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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, May 17, 2017, Vol. 18, No. 097


                            Headlines


C R O A T I A

AGROKOR DD: Konzum Stores Crucial to Successful Restructuring


G E O R G I A

BANK OF GEORGIA: Moody's Assigns (P)Ba3 Rating to Senior Notes


G R E E C E

GREECE: Falls Back Into Recession Amid Bailout Talks


I R E L A N D

AURIUM CLO III: Moody's Assigns B2(sf) Rating to Class F Notes
EATON VANCE X: Moody's Affirms Ba3(sf) Rating on Cl. E-1 Notes


L U X E M B O U R G

INTERNATIONAL AUTOMOTIVE: Moody's Cuts CFR to Caa1, Outlook Neg.
MONITCHEM HOLDCO: Moody's Affirms B3 CFR & Alters Outlook to Neg.


R U S S I A

AK BARS: Moody's Revises Outlook to Stable & Affirms B2 Rating


T U R K E Y

EXPOBANK AS: Moody's Withdraws B1 Long Term Deposit Ratings


U K R A I N E

ODESA PORTSIDE: Bankruptcy Unacceptable, Pres. Poroshenko Says
PRIVATBANK: Poroshenko Vows to Bring Ex-Stockholders to Justice


U N I T E D   K I N G D O M

JOHNSTON PRESS: Scraps Plan to Offer Bigger Bonus to CEO
NOMAD FOODS: Moody's Assigns B1 CFR, Outlook Stable
TATA STEEL: Settles Dispute Over Pensions at UK Business
* UK Prime RMBS 90+ Day Delinquencies Stable in 3 Mos. Ended Feb.


                            *********


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C R O A T I A
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AGROKOR DD: Konzum Stores Crucial to Successful Restructuring
-------------------------------------------------------------
Alexander Winning at Reuters reports that the potential collapse
of Agrokor, which is the biggest employer in the Balkans and
accounts for 15% of Croatia's economic output, would almost
certainly snuff out the flickers of recovery from three years of
biting recession and could even topple the government of the
European Union's newest member.

According to Reuters, keeping shelves stocked at the 700 stores
of the Agrokor-owned Konzum supermarket chain, many of them the
only shops for miles among scattered coastal villages, will be
crucial to a successful restructuring of Croatia's biggest
private company.

"The key challenge is not allowing Konzum to stop.  If that
stops, they are in trouble, as Konzum has been the cash-
generating machine," Reuters quotes Luka Oreskovic, a partner at
investment and advisory firm Spitzberg Partners, as saying.

"If they don't have stock, they lose the shopper.  So they need
to fill the shelves ahead of tourist season and invest in
marketing," Mr. Oreskovic said, Reuters cites.

Once lost, the cost of winning back shoppers would simply be too
great, added Mr. Oreskovic, who estimates that Agrokor needs to
find about EUR200 million (US$217.4 million) to see it through
the summer, Reuters states.

Ivica Todoric, who still owns more than 95% of Agrokor, built up
the company through an aggressive acquisition drive in Bosnia,
Serbia and Slovenia but in so doing generated debts estimated at
45 billion kuna (US$6.6 billion), Reuters discloses. That equates
to six times Agrokor's equity, Reuters cites.

Yet no one knows if that is the true magnitude of the debt,
Reuters points out.  Creditors have until June 9 to submit claims
and PricewaterhouseCoopers has been brought in to review past
financial reports after Agrokor said it may have made errors,
Reuters relays.

Under emergency legislation dubbed the Lex Agrokor law, the
company has been set a 15-month deadline to complete its
restructuring, with the government also appointing New York-based
turnaround specialist AlixPartners as an adviser, Reuters
discloses.

AlixPartners did not respond to a request for comment but has
said that it would first focus on securing fresh liquidity,
Reuters notes.

Agrokor, which has interests in a vast array of businesses from
construction to commodity trading, travel and tourism, secured an
initial EUR80 million cash injection from five local banks in
April, but Ante Ramljak, the Government Commissioner for Agokor,
has said the company will need EUR450 million this year to
operate normally, Reuters states.

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 May 10, 2017
that S&P Global Ratings lowered its corporate credit rating on
Croatian retailer Agrokor d.d. to SD/--/SD (SD: selective
default) from CC/Negative/C.

At the same time, S&P lowered its issue rating on the three
series of senior unsecured notes to 'D' from 'CC'.

S&P understands that, on May 1, 2017, Agrokor missed a coupon
payment on its EUR300 million senior secured notes due 2019.  On
April 6, 2017, Croatia enacted a law -- "Law on Procedures for
Extraordinary Management in Companies of Systematic
Significance" -- that restricts Agrokor from making any interest
or principal payments on its debt over the next 12 months.  Under
the standstill agreement Agrokor signed with its main lenders,
its bank debt payments are currently frozen.  Under S&P's
criteria, it considers all the above to be tantamount to a
default, because S&P does not expect Agrokor to be able to make a
payment within the grace period of 30 days.

The TCR-Europe on April 17, 2017, reported that Moody's Investors
Service has downgraded Croatian retailer and food manufacturer
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. The outlook on the company's ratings remains negative.

"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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G E O R G I A
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BANK OF GEORGIA: Moody's Assigns (P)Ba3 Rating to Senior Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional senior
unsecured foreign-currency rating of (P)Ba3 to the planned
Georgian lari denominated issuance of JSC Bank of Georgia (BoG,
long-term local-currency deposits Ba3 stable, baseline credit
assessment ba3), in line with BoG's long-term local-currency
deposit rating.

Moody's has assigned a foreign-currency rating to these lari
denominated notes because all sums payable by the bank under or
in connection with the notes will be made solely in US dollars.

RATINGS RATIONALE

The (P)Ba3 foreign-currency rating assigned by Moody's to the
senior unsecured notes is aligned with BoG's long-term local-
currency deposit rating, reflecting that the instruments to be
issued will be unsecured and unsubordinated obligations of BoG,
ranking at least pari passu at all times with all other
unsubordinated obligations of the bank, and that the rating is
unconstrained by Georgia's foreign currency bond ceiling of Ba1.

Moody's foreign currency bond ceiling captures transfer risk
(restrictions on moving foreign exchange offshore) and
convertibility risk (restrictions on freely converting local
currency to foreign currency) and was considered in rating BoG's
lari denominated senior unsecured notes because payments will be
made in foreign currency. The conversion from lari into dollars,
as amounts become payable, will be made at the prevailing rates
for each payment according to the terms of the notes.

BoG's long-term ratings are driven by its standalone credit
profile and reflect its entrenched domestic market position,
commanding approximately a third of the market share in terms of
assets as of March 2017, underlining strong profitability with a
return on average assets of 3.1% for 2016; adequate
capitalisation with a tangible common equity to risk-weighted
assets of 10.8%; but also elevated credit risks arising from
extensive lending in foreign currency, rapid credit growth as
well as single-party concentrations in the context of Georgia's
developing economy, which is vulnerable to external shocks.
However, Moody's expects economic growth will accelerate in 2017
and support BoG's asset quality during the year. Although the
bank's liquidity is adequate, this is essential in light of the
its high deposit dollarisation and an amount of more confidence-
sensitive nonresident deposits.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Moody's will
endeavour to assign definitive ratings to actual issuances. A
definitive rating may differ from a provisional rating.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on BoG's long-term ratings is contingent on the
evolution and diversification of the Georgian economy and a
substantial reduction of loan and deposit dollarisation.

Downward pressure on BoG's ratings would develop as a result of
rising levels of non-performing loans, and hence credit costs,
beyond Moody's current expectations, which would impact the
bank's bottom-line profitability. The ratings could also be
downgraded as a result of a resurgence of political risk that
would lead to significant funding outflows. Finally, a
significant deterioration of domestic operating conditions in
Georgia, as described in Moody's Macro Profile for the country,
would also put negative pressure on the bank's ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Banks published
in January 2016.

BoG is headquartered in Tbilisi, Georgia. The bank reported total
assets of GEL10.8 billion (approximately USD4.1 billion) as of
December 31, 2016.



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G R E E C E
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GREECE: Falls Back Into Recession Amid Bailout Talks
----------------------------------------------------
BBC News reports that official figures from Eurostat show Greece
has fallen back into recession for the first time since 2012.

According to BBC, the country's gross domestic product (GDP) fell
by 0.1% in the first three months of the year after shrinking by
1.2% in the final quarter of 2016.

The figures come as Greek unions begin two days of industrial
action against cuts to pensions and tax rises insisted on by
creditors, BBC notes.

Greece is still struggling to secure a new bailout from
international lenders, BBC states.

Its government hopes the loan payment will be approved by a
meeting of eurozone finance ministers on May 22, BBC relays.

Howard Archer, chief economist at IHS Markit, said Greece's
return to recession was largely due to uncertainty over the
bailout, BBC relates.

"Encouragingly, agreement between Greece and its lenders on
reforms was agreed in early May," BBC quotes Mr. Archer as
saying.

"With EU creditors now expected to finally sign off on Greece's
latest injection of rescue cash, the European Commission expects
growth to bounce back to 2.6% this year," Mr. Arches says, the
report cites.



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I R E L A N D
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AURIUM CLO III: Moody's Assigns B2(sf) Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Aurium CLO III
Designated Activity Company:

-- EUR220,000,000 Class A Senior Secured Floating Rate Notes due
    2030, Definitive Rating Assigned Aaa (sf)

-- EUR41,500,000 Class B-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aa2 (sf)

-- EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aa2 (sf)

-- EUR25,500,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned A2 (sf)

-- EUR18,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Baa2 (sf)

-- EUR22,500,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Ba2 (sf)

-- EUR10,500,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

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

Aurium III is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second lien loans, high yield bonds and mezzanine
loans. The portfolio is expected to be at least 80% ramped up as
of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

The remainder of the portfolio will be acquired during the five
month ramp-up period in compliance with the portfolio guidelines.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer issued EUR39,350,000 of subordinated notes. Moody's will
not assign a rating to this class of notes.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
October 2016. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche.

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

Par Amount: EUR375,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 4.10%

Weighted Average Coupon (WAC): 5.25%

Weighted Average Recovery Rate (WARR): 43%

Weighted Average Life (WAL): 8 years

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with local currency country
risk ceiling ratings between A1 to A3 cannot exceed 10%. Given
the current sovereign ratings of eligible countries, there are no
obligors domiciled in a country for which the LCC is below A3.
The remainder of the pool will be domiciled in countries which
currently have a LCC of Aa3 and above. Given this portfolio
composition, the model was run without the need to apply
portfolio haircuts as further described in the methodology.

Stress Scenarios:

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

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

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B-1 Senior Secured Floating Rate Notes: -1

Class B-2 Senior Secured Fixed Rate Notes: -1

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: 0

Class F Senior Secured Deferrable Floating Rate Notes: 0

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

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B-1 Senior Secured Floating Rate Notes: -3

Class B-2 Senior Secured Fixed Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -3

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Methodology Underlying the Rating Action:

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


EATON VANCE X: Moody's Affirms Ba3(sf) Rating on Cl. E-1 Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by Eaton Vance CDO X Plc:

-- EUR14,750,000 Class C-1 Third Priority Deferrable Secured
    Floating Rate Notes due 2027, Upgraded to Aaa (sf);
    previously on Jan 22, 2016 Upgraded to Aa1 (sf)

-- USD19,175,000 Class C-2 Third Priority Deferrable Secured
    Floating Rate Notes due 2027, Upgraded to Aaa (sf);
    previously on Jan 22, 2016 Upgraded to Aa1 (sf)

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

-- EUR150,000,000 (Current outstanding balance of EUR27.94M)
    First Priority Senior Secured Floating Rate Variable Funding
    Note due 2027, Affirmed Aaa (sf); previously on Jan 22, 2016
    Affirmed Aaa (sf)

-- EUR92,500,000 (Current outstanding balance of EUR0.76M) Class
    A-1 First Priority Senior Secured Floating Rate Notes due
    2027, Affirmed Aaa (sf); previously on Jan 22, 2016 Affirmed
    Aaa (sf)

-- USD120,250,000 (Current outstanding balance of USD23.98M)
    Class A-2 First Priority Senior Secured Floating Rate Notes
    due 2027, Affirmed Aaa (sf); previously on Jan 22, 2016
    Affirmed Aaa (sf)

-- EUR18,000,000 Class B-1 Second Priority Secured Floating Rate
    Notes due 2027, Affirmed Aaa (sf); previously on Jan 22, 2016
    Affirmed Aaa (sf)

-- USD23,400,000 Class B-2 Second Priority Secured Floating Rate
    Notes due 2027, Affirmed Aaa (sf); previously on Jan 22, 2016
    Affirmed Aaa (sf)

-- EUR17,750,000 Class D-1 Fourth Priority Deferrable Secured
    Floating Rate Notes due 2027, Affirmed Baa2 (sf); previously
    on Jan 22, 2016 Upgraded to Baa2 (sf)

-- USD23,075,000 Class D-2 Fourth Priority Deferrable Secured
    Floating Rate Notes due 2027, Affirmed Baa2 (sf); previously
    on Jan 22, 2016 Upgraded to Baa2 (sf)

-- EUR10,000,000 (Current outstanding balance of EUR7.29M) Class
    E-1 Fifth Priority Deferrable Secured Floating Rate Notes due
    2027, Affirmed Ba3 (sf); previously on Jan 22, 2016 Upgraded
    to Ba3 (sf)

-- USD13,000,000 Class (Current outstanding balance of USD9.47M)
    E-2 Fifth Priority Deferrable Secured Floating Rate Notes due
    2027, Affirmed Ba3 (sf); previously on Jan 22, 2016 Upgraded
    to Ba3 (sf)

Eaton Vance CDO X Plc, issued in March 2007, is a Collateralised
Loan Obligation ("CLO") backed by a portfolio of mostly high
yield US and European loans. The portfolio is managed by Eaton
Vance Management. The transaction's reinvestment period ended on
February 22, 2014.

RATINGS RATIONALE

The rating upgrade on the Class C Notes is primarily a result of
the deleveraging of senior notes following the amortisation of
the underlying portfolio over the last year. Moody's notes that
in the last 4 payment dates the Class A and First Priority Senior
Secured Floating Rate Variable Funding (VFN) notes have redeemed
by approximately EUR114.24 million (or 32.15% of their original
balance). As a result of the deleveraging the
overcollateralisation ratios of the notes have increased
significantly. According to the March 2017 trustee report, the
Classes B, C, D and E OC ratios are 221.17%, 163.57%, 124.54% and
113.42% respectively compared to levels in March 2016 of 152.98%,
132.62%, 114.32% and 107.72% respectively.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par of EUR173.89 million and principal proceeds
balance of EUR30.04 million, defaulted par of EUR3.98 million, a
weighted average default probability of 19.95% over a 4.40 year
weighted average life (consistent with a 10 year WARF of 2821), a
weighted average recovery rate upon default of 48.53% for a Aaa
liability target rating, a diversity score of 49 and a weighted
average spread of 3.12%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. Moody's generally applies recovery rates
for CLO securities as published in "Moody's Approach to Rating SF
CDOs". In some cases, alternative recovery assumptions may be
considered based on the specifics of the analysis of the CLO
transaction. In each case, historical and market performance and
a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate of
the portfolio. Moody's ran a model in which it lowered the
weighted average recovery rate of the portfolio by 5%; the model
generated outputs were not different from the base case results
for the VFN, Class A, Class B and Class C and within one notch
for Class D and Class E.

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

Additional uncertainty about performance is due to the following:

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

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

3) Foreign currency exposure: The deal has a significant exposure
to USD denominated assets. Volatility in foreign exchange rates
will have a direct impact on interest and principal proceeds
available to the transaction, which can affect the expected loss
of rated tranches.

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



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L U X E M B O U R G
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INTERNATIONAL AUTOMOTIVE: Moody's Cuts CFR to Caa1, Outlook Neg.
----------------------------------------------------------------
Moody's Investors Service downgraded International Automotive
Components Group, S.A.'s (IACG) Corporate Family Rating (CFR) to
Caa1 from B2, Probability of Default Rating (PDR) to Caa1-PD from
B2-PD, and senior secured notes due June 1, 2018 to Caa3 from
Caa1. IACG's rating outlook remains negative.

The downgrade and negative outlook was based on the refinancing
risk associated with the approaching maturity 2018 wall that the
company has not been able to address to date despite favorable
credit market conditions and while the auto industry new
vehicles' production, though experiencing some modest weakness in
2017, is still at healthy levels. An inability to address the
maturities would elevate default risk. In addition, an increase
in interest costs if required to address the maturities would
weaken the company's cash flow and make it more difficult to fund
the operational restructuring and significant capital spending
necessary to maintain its competitive position.

Because the company has insufficient internal resources to fund
repayment of its outstanding revolver balance or the 2018 notes,
it is dependent on access to new capital to refinance the
maturities. IACG's $300 million and EUR 175 million asset based
revolving facilities expire on September 30th, 2020 and its $300
million senior secured bonds mature on June 1st, 2018. However,
the revolving facilities have a provision whereupon they become
due 90 days prior to the maturity of the notes if the notes are
not refinanced by that date, which would push the expiration of
the revolvers to March 3rd, 2018. As of 12/31/2016, IACG had $175
million of borrowings outstanding on its revolvers and $160
million of cash and Moody's expects negative free cash flow
generation over the next 12 to 18 months.

IACG announced in December 2016 plans to sell 70% of its soft
trim and acoustic operations to Shanghai Shenda Co. Ltd. Upon the
transaction closing, IACG will receive estimated net proceeds of
approximately $300 million. The proceeds will primarily be used
to fund the company's long-term strategic plan but also could be
used to help address its upcoming maturities. Under its existing
indenture, IACG is required to use the proceeds to pay down debt
if it is unable to invest them in the current business or make
capital expenditures within 365 days after the receipt of the
proceeds.

Moody's took the following specific actions on International
Automotive Components Group, S.A.:

Corporate Family Rating, Downgraded to Caa1 from B2

Probability of Default Rating, Downgraded to Caa1-PD from B2-PD

$300 Million Senior Secured Notes due 2018, Downgraded to
Caa3 (LGD5) from Caa1 (LGD5)

Outlook, Remains Negative

RATINGS RATIONALE

IACG's Caa1 CFR reflects its weak liquidity, negative projected
free cash flow, high customer concentration, volatility in
performance, low margins in part due to a commodity-oriented
product portfolio, low interest coverage, and exposure to
cyclical automotive markets. The rating derives support from the
company's global presence (over 77 manufacturing facilities
across the world), a broad product portfolio and moderate
financial leverage. IACG's financial performance has recovered
since 2015 when the company experienced significant operational
challenges at four of its major facilities that resulted in a 32%
decline in EBITDA at a time when U.S. sales of new vehicles
reached their peak and increased almost 6% from the prior year.
IACG will likely experience a decline in sales over the next two
to three years because the company was temporarily unable to bid
on new business, Chrysler's decision to phase-out Chrysler 200
and Dodge Dart models in North America and IACG's exit of some
non-core businesses. Moody's also expects a modest slowdown in
auto sales in 2017. As such, debt-to-EBITDA leverage (2.7x
12/31/2016 incorporating Moody's standard adjustments and
accounts receivable factoring program) will edge to a low 3x
range over the next 12 to 18 months.

IACG's liquidity is currently weak as the company's current cash
on the balance sheet ($160 million as of 12/31/2016) and negative
projected free cash flow generation is not sufficient to pay off
the outstanding balance of its revolvers and senior secured
notes. Moody's expects IACG to generate negative free cash flow
over the next 12 months including discretionary capital
expenditures in connection with its long-term strategic plan to
upgrade its equipment and rationalize its plants.

Future events that have the potential to drive IACG's rating
higher include addressing its current revolving facilities and
bond maturities at a manageable cost, sustained improvement in
operating performance and consistent positive free cash flow
generation. Moody's will consider stabilizing the outlook if the
maturities are addressed depending on the terms of any
refinancings.

Future events that have the potential to drive IACG's rating
lower include higher than expected deterioration in operating
performance or further deterioration in the company's liquidity
position including if Moody's believes the likelihood of
addressing the maturities is diminishing or the costs of a
financing are increasing.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.

International Automotive Components Group, S.A. (IACG), a
Luxembourg entity, together with its subsidiaries, offers
original equipment manufacturers around the world a broad
portfolio of interior components and systems through core product
categories, including Instrument Panels, Consoles & Cockpits,
Door & Trim Systems, Flooring & Acoustic Systems and Headliner &
Overhead Systems, as well as Other Interior & Exterior
Components. IACG is primarily owned by affiliates of WL Ross &
Co. LLC. IACG' sales for FY ended December, 2016 were
approximately $6.0 billion.


MONITCHEM HOLDCO: Moody's Affirms B3 CFR & Alters Outlook to Neg.
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating (CFR) and B3-PD probability of default rating (PDR) of
Monitchem Holdco 2 S.A. (Holdco2), the parent holding company of
the CABB Group (CABB), a major European supplier to the
agrochemical industry. Moody's has also affirmed the B2 ratings
of the EUR410 million fixed and floating rate senior secured
notes due 2021 issued by Monitchem Holdco 3 S.A. (Holdco3), a
sub-holding directly controlled by Holdco2, and the Caa1 rating
of the EUR175 million senior unsecured notes due 2022 issued by
Holdco2. Concurrently, Moody's has changed the outlook on all
ratings to negative from stable.

RATINGS RATIONALE

The affirmation of the B3 CFR reflects Moody's expectation that
the company will continue to maintain elevated adjusted EBITDA
margin around 20%, generate slightly positive free cash flow and
keep adequate liquidity at all times, thereby mitigating the
elevated financial risks stemming from a highly leveraged capital
structure. CABB's adjusted gross debt/EBITDA ratio was very high
at 7.2x at the end of 2016, from 5.5x in 2015, following a 12.6%
drop in EBITDA from the 2015 level. The expectation of a flat
operating performance in 2017 due to the lack of recovery in the
agrochemical end user market -- the most important for the
company -- means that adjusted gross leverage would most likely
remain high at over 7x also this year. Meaningful deleveraging
would only be possible from a material recovery in EBITDA, given
CABB's bullet debt structure represented by long-dated notes.
Improvement in operational performance and EBITDA is expected to
materialise from 2018, based on a recovery of the agrochemical
end market and the successful introduction of new products
currently in the pipeline of the company. This would help
deleveraging the company towards 6.5x by end of 2018. However, at
this stage timing of a market recovery and of introduction of new
CABB's products is uncertain.

The affirmation of the B3 rating also reflects CABB's (i) strong
market position as a major European supplier of monochlor acetic
acid ('MCA') and customized active ingredients ; (ii) efficient
manufacturing plants; (iii) well-established customer base of
large blue-chip chemical companies, mainly in the agrochemical
end user market; and (iv) strong track record of maximising
utilisation rates at the manufacturing plants, helped by
evergreen contracts with main clients. These factors mitigate the
main weaknesses of the business profile, which are (i) the modest
scale of the company, with revenues and EBITDA of EUR448m and
EUR88m respectively in 2016; (ii) the small absolute size of the
niche markets in which it operates; (iii) relatively high
operating risks stemming from CABB's dependence on a narrow
product portfolio and a limited number of production facilities;
and (iv) high level of customer and supplier concentration.
Furthermore, CABB derives more than 80% of its sales from Europe,
where Moody's expects the ultimate balance of the acetyls market
will depend on exports outside of Europe, given overcapacity in
the region and increased competitive pressure following the
entrance of a new MCA supplier from late 2016.

CABB's liquidity is adequate. At the end of December 2016 cash
and cash equivalents were approximately EUR45 million, higher
than in 2015 due to positive FCF being generated during 2016.
Projected positive, albeit modest FCF in 2017 and 2018 and almost
full availability of a large committed revolving credit facility
of EUR100 million due in December 2020 (unrated) should be
providing more than sufficient liquidity headroom over the next
18 to 24 months. There are no major scheduled debt repayments
until 2021, given CABB's bullet debt structure and long term debt
maturity profile for its notes, which are due in 2021 (senior
secured) and 2022 (senior unsecured).

RATIONALE FOR NEGATIVE OUTLOOK

The change of the outlook to negative from stable reflects
Moody's view that the B3 rating is weakly positioned, due to a
highly leveraged capital structure and no meaningful deleveraging
prospects in the next 12 months. The outlook reflects Moody's
expectation that credit metrics will remain weak in 2017, broadly
in line with 2016 levels. Furthermore, the negative outlook
reflects downside risks associated to (i) potential debt funded
M&A, which management may consider in the near future to
strengthen CABB's position in its custom manufacturing core
business; (ii) acceleration of expansionary capex to support
organic growth which otherwise would remain subdued; and/or (iii)
increased competitive pressure in the European MCA market
following the recent entrance of a new competitor.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's does not currently anticipate any upward pressure on the
B3 CFR. A stabilisation of the outlook would require the company
to improve its operational performance compared to the level of
2016 and reduce its adjusted gross debt/EBITDA ratio to below
6.5x, while preserving adequate liquidity. Albeit unlikely, the
rating agency would consider upgrading the rating over time if
the company were able to materially improve its credit metrics,
with a total adjusted gross debt/EBITDA ratio of less than 5.5x
on a sustained basis, while displaying positive free cash flow
generation and adequate liquidity.

Moody's would consider downgrading the rating if the company were
to perform materially below expectations, and /or in case of a
more aggressive than anticipated financial policy contemplating
special distributions to shareholders or debt financed
acquisitions, which would result in a further increase in the
leverage ratio towards level materially exceeding 6.5x on a
sustained basis, and in a material deterioration in liquidity.

STRUCTURAL CONSIDERATIONS

In accordance to Moody's Loss Given Default for Speculative-Grade
Companies (LGD) methodology, the senior secured notes (both fixed
rate and FRNs) are rated at B2, one notch above the CFR. This is
as a result of the first-lien senior secured notes' ranking
priority over the senior unsecured notes, which are rated Caa1,
one notch below the CFR, owing to their subordinated ranking --
both structurally and contractually via an intercreditor
agreement -- in the capital structure. The notching up of the
senior secured notes above the CFR is also possible owing to the
fairly modest amount of secured bank debt ranking ahead -- both
structurally and contractually -- chiefly represented by the
EUR100 million of super senior revolving credit facility due
2020, which Moody's assumes will never be fully drawn during its
duration.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Chemical Industry Rating Methodology published in December 2013.

Holdco 2 is the ultimate parent company of the CABB group, and
one of the top holding companies set up by Permira, the
international private equity fund, to complete the secondary
leveraged buy-out ('LBO') over CABB in June 2014 from
Bridgepoint, the former owner of the business.

CABB, based in Sulzbach am Taunus, is a leading European producer
of customized active ingredients, advanced intermediates and
diversified specialty chemicals with a strong focus on the
agrochemicals industry. The business operations are organized
into two business units, the Custom Manufacturing business unit
and the Acetyls business unit. In 2016 it reported sales of
EUR448 million.



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


AK BARS: Moody's Revises Outlook to Stable & Affirms B2 Rating
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on Commercial
Bank AK BARS PJSC's (AK BARS) long-term deposit and senior
unsecured debt ratings to stable from negative and affirmed the
following ratings: the long-term local and foreign-currency
deposit rating at B2, and foreign senior unsecured debt rating at
B2.The bank's Baseline Credit Assessment (BCA) and adjusted BCA
have been affirmed at caa1 and the Counterparty Risk Assessment
(CRA) at B2(cr)/NP(cr). Moody's incorporates a high likelihood of
support from the Republic of Tatarstan (Ba2, stable) and its
related companies to the bank's final deposit ratings, which
results in a two-notch uplift from the bank's BCA.

RATINGS RATIONALE

The change of the outlook to stable from negative reflects
decreased risky exposure with improved loan loss reserves
coverage, recovering net interest margin, as well as an
anticipated capital injection which will support bank's loss
absorption buffer.

AK BARS has been cleaning up its loan book, with a reported
decrease in problem loans (corporate individually impaired plus
other overdue more than 90 days) to 15.2% of gross loans at end-
2016 from 17.7% in 2015. This has been achieved thanks to problem
loan write-offs, as well as repayments of risky exposures to the
construction sector and financial services companies. Loans to
the construction sector in the amount of RUB25 billion were
repaid with the funds of the shareholders. Related-party exposure
net of reserves decreased to 61% of shareholders' capital as end-
2016 down from 144% in 2015. Loan loss reserves coverage of
problem loans improved to 67% in 2016 from 57% in 2015. An
additional 6.3% of gross loans (40% of PLs) were covered by
sureties from companies related to the Republic of Tatarstan.

AK BARS' net interest margin (NIM) based on market instruments
improved to 2.1% in 2016 from negative in mid-2015 amid a change
in the CBR's key rate. This underpinned the bank's recurring
earnings with net interest income and commissions covering the
bank's operating expenses in 2016 under IFRS. At the same time,
its total pre-provision income was largely supported by
securities trading gains and dividends income, resulting in 5.4%
of average assets, which was sufficient to absorb high credit
costs of 7% in 2016. The return on average assets adjusted for
one-off gain from assets contribution from the shareholders
amounted to 0.4% at end- 2016. Moody's expects the bank to be
marginally profitable in 2017, excluding any one-offs and
securities revaluation results.

By H1 2017, AK BARS expects to receive a RUB10 billion Tier 1
capital injection from companies related to the Republic of
Tatarstan, which will support its loss absorption cushion. The
bank's reported Basel III Tier 1 ratio amounted to 9.4% and total
capital adequacy ratio at 14.0% as of end-2016.

AK BARS experienced retail funds outflow at around 5% within the
first three months 2017 following failure of a number of
Tatarstan-based banks, including Tatfondbank. The situation is
relatively stable as of now and deposit outflow has stopped. The
available liquidity cushion (consisting of cash, interbank and
repoable securities) is kept at around RUB70 billion (25% of
customer deposits), capable to withstand potential liquidity
stress.

The bank's current BCA at caa1 reflects the remaining asset
quality risks and exposure to market risk, which constrain its
capital buffer. Bank's investments in equities amounted to 144%
of capital as of end-2016. Although equity portfolio mainly
consists of blue chips, its performance renders the bank's
profitability volatile and vulnerable to negative market
developments.

GOVERNMENT SUPPORT

Moody's incorporates a high likelihood of government support for
AK BARS from the Republic of Tatarstan and government-related
companies. This results in a two-notch uplift from the bank's BCA
of caa1. AK BARS Bank has an official status as the authorized
Bank of the Republic of Tatarstan, servicing budget flows, state
companies and budget recipients. The controlling stake of the
bank held by the Republic of Tatarstan and companies directly
owned by the government increased to the current 85.5% from
72.12% in 2015. It is the largest bank in Tatarstan with a market
share of around 40% in the region. Moody's support assumptions
are also based on the track record of provided financial support,
including provided and planned capital injections, disposal of
bad loans and non-core assets, existing government funding and
guarantees on problem loans.

WHAT COULD MOVE THE RATINGS UP/DOWN

Moody's would consider a ratings upgrade in case of further
improvement in the bank's standalone financial profile, including
better asset quality, a reduction in market risk exposure, a
sustainable trend of positive recurring profitability coupled
with the maintenance of good capitalization.

Moody's could downgrade the bank's ratings if there are signs of
a weakening of its standalone credit profile, including material
erosion of its capital buffer as a result of significant
impairments of its assets and/or significant trading losses.
Signs of weaker ties between the bank and the local government
would also be negative for the supported ratings.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS

Issuer: Commercial Bank AK BARS, PJSC

Affirmations:

-- LT Bank Deposits (Local & Foreign Currency), Affirmed B2,
    Outlook Changed To Stable From Negative

-- ST Bank Deposits (Local & Foreign Currency), Affirmed NP

-- Senior Unsecured Regular Bond/Debenture, Affirmed B2, Outlook
    Changed To Stable From Negative

-- Senior Unsecured MTN Program, Affirmed (P)B2

-- Adjusted Baseline Credit Assessment, Affirmed caa1

-- Baseline Credit Assessment, Affirmed caa1

-- LT Counterparty Risk Assessment, Affirmed B2(cr)

-- ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

-- Outlook, Changed To Stable From Negative



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


EXPOBANK AS: Moody's Withdraws B1 Long Term Deposit Ratings
-----------------------------------------------------------
Moody's Investors Service has withdrawn AS Expobank's long-term
and short-term local- and foreign-currency deposit ratings of B1
and Not Prime. Moody's has also withdrawn the baseline credit
assessment (BCA) of b1, the adjusted BCA of b1, and the long-term
and short-term counterparty risk assessments of Ba3(cr) and Not
Prime (cr). Before the withdrawal, the overall issuer outlook was
negative.

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



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


ODESA PORTSIDE: Bankruptcy Unacceptable, Pres. Poroshenko Says
--------------------------------------------------------------
Ukrainian News Agency reports that Ukrainian President Petro
Poroshenko said at a press conference it is unacceptable for the
Odesa portside plant (OPP), which is the largest producer of
ammonia and urea fertilizer in Ukraine, to go bankrupt.

Mr. Poroshenko added that he considered privatization as the only
way out for the plant, Ukrainian News Agency relates.

According to Ukrainian News Agency, Mr. Poroshenko expressed the
hope that the State Property Fund would select a new advisor on
privatization of the plant and that the government would have a
clear picture of the most appropriate pace and period of
privatization of the plant in the autumn.

The Odesa Regional Court of Appeals decided on May 10 to reject
the appeal that the State Property Fund and the Odesa Portside
Plant filed against the Yuzhenskyi municipal court's decision to
grant a petition by OstChem Holding Limited (part of Dmytro
Firtash's Group DF) to enforce the decision of the Arbitration
Institute of the Stockholm Chamber of Commerce (Sweden) that
ordered the Odesa Portside Plant to pay a debt of USD193.258
million for natural gas (under a contract dated January 2013) and
a penalty of USD57.977 million for late payment (USD251,235
million in total) to OstChem Holding Limited, Ukrainian News
Agency discloses.


PRIVATBANK: Poroshenko Vows to Bring Ex-Stockholders to Justice
---------------------------------------------------------------
Ukrainian News Agency reports that Ukrainian President Petro
Poroshenko said at a press-conference that former stockholders of
PrivatBank will be brought to justice if the bank was forced into
bankruptcy purposefully.

According to Ukrainian News Agency, Mr. Poroshenko promised there
must not be any compromise in this issue.

On December 21, 2016, PrivatBank controlled by businessmen Ihor
Kolomoiskyi and Hennadii Boholiubov, passed into state ownership,
Ukrainian News Agency recounts.

                        About PrivatBank

PrivatBank is the largest commercial bank in Ukraine, in terms of
the number of clients, assets value, loan portfolio and taxes
paid to the national budget.  PrivatBank has its headquarters in
Dnipropetrovsk, in central Ukraine.

                          *   *   *


As reported by the Troubled Company Reporter-Europe on April 28,
2017, S&P Global Ratings raised its long- and short-term
counterparty credit ratings on Ukrainian PrivatBank to 'CCC+/C'
from 'SD/SD'(selective default).  The outlook is stable.

The upgrade reflects S&P's understanding that PrivatBank has been
servicing its obligations in full and on time since late December
2016, when it was nationalized and the holders of its three loan
participation notes (LPNs) and related-party depositors were
bailed in.  S&P does not expect the bailed-in LPN holders and
depositors to file for PrivatBank's bankruptcy in Ukraine, given
that it has been nationalized. The issues PrivatBank defaulted on
were not rated by S&P Global Ratings.

S&P believes that PrivatBank's creditworthiness remains
vulnerable despite its nationalization, and that the bank depends
on favorable business, financial, and economic conditions to meet
its financial commitments.  However, S&P factors in its
projection that the bank is unlikely to default on its
obligations within the next 12 months.

The Troubled Company Reporter-Europe reported on April 12, 2017,
that Moody's Investors Service downgraded the long-term foreign-
currency senior unsecured debt rating of Privatbank to C from Ca.
The bank's baseline credit assessment ("BCA"), adjusted BCA, long
and short-term local and foreign currency deposit ratings, and
its long and short-term Counterparty Risk Assessments were
unaffected by rating action.

The downgrade of Privatbank ' senior unsecured debt rating to C
from Ca primarily reflects Moody's expectation that senior debt
holders will sustain material losses as a result of bail-in and
conversion into equity.

The C senior unsecured debt rating does not carry outlooks.
Moody's will then withdraw the C foreign currency senior
unsecured debt rating of Privatbank.



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


JOHNSTON PRESS: Scraps Plan to Offer Bigger Bonus to CEO
--------------------------------------------------------
Christopher Williams at The Telegraph reports that troubled
newspaper owner Johnston Press has caved in to shareholder anger
over plans to offer chief executive Ashley Highfield a bigger
bonus this year, all in cash.

The 250-year-old publisher, which is threatened with a financial
crunch as it attempts to restructure heavy debts, scrapped
planned increases to the maximum possible payouts to
Mr. Highfield and chief financial officer David King, The
Telegraph relates.

According to The Telegraph, Mr. Highfield's bonus will remain
capped at 120pc of his GBP430,000 salary under a new three-year
remuneration policy.  Johnston Press had planned to increase the
top payout to 180pc, or GBP774,000, The Telegraph states.
Mr. King's maximum bonus will stay at 100pc, compared with a
proposal of 165pc, The Telegraph notes.

The pair received no bonuses last year after Johnston Press
missed all its performance targets, The Telegraph recounts.

Johnston Press intended to pay any bonuses this year entirely in
cash, arguing that its depressed share price means shareholders
would be significantly diluted. The Telegraph discloses.  The
company's stock market valuation has collapsed to just GBP15
million on fears it will not be able to refinance its GBP220
million bond debt and tough trading for local newspapers, The
Telegraph relays.

The plan provoked protests from investors, however, after
Johnston Press's cash reserves were eroded from more than GBP40
million to just GBP16 million last year, The Telegraph notes.

Other than in unspecified "exceptional circumstances", it now
intends to pay a third of any bonuses awarded to senior
executives in shares, deferred for three years, The Telegraph
says.


NOMAD FOODS: Moody's Assigns B1 CFR, Outlook Stable
---------------------------------------------------
Moody's Investor Service has assigned a B1 corporate family
rating (CFR) and a B1-PD probability of default rating (PDR) to
Nomad Foods Limited (Nomad Foods), the listed entity of the Nomad
Foods Group and parent guarantor of the new restricted group.
Moody's has also assigned definitive B1 ratings to the new EUR400
million senior secured notes due 2024 issued by Nomad Foods
BondCo Plc, the new EUR80 million senior secured revolving credit
facility (RCF) due 2023 and EUR500 million senior secured term
loan due 2024 issued by Nomad Foods Europe MidCo Limited, and the
new USD610 million senior secured term loan due 2024 issued by
Nomad Foods Lux S.a.r.l. and Nomad Foods US LLC. The outlook on
all ratings is stable.

Concurrently, Moody's has withdrawn the B1 CFR and the B1-PD PDR
on Nomad Foods Europe Finco Limited to reflect the change in the
restricted group following completion of the refinancing. Moody's
has also withdrawn the B1 rating on the existing senior secured
credit facilities at Nomad Foods Europe MidCo Limited following
their repayment.

The action was prompted by the completion by Nomad Foods of the
refinancing of its existing senior secured credit facilities and
senior secured floating rate notes on May 3, 2017. The definitive
ratings are the same as the provisional (P)B1 ratings initially
assigned as the final capital structure is in line with Moody's
initial assessment, albeit the senior secured notes were reduced
by EUR100 million and the USD senior secured term loan was
increased by the same equivalent amount. However, this has no
impact on neither the total leverage nor the ranking of the
different debt instruments.

RATINGS RATIONALE

Moody's views the B1 CFR as weakly positioned due to the high
leverage but expects that the company will maintain credit
metrics commensurate with the current rating despite challenging
market conditions. In Moody's view, expected merger synergies
will partly help offsetting downward pressure on profitability
due to its exposure to the mature European frozen food market,
rising input costs, and fierce competition from other brands and
private labels.

The Moody's-adjusted leverage was 5.3x at year-end 2016. Moody's
views this level of leverage as high for the rating category and
anticipates an increase to around 5.5x in the next 12 to 18
months because of the aforementioned downward pressures on
profitability. That being said, the high leverage is partly
offset by the company's strong margins with EBIT margin of 14.2%
in 2016 as well as the good liquidity profile including a track
record of strong cash flow generation. However, free cash flow in
2017 will likely be lower than last year due to higher
restructuring costs related to the closure of the Bjuv factory
and the settlement of legacy tax issues.

The rating also incorporates the company's leading market
positions in its core categories, its portfolio of iconic brands
with strong recognition across European markets, and its good
level of geographic diversification across Europe.

STRUCTURAL CONSIDERATION

The new EUR400 million senior secured notes and the new EUR1,150
million equivalent senior secured credit facilities rank pari
passu between them and share the same guarantee and security
package. However, Moody's notes that, in contrast with the
previous structure, the new security package no longer include
pledges on certain tangible assets.

Applying Moody's Loss Given Default for Speculative-Grade
Companies methodology (assuming a standard 50% recovery rate),
all these instruments are rated at the same level as the CFR,
reflecting their pari passu ranking.

LIQUIDITY ANALYSIS

Moody's considers the company's liquidity position to be good,
underpinned by cash balances of EUR330 million at year-end 2016.
The company's EUR80 million revolving credit facility (RCF) is
expected to remain undrawn, and there is no debt amortization
prior to 2023. Moody's also assumes that the company will
maintain good headroom under its single financial maintenance
covenant only applicable to its new RCF and tested when drawn
above 40%.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that sales and
profitability will not materially deteriorate in the next 12 to
18 months. While Moody's understands that the company aims at
making further acquisitions in order to build a global consumer
food business, the stable outlook assumes that any debt-funded
acquisition activity will be small in nature and that there will
be no shareholder-friendly action such as dividend payments or
share buy-backs.

WHAT COULD CHANGE THE RATING UP/DOWN

Although unlikely in the near term, upward ratings pressure could
materialise if the Moody's-adjusted gross debt/EBITDA ratio falls
to 4.5x on a sustained basis, and if the company maintains a
Moody's adjusted EBIT margin in the mid-teens and a solid
liquidity profile.

Conversely, the ratings could be lowered if earnings materially
deteriorate, resulting in the Moody's-adjusted gross debt/EBITDA
ratio remaining sustainably well above 5.5x, or if the Moody's-
adjusted EBIT margin falls toward the low teens and/or liquidity
concerns emerge. Moody's could also considers downgrading the
ratings in event of any material debt funded acquisitions or
change in financial policy.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Packaged Goods published in January 2017.

Based in the UK, Nomad Foods is a leading branded frozen foods
producer, supplying much of Western Europe's retail market. It
generated revenues of EUR1.9 billion in 2016.


TATA STEEL: Settles Dispute Over Pensions at UK Business
--------------------------------------------------------
Simon Mundy at The Financial Times reports that Tata Steel has
agreed a settlement in its long-running standoff over pensions at
its UK business, in which, it will hand over GBP550 million and a
33% stake in the subsidiary to the pension scheme.

The scheme's funding deficit has been an increasingly severe
problem in recent years for the Indian group, which bought Corus
-- which included the erstwhile British Steel -- for GBP6.2
billion in 2007, the FT says.  According to the FT, the company
on May 16 said the provision for the deal, which still needs
approval from the UK pensions regulator, pushed Tata Steel to a
net loss of INR12 billion (US$190 million) for the first three
months of 2017.

Tata Steel is the UK's biggest steel company.


* UK Prime RMBS 90+ Day Delinquencies Stable in 3 Mos. Ended Feb.
-----------------------------------------------------------------
The performance of the UK prime residential mortgage-backed
securities (RMBS) market remained stable in the three-month
period ended February 2017, according to the latest indices
published by Moody's Investors Service.

From November 2016 to February 2017, the 90+ day delinquencies
increased slightly to 0.78% from 0.76%. Outstanding repossessions
remained at 0.02%. Over the same period, cumulative losses
remained at 0.07%. Moody's annualised total redemption rate
recorded 17.58% in February 2017, lower than the 12-month average
of 18.87%.

Moody's outlook for the collateral performance of UK prime RMBS
transactions in 2017 is stable. Moody's expects that the overall
collateral quality for new UK RMBS will remain stable given the
favourable economic conditions, such as positive GDP growth, low
interest rates, and low unemployment levels. In the UK, Moody's
forecast real GDP growth of 2.0% and 1.0% for 2016 and 2017,
respectively.

As of February 2017, Moody's rated 69 UK prime RMBS transactions
with an outstanding pool balance of GBP96.10 billion.


                            *********

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

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

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


                            *********


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

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

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

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Joseph Cardillo at
856-381-8268.


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