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

                           E U R O P E

           Thursday, March 9, 2017, Vol. 18, No. 049


                            Headlines


F R A N C E

NEWCO SAB: Moody's Assigns (P)B2 Corporate Family Rating
NEWCO SAB: S&P Assigns Preliminary 'B+' CCR, Outlook Stable


G E R M A N Y

EUROMAR COMMODITIES: Agrees to Sell German Cocoa Factory to Ecom


I R E L A N D

TORO EUROPEAN 3: Moody's Assigns (P)B2 Rating to Class F Notes


I T A L Y

N&W GLOBAL: Moody's Affirms B2 CFR & Alters Outlook to Negative
N&W GLOBAL: S&P Assigns 'B' CCR, Outlook Stable


K A Z A K H S T A N

LONDON-ALMATY JSC: AM Best Affirms C++ Financial Strength Rating


N E T H E R L A N D S

JUBILEE CDO I-R: Moody's Affirms B2 Rating on EUR33.75MM Notes


R U S S I A

CB EXPRESS: Liabilities Exceed Assets, Assessment Shows
INTERREGIONAL POST BANK: Bank of Russia Cancels Banking License
NZBANK JSCB: Liabilities Exceed Assets, Assessment Shows
TATFONDBANK PJSC: Put on Provisional Administration


S P A I N

LIBERBANK SA: Fitch Assigns 'BB-(EXP)' Rating to Sub. Notes


U N I T E D   K I N G D O M

FINSBURY SQUARE 2017-1: Moody's Assigns Caa2 Rating to Cl. X Debt
FINSBURY SQUARE 2017-1: Fitch Assigns 'Bsf' Rating to Cl. D Notes
LEYTON ORIENT: Faces Threat of Liquidation Due to Unpaid Tax Bill
PUKKA PADS: Filing Factory Put Into Administration
SOUTHERN PACIFIC 04-2: S&P Raises Rating on Cl. E Notes to 'BB+'

STRICKLANDS PET: Set to Close on March 31
TATA STEEL UK: To Close Final Salary Pension Scheme to Accruals


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F R A N C E
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NEWCO SAB: Moody's Assigns (P)B2 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has assigned a (P)B2 corporate family
rating (CFR) to NewCo Sab Midco S.A.S. (Cerba), a European
clinical laboratory network operator.

The rating agency has concurrently assigned (P)B1 ratings to the
EUR544 million senior secured term loan B due 2024, the EUR175
million revolving credit facility (RCF) due 2023, and the EUR250
million senior secured instruments due 2024, all to be
borrowed/issued by NewCo Sab Bidco S.A.S.

Finally, Moody's has also assigned a (P)Caa1 rating to the EUR180
million senior unsecured instruments due 2025, to be issued by
NewCo Sab Midco S.A.S. The rating outlook on all ratings is
stable.

The rating action follows the announcement on January 22,
2017 that an exclusivity agreement has been signed for a
transaction, under which funds managed and advised by Partners
Group and PSP Investments will become the majority owners of
Cerberus Nightingale 1 S.A. (Cerba's current holding company). The
transaction will see the existing management retain a minority
stake and implies an enterprise value for Cerba of around EUR1.9
billion.

The rating action reflects the following inter-related drivers:

-- Moody's estimates that Cerba's leverage, as measured by
   Moody's-adjusted debt/EBITDA, is high at 6.5x at closing of
   the acquisition compared to 6.0x as of September 30, 2016

-- Moody's expects that Cerba's leverage will slowly decrease
   towards 6.0x by the end of 2018 on the back of acquisition
   synergies, mid-single-digit revenue growth, and improving mix
   of tests

The ratings have been assigned on the basis of Moody's
expectations that the transaction will close as expected in the
first or second quarter of 2017 subject to regulatory approvals.
Cerba's current ratings remain unchanged. After the closing of the
acquisition and repayment of the existing debt, Moody's expects to
withdraw the existing B2 CFR and the B2-PD PDR ratings of Cerberus
Nightingale 1 S.A., the B2 rating of the EUR570 million senior
secured instruments due 2020, issued by Cerba Healthcare S.A.S.,
and the Caa1 rating of the EUR145 million senior unsecured
instruments due 2020, issued by Cerberus Nightingale 1 S.A.

Moody's issues provisional ratings in advance of the final sale of
securities and such ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavour to assign a
definitive CFR and definitive ratings to the debt instruments.
Definitive ratings may differ from provisional ratings.

RATINGS RATIONALE

"Cerba's leverage is high at 6.5x pro forma for the acquisition
and debt repayment, which makes its (P)B2 CFR weakly positioned
within its rating category with little headroom for
underperformance. Nonetheless, Moody's take comfort that company
will have a good FCF (free cash flow before acquisitions) to debt
ratio of around 5% and an interest coverage ratio of around 2.7x.
Moody's also expects that the company will reduce leverage towards
6.0x by the end of 2018. Although Cerba has a good track record in
bolt-on and more sizable acquisitions, as evidenced by notable
synergies from the acquisition of Novescia, the pace of
deleveraging may slow down as the company expands, particularly
into new markets. Cerba will likely use its free cash flow largely
for acquisitions, limiting its deleveraging on a net basis", says
Andrey Bekasov, AVP and the lead analyst for Cerba.

"Cerba's EBITDA growth will be driven by mid-single-digit organic
revenue growth and cost efficiencies including synergies from
completed acquisitions. Its revenue growth will be mainly driven
by the specialized tests division (with improving product mix) and
routine tests in France (with modest market share gains). Moody's
expects that the central lab division's revenue will grow in the
mid-single-digit percent range over 2017/18 on the back of the
improving order book" adds Andrey.

NewCo Sab Midco S.A.S.'s (Cerba) (P)B2 corporate family rating
(CFR) reflects (1) the company's vertical integration within
clinical pathology, allowing for synergies between its three
operating segments; (2) high barriers to market entry as a result
of complex logistics, as well as the company's scientific
competencies, brand recognition, and strong competitive
positioning in its markets; and (3) its high profitability, as
measured by Moody's-adjusted EBITDA margin of around 24%, which is
above average for the industry.

Conversely, the rating reflects (1) the company's high leverage of
6.5x, as measured by Moody's-adjusted debt/EBITDA, at closing of
the acquisition; (2) Moody's expectations that Cerba's cash
outflow on acquisitions will likely exceed free cash flow (FCF)
generation because Cerba continues to play an active role in the
consolidation of the French clinical diagnostic market; and (3)
high concentration of revenues in France and exposure to moderate
price cuts.

Moody's estimates that at closing of the acquisition, Cerba will
have adequate liquidity supported by free cash flows of around
EUR60 million in 2017 (before acquisitions, but after capex of
around 4.5% of sales); cash of EUR30 million; and the EUR175
million revolving credit facility (RCF) although it will likely be
drawn for acquisitions. Moody's anticipates that Cerba will have
good headroom under its single financial maintenance covenant (a
"springing" net senior secured leverage covenant tested only for
the benefit of the RCF lenders if the RCF is drawn by or more than
35%).

The (P)B1 ratings of the EUR250 million senior secured
instruments, the EUR544 million first lien senior secured term
loan, and the EUR175 million revolving credit facility are one
notch above the (P)B2 CFR reflecting the loss absorption cushion
from the EUR180 million senior unsecured instruments rated
(P)Caa1.

RATING OUTLOOK

The stable outlook reflects Moody's expectations that Cerba's
leverage, as measured by Moody's-adjusted debt/EBITDA, will trend
towards 6.0x for the next 12-18 months.

WHAT COULD CHANGE THE RATING UP/DOWN

The upgrade is unlikely in the next 12-18 months because of high
opening leverage of 6.5x, however a positive rating pressure could
arise if:

* Cerba's leverage, as measured by Moody's-adjusted debt/EBITDA,
   were to trend towards 5.0x

Conversely, a negative rating pressure could arise if:

* Cerba's leverage, as measured by Moody's-adjusted debt/EBITDA,
   were to fail to reduce towards 6.0x over the next 12-18 months
   or the pace of its deleveraging were to slow down;

* Liquidity were to weaken; or

* Any significant debt-financed acquisition were to put negative
   pressure on credit metrics

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Cerba, headquartered in Paris, France, is the fourth largest
private clinical laboratory testing network in Europe with revenue
of EUR633 million based on the last twelve months to 30 September
2016.

Their GLC IFS rating outlooks have been changed to positive from
stable, whereas their NS IFS rating outlooks remain stable:


NEWCO SAB: S&P Assigns Preliminary 'B+' CCR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B+'
long-term corporate credit rating to NewCo SAB MidCo SAS (NewCo
MidCo) parent company of France-based biological diagnostics
laboratory operator Cerba HealthCare SAS (Cerba).  The outlook is
stable.

At the same time, S&P assigned its preliminary 'B+' issue rating
to the proposed EUR544 million term loan B, EUR250 million senior
secured debt issues, and EUR175 million revolving credit facility
(RCF) issued by NewCo SAB BidCo S.A.S.(NewCo Bidco).  The recovery
rating on these issues, which rank pari passu, is '4', indicating
S&P's expectation of average recovery (30%-50%; rounded estimate:
45%) in the event of a payment default.

S&P is also assigning its preliminary 'B-' issue rating to the
subordinated EUR180 million senior unsecured debt instruments
issued by NewCo SAB MidCo S.A.S. (NewCo Midco).  The recovery
rating of '6' indicates S&P's expectation of negligible (0%-10%)
recovery in the event of a payment default.

The final ratings will be subject to the successful closing of the
proposed issuance and will depend on our receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of the
final ratings.  If the final debt amounts and the terms of the
final documentation depart from the materials S&P has already
reviewed, or if it do not receive the final documentation within
what S&P considers to be a reasonable time frame, it reserves the
right to withdraw or revise its ratings.

NewCo MidCo has agreed to acquire France-based biological
diagnostics operator, Cerba Healthcare, and intends to issue
EUR794 million of senior secured debt and EUR180 million of senior
subordinated debt to partly fund the acquisition and refinancing
of existing debt totaling EUR858 million.  The proposed issuances
will see total debt increase by approximately EUR116 million,
although S&P understands that these proceeds will also help to
fund recently agreed bolt-on acquisitions and increase cash
balances.  In S&P's view, this supports the group's ability to
deleverage and to continue to generate accretive earnings.

The newly combined group plans to issue a new EUR544 million term
loan B and senior secured debt issues totaling EUR250 million
through its financing subsidiary NewCo Bidco maturing in seven
years.  NewCo MidCo will also issue EUR180 million of senior
unsecured debt issues with a tenor of eight years.  The remaining
enterprise value will be funded with an equity injection of at
least EUR800 million from the group's owners and management team,
while the group will also have a new revolving credit facility of
EUR175 million to support its liquidity position.

S&P views the group's new owners as financial sponsors, given that
private equity firms pursue an aggressive financial strategy to
maximize shareholder return.  This assessment is supported by
S&P's forecast credit metrics for the group, including S&P Global
Ratings-adjusted debt to EBITDA of 6x-7x and funds from operations
(FFO) to debt of less than 10%.  S&P's estimates of debt include
the new proposed instruments totaling EUR974 million and EUR106
million of bilateral loans and finance leases, with an additional
EUR20 million of operating leases and pension obligations.  S&P
expects the group to record adjusted EBITDA of at least EUR150
million in 2017, given its strategic focus on increasing higher-
margin specialty testing and continuous cost optimization.  S&P
forecasts that the increasing EBITDA base will be supported by
further bolt-on acquisitions that should help the group's
deleveraging.  S&P considers that the long-dated maturity profile
after the buy-out transaction of at least seven years limits
refinancing risk.  S&P also projects that the group should
comfortably cover its future interest obligations, given the
expected pricing of the debt tranches, with FFO to cash interest
above 2.5x and fixed-charge coverage above 2.2x respectively.

NewCo MidCo, through its operating entity Cerba, enjoys a leading
market position in diagnostic testing services in France, Belgium,
and Luxembourg (Belux) and in each of its routine, specialty, and
central lab segments.  The group has managed to substantially
increase its scale following recent acquisitions, most notably
Novescia in 2015, although we note that the core market remains
largely fragmented.  The successful integration of this
acquisition was supported by management's focus on realizing cost
synergies in procurement and logistics while enhancing
productivity across the combined group.  S&P expects the group to
continue to pursue this strategy, with an increasing proportion of
higher-margin specialty volumes in the activity mix, allowing the
group to maintain adjusted margins of 22%-25% in S&P's forecasts.

Reimbursement risk is low, however, as the majority of payers are
from the state and private health insurers.  There is no
dependence on an individual patient or contract, which mitigates
any substantial volatility in earnings for the group.  S&P also
notes that the increasing popularity of preventive and predictive
diagnostic testing, outsourcing trends, an ageing population, and
the prevalence of lifestyle diseases support potential volume
growth in the group's markets.  The regulatory environment,
required capital investment, and operational expertise constitute
good barriers to entry, though S&P notes that there is limited
opportunity for Cerba to differentiate itself in routine testing
services.

The group generates over 50% of its revenues in France, with
Belgium and Luxembourg accounting for the majority of the
remainder.  This earnings concentration means it is significantly
exposed to the vagaries of political decision-making in these
jurisdictions.  Tariff reductions in recent years have driven the
group to improve operating efficiency in order to absorb the
pricing pressures and maintain profitability.  This risk remains,
however, and given the group's relatively modest revenue base of
EUR620 million-EUR650 million annually, S&P currently assess the
business risk profile as fair.

S&P applies a positive comparable rating analysis (CRA) modifier
to reflect its view of the issuer's credit characteristics in
aggregate.  This primarily reflects S&P's view of the debt burden
and free operating cash flow generation that would leave NewCo
MidCo with more headroom to manage any unexpected operational or
financing challenges.  In particular, S&P views the ratio of FFO
to cash interest at the upper end of the 2x-4x range, and adjusted
debt to EBITDA trending close to or below 6x, as strong relative
to the 'b' anchor.  S&P's base-case forecasts take account of the
group's track record of successfully integrating newly acquired
companies, while realizing planned synergies, gradually improving
its EBITDA margin, and generating positive FOCF.  Margins are
already at the higher end of the range that S&P views as average
for health care service providers.

S&P's base case assumes:

   -- GDP growth of 1.3% in France and 1.4% in Belgium in 2016.

   -- A limited correlation between these rates and the group's
      revenue growth.  This is because the group's revenue
      performance is driven by tariffs set by the state and
      insurers, and S&P uses GDP as an indication of the state's
      willingness to pay for health care.

   -- No tariff adjustment in France or Belux in 2017 or 2018
      following recent reductions and completed negotiations with
      authorities.

   -- EBITDA margins of 22%-25% in 2017 and 2018 following the
      successful integration of Novescia and an increasing
      proportion of specialty tests in the volume mix.

   -- Annual capital expenditure of about 4.5%-5.5% of revenues.

   -- Bolt-on acquisitions of EUR50 million-EUR100 million in
      S&P's forecasts.

   -- No dividend payments.

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

   -- An weighted-average adjusted debt-to-EBITDA ratio of about
      6.4x.

   -- Adjusted FFO cash interest coverage of 2.5x-3.5x in 2017
      and 2018.

   -- Fixed charge cover comfortably above 2.2x.  Free operating
      cash flow generation of EUR50 million-EUR80 million over
      the next 3 years.

S&P views NewCo MidCo's liquidity as adequate, indicating that
sources of cash will cover uses by at least 1.2x over the next 12
months.  S&P assess the liquidity position on an ongoing basis,
and as such it do not include the one-off impact of the
refinancing transaction and buy-out transaction in S&P's
calculations.

S&P anticipates that the group will prioritize using free cash
flow for future acquisitions or funding operational improvements,
and as such S&P considers that it could be challenging for it to
absorb a high-impact, low-probability event without refinancing.
While sources of liquidity sufficiently exceed uses to qualify for
a stronger liquidity assessment, S&P has limited visibility and
track record of solid support from banks throughout a period of
distress or underperformance.  S&P therefore maintains an adequate
liquidity assessment at this time.

The stable outlook reflects S&P's view that NewCo MidCo will
continue to pursue an acquisition growth strategy to solidify its
leading market positions, increase scale, and successfully grow
its earnings base.  S&P forecasts group profitability to remain
robust at above 20%, reflecting continued efficiency gains and
focus on cost optimization, supplemented by increasing volumes
coming from the higher-margin specialty tests.  S&P views the
company's ability to generate positive FOCF despite pressure on
reimbursement tariffs, and comfortably record adjusted FFO cash
interest coverage at the upper end of the 2x-4x range, as
commensurate with the 'B+' rating.

S&P could take a negative rating action if the group's ability to
comfortably cover its fixed-charge costs is reduced, specifically
if adjusted FFO cash interest coverage drops to the lower end of
the 2x-4x range or if its FOCF cushion was materially reduced.
This would most likely occur if operating margins deteriorate due
to the group's inability to profitably integrate newly acquired
operations; if there is stronger pricing pressure or lower test
volumes (for example, as a result of doctors' strikes or a loss of
key accounts); or if the group undertakes a sizable debt-financed
acquisition that would lead to increased cost of funding not
offset by earning contributions.

An upgrade is unlikely over the next 12 months, as S&P projects
debt to EBITDA to remain above 5x, its threshold for a highly
leveraged financial risk profile.  This assumption reflects that
the company is operating in a consolidating industry and is likely
to use available cash for acquisitions or other business
investments.

Nevertheless, S&P would likely take a positive rating action if
the group was able to sustain adjusted debt to EBITDA of less than
5x, supported by a financial policy commitment on behalf of the
shareholders.



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G E R M A N Y
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EUROMAR COMMODITIES: Agrees to Sell German Cocoa Factory to Ecom
----------------------------------------------------------------
Isis Almeida and Tino Andresen at Bloomberg News report that
bankrupt grinder Euromar Commodities GmbH agreed to sell its
German cocoa-processing factory to trader Ecom Agroindustrial
Corp.

According to Bloomberg, people familiar with the matter said the
factory in Fehrbellin is being sold after Euromar filed for
insolvency in December following last year's Brexit vote.

Euromar, the European affiliate of U.S. cocoa trader Transmar
Commodity Group, ran into trouble after losing money on forward-
purchase contracts, Bloomberg relates.  Its problems worsened
after the U.K.'s June vote to leave the European Union weakened
the pound and drove up London cocoa futures, which are priced in
sterling, Bloomberg discloses.

The people, as cited by Bloomberg, said the sale doesn't include
the firm's inventory or forward book.

Euromar Commodities GmbH is a cocoa company.

The Neuruppin local court opened insolvency proceedings for
Euromar Commodities on March 6, 2017.  Rolf Rattunde has been
appointed insolvency administrator.



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TORO EUROPEAN 3: Moody's Assigns (P)B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to nine
classes of debts to be issued by Toro European CLO 3 Designated
Activity Company:

-- EUR211,500,000 Class A Secured Floating Rate Notes due 2030,
    Assigned (P)Aaa (sf)

-- EUR24,500,000 Class B-1 Secured Floating Rate Notes due 2030,
    Assigned (P)Aa2 (sf)

-- EUR7,500,000 Class B-2 Secured Floating Rate Notes due 2030,
    Assigned (P)Aa2 (sf)

-- EUR12,500,000 Class B-3 Secured Fixed Rate Notes due 2030,
    Assigned (P)Aa2 (sf)

-- EUR13,750,000 Class C-1 Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)A2 (sf)

-- EUR4,750,000 Class C-2 Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)A2 (sf)

-- EUR17,500,000 Class D Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)Baa2 (sf)

-- EUR23,000,000 Class E Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)Ba2 (sf)

-- EUR9,750,000 Class F Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale of
financial instruments, but these ratings only represent Moody's
preliminary credit opinions. Upon a conclusive review of a
transaction and associated documentation, Moody's will endeavor to
assign definitive ratings. A definitive rating (if any) may differ
from a provisional rating.

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's is
of the opinion that the collateral manager, Chenavari Credit
Partners LLP ("Chenavari"), has sufficient experience and
operational capacity and is capable of managing this CLO.

TORO EUROPEAN CLO 3 DAC is a managed cash flow CLO. At least 90%
of the portfolio must consist of senior secured loans and senior
secured bonds and up to 10% of the portfolio may consist of
unsecured senior loans, second-lien loans, mezzanine obligations
and high yield bonds. The portfolio is expected to be at least 50%
ramped up as of the closing date and to be comprised predominantly
of corporate loans to obligors domiciled in Western Europe. The
remaining of the portfolio will be acquired during the 6 month
ramp-up period.

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

In addition to the nine classes of notes rated by Moody's, the
Issuer will issue EUR 40,600,000 of Subordinated Notes which will
not be rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published October 2016. The cash
flow model evaluates all default scenarios that are then weighted
considering the probabilities of the binomial distribution assumed
for the portfolio default rate. In each default scenario, the
corresponding loss for each class of notes is calculated given the
incoming cash flows from the assets and the outgoing payments to
third parties and noteholders. Therefore, the expected loss or EL
for each tranche is the sum product of (i) the probability of
occurrence of each default scenario and (ii) the loss derived from
the cash flow model in each default scenario for each tranche. As
such, Moody's encompasses the assessment of stressed scenarios.

Moody's used the following base-case modelling assumptions:

Par Amount: EUR 350,000,000

Diversity Score: 32

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 4.10%

Weighted Average Coupon (WAC): 5.25%

Weighted Average Recovery Rate (WARR): 43.0%

Weighted Average Life (WAL): 8 years

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional ratings assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal.

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A Secured Floating Rate Notes: 0

Class B-1 Secured Floating Rate Notes: -2

Class B-2 Secured Floating Rate Notes: -2

Class B-3 Secured Fixed Rate Notes: -2

Class C-1 Secured Deferrable Floating Rate Notes: -2

Class C-2 Secured Deferrable Floating Rate Notes: -2

Class D Secured Deferrable Floating Rate Notes: -1

Class E Secured Deferrable Floating Rate Notes: 0

Class F Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

Class A Secured Floating Rate Notes: -1

Class B-1 Secured Floating Rate Notes: -3

Class B-2 Secured Floating Rate Notes: -3

Class B-3 Secured Fixed Rate Notes: -3

Class C-1 Secured Deferrable Floating Rate Notes: -3

Class C-2 Secured Deferrable Floating Rate Notes: -3

Class D Secured Deferrable Floating Rate Notes: -2

Class E Secured Deferrable Floating Rate Notes: -1

Class F Secured Deferrable Floating Rate Notes: -1

Further details regarding Moody's analysis of this transaction may
be found in the upcoming pre-sale report, available soon on
www.moodys.com.

Methodology Underlying the Rating Actions:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.



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N&W GLOBAL: Moody's Affirms B2 CFR & Alters Outlook to Negative
---------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR) of N&W
Global Vending S.p.A, the leading European manufacturer of
automatic vending machines, following the announcement to acquire
Saeco Vending S.p.A. ("Saeco Vending") for an undisclosed purchase
price financed through a tap issue of EUR70 million. Concurrently,
Moody's has affirmed the B2 (LGD3) instrument rating first lien
senior secured notes (EUR370 million, out of which EUR70 million
proposed tap issuance) raised by N&W Global Vending S.p.A. The
outlook on the ratings has been changed to negative from stable.

"N&W's B2 CFR balances the company's strong operating profile
evidenced by its very high profitability and its ability to
generate good cash flows and improved business profile following
the acquisition of Saeco Vending with high, and increased,
leverage and still small operations in a fairly mature market",
says Oliver Giani, the lead analyst on N&W.

RATINGS RATIONALE

The B2 CFR and B2-PD PDR are primarily constrained by N&W's (1)
small size despite the acquisition of Saeco Vending which
materially increases revenues by approximately EUR62 million to
roughly EUR361 million and limited product diversification; (2)
high leverage, with Moody's-adjusted debt/EBITDA of around 6.5x
pro-forma for the transaction up from estimated 6.1x in 2016,
which positions N&W weakly in the B2 rating category and includes
the expectation of gradual improvements in the next 12-18 months;
(3) some concentration risk in terms of geographies, with the
majority of revenues being generated in Western Europe, and
customers, with the top three customers representing almost one
third of revenues; and (4) limited revenue visibility, with a
backlog of around one month of sales.

The vending machines market is largely mature with limited growth
potential, but following a period of operators' underinvestment,
the park's average age is reaching the end of its useful life as
per the company's expectation. This development could boost
investments into the park and, with its strong and comprehensive
offering, N&W would benefit from it. However, the timing of that
development is uncertain as the increase in sales to small-to-
medium sized customers realized in 2016 was offset by the negative
performance relating to key big customers in 2016. If there is no
meaningful improvement in investments in the next 6-12 months,
there is a risk that N&W's leverage on a gross debt basis will not
improve, and, therefore, remain outside the level required to
maintain the B2 rating. Given the limited scope of further major
profitability improvements from an already very high level (EBITA
margin of approximately 20% in FY 2016), Moody's would expects
that more meaningful profitability improvements will depend on the
integration of Saeco Vending.

Furthermore, some players in the industry have limited their
investments into the machine park optimizing their machines for
cash flow generation with a significant likelihood that this
environment remains. However, even in such a scenario, Moody's
expects N&W to generate decent positive free cash flow, in line
with its historical track record, which supports the company's
positioning at B2 level.

The B2 ratings are supported by the company's (1) clear market
leadership in its key European markets; (2) very high
profitability, with a Moody's-adjusted EBITA margin at
approximately 20% in 2016 and Moody's expectation that the company
will be able keep its profitability at around 19% after the
integration of Saeco Vending, enabled by the breadth of the
company's product portfolio, constant innovation, profitable
accessories and spare parts business, and strong ties to the key
customers in the industry; and (3) asset-light business model,
with fairly low tangible capex requirements and a variable cost
structure that helps to maintain stability of margins and to
support free cash flow generation.

N&W has adequate liquidity following completion of the announced
transaction, supported by a cash balance of approximately EUR50
million as of December 2016 and a revolving credit facility (RCF)
of EUR40 million maturing in 2022 (unrated), with EUR11 million
drawn as of December 2016. Moody's expects that N&W's liquidity
sources including cash on balance sheet, ca. EUR29 million undrawn
RCF, decent free cash flow generation and proceeds from tap issue
amounting to EUR70 million are sufficient to cover its liquidity
needs over the next 12-18 months. The needs include the envisaged
repayment of drawn portion of the RCF, purchase price for
acquiring Saeco Vending, working capital swings as well as capex.
The revolving facility only contains one net leverage covenant
that is being tested only when drawings under the RCF increase
above 35% of the total commitment. The company does not have any
debt maturities until 2023, when the EUR370 million bond matures.

RATIONALE FOR INSTRUMENT RATING

The EUR370 million first lien senior secured notes issued by N&W
Global Vending S.p.A are rated B2, in line with the CFR, despite
the fact that they rank ahead of EUR100 million second lien senior
secured notes (unrated) that could provide some rating uplift from
the level of CFR. However, given the weak positioning of N&W at
B2, Moody's decided not to notch up the EUR370 million above the
level of the CFR.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects material integration risk upon
closing of the fully debt financed transaction as well as a
significant increase in leverage to about 6.5x pro-forma for 2016.
Nevertheless, Moody's expectation is that N&W will in the 12-18
months following the acquisition of Saeco Vending manage to
maintain a Moody's-adjusted EBITA margin in the high teen
percentage range and debt/EBITDA at that will move to 6.0x, while
generating positive free cash flow on a sustainable basis.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Moody's could stabilize the outlook if, following completion of
the Saeco Vending transaction, N&W manages to keep the expected
EBITA-margin decline under control and to swiftly reduce leverage,
indicated by leverage below 6.0x debt/EBITDA by year-end 2018 with
a clear path towards that level until then.

An upgrade would require that N&W shows the ability to sustain its
strong profitability with Moody's adjusted EBITA margin at around
20% and healthy free cash flow generation, while improving Moody's
adjusted gross debt/EBITDA sustainably below 5.0x (around 6.5x for
2016, pro-forma of the transaction).

Moody's could downgrade N&W's ratings, if the company fails to
reduce (1) gross debt/EBITDA, as adjusted by Moody's, to 6.0x by
FY2018; (2) EBITA margin, as adjusted by Moody's, deteriorates
well below 20% on a sustainable basis; (3) free cash flow, as
adjusted by Moody's, deteriorates significantly towards breakeven;
or (4) liquidity position tightens. In addition, any signs of
deteriorating market conditions on a sustained basis could put
pressure on the ratings.

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.

Headquartered in Bergamo, Italy, N&W is the leading European
manufacturer of automatic vending machines for hot and cold drinks
and other food and beverage produces. It also produces coffee
machines designed for use in hotels, restaurants, cafeterias and
offices. The company operates under the two main brands: Necta
(focused on Western and Southern Europe, US and Emerging markets)
and Wittenborg (focused on Northern and Central Europe markets).
In 2016, N&W reported revenue of around EUR300 million, employing
more than 1,400 employees. N&W was acquired by funds controlled by
private equity firm Lone Star (unrated) for a total consideration
of roughly EUR670 million in March 2016. In addition, N&W on
February 24, 2017, announced to acquire Saeco Vending S.p.A. for
an undisclosed purchase price. Saeco Vending, headquartered in
Gaggio Montano,Italy, generated approximately EUR62 million
revenues in 2016 and employs approximately 330 employees.


N&W GLOBAL: S&P Assigns 'B' CCR, Outlook Stable
-----------------------------------------------
S&P Global Ratings said that it assigned its 'B' long-term
corporate credit rating to N&W Global Vending SpA (N&W Group), an
Italy-based manufacturer of vending and coffee machine products.
The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to the group's
EUR370 million first-lien senior secured notes (maturing in 2023)
with a recovery rating of '3'.  Furthermore, S&P assigned its
'CCC+' issue rating to the EUR100 million second-lien notes due
2023 with a recovery rating of '6'.  Finally, S&P assigned its
'B+' issue rating to the EUR40 million revolving credit facility
(RCF) with a recovery rating of '2', reflecting its super senior
position in the structure.

These ratings are in line with the preliminary ratings S&P
assigned to the company on Oct. 3, 2016.

S&P's rating assessment for N&W Group has not changed materially
since S&P assigned its preliminary ratings on Oct. 3, 2016.
However, compared with S&P's original base case, the company is
now in the process of acquiring Saeco Vending SpA from Royal
Philips Group.  The company intends to finance the acquisition
with a EUR70 million tap issuance on top of the existing
EUR300 million first-lien senior secured notes.

Proceeds from the tap will be used to acquire Saeco Vending for
EUR55 million, to pay back EUR11 million drawn amount under the
existing EUR40 million RCF, with the remainder mainly utilized for
transaction costs and related fees.

N&W Group's acquisition of Saeco Vending will be realized through
several steps.  N&W Global Vending SpA will acquire a minority
stake (25%) of Saeco Vending, whereas LSF9 Canto Midco DAC (parent
company of N&W Global Vending SpA) will acquire the remainder.  At
a later stage, in connection with the senior secured notes tap
issuance, N&W Global Vending SpA will acquire the 80% equity
interest from its parent company.  S&P expects the transaction to
be completed in the first half of 2017.

Saeco Vending is the professional business division of the larger
Saeco Group (owned by Royal Philips Group).  This division
designs, manufactures, and sells professional coffee machines in
the following areas: vending machines, hotels/restaurants/cafes
(HoReCa), and office coffee services (OCS).  Saeco Vending has
revenues of EUR60 million-EUR65 million per year and its focus is
mainly on the European markets (about 65% of sales) with two key
brands, Gaggia and Saeco.

In S&P's view, N&W Group's business risk profile is mainly driven
by its leading position in the manufacturing of vending machine
products in Europe, with about EUR300 million in revenues at year-
end 2016.  The company also benefits from relatively good
diversification in its European markets (Italy being its top
market with about 30% of sales in 2016).  Furthermore, S&P
evaluates positively the solid profitability margin, which is
above the industry average, with an adjusted EBITDA margin of
about 24% expected at year-end 2016.

However, the business risk profile is constrained by the maturity
of the vending machine sector, which represents a hurdle to future
growth, in S&P's view.  Over 2009-2016, for example, many vending
operators cut spending on the acquisition of new vending machines
to counter repercussions of the weaker economic conditions in
Europe and a high degree of saturation of vending machine
networks, especially in some core regions, such as Italy.
Finally, S&P notices that there is some customer concentration,
which constrains its assessment of the company's business risk
profile.  However, during 2016, the negative performance in sales
relating to key big customers was offset by an increase in sales
to small-to-medium sized clients.

N&W Group's financial profile assessment is underpinned by Lone
Star Funds' financial-sponsor ownership.  Its S&P Global Ratings-
adjusted ratio of debt to EBITDA is slightly above 10x over the
next two years (including the EUR70 million for the proposed tap
issuance).  The adjusted debt includes also EUR262 million non-
common equity financing, which does not pay cash interests issued
at the top of the group structure.  S&P classifies this non-common
equity financing provided by the shareholders as debt, according
to S&P's criteria.  The adjusted debt-to-leverage ratio without
the shareholder loan would be slightly above 6.0x.

"We anticipate that the company will maintain a good cash
conversion and will generate positive free operating cash flow
(FOCF) over 2016-2018.  However, given the significant amount of
outstanding debt, this will not be sufficient to materially
deleverage, under our base case.  Additionally, considering the
new proposed tap issuance of EUR70 million (not included into the
previous base-case scenario) we also estimate a slight
deterioration in the funds from operations (FFO) cash interest
coverage ratios versus previous assumptions," S&P said.

In S&P's updated base-case scenario for 2016-2018, it assumes:

   -- Flat revenue growth for year-end 2016, and low-single-digit
      organic growth going forward.  S&P expects that annual
      revenues contribution coming from the consolidation of
      Saeco Vending will be around EUR60 million-EUR65 million
      per year.  An S&P Global Ratings-adjusted EBITDA margin of
      about 21% over the next two years accounting for the
      dilutive effect of Saeco Vending.

   -- A higher amount of reported capital expenditure in 2017 of
      about EUR17.5 million due to investments in tangible assets
      and in research and development.

   -- No dividends or additional sizable acquisitions.

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

   -- Adjusted debt to EBITDA of about slightly above 10.0x in
      2017 and 2018 (including the non-common equity financing at
      the top of group structure) and slightly above 6.0x
      excluding it.

   -- Adjusted FFO cash interest coverage of about 2.0x over the
      next two years.

The stable outlook reflects S&P's forecasts that N&W Group's
operational performance should be resilient and that the company
will generate a stable adjusted EBITDA margin of about 21% during
the next 12 months.  In S&P's view, the company's EBITDA margin is
supported by a favorable product/market mix and recent cost-saving
measures implemented by the company at the operating level.  S&P
expects that the company will generate positive FOCF of around
EUR15 million per year thanks to its above-average profitability
and relatively low capital investment requirements.  Under S&P's
base case, it assumes that the company will maintain FFO to cash
interest coverage close to 2x over S&P's forecast horizon.

S&P could lower its rating on N&W Group if its FFO cash interest
coverage slipped below 2x on a permanent basis or if the FOCF
turned negative.  This could arise if the operating conditions in
the company's relevant markets worsened, for example, because
European vending operators continue to cut spending, or if the
integration with Saeco Vending was not effective.  Additionally,
for the current rating level, S&P believes that the existing
headroom for fully debt-funded acquisitions is rather limited.

S&P could take a positive rating action if the company achieved
and consistently maintained FFO cash interest coverage above 3x
and adjusted debt to EBITDA at about 5x.  This would demonstrate
its ability to report substantial positive net cash flow
generation above S&P's current base-case assumption and to use it
to reduce debt.  S&P considers the likelihood of an upgrade to be
remote over the next 12 months considering the significant amount
of outstanding debt.



===================
K A Z A K H S T A N
===================


LONDON-ALMATY JSC: AM Best Affirms C++ Financial Strength Rating
----------------------------------------------------------------
A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-
Term ICR) to "b+" from "b" and affirmed the Financial Strength
Rating of C++ (Marginal) of Insurance Company London-Almaty JSC
(London Almaty) (Kazakhstan).  The outlook of these Credit Ratings
(ratings) is stable.

The upgraded Long-Term ICR reflects London Almay's improving
business profile in Kazakhstan.  Growth of the company's
operations is expected to bring economies of scale and benefit
underwriting performance over the medium term by offsetting the
company's high expense base and reducing volatility.  The ratings
reflect London Almaty's volatile operating performance, strong
risk-adjusted capitalization, under-developed enterprise risk
management (ERM) and the heightened level of country risk exposure
in Kazakhstan.

London Almaty is a mid-tier insurer in Kazakhstan, ranked 13th out
of 26 non-life companies, with gross written premiums of
KZT 6.7 billion (approximately USD 19.6 million) for the year
ended 2016.  The company's business profile has improved during
2016, driven by new business generation from commercial and retail
lines.  This follows a change of company ownership and the
appointment of a new management team during 2015, which has
resulted in a revised business strategy.  Despite the company's
growing business profile, its operations remain relatively small,
susceptible to unexpected regulatory changes and concentrated by
line of business and geography.

The company's operating results, whilst volatile, have been
positive in four out of the past five years (2012-2016).  London
Almaty's annual return on equity has varied between -2.4% and
34.0% during the same five-year period.  Volatile operating
results have been driven by fluctuating investment performance,
reflecting changes in the fair value of the company's invested
assets and from foreign exchange movements following the
devaluation of the Kazakhstan Tenge.  The company's underwriting
operations have been loss making in each of the past three years
(2014-2016), negatively impacting operating results.  Weak
technical performance has been driven principally by the company's
high expense base and lack of scale.

London Almaty's risk-adjusted capitalization remains at a strong
level, supported by retained earnings and a panel of reinsurers
that typically have solid credit quality.  Going forward, the
company's planned underwriting expansion is expected to drive a
significant increase in capital consumption.  However, the current
strong level of risk-adjusted capitalization, along with the
retention of future earnings, is expected to support the projected
underwriting growth.

The company's ERM is considered under-developed when compared with
international standards.  London Almaty's approach to risk
management is focused principally on adhering to local regulatory
guidelines and requirements.  The company's basic approach to risk
management, as well as its exposure to the heightened economic,
political and financial system risks associated with operating in
Kazakhstan, remain negative rating factors.



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


JUBILEE CDO I-R: Moody's Affirms B2 Rating on EUR33.75MM Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the rating on the following
notes issued by Jubilee CDO I-R B.V.:

-- EUR72M Class C Senior Secured Deferrable Floating Rate Notes
    due 2024, Upgraded to Aa3 (sf); previously on Jun 3, 2016
    Upgraded to A1 (sf)

Moody's has also affirmed the ratings on the following notes:

-- EUR594M Class A (current outstanding balance of EUR119.76M)
    Senior Secured Floating Rate Notes due 2024, Affirmed Aaa
    (sf); previously on Jun 3, 2016 Affirmed Aaa (sf)

-- EUR74.25M Class B Senior Secured Floating Rate Notes due
    2024, Affirmed Aaa (sf); previously on Jun 3, 2016 Upgraded
    to Aaa (sf)

-- EUR43.2M Class D Senior Secured Deferrable Floating Rate
    Notes due 2024, Affirmed Baa3 (sf); previously on Jun 3, 2016
    Upgraded to Baa3 (sf)

-- EUR33.75M Class E Senior Secured Deferrable Floating Rate
    Notes due 2024, Affirmed B2 (sf); previously on Jun 3, 2016
    Affirmed B2 (sf)

Jubilee CDO I-R B.V., issued in May 2007, is a collateralised loan
obligation (CLO) backed by a portfolio of mostly high-yield senior
secured European loans. The portfolio is managed by Alcentra
Limited. The transaction's reinvestment period ended in July 2014.

RATINGS RATIONALE

The upgrade on the class C notes is primarily a result of the
deleveraging of the Class A notes following amortisation of the
underlying portfolio since the last rating action in June 2016. On
the January 2017 payment date, Class A notes were paid down by
EUR105 million or 17.67% of their original balance. As a result of
this deleveraging, the OC ratios have increased for classes B, C
and D notes. According to the February 2017 trustee report the OC
ratios of Classes A/B, C, D and E are 182.77%, 133.30%, 114.68%
and 103.39% compared to 144.86%, 121.86%, 111.26% and 104.18%
respectively in the last rating action.

The affirmation on class D and E notes ratings is a result of
opposing effects of the deleveraging and the worsening credit
quality of the portfolio. The credit quality has deteriorated as
reflected in the deterioration in the average credit rating of the
portfolio (measured by the weighted average rating factor, or
WARF) and an increase in the proportion of securities from issuers
with ratings of Caa1 or lower. According to the trustee report
dated February 2017, the WARF was 3155, compared with 2937 as of
the last rating action. Securities with ratings of Caa1 or lower
currently make up approximately 16.03% of the underlying
portfolio, versus 14.04% in last rating action.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par of EUR321.60 million and principal proceeds balance
of EUR20.36 million, defaulted par of EUR30.93 million, a weighted
average default probability of 22.07% over a 4.17 year WAL
(consistent with a 10 year WARF of 3173), a weighted average
recovery rate upon default of 45.14% for a Aaa liability target
rating, a diversity score of 21 and a weighted average spread of
4.02%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate of the
portfolio. Moody's ran a model in which it lowered the weighted
average recovery rate of the portfolio by 5%; the model generated
outputs that were within two notches of the base-case results for
Classes C and D and one notch for Class E.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Additional uncertainty about performance is due to the following:

1) Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

2) Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
overcollateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market
prices. Recoveries higher than Moody's expectations would have a
positive impact on the notes' ratings.

3) Around 16.53% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates. As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit Estimates
in Rated Transactions", published in October 2009 and available at
http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461.

4) Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation risk
on those assets. Moody's assumes that, at transaction maturity,
the liquidation value of such an asset will depend on the nature
of the asset as well as the extent to which the asset's maturity
lags that of the liabilities. Liquidation values higher than
Moody's expectations would have a positive impact on the notes'
ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.



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


CB EXPRESS: Liabilities Exceed Assets, Assessment Shows
-------------------------------------------------------
During the inspection of financial standing of CB Express Credit
(JSC), the provisional administration of the credit institution
appointed by Bank of Russia Order No. OD-3984, dated November 16,
2016, due to the revocation of its banking license, revealed that
the quality of the bank's loan portfolio was low due to the
lending of more than RUR1.6 billion to shell companies, according
to the press service of the Central Bank of Russia.

In addition, the provisional administration revealed that in the
run-up to the license revocation the management and owners of the
bank carried out operations which bear signs of asset diversion
and replacement of liquid assets with non-liquid ones through
assignment to insolvent counterparties of claims to the bank's
corporate and retail borrowers in the total amount of more than
RUR1 billion.

The provisional administration estimates that the value of assets
of CB Express Credit (JSC) does not exceed RUR2.6 billion whereas
its liabilities to creditors stand at RUR3.8 billion, including
RUR3.4 billion due to households.

On March 2, 2017, the Court of Arbitration of the city of Moscow
ruled to recognize the bank as bankrupt.  The state corporation
Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the former management and owners of CB Express Credit
(JSC), to the Prosecutor General's Office of the Russian
Federation, the Ministry of Internal Affairs of the Russian
Federation and the Investigative Committee of the Russian
Federation for consideration and procedural decision making.


INTERREGIONAL POST BANK: Bank of Russia Cancels Banking License
---------------------------------------------------------------
The Bank of Russia, by its Order No. OD-552, dated March 3, 2017,
cancelled the banking license of Moscow-based credit institution
COMMERCIAL BANK INTERREGIONAL POST BANK (limited liability
company) or CB INTERREGIONAL POST BANK from March 3, 2017,
according to the press service of the Central Bank of Russia.

The Bank of Russia cancelled the license of CB INTERREGIONAL POST
BANK pursuant to Article 23 of the Federal Law "On Banks and
Banking Activity" due to the decision of the credit institution's
authorized body to terminate the activity by way of voluntary
liquidation in compliance with Article 61 of the Civil Code of the
Russian Federation and to send the related request to the Bank of
Russia.

The reporting data provided to the Bank of Russia suggest that the
credit institution's assets allow it to meet creditors' claims.

In compliance with Article 62 of the Civil Code of the Russian
Federation and Article 57 of the Federal Law "On Limited Liability
Companies", a liquidation committee will be appointed to CB
INTERREGIONAL POST BANK.

CB INTERREGIONAL POST BANK is a member of the deposit insurance
system.  The cancellation of banking license is an insured event
envisaged by Federal Law No. 177-FZ "On Insurance of Household
Deposits with Russian Banks" regarding the bank's obligations on
deposits of households determined in accordance with the
legislation.  This Federal Law provides for the payment of
insurance indemnity to the bank's depositors, including individual
entrepreneurs, in the amount of 100% of their balances but not
exceeding the total of RUR1.4 million per depositor.

According to the financial statements, as of February 1, 2017, CB
INTERREGIONAL POST BANK ranked 475th by assets in the Russian
banking system.


NZBANK JSCB: Liabilities Exceed Assets, Assessment Shows
--------------------------------------------------------
During the inspection of financial standing of JSCB NZBank OJSC,
the provisional administration of the bank appointed by Bank of
Russia Order No. OD-4011, dated November 18, 2016, due to the
revocation of its banking license, revealed that the actions of
the former management and owners of the bank bore signs of asset
diversion through the sale of securities in the total amount of
more than RUR1.3 billion held by the bank in the run up to the
license revocation and through lending the total of RUR350 million
to borrowers who were unable honor their liabilities, according to
the press service of the Central Bank of Russia.

The provisional administration estimates that the bank's assets do
not exceed RUR0.4 billion whereas its liabilities to creditors
amount to RUR1.7 billion, including liabilities to households in
the amount of RUR1.45 billion.

On January 19, 2017, the Court of Arbitration of the city of
Moscow adjudicated to recognize the bank insolvent (bankrupt). The
state corporation Deposit Insurance Agency was appointed as a
receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the former management and owners of the bank, to the
Prosecutor General's Office of the Russian Federation, the
Ministry of Internal Affairs of the Russian Federation and the
Investigative Committee of the Russian Federation for
consideration and procedural decision making.


TATFONDBANK PJSC: Put on Provisional Administration
---------------------------------------------------
The Bank of Russia, by its Order No. OD-542, dated March 3, 2017,
revoked the banking license of Kazan-based credit institution
public joint-stock company Tatfondbank or PJSC Tatfondbank from
March 3, 2017.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's failure
to comply with federal banking laws and Bank of Russia
regulations, capital adequacy below 2%, decrease in equity capital
below the minimal amount of the authorized capital established as
of the date of the state registration of the credit institution,
and the repeated application over the past year of supervisory
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)".

Given the unsatisfactory quality of assets, PJSC Tatfondbank
assessed inadequately the risks assumed.  As a result of proper
credit risk assessment and objective accounting of the asset value
in the credit institution's statements, the bank lost its whole
equity capital.  The management and owners of the bank did not
take measures to bring its activities back to normal.

Given the low quality of assets, it was deemed impossible to carry
out financial resolution of PJSC Tatfondbank through the state
corporation Deposit Insurance Agency and its creditors on
reasonable economic conditions.  In these circumstances, pursuant
to Article 20 of the Federal Law "On Banks and Banking
Activities", the Bank of Russia revoked the banking license of the
credit institution.

The Bank of Russia, by its Order No. OD-543, dated March 3, 2017,
terminated the activity of the provisional administration of PJSC
Tatfondbank due to the revocation of its banking license.  The
functions of the provisional administration were performed by the
state corporation Deposit Insurance Agency under the Bank of
Russia Order No. OD-4536, dated December 15, 2016.

The Bank of Russia, by its Order No. OD-544, dated March 3, 2017,
appointed a provisional administration to PJSC Tatfondbank for the
period until the appointment of a receiver pursuant to the Federal
Law "On Insolvency (Bankruptcy)" or a liquidator under Article
23.1 of the Federal Law "On Banks and Banking Activities".  In
accordance with federal laws, the powers of the credit
institution's executive bodies are suspended.

PJSC Tatfondbank is a member of the deposit insurance system.  The
insured event shall be deemed to have occurred on the date of the
imposition of moratorium to meet claims of the creditors of PJSC
Tatfondbank (December 15, 2016).  The insurance benefit on the
bank's liabilities denominated in foreign currency shall also be
calculated as of that data.

The revocation of the banking license before the expiry of the
moratorium to meet creditors' claims shall not cancel its legal
consequences, including the obligation of the state corporation
Deposit Insurance Agency to pay the insurance benefits on
deposits.

The Agency continues to pay the insurance benefits on deposits
(accounts) with PJSC Tatfondbank in compliance with Clause 2 of
Part 1 of Article 8 of the Federal Law "On Insurance of Household
Deposits with Russian Banks" -- the imposition by the Bank of
Russia of the moratorium to meet creditors' claims until the
completion of bankruptcy proceedings.

The Information about the agent banks authorized to pay the
insurance benefits is published on the website of the state
corporation Deposit Insurance Agency (www.asv.org.ru).

According to the financial statements, as of February 1, 2017,
PJSC Tatfondbank ranked 42nd by assets in the Russian banking
system.



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


LIBERBANK SA: Fitch Assigns 'BB-(EXP)' Rating to Sub. Notes
-----------------------------------------------------------
Fitch Ratings has assigned Liberbank, S.A.'s subordinated notes an
expected rating of 'BB-(EXP)'.

The assignment of the final rating is contingent on the receipt of
final documents conforming to the information already received.

KEY RATING DRIVERS
The subordinated notes are notched down once from Liberbank's 'bb'
Viability Rating (VR). The notching reflects the notes' greater
expected loss severity than senior unsecured debt. These
securities are subordinated to all senior unsecured creditors.
Fitch did not apply additional notching for incremental non-
performance risk relative to the VR given that any loss absorption
would only occur once the bank reaches the point of non-viability.

RATING SENSITIVITIES

The subordinated notes' rating is sensitive to changes in
Liberbank's VR. The rating is also sensitive to a widening of
notching if Fitch's view of the probability of non-performance on
the bank's subordinated debt relative to the probability of the
group failing, as measured by its VR, increases or if Fitch's view
of recovery prospects changes.



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


FINSBURY SQUARE 2017-1: Moody's Assigns Caa2 Rating to Cl. X Debt
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term credit
ratings to the Notes issued by Finsbury Square 2017-1 plc:

-- GBP380.980M Class A Mortgage Backed Floating Rate Notes due
    March 2059, Definitive Rating Assigned Aaa (sf)

-- GBP23.260M Class B Mortgage Backed Floating Rate Notes due
    March 2059, Definitive Rating Assigned Aa1 (sf)

-- GBP25.470M Class C Mortgage Backed Floating Rate Notes due
    March 2059, Definitive Rating Assigned A1 (sf)

-- GBP13.290M Class D Mortgage Backed Floating Rate Notes due
    March 2059, Definitive Rating Assigned Ba2 (sf)

-- GBP17.720M Class X Floating Rate Notes due March 2059,
    Definitive Rating Assigned Caa2 (sf)

Moody's has not assigned ratings to the GBP 8.860M Class Z notes.

The portfolio backing this transaction consists of UK prime
residential loans originated by Kensington Mortgage Company
Limited ("KMC", not rated). Moody's assigned provisional ratings
to these notes on February 17, 2017.

Approximately 76.4% of the pool have been originated between June
and December 2016. Around 11.6% of the portfolio (approximately
GBP 52.0 million) are loans from the pool backing transaction
Gemgarto 2012-1 Plc ("Gemgarto"). These loans will be sold to the
Issuer once the Gemgarto transaction has been called, after
closing and before the first interest payment date. Approximately
12.0% of the final portfolio are loans originated in January 2017.
These loans were also pre-funded and will be sold to the Issuer
after closing and before the first interest payment date.

RATINGS RATIONALE

The ratings of the notes take into account, among other factors:
(1) the performance of the previous transactions launched by KMC;
(2) the credit quality of the underlying mortgage loan pool, (3)
legal considerations and (4) the initial credit enhancement
provided to the senior notes by the junior notes and the reserve
fund.

-- Expected Loss and MILAN CE Analysis

Moody's determined the MILAN credit enhancement (MILAN CE) and the
portfolio's expected loss (EL) based on the pool's credit quality.
The MILAN CE reflects the loss Moody's expects the portfolio to
suffer in the event of a severe recession scenario. The expected
portfolio loss of 2.2% and the MILAN CE of 12% serve as input
parameters for Moody's cash flow model and tranching model, which
is based on a probabilistic lognormal distribution.

Portfolio expected loss of 2.2%: this is higher than the UK Prime
RMBS sector average of ca. 1.1% and was evaluated by assessing the
originator's limited historical performance data and benchmarking
with other UK prime RMBS transactions. It also takes into account
Moody's stable UK Prime RMBS outlook and the UK economic
environment.

MILAN CE of 12%: this is higher than the UK Prime RMBS sector
average of ca. 8.7% and follows Moody's assessment of the loan-by-
loan information taking into account the historical performance
available and the following key drivers: (i) although Moody's have
classified the loans as prime, it believes that borrowers in the
portfolio often have characteristics which could lead to them
being declined from a high street lender; (ii) the weighted
average CLTV of 72.3%, (iii) the very low seasoning of 0.87 years,
(iv) the proportion of interest-only loans (16.6%); (v) the
proportion of buy-to-let loans (15.0%); and (vi) the absence of
any right-to-buy, shared equity, fast track or self-certified
loans.

-- Transaction structure

The current balance of the final mortgage pool is GBP 447.145 (as
of 31.01.2017). The General Reserve Fund is equal to 2.0% of the
principal amount outstanding of Class A to D notes. This amount
will only be available to pay senior expenses, Class A, Class B
and Class C notes interest and to cover losses. The Reserve Fund
is not amortising as long as the Class C notes are outstanding.
After Class C has been fully amortised, the Reserve Fund will be
equal to 0%. The Reserve fund will be released to the revenue
waterfall on the final legal maturity or after the full repayment
of Class C notes. If the Reserve fund is less than 1.5% of the
principal outstanding of class A to D, a liquidity reserve fund
will be funded with principal proceeds up to an amount equal to 2%
of the Classes A and B.

An additional reserve fund sized to 1% of class A to D initial
balance has been funded on the Issue Date and will be available in
the priority of payments in the same way as the General Reserve
Fund. If on the first IPD the assets from Gemgarto portfolio will
be substantially sold into the transaction, then this 1%
additional reserve will be released to the certificate holders.
Due to the optional nature of this additional reserve fund,
Moody's has not taken this additional reserve fund into account
when modelling the available credit enhancement for the issued
notes. Therefore, the Moody's basis assumption is that Gemgarto
transaction will be called and the additional reserve fund will
not be available on the first IPD.

-- Operational risk analysis

Prior to the closing date, all loans originated between 27 June
2016 and 31 January 2017 were serviced by Acenden Limited
("Acenden", not rated) and loans originated between 2 August 2010
and 13 January 2012 are serviced by Homeloan Management Limited
("HML", not rated). KMC is acting as servicer of the pool from the
closing date and sub-delegates certain primary servicing
obligations to Acenden. KMC has the option to leave the servicing
of the loans originated between August 2, 2010 and January 13,
2012 with HML. In order to mitigate the operational risk, there is
a back-up servicer facilitator (Intertrust Management Limited, not
rated, also acting as corporate services provider), and Wells
Fargo Bank International Unlimited Company (not rated) is acting
as a back-up cash manager from close.

All of the payments under the loans in the securitised pool are
paid into the collection account in the name of KMC at Barclays
Bank PLC ("Barclays", A1/P-1 and A1(cr)/P-1(cr)). There is a daily
sweep of the funds held in the collection account into the issuer
account. In the event Barclays rating falls below Baa3 the
collection account will be transferred to an entity rated at least
Baa3. There is a declaration of trust over the collection account
held with Barclays in favour of the Issuer. The issuer account is
held in the name of the Issuer at Citibank, N.A., London Branch
(A1/(P)P-1 and A1(cr)/P-1(cr)) with a transfer requirement if the
rating of the account bank falls below A3.

To ensure payment continuity over the transaction's lifetime the
transaction documents including the swap agreement incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available. The transaction also
benefits from principal to pay interest for Class A to C notes,
subject to certain conditions being met.

-- Interest rate risk analysis

88.4% of the loans in the final pool are fixed-rate mortgage,
which will revert to three-month sterling LIBOR plus margin
between November 2017 and November 2021. 11.6% of the loans in the
final pool are floating-rate mortgages linked to three-month
sterling LIBOR. The note coupons are linked to three-month
sterling LIBOR, which leads to a fixed-floating rate mismatch in
the transaction. To mitigate the fixed-floating rate mismatch the
structure benefits from a fixed-floating swap. The swap will
mature the earlier of the date on which floating rating notes have
redeemed in full or the date on which the swap notional is reduced
to zero. BNP Paribas (A1/P-1 and Aa3(cr)/P-1(cr)) is acting as the
swap counterparty for the fixed-floating swap in the transaction.

After the fixed rate loans revert to floating rate, there is a
basis risk mismatch in the transaction, which results from the
mismatch between the reset dates of the three-month LIBOR of the
loans in the pool and the three-month LIBOR used to calculate the
interest payments on the notes. Moody's has taken into
consideration the absence of basis swap in its cash flow
modelling.

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

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

-- Stress Scenarios

Moody's Parameter Sensitivities: At the time the ratings were
assigned, the model output indicates that the Class A Notes would
still achieve Aaa(sf), even if the portfolio expected loss was
increased from 2.2% to 6.6% and the MILAN CE was increased from
12% to 19.2%, assuming that all other factors remained the same.
The Class B Notes would have achieved Aa1(sf), even if MILAN CE
was increased to 16.8% from 12.0% and the portfolio expected loss
was increased to 4.4% from 2.2% and all other factors remained the
same. The Class C Notes would have achieved A1(sf), even if MILAN
CE was increased to 16.8% from 12.0% and the portfolio expected
loss was increased to 3.3% from 2.2% and all other factors
remained the same. The Class D Notes would have achieved Ba2(sf),
if the expected loss remained at 2.2% assuming MILAN CE increased
to 19.2% and all other factors remained the same. The Class X
Notes would have achieved Caa2(sf) if the expected loss remained
at 2.2% assuming MILAN CE increased to 19.2% and all other factors
remained the same.

Moody's Parameter Sensitivities quantify the potential rating
impact on a structured finance security from changing certain
input parameters used in the initial rating. The analysis assumes
that the deal has not aged and is not intended to measure how the
rating of the security might change over time, but instead what
the initial rating of the security might have been under different
key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended to
measure how the rating of the security might migrate over time,
but rather how the initial rating of the security might have
differed if key rating input parameters were varied. Parameter
Sensitivities for the typical EMEA RMBS transaction are calculated
by stressing key variable inputs in Moody's primary rating model.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

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

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the Class A, Class B and
Class C Notes by the legal final maturity. In Moody's opinion, the
structure allows for ultimate payment of interest and principal
with respect to the Class D and Class X Notes by the legal final
maturity. Moody's ratings only address the credit risk associated
with the transaction. Other non-credit risks have not been
addressed, but may have a significant effect on yield to
investors.


FINSBURY SQUARE 2017-1: Fitch Assigns 'Bsf' Rating to Cl. D Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Finsbury Square 2017-1 Plc's notes
final ratings as follows:

GBP380,980,000 Class A: 'AAAsf'; Outlook Stable
GBP23,260,000 Class B: 'AAsf'; Outlook Stable
GBP25,470,000 Class C: 'Asf'; Outlook Stable
GBP13,290,000 Class D: 'Bsf'; Outlook Stable
GBP17,720,000 Class X: 'BB+sf'; Outlook Stable
GBP8,860,000 Class Z: Not Rated

This transaction is a securitisation of near-prime owner-occupied
and buy-to-let (BTL) mortgages originated by Kensington Mortgage
Company in the UK. The ratings are based on Fitch Ratings'
assessment of the underlying collateral, available credit
enhancement (CE), Kensington's origination and underwriting
procedures, and the transaction's financial and legal structure.

KEY RATING DRIVERS

Near Prime Mortgages

Fitch believes Kensington's underwriting practices are robust and
the lending criteria does not allow for any adverse credit 24
months before application. Kensington has a manual approach to
underwriting, focusing on borrowers with some form of adverse
credit or complex income. Historical book-level performance data
displays robust performance, although data is limited, especially
for BTL originations. Fitch assigned default probabilities using
the prime default matrix, while applying an upward lender
adjustment.

Prefunding Mechanism

The transaction contains a prefunding mechanic through which
further loans may be sold to the issuer with proceeds from over-
issuance of notes at closing standing to the credit of the pre-
funding reserves. Fitch has been provided with the closing pool,
alongside an additional pool containing further loans identified
for sale (the full pool). Fitch has rated the transaction by
reference to the asset levels using the full pool.

Product Switches Permitted

Borrowers are permitted to make one product switch during the
mortgage term and for the loan to remain within the pool. While
there are restrictions around the type and volume of product
switches permissible, these loans may earn a lower margin than the
reversionary interest rates under their original terms. Fitch has
analysed the effect of product switches by assuming the weakest
pool available under the product switch restrictions within the
transaction documents.

Unrated Originator and Seller

The originator and seller are unrated entities and so may have
limited resources to repurchase mortgages if there is a breach of
the representations and warranties (RW). This is however mitigated
by a low incidence of previous breaches of the RW, a file review
performed by Fitch and a third-party agreed upon procedures (AUP)
report provided, indicating no adverse findings material to the
rating analysis. Fitch expects to receive the final AUP report
before assigning the final ratings.

RATING SENSITIVITIES

Material increases in the frequency of defaults and loss severity
on defaulted receivables producing losses greater than Fitch's
base case expectations may result in negative rating actions on
the notes. Fitch's analysis revealed that a 30% increase in the WA
Foreclosure Frequency, along with a 30% decrease in the WA
recovery rate, would imply a downgrade of the class A notes to
'A+sf' from 'AAAsf'.

DUE DILIGENCE USAGE

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch reviewed the results of a third-party assessment conducted
on the asset portfolio information, and concluded that there were
no findings that affected the rating analysis.

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


LEYTON ORIENT: Faces Threat of Liquidation Due to Unpaid Tax Bill
-----------------------------------------------------------------
Tom Collomosse at Evening Standard reports troubled Leyton Orient
face a winding-up order over an unpaid tax bill.

The struggling League Two club, owned by Italian businessman
Francesco Becchetti, will have the case heard in the High Court on
March 20, according to Evening Standard.

The report notes Orient face the threat of liquidation if they
cannot settle their debt to Her Majesty's Revenue and Custom,
which Standard Sport understands is in the region of GBP250,000.

It is the latest blow for the crisis-hit club, who face dropping
out of the Football League this season after 112 years of
membership, the report discloses.  They were beaten 4-1 at
Stevenage and are second-bottom of League Two, six points adrift
of safety, the report says.

The report note that Standard Sport revealed last month that
Becchetti was willing to sell the club, but was reluctant to take
any less than the GBP4 million he paid to buy it from promoter
Barry Hearn in July 2014.

The report discloses the worry among some at Orient is that while
investors have expressed an interest in acquiring the club, their
enthusiasm would wane if the club were to drop into the National
League.

When contacted by Standard Sport earlier, an Orient spokesman
declined to comment either on the winding-up order or the size of
the unpaid bill.

A group of supporters will gather set up a fighting fund in an
effort to raise GBP100,000 to protect the crisis-hit club, the
report relays.

Supporters hope to launch a rescue package to use if owner
Francesco Becchetti decides to sell the club or Orient go into
administration, the report notes.

The report adds that the money could also be used to start a
"phoenix club" in the mould of AFC Wimbledon, although that is
considered as the last resort at this stage.


PUKKA PADS: Filing Factory Put Into Administration
--------------------------------------------------
Channel Info reports Pukka Pads has regretfully confirmed the
closure of its filing factory in Liverpool, which has been put
into administration.

The Pukka Group bought Concord filing out of administration in
2013 and has, since this time, invested heavily in staff,
production and service improvements, according to Channel Info.
Every endeavor has been made to make the operation in Liverpool a
viable profitable business, the report notes.  Unfortunately, the
investment has failed to turn the business around, the report
relays.

In a company announcement, issued by Managing Director, Mike
Thomsett, it was said that, "ongoing high overheads and legacy
challenges have been exacerbated by increased raw material costs
driven by the weak exchange rate since Brexit, and rises in the
living wage.  These factors, combined with a reluctance from the
market place to accept the full level of price increases required
mean that the Liverpool factory has been operating at a
significant loss, the report notes.

"If the Pukka Pads Group were to continue to absorb these losses
we would be putting the sustainability of the wider business at
risk, and without this continued support from the parent group the
Liverpool factory is unable to continue to operate as a going
concern, the report relays.  This unfortunately means the loss of
55 jobs."


SOUTHERN PACIFIC 04-2: S&P Raises Rating on Cl. E Notes to 'BB+'
----------------------------------------------------------------
S&P Global Ratings raised to 'BB+ (sf)' from 'B+ (sf)' its credit
rating on Southern Pacific Securities 04-2 PLC's class E notes.
At the same time, S&P has affirmed its 'A- (sf)' ratings on the
class C1a, C1c, D1a, and D1c notes.

The rating actions follow S&P's credit and cash flow analysis
based on information that it received as of December 2016, and the
application of its relevant criteria.

In this transaction, the servicer first allocates any arrears
payments to other amounts owed, then to interest amounts, and
subsequently to principal.  From a borrowers' perspective, the
servicer first allocates any arrears payments to interest and
principal amounts, and secondly to other amounts owed.  This
difference in the servicer's allocation of payments for the
transaction and the borrower results in amounts outstanding being
greater than delinquencies.  Other amounts owed increased to
GBP1,105,573 from GBP973,310 over the last four quarters.
According to the servicer, this significantly contributed to the
difference between amounts outstanding and delinquencies.

Total amounts outstanding have increased since December 2012.
According to the transaction documents, the servicer uses amounts
outstanding to determine the 90+ days arrears trigger.  As the
transaction still breaches the 22.5% 90+ days arrears trigger (90+
days arrears currently at 48.6%), it pays principal sequentially.
As the amounts outstanding continue to increase, S&P considers
that the transaction will likely continue paying principal
sequentially.  S&P has incorporated this assumption in its cash
flow analysis.

Total delinquencies are higher than in S&P's U.K. residential
mortgage-backed securities (RMBS) index.  Between December 2013
and December 2016, 90+ days delinquencies increased to 23.1% from
21.9%.  Given this increase, and to address the potential for
increasing arrears in the pool, S&P has projected 1.8% arrears in
its credit analysis.  Consequently, S&P has increased its
weighted-average foreclosure frequency (WAFF) estimates compared
with those at S&P's March 20, 2014 review.

Lower delinquencies and increased seasoning have led to a decrease
in S&P's weighted-average foreclosure frequency (WAFF) estimates.
Given the servicer's method of payment allocation for other
amounts owed for the transaction, S&P expects potential losses to
be higher, and have factored the other amounts owed into its
weighted-average loss severity (WALS) estimates.

Rating     WAFF     WALS
level       (%)      (%)
AAA       47.08    55.59
AA        41.50    46.64
A         36.07    34.65
BBB       30.86    27.73
BB        25.56    23.08
B         23.09    20.50

The transaction had small draws on its reserve fund between Q1
2012 and Q3 2015 as a result of a low pool factor combined with a
high weighted-average cost of funds.  It has been at its target
level since then (GBP7 million) and is not amortizing.

With 595 loans remaining and high arrears, S&P has also considered
the risk relating to significantly concentrated back-ended
defaults.

The liquidity facility reduced to GBP4.2 million from
GBP42.35 million since S&P's previous review.  The lower fees
associated with the reduced restructured amortizing liquidity
facility benefitted the class E notes.  The liquidity facility
fees would have otherwise been a drain on the cash flow for this
class of notes.

The transaction has been deleveraging, and the available credit
enhancement has increased for all classes of notes.  The increased
available credit enhancement and lower liquidity facility fees are
sufficient to offset S&P's higher WALS estimates.  Consequently,
S&P has raised to 'BB+ (sf)' from 'B+ (sf)' its rating on the
class E notes.

The class C1a, C1c, D1a, and D1c notes continue to benefit from
sufficient credit enhancement to support S&P's currently assigned
ratings.  S&P has therefore affirmed its 'A- (sf)' ratings on
these classes of notes.

S&P does not consider that the bank account documentation complies
with its current counterparty criteria.  As a result, the highest
rating S&P can assign in this transaction is 'A- (sf)'.  Without
the cap, the class C1a and C1c notes pass S&P's cash flow stresses
at a 'AAA' rating level.

Southern Pacific Securities 04-2 is a securitization of
nonconforming U.K. residential mortgages originated by Southern
Pacific Mortgage Ltd. and Southern Pacific Personal Loans Ltd.

RATINGS LIST

Southern Pacific Securities 04-2 PLC
EUR210 Million, GBP493.5 Million, $122.5 Million Mortgage-Backed
Floating-Rate Notes

Class             Rating
          To                  From

Rating Raised

E         BB+ (sf)            B+ (sf)

Ratings Affirmed

C1a       A- (sf)
C1c       A- (sf)
D1a       A- (sf)
D1c       A- (sf)


STRICKLANDS PET: Set to Close on March 31
------------------------------------------
Hastings and St. Leonard Observer reports that Stricklands Pet and
Garden Supplies in Silverhill, St Leonards, will be closing on
March 31.

The closure marks the end of era for the retail side of an old
Hastings and Hailsham company, according to Hastings and St.
Leonard Observer.

The report notes a spokesman for the Strickland family said: "We
are sorry to be withdrawing from the retail side of our business
but it has become increasingly difficult in the face of
competition from large scale retailers who have the ability to top
slice our trade season by season.

"This has also had a detrimental effect on footfall in the high
street over the past three years which has reduced passing trade.
We would like to thank all our customers for their past business
and we wish them well for the future. We shall miss them," he
added.


TATA STEEL UK: To Close Final Salary Pension Scheme to Accruals
---------------------------------------------------------------
Barbara Lewis and Carolyn Cohn at Reuters report that Tata Steel
UK on March 7 said it would close its final salary pension scheme
to accruals from March 31 as a step towards resolving the future
of its British operations.

The fate of Tata's British businesses, including the nation's
largest steelworks at Port Talbot, has been in the air since Tata
Steel said a year ago it planned to divest its British assets
following heavy losses, Reuters relates.

Tata Steel's British workers in February voted to accept pension
benefit cuts in return for safeguards on jobs and investment,
although the Indian company's plan to spin off its entire British
pension scheme still faces regulatory hurdles, Reuters recounts.

The scheme will be replaced by a less generous defined
contribution scheme, removing one obstacle to a possible merger
with Germany's ThyssenKrupp AG, Reuters discloses.

Tata Steel is the UK's biggest steel company.



                            *********

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, Julie Anne L. Toledo, Ivy B. Magdadaro, and
Peter A. Chapman, Editors.

Copyright 2017.  All rights reserved.  ISSN 1529-2754.

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

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

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


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