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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

          Wednesday, June 28, 2017, Vol. 18, No. 127


                            Headlines


A Z E R B A I J A N

INT'L. BANK: Insolvency Recognized as Foreign Main Proceeding


B U L G A R I A

RAIFFEISENBANK BULGARIA: Moody's Hikes Deposit Ratings from Ba2


C R O A T I A

AGROKOR DD: Units Face Supplier Problems in Bosnia-Herzegovina


F R A N C E

BANIJAY GROUP: Moody's Assigns B1 CFR, Outlook Stable
BANIJAY GROUP: Fitch Assigns 'B+(EXP)' IDR, Outlook Stable
ELIOR GROUP: Moody's Affirms Ba2 CFR, Revises Outlook to Stable
TATI: Sale to Gifi to Save Bulk of Jobs, Lawyer Says


G R E E C E

ALPHA BANK: Fitch Raises Rating on Mortgage Covered Bonds to B-
ALPHA BANK: Moody's Affirms Caa3 Long-Term Deposit Ratings
ATHENS CITY: Moody's Hikes Long-Term Issuer Rating to Caa2
HELLENIC TELECOMS: Moody's Raises CFR to B3, Outlook Positive


I R E L A N D

ALLIED IRISH: Ireland Floats Bank, Valuation at EUR12 Billion
HARVEST CLO XI: Fitch Assigns 'B-' Rating to Cl. F-R Notes
TORO EUROPEAN CLO 1: Fitch Assigns B- Rating to Cl. F-R Notes


I T A L Y

BANCA POPOLARE: Italy to Start Wind-Down After Intesa Deal
ENTE AUTONOMO: Sept. 15 Bid Submission Deadline Set for Unit
MECCA LEAD: Competitive Procedure Contract Awarding by July 28

* Germany Criticizes Italy's Latest Bank Bailout


S L O V A K   R E P U B L I C

SLOVAKIA STEEL: Bankruptcy Trustee Commences Asset Sale


S P A I N

BANKIA SA: Agrees to Take Over BMN in EUR825-Mil. Deal


S W I T Z E R L A N D

FLIGHTLEASE AG: July 11 Deadline Set for Inspection of Claims
FLIGHTLEASE AG: July 3 Interim Payment List Inspection Deadline


U K R A I N E

DIAMANTBANK PJSC: NBU Revokes Licenses, Orders Liquidation

* UKRAINE: NBU Defends Addn'l Capitalization of State-Owned Banks


U N I T E D   K I N G D O M

BLUR GROUP: May Fall Into Administration Following Cash Woes
MABEL MEZZCO: Moody's Revises Outlook to Stable, Affirms B2 CFR

* UK: Must Not Neglect Business Rescue Reform Plans, R3 Says


                            *********



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A Z E R B A I J A N
===================

INT'L. BANK: Insolvency Recognized as Foreign Main Proceeding
-------------------------------------------------------------
The High Court of Justice, Chancery Division, Companies Court, on
June 6 made an order in respect of The OJSC International Bank of
Azerbaijan.

The Court recognized the IBA Proceeding as a foreign main
proceeding in accordance with the UNCITRAL Model Law on Cross-
Border Insolvency as set out in Schedule 1 to the Cross-Border
insolvency regulations 2006 (S.I. 2006 No 1030) in relation to
the Company.

Pursuant to Article 20(6) and Article 21(1)(g) of the Model Law,
the stay and suspension in Article 20(1) of the Model Law is
modified as follows and additional relief is granted in the
following terms:

(1) No step may be taken to enforce any mortgage, charge, lien or
other security over the Company's property except with the
consent of the Foreign Representative or the permission of the
Court.

(2) No step may be taken to repossess goods in the Company's
possession under a hire-purchase agreement (as defined in the
paragraph 111(1) of Schedule B1 to the Insolvency Act 1986)
except with the consent of the Foreign Representative or the
permission of the Court.

(3) Subject to paragraph 3(2) below, no legal process may be
instituted or continued against the Company or its property
except with the consent of the Foreign Representative or the
permission of the Court.

(4) An administrative receiver (as defined in paragraph 111(1) of
Schedule B1 to the Insolvency Act 1986) of the Company may not be
appointed.

(5) No winding up petition may be presented in respect of the
Company except with the consent of the Foreign Representative or
the permission of the Court, and no order may be made for the
winding up of the Company) save as identified by paragraph 42(4)
of Schedule B1 to the Insolvency Act 1986, and paragraph 42(5) of
Schedule B1 to the Insolvency Act 1986 shall apply in respect of
the Company).

For avoidance of doubt:

(1) For the purpose of this Order, the term "legal process"
includes arbitration, legal proceedings, execution, distress,
diligence, and all other forms of legal process.

(2) Paragraph 2(3) of this Order relates only to legal process
against the Company and does not affect legal process by the
Company against third parties.

(3) Paragraph 2 of this Order shall not affect or inhibit in any
way the rights of the Company to transfer, encumber of otherwise
dispose of or deal with any of its own assets to the extent
permitted by Azeri law.

This order applies only in Great Britain and does not have extra-
territorial effect.

Pursuant to Article 20(6) of the Model Law, the Court may, on the
application of the Foreign Representative or a person affected by
this Order, or of its own motion, modify or terminate this Order
on such terms as the Court thinks fit.

The foreign representative is:

          Gunel Bakshiveva
          OJSC International Bank of Azerbaijan
          67 Nizami Street
          Baku, AZ1005
          Republic of Azerbaijan

The OJSC International Bank of Azerbaijan is a retail and
commercial bank.


===============
B U L G A R I A
===============


RAIFFEISENBANK BULGARIA: Moody's Hikes Deposit Ratings from Ba2
---------------------------------------------------------------
Moody's Investors Service has upgraded to Baa3/Prime-3 from
Ba2/Not Prime the long and short-term local and foreign-currency
deposit ratings of Raiffeisenbank (Bulgaria) EAD, and to Ba3 from
B1 the long-term, local and foreign-currency deposit ratings of
Municipal Bank AD (Municipal). Both banks' long-term deposit
ratings carry a stable outlook.

Moody's says that rating actions reflect the improving operating
environment for banks in Bulgaria, which prompted the rating
agency to change the Macro Profile it assigns to Bulgaria to
"Moderate-" from "Weak+". This change in the macro profile
triggers a lower loss assumption in the application of Moody's
Advanced Loss Given Failure (LGF) analysis, which aims to assess
the extent of losses to creditors in a bank's resolution, and
leads to a higher uplift in banks' deposit ratings.

RATINGS RATIONALE

(1) IMPROVING OPERATING ENVIRONMENT IN BULGARIA PROMPTS CHANGED
MACRO PROFILE

The primary driver of the rating actions is Moody's decisions to
change the Macro Profile assigned to banks operating in Bulgaria
to Moderate- from Weak +. This reflects an improvement in
Bulgaria's near-term growth prospects, owing to improved
conditions in the country's labour market, which are supporting
private consumption growth, and a gradual recovery in investment
activity. Moreover, Bulgaria's commitment to its currency board
arrangement is a crucial anchor for macroeconomic policies and
supports institutional quality.

Moody's notes that the improvement in Bulgaria's Macro Profile
triggers a switch to using a lower 8%, rather than the 13%
previously assumed, loss rate assumption on tangible banking
assets of Bulgarian banks' in resolution. As a result, the
reduced expected loss depositors would face in resolution,
results in higher rating uplifts.

The more favourable operating conditions as well as ongoing
improvements in RBB's financial fundamentals, mainly asset
quality and capital, have also resulted in the upgrade of
Raiffeisenbank Bulgaria's standalone credit profile.

(2) BANK-SPECIFIC CONSIDERATIONS

RAIFFESENBANK (BULGARIA) EAD

Moody's has upgraded RBB's deposit ratings to Baa3/Prime-3 from
Ba2/Not Prime, driven by the upgrade of the bank's BCA to ba2
from ba3, and the revised assumptions in the rating agency's
Advanced LGF analysis that now result in a two-notch uplift for
deposit ratings. More specifically, the application of the
"Moderate-" Macro Profile in Moody's Advance LGF analysis,
including the lower 8% loss at failure assumption, has resulted
in lower loss-given failure and the higher rating uplift for
deposit ratings.

Moody's has also upgraded the bank's BCA to ba2 from ba3,
triggered by improvements in both the Macro Profile and in the
bank's asset quality and profitability. According to statements
prepared by RBB's parent, Raiffeisen Bank International (RBI,
rated deposits and senior debt: Baa1 stable, BCA: ba2), RBB's
ratio of non-performing loans (NPLs) to gross loans improved to
5.6% as of March 2017 from 11.0% in December 2015, while the NPL
coverage ratio has improved to 96.7%. The bank's annualised
return on asset also improved to 1.97% as of March 2017.

The rating agency notes, however, that the upward movement in the
bank's BCA, which is now aligned with the ba2 BCA of RBI, has
eliminated the previous one notch uplift from affiliate/parental
support from RBI, reflecting the limited capacity of RBI to
support its subsidiary beyond its own credit strength.

RBB's Counterparty Risk Assessments of Baa2(cr)/Prime-2(cr) were
also affirmed.

MUNICIPAL BANK AD

Moody's has upgraded Municipal's long-term deposit ratings to Ba3
from B1, reflecting Moody's Advanced LGF analysis, which now
provides a two-notch uplift (previously one notch). More
specifically, the application of the "Moderate-" Macro Profile in
Moody's Advance LGF analysis, including a lower 8% loss at
failure assumption, has resulted in lower loss-given failure and
higher rating uplift for deposit ratings.

Moody's has also affirmed Municipal's b2 BCA. The affirmation of
Municipal's BCA reflects Moody's expectations that the bank's
asset quality improvement will be gradual given its large stock
of NPLs, while improved prospects for revenue growth will
continue to be weighed down by low efficiency. As of December
2016 the ratio of NPLs to gross loans was 29.6% while the ratio
of loan loss reserves to NPLs was low at 45%. The annualised
return on assets was a low 0.29% owing to the bank's high cost
base with a cost to income ratio of 83.4% as of March 2017.

Municipal's Not Prime short-term deposit ratings and Ba2(cr)/Not
Prime(cr) Counterparty Risk Assessments were also affirmed.

-- WHAT COULD MOVE THE RATINGS UP/DOWN

According to Moody's, further improvements in the operating
conditions and banks' financial performance -- specifically in
their asset quality and profitability metrics -- and provided
they maintain their strong capital ratios and deposit-based
funding structures, would result in positive rating pressure.

A deterioration in the country's operating environment, leading
to a lower macro profile and/or individual banks' standalone
financial metrics may have negative rating implications.

Furthermore, alterations in banks' liability structure may change
the amount of uplift provided by Moody's Advanced LGF analysis
and lead to a higher or lower notching from the banks' adjusted
BCAs, thereby affecting deposit ratings and CRAs.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in January 2016.

List of affected ratings

Raiffeisenbank (Bulgaria) EAD

-- LT Bank Deposits (Local & Foreign Currency): Upgraded to Baa3
    from Ba2; outlook stable

-- ST Bank Deposits (Local & Foreign Currency): Upgraded to
    Prime-3 from Not Prime

-- Adjusted Baseline Credit Assessment: affirmed at ba2

-- Baseline Credit Assessment: upgraded to ba2 from ba3

-- LT Counterparty Risk Assessment: affirmed at Baa2(cr)

-- ST Counterparty Risk Assessment: affirmed at Prime -2(cr)

Issuer: Municipal Bank AD

-- LT Bank Deposits (Local & Foreign Currency): upgraded to Ba3
    from B1; outlook stable

-- ST Bank Deposits (Local & Foreign Currency): affirmed at Not
    Prime

-- Adjusted Baseline Credit Assessment: affirmed at b2

-- Baseline Credit Assessment: affirmed at b2

-- LT Counterparty Risk Assessment: affirmed at Ba2(cr)

-- ST Counterparty Risk Assessment: affirmed at Not Prime(cr)

Outlook Actions:

-- Outlook, Remains Stable

=============
C R O A T I A
=============

AGROKOR DD: Units Face Supplier Problems in Bosnia-Herzegovina
--------------------------------------------------------------
Misha Savic at Bloomberg News reports that Ante Ramljak,
Agrokor's government-appointed commissioner said its units "have
certain problems toward suppliers" in Bosnia-Herzegovina, which
require the company's attention over the coming weeks and months.

"Now that we have secured financing on the level of Agrokor
group, we will devote time to the situation" in Bosnia,"
Bloomberg quotes Agrokor as saying in an e-mail statement.  "We
urge all suppliers to be more constructiive."

The statement said rebranding stores of Agrokor's Konzum retailer
to turn them into Mercator units in Bosnia is "very complex and
we are doing it in phases".

Zagreb-based Agrokor is the biggest food producer and retailer in
the Balkans, employing almost 60,000 people across the region
with annual revenue of some HRK50 billion (US$7 billion).

                            *   *   *

The Troubled Company Reporter-Europe reported on June 7, 2017,
that Moody's Investors Service downgraded Croatian retailer and
food manufacturer Agrokor D.D.'s corporate family rating (CFR) to
Ca from Caa2 and the probability of default rating (PDR) to D-PD
from Ca-PD. The outlook on the company's ratings remains
negative.  Moody's also downgraded the senior unsecured rating
assigned to the notes issued by Agrokor due in 2019 and 2020 to C
from Caa2.  The rating actions reflect Agrokor's decision not to
pay the coupon scheduled on May 1, 2017 on its EUR300 million
notes due May 2019 at the end of the 30 day grace period. It also
factors in Moody's understanding that the company is not paying
interest on any of the debt in place prior to Agrokor's decision
in April 2017 to file for restructuring under Croatia's law for
the Extraordinary Administration for Companies with Systemic
Importance.

The TCR-Europe on April 17, 2017, reported that Moody's Investors
Service downgraded Agrokor D.D.'s corporate family rating (CFR)
to Caa2 from Caa1 and its probability of default rating (PDR) to
Ca-PD from Caa1-PD. "Our decision to downgrade Agrokor's rating
reflects its filing for restructuring under Croatian law, which
in Moody's views makes a default highly likely," Vincent Gusdorf,
a Vice President -- Senior Analyst at Moody's, said. "It also
takes into account uncertainties around the restructuring
process, as creditors' ability to get their money back hinges on
numerous factors that will become apparent over time."


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F R A N C E
===========


BANIJAY GROUP: Moody's Assigns B1 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a B1 Corporate Family
Rating (CFR) and a B1-PD Probability of Default rating (PDR) to
Banijay Group S.A.S. ('Banijay' or 'the group'). Concurrently,
Moody's has assigned B1 ratings to the EUR350 million Senior
Secured Notes due 2022 issued by Banijay. The outlook on all
ratings is stable.

This is the first time Moody's has assigned ratings to Banijay.

Proceeds from the notes and term loan (unrated) will be used to
refinance the existing indebtedness of the group including the
repayment of certain shareholder loans, together with the
financing of the acquisition of Castaway and transaction
expenses.

"Banijay is a leading independent television production and
distribution group providing a balanced portfolio of formats and
programmes to a diverse international client base in a market
with positive dynamics," says Colin Vittery, a Moody's Vice
President -- Senior Credit Officer and lead analyst for Banijay.
"It has grown rapidly by acquisition as the market consolidates
and Moody's considers it to have a focused strategy and
relatively conservative financial policy, supporting the moderate
opening pro forma leverage of 4.5x and distinguishing it from
peers."

RATINGS RATIONALE

The B1 CFR assigned to Banijay reflects its: (1) modest scale and
moderate Moody's adjusted leverage, which the rating agency
estimates at 4.5x on closing of the transaction; (2) the industry
challenges of retaining creative talent and refreshing portfolio
formats; (3) the increasing complexity of intellectual property
rights retention; (4) the expectation of additional acquisition
activity as the market consolidates; and (5) the limited track
record as a public market issuer operating with increased scale.

More positively, the CFR also recognizes: (1) Banijay's strong
position as the leading independent status content producer; (2)
the good revenue diversity in terms of geography, customers and
formats; (3) the focused management strategy aimed at the most
profitable timeslots and genres; (4) recurring revenues and high
visibility with 84% of 2017 revenues contracted; (5) relatively
conservative financial policies supported by shareholder
structure; (6) positive free cash flow generation and strong
RCF/net debt ratios; and (7) the positive industry demand
characteristics and funding model.

RATIONALE FOR THE STABLE OUTLOOK

Moody's considers that the issuer is well positioned at the B1
rating. The stable outlook reflects the expectation that Banijay
will be able to maintain its leading position in the
international television content production market and that it
will close the proposed acquisition of Castaway. The stable
outlook also incorporates Moody's assumptions that the group will
develop a track record as a public debt issuer, continuing to
grow EBITDA and generate free cash flow, and that it will neither
embark on any transforming acquisitions nor make additional
shareholder distributions beyond those envisaged in the proposed
transaction.

WHAT COULD CHANGE THE RATING UP / DOWN

Positive pressure on the rating is not expected in the near
future as Banijay will need to develop a track record in both
commercial operation as a company with increased scale, within
its stated financial policies and with a stronger liquidity
profile. Upward pressure may be created if: (1) Moody's Adjusted
Leverage were to fall sustainably below 4.0x; and (2) RCF/Net
Debt exceeds 20.0%.

Negative pressure on the rating could develop if: (1) Moody's
Adjusted Leverage were to increase above 5.0x; (2) RCF/Net Debt
falls below 10.0%; or (3) operating performance or liquidity
deteriorate.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Banijay Group S.A.S.

-- LT Corporate Family Rating, Assigned B1

-- Probability of Default Rating, Assigned B1-PD

-- Backed Senior Secured Regular Bond/Debenture, Assigned B1

Outlook Actions:

Issuer: Banijay Group S.A.S.

-- Outlook, Assigned Stable

PRINCIPAL METHODOLGY

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

Banijay, headquartered in Paris (France), is the world's largest
independent television production group. The group operates a
worldwide network of over 50 production companies with a strong
presence in Western Europe, the USA and the Nordics. The group
has a strong competitive position in both scripted and non-
scripted programming and a diversified content library with 500
formats and more than 20,000 hours of catalogue content. The
group is both a producer and distributor of content. In FY2016,
Banijay (pro forma for the Zodiak acquisition) reported turnover
of EUR777 million. Banijay is ultimately controlled by LOV Group
(34.4%), with material minority investments from De Agostini
(34.2%) and Vivendi (31.4%).


BANIJAY GROUP: Fitch Assigns 'B+(EXP)' IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned Banijay Group SAS a 'B+(EXP)'
Long-Term Issuer Default Rating (IDR) with a Stable Outlook.
Fitch has assigned a rating of 'BB(EXP)'/'RR2' to Banijay's
senior secured debt. Banijay has an experienced management team
that has maintained cost discipline during the expansion of non-
scripted content. Non-scripted content is exposed to shifts in
consumer sentiment, but Banijay has demonstrated ability to adapt
to these trends, including through customer diversification, with
success in renewing shows for multiple seasons and in syndicating
them to multiple countries.

The expected rating is constrained by the company's high
leverage, more limited size than its peers, and the low
monetisation of its back catalogue through Banijay Rights. If
Banijay continues to attract talented producers that understand
the local market and to expand its geographic reach, its rating
will benefit.

The final ratings are contingent on the receipt of final
documents conforming to information already received.

KEY RATING DRIVERS

Leading Independent TV Producer: Banijay is the fourth-largest
producer of TV content and the largest independent producer
globally. The success of scripted dramas such as "Versailles" and
the rapid growth of over-the-top (OTT) platforms such as Netflix
is leading to additional content demand across the industry.
However, the cost of production and the length of development
mean there is limited ability to produce new scripted content.
Banijay's focus on non-scripted content, which can be produced
and delivered quickly.

Greater Scale and Diversification: The recent acquisition of
Zodiak has expanded the production of scripted shows. Including
the pending Castaway transaction, scale has improved
significantly, with revenue and EBITDA more than doubling. The
mergers have also enhanced Banijay's library in scripted and non-
scripted content and added greater geographical diversification.
Banijay plans to increase scripted content to up to 20% of sales
over the medium term. This has the potential to increase the need
for working capital as a scripted show can take up to two years
to produce and some offsets, such as tax credits, are only
received at the end of production.

Consistent FCF Generation Despite Earn-Outs: Banijay's business
is free cash flow (FCF) positive; capex is low due to its asset-
light operating model. Fitch expects funds from operations (FFO)
margins to fall to around 7% through the rating horizon from
above 9% in 2016 due to higher interest expense following the
refinancing. Fitch forecasts consistently positive FCF, which
will be needed to finance over EUR100 million in earn-out
payments in 2017 and 2018, but Fitch expects cash balances to
grow thereafter.

Renewals Mitigate Business Cycle Risk: The risk of shows not
being renewed and the potential for decreased demand among
broadcast networks or OTTs due to the business cycle is mitigated
by the success Banijay has had in renewing its existing shows and
distributing them in additional geographies. The development of
Banijay Rights after the Zodiak acquisition should improve the
company's ability to monetise its back catalogue and further
enhance revenue visibility.

Above-Average Recoveries: Fitch uses a bespoke recovery approach
for credits whose IDR is 'B+' or below. For Banijay, Fitch uses a
going-concern approach where it assumes post-restructuring EBITDA
is 25% below its 2017 forecast EBITDA, a 5.5x distressed
multiple, and 10% of going-concern enterprise value is deducted
for administrative claims. Fitch also assumes that the revolving
credit facility (RCF), term loan and senior secured note are pari
passu and that the RCF would be fully drawn upon default. Fitch
therefore assigns a Recovery Rating of 'RR2' to the senior
secured debt with recoveries between 70% and 90%.

DERIVATION SUMMARY

Banijay is the leading independent TV production studio and the
fourth largest globally. Its primary competitors are EndemolShine
Group, ITV Studios, FremantleMedia and All3Media. It has a
greater proportion of unscripted content than its peers, although
the acquisition of Zodiak increases its exposure to scripted
content.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
-- revenue growth trending towards 6% in 2019;
-- EBITDA margin stable at 11.5%;
-- increased demand for working capital due to the shift towards
    producing scripted content;
-- over EUR100 million in payments for earn-outs and put options
    between 2017 and 2019.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- FFO net adjusted leverage trending below 4x
-- FFO fixed charge coverage above 3.5x
-- Increased scale with sales above EUR1 billion, improved mix
    between non-scripted and scripted content and further
    development of the digital strategy
-- Successful development of the Banijay Rights business and
    expansion into additional geographies

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- FFO net adjusted leverage trending above 5x
-- FFO fixed charge coverage below 3x
-- Inability to turn around the businesses in Spain and Germany
-- Failure to renew leading shows and delays in the development
    of the digital strategy

LIQUIDITY

Satisfactory Liquidity: Banijay has comfortable liquidity, with
EUR73 million in cash on balance sheet for 2016, consistently
positive FCF, a EUR35 million RCF once the transaction is
completed and modest working-capital swings. Fitch believes that
the transition to a greater proportion of scripted content will
increase the need for working capital, but Banijay's liquidity is
sufficient to meet those needs.


ELIOR GROUP: Moody's Affirms Ba2 CFR, Revises Outlook to Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 corporate family
rating (CFR) and the Ba2-PD probability of default rating of
Elior Group S.A., and changed the outlook on the ratings to
stable from positive.

The rating action reflects:

* Moody's expectation that the company will gradually delever,
but the pace of deleveraging will be constrained by continued
debt-financed acquisitions

* Leverage is therefore expected to remain above the trigger for
an upgrade for the next 12-18 months

* The company's long term track record of organic revenue growth,
stable to growing margins and increasing geographic diversity
from acquisitions in the US

RATINGS RATIONALE

Gross leverage on a Moody's-adjusted basis was 4.2x at March 31,
2017. This is calculated applying Moody's standard adjustments
for operating leases and other off-balance sheet financing items,
and also adjusts EBITDA for the full year effect of acquisitions.
Leverage has increased from 3.8x at September 2015 as a result of
approximately EUR300 million of debt-funded acquisitions that
have been made over the last 18 months. Moody's expects the
acquisition pace to be slower during the current financial year
ending September 30, 2017, and that the company will degear to
below 4x in the next 12-18 months, as the benefits of acquisition
synergies are delivered alongside organic growth. Leverage is
however expected to remain above the 3.5x level indicated in
Moody's criteria for an upgrade over the next 12-18 months.

The ratings reflect the company's: 1) track record of organic
revenue growth and margin stability; 2) leading market position
and increasing geographic diversification; 3) broad customer base
with long term contracts and high retention rates; 4) scale and
efficiency savings offsetting effects of ongoing margin pressure;
and 5) expected gradual deleveraging profile through organic
growth and as acquisition synergies are realised.

At the same time the ratings reflect the company's 1) aggressive
financial policy with significant debt-funded acquisitions and
dividend distributions, which are expected to limit the pace of
deleveraging over the next 12-18 months; 2) strongly competitive
market environment with competition ranging from small, local
businesses to international companies; 3) high geographic
concentration in France although reducing following recent
acquisitions; and 4) substantial levels of voluntary exits of low
margin contracts.

Elior's liquidity remains good with revolving credit facilities
(RCF, unrated) of EUR300 million and USD250 million maturing in
2021 and 2020 respectively, as well as cash of EUR163 million at
March 31, 2017. The RCF were undrawn at September 30, 2016 with
limited utilisation expected over the next 12-18 months. The
company also operates a EUR300 million receivables securitisation
programme, which had headroom of approximately EUR80 million at
September 30, 2016. The securitisation programme matures in May
2018 and Moody's expects the company to extend or refinance the
programme prior to maturity. These facilities provide substantial
headroom to support operating cash flow requirements whilst also
providing capacity to finance the group's continuing acquisition
strategy.

Rating Outlook

The stable outlook reflects Moody's view that Elior is likely to
show continued organic growth rates in the range of 2-3%,
excluding voluntary contract exits, with improving cash
generation. The company is expected to continue its relatively
aggressive financial policy of debt-financed acquisitions which
will limit the pace of deleveraging over the next 12-18 months.

What Could Change the Rating - Up

The ratings could be upgraded if Moody's-adjusted leverage falls
towards 3.5x on a sustainable basis, with sustainable positive
free cash flow, and if the company demonstrates a more
conservative financial policy with regards to leverage and debt-
financed acquisitions.

What Could Change the Rating - Down

Negative pressure on the ratings could occur if Moody's-adjusted
leverage increases above 4.0x on a sustainable basis or if free
cash flow turns negative for an extended period. In addition,
concerns over liquidity or covenants could exert negative ratings
pressure.

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

Headquartered in France, Elior is a global player in contract and
concession catering and support services. In the year ended
September 30, 2016 the company generated revenues of EUR5.9
billion and Moody's adjusted EBITDA of EUR537 million.


TATI: Sale to Gifi to Save Bulk of Jobs, Lawyer Says
----------------------------------------------------
Sudip Kar-Gupta at Reuters reports that Tati, the iconic cut-
price shop whose historic store stands near Paris's Sacre Coeur
monument, is to be sold to domestic rival Gifi.

According to Reuters, Thomas Hollande, a lawyer involved in
Tati's restructuring process, said the deal would save the bulk
of jobs at Tati and keep the brand alive.

"This offer will let around 85% of staff stay on, which is more
than most could have hoped for," Reuters quotes Mr. Hollande as
saying.

The full financial terms of the takeover were not disclosed,
Reuters notes.

Family-controlled retailer Eram had said earlier this year that
it had decided to sell its loss-making Agora Distribution unit,
which owns the Tati brand amongst others, Reuters relates.

Tati had been racking up losses amid increasing competition from
low-cost fashion retail giants such as H&M, Zara and Primark,
Reuters discloses.



===========
G R E E C E
===========


ALPHA BANK: Fitch Raises Rating on Mortgage Covered Bonds to B-
---------------------------------------------------------------
Fitch Ratings has taken rating actions on four Greek covered
bonds programmes issued by Alpha Bank AE, National Bank of Greece
S.A. and Piraeus Bank S.A. (Piraeus, RD/RD/ccc):

-- Alpha's mortgage covered bonds upgraded to 'B-' from 'CCC+';
    Stable Outlook assigned
-- NBG's mortgage covered bonds Programme I (NBG I) affirmed at
    'B-'; Outlook Stable
-- NBG's mortgage covered bonds Programme II (NBG II) affirmed
    at 'B-'; Outlook Stable
-- Piraeus's mortgage covered bonds affirmed at 'B-'; Outlook
    Stable

The rating actions follow the upgrade of the Viability Ratings
(VR) of Alpha, NBG and Piraeus to 'ccc' from 'f' on June 19, 2017
(see Fitch Affirms Greek Banks' IDRs at RD; Upgrades VRs
available at www.fitchratings.com) and the full periodic review
of the programmes.

KEY RATING DRIVERS

Country Ceiling and VRs
The ratings of the covered bonds issued under the programmes are
capped by Greece's Country Ceiling of 'B-'. At the same time, the
'B-' represents the rating floor for the programmes resulting
from the VRs, as adjusted by the Issuer Default Rating (IDR)
uplifts, and it is achievable irrespective of the levels of over-
collateralisation (OC). Following the upgrade of the banks' VRs
to 'ccc' from 'f', the starting point for the analysis is the
'ccc' VR in accordance with Fitch's Covered Bonds Rating
Criteria.


IDR Uplift
Greek covered bonds are eligible for a maximum IDR uplift of two
notches. The unchanged IDR uplift of two notches reflects that
the issuers' Long-Term IDRs are not support-driven (neither
institutional nor by the sovereign) as well as a low risk of
under-collateralisation at the point of resolution. This is based
on Fitch's assessment on the Greek legal framework, the presence
of an asset monitor, asset eligibility criteria and minimum legal
and contractual levels of OC, as applicable.

Payment Continuity Uplift (PCU)
The PCU is unchanged for all the programmes: six notches for NBG
I and eight notches for NGB II, Alpha's and Piraeus's programmes
due to the structural mechanisms that are in place to protect
against cash flow mismatches between assets and liabilities.

While NBG I has a soft bullet amortisation profile of the
liabilities with a 12-months principal maturity extension, NGB
II, Alpha and Piraeus covered bonds envisage a conditional pass-
through feature that implies the covered bonds can amortise in
line with the cover assets upon the extension of their principal
maturity date. Moreover, each programme includes a liquidity
reserve that covers at least three-month interest due on the
covered bonds and senior expenses.

Recovery Uplift
The covered bonds are eligible for a recovery uplift as they are
secured by standard Greek residential mortgage loans and
therefore capable of generating at least good recovery prospects.
NBG I, NBG II and Piraeus's programme are assigned a three-notch
recovery uplift as the 25% OC Fitch relies on compensates for
credit losses modelled in a stress scenario corresponding to the
covered bonds' rating (7%, 14% and 14.3%, respectively). Alpha
programme is assigned a one-notch recovery uplift as its relied-
upon OC of 5.26% does not offset the 8.4% credit loss in the 'B-'
rating scenario.

The PCU and recovery uplift assigned to each covered bond
programme are not a driver of the covered bonds ratings, as they
are constrained by the 'B-' sovereign Country Ceiling.

ALPHA

Alpha's covered bonds are rated 'B-', two notches above the
bank's VR of 'ccc'. This is based on an unchanged IDR uplift of
two notches, an unchanged PCU of eight notches and a recovery
uplift of one notch. The maximum legal asset percentage (AP) of
95% (5.26% equivalent OC) which Fitch relies upon in its analysis
is in line with the 'B-' breakeven AP. The agency has assigned a
Stable Outlook to Alpha's covered bonds, reflecting a stable
cover pool composition.

NBG

NBG I and NBG II covered bonds are rated 'B-', two notches above
the bank's VR of 'ccc', based on an unchanged IDR uplift of two
notches, an unchanged PCU of six and eight notches, respectively,
and a recovery uplift of three notches. The 80% contractual AP of
both programmes (25% equivalent OC) which Fitch relies upon in
its analysis provides more protection than the 95% 'B-' breakeven
AP. The Stable Outlook on the covered bonds reflects a stable
cover pool composition and the cushion provided by the committed
OC against the 95% 'B-' breakeven AP.

PIRAEUS

Piraeus' covered bonds are rated 'B-', two notches above the
bank's VR of 'ccc'. This is based on an unchanged IDR uplift of
two notches, an unchanged PCU of eight notches and a recovery
uplift of three notches. The contractual AP of 80% which Fitch
relies upon in its analysis provides more protection than the 95%
'B-' breakeven AP. The Stable Outlook on the covered bonds
reflects a stable cover pool composition and the cushion provided
by the committed OC against the 95% 'B-' breakeven AP.

RATING SENSITIVITIES

Changes in Greece's Country Ceiling could affect the rating of
all Greek covered bonds programmes. In particular and all else
being equal, a higher sovereign Country Ceiling would trigger an
upgrade by one notch for all programmes, factoring in the good
recovery prospects, irrespective of the level of Fitch's relied-
upon over-collateralisation.

If the Country Ceiling is upgraded by two notches or more, the
covered bond ratings could be upgraded correspondingly as long as
the relied-upon OC of each programme is enough to compensate for
the stresses commensurated with the Country Ceiling level.

Alpha Bank AE's covered bonds ratings are vulnerable to a one-
notch downgrade if the bank's VR is downgraded to 'cc' or below,
all else being equal.


ALPHA BANK: Moody's Affirms Caa3 Long-Term Deposit Ratings
----------------------------------------------------------
Moody's Investors Service has affirmed the Caa3 long-term deposit
ratings of Alpha Bank AE, Eurobank Ergasias S.A., National Bank
of Greece S.A., and Piraeus Bank S.A.. At the same time, Moody's
has also upgraded all four banks' baseline credit assessment
(BCA) to caa2 from caa3, the long-term senior unsecured ratings
to (P)Caa3 from (P)Ca, and the long-term counterparty risk
assessment to Caa2(cr) from Caa3(cr). The long-term deposit
ratings for Alpha Bank AE and National Bank of Greece S.A. carry
positive outlooks, while those of Eurobank Ergasias S.A. and
Piraeus Bank S.A. carry stable outlooks. The long-term deposit
ratings of Attica Bank S.A. were affirmed at Caa3 with stable
outlook, as well as its BCA of caa3, while the bank's
counterparty risk assessment was upgraded to Caa2(cr) from
Caa3(cr).

These rating actions follow the successful completion of Greece's
second review for its support programme, which also triggered an
upgrade of Greece's government bond rating to Caa2 (positive)
from Caa3 (stable). The higher BCAs primarily reflect the
improved operating environment in Greece, which has resulted in
Moody's raising the country's Macro Profile to 'Very Weak+' from
'Very Weak', as well as improvements in banks' funding profile,
lower funding costs, the return to marginal core profitability
and the likely continuation of this trend in 2017-18. In
addition, the BCAs also take into account the prospects for
further modest improvements in banks' financial fundamentals
stemming from the potential return of more deposits into the
banking system and gradual reduction of nonperforming loans, as
the economy starts to show signs of recovery.

The affirmation of the banks' Caa3 deposit ratings is primarily
driven by the rating agency's 'Loss Given Failure' (LGF) analysis
of banks' liability structure and the relatively small pool of
unsecured liabilities available to absorb losses in a potential
bank resolution scenario. The deposit ratings also reflect the
on-going deposit controls in Greece, and the fact that depositors
do not have instant access to the full amount of their deposits.
The banks' senior unsecured ratings were upgraded to (P)Caa3 from
(P)Ca based on the full application of the rating agency's LGF
analytical approach following the stabilisation of banks'
liability structures. Previously these debt ratings were
benchmarked at Ca based on expected losses, following the
liability management exercises and exchange offers to senior
bondholders that banks carried out in late 2015, as part of their
last recapitalisation.

Moody's said that its Greek bank ratings balance the improvements
in their credit profiles against the still significant downside
risks stemming from the fragile operating environment in Greece
and the very high level of nonperforming loans.

RATINGS RATIONALE

UPGRADES OF BCAs TO caa2 FROM caa3

The upgrade of the four Greek banks' BCAs to caa2 from caa3
reflects the following factors:

  -- GREECE'S MACRO PROFILE CHANGED TO 'VERY WEAK+' FROM 'VERY
WEAK'

Following the sovereign rating upgrade, the macro profile for
Greece that is used in Moody's banking scorecards that derive the
BCAs has been changed to 'Very Weak+' from 'Very Weak', due to
the rating agency's improved view of the country's institutional
strength factor. This was primarily triggered by the conclusion
of the second review of the country's adjustment programme, and
the fact that public institutions in Greece have benefited from
the technical assistance provided by the official creditors.
Greece's macro profile also reflects the difficult credit and
funding conditions, with structural challenges faced by all
banks.

  -- IMPROVED FUNDING PROFILES

The BCA upgrades also reflect the recent improvements in their
funding profiles with the reduction of the high cost Emergency
Liquidity Assistance (ELA), which was around EUR41 billion for
the system in May 2017, down from EUR87 billion in June 2015.
Moody's expects further reduction in the banks' dependence on
ELA, following the conclusion of the second review of the
country's support programme by its official lenders
(EC/ECB/ESM/IMF). This development should improve confidence in
the banks, resulting in gradual deposit inflows from the
approximately EUR10 billion of cash still placed outside the
banking system. The rating agency also expects a gradual
relaxation of the capital controls that remain in place in
Greece, which allow depositors to withdraw only EUR840 every two
weeks. Full repayment of the ELA is one of Greek banks' top
priorities, although this is unlikely to materialise for all four
banks over the next 12-18 months. The inter-bank repo market has
been available to Greek banks so far, allowing them to partly
reduce their ELA balances.

  -- BETTER PROFITABILITY PROSPECTS

The BCA upgrades also consider the improved earnings prospects
for these banks, following the conclusion of the second review,
which will likely enhance investor and depositor confidence,
reducing funding costs. Concurrently, Moody's expects that lower
funding costs and operating expenses will support pre-provision
income in 2017-18, and bottom-line profits will be largely driven
by the level of provisioning requirements. During 2016, pre-
provision income for the banking system increased by around 32%
with almost all banks being marginally profitable, limiting any
capital consumption, while the first quarter 2017 results suggest
that the improving trend will continue in 2017.

Moody's considers that the BCA of caa2 for all four banks
appropriately balances these recent improvements in their
standalone credit profiles as well as the considerable downside
risks stemming from the still high level of non-performing
exposures (NPEs) that were at around 45% of total exposures
(including off-balance sheet items) as of March 2017. The rating
agency believes that over the next 12-18 months, banks'
performance will depend on their ability to reduce the level of
NPEs mainly through restructurings that will also generate
additional income.

ATTICA BANK BCA AFFIRMED AT caa3

Attica Bank's BCA was affirmed at caa3 reflecting the bank's
significant asset quality challenges, with the highest NPE ratio
among its peers, as well as its ongoing capital needs that have
yet to be fully covered. In addition, the bank is currently
undergoing restructuring and has yet to show concrete evidence
that it has the capacity to return to sustainable profitability.
The rating agency believes that the standalone credit profile of
Attica Bank is weaker than its local peers, as reflected by the
lower BCA. Moody's said that the higher sovereign rating now
allows certain rating differentiation among Greek banks, while
prior to this rating action all Greek banks were rated at the
same level towards the end of the rating scale. For more details
on Attica Bank.

DEPOSIT RATINGS AFFIRMED AT Caa3; OUTLOOK CHANGED TO POSITIVE
FROM STABLE FOR TWO BANKS

The affirmation of the banks' Caa3 deposit ratings primarily
reflects banks' relatively small pool of unsecured obligations
and minimal subordinated liabilities available to absorb
potential losses in case of a bank resolution scenario.
Accordingly, depositors remain vulnerable to bail-in risks within
the context of the Bank Recovery and Resolution Directive (BRRD)
transposition law that was passed in Greece in 2015. Although
Greek depositors were excluded from bail-in in the last few
years, Moody's considers that the relative risks are still high
and thus positions long-term deposits, senior unsecured debt and
subordinated debt at the same rating level of Caa3 based on the
rating agency's LGF analysis of banks' liability structure.

The long-term deposit ratings of Caa3 also take into
consideration the on-going capital controls in place as well as
the implied losses faced by depositors that do not have instant
access to the full amount of their funds. All banks' Caa3 deposit
ratings are positioned one notch lower than the recently revised
local-currency deposit ceiling for Greece of Caa2.

The change in the deposit rating outlook to positive from stable
for Alpha Bank and National Bank of Greece reflects the rating
agency's opinion of these banks' marginally stronger standalone
credit profiles than their peers, and its expectation that going
forward their liability structure through more deposits could
induce a higher deposit rating. Alpha Bank has a stronger
tangible capital position than its peers, while National Bank of
Greece has a better funding profile with lower ELA dependence
than the other banks. The individual bank sections below provide
more details in this respect.

SENIOR AND SUBORDINATED RATINGS UPGRADED TO (P)Caa3 from (P)Ca
AND C RESPECTIVELY, JUNIOR INSTRUMENTS AFFIRMED AT C(hyb)

The upgrade of the four banks' senior debt ratings to (P)Caa3
from (P)Ca and subordinated debt ratings to (P)Caa3 from (P)C
reflect Moody's loss given failure (LGF) analysis of their
liability structure, which indicates that such obligations should
be placed at the same level as deposits. This is driven by the
relatively thin cushion that banks have on their balance sheets
to absorb losses in a potential bank resolution scenario. The
rating agency notes that a large proportion of Greek banks'
liabilities are in the form secured obligations, either through
the ELA mechanism, or the ECB or the inter-bank repo market,
limiting the pool of creditors available to absorb losses.

Prior to this rating action, Moody's positioned the ratings of
these debt instruments based on an expected loss basis, as part
of banks' liability management exercises and voluntary exchange
offers towards investors in late 2015, when banks were carrying
out their third round of recapitalization over the last few
years. The senior debt ratings outlook is positive for Alpha Bank
and National Bank of Greece, and stable for Piraeus Bank and
Eurobank.

At the same time, Moody's affirmed the C(hyb) ratings assigned to
the two systemic banks' non-cumulative Tier 1 preferred stock.
These affirmations were driven by these instruments' structural
subordination to senior and subordinated debt, and the higher
likelihood that they could sustain significant losses before any
senior and subordinated debt holders are affected in a potential
bank resolution scenario.

INDIVIDUAL BANKS

-- ALPHA BANK

Alpha Bank's BCA upgrade to caa2 from caa3 and its positive
rating outlook take into account its relatively high pro-forma
common equity Tier 1 (CET1) ratio of 17.3% in March 2017,
following the recent sale of its operations in Serbia. Moody's
notes that Alpha Bank has the lowest level of eligible deferred
tax assets (DTAs) on its balance sheet at around EUR3.4 billion
in March 2017, which comprised around 39% of its nominal CET1
capital. This level positions the bank at the stronger end in
terms of loss-absorbing tangible capital available among its
local systemic peers, underpinning Alpha Bank's positive rating
outlook. Moody's considers such DTAs as a weak form of capital,
in view of Greece's low rating.

The bank's ratings also consider its return to positive
profitability with a net profit of around EUR48 million for the
first three-months of 2017, while its nonperforming loans (NPL)
and nonperforming exposures (NPE) ratio stood at around 38% and
54% respectively as of March 2017. NPL and NPE provisioning
coverage was around 69% and 49%, respectively. Moody's believes
that the relatively high NPL provisioning coverage provides the
bank with more flexibility to actively manage its NPL portfolio.
The bank's ELA as of March 2017 stood at EUR12.2 billion (down
from EUR19.6 billion in December 2015), comprising 19% of its
total assets, although Moody's expects this type of funding to
reduce further in 2017-18.

-- ATTICA BANK

The affirmation of Attica Bank's BCA at caa3 takes into
consideration its CET1 ratio of 14.8% in December 2016, but also
the fact that this is still short of around EUR68 million that
the bank needs to raise in order to be fully compliant with the
Bank of Greece's adverse scenario capital estimate. Moody's
understands that the bank has agreed with a potential investor
aiming to cover this capital shortfall through a deal that will
also involve the management of a pool of NPEs.

The bank, which is the smallest among all rated Greek banks with
a market share of only around 2%, reported losses of around EUR50
million in 2016, as its NPE ratio increased to 61% in December
2016, from 56% in December 2015, which is the highest among local
peers. The bank's ELA dependence was around EUR1 billion as of
December 2016, comprising around 28% of its total assets. The
rating agency expects that on-going restructuring at the bank by
the new top management is likely to start yielding results in
2017-18, although Attica Bank's performance is likely to still
lag behind its peers.

-- EUROBANK ERGASIAS

Eurobank's BCA of caa2 takes into account its reported CET1 ratio
of 17.3% in March 2017, up from 16.5% in March 2016. Nonetheless,
Moody's considers the bank to have a lower quality of capital
than its peers, in view of its eligible DTAs (EUR4 billion) and
the state preference shares of around EUR950 million that the
bank retains on its balance sheet and will need to repay at some
stage. The rating agency estimates that around 75% of the bank's
nominal CET1 capital is in the form of either eligible DTAs or
preference shares, leaving minimal loss-absorbing tangible common
equity available.

The bank's profit in the first three months of 2017 amounted to
around EUR37 million, while its NPL and NPE ratio were at around
35% and 45%, respectively, as of March 2017. Eurobank's NPL and
NPE provisioning coverage was around 66% and 51%, respectively.
The bank's ELA as of March 2017 stood at EUR12.2 billion,
comprising around 19% of its total assets, although Moody's notes
that the bank was able to reduce this ELA dependence
significantly from EUR22.9 billion in June 2015.

-- NATIONAL BANK OF GREECE

The bank's BCA upgrade to caa2 from caa3 and its positive rating
outlook takes into consideration its strong savings franchise in
Greece, and its ELA balance that was the lowest among its peers
at EUR5.6 billion, comprising 7.4% of its total assets as of
March 2017. Moody's expects NBG to be the first bank in Greece to
fully repay its ELA in the next 12-18 months, mainly through the
sale of its foreign subsidiaries and its insurance arm and
through more customer deposits.

National Bank of Greece (NBG) had a pro-forma CET1 ratio,
incorporating the recent sale of its Bulgarian operations, of 17%
in March 2017 from 16.3% in December 2016. However, this healthy
regulatory ratio is undermined by the bank's high eligible DTAs
(EUR4.8 billion), which comprised around 73% of its nominal CET1
capital as of March 2017. NBG is likely to further enhance its
CET1 capital through the sale of more non-core assets going
forward.

The bank's NPL and NPE ratios in Greece stood at 33% and 44%,
respectively, as of March 2017, while the NPL and NPE
provisioning coverage was 75% and 57%, the highest within its
local peer group. The rating agency believes that recoveries from
the NPL portfolio could further enhance the bank's core pre-
provision income, which increased by 30% year-on-year in the
first three-months of 2017, combined with further reduction in
its operating expenses.

-- PIRAEUS BANK

Piraeus Bank's BCA of caa2 considers its increased CET1 ratio to
16.8% in March 2017 from 11.2% in September 2015, including the
EUR2 billion CoCos that the bank still retains but will have to
repay back to the state-owned Hellenic Financial Stability Fund
(HFSF) at some stage. The bank's eligible DTAs (EUR4.1 billion)
comprised around 60% of its nominal CET1 capital, excluding its
CoCos, undermining the quality of its capital position.

Moody's considers Piraeus Bank's asset quality position to be
among the weakest in the system due to its numerous take-overs of
smaller problematic banks in the last few years, which resulted
in an NPL and NPE ratio of around 38% and 55%, respectively, as
of March 2017. In addition, the bank's NPL and NPE provisioning
coverage was at 68% and 46%, respectively. However, the rating
agency expects the bank's asset quality to gradually improve in
view of its focus and active management of its NPLs, and the
additional tools provided to the banks for managing their NPLs
through recent legislative measures. The bank reported a net loss
of around EUR6 million during the first three-months of 2017,
although Moody's positively views the bank's ability to increase
its pre-provision income by 11% year-on-year.

WHAT COULD MOVE THE RATINGS UP/DOWN

Over time, upward deposit and senior debt rating pressure could
arise following a stabilisation of the country's macro-economic
environment, combined with an improvement in banks' asset
quality, profitability and funding. The return of more deposits
back to the banking system would also increase the pool of
unsecured obligations available to banks, which could trigger a
deposit and senior debt rating upgrade driven by the rating
agency's LGF approach.

Greek banks' deposit and senior debt ratings could be downgraded
in the event of political turmoil in the country for an extended
period of time that substantially affects domestic consumption
and economic activity, which have gradually been recovering from
a very low base.

The principal methodology used in these ratings was Banks
published in January 2016.

THE SPECIFIC RATING ACTIONS IMPLEMENTED ARE:

Upgrades:

Issuer: Alpha Bank AE

-- Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED (Government) Senior Unsecured MTN, Upgraded to (P)Caa2
    from (P)Caa3

-- Subordinate MTN, Upgraded to (P)Caa3 from (P)C

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- Counterparty Risk Assessment, Upgraded to Caa2(cr) from
    Caa3(cr)

Issuer: Alpha Credit Group plc

-- BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to
    Caa3 Positive from Ca Stable (Assumed by Alpha Bank AE)

-- BACKED Subordinate Regular Bond/Debenture, Upgraded to Caa3
    from C (Assumed by Alpha Bank AE)

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

Issuer: Alpha Group Jersey Limited

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

Issuer: Emporiki Group Finance Plc

-- BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to
    Caa3 Positive from Ca Stable (Assumed by Alpha Bank AE)

Issuer: Attica Bank S.A.

-- Counterparty Risk Assessment, Upgraded to Caa2(cr) from
    Caa3(cr)

Issuer: Eurobank Ergasias S.A.

-- Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED (Government) Senior Unsecured MTN, Upgraded to (P)Caa2
    from (P)Caa3

-- Subordinate MTN, Upgraded to (P)Caa3 from (P)C

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- Counterparty Risk Assessment, Upgraded to Caa2(cr) from
    Caa3(cr)..Issuer: ERB Hellas (Cayman Islands) Limited

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

Issuer: ERB Hellas PLC

-- BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to
    Caa3 Stable from Ca Stable

-- BACKED Subordinate Regular Bond/Debenture, Upgraded to Caa3
    from C

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

Issuer: National Bank of Greece S.A.

-- BACKED (Government) Senior Unsecured MTN, Upgraded to (P)Caa2
    from (P)Caa3

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- Counterparty Risk Assessment, Upgraded to Caa2(cr) from
    Caa3(cr)

Issuer: NBG Finance plc

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

Issuer: Piraeus Bank S.A.

-- Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- Subordinate MTN, Upgraded to (P)Caa3 from (P)C

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- Counterparty Risk Assessment, Upgraded to Caa2(cr) from
    Caa3(cr)

Issuer: Piraeus Group Finance Plc

-- BACKED Senior Unsecured MTN, Upgraded to (P)Caa3 from (P)Ca

-- BACKED Subordinate MTN, Upgraded to (P)Caa3 from (P)C

Affirmations:

Issuer: Alpha Bank AE

-- LT Bank Deposits, Affirmed Caa3 Positive From Stable

-- ST Bank Deposits, Affirmed NP

-- Other Short Term, Affirmed (P)NP

-- Counterparty Risk Assessment, Affirmed NP(cr)

Issuer: Alpha Credit Group plc

-- BACKED Other Short Term, Affirmed (P)NP

-- BACKED Commercial Paper, Affirmed NP

Issuer: Alpha Group Jersey Limited

-- BACKED Pref. Stock Non-cumulative, Affirmed C (hyb)

Issuer: Attica Bank S.A.

-- LT Bank Deposits, Affirmed Caa3 Stable

-- ST Bank Deposits, Affirmed NP

-- Adjusted Baseline Credit Assessment, Affirmed caa3

-- Baseline Credit Assessment, Affirmed caa3

-- Counterparty Risk Assessment, Affirmed NP(cr)

Issuer: Eurobank Ergasias S.A.

-- LT Bank Deposits, Affirmed Caa3 Stable

-- ST Bank Deposits, Affirmed NP

-- Other Short Term, Affirmed (P)NP

-- BACKED Other Short Term, Affirmed (P)NP

-- Counterparty Risk Assessment, Affirmed NP(cr)

Issuer: ERB Hellas (Cayman Islands) Limited

-- BACKED Other Short Term, Affirmed (P)NP

Issuer: ERB Hellas Funding Limited

-- BACKED Pref. Stock Non-cumulative, Affirmed C (hyb)

Issuer: ERB Hellas PLC

-- BACKED Commercial Paper, Affirmed NP

-- BACKED Other Short Term, Affirmed (P)NP

Issuer: National Bank of Greece S.A.

-- LT Bank Deposits, Affirmed Caa3 Positive From Stable

-- ST Bank Deposits, Affirmed NP

-- BACKED Other Short Term, Affirmed (P)NP

-- Counterparty Risk Assessment, Affirmed NP(cr)

Issuer: Piraeus Bank S.A.

-- LT Bank Deposits, Affirmed Caa3 Stable

-- ST Bank Deposits, Affirmed NP

-- Counterparty Risk Assessment, Affirmed NP(cr)

Issuer: Piraeus Group Finance Plc

-- BACKED Other Short Term, Affirmed (P)NP

-- BACKED Commercial Paper, Affirmed NP

Outlook Actions:

Issuer: Alpha Bank AE

-- Outlook, Changed To Positive From Stable

Issuer: Attica Bank S.A.

-- Outlook, Remains Stable

Issuer: Eurobank Ergasias S.A.

-- Outlook, Remains Stable

Issuer: National Bank of Greece S.A.

-- Outlook, Changed To Positive From Stable

Issuer: Piraeus Bank S.A.

-- Outlook, Remains Stable


ATHENS CITY: Moody's Hikes Long-Term Issuer Rating to Caa2
----------------------------------------------------------
Moody's Public Sector Europe has upgraded the City of Athens'
long-term issuer rating to Caa2 from Caa3 and changed the outlook
to positive from stable, following a similar action on Greece's
sovereign rating.

This rating action follows Moody's decision to upgrade the Greek
government rating to Caa2 from Caa3 and to change the outlook to
positive from stable on June 23, 2017.

RATINGS RATIONALE

Moody's rating action on the City of Athens reflects Moody's
assessment of the improvement in the operating environment for
Greek sub-sovereigns, as captured in the rating action on the
sovereign bond rating. The sovereign rating upgrade indicates a
reduction in the systemic risk to which the City of Athens is
exposed given its close operational and financial linkages with
the Greek government. In addition, the institutional linkages
intensify the close ties between the two levels of government
through the sovereign's ability to change the institutional
framework under which Greek municipalities operate.

Moody's expects Athens to benefit from the improved sovereign
conditions, given its key role as the country's economic and
financial hub. Moody's expects the city's revenue to benefit from
the improved macroeconomic conditions as 37% of the city's
operating revenues are comprised of taxes and tariffs that are
highly sensitive to the local economic conditions. Also, the
improved sovereign fiscal position should improve predictability
of government transfers to Athens, which accounted for an
additional 38% of Athens' operating revenue in 2016, thus easing
pressure on fiscal consolidation.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook on Athens' rating reflects the city's
continuity in pursuing positive financial results and debt
reduction in a challenging economic environment. The rating is
also underpinned by the continued commitment of the city
administration to prudent budgetary policy reflected in improving
operating margins of 13% at year-end 2016 compared with 9% in
2015. Moody's notes that the city's self-imposed fiscal
discipline has helped Athens to consolidate its rigid budget and
pursue positive financial results for the sixth consecutive year,
posting a surplus of 12% of total revenue compared with 8% in
2015. Moody's expects that Athens will maintain a cautious
approach to expenditures.

Moody's notes that the city has satisfactorily managed its cash
flow and gradually reduced its debt burden over the past few
years. Its debt stock, which amounted to EUR115 million as of
year-end 2016, represented a moderate 30% of its annual operating
revenue, down from 34% in 2015. Moody's expects Athens' debt
stock to continue declining with its debt standing at around
EUR98 million by year-end 2017, as the city remains committed not
to borrow this year. Athens' debt service remains well manageable
at 4.3% of total revenue and will remain at similar levels in
2017-18 supported by the favorable amortizing debt structure.

The growing financial surpluses have increased Athens' cash
reserves averaging at 15% of operating expenditure in 2016
compared with 8% at year-end 2015, which provides a comfortable
financial cushion against potential budgetary pressures and in
support of capex funding in the medium-term.

WHAT COULD MOVE THE RATING UP/DOWN

An upgrade of Athens' rating would require a similar change in
Greece's sovereign rating associated with a continuation of solid
budgetary performance, adequate liquidity position and moderate
debt levels.

Although unlikely given the recent sovereign upgrade, a
deterioration of the sovereign credit strength would apply
downward pressure on Athens' rating given the close financial and
operational linkages between the two. Fiscal slippage or the
emergence of significant liquidity risks would also exert
downward pressure on the rating.

The sovereign action required the publication of this credit
rating action on a date that deviates from the previously
scheduled release date in the sovereign release calendar,
published on www.moodys.com.

The specific economic indicators, as required by EU regulation,
are not available for City of Athens. The following national
economic indicators are relevant to the sovereign rating, which
was used as an input to this credit rating action.

Sovereign Issuer: Greece, Government of

GDP per capita (PPP basis, US$): 26,669 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 0% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 0% (2016 Actual)

Gen. Gov. Financial Balance/GDP: 0.7% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -0.6% (2016 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: Low level of economic resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On June 22, 2017, a rating committee was called to discuss the
rating of the Athens, City of. The main points raised during the
discussion were: The issuer's fiscal or financial strength,
including its debt profile, has materially increased. The
systemic risk in which the issuer operates has materially
decreased.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Regional and
Local Governments published in June 2017.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.


HELLENIC TELECOMS: Moody's Raises CFR to B3, Outlook Positive
-------------------------------------------------------------
Moody's Investors Service has upgraded Hellenic
Telecommunications Organization S.A.'s (OTE) corporate family
rating (CFR) to B3 from Caa2 and its probability of default
rating (PDR) to B3-PD from Caa2-PD. Concurrently, Moody's
upgraded to (P)B3 from (P)Caa2 the senior unsecured rating of the
global medium-term note program (GMTN) and to B3 from Caa2 the
rating on the senior unsecured global bonds issued by OTE PLC
(OTE's fully and unconditionally guaranteed subsidiary). The
outlook on the ratings has been changed to positive from stable.

These rating actions follow the improvement of Greece's credit
profile as reflected in Moody's decision on June 23 to upgrade
the Government of Greece's government bond ratings to Caa2 from
Caa3 with a positive outlook and to upgrade the country's
foreign-currency ceiling to B3 from Caa2. For more details,
please refer to Moody's press release: "Moody's upgrades Greece's
sovereign bond rating to Caa2 and changes the outlook to
positive".

"OTE continues to strengthen its credit profile but its ratings
continue to be constrained by the country's sovereign ceiling, as
the company's credit-worthiness will remain closely linked to
conditions in its domestic environment," says Carlos Winzer,
Moody's Senior Vice President and lead analyst for OTE. "OTE is
performing in line with its business plan and has taken material
steps to strengthen its balance sheet, cash flow and liquidity
risk management."

RATINGS RATIONALE

The action follows the improvement of Greece's credit profile as
reflected in Moody's decision to upgrade Greece's foreign
currency sovereign ceiling to B3, as well as the improvements of
OTE's business and financial prospects. The recovery in the Greek
economy is gaining some traction, underpinning investment and
consumer confidence, with an expected positive contribution to
OTE's revenues. While it is too early to conclude that economic
growth will be sustained, Moody's expects to see growth this year
and next, after three years of stagnation and a cumulative loss
in output of more than 27% since the onset of Greece's crisis.
The increase in employment, supporting private consumption,
together with investment boost from an acceleration of EU
structural funds and a lower drag from fiscal policy will be the
key growth drivers.

OTE continues to demonstrate a superior degree of resilience
through the recent period of sovereign stress and has taken steps
to further insulate itself from the Greek economy. In this
regard, the company continues to enhance its international
banking relationships. Whilst these factors allow OTE's ratings
to be positioned higher than the government's bond rating, OTE's
ratings continue to be constrained by the B3 sovereign ceiling.

At B3, OTE's CFR reflects (1) the fact that a non-Greek financial
subsidiary (OTE PLC, which is domiciled in the UK and is subject
to English law) issues its bonds which constitute the main part
of its debt; (2) the fact that around 26% of OTE's revenues and
14% of its EBITDA are generated outside Greece; (3) Moody's
expectation that OTE will maintain substantial cash balances of
around EUR1 billion to pre-fund future bond maturities; and (4)
the implicit support it receives from its largest shareholder,
Deutsche Telekom AG (Baa1 stable).

WHAT COULD CHANGE THE RATINGS UP/DOWN

Any potential positive rating development would require an
upgrade of the Greek Sovereign rating, a more substantial
dissociation of the company's business and financial prospects
from those of the Greek economy, and/or more explicit support
from Deutsche Telekom AG.

A rating downgrade could occur if (1) Moody's were to downgrade
Greece's government bond rating; (2) conditions in the domestic
environment were to deteriorate as a result of a weakening of
Greece's credit profile or an increase in the risk of Greece
exiting the euro area; and/or (3) unexpected pressures on OTE's
liquidity were to emerge, particularly as a result of a failure
by the company to maintain comfortable cash balances.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Hellenic Telecommunications Organization S.A.

-- Corporate Family Rating, Upgraded to B3 from Caa2

-- Probability of Default Rating, Upgraded to B3-PD from Caa2-PD

Issuer: OTE PLC

-- Backed Senior Unsecured Medium-Term Note Program, Upgraded to
    (P)B3 from (P)Caa2

-- Backed Senior Unsecured Regular Bond/Debenture, Upgraded to
    B3 from Caa2

Outlook Actions:

Issuer: Hellenic Telecommunications Organization S.A.

-- Outlook, Changed To Positive From Stable

Issuer: OTE PLC

-- Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

Hellenic Telecommunications Organization S.A. (OTE) is the
leading telecommunications operator in Greece. The company also
operates in Romania and Albania. OTE's major shareholder is
Deutsche Telekom AG (Baa1 stable), with an equity stake of 40%
and right of first refusal over the 6% holding (out of which
Hellenic Republic holds 1% and Hellenic Republic Asset
Development Fund holds 5%). OTE is fully consolidated in Deutsche
Telekom's accounts, as it has management control.

For the year ended December 2016, OTE Group generated EUR3.9
billion of revenues and EUR1.3 billion of adjusted EBITDA.


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


ALLIED IRISH: Ireland Floats Bank, Valuation at EUR12 Billion
-------------------------------------------------------------
Nicholas Megaw at The Financial Times reports that Ireland has
floated Allied Irish Banks, one of the banks whose collapse
helped push the country to an international bailout, marking a
milestone in the country's economic turnround.

The government raised at least EUR3 billion in the IPO of the
bank, which valued the group at EUR12 billion, the FT relates.

The offering was priced at EUR4.40 per share, raising EUR3
billion assuming no exercise of an over-allotment option, or
EUR3.4 billion if it is exercised, the FT discloses.  The EUR12
billion valuation was in the middle of the bank's previously
announced price-range, and in line with analyst expectations, the
FT notes.

According to the FT, Ireland's government will still hold between
71 and 75%t of AIB's shares after the sale, and expects to slowly
sell down its stake in the coming years.  The government paid
almost EUR21 billion to rescue the bank at the height of the
financial crisis, but the government expects AIB to increase in
value further, and finance minister Paschal Donohoe said the sale
of a first stake "has created a strong platform for the state to
recover all the money it has invested", the FT relays.

The bank says it has already repaid EUR6.8 billion of its EUR20.8
billion bailout, through a combination of fees, interest,
dividends, the redemption of some instruments, and other
payments, the FT discloses.

                   About Allied Irish Banks

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.


HARVEST CLO XI: Fitch Assigns 'B-' Rating to Cl. F-R Notes
----------------------------------------------------------
Fitch Ratings has assigned Harvest CLO XI Designated Activity
Company final ratings:

EUR242.42 million Class A-R senior secured floating-rate notes
due 2030: 'AAAsf'; Outlook Stable
EUR19.16 million Class B-1-R senior secured floating-rate notes
due 2030: 'AAsf'; Outlook Stable
EUR10 million Class B-2-R senior secured fixed-rate notes due
2030: 'AAsf'; Outlook Stable
EUR20 million Class B-3-R senior secured floating-rate notes due
2030: 'AAsf'; Outlook Stable
EUR22.58 million Class C-R senior secured deferrable floating-
rate notes due 2030: 'A sf'; Outlook Stable
EUR20.64 million Class D-R senior secured deferrable floating-
rate notes due 2030: 'BBBsf'; Outlook Stable
EUR22.12 million Class E-R senior secured deferrable floating-
rate notes due 2030: 'BBsf'; Outlook Stable
EUR11.33 million Class F-R senior secured deferrable floating-
rate notes due 2030: 'B-sf'; Outlook Stable

The proceeds of this issue are being used to redeem the old
notes, with a new identified portfolio comprising the existing
portfolio, as modified by sales and purchases conducted by the
manager in the ramp-up period following the closing date. The
portfolio is managed by Investcorp Credit Management EU Limited.
The reinvestment period will end in June 2021.

KEY RATING DRIVERS

'B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors to be in
the 'B' range. Fitch has public ratings or credit opinions on all
127 obligors in the underlying portfolio. The Fitch weighted
average rating factor of the underlying portfolio is 32.5, below
the maximum covenant for assigning the final ratings of 33.5.

High Recovery Expectations
At least 90% of the portfolio will comprise senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate of the
underlying portfolio is 66.7%, above the minimum covenant for
assigning the final ratings of 66.3%.

Limited Interest Rate Exposure
Fitch modelled both a 5% and a 0% fixed-rate bucket in its
analysis, and found that the rated notes can withstand the
interest rate mismatch associated with both scenarios.

Diversified Asset Portfolio
The covenanted maximum exposure to the top 10 obligors for
assigning the final ratings is 20% of the portfolio balance. This
covenant ensures that the asset portfolio will not be exposed to
excessive obligor concentration.

Documentation Amendments
The transaction documents may be amended subject to rating agency
confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyse the
proposed change and may provide commentary if the change would
have a negative impact on the ratings. Such amendments may delay
the repayment of the notes as long as Fitch's analysis confirms
the expected repayment of principal at the legal final maturity.

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment. Noteholders
should be aware that the structure considers confirmation to be
given if Fitch declines to comment.

RATING SENSITIVITIES

A 25% increase in the obligor default probability or reduction in
expected recovery rates would each lead to a downgrade of up to
two notches for the rated notes.


TORO EUROPEAN CLO 1: Fitch Assigns B- Rating to Cl. F-R Notes
-------------------------------------------------------------
Fitch Ratings has assigned Toro European CLO 4 DAC's (previously
known as Toro European CLO 1 DAC) refinancing notes expected
ratings:

EUR1.75 million class X notes: assigned 'AAA(EXP)sf'; Outlook
Stable
EUR240 million class A-R notes: assigned 'AAA(EXP)sf'; Outlook
Stable
EUR19.5 million class B-1-R notes: assigned 'AA(EXP)sf'; Outlook
Stable
EUR13 million class B-2-R notes: assigned 'AA(EXP)sf'; Outlook
Stable
EUR15 million class B-3-R notes: assigned 'AA(EXP)sf'; Outlook
Stable
EUR25 million class C-R: assigned 'A(EXP)sf'; Outlook Stable
EUR20.75 million class D-R: assigned 'BBB(EXP)sf'; Outlook Stable
EUR26.5 million class E-R: assigned 'BB(EXP)sf'; Outlook Stable
EUR10.5 million class F-R: assigned at 'B-(EXP)sf'; Outlook
Stable

Toro European CLO 4 DAC is a cash flow collateralised loan
obligation securitising a portfolio of mainly European leveraged
loans and bonds. Net proceeds from the issue of the notes will be
used to refinance the current outstanding notes. The portfolio is
managed by Chenavari Credit Partners LLP.

The assignment of final ratings is contingent on the receipt of
final documents conforming to information already reviewed.

KEY RATING DRIVERS

'B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors to be in
the 'B' category. Fitch has public ratings or credit opinions on
73 of the 75 obligors in the identified portfolio. The Fitch
weighted average rating factor (WARF) of the current portfolio is
32.5, below the maximum covenanted WARF for the expected ratings
of 34.5.

High Recovery Expectation
At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The weighted average recovery rate (WARR) of the current
portfolio is 69.3%, above the minimum covenanted WARR of 67.75%.

Payment Frequency Switch
The notes pay quarterly, while the portfolio assets can be reset
to semi-annual from quarterly or monthly. The transaction has an
interest-smoothing account but no liquidity facility. Liquidity
stress for the non-deferrable classes A-R and B-R notes, stemming
from a large proportion of assets potentially resetting to semi-
annual in any one quarter, is addressed by switching the payment
frequency of the notes to semi-annual in such a scenario, subject
to certain conditions.

Limited Interest Rate Risk
Up to 10% of the portfolio can be invested in fixed-rate assets,
while 3.2% liabilities pay a floating-rate coupon. Fitch modelled
both 0% and 10% fixed-rate buckets and found that the rated notes
can withstand the interest rate mismatch associated with each
scenario.

Limited FX Risk
Perfect asset swaps are used to mitigate any currency risk on
assets not denominated in euro. The transaction is permitted to
invest up to 30% of the portfolio in assets denominated in a
currency other than euro, provided suitable asset swaps can be
entered into.

Documentation Amendments
The transaction documents may be amended, subject to rating
agency confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyse the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings. Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final
maturity.

If, in the agency's opinion the amendment is risk-neutral from a
rating perspective, Fitch may decline to comment. Noteholders
should be aware that the structure considers a confirmation to be
given if Fitch declines to comment.

TRANSACTION SUMMARY

The issuer has amended the capital structure, increased the
target par balance to EUR400 million and extended the maturity of
the notes as well as the reinvestment period. The transaction
features a four-year reinvestment period, which is scheduled to
end in July 2021. The maturity has been extended by two years to
July 2030.

The issuer has introduced the new class X notes, ranking pari
passu and pro-rata to the class A-R notes. Principal on these
notes is scheduled to amortise in equal instalments during the
first eight quarterly payment dates. Class X notional is excluded
from the over-collateralisation tests calculation, but a breach
of this test will divert interest and principal proceeds to the
repayment of the class X notes.

RATING SENSITIVITIES

A 25% increase in the obligor default probability could lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates could lead to a downgrade of
up to five notches for the rated notes.


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


BANCA POPOLARE: Italy to Start Wind-Down After Intesa Deal
----------------------------------------------------------
Sonia Sirletti, Alexander Weber and Alessandro Speciale at
Bloomberg News report that Italy will take the next step to wind
down two failed banks in the northern Veneto region when the
government meets to adopt a plan that may smooth the sale of the
stricken lenders' assets to another firm.

The Finance Ministry said on June 23 that all measures would be
taken to ensure that senior creditors and depositors of Banca
Popolare di Vicenza SpA and Veneto Banca SpA would be protected
in a wind-down under the national insolvency law, and customers
would see no interruption in service, Bloomberg relates.

The liquidation deal may see Intesa Sanpaolo SpA, Italy's biggest
bank by market capitalization, take on the two banks' good assets
for a token price, Bloomberg says.  In recent months the ECB, the
European Commission and the Italian Treasury reviewed several
options for the two lenders, Bloomberg recounts.  In the end,
they settled on a plan to split the firms into good and bad
banks, with Intesa buying the good one, Bloomberg relays, citing
people familiar with the matter.

The government tried for months to rescue the two banks, but its
efforts ended on June 23 when the European Central Bank, as cited
by Bloomberg, said the firms were failing or likely to fail, and
sent them to the Single Resolution Board in Brussels for
disposal.  The SRB, in turn, handed the banks over to Italian
authorities after concluding there was no public interest in
resolving them under European Union law, a process that would
have exposed senior debt to losses, Bloomberg discloses.

The two banks were forced to ask the government for aid after
they failed to raise capital from investors in 2016, Bloomberg
notes.  After reviewing their books, the ECB in April said they
needed about EUR6.4 billion (US$7.2 billion) of new capital,
prompting a search for ways of bridging the gap, Bloomberg
recounts.

Banca Popolare di Vicenza (BPVi) is an Italian bank.  The bank
was the 13th largest retail and corporate bank of Italy by total
assets, according to Mediobanca.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Mar 21,
2017, Fitch Ratings downgraded Banca Popolare di Vicenza's
(Vicenza) Long-Term Issuer Default Rating (IDR) to 'CCC' from
'B-' and Viability Rating (VR) to 'cc' from 'b-'. The Long-Term
IDR has been placed on Rating Watch Evolving (RWE).

The downgrade of Vicenza's VR to 'cc' reflects Fitch's view that
it is probable that the bank will require fresh capital to
address a material capital shortfall, which under Fitch's
criteria would be a failure.

The downgrade of the Long-Term IDR to 'CCC' reflects Fitch's view
that there is a real possibility that losses could be imposed on
senior bondholders if a conversion or write-down of junior debt
is not sufficient to strengthen capitalisation and if the bank
does not receive fresh capital in a precautionary
recapitalisation.


ENTE AUTONOMO: Sept. 15 Bid Submission Deadline Set for Unit
------------------------------------------------------------
Ente Autonomo Magazzini Generali di Verona's Liquidator,
Mr. Giuseppe Capra, and Procedure Manager, Mr. Giuseppangelo
Lopez, has called a public auction for the transfer of all the
shares of the subsidiary Immobiliare Magazzini s.r.l. located
within the freight terminal "Quadrante Europa" of Verona.

The overall minimum auction amount is equal to EUR20,700,000.00,
in accordance with the expert valuation.

The procedure will be implemented through a public auction
utilizing secret bidding, in accordance with Article 73,
paragraph one, letter c) and Article 76 of RD (Royal Decree) No.
827/1924; the awarding will be implemented in favor of the party
which offers a price that is equal to or greater than the minimum
auction price.

The deadline for sending bids is September 15, 2017.  Legal
persons/entities which have completed the mandatory inspection of
the real estate properties owned by Immobiliare Magazzini S.r.l.
will be authorized to participate in the auction.  The inspection
request must be filed within July 31, 2017.

The auction will take place on September 18, 2017 at 10:00 a.m.
within the offices of Notary Giovanni Calvelli in Verona.  Any
additional information and the complete documentation are
available within the website www.immobiliaremagazzini.it

The registered office of Ente Autonomo Magazzini Generali di
Verona is located at 37137 - Verona, via Sommacampagna No. 28.


MECCA LEAD: Competitive Procedure Contract Awarding by July 28
--------------------------------------------------------------
Dr. Paolo Cosentino, the official receiver of Mecca Lead
Recycling s.p.a., in liquidation, is going to carry out a
competitive procedure for the selection of an assignee or,
alternatively, a tenant for company or for a business branch
owned by the bankrupt company.

Mecca Lead Recycling is based in Lamezia Terme in the San Pietro
Lametino locality operating in the field of the recovery of lead
from used batteries and lead scrap.

The necessary acts are in the process of being drafted and the
possible award of the contract is expected by July 28, 2017.

Interested parties are invited to contact the official receiver
calling the following numbers: 0039 0968 448823, 0039 348 7358129
or by email: cosentinopaolo@tiscali.it; certified e-mail:
f8.2017lameziaterme@pecfallimenti.it

The judge overseeing the bankruptcy process is Dr. Adele Foresta.


* Germany Criticizes Italy's Latest Bank Bailout
------------------------------------------------
Rainer Buergin and Birgit Jennen at Bloomberg News report that
Germany sounded the alarm over Italy's latest bank bailout,
saying the apparent bending of European Union rules casts doubt
on efforts to further integrate the euro zone.

The government in Rome announced the country's biggest bank
rescue to date on June 25 as it committed as much as EUR17
billion (US$19 billion) to clean up two failed banks, Bloomberg
relates.  According to Bloomberg, while the European Commission
approved the plan, German officials pointed to the involvement of
state aid to shield senior creditors from losses as working
around EU law established to deal with bank failures.

That exemption drew criticism from members of Chancellor Angela
Merkel's ruling coalition, who cited the need to uphold European
law without setting unhealthy precedents, Bloomberg notes.

"We're in a phase where we are faced with the question of whether
we can succeed at applying European law, irrespective of all the
understandable domestic policy discussions," Bloomberg quotes
Alexander Radwan, a lawmaker from Merkel's CSU Bavarian sister
party who sits on the Bundestag's finance committee, as saying in
an interview on June 26.  "Cases like these make it more
difficult to think about deepening the economic and monetary
union."

German Finance Minister Wolfgang Schaeuble's department also
sounded a note of caution on the European Commission's approval
of Italy's rescue of the Veneto banks, Bloomberg relays.

"It's undisputed in Europe that a major goal of the new banking
regulation is to protect the taxpayer," Finance Ministry
spokeswoman Friederike von Tiesenhausen, as cited by Bloomberg,
said in Berlin on June 26.  "The European Commission has the
responsibility to ensure that state aid is kept to a minimum,
also to prevent a de facto circumvention of settlement rules by
national insolvency regimes."



=============================
S L O V A K   R E P U B L I C
=============================


SLOVAKIA STEEL: Bankruptcy Trustee Commences Asset Sale
-------------------------------------------------------
Jan Lopatka at Reuters reports that a bankruptcy trustee has
started an international tender to sell the assets of Slovakia
Steel Mills mini-mill in eastern Slovakia.

The mill with annual capacity of 620,000 tonnes of steel billets
and a rolling mill operation was opened in 2011 in the eastern
town of Strazske, but fell into bankruptcy in 2015, and the
operations have been mothballed, Reuters recounts.

"Subject of the sale of the properties represents mainly the key
equipment, buildings, other operating assets supporting the
production process," Reuters quotes a sale notice on the
trustee's website as saying.

Slovakia's MiddleCap Partners was chosen as adviser for the sale,
Reuters discloses.

According to Reuters, deadline for applications is July 8,
indicative offers are due on Sept. 25 and final offers due on
Dec. 19 this year.

The firm's biggest creditor is the state-owned Czech Export Bank,
Reuters notes.


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


BANKIA SA: Agrees to Take Over BMN in EUR825-Mil. Deal
------------------------------------------------------
Tobias Buck at The Financial Times reports that the consolidation
of the Spanish banking sector continues apace, after state-
controlled Bankia agreed to take over BMN, another nationalized
lender, in a deal that values the smaller entity at EUR825
million.

Both Bankia and BMN were created through mergers between regional
savings banks, or cajas, but fell victim to Spain's 2012 banking
crisis, the FT discloses.

The two groups had to be recapitalized and nationalized after
loading up on toxic real-estate assets and loans in the run-up to
the country's housing bust, the FT notes.

Bankia absorbed more than EUR22 billion in state funds -- the
most of any Spanish lender during the crisis -- while BMN
required EUR1.65 billion in public aid, the FT relates.

Bankia SA is a Spain-based bank.  It represents a universal
banking business model based on multi-brand and multi-channel
management, offering its products and services to individuals,
small and medium enterprises, corporations, as well as public and
private institutions.  The Bank's activities are divided into
three segments: Retail banking, which provides financial services
to consumers, private banking, asset management, as well as
insurance products; Business banking, which focuses on serving
legal entities and self-employed, and Corporate center, which
includes portfolio of investees and held for sale assets.  The
Bank operates branches and representative offices in Spain and
China.  It is a subsidiary of BFA Tenedora de Acciones SAU.


=====================
S W I T Z E R L A N D
=====================


FLIGHTLEASE AG: July 11 Deadline Set for Inspection of Claims
-------------------------------------------------------------
In the debt restructuring proceedings with the assignment of
assets concerning Flightlease GA in debt restructuring
liquidation, Balz Zimmermann-Strasse, 8302 Kloten, the creditors
concerned will be able to inspect the supplement no. 2 to the
schedule of claims until July 11, 2017 at the offices of the
liquidator, Karl Wuthrich, attorney-at-law, Wenger Plattner,
Seestrasse 39, Goldbach Center, 8700 Kusnacht.  For inspection
creditors are asked to call the hotline on +41 43 222 38 50 to
arrange an appointment.

Actions to contest the supplement no. 2 to the schedule of claims
must be lodged with single judge at the District Court of Bulach,
Spitalstrasse 13, P.O. Box, 8180 Bullach, within 20 days of the
official notice of the publication in the Swiss Official Gazette
of commerce.  The respective official notice in the Swiss
Official Gazette of Commerce was made on June 21, 2017.  The 20-
day period will thus run until July 11, 2017 (date of postmark of
a Swiss post office).  If no actions are lodged, the supplement
no. 2 t0 the schedule of claims will become final.


FLIGHTLEASE AG: July 3 Interim Payment List Inspection Deadline
---------------------------------------------------------------
The provisional distribution list for the 3rd interim payment in
the debt restructuring proceedings with assignment of assets
concerning Flightlease AG in debt restructuring liquidation, Balz
Zimmermann-Strasse, 8302 Kloten, will be open to inspection by
the creditors concerned between June 21, 2017, and July 3, 2017,
at the offices of the liquidator, Karl Wuthrich, attorney-at-law,
Wenger Planttner, Goldbach-Center, Seestrasse 39, 8700 Kusnacht.
For inspection, please call the hotline on +41 43 222 38 50 to
arrange an appointment.

Appeals against the provisional distribution list must be lodged
with the District Court of Bulach, supervisory authority for debt
enforcement and bankruptcy, Spitalstrasse 13, P.O. Box, 8180
Bulach, within ten days of the list's publication, i.e., by July
3, 2017, (date of postmark of a Swiss post office).  If no
appeals are lodged, the 3rd interim payment will be made as
provided for in the provisional distribution list.



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


DIAMANTBANK PJSC: NBU Revokes Licenses, Orders Liquidation
----------------------------------------------------------
On June 22, 2017, the National Bank of Ukraine, upon the proposal
of the Deposit Guarantee Fund, issued Decision No. 394-D on
revoking the banking license of, and liquidating Diamantbank
PJSC.

On April 24, 2017, pursuant to Article 76 of the Law of Ukraine
on Banks and Banking, the NBU declared Diamantbank PJSC
insolvent.


* UKRAINE: NBU Defends Addn'l Capitalization of State-Owned Banks
-----------------------------------------------------------------
Ukrainian News Agency reports that the National Bank of Ukraine
says the additional capitalization of state-owned banks early in
2017 was required because of bankruptcy of some large borrowers
of the banks.

According to Ukrainian News Agency, Yevhen Dubohryz, head of the
section for financial stability at the NBU, said "Early in 2017
there were a lot questions on necessity of additional
capitalization of large state-owned banks for UAH 10.1 billion.
The main reason for the additional capitalization was bankruptcy
of five large business groups.  The names of owners of the
business groups sound familiar to all.  They stopped servicing
their loans in 2015-2016.  Early this year the banks had to
recognize the losses and they required additional capital."

As Ukrainian News Agency earlier reported, in February 2017, the
Cabinet of Ministers endorsed a decision on additional
capitalization of the Oschadbank state savings bank for UAH3.5
billion and the Ukreximbank state export and import bank for UAH3
billion.


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


BLUR GROUP: May Fall Into Administration Following Cash Woes
------------------------------------------------------------
James Titcomb at The Telegraph reports that Blur Group, a British
technology company that once promised to become the "eBay for
business services", is close to collapse as it runs out of cash.

According to The Telegraph, the company said it may fall into
administration after it has been unable to raise emergency cash
and stem its losses.

The AIM-listed company, once valued at GBP235 million, has lost
more than 99% of its value amid a string of profit warnings,
emergency cash calls and accounting scrutiny, The Telegraph
discloses.

On June 23 it warned investors that their holdings could be worth
nothing and said it would cut its employees' pay after running
low on cash, The Telegraph relays.

The company, as cited by The Telegraph, said it had tried to
raise new funds but that potential investors had demanded
"onerous conditions which the board considered were not in the
best interests of shareholders" and that it needed new funding in
the next six weeks to keep it afloat.

"If alternative sources of financing are not available the board
would be required to take action to protect the interests of
creditors and which could result in the value attributable to
shareholders being severely reduced or becoming nil," The
Telegraph quotes Blur as saying.

Cash reserves have dropped from US$1.7 million (GBP1.3 million)
to US$1.14 million in two months, with little sign of the
business getting a grip on its losses, The Telegraph notes.


MABEL MEZZCO: Moody's Revises Outlook to Stable, Affirms B2 CFR
---------------------------------------------------------------
Moody's Investors Service changed the outlook on the ratings of
Mabel Mezzco Limited to stable from positive. Moody's has also
affirmed the company's B2 corporate family rating (CFR) and B2-PD
probability of default rating (PDR). Concurrently, Moody's has
also assigned a B2 (LGD 3) rating on the new GBP225 million
senior secured notes due 2022 to be issued by Wagamama Finance
plc. This follows the company's announcement that it intends to
refinance the existing GBP150 million senior secured notes, as
well as to repay GBP60.7 million loan notes. The ratings on the
existing notes of Wagamama Finance plc will be withdrawn upon
repayment.

RATINGS RATIONALE

"Moody's decision to affirm Wagamama's CFR and change the outlook
to stable reflects the company's strong EBITDA growth achieved
over the last twelve months, good top line growth resulting from
new restaurant openings as well as above market like-for-like
(LFL) sales growth, and improved EBITDA margins, which balance
the debt increase in the context of the notes refinancing." says
Emmanuel Savoye, an AVP at Moody's.

Wagamama continued to perform strongly in the last financial
year. As of April 2017 (FYE 2017), UK like-for-like sales
increased by 8.2% compared to FYE April 2016 and total reported
EBITDA increased by 19% to GBP42.4 million, ahead of the original
business plan. However, the increased amount of debt pro-forma
for the refinancing results in a Moody's adjusted leverage of
6.6x from 5.4x, a high level for the rating category and a major
driver for the change in outlook. Nevertheless, when taking into
account the positive contribution of new restaurant openings as
well as organic growth, Moody's expects Moody's adjusted leverage
to reduce to below 6.5x in the next 12-18 months, within Moody's
guidance for the B2 rating.

The UK Casual Dining industry is expected to continue to grow,
driven by favourable trends including increases in the frequency
of consumers eating out and restaurant chains gaining market
share from independent restaurants. However, Moody's also notes
that the industry is increasingly competitive and potentially
overcrowded due to an increase in supply. In addition, a less
favourable macroeconomic environment may affect consumption, with
rising inflation reducing consumers' disposable income. Lastly,
Moody's expect pressure on margins from ongoing increases in
minimum national living wages, higher imported food costs due to
a weaker currency, and new business rates increasing costs
particularly in London.

Liquidity is expected to remain adequate and includes about GBP34
million cash on balance sheet as of FYE 2017 and a fully undrawn
GBP15 million super senior revolving credit facility maturing in
2022. There is no scheduled debt amortisation until the bond
maturity in 2022 and ample headroom under the minimum EBITDA
covenant. Moody's only expects moderate free cash flow generation
in the next 24 months due to ongoing openings and refurbishments
costs, but recognize that a large portion of the expected capex
is discretionary.

STRUCTURAL CONSIDERATIONS

The PDR of B2-PD, in line with the CFR, reflects the assumption
of a 50% recovery rate in Moody's Loss Given Default model, in
line with Moody's customary approach for structures which contain
both bank debt and senior notes. The senior secured notes are
rated B2, in line with the CFR, reflecting the limited amount of
debt ranking ahead of the notes in Wagamama's overall capital
structure, notably its GBP15 million super senior RCF (unrated).
Under the terms of an intercreditor agreement, the liens securing
the senior secured notes rank pari passu with the liens securing
the RCF, while in the event of an enforcement of the security,
holders of the senior secured notes will receive proceeds from
the security only after the lenders under the RCF have been
repaid in full.

OUTLOOK

The stable outlook reflects Moody's expectations that Moody's
adjusted debt-to-EBITDA will decline in the next 12 to 18 months
supported by positive growth in like-for-like revenues as well as
growth in EBITDA through the roll out of new restaurants.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the rating could materialise if operational
key performance indicators remain strong and the Moody's adjusted
debt/EBITDA falls towards 5.0x on a sustainable basis, with
Moody's adjusted EBIT coverage of interest expenses moving above
1.5x.

Conversely, downward pressure on the rating could arise if
Moody's-adjusted debt/EBITDA remains above 6.5x on a sustainable
basis or Moody's-adjusted EBIT coverage of interest expenses
falling below 1.0x or liquidity concerns emerge. Moody's could
also consider downgrading the ratings in the event of any
material acquisitions or changes in financial policy.

List of affected ratings:

Affirmations:

Issuer: Mabel Mezzco Limited

-- Corporate Family Rating, Affirmed B2

-- Probability of Default Rating, Affirmed B2-PD

Assignments:

Issuer: Wagamama Finance plc

-- Backed Senior Secured Regular Bond/Debenture, Assigned B2

Outlook Actions:

Issuer: Mabel Mezzco Limited

-- Outlook, Changed To Stable From Positive

Issuer: Wagamama Finance plc

-- Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Restaurant
Industry published in September 2015.

Founded in 1991, Wagamama has grown to become a major player in
its core UK market, where it is the only player of scale offering
pan-Asian cuisine in the branded restaurant industry. As of April
2017, it operated 124 sites in the UK, 4 sites in the US, as well
as having 44 sites through a franchise model internationally
across Europe, the Middle East and New Zealand. Headquartered in
London, it has approximately 5,000 employees worldwide. For FYE
to April 2017, Wagamama reported revenues of GBP266.1 million and
EBITDA (unadjusted) of GBP42.4 million.


* UK: Must Not Neglect Business Rescue Reform Plans, R3 Says
------------------------------------------------------------
The government must not neglect its business rescue reform plans
as it prepares for Brexit, says insolvency and restructuring
trade body, R3.

Plans to introduce the government's year-old reform proposals --
or any other corporate governance reforms -- appeared to be
absent from the June 21 Queen's Speech.

As this will be the only Queen's Speech for two years, this could
put the UK economy on a less competitive footing as the country
prepares for Brexit.

R3 has long argued that action to update the UK's restructuring
framework is needed to ensure the UK remains an international
insolvency and restructuring hub post-Brexit.

The plans, originally put forward in May 2016, included proposals
to give business directors last chance protection from creditors
in order to turn their business around before an insolvency
procedure, reforms to ensure struggling businesses receive vital
supplies, and the introduction of a new court-based restructuring
procedure, similar to the US's Chapter 11 bankruptcy proceedings.

Adrian Hyde, R3's President, says: "The UK has one of the world's
best insolvency and restructuring frameworks.  It attracts both
businesses and investment to the UK by ensuring businesses'
financial difficulties can be resolved quickly and effectively.

"Unfortunately, Brexit risks creating barriers to cross-border
insolvency and restructuring work, while other countries,
including EU members and places like Singapore, are improving
their restructuring frameworks.  We need to reform to stay ahead
of the competition."

Mr. Hyde adds: "We welcomed the government's reforms when they
were first proposed, and with some alterations they could make an
incredibly valuable addition to the UK's business landscape.
They could make business rescues more viable and will be
attractive to international companies and investors."

"The challenges of minority government and the pressure that
Brexit will put on the legislative timetable threaten to delay
these much-needed changes.  Both the government and opposition
parties should back the reforms and get them onto the statute
books so the UK can show it is still open for business."

Mr. Hyde adds: "The business rescue reforms are a key change, but
they are not the only ones the insolvency and restructuring
profession wants to see.  Reform is also needed, for example, to
make it easier to intervene earlier to help businesses with
pension scheme deficits, but it's not clear from the Queen's
Speech whether proposals from this spring's pension consultation
still feature in the government's plans."

Financial guidance reforms announced

R3 welcomes the inclusion in the Queen's Speech of plans to push
ahead with consumer reforms, including the creation of a "Single
Financial Guidance Body".

At the end of 2016, the government consulted on merging existing
financial guidance bodies into one.

Mr. Hyde says: "A new single advice body would be welcome, and
the provision of debt advice should remain a government priority.
Any new body should look also look at how people in debt sort out
their situation and at the stigma associated with debt and
insolvency.

"We look forward to working with any new body to break down
barriers that stop indebted individuals from getting the advice
they need and dealing with their debts in an appropriate manner."

The government's commitment to reform of mental health services
is also welcome.  R3's recent research has found that personal
finance issues have a significant impact on people's mental
health, while those in mental distress may find it far harder to
deal with their finances, allowing debts to spiral out of
control.

It looks like the door could still be open to introduce a
"Breathing Space" from creditors for indebted individuals.

Since 2015, R3 has called on the government to give financially
indebted individuals a 28-day break from creditor action --
"Breathing Space" -- to use as a final opportunity to receive
professional advice.

Mr. Hyde says: "It's vitally important that indebted individuals
end up in a debt solution appropriate to their situation.  This
doesn't always happen, and the difficulty of being able to get
professional, independent advice in a relatively unpressured
environment is a factor.

"A short 'Breathing Space' would give people in debt the chance
to seek advice and deal with their debts effectively.  Both the
Conservatives and Labour parties featured 'Breathing Space' in
their manifestos, which will make it easier for the government to
pass any Bill containing this proposal."

He adds: "The length of the 'Breathing Space' matters: too long
and it's not fair on creditors and it may discourage lending.
The government should make sure it listens to creditor voices
when it consults on the proposals."

Other reforms
Prior to the election, R3 also called on the government to:

  --- Ensure that insolvency appointments and relevant court
judgments continue to be recognised across Europe as part of any
Brexit deal

   -- Encourage financially distressed individuals and businesses
to seek early professional advice

   -- Take action to resolve the conflict between employment and
insolvency law

   -- Take action regarding concerns about the insolvency
practitioner bonding market.

Mr. Hyde says: "By threatening agreements that make it easy to
resolve insolvencies and restructurings across EU borders, Brexit
presents a huge challenge to the insolvency and restructuring
profession -- and by extension, creditors and struggling
businesses. The government must ensure Brexit does not create
unhelpful barriers to dealing with cross-border insolvencies.

"Beyond Brexit, there are issues in the insolvency and
restructuring landscape that the government and opposition will
need to address urgently. It's important that Brexit doesn't
become a distraction."



                            *********

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
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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