsidiary companies -- Outsourcery Group Limited, Outsourcery Holdings Limited and Outsourcery Hosting Limited -- pursuant to Paragraph 22 of Schedule B1 to the Insolvency Act 1986. The administration appointments were made by the Board of Outsourcery following the previously announced proposed agreement to sell substantially the entire business and assets of the Companies to GCI Network Solutions Limited. Outsourcery Plc is a UK-based independent Cloud Services Provider founded in 2007 ********* 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 * * *