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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, November 29, 2017, Vol. 18, No. 237


                            Headlines


B U L G A R I A

CORPORATE COMMERCIAL: Two Banks Submit Offers for Victoria Unit


C Z E C H   R E P U B L I C

AVAST SOFTWARE: S&P Affirms 'BB-' Issue Rating on Secured Debt


F R A N C E

FCT SAPPHIREONE 2017-1: Fitch Rates Class F Notes 'BB+(EXP)'


G E O R G I A

GEORGIAN RAILWAY: Fitch Affirms B+ LongTerm IDRs, Outlook Stable


G E R M A N Y

NIDDA BONDCO: S&P Assigns Preliminary 'B+' CCR, Outlook Stable
SCHLECKER: Founder Receives Two-Year Suspended Prison Term
SENVION SA: Moody's Revises Outlook to Neg. & Affirms B1 CFR


I R E L A N D

G HOTEL: 330 Workers Likely to Keep Jobs Under Rescue Plan


K A Z A K H S T A N

AMANAT JSC: Fitch Affirms 'B' IFS Rating, Outlook Stable


N E T H E R L A N D S

PANTHER CDO IV: S&P Raises Class D Debt Rating to B(sf)


P O L A N D

CHORZOW CITY: Fitch Affirms BB+ IDR & Alters Outlook to Positive


R U S S I A

KRASNOYARSK KRAI: S&P Raises ICR to BB on Lower Debt Burden
SVIAZ-BANK: S&P Affirms 'BB-/B' Counterparty Credit Ratings


S P A I N

CATALONIA: S&P Keeps 'B+/B' ICRs on Continued Political Conflict
VALENCIA: S&P Affirms 'BB/B' Issuer Credit Ratings


S W I T Z E R L A N D

EUROCHEM GROUP: S&P Affirms 'BB-' CCR, Outlook Stable


U N I T E D   K I N G D O M

DECO 11-UK: Fitch Lowers Rating on Class A2 Notes to 'Csf'
MONARCH AIRLINES: IAG Acquires Valuable Slots at Gatwick Airport
OLD MUTUAL: Fitch Affirms 'BB' Subordinated Debt Rating
PALMER & HARVEY: On Brink of Administration, 4,000 Jobs at Risk


                            *********



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


CORPORATE COMMERCIAL: Two Banks Submit Offers for Victoria Unit
---------------------------------------------------------------
Ivaylo Mihaylov at SeeNews reports that Sofia-based banks
Bulgarian American Credit Bank (BACB) and Investbank have
submitted binding offers for the purchase of Bulgaria's Victoria
Bank, according to bankrupt parent Corporate Commercial Bank
(Corpbank) on its website.

A statement published on Corpbank's website reads that the two
banks have submitted offers to acquire 100% of Victoria Bank,
SeeNews notes.

In September, Victoria Bank said that BACB, Investbank and Vabo
Internal submitted non-binding offers within the deadline, SeeNews
recounts.

Victoria Bank said in September the candidates, whose offers are
admitted to the next stage of the sale, will be provided with an
opportunity to conduct due diligence of the bank, SeeNews relates.

Victoria Bank recorded a net loss of BGN5.6 million (US$3.4
million/EUR2.9 million) in 2016, compared to a loss of BGN9.3
million a year earlier, SeeNews discloses.  Its total assets stood
at BGN128.5 million at end-2016, SeeNews states.

                  About Corporate Commercial

Corporate Commercial Bank AD is the fourth largest bank in
Bulgaria in terms of assets, third in terms of net profit, and
first in terms of deposit growth.

Bulgaria's central bank placed Corpbank under its administration
and suspended shareholders' rights in June 2014 after a run
drained the bank of cash to meet client demands.



===========================
C Z E C H   R E P U B L I C
===========================


AVAST SOFTWARE: S&P Affirms 'BB-' Issue Rating on Secured Debt
--------------------------------------------------------------
S&P Global Ratings assigned a recovery rating of '3' to the $1.8
billion senior secured term loan B (split into a $1,230 million
tranche and a EUR508 million tranche) and $85 million senior
secured revolving credit facility (RCF) issued by Avast Software
B.V. S&P said, "The rating reflects our expectation of meaningful
(50%-70%; rounded estimate: 60%) recovery. We also affirmed our
'BB-' issue ratings on the secured debt."

S&P said, "These rating actions follow the roll-out of recovery
ratings to the Czech Republic, which was assigned a Group B
Jurisdiction Ranking. We view the Czech Republic as Avast's main
insolvency jurisdiction as this is where the group is
headquartered and where most of its staff, including senior
management, are based."

The recovery rating is supported by a limited amount of prior-
ranking liabilities, but constrained by the amount of senior
secured debt and the asset-light nature of the business. The loans
are primarily secured by share pledges and first-ranking pledges
over substantially all assets.

The senior secured facility agreement includes a guarantor
coverage test of 80% of the restricted group's EBITDA. The RCF is
subject to a springing leverage covenant of 6.50x, which only
kicks in if the RCF is drawn at $25 million or more. There is
capacity in the documentation for dividend payments, as evidenced
by the $265 million dividend payment made in October 2017, which
was funded by cash on balance sheet.

S&P said, "Our hypothetical default scenario assumes a rise in
competition or reputational damage after a serious attack on
users' devices, as well as adverse pricing pressures.

"We value Avast as a going concern given its leadership in the
freemium endpoint security market, revenue growth opportunities
from the potential conversion of free to premium users, and
adequate geographic diversification."

SIMULATED DEFAULT ASSUMPTIONS

-- Year of default: 2021
-- Jurisdiction: Czech Republic (Group B)

SIMPLIFIED WATERFALL

-- Emergence EBITDA: $176.1 million--maintenance capital
    expenditure assumed at 1% of revenues; cyclicality adjustment
    of 5% (standard for the sector); operational adjustment of
    -10% (reflecting relatively short-term subscription contracts
    and low customer switching costs)
-- Distressed EBITDA multiple: 6.0x
-- Gross enterprise value at default: about $1,056 million
-- Administrative costs: 5%
-- Net value available to creditors: about $1,004 million
-- Senior secured debt claims: about $1,614 million [1]
-- Recovery range: 50%-70% (rounded estimate: 60%) [2]
-- Recovery rating: 3

[1] All debt amounts include six months' prepetition interest. RCF
    assumed 85% drawn on the path to default.
[2] Rounded down to the nearest 5%.



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


FCT SAPPHIREONE 2017-1: Fitch Rates Class F Notes 'BB+(EXP)'
------------------------------------------------------------
Fitch Ratings has assigned FCT SapphireOne Auto 2017-1's notes the
following expected ratings:

Class A notes: 'AAA(EXP)sf'; Outlook Stable
Class B notes: 'AA(EXP)sf'; Outlook Stable
Class C notes: 'A(EXP)sf'; Outlook Stable
Class D notes: 'BBB(EXP)sf'; Outlook Stable
Class E notes: 'BB+(EXP)sf'; Outlook Stable
Class F notes: not rated

FCT SapphireOne Auto 2017-1 is a static securitisation of auto
loan and lease receivables, including residual value receivables,
originated by two My Money Bank (MMB, formerly GE Money Bank)
subsidiaries in French overseas regions, granted to private and
commercial obligors.

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

KEY RATING DRIVERS

Concentration Risks

The receivables were originated in French overseas regions
(Guadeloupe, Martinique and French Guyana in the Caribbean, and
Reunion in the Indian Ocean). Those regions, "departement et
region d'outre mer" (DROM), have high unemployment (20% to 25%)
and a significant weight of the public sector. The portfolio is
also exposed to a concentrated pool of commercial obligors
(26.1%), with the five largest obligors representing 4.5% of the
commercial sub-portfolio.

The exposure to different regions offers geographic
diversification; however, the portfolio remains more concentrated
than typical rated pools (both geographically and by obligor).
This exposes the portfolio performance to greater volatility and
was taken into account by Fitch by setting medium/high default
multipliers (5.2x at AAAsf) despite a rather high default base
case (5.7%), resulting in high rating default rates (29.7% at
AAAsf).

Niche Market, Dominant Players
MMB subsidiaries have 50% share of the local auto financing
market, and extensive experience, being established more than 50
years ago. The total number of cars in the four French overseas
regions is fewer than one million, with limited transferability
due to export costs. Fitch took into account the risk of limited
liquidity compared with larger markets in stress scenarios in its
recovery haircut (64% at AAAsf) and car value depreciation
assumptions (70% at AAAsf).

Loans and Leases with Residual Value
Receivables consist of auto loans (63.6%) and leases with residual
value (36.4%). Fitch judges that only some lease contracts (13.4%)
are exposed to residual value (RV) risks, as for the other lease
contracts (23%), MMB's RV-setting policy increases the likelihood
of an exercise of the lessees' purchase option. This limits the
effective portfolio RV exposure to 5.8% before defaults and
prepayments.

Access to Car Sale Proceeds Challenging
The issuer's access to car sale proceeds relating to lease
contracts may be challenging as the notification of the assignment
of the receivables to unknown third-party purchasers is uncertain.
In addition, the issuer's access to car proceeds may depend on the
insolvency administrator's collaboration if the sellers become
insolvent.

Operational features to facilitate notification (list of dealers
and auctioneers available to the issuer) and incentives
(performance reserve) and deterrents (pledge of the cars) to
obtain an insolvency administrator's collaboration are some risk-
mitigating factors. However, Fitch factored those uncertainties by
setting high recovery haircuts for lease products (75% at AAAsf)
and car depreciation assumptions (70% at AAAsf). The 5.8% RV
exposure generates a 'AAAsf' RV loss of 1.9% in the most stressful
scenario.

Limited Servicing Replacement
The servicers, MMB's subsidiaries, are not rated by Fitch and
there will be no back-up servicer. The list of potential
replacement candidates is more limited than in other regions, with
only few but sufficient active operators. However, Fitch judges
that servicer replacement might take longer than in other
jurisdictions and was particularly attentive to the reserve fund
liquidity coverage in case of servicer disruption, which was found
to be sufficient.

VARIATIONS FROM CRITERIA

Due to the RV-setting policy of MMB for certain lease products
(those without a dealer buy-back obligation), lessees would have a
strong economic incentive in buying cars at the end of these
contracts, even after applying severe car depreciation
assumptions. Fitch therefore assumed a turn-in rate of 0% in all
rating scenarios, below the standard turn-in rate floors (from 30%
at Bsf to 100% at AAAsf).

RATING SENSITIVITIES

Expected impact on the note rating of increased defaults (class
A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB+sf'
Increase base case defaults by 10%: 'AA+sf'/'AA-sf'/'A-sf'/'BBB-
sf'/'BB+sf'
Increase base case defaults by 25%:
'AAsf'/'A+sf'/'BBB+sf'/'BB+sf'/'BBsf'
Increase base case defaults by 50%: 'AA-sf'/'A-sf'/'BBB-
sf'/'BBsf'/'B+sf'

Expected impact on the note rating of decreased recoveries (class
A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB+sf'
Reduce base case recovery by 10%: 'AA+sf'/'AA-sf'/'A-
sf'/'BBBsf'/'BB+sf'
Reduce base case recovery by 25%: 'AA+sf'/'AA-sf'/'A-sf'/'BBB-
sf'/'BBsf'
Reduce base case recovery by 50%:
'AA+sf'/'A+sf'/'BBB+sf'/'BB+sf'/'BB-sf'

Expected impact on the note rating of decreased recoveries and
increase of the RV market value decline (MVD) assumption (class
A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB+sf'
Reduce base case sale recovery and increase MVD by 10%:
'AA+sf'/'AAsf'/'A-sf'/'BBBsf'/'BB+sf'
Reduce base case sale recovery and increase MVD by 25%:
'AA+sf'/'AA-sf'/'A-sf'/'BBBsf'/'BB+sf'
Reduce base case sale recovery and increase MVD by 50%:
'AA+sf'/'AA-sf'/'A-sf'/'BBB-sf'/'BBsf'

Fitch views the recovery and MVD-related sensitivities above
provide an indication of rating changes upon a potential
deterioration of used car prices of vehicles equipped with diesel
engines. The total diesel share in the initial pool is 70%.
Assuming a decrease of 25% in diesel vehicles' recovery proceeds
and a 25% increase in MVD as sensitivity, while leaving
assumptions for non-diesel vehicles unchanged, the resulting
rating sensitivity lies within the 10% and 25% (that are applied
to the entire pool).

The expected impact on the note rating of increased defaults,
decreased recoveries and decreased net proceeds from the sale
after the return of the vehicle at maturity are (class A/B/C/D/E):
Current ratings: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB+sf'
Base case defaults increase by 10%, recovery rate and net sale
proceeds decrease by 10%: 'AA+sf'/'A+sf'/'BBB+sf'/'BBB-sf'/'BBsf'
Base case defaults increase by 25%, recovery rate and net sale
proceeds decrease by 25%: 'AA-sf'/'Asf'/'BBBsf'/'BBsf'/'B+sf'
Base case defaults increase by 50%, recovery rate and net sale
proceeds decrease by 50%: 'Asf'/'BBBsf'/'BBf'/'Bsf'/not rated



=============
G E O R G I A
=============


GEORGIAN RAILWAY: Fitch Affirms B+ LongTerm IDRs, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed JSC Georgian Railway's (GR) Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'
with Stable Outlook. GR's senior unsecured debt ratings have been
also affirmed at 'B+'.

Fitch classifies GR as a credit-linked entity to Georgia
(BB-/Stable), with company's ratings being a notch below the
sovereign ratings. This is supported by state ownership and
control via JSC Partnership Fund (BB-/Stable) and high strategic
importance of the company to the Georgian economy. Close ties with
the state are a key rating factor, which in Fitch's view imply a
high likelihood of support, if needed. One notch differential with
sovereign rating is applied due to company's midrange integration
with the budgetary system and legal status.

Fitch now rates the company using its Public Sector Entity
criteria in order to better reflect its policy role and links with
Georgia. Fitch had previously rated Georgian Railway using its
Corporate Parent and Subsidiary Linkage criteria.

KEY RATING DRIVERS

Legal Status Assessed as Mid-Range: GR is a national integrated
railway transportation monopoly, which is indirectly 100%-owned by
Georgia via JSC Partnership Fund (PF). However, GR's monopoly
position doesn't entail usual in such situation state regulation
and monitoring. The company is rare combination of monopoly and
deregulated tariffs setting.

Fitch doesn't anticipate change in the GR's legal status in the
medium term. There is a plan for company's 25% privatisation,
which is unlikely until 2020 and should be neutral for GR's link
with the state. GR is also obliged under the EU-Georgia
Association Agreement to implement EU directives on railway
transport, which require infrastructure segment to be segregated
by 2022. Fitch expect that by the deadline GR will have separate
entities for different business segments under single holding
structure with immaterial effect to its monopolistic position.

Strategic Importance Assessed as Stronger: GR plays a critical
role in enabling Georgia's transit potential, future development
and maintaining economic relations with neighbouring countries.
The company holds around 30% share of total freight transportation
in the country and a dominant position in transit trade flows.

GR's rail network, in association with Azerbaijan Railway, forms a
key segment of the Transport Corridor Europe Caucasus Asia. Thus,
GR is a key tool in Georgia's plan to capitalise on China's New
Silk Road project and EU-China trade flows (EUR514 billion in
2016). GR's revenues constituted 1.3% of Georgia's GDP in 2016,
and the company accounted for around 5% of the country's services
export in 2015 (latest available data). The company is among
largest taxpayers and employers in Georgia.

In Fitch's view, GR acts as a government proxy for foreign
investors. As of November 2017, Georgian entities had USD1.7
billion in outstanding Eurobonds, of which government-related
entities accounted for USD1.3 billion (GR - USD0.5 billion,
Government of Georgia - USD0.5 billion, Georgian Oil and
Corporation - USD0.3 billion). GR's default could significantly
impair borrowing capacity of the government, which drives up
propensity of state support for the company, in case of need.

Control Assessed as Stronger: The state exercises indirect control
and oversight over GR's activities via PF, including approval of
its budgets and investments. PF acts as an arm of the state, by
approving GR's major transactions (procurement, borrowings,
significant non-financial obligations, etc.). GR's nine-member
supervisory board is nominated and controlled by the government,
while goods and services are tendered in accordance with the law
on public procurement.

Integration Assessed as Mid-Range: Fitch considers the entity's
integration into the general government sector as moderate. The
company's accounts are not consolidated in the central
government's budget and its debt is not consolidated with state
debt. GR doesn't receive any on-going subsidies for the loss-
making passenger business unlike most regional peers. This segment
comprises only 4% of total revenue and continues to be cross-
subsidised by freight transportation segment. However, there is a
track record of non-cash and indirect state support of the
company.

The government provided GR with exceptional pricing power compared
to peer monopolies (Russian Railways, Kazakhstan Temir Zholy).
Tariffs in freight and passenger segments are fully deregulated,
i.e. GR sets tariffs depending on market situation. Freight
transportation tariffs are set in US dollars, which enables
"natural" hedge for the company. This is an exemption from the
national pricing regime, which requires pricing of goods and
services to be set in Georgian lari (GEL).

Georgia also supported GR's fund raising via Eurobonds by
introducing tax relief for non-resident bondholders, who became
exempt from withholding tax on interest payments. This term was
introduced in 2010 just before the company's first Eurobond issue
and limited only to listed public securities on internationally
recognised exchanges.

Currently Georgia supports GR's long-term development via policy
incentives and assets allocation. In 2012-2016 share capital
contributions totalled GEL53 million, mostly comprised of
infrastructural assets, such as land plots, transmission lines and
substations. Additionally, infrastructure, such as railroads and
transmission lines, is free of property tax in Georgia. The total
effect from this relief was around GEL5 million in 2016, which
will increase due to growth of PPE after the active phase of GR's
capex programme finishes in 2019. Fitch expects Georgia could
provide additional support in the form of earmarked capital
injections in 2018-2019.

Operations Downsized, Performance Deteriorated: GR's business
profile continues to benefit from the company's monopoly position
and transit freight flows. However, the company's growth is
limited by high sensitivity to regional economic fluctuations and
by its exposure to liquid products (oil and oil products)
transportation, increasing competition with pipelines and event
risks.

GR's operational performance continued to deteriorate in 1H17.
Freight transportation volumes fell 7.6% yoy, while revenue
decreased 10.2% yoy. This was mainly driven by the decrease of
crude oil, ferrous metals and sugar transportation by 66%, 36% and
16%, respectively. Oil transportation fell amid Turkmenistan's oil
switching to Baku-Tbilisi-Ceyhan pipeline. The fall in ferrous
metals transportation was due to the end of pipe shipments to
Azerbaijan. Sugar transportation fell due to the relatively high
base in 2016. These declines were partially compensated by the
compulsory fee of USD10 million under a take-or-pay contract for
Turkmenistan's oil transportation and GEL 8% yoy depreciation in
1H17.

The management expects gradual restoration of volumes over the
medium term underpinned by projected growth of the neighboring
economies and a rebound in oil prices. Fitch forecasts Georgia's
GDP growth will accelerate to 4.5% in 2017 (2016: 2.7%), while the
Russian economy is projected to grow by 2% (2016: negative 0.2%),
Kazakhstan to grow by 3.4% (2016: 1%) and Azerbaijan to fall 0.6%
(2016: negative 3.1%). Additional freight traffic could originate
following the launch of a new Baku-Tbilisi-Kars rail link at end-
2017.

Debt Linked to Capex: The company's debt is linked to capex. The
bulk of its debt is a USD0.5 billion Eurobond due in 2022. The
company also has a USD44 million secured export credit facility
for the purchase of four passenger double-deck trains. The
company's FX exposure is partially mitigated as about 90% of its
revenue is in dollars, while most of expenditure is in lari.

GR's liquidity buffer as of November 2017 was sound, with cash and
cash equivalents of GEL221 million (about 66% held in dollars).
The company also has available committed credit lines of up to
GEL145 million, out of which GEL108 million were dollar-
denominated facilities (USD40 million). This fully offsets medium-
term refinancing and negative cash flow risks.

RATING SENSITIVITIES

GR's rating and outlook are likely to mirror changes to the
ratings of the sovereign, maintaining one notch differential.
Stronger links with the state will be ratings positive and may
result in narrowing of notch differential.

Any dilution of linkage with the sovereign through weakening of
strategic role or state control could result in the ratings being
further notched down from the sovereign. Absence of viable state
support amid worsening financial profile and liquidity may also
result in widening of notch differential.

FULL LIST OF RATING ACTIONS

JSC Georgian Railway

Long-Term Foreign Currency IDR affirmed at 'B+' Outlook Stable
Long-Term Local Currency IDR affirmed at 'B+', Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
Short-Term Local Currency IDR affirmed at 'B'
Local currency senior unsecured rating affirmed at 'B+'

KEY ASSUMPTIONS

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

- Domestic GDP growth of 4.5% in 2017 and 4.3% in 2018;
- Tariff growth of about 4% in liquid cargo business and flat in
   dry cargo business in 2018;
- Capital expenditure in line with management's expectations.



=============
G E R M A N Y
=============


NIDDA BONDCO: S&P Assigns Preliminary 'B+' CCR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings said that it had affirmed its preliminary 'B+'
long-term corporate credit rating on Nidda BondCo GmbH (Nidda),
the parent of the group's holding company, Nidda Healthcare
Holding AG (Nidda Healthcare). The outlook is stable.

S&P said, "At the same time, we affirmed the preliminary 'B+'
issue rating on the secured debt, including the EUR1.7 billion
term loan B, the EUR735 million senior secured notes, and the
EUR400 million revolving credit facility. The recovery rating on
these instruments is '4', reflecting our expectation of 45%
recovery in the event of a payment default.

"We also affirmed the preliminary 'B-' issue rating on the EUR340
million of senior unsecured debt. The recovery rating on this debt
is '6' and reflects our expectation of 0% recovery in the event of
a payment of default."

The final ratings will be subject to the successful closing of the
proposed transaction and will depend on our receipt and
satisfactory review of all final transaction documentation,
including those giving sponsors full control of the company.
Accordingly, the preliminary ratings should not be construed as
evidence of the final ratings. S&P said, "If the terms of the
final documentation depart from the materials we have already
reviewed, or if we do not receive the final documentation, we
reserve the right to withdraw or revise our ratings."

In the latter part of September 2017, Nidda raised financing of
EUR2.8 billion of debt in the form of a EUR1.7 billion term loan
B, EUR735 million senior secured notes, and EUR340 million senior
unsecured notes.

The regulatory approval to give the full control to financial
sponsors is still pending and should occur at the extraordinary
general meeting, expected to take place in mid-February 2018.

S&P said, "The ratings on Nidda continue to reflect our view that
the company's business risk profile is supported by its position
as the fourth-largest generic company in Europe after Teva,
Sandoz, and Mylan. We view scale as an important factor in the
mainstream generic business, as it enables the company to offer an
extensive product portfolio, increasing its ability to compete in
government tenders that are mainly price driven and to achieve
operating cost savings. Also, the growing over-the-counter segment
is a positive factor in our assessment, as it benefits from higher
margins and good revenue and cash flow predictability. We also
view positively the company's long track record in generating
volume growth and free cash flow."

However, Nidda is mainly present in Germany, the largest European
generic pharmaceuticals market, which continues to be highly price
and discount driven, although to a lesser extent than in the past.
S&P could also see some negative impacts from its exposure to
currency headwinds through its presence in Eastern Europe and
Russia.

S&P said, "We expect the EBITDA margin to improve over the coming
years, as management will focus on profitability rather than gross
revenues, and significant cost savings.

"For the nine months to Sept. 30, 2017, the company generated
EUR1.5 billion of sales and EUR289 million of EBITDA, which is
broadly in-line with our expectations of revenues of about EUR2.2
billion-EUR2.3 billion and EBITDA of about EUR420 million-EUR430
million for 2017, corresponding to a growth of about 4% and an
EBITDA margin around 20% in 2017.

"We still view the company's financial risk profile as highly
leveraged, given the private takeover by two financial sponsors
and our projections that S&P Global Ratings-adjusted debt to
EBITDA will remain between 6.5x and 7.2x over the next 12 to 24
months. We include in our debt calculation a EUR1.7 billion term
loan, EUR735 million senior secured notes, and EUR340 million
unsecured notes.

"The stable outlook reflects our expectations that Nidda will
continue to benefit from new product launches and the
internationalization of its branded products to generate solid
revenue growth over the next 12 months, and that it will gradually
improve its profitability, mainly thanks to the planned cost
savings. This should enable the company to gradually reduce
leverage close to 6.0x-6.5x over the next two years, supported by
positive free operating cash flow (FOCF) generation of at least
EUR100 million, assuming well-managed capex and working capital
spending.

"We could take a negative rating action if Nidda's EBITDA margin
declines below 20% as a result of price competition, any delays in
new product launches to support volume growth, or if there are
higher than expected one-time operational charges. We would also
lower the rating if FOCF is close to zero or negative as a result.
We would likely take a positive rating action if Nidda was able to
achieve adjusted debt to EBITDA below 5x on a sustainable basis,
depending on shareholders' commitment, supported by solid cash
flow generation. A positive rating action would be contingent on a
track record of accelerating profitable growth through a positive
mix in volume and price, combined with its cost-savings plan."


SCHLECKER: Founder Receives Two-Year Suspended Prison Term
----------------------------------------------------------
Alexander Huebner at Reuters reports that the founding family
behind German drugstore chain Schlecker, whose 2,800 stores closed
in 2012, were sentenced by a German court on Nov. 27 over the
company's collapse.

The founder, 73-year-old former billionaire Anton Schlecker,
received a suspended prison term of two years and a EUR54,000
(US$64,487) fine for intentional bankruptcy, a milder sentence
than the prosecution had demanded, Reuters discloses.

Prosecutors charged him with siphoning off millions of euros from
the company even as its financial situation worsened, and had
asked the regional court in Stuttgart for a three-year prison
term, Reuters relates.

According to Reuters, under German law, removing assets from a
company that faces imminent bankruptcy is illegal and can result
in a prison term of up to 10 years.

The court sentenced his 46-year-old son Lars and daughter Meike,
44, to prison terms of 33 and 32 months, respectively, for
delaying insolvency proceedings, embezzlement and being an
accessory to bankruptcy, Reuters relays.

Unlisted Schlecker filed for insolvency in January 2012, hit by
competition from rivals Rossmann and dm and after failing to
secure funding to upgrade its stores, Reuters recounts.  All 2,800
stores closed that year, leaving around 23,000 employees out of
work, Reuters notes.

The Schlecker drugstore chain was founded in 1975 by Anton
Schlecker in Ehingen in southern Germany.  Later, the company
expanded abroad.  In 2008, it had around 14,000 branches, 50,000
employees and annual sales of more than EUR7 billion, making it
the largest drugstore chain in Europe.


SENVION SA: Moody's Revises Outlook to Neg. & Affirms B1 CFR
------------------------------------------------------------
Moody's Investors Service changed the outlook on Senvion S.A.'s
ratings to negative from positive. Concurrently, Moody's affirmed
all ratings of Senvion.

RATINGS RATIONALE

"The rating action was driven by the material change of the
industrial environment for wind turbine manufacturers over the
last few months, as reflected by the 2017 revenue guidance, which
Senvion reduced in August by EUR150 million, and a series of
profit warnings by other players in the industry. The negative
outlook reflects Moody's expectation that against this backdrop
Senvion will be challenged to meet Moody's expectations set for
the B1 rating category. In Moody's base case scenario Moody's
expect that Senvion's credit metrics will stay weakly positioned
within the B1 category at least through the course of 2018 as
evidenced by EBITA margin as adjusted by Moody's well below 5% and
leverage above the threshold of 4.0x debt/EBITDA," says Oliver
Giani, lead analyst for Senvion.

European wind turbine manufacturers are currently facing
increasing competitive tensions as markets transition from
government support mechanisms to auction. In addition, the order
intake from the German market fell materially in 2017 year-to-date
as a result of the first auctions held which have been largely
awarded to community wind farms.

The transition towards market base mechanism is positive for the
wind industry in the mid-term as it will put pressure on the
different players to decrease the LCOE (levelized cost of
electricity) and therefore assists that wind-turbines reach grid
parity sooner than previously expected.

Senvion S.A.'s corporate family rating (CFR) of B1 mirrors (1) the
company's size and market leadership positions, ranking sixth
worldwide and typically second or third in its key markets, (2)
its historically stable and resilient profitability compared with
its WTG competitors, (3) a solid level of firm orders which
provides good revenue visibility in the short term. The rating is
constrained by (1) structurally low profitability, (2) limited
product and end-industry diversification, (3) geographical
concentration on three key markets (Germany, France and the UK)
representing almost 60% of the group's annual capacity
installation in 2016 and (4) a still very short track record of
conservative financial policies aimed at deleveraging.

LIQUIDITY

Moody's consider Senvion's liquidity to be adequate, benefiting
from roughly EUR190 million of cash as of the end of September and
an undrawn revolving facility of EUR125 million maturing in April
2022, which has two financial covenants enjoying adequate
headroom. While Moody's expect Senvion to be free cash flow
negative during 2017 and 2018 (in view of restructuring measures
and the cash flow impact of the offshore blade issue), Moody's
expect the company to return to generating positive free cash flow
thereafter. However, Moody's acknowledge the fact that there is an
element of unpredictability and volatility in cash flows,
considering the large size and long lead times of projects.
Senvion also has access to an EUR825 million letter of guarantee
facility, which should provide sufficient headroom for the
business needs (issued bonds have been oscillating around EUR400
million in the last couple of years).

RATIONALE FOR OUTLOOK

The negative outlook reflects the risk of a declining order book
and margin contraction. Moreover, margin reductions may weigh on
liquidity.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings on Senvion could be downgraded in case (1) Moody's
adjusted EBITA margin were to remain sustainably well below 5%,
indicating that the company is unable to withstand competitive
pressure in the market; (2) free cash flow stays negative for a
prolonged period; (3) of indications that Moody's adjusted
leverage will remain sustainably above 4.0x debt/EBITDA; or (4)
the company's liquidity profile deteriorated.

As indicated by the negative outlook, there is currently no upward
pressure on the ratings. The outlook could be changed to stable if
Senvion manages to build a profitable order book through 2018,
demonstrating its ability to adapt to the new market environment
and maintain a good liquidity position at any time.

List of affected ratings:

Affirmations:

Issuer: Senvion S.A.

-- Corporate Family Rating, Affirmed B1

-- Probability of Default Rating, Affirmed B1-PD

Issuer: Senvion Holding GmbH

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

Outlook Actions:

Issuer: Senvion S.A.

-- Outlook, Changed To Negative From Positive

Issuer: Senvion Holding GmbH

-- Outlook, Changed To Negative From Positive

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.



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


G HOTEL: 330 Workers Likely to Keep Jobs Under Rescue Plan
----------------------------------------------------------
Denise McNamara at Connacht Tribune reports that 330 workers in
companies controlled by Galway developer Gerry Barrett --
including the g Hotel, the Meyrick and the Eye Cinema -- have been
told they will keep their jobs under a rescue plan approved by the
High Court.

The Court of Appeal last month confirmed Neil Hughes of Hughes
Blake as examiner to seven companies set up by Mr. Barrett, which
owed EUR690 million to Deutsche Bank and faced the threat of
receivership, Connacht Tribune recounts.

Waltzfire, made up of property manager, Alanis Capital, hotelier
Choice Hospitality and Kensington Ventures, led by cinema operator
Lorcan Ward, have reportedly paid EUR89 million for the hotel and
property portfolio, which includes the Wellpark Retail Park as
well as apartments, Connacht Tribune discloses.

Mr. Hughes wrote to their 330 staff last week promising they would
keep their jobs if the courts approved a rescue plan where
Waltzfire takes over the businesses, Connacht Tribune notes.

Under the scheme of arrangement, all the companies' suppliers, the
Revenue and local council rates will be paid in full, Connacht
Tribune states.

Creditors are due to meet this week to vote on whether to accept
the terms of the scheme, Connacht Tribune relays.  If they
approve, it is likely the plan will return to the High Court for
approval, Connacht Tribune says.

The companies sought the protection of the court after Deutsche
Bank appointed a receiver over the firms, which employ more than
330 full time and part time staff, Connacht Tribune discloses.

The bank, which is owed more than EUR690 million by the group
after acquiring its loans from NAMA in 2015, had opposed the
examinership on grounds including it was an attempt by the
companies to renege on a 2016 debt settlement agreement which
would have resulted in the sale of the group's assets to reduce
its debt to the bank, Connacht Tribune notes.

That was denied by the companies, who argued that Deutsche Bank
had breached the settlement agreement, Connacht Tribune states.



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


AMANAT JSC: Fitch Affirms 'B' IFS Rating, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Kazakhstan-based Joint Stock Company
Insurance Company AMANAT's (AMANAT) Insurer Financial Strength
(IFS) Rating at 'B' and National IFS Rating at 'BB+(kaz)' and
removed them from Rating Watch Negative (RWN). The Outlooks are
Stable.

KEY RATING DRIVERS

AMANAT's ratings were placed on RWN in July 2017 following the
decision of the National Bank of Kazakhstan (NBK) to suspend
AMANAT's license for compulsory lines of business for three months
effective July 5, 2017, due to a number of violations, including
failure to implement recovery measures and inaccuracies in
solvency margin calculations.

The resolution of the Rating Watch follows the recommencement in
October 2017 of AMANAT writing its compulsory business.

AMANAT's gross written premiums (GWP) fell 26% yoy in the three
months following the license suspension; however, on a net basis
the reduction was only 12% and Fitch does not believe that the
company's franchise has been significantly damaged by the
suspension. Its GWP in the first 10 months of 2017 grew 6% yoy,
due to aggressive growth in the compulsory motor third-party
liability (MTPL) segment in 1H17.

Fitch views prudent underwriting in the MTPL segment as crucial to
the company's future ability to the underwriting business.
Aggressive growth, accompanied by weak underwriting results, would
be credit-negative.

AMANAT's shareholder injected additional capital of KZT300 million
as required by NBK in October 2017. As a result, the regulatory
solvency margin stood above the minimum requirement of 100% at
end-October 2017. Fitch believes that AMANAT's risk-adjusted
capital position will strengthen in 2017 due to slightly decreased
net business volumes, though the company's Fitch-calculated Prism
Factor-Based Model (FBM) score is expected to remain within the
higher range of 'Somewhat Weak' category.

The rating actions also follow Fitch's review of AMANAT's
financial profile and preliminary financial metrics based on 10M17
statutory reporting. The ratings reflect AMANAT's weak capital
position and the weak credit quality of the company's investment
portfolio.

For the first 10 months of 2017, AMANAT reported net profit of
KZT366 million, down from KZT659 million a year ago, as stronger
investment returns offset a modest underwriting loss. Its return
on equity decreased to 10% from 20% during the same period.

AMANAT's combined ratio slightly worsened to 103% for the first 10
months of 2017 from 89% a year ago, but is still commensurate with
the rating level, as administrative expenses rose. The increase in
administrative expense ratio to 51% from 41% is due to lower net
business volumes. The loss ratio remained at 29%, in line with
levels for the first 10 months of 2016.

RATING SENSITIVITIES

An upgrade of the ratings is unlikely in the near term given
AMANAT's weak business profile, concentrated business mix and
fairly weak capital position.

The rating could be downgraded if AMANAT realises underwriting or
investment losses to the extent that capital is depleted without
financial support from the shareholder. Failure to meet regulatory
solvency margin requirements or further regulatory interventions
could also lead to a downgrade.



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


PANTHER CDO IV: S&P Raises Class D Debt Rating to B(sf)
-------------------------------------------------------
S&P Global Ratings raised its credit ratings on Panther CDO IV
B.V.'s class B, C, and D notes. At the same time, S&P has affirmed
its ratings on the class A2, E1, and E2 notes.

S&P said, "The rating actions follow our analysis of the
transaction's performance and the application of our relevant
criteria.

"We subjected the capital structure to our cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level. The BDRs represent our estimate of the
level of asset defaults that the notes can withstand and still
fully pay interest and principal to the noteholders.

"Since our previous review in October 2016, we have observed an
increase in available credit enhancement for the class A2 to D
notes due to further portfolio amortization (see "Various Rating
Actions Taken In Cash Flow CDO Transaction Panther CDO IV
Following Review," published on Oct. 10, 2016). The class E notes
continue to have no available credit enhancement. Since our
previous review, the weighted-average spread on the portfolio has
decreased to 1.33% from 1.83%, resulting in an increase in the
weighted-average cost of debt. Over the same period, the
transaction's exposure to structured finance assets (as a
proportion of the pool) has increased and as corporate assets
amortized. This resulted in an increase in the scenario default
rates (SDRs) at each rating level.

"We used the performing portfolio balance, the reported weighted-
average spread, and the weighted-average recovery rates in
accordance with our collateralized debt obligations (CDOs) of
pooled structured finance assets criteria and our corporate CDO
criteria. We incorporated various cash flow stress scenarios using
our shortened and additional default patterns and levels for each
rating category assumed for each class of notes, combined with
different interest stress scenarios as outlined in our CDOs of
pooled structured finance assets criteria and our corporate CDO
criteria. We have estimated future defaults in the portfolio in
each rating scenario by applying our corporate CDO criteria.

"For the portion of the assets not rated by S&P Global Ratings, we
apply our third-party mapping criteria to map notched ratings from
another ratings agency and to infer our rating input for the
purpose of inclusion in CDO Evaluator. In performing this mapping,
we generally apply a three-notch downward adjustment for
structured finance assets that are rated by one rating agency and
a two-notch downward adjustment if the asset is rated by two
rating agencies.

"Additionally, as part of our analysis and in accordance with our
criteria, we have applied our supplemental tests to address event
and model risk. In accordance with paragraph 21 of our corporate
CDO criteria, as the transaction employs excess spread, we have
applied the supplemental test by running our cash flows using the
forward interest rate curve, including the highest loss from the
largest obligor test net of their recoveries.

"Our analysis shows that the available credit enhancement for the
class B, C, and D notes is now commensurate with higher ratings
than those currently assigned. Therefore, we have raised our
ratings on the class B, C, and D notes.

"As part of our analysis of the class D notes, we took a forward-
looking view of the credit quality of the portfolio and considered
the performance of the transaction over the past year. The maximum
rating on class D notes could attain under our CDOs of pooled
structured finance assets criteria and our corporate CDO criteria
is at the 'B+' rating level. However, considering the further
deleveraging of assets increasing the concentration risk in the
portfolio, the reduced weighted-average spread resulting in an
increased cost of debt, and the increase in exposure to structured
finance assets resulting in higher SDRs, we have raised to 'B
(sf)' from 'CCC+ (sf)' our rating on the class D notes.

"Our analysis also indicates that the available credit enhancement
for the class A2, E1, and E2 notes is still commensurate with the
currently assigned ratings. Therefore, we have affirmed our
ratings on the class A2, E1, and E2 notes."

Panther CDO IV is a cash flow CDO transaction managed by M&G
Investments Management Ltd. A portfolio of property B-notes,
structured finance securities, leveraged loans, high-yield
securities, private placements, and other debt obligations backs
the transaction. Panther CDO IV closed in December 2006 and its
reinvestment period ended in March 2014.

RATINGS LIST

  Class       Rating          Rating
              To              From

  Panther CDO IV B.V.
  EUR410 Million Floating-Rate Notes

  Ratings Raised

  B           AA+ (sf)         A+ (sf)
  C           A- (sf)          BBB- (sf)
  D           B (sf)           CCC+ (sf)

  Ratings Affirmed

  A2          AAA (sf)
  E1          CCC- (sf)
  E2          CCC- (sf)



===========
P O L A N D
===========


CHORZOW CITY: Fitch Affirms BB+ IDR & Alters Outlook to Positive
----------------------------------------------------------------
Fitch Ratings has revised the Polish City of Chorzow's Outlook to
Positive from Stable while affirming the city's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'BB+' and
National Long-Term Rating at 'A-(pol)'.

The rating action reflects Fitch view that with the abortion of
the plan for ring road construction the Chorzow's debt
requirements will be much lower than expected. Consequently the
city's forecasted debt stock and debt payback ratio would no
longer be commensurate with the current ratings. If at the same
time the city's fiscal performance would stabilise it could lead
to a rating upgrade.

KEY RATING DRIVERS

The Outlook revision reflects the following rating drivers and
their relative weights:

HIGH

Fitch project the city's direct debt to grow to around PLN260
million by end-2020 from the PLN194 million expected at end-2017.
Total debt by end-2020 would be significantly below Fitch previous
projections of PLN440 million as the city will no longer need to
raise a large debt amount to finance the ring-road construction
(city's share in the investment cost: PLN570 million). The project
has been aborted as EU grants that were expected to cover at least
85% of the investment costs were not available.

The projected debt growth is to finance capital expenditure. About
70%-80% of capital expenditure will be financed from capital
revenue and from the current balance, with the remainder to be
funded by a loan from the European Investment Bank. Fitch expects
capital expenditure to total up to PLN340 million in 2018-2020, or
15%-17% of Chorzow's total expenditure.

Fitch expects debt should remain below 50% of current revenue by
end-2020 (2017: estimated 35%) in contrast to the 80% projected
previously and the payback ratio (debt-to-current balance) at
eight to nine years in 2020 (2017: estimated seven years),
compared with 16 years in Fitch previous projections. Thus debt
metrics will be more comparable to higher-rated local
governments'.

The city's cash balances are high for the current rating level as
they have been in excess of the annual debt service (principal and
interest) since 2014, which is a credit positive. Fitch expect
that the city will maintain sound cash balances over the medium
term. Cash and liquid deposits in Chorzow's accounts averaged
PLN13 million in January-September 2017. Combined with the
accumulated cash from previous years (end-2016: PLN19.4 million)
cash would exceed the annual debt service of about PLN14 million
in 2017. In addition, Chorzow is considering repaying early around
PLN10 million of its high interest-bearing debt this year, which
would worsen its debt service ratio to 77% of operating balance in
2017 (45% without), compared with 35.5% in 2016.

MEDIUM

Fitch expects the city will maintain its operating margin at
around 6% (2016: 5.5%) in the medium term. It translates into
average operating balances of PLN35 million annually (2016:
PLN29.4 million). In 2017, the operating balance may be lower due
to additional current spending for education as result of the
state reform. However, Fitch assume the balance may exceed the
PLN20 million expected by the city. Nevertheless the operating
balance should cover debt service by at least 1.4x during 2017-
2020, despite expected debt service growth to about PLN27 million
in 2020 (2016: PLN10.4 million).

The city's ratings also reflect the following key rating drivers:

Chorzow's approach to budgeting is cautious, given inflexible
current revenue and expenditure. The city has a low share of
income taxes in operating revenue (24% in 2016), which makes it
reliable on grants from the state budget (50%) that are mostly
deployed to financing defined tasks. In addition, the local
economy faces competition from the neighbouring City of Katowice
(A-/Stable), the capital of the Slaskie Region, for potential
investments.

Chorzow is a small Polish city with around 110.000 inhabitants.
Its unemployment rate at end-September 2017 was 6.3% (national:
6.8%) compared with 2.3% in Katowice. Data for gross regional
product for Chorzow is not available. Gross regional product per
capita in 2015 (latest available data) in the Katowicki sub-region
where Chorzow is located was 35% above the national average.
However, this ratio is fuelled mainly by Katowice and does not
fully reflect Chorzow's economy. The latter's small size makes
Chorzow's budget more vulnerable to negative economic shocks than
other Polish cities rated by Fitch.

RATING SENSITIVITIES

The ratings could be upgraded if the city demonstrates on a
sustained basis stable operating performance that covers annual
debt service and translates into a payback ratio of below 10
years.



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


KRASNOYARSK KRAI: S&P Raises ICR to BB on Lower Debt Burden
-----------------------------------------------------------
S&P Global Ratings, on Nov. 24, 2017, raised its foreign and local
currency long-term issuer credit ratings on Russia-based
Krasnoyarsk Krai to 'BB' from 'BB-'. The outlook is stable.

OUTLOOK

The stable outlook reflects S&P's view that, over the next 12
months, under the new regional governor, Krasnoyarsk Krai's
management will maintain its prudent approach to expenditures and
post a positive operating balance, while maintaining the debt
burden at below 60% of consolidated operating revenues through
year-end 2019.

Downside Scenario

S&P said, "We could take a negative rating action if, over the
next 12 months, changes in Krasnoyarsk Krai's approach to
expenditure management resulted in a materially higher deficit
after capital accounts and larger debt accumulation than we
currently expect. We could also consider a downgrade if the krai's
liquidity position deteriorated, with the debt-service coverage
ratio dropping to below 80%."

Upside Scenario

S&P could take a positive rating action on Krasnoyarsk Krai within
the next 12 months if management's prudent debt and liquidity
management resulted in liquidity coverage improving structurally
and sustainably to above 120%.

RATIONALE

S&P said, "Krasnoyarsk Krai has outperformed our previous base-
case assumptions, posting stronger financial results and
consequently preserving its liquidity position.

"The upgrade reflects our expectation that in the coming three
years the region will maintain its structurally stronger budgetary
performance and lower debt burden, thanks to sustained revenue
growth above the national rate and management's consistent
application of budget consolidation efforts."

Economic concentration and low budgetary flexibility in the
volatile and unbalanced institutional framework

Like other Russian regions, Krasnoyarsk Krai's financial position
depends highly on the federal government's decisions under
Russia's institutional setup, which remains unpredictable, with
frequent changes to tax mechanisms affecting regions. The recent
introduction of limits to the amount of losses from interregional
holdings that can be applied to the tax base will partly mitigate
the effect of a 1% decrease in the corporate profit tax
redistribution to local and regional government (LRGs) from the
federal level in 2017. Also, metals and mining companies in the
krai have recently started to pay mineral extraction taxes, based
on extraction volume rather than product value. This change,
initiated by the federal government, aims to reduce the region's
budget dependency on metal market prices fluctuations. S&P also
believes that the government's intention to extend the maturity of
outstanding budget loans may have a temporary positive impact on
the krai's liquidity, but will likely be neutral to its
creditworthiness in the medium term because it will have to shift
to market borrowings to finance deficits and refinance commercial
debt.

Decisions regarding regional revenues and expenditures are
centralized at the federal level, leaving little budgetary
flexibility to the krai's authorities.

More than 90% of tax revenues are controlled by federal
legislation, which makes it especially difficult for the region to
address potential revenue volatility. S&P said, "We forecast that
Krasnoyarsk Krai's modifiable revenues (mainly transport tax and
nontax revenues) will remain relatively low and account for less
than 10% of the region's operating revenues on average over the
next three years. However, we believe Krasnoyarsk Krai has wider
flexibility on the spending side than peers, due to its relatively
large self-financed capital program, which we think it could cut
by at least half if needed."

S&P said, "We estimate Krasnoyarsk Krai's gross regional product
per capita at about US$10,680. The region's economy benefits from
large reserves of metals -- including Russia's largest volumes of
nickel, cobalt, and copper, as well as 16% of its coal and 10% of
its gold. We think that Krasnoyarsk Krai has better long-term
growth prospects than peers, thanks to its abundant natural
resources and a number of large industrial projects executed in
the region that will likely positively impact the krai's economy
over the next few years. We think, however, that the economy will
remain highly concentrated on oil and metal extraction and
production with two companies, Norilsk Nickel group and Rosneft,
which both operate in cyclical industries accounting for over 20%
of the region's revenues.

"In our view, the krai lacks reliable long-term financial planning
and doesn't have sufficient mechanisms to counterbalance the
volatility that stems from the concentrated nature of its economy
and tax base in an international comparison. At the same time, we
note the improvement in expenditure management, with the
implementation of tighter control of spending growth."

Krasnoyarsk Krai will likely post stronger balances and reduce its
debt burden

S&P said, "In the coming three years, we think the krai will
achieve stronger balances than we previously forecast, owing to
sustained revenue growth above the national inflation rate, on the
one hand, and continuous application of budget consolidation
measures by the region's government, on the other. The revenue
growth will be supported by the positive impact on the financial
results of metals and mining companies, from a projected more
stable exchange rate, increased production at new facilities, as
well as higher prices for nickel, palladium, aluminum, and copper.
We now expect the region will structurally maintain a positive
operating balance and a deficit after capital expenditures not
exceeding 5% of operating revenues in the coming three years.

"We also think that the regional government's budgetary
consolidation efforts will likely allow the krai to maintain its
tax-supported debt below 60% of consolidated operating revenues
through 2019, with interest payments not exceeding 5% of operating
revenues. We include the small amount of guaranteed debt of
Krasnoyarsk Krai's government-related entities (GREs) in our
calculations of tax-supported debt.

"We view Krasnoyarsk Krai's contingent liabilities as very low. We
estimate the maximum loss under a stress scenario at less than 2%
of the krai's consolidated operating revenues. In our view, its
GREs and municipalities are unlikely to require significant
extraordinary financial support through year-end 2019.

"We expect that in the next 12 months the krai's liquidity sources
will continue to cover more than 80% of its annual debt service of
about Russian ruble (RUB) 27 billion. The total amount of
available credit facilities will likely average about RUB19
billion over the next year, while the average cash, including cash
of the krai's budgetary units, will likely be over RUB11 billion.
At the same time, we incorporate the krai's limited access to
external liquidity in our overall assessment. This is due to the
weaknesses of the domestic capital market, and applies to all
Russian LRGs. We also note that, in the near term, debt service
will likely remain at a high 14% of operating revenues on average,
due to sizable debt maturities. We acknowledge, however, the
currently improved domestic market conditions and more favorable
refinancing terms for Russian LRGs."


SVIAZ-BANK: S&P Affirms 'BB-/B' Counterparty Credit Ratings
-----------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'BB-/B' long- and
short-term counterparty credit ratings on Russia-based Sviaz-Bank.

S&P said, "We subsequently withdrew our ratings on Sviaz-Bank at
the bank's request. At the time of withdrawal the outlook was
negative.

"The affirmation reflects our view that Sviaz-Bank's
creditworthiness has started stabilizing in the past several
months following the deterioration we've observed since year-end
2015. The bank's ability to maintain its franchise and client
relationship helped to stop clients outflow and start generating
new business in the second half of 2017. The bank also managed to
reduce the level of nonperforming loans (NPLs) to about 11.5%
(from the year-end 2016 peak of almost 14%) and secure sufficient
NPL coverage by provisions. We observe efforts to improve Sviaz-
Bank's risk practices and underwriting procedures, but the results
can only be seen after newly generated loans start maturing. As a
result, we still consider the bank to have limited earnings
generation capacity, but expect its revenues to stabilize in the
next two years due to gradual asset quality improvements and new
business generation activities.

"The affirmation also reflects our view of Sviaz-Bank as a
strategically important subsidiary of its parent, Vnesheconombank
(foreign currency BB+/Positive/B). Our base-case assumption is
that the parent will be able and willing to provide support to
Sviaz-Bank in case of need and, therefore, we incorporate three
notches of support above Sviaz-Bank's 'b-' stand-alone credit
profile (SACP) into our rating.

"At the same time, we cannot exclude a potential sale of the
entity and a reduction in group support, which could potentially
also harm Sviaz-Bank's SACP. As a result, at the time of
withdrawal, the outlook was negative."



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


CATALONIA: S&P Keeps 'B+/B' ICRs on Continued Political Conflict
----------------------------------------------------------------
S&P Global Ratings, on Nov. 24, 2017, maintained its 'B+/B' long-
and short-term issuer credit ratings on Catalonia on CreditWatch
with negative implications, where they were originally placed on
Oct. 4, 2017.

CREDITWATCH

S&P said, "We aim to resolve our CreditWatch placement within the
next three months, although we could extend it if we considered it
necessary based on conditions in Catalonia.

"We could lower our ratings on Catalonia by one or more notches if
we observed a fresh escalation of political tensions between
Catalonia's government and Spain's central government following
the regional elections to be held in December. Increased tensions
between the two governments could call into question the full and
timely refinancing of Catalonia's short-term debt instruments or
undermine the effectiveness of the central government's financial
support to Catalonia.

"We could affirm the ratings if we saw clear evidence of an easing
of political tensions, or if we concluded thatthe post-election
political landscape would not increase risks to the coordination
between the two governments beyond what we currently expect."

RATIONALE

S&P said, "In our view, the Spanish government's calling of new
elections in Catalonia and its direct control of regional
departments reduce the immediate risks to Catalonia's payment of
scheduled debt service, after the increased political instability
we observed following Catalonia's Oct. 1, 2017, referendum on
independence. We think the expected broad participation of
political parties in the new regional elections opens the door to
a possible de-escalation of tensions. Still, political tensions
and uncertainty continue, and there is potential for renewed
confrontation after the new Catalan government is in place. The
uncertainty that continues to affect Catalan politics could hamper
the essential coordination between the two governments on which
Catalonia depends for making its scheduled debt service payments."

Regional elections do not yet provide clear visibility about a
sustainable de-escalation of political conflict

In its session on Oct. 27, 2017, the Catalan parliament approved
the region's declaration of independence. On the same day, Spain's
senate authorized the central government to apply article 155 of
the Spanish Constitution, enabling the central government to take
measures to address the situation in Catalonia.

The Spanish government then dismissed the Catalan government and
called for early regional elections to be held on Dec. 21, 2017.
The central government also took temporary direct control of the
Catalan government's administration, until a new regional
government is put in place after the elections. This supervision
includes full control of regional tax collection and payments.

S&P said, "The takeover of Catalonia's administrative units seems
relatively smooth so far. Given the degree of direct control that
the Spanish central government now exerts over the Catalan
administration, we see lower risk of a lack of coordination
between the two governments in the short run. The Spanish
government has continued to provide liquidity support to
Catalonia, without disruption when political tensions were high,
and we expect it will continue to do so.

"All major Catalan political parties, including all those
supporting independence, have indicated they will participate in
the upcoming election. In our view, this decision opens the door
to a possible de-escalation of political conflict, but does not
guarantee it. We have no visibility on the possible composition of
a new Catalan regional government after the election, or on its
policies and approach toward Spain's central government.

"We continue to see a risk that renewed escalation in political
tensions after the election may jeopardize the cooperation we
regard as necessary between Spain's central government and the
Catalan government for the latter to continue to make its
scheduled debt service payments.

"In our view, financial management is a key weakness in
Catalonia's credit profile, and constrains the ratings.

"In our ratings, we take into account Catalonia's relatively high
wealth levels in an international context. However, political
instability is taking a toll on the region's economy. A large
number of companies -- more than 2,500 at the time of writing,
including most large multinationals -- have moved their legal or
tax incorporation from Catalonia to other regions in Spain.
Tourism is suffering, and demand in the real estate sector appears
weaker. Still, Catalonia's economy, along with Spain's, had
significant growth momentum before the October developments. In
our view, the full extent of the economic impact on Catalonia will
depend in part on the duration of the tensions."

The institutional framework for Spanish normal status regions has
weaknesses, particularly regarding its ability to ensure an
adequate match between revenues and expenditures, as highlighted
during the economic crisis that started in 2008. S&P said,
"Moreover, we don't think equalization patterns are transparent or
adequately justified. However, we also take into account that the
central government has provided considerable financial support to
the regional tier, which has mitigated the consequences of their
budgetary imbalances."

Budgetary outcomes remain uncertain, but continued fiscal
consolidation and stabilization of debt are likely

S&P said, "We currently lack sufficient visibility about the
possible impact of the current political conditions in Catalonia
on the region's 2017 budgetary execution. Still, we think some
spending scheduled to take place in the fourth quarter,
particularly on the capital side, could be postponed.

"Similarly, there is no draft budget for 2018, although we
anticipate Catalonia's revenues may increase as a result of the
Spanish regional financing system. Moreover, we cannot predict the
new Catalan government's fiscal stance. In our base-case scenario,
we think Catalonia should continue its process of fiscal
consolidation. We estimate that revenue growth and a potential
decline in spending resulting from the political situation may
contribute to an improvement in 2017 budgetary results. In terms
of potential trends, we expect budgetary consolidation will
continue over our forecast scenario to year-end 2019. We expect
Catalonia should continue to post negative operating balances, but
could come close to balancing by year-end 2019, while deficits
after capital accounts gradually drift down to about 8% of total
revenues in 2017 and approximately 6% by 2019 from 9% of total
revenues in 2016. However, our forecasts are subject to
uncertainty at this stage, due to limited visibility on the
region's political, economic, and budgetary evolution of the
region in the coming months. We do not expect that Catalonia would
use its budgetary flexibility to improve its budgetary outcomes
versus our projections in our base case. Following years of cost
cutting, and in an environment of rising revenues, we think
further cost cuts are unlikely. At the same time, tax pressure in
Catalonia is already high compared with that in other Spanish
regions, limiting the potential to increase tax collection.

"Were our base case to be borne out, we expect Catalonia's debt
will gradually decrease in relative terms, due to narrowing
deficits and increasing revenues. We expect Catalonia's tax-
supported debt will reach about 284% of consolidated
operating revenues by year-end 2019, down from a 325% peak in
2015. This level of indebtedness remains very high in an
international context, and surpasses our highest debt benchmark.
We believe Catalonia has moderate contingent liabilities, arising
mostly from ongoing and potential litigation."

Timely central government transfers to cover debt service and
deficits, along with settlements from the regional financing
system, have helped Catalonia slightly improve its liquidity
position, with lower periods of payment to suppliers and higher
cash reserves. Nevertheless, Catalonia's debt service remains
high, and we therefore consider that it continues to rely heavily
on central government support to maintain its liquidity position.

The Spanish central government covers Catalonia's long-term debt
service through the Fondo de Liquidez Auton¢mico liquidity
facility. However, Catalonia has an independent need for market
funding for its short-term debt maturities, and requires central
government authorization to seek such funding.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

                                       Rating
                                To                 From
  Catalonia (Autonomous Community of)
   Issuer Credit Rating
  Foreign and Local Currency    B+/Watch Neg/B     B+/Watch Neg/B
  Senior Unsecured
  Foreign and Local Currency    B+/Watch Neg       B+/Watch Neg
  Foreign and Local Currency    B/Watch Neg        B/Watch Neg
  Commercial Paper
  Local Currency                B/Watch Neg        B/Watch Neg


VALENCIA: S&P Affirms 'BB/B' Issuer Credit Ratings
--------------------------------------------------
S&P Global Ratings affirmed its 'BB/B' long- and short-term issuer
credit ratings on the Spanish Autonomous Community of Valencia (AC
Valencia). The outlook is stable.

OUTLOOK

S&P said, "The stable outlook incorporates our expectation that AC
Valencia's budgetary and economic performance will be in line with
our base-case scenario over 2017-2019, in which we envisage
gradual budgetary consolidation. We also factor in our
anticipation that the region will continue receiving funds from
the central government's liquidity facilities in a timely manner,
in the absence of a structural reform to improve its budgetary
framework."

Downside Scenario

S&P said, "We could downgrade AC Valencia if we saw evidence of a
lack of commitment from the region's financial management to
budgetary consolidation, with higher deficits after capital
accounts than in our base case. This would likely lead us to lower
our assessment of the region's budgetary flexibility."

Upside Scenario

S&P said, "We could upgrade AC Valencia if we thought the region
was likely to benefit from a substantial and structural
improvement in its financing, while maintaining a firm grip on
expenditures despite revenue increases. This would involve, for
example, a structural improvement in the region's budgetary
metrics, resulting in a substantial reduction of tax-supported
debt to below 270% of consolidated operating revenues. We could
also upgrade AC Valencia if we expected it to benefit from debt
relief from the central government, such that its tax-supported
debt structurally fell below our highest debt benchmark of 270% of
consolidated operating revenues."

RATIONALE

S&P said, "We have updated our base-case for AC Valencia,
extending our forecast horizon to year-end 2019. We believe the
region will reduce its deficits over 2017-2019, based on the
currently supportive economic backdrop and its control of its
expenditures. At the same time, we assume the region will continue
benefiting from the central government's liquidity facilities to
cover its funding needs. In our view, AC Valencia's very high debt
-- although gradually diminishing -- constrains the rating."

Institutions and ongoing economic recovery are broadly supportive,
but socioeconomic indicators and financial management are
weaknesses

S&P said, "Our view of the institutional framework of Spain's
normal-status regions as evolving but balanced hinges on the
strong support that regions receive from the central government.
Since 2012, the central government has sponsored liquidity
facilities to help regions fund their financial needs and clear
their arrears, requiring them to adhere to financial and fiscal
conditions. AC Valencia has made use of these facilities from
their inception, taking advantage of their favorable terms. Since
2012 to end-October 2017, the region has received about EUR41.5
billion from the Fondo de Liquidez Auton¢mico and the fund to
clear arrears.

"Still, we think the regional financing system suffers from some
weaknesses. In our view, the main drawback is the difficulty in
matching revenues and expenditures, due to rigid expenses
alongside revenues that are sensitive to the economic cycle.
Reform of the regional financing system is overdue, in our
view. Although the central government, together with regions, has
initiated some technical steps to reform the system, we do not
have any visibility about the timing or scope of an eventual
reform, which we view as key to ensuring the long-term
sustainability of Spanish regional finances. We also consider
reform as particularly important for some regions that have
suffered from lower levels of funding, including AC Valencia. We
understand that the region receives financing per capita that is
about 10 percentage points below the national average. Revenues
from the financing system barely cover the minimum standards of
service for welfare services, which are determined by the central
government.

"We expect Spain's economy will continue expanding -- with nominal
GDP growth rates close to 4%, on average, over 2017-2019 -- and AC
Valencia will be no exception. Given the strong equalization
component, we take into consideration national GDP per capita
figures for our evaluation of the economy of normal-status
regions. We expect economic growth will translate into higher
revenues."

However, the region's socioeconomic profile is less favorable than
that of other Spanish regions. Its GDP per capita is 89% of the
Spanish average, based on data from the national statistics office
for 2016. Unemployment in the region is high, although
diminishing, at 17.5% of the active population as of Sept. 30,
2017, slightly higher than the 16.4% national average, and
particularly high in an international comparison. S&P estimates
that AC Valencia's relatively weak socioeconomic profile is not
adequately compensated by Spain's equalization system.

S&P said, "We view AC Valencia's financial management as weak.
Although we expect a slight improvement in the region's
performance over our forecast horizon through 2019, we note AC
Valencia's large deficits and very high debt burden. The region's
deficits may be attributed in part to below-average equalization
transfers between regions to AC Valencia under Spain's public
finance system, but also to large expenditures that the region did
not adjust swiftly enough when revenues fell sharply during
Spain's crisis that started in 2008. Our assessment of AC
Valencia's management also incorporates our opinion about the
region's unrealistic budgeting of revenues, and that the region's
period of payment to suppliers is the second highest among Spanish
regions as of July 31, 2017. We acknowledge the region's efforts
to restructure its public sector and assume part of its debt."

High deficits and a very high debt burden are long-term
constraints

S&P said, "We expect an annual increase in operating revenues of
about 5%, on average, over 2017-2019, compared with our
projections for Spain's nominal GDP growth of about 4%. We factor
in that AC Valencia's revenues from the regional financing system
have grown 10.9% in 2017 compared with the 2016 figure."

AC Valencia has included in its 2017 budget and in its 2018 draft
budget about EUR1.3 billion of additional transfers from the
central government as a way to request the reform of the regional
financing system and offset the region's structural underfunding.
However, the central government has yet to grant these amounts or
overhaul the system, and S&P therefore does not include them in
our assessments.

S&P said, "In our base case, we anticipate that AC Valencia's
operating expenditures will grow moderately by 2.7% over 2017-
2019, unless more expenditures from previous years are recognized
in 2017, which is difficult to predict. We expect AC Valencia will
reduce its operating deficit to below 5% of operating revenues by
2019 from 12.1% in 2016. At the same time, we expect the deficit
after capital accounts to decrease more moderately to 11.3% of
total revenues from 16.6% over the same period. We believe the
region's capital expenditures will average about EUR1 billion
annually over 2017-2019, after bottoming out at EUR660 million in
2016. We consider that AC Valencia's weak financial position stems
mainly from years of underfunding.

"In our view, AC Valencia's budgetary flexibility is weak, given
the region's limited ability to cut expenditures. The region's
operating expenditures per capita are already among the lowest in
Spain. This largely explains the obstacles the region faces in
reducing its deficits.

"We are projecting deficits through year-end 2019 for AC Valencia,
with continued debt accumulation. However, given the dynamic
revenue growth we anticipate, we expect the region's tax-supported
debt will decline to about 348% of consolidated operating revenues
by the end of 2019, compared with 364% at year-end 2016. In our
previous review, we expected tax-supported debt to stabilize at
364% of consolidated operating revenues.

"AC Valencia's debt level surpasses our highest debt benchmark--
270% of consolidated operating revenues. The central government
is, however, repaying the region's long-term debt. This mitigates
the risk arising from AC Valencia's large stock of debt, in our
opinion.

"We believe AC Valencia has low contingent liabilities. In our
opinion, the regional government's measures to streamline its
public sector and directly manage its debt limit the impact of the
region's public sector on its credit profile. We include all of
the debt of AC Valencia's satellite companies in our calculation
of tax-supported debt. Importantly, debt maturities of companies
under the European System of National and Regional Accounts (ESA)-
2010 scope are eligible for central government funding, which we
think limits the potential risk they may entail.

"In our view, AC Valencia has very low capacity to generate cash
internally because it still presents deficits after capital
accounts. We understand that the region has short-term facilities
for a nominal amount of about EUR1.9 billion. We estimate that the
average cash holdings and the unused portion of short-term
facilities cover less than 40% of AC Valencia's debt service for
the next 12 months, which we estimate at EUR4.9 billion. In our
view, this low debt service coverage ratio is mitigated by AC
Valencia's strong access to central government liquidity
mechanisms. Our expectation that central government liquidity
support will be sufficient and timely underpins our ratings on
Spanish normal-status regions, including AC Valencia."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable (see 'Related Criteria And Research'). At
the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

                                  Rating           Rating
                                  To               From
  Valencia (Autonomous Community of)
   Issuer Credit Rating
  Foreign and Local Currency      BB/Stable/B      BB/Stable/B
  Senior Unsecured
  Local Currency                  BB               BB
  Short-Term Debt
  Local Currency                  B                B
  Commercial Paper
  Foreign and Local Currency      B                B



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


EUROCHEM GROUP: S&P Affirms 'BB-' CCR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings said that it has affirmed its 'BB-' long-term
corporate credit rating on Russian, Switzerland-headquartered
agrochemicals producer EuroChem Group AG. The outlook is stable.

S&P said, "We have also affirmed our 'BB-' long-term corporate
credit rating on EuroChem's core Russia-based subsidiary, Mineral
and Chemical Co. EuroChem JSC. The outlook is stable.

"At the same time, we have affirmed our 'BB-' issue ratings on
EuroChem's existing senior unsecured debt, namely: Russian ruble
(RUB) 5 billion (about $85 million) and RUB5 billion local bonds
due in July and November 2018, respectively, issued by Mineral and
Chemical Co. EuroChem JSC; $750 million of loan participation
notes due in 2017, issued by EuroChem Global Investments DAC, with
Mineral and Chemical Co. EuroChem JSC acting as a borrower and
EuroChem Group AG the guarantor; $500 million senior unsecured
notes due in 2020, issued by EuroChem Global Investments DAC and
guaranteed by EuroChem Group AG; and $500 million senior unsecured
notes due in 2021, issued by EuroChem Finance DAC and guaranteed
by Mineral and Chemical Co. EuroChem JSC and EuroChem Group AG.

"The affirmation reflects our expectation that EuroChem will
sustain its adjusted FFO to debt at 17%-19% in 2017-2018, with the
ratio improving to around 20% in 2019. This is despite the
company's ongoing investment in two greenfield potash projects,
Usolskiy and VolgaKaliy, and a new ammonia production facility in
Kingisepp. We forecast that EuroChem will have generated adjusted
EBITDA of around $1.1 billion in 2017, slightly higher than in
2016. The company's EBITDA remains under pressure from the
prolonged low-cycle industry conditions, exacerbated by a
stronger-than-expected ruble; the exchange rate is less than RUB60
per $1 compared with our previous expectation of RUB64-RUB65. We
forecast EuroChem's EBITDA will improve to around $1.2 billion in
2018 and to $1.3 billion-$1.4 billion in 2019, largely thanks to
higher production volumes and a gradual shift of the product
portfolio in favor of more complex fertilizers following the ramp-
up of expansionary projects starting from 2018.

"We expect that EuroChem's free operating cash flow (FOCF) will
remain negative in 2017-2018 as a result of its high investment in
capacity expansion of $1.3 billion and $1.1 billion, respectively,
but we expect capital expenditure (capex) will decrease to $700
million-$800 million in 2019, once the key investment phase has
ended. This should allow EuroChem to gradually decrease debt to
around $4.5 billion in 2019 from our adjusted $4.8 billion figure
as of Sept. 30, 2017 (we add to debt $250 million in drawings from
the $1.5 billion committed perpetual facility). We forecast that
the adjusted debt-to-EBITDA ratio will decline to 3.0x-3.5x in
2019 from around 4.0x in 2017-2018. In addition, we expect that
EuroChem will continue its prudent financial policy, implying no
dividends during the period of high capex.

"In our opinion, EuroChem is proactively managing its refinancing
risks, having put in place a $750 million unsecured club loan in
October 2017. We also factor in that expansionary capex related to
the ammonia project in Kingisepp remains prefunded via a project
finance facility.

"The stable outlook reflects our expectation that EuroChem will
maintain a ratio of adjusted FFO to debt of at least 12% in 2017,
which will improve to around 20% in 2018-2019 as production at the
greenfield potash projects and the new ammonia project increases,
in line with the company's current plan. We also expect management
will continue its proactive refinancing strategy, which will help
sustain a solid liquidity position."

Rating pressure could build if fertilizer prices declined
materially during the group's investment phase, which would lead
to FFO to debt falling below 12%. S&P could also take a negative
rating action if the group sought a sizable debt-financed
acquisition, although it sees this as less likely than in the past
because of the group's focus on developing its two major potash
greenfield projects and new ammonia project.

S&P said, "We could raise the rating if we were confident that the
company could sustain an adjusted ratio of FFO to debt above 20%
in low-cycle industry conditions and generate sustainable and
positive FOCF. We believe that, at this stage, rating upside is
remote due to Eurochem's ongoing expansionary phase, but could
develop in the future."



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


DECO 11-UK: Fitch Lowers Rating on Class A2 Notes to 'Csf'
----------------------------------------------------------
Fitch Ratings has downgraded DECO 11 - UK Conduit 3 plc's class A1
and A2 floating rate notes due 2020 and affirmed the others:

GBP54.6 million class A1-A (XS0279810468) downgraded to 'CCCsf'
from 'Bsf'; Recovery Estimate (RE) 100%

GBP70.7 million class A1-B (XS0279812597) downgraded to 'CCsf'
from 'CCCsf'; RE70%

GBP43.2 million class A2 (XS0279814452) downgraded to 'Csf' from
'CCsf''; RE0%

GBP26.2 million class B (XS0279815426) affirmed at 'Csf'; RE0%

GBP36.1 million class C (XS0279816580) affirmed at 'Csf'; RE0%

GBP28.2 million class D (XS0279817398) affirmed at 'Csf'; RE0%

The transaction was originally the securitisation of 17 commercial
mortgages originated by Deutsche Bank AG (BBB+/Stable). The loans
were secured on 56 properties located across the UK. As of October
2017, three loans remained, all in special servicing with Solutus
Advisors (SA) and all of which Fitch expects to suffer losses. The
GBP1.4 million Investco Estates Limited loan repaid in July.

The largest loan, the GBP216.4 million Mapeley III loan, was
restructured when SA was appointed special servicer in June 2016.
While the special servicer retains the right to terminate the
standstill, the restructuring preserves a degree of control in the
hands of the subordinated lender (GBP10 million) and borrower over
the underlying portfolio of 24 aged secondary and tertiary offices
until no sooner than four months prior to legal final maturity
(LFM, January 2020). The senior notes cannot be repaid in full
without significant principal from this loan.

The Mapeley sponsor is using the standstill it was granted to
engage in one redevelopment project (Leon House), an office-to-
residential conversion under the "permitted redevelopment right"
framework, largely financed with third party debt ranking senior
to the issuer. There is less visibility over the outcome of an
investment on such a scale, in terms of timing, costs and value-
add, than there is for smaller projects.

The restructuring business plan entailed proceeds from non-core
assets being reserved to fund the borrowers' value-adding capex on
core property. The Mapeley sponsor stands to share with the issuer
in any upside in collateral proceeds above a reduced amount of
GBP143 million; however, in Fitch's view, senior creditors take
disproportionate risk for their notional return while other
parties, including Mapeley and junior creditors, stand to benefit
from any upside, however distant or remote the prospect. A
portfolio valuation down to GBP98 million-GBP110 million (from
late 2016) highlights the uncertainty arising from the Brexit
referendum result.

The two other loans (GBP37.1 million Wildmoor Northpoint Ltd and
GBP7.4 million CPI Retail Active Management) have both been in
special servicing for over six years. Over this time collateral
values have fallen markedly.

KEY RATING DRIVERS

With UK property risk only set to grow, a geared business plan
that has to date generated no asset sales, and reduced issuer
control over the recovery process prior to LFM, Fitch has
downgraded the notes, which are all now rated in the distressed
categories. This signals a real possibility of the issuer
defaulting on the senior notes, in Fitch's view.

The issuer is already reliant on unrated SA for day-to-day
liquidity. Mapeley III portfolio earnings are being diverted away
from debt service (towards "property protection payments",
including GBP14 million of unpaid business rates), while the
original issuer liquidity facility has been terminated. SA is now
providing the Mapeley III borrowers with a GBP10 million senior
unfunded liquidity facility, for an annual commitment fee of 200bp
and margin on drawn amounts of 350bp.

RATING SENSITIVITIES

A speedier return of capital may allow either or both the class A1
notes to be upgraded.


MONARCH AIRLINES: IAG Acquires Valuable Slots at Gatwick Airport
----------------------------------------------------------------
Alistair Smout at Reuters reports that British Airways owner IAG
has acquired valuable take-off and landing slots at London's
Gatwick airport from failed carrier Monarch Airlines, the latter's
administrators said on Nov. 27, beating off competition from other
airlines.

According to Reuters, the administrators said they were in the
process of completing an exchange of Monarch's slots for others
currently held by IAG but did not disclose how much IAG was paying
under the swap arrangement to get the more valuable slot times.

"As well as representing an excellent recovery for creditors from
one of Monarch Airline's significant assets, the clarity that this
sale will bring is very positive for other stakeholders such as
Gatwick Airport and its customers," Reuters quotes
Blair Nimmo, partner at KPMG and joint administrator, as saying in
a statement.

IAG, as cited by Reuters, said in a statement that "these slots
will be used by the group's airlines, primarily British Airways,
enabling them to grow their presence at the airport and launch new
destinations and add extra frequencies."

The agreement comes after Monarch won an appeal on Nov. 22 to have
the right to sell their airport slots even though it was no longer
capable of operating any flights, a court ruling which was
criticized by the International Air Transport Association (IATA)
which sets guidelines for how slots at busy airports should be
allocated and swapped, Reuters relates.

Mr. Nimmo said that the "continuing focus" of the administrators
would now switch to the sale of the Luton slots, as well as other
residual assets such as Monarch's brand, Reuters notes

Monarch Airlines, also known as and trading as Monarch, was a
British airline based at Luton Airport, operating scheduled
flights to destinations in the Mediterranean, Canary Islands,
Cyprus, Egypt, Greece and Turkey.


OLD MUTUAL: Fitch Affirms 'BB' Subordinated Debt Rating
-------------------------------------------------------
Fitch Ratings has placed Old Mutual Plc's (Old Mutual) 'BBB' Long-
Term Issuer Default Rating (IDR) and its 'BBB-' senior note
programme on Rating Watch Negative (RWN). Fitch has simultaneously
affirmed Old Mutual's subordinated debt at 'BB'.

Fitch has also affirmed Old Mutual Insure Limited's (OMI) Insurer
Financial Strength (IFS) rating at 'BB+'/Stable, and Old Mutual
Life Assurance Company (South Africa) Limited's (OMLACSA) National
IFS rating at 'AAA(zaf)'.The Outlooks are Stable. A full list of
rating actions is at the end of this commentary.

KEY RATING DRIVERS

The RWN reflects Fitch expectation that the Old Mutual group's
proposed unbundling of the Old Mutual Wealth business unit (OMW)
will remove the hard-currency interest cover of any remaining debt
obligations of Old Mutual. The group intends to retain Old Mutual
Plc and any remaining debt under its South African-based Old
Mutual Emerging Markets (OMEM) business unit. As a result, Old
Mutual's IDR and senior notes' rating would be capped by South
Africa's sovereign Long-Term Local-Currency IDR (BB+/Stable).

In contrast, Fitch do not expect the rating of Old Mutual's
subordinated notes to be affected by this restructuring. This is
because the subordinated notes' rating would not be constrained by
South Africa's sovereign rating. As part of its 'managed
separation' strategy, announced in March 2016, the group intends
to demerge and separately list the core insurance businesses, OMW
and OMEM in 2018. Fitch do not expect OMEM's operations to be
materially disrupted by the group's restructuring plans.

OMEM's ratings are driven by its strong and diversified business
profile and capitalisation. However, OMEM's earnings and
investment exposure to a weakening South African economy are
rating weaknesses.

OMI's IFS rating, as well as the implied international IFS rating
for OMEM's South African operations, are constrained by the South
African sovereign Long-Term Local-Currency IDR. This is a result
of OMEM's exposure to the South African operating environment and
investment exposure to government and other local securities.

OMEM is one of South Africa's largest insurance groups, with a
strong market position in most segments including life, non-life,
savings and investment management. Earnings are diversified across
product lines, customer base, and geography with OMEM's businesses
in Latin America, Asia and the rest of Africa. These businesses
contributed 17% to the OMEM group total operating profit in 2016
(2015: 15%). OMEM plans to distribute the majority of its stake in
Nedbank Group Limited (BB+/Stable), with a plan to retain a 19.9%
strategic stake.

OMLACSA, OMEM's main operating entity, is strongly capitalised
with a statutory capital adequacy requirement (CAR) cover ratio
remaining strong at 3.2x at end-2016 (end-2015: 3.2x) and for
participating business, has the ability to share potential
investment losses with policyholders.

OMEM's pre-tax operating profit increased to GBP362 million in
1H17 from GBP270 million in 1H16. The increase was mainly due to
the effect of currency translation on the back of a strengthening
rand. In local currency terms, pre-tax operating profit increased
just 1% in the South Africa business, supported by significant
growth of 31% in the Rest of Africa unit.

OMI is the second largest general insurer in South Africa,
providing a full range of non-life insurance products, with a
diversified mix of personal and commercial lines. This includes
Credit Guarantee Insurance Corporation (CGIC), the leading trade
credit insurer in South Africa.

Most South African-based life insurers have reported weakening net
customer cash flows, reflecting a difficult local economic
environment. In addition, the sector remains exposed to domestic
credit and other investment risks through exposure to local
financial markets. However, these risk factors do not adversely
affect the life insurance sector's creditworthiness relative to
that of the South African sovereign.

OMLACSA, OMI and Mutual & Federal Risk Financing Limited (M&F RF)
will continue to operate as "Core" entities under OMEM. Their
ratings and Outlooks reflect OMEM's current and expected
standalone credit profile, as the largest profit contributor to
the existing Old Mutual group, and a market-leading life insurer
and fund manager in South Africa.

Fitch estimates OMEM's financial leverage ratio (FLR) at around
21% at end-2016 (end-2015: 20%). This is well within Fitch's
guidelines for the ratings. Fitch expects OMEM's rand-based
financial leverage to remain broadly stable. However, Fitch
estimate that the possible addition of any residual debt of Old
Mutual Plc could increase OMEM's FLR to above 24%, a level that
would remain commensurate with OMEM's ratings. The rise in the FLR
is muted by an allowance for projected sterling cash balances held
by Old Mutual Plc.

Old Mutual Plc's borrowings stood at GBP1,027 million with a cash
position of GBP860 million at end-1H17. On 23 November 2017 Old
Mutual announced the conclusion of a tender offer which resulted
in the redemption of GBP548 million of its subordinated debt at a
cash cost of GBP675 million. The cash position will be
supplemented from the sales of Old Mutual Asset Management Plc and
Kotak Mahindra Old Mutual Life joint venture in India by end-2017.
Fitch believe the liquidity position at group level will remain
sufficient throughout the restructuring period.

RATING SENSITIVITIES

The RWN on Old Mutual's ratings would be resolved by the
unbundling of OMW from Old Mutual. This event would lead to the
following rating actions on Old Mutual:

-- Long-Term IDR would be downgraded to 'BB+' from 'BBB'

-- Senior unsecured notes programme would be downgraded to 'BB+'
    from 'BBB-'

-- Short-Term IDR and commercial paper would be downgraded to
    'B' from 'F3'

The National Ratings of OMLACSA, OMI and M&F RF would be
downgraded if OMEM's creditworthiness deteriorates materially
relative to the South African sovereign and its peers in the South
African market.

A one-notch downgrade of the South African sovereign IDR would
trigger a corresponding action on Old Mutual's IDR and OMI's IFS
rating.

A change in the South African sovereign IDRs is unlikely to affect
the National Ratings of OMLACSA and OMI, as the relativity of
these ratings to that of the best credits in South Africa is
expected to remain unaffected.

FULL LIST OF RATING ACTIONS

Old Mutual plc

Long-Term IDR of 'BBB' placed on RWN
Senior unsecured notes programme placed on RWN
Subordinated debt affirmed at 'BB'
Short-Term IDR and commercial paper placed on RWN

Old Mutual Insure Limited (OMI)

IFS rating: affirmed at 'BB+'; Outlook Stable
National IFS rating: affirmed at 'AAA(zaf)'; Outlook Stable

Mutual & Federal Risk Financing Limited

National IFS rating: affirmed at 'AAA(zaf)'; Outlook Stable

Old Mutual Life Assurance Company (South Africa) Limited

National IFS rating: affirmed at 'AAA(zaf)'; Outlook Stable
National Long-Term rating: affirmed at 'AAA(zaf)'; Outlook Stable
Subordinated debt: affirmed at 'AA(zaf)'


PALMER & HARVEY: On Brink of Administration, 4,000 Jobs at Risk
---------------------------------------------------------------
Ashley Armstrong at The Telegraph reports that embattled
wholesaler Palmer & Harvey is expected to tumble into
administration putting 4,000 workers at risk just weeks before
Christmas despite months of rescue takeover talks.

PwC is understood to be waiting in the wings to handle the
administration after cash flow issues meant the business could not
survive as a going concern, The Telegraph discloses.

Last month, P&H, which supplies Tesco and corner shops across the
country, signed exclusive takeover talks with private equity firm
Carlyle to provide a "strong financial platform", The Telegraph
recounts.

The deal was conditional on cigarette giants Imperial and Japan
Tobacco rolling over loans worth GBP60 million and providing
additional funding to keep the business solvent, The Telegraph
notes.

However, sources, as cited by The Telegraph, said that intense
pressures on P&H's cash flow meant that a deal could not be
agreed.

Company insiders were still clinging on to the hope of avoiding
collapse by striking a deal with another party, The Telegraph
states.

But industry sources have said that it is unlikely a rival
retailer would want to take on a business with such low profit
margins, The Telegraph relates.



                            *********

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.
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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