---

        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

           Friday, December 1, 2017, Vol. 18, No. 239


                            Headlines


C Y P R U S

CYPRUS: Credit Profile Balances Greater Economic Resilience


G E R M A N Y

CERAMTEC HOLDING: Moody's Assigns B3 CFR, Outlook Stable
SC GERMANY 2017-1 UG: S&P Rates Class D-Dfrd Notes 'BB(sf)'


G R E E C E

PUBLIC POWER: S&P Affirms 'CCC' CCR on Restored Cash Cushion


I R E L A N D

EUROMAX V: S&P Raises Rating on Class A2 Notes to B+(sf)


K A Z A K H S T A N

HALYK BANK: 3Q17 IFRS Accounts No Impact on BB Rating, Fitch Says


N E T H E R L A N D S

ALME LOAN IV: Moody's Assigns (P)B2 Rating to Cl. F-R Notes
THOHR II: S&P Assigns Preliminary 'B+' CCR, Outlook Stable


P O R T U G A L

HIPOTOTTA NO. 5: S&P Affirms CCC-(sf) Rating on Class F Notes


R O M A N I A

KAZMUNAYGAS INT'L: S&P Affirms 'B-' CCR, Outlook Stable


R U S S I A

DELOPORTS LLC: S&P Affirms BB- CCR, Outlook Stable
PETROPAVLOVSK PLC: Fitch Assigns B- IDR, Outlook Stable


S P A I N

CAIXABANK PYMES 9: Moody's Assigns Caa3 Rating to EUR222MM Notes


U N I T E D   K I N G D O M

ERPE MIDCO: S&P Assigns 'B' Corp Credit Rating, Outlook Stable
MONARCH AIRLINES: Wizz Air Secures Luton Airport Slots
PALMER & HARVEY: Collapse Won't Lead to Shortage of Cigarettes
PINEWOOD GROUP: Moody's Assigns Ba2 CFR, Outlook Stable
QFSL CLEANING: SFP Completes Sale of Business, 150 Jobs Saved

THOMAS COOK: Fitch Rates EUR400MM Unsec. Notes Due 2023 BB-(EXP)
WILMSLOW LEISURE: Intends to Permanently Close Club Following CVA


X X X X X X X X

* EU Commission Proposes to Extend SRB Chair's Mandate
* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles


                            *********



===========
C Y P R U S
===========


CYPRUS: Credit Profile Balances Greater Economic Resilience
-----------------------------------------------------------
Cyprus's (Ba3 positive) credit profile reflects recent
improvements in the country's economic resilience, robust growth
momentum and strong fiscal performance, Moody's Investors Service
said in a new annual report. Cyprus faces credit challenges
arising from its small and relatively undiversified economy, as
well as high levels of government, banking and household debt.

The report, "Government of Cyprus -- Ba3 Positive, Annual credit
analysis", is available at www.moodys.com.

"Cyprus's growth momentum, coupled with strong fiscal performance,
helped to reduce the country's debt-to-GDP ratio in 2016 for the
first time since 2008," said Sarah Carlson, a Moody's Senior Vice
President and the report's author. "Moody's expects a decline in
the debt-to-GDP ratio to close to 100% by the end of this year.

"The country has regained capital market access and has a cash
buffer, which will help to cover financing needs next year."

Moody's has raised its real GDP growth forecast for 2017 to 3.5%
(from 2.7%), and for 2018 to 3.2% (from 2.5%), and expects a
gradual moderation in growth.

Although Moody's expects household private debt servicing to
result in a deceleration in the growth of private consumption, it
is still likely to be the main driver of the ongoing expansion,
supported by favourable developments in the labour market and the
important tourism sector.

After the strong fiscal consolidation efforts realised in recent
years, the government's 2017-19 Medium Term Fiscal Plan assumes a
broadly neutral fiscal stance, with a slight deterioration in the
general government budget balance pencilled in for 2018.

Moody's projects a headline deficit of just 0.4% of GDP for 2017
and primary surpluses of around 2.1% of GDP through 2018, which
will help support debt reduction. Moreover, the authorities
project that the primary balance will remain in surplus over the
medium-term, in the order of 2.5% in 2018 and 3.4% in 2019.

Cypriot government debt remains affordable, reflecting the very
large share of official sector creditors in the total debt stock.
Interest charges took up only 6.6% of general government revenue
in 2016, down from a peak of 9.2% in 2013, and this is likely to
stay just below 7% over the next two years.

In Moody's central scenario, public debt will decline to around
92% of GDP by 2019. However, Cyprus's debt metrics still remain
vulnerable to a negative growth, fiscal or a combined shock
scenario.

Cyprus is highly susceptible to event risk, reflecting the
significant risks that remain in the banking sector. The main
rated Cypriot banks have very low stand-alone ratings and the
banking sector remains large. However, the stability of the
country's financial sector and bank balance sheets has been
bolstered through increased capital buffers, the sale of non-core
activities overseas and improvements in bank funding profiles.

Nevertheless, uncertainties remain over the strength of the
banking sector, given the very high NPL ratios across both
household and corporate loan books.

The positive outlook on Cyprus's sovereign rating reflects Moody's
view that improvements in economic resilience and fiscal strength
are likely to be sustained.



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


CERAMTEC HOLDING: Moody's Assigns B3 CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service has assigned a B3 corporate family
rating (CFR) and a B3-PD probability of default rating (PDR) to
CTC BondCo GmbH, which, following the proposed acquisition of
Germany-based CeramTec Holding GmbH (CeramTec) by CTC AcquiCo
GmbH, a direct subsidiary of CTC BondCo GmbH, will be an
intermediate holding company of CeramTec. Moody's has also
assigned B2 instrument ratings to the proposed EUR1,116.5 million
equivalent senior secured term loan B (TLB, maturing 2024) and
EUR75 million senior secured revolving credit facility (RCF,
maturing 2023), to be raised by CTC AcquiCo GmbH. Additionally,
Moody's has assigned a Caa2 rating to the EUR406 million senior
secured second lien notes (due 2025) to be issued by CTC BondCo
GmbH. The outlook on all aforementioned ratings is stable.

Proceeds from the new TLB and notes will be used to finance the
acquisition of CeramTec by funds controlled by private equity firm
BC Partners via CTC AcquiCo GmbH, to refinance existing debt of
CeramTec and pay transaction fees and expenses. Moody's
anticipates that the indirect cash contribution from the new
shareholder will be in the form of common equity.

The B2 CFR and the B2-PD PDR assigned to CeramTec Group GmbH as
well as the existing instrument ratings on the senior secured term
loans and the EUR100 million senior secured RCF raised by CeramTec
Service GmbH as well as the EUR307 million senior unsecured notes
issued by CeramTec Group GmbH remain unchanged. Moody's expects
the outstanding loans and notes to be repaid upon closing of the
acquisition and to withdraw CFR, PDR and instrument ratings upon
repayment.

RATINGS RATIONALE

The assigned B3 CFR with a stable outlook reflects the increase in
CeramTec's indebtedness following the proposed acquisition and
refinancing, which results in an expected leverage of around 8x
Moody's-adjusted debt/EBITDA at year-end 2017 on a pro forma basis
and a limited deleveraging going forward with debt/EBITDA expected
to reach around 7.0x by year-end 2019.

Furthermore, the rating reflects (1) the group's modest scale as
defined in group revenue of EUR537 million in the 12 months ended
September 30, 2017 (LTM Sep-17), (2) its narrow product range and
customer concentration in the Medical Products segment (around 37%
of group sales in LTM Sep-17), (3) price pressure from medical
customers and so far limited visibility on a potential
stabilization of selling prices as well as (4) exposure to the
more cyclical Industrial segment with customers in automotive,
electronics, textile and construction sectors.

These factors are balanced by CeramTec's (1) strong market
positions in the niche market of high-performance ceramics
materials and products, (2) attractive end-markets with favourable
dynamics in the Medical Products segment and a diversified
presence in industrial applications, and (3) sound historical
operating performance, reflected in very strong and robust
profitability (Moody's-adjusted EBITDA margins averaged 31% in
2012-2016 and increased to 37% in LTM Sep-17), as well as (4)
constant positive, albeit moderate free cash flow generation given
sizeable interest costs resulting from the group's high debt load.

LIQUIDITY

CeramTec's short-term liquidity is good. As of September 30, 2017,
the group reported EUR17 million of cash and cash equivalents on
balance sheet, which together with expected internally generated
funds from operations of around EUR110 million per annum over the
next 12-18 months (expected by Moody's) should comfortably cover
all expected cash requirements. Such cash uses mainly comprise
expected capital expenditures of above EUR40 million in 2018 and
an assumed minimum cash level to run day to day operations of
around 3% of revenues.

The liquidity assessment also takes into account the proposed
EUR75 million RCF, which Moody's understand will be undrawn at
closing of the transaction, and one springing covenant (Senior
Secured Net Leverage ratio), to be tested when more than 40% of
the RCF is utilised.

STRUCTURAL CONSIDERATIONS

In the loss-given-default (LGD) assessment for CeramTec, based on
the structure post refinancing, Moody's ranks pari passu the
proposed new senior secured EUR1,116.5 million TLB and EUR75
million RCF, which share the same security and are guaranteed by
certain subsidiaries of the group accounting for at least 80% of
consolidated EBITDA. The B2 (LGD3) ratings on the senior secured
instruments reflect their priority position in the group's capital
structure and the benefit of loss absorption provided by the
junior ranking debt.

The EUR406 million of senior secured second lien notes are secured
by certain holding company collateral on a first-ranking basis,
and share the same guarantors and certain of the same collateral
as the senior secured credit facilities on a subordinated basis.
This is reflected in the Caa2 (LGD5) rating assigned to the notes.
Moody's have ranked trade payables at the level of the senior
secured credit facilities and pension obligations and minimum
lease rejection claims at operating subsidiaries at the level of
the senior secured second lien notes.

The group's capital structure further includes shareholder loans,
which qualify for 100% equity treatment by Moody's and is
therefore not included in the LGD assessment and debt calculations
for the group.

OUTLOOK

The stable outlook reflects the expectation of CeramTec to
maintain at least a stable operating performance and progressively
reduce its high Moody's-adjusted leverage to below 8.0x gross
debt/EBITDA in the course of FY2018. However, leverage reduction
is expected to be limited and the result of modest revenue and
EBITDA growth and excess free cash flow used to reduce
indebtedness.

WHAT COULD CHANGE THE RATING UP/DOWN

To consider an upgrade, Moody's would require (1) the group's
leverage to decline to below 7.0x Moody's-adjusted debt/EBITDA,
(2) EBITDA-margins remaining above 35% (37% based on LTM Sep-17),
(3) positive free cash flow generation exemplified by FCF/debt
ratio of sustainable above 5%.

Downward pressure on the ratings would build, if (1) the group was
unable to reduce leverage from current high levels; (2) FCF turned
negative and CeramTec's liquidity profile would weaken.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Medical
Product and Device Industry published in June 2017.

CORPORATE PROFILE

Based in Plochingen, Germany, CeramTec Holding GmbH and certain
affiliated entities (together "CeramTec" or "group") designs and
manufactures high-performance ceramics (HPC) materials primarily
for medical applications (ceramic components for hip joint
implants) as well as industrial applications used in the
automobile, electronics, textile and construction industries,
amongst others. CeramTec generated consolidated revenues of EUR537
million in the twelve months ended September 2017. In October 2017
CeramTec's current owner Cinven agreed to sell the company to a
consortium led by private equity firm BC Partners for an
undisclosed consideration. The acquisition is subject to approval
by anti-trust and foreign investment authorities.


SC GERMANY 2017-1 UG: S&P Rates Class D-Dfrd Notes 'BB(sf)'
-----------------------------------------------------------
S&P Global Ratings assigned its credit ratings to SC Germany
Consumer 2017-1 UG (haftungsbeschraenkt)'s class A, B-Dfrd, C-
Dfrd, and D-Dfrd notes. At closing, SC Germany Consumer 2017-1
also issued unrated class E-Dfrd notes.

The securitized portfolio comprises receivables from consumer
loans, which Santander Consumer Bank AG granted to its German
retail client base. This is Santander Consumer Bank's ninth true
sale consumer loan transaction.

During the transaction's revolving period, the issuer can purchase
additional loan receivables. The revolving period is scheduled to
last for 12 months, followed by sequential note amortization. A
combination of subordination and excess spread provides credit
enhancement for the rated classes of notes. A principal deficiency
trigger is in place. Once hit, it subordinates the class B-Dfrd,
C-Dfrd, D-Dfrd, and E-Dfrd notes' interest payments to the class A
notes' principal payments and accelerate the repayment of the
class A notes.

Santander Consumer Bank is an indirect subsidiary of Spanish Banco
Santander S.A. It is the largest noncaptive provider of auto loans
in Germany and is also a well-known originator in the European
securitization market.

S&P said, "Our ratings on the rated classes of notes reflect our
assessment of the underlying asset pool's credit and cash flow
characteristics, as well as our analysis of the transaction's
exposure to counterparty and operational risks. Our analysis
indicates that the available credit enhancement for the class A,
B-Dfrd, C-Dfrd, and D-Dfrd notes would be sufficient to absorb
credit and cash flow losses in 'AA', 'A', 'BBB', and 'BB' rating
scenarios, respectively."

There is no back-up servicer in place. The combination of a
borrower notification process, a liquidity reserve, a commingling
reserve, and the general availability of substitute servicers
mitigates servicer disruption risk.

RATING RATIONALE

Economic Outlook

S&P said, "In our base-case scenario, we forecast that Germany
will record GDP growth of 2.0% in 2017, 1.7% in 2018, and 1.5% in
2019. At the same time, we expect unemployment rates to stabilize
at historically low levels, at 3.7% in 2017, 3.4% in 2018, and
3.3% in 2019. In our view, changes in GDP growth and the
unemployment rate are key determinants of portfolio performance.
We set our credit assumptions to reflect our economic outlook. Our
near- to medium-term view is that the German economy will remain
resilient and record positive growth."

Credit Risk

S&P said, "We have analyzed credit risk under our European
consumer finance criteria using historical loss data from the
originator's loan book since January 2007 until June 2017. We
expect to see 6.5% of defaults in the securitized pool, which
reflects our economic outlook for Germany, as well as our view on
the originator's good servicing procedures. This is in line with
its predecessor, SC Germany Consumer 2016-1."

Payment Structure

S&P said, "Our ratings reflect our assessment of the transaction's
payment structure, cash flow mechanics, and the results of our
cash flow analysis to assess whether the notes would be repaid
under stress test scenarios. Taking into account subordination and
the available excess spread in the transaction, we consider the
available credit enhancement for the rated notes to be
commensurate with the ratings that we have assigned. Additionally,
the class B-Dfrd to D-Dfrd notes are deferrable-interest notes and
we have treated them as such in our analysis. Under the
transaction documents, the issuer can defer interest payments on
these notes. Consequently, any deferral of interest on the class
B-Dfrd to D-Dfrd notes would not constitute an event of default.
While our 'AA (sf)' rating on the class A notes addresses the
timely payment of interest and the ultimate payment of principal,
our ratings on the class B-Dfrd to D-Dfrd notes address the
ultimate payment of principal and the ultimate payment of
interest. Furthermore, we note that there is no compensation
mechanism that would accrue interest on deferred interest in this
transaction. We have nevertheless assumed accrual of interest on
deferred interest in our analysis."

Counterparty Risk

The transaction's documented replacement language is in line with
our current counterparty criteria for all of the relevant
counterparties. The transaction is exposed to HSBC Bank PLC as
transaction account provider, to Santander Consumer Bank as
commingling and setoff reserve provider, and to DZ Bank AG
Deutsche Zentral-Genossenschaftsbank as interest rate swap
counterparty.

Operational risk

Santander Consumer Bank is an indirect subsidiary of Banco
Santander. It is one of the largest German consumer banks, and
Germany's largest noncaptive car finance bank. It is also a well-
known originator in the European securitization market. S&P said,
"We believe that the company's origination, underwriting,
servicing, and risk management policies and procedures are in line
with market standards and adequate to support the ratings
assigned. Our operational risk criteria focuses on key transaction
parties (KTPs) and the potential effect of a disruption in the
KTPs' services on the issuer's cash flows, as well as the ease
with which a KTP could be replaced if needed. In this transaction,
the servicer is the only KTP we have assessed under this
framework. Our operational risk criteria do not constrain our
ratings in this transaction based on our view of the servicer's
capabilities."

Legal Risk

S&P said, "The transaction may be exposed to deposit setoff and
commingling risks, in our opinion. If it becomes ineligible as a
counterparty, Santander Consumer Bank would fund the setoff and
commingling reserves, which mitigate these risks. A reserve
partially mitigates commingling risk and we have sized the
unmitigated exposure as an additional credit loss. We have
analyzed legal risk, including the special-purpose entity's
bankruptcy remoteness, under our legal criteria."

Ratings Stability

S&P said, "In line with our scenario analysis approach, we have
run two scenarios to test the stability of the assigned ratings.
The results show that under the scenario modeling moderate stress
conditions (scenario 1), the rating on the notes would not suffer
more than the maximum projected deterioration that we would
associate with each rating level in the one-year horizon, as
contemplated in our credit stability criteria."

Sovereign Risk

Considering the current unsolicited 'AAA' long-term foreign
currency sovereign rating on Germany, S&P's structured finance
ratings above the sovereign (RAS) criteria do constrain its
ratings in this transaction.

RATINGS LIST

Ratings Assigned

  SC Germany Consumer 2017-1 UG (haftungsbeschraenkt)
  EUR850 Million Asset-Backed Fixed- And Floating-Rate Notes
  (Including EUR37.8 Million Unrated Notes)

  Class        Rating           Amount
                              (mil. EUR)

  A            AA (sf)           712.3
  B-Dfrd       A (sf)             53.2
  C-Dfrd       BBB (sf)           33.6
  D-Dfrd       BB (sf)            13.1
  E-Dfrd       NR                 37.8

  NR--Not rated.



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


PUBLIC POWER: S&P Affirms 'CCC' CCR on Restored Cash Cushion
------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC' long-term corporate credit
rating on Greek utility Public Power Corp. S.A. (PPC). The outlook
is negative.

S&P said, "At the same time, we affirmed the 'CCC' issue rating on
the EUR1.3 billion unsecured syndicated loan with Greek banks, as
well as on the EUR500 million senior unsecured notes issued by PPC
Finance Ltd. and guaranteed by PPC. The recovery rating on both
instruments is '4', reflecting our expectation of average recovery
(rounded estimate: 45%).

"The affirmation reflects our view of PPC's restored cash cushion.
This is mainly driven by the EUR360 million that the company is
expected to receive in the next couple of months from the central
government as reimbursement for the costs incurred for public
service obligations (PSO) over 2012-2016. We note that the
extraordinary payment follows EUR627 million of cash received
earlier this year for the unbundling process of IPTO, the national
electricity transmission grid.

"We now believe that cash outlays for 2018 are covered with
sufficient funds. However, the company's liquidity position could
come under pressure again in the absence of a proactive rollover
of ongoing debt maturities, namely the EUR500 million senior
unsecured notes and the EUR1.3 billion syndicated loan with Greek
banks, both due in April 2019.

"We see some uncertainties around Greek banks' timely support,
based on the recent track record. We note that, in April 2017, the
banks delayed the process of refinancing the EUR200 million notes
due May 1, 2017, forcing PPC to postpone its payables in order to
honor this maturity. Moreover, we understand that the Greek
systemic banks not only requested and obtained a guarantee on the
new EUR200 million financing in the form of 125% coverage by
current and future receivables, but also will receive some
prepayments on the syndicated loan due in 2019 for a total amount
of around EUR140 million between now and the end of 2018.

"We see PPC as unable to cover its cash outlays with the cash
generated by operations and therefore we cannot exclude that the
company will undertake a debt restructuring to address its
refinancing needs.

"We continue to see some risks arising from the full
implementation of the European competition regulation,
encompassing a steep contraction of market share to about 50% by
2020, as well as a significant cut in lignite capacity, expected
to take place in 2018.

"On a more positive note, PPC is undertaking a comprehensive
business restructuring to reshape its operations. We believe it
could take some time to complete the turnaround though, and we
consider the execution risks for completing a sustainable and
efficient business rightsizing to be quite high.

"After the sale of IPTO early this year, we expect PPC's retail
market share to continue to decrease to about 50% by 2020 from 85%
today. Moreover, the European regulators have imposed the sale of
about 40% of PPC's lignite plant and mines, in order to enhance
efficiency and competition in the Greek market, further reducing
the company's weight in the market. That said, we expect the cash
intake from the disposal of lignite assets to partially help debt
repayment. At this stage, we are not in a position to quantify the
market value or specific timing of this transaction.

"We believe that EBITDA on unadjusted basis will decrease by about
50% to EUR650 million-EUR750 million in 2018, from EUR1.2 billion
in 2016, limiting PPC's ability to service its debt. In addition,
PPC's working capital evolution remains highly uncertain, with a
very sizable amount of overdue receivables, peaking at about
EUR2.4 billion at the end of August 2017, against a pre-crisis
level of EUR1.7 billion in 2014."

The negative outlook reflects the possibility of a further
liquidity shortage if PPC is unable to rollover ongoing debt
maturities while its business is shrinking, as well as the need
for timely refinancing of the April 2019 maturities on its EUR500
million unsecured notes and the EUR1.3 billion syndicated loan
with Greek banks.

A revision of the outlook to stable is very unlikely in the
absence of a clear plan to address the sizable April 2019 debt
maturities.

S&P will take negative rating action, most likely by the end of
first-half 2018, if:

-- PPC is unable to find additional sources of cash through
    asset disposals or receivable securitizations, or further
    improve its cash balances through better cash flow generation
    or refinancing of amortizing debt maturities; or

-- PPC proves unable to secure well ahead of time the
    refinancing for the EUR500 million notes and EUR1.3 billion
    syndicated loan, both due in April 2019; or

-- The company announces a debt renegotiation or haircut.



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


EUROMAX V: S&P Raises Rating on Class A2 Notes to B+(sf)
--------------------------------------------------------
S&P Global Ratings today raised its credit ratings on EUROMAX V
ABS PLC's class A1 and A2 notes. At the same time, S&P has
affirmed its ratings on the class A3 and A4 notes.

S&P said, "Since our previous review in April 2016, the
transaction has performed in line with our expectations.

"The issuer received EUR16.37 million of principal proceeds,
comprising EUR13.37 million of asset redemptions and EUR3.00
million of recoveries from the 17 assets that we deemed defaulted
at our April 2016 review. This represents an aggregate recovery
rate of 7.03%.

"The issuer used all of the principal proceeds and EUR0.88 million
of interest proceeds to amortize the class A1 notes.

"Since our previous review, the portfolio has experienced two new
asset defaults: the class G notes of DECO 9 - Pan Europe 3 PLC for
EUR2.27 million and the class F notes of Talisman Finance PLC for
EUR2.32 million.

"In our analysis, we gave no credit to defaulted assets.

"We have applied our supplemental tests to address event and model
risk, in line with our corporate cash flow collateralized debt
obligations (CDO) criteria. As the transaction employs excess
spread, we have applied this test by running our cash flows using
the forward interest rate curve."

As a result of the amortization of class A1 notes, the available
credit enhancement for both the class A1 and A2 notes has
increased. The class A3 and A4 notes, however, remain
undercollateralized. Due to its position in the interest waterfall
below the curing of the coverage tests, the class A4 notes have
continued to defer its interest payment.

S&P said, "The results of our credit and cash flow analysis
indicate that the available credit enhancement for the class A1
and A2 notes is commensurate with higher ratings than those
currently assigned. We have therefore raised our ratings on
the class A1 and A2 notes.

"In our view, the class A3 and A4 notes are highly vulnerable to a
payment default at maturity. We have therefore affirmed our 'CCC-
(sf)' ratings on these classes of notes in line with our
criteria."

EUROMAX V ABS is a cash flow CDO of structured finance securities,
mostly residential mortgage-backed securities (RMBS), commercial
mortgage-backed securities (CMBS), and CDOs. The transaction
closed in November 2006 and is managed by Collineo Asset
Management GmbH.

RATINGS LIST

  EUROMAX V ABS PLC
  EUR320 mil floating-rate notes
                                           Rating
    Class            Identifier         To             From
    A1               XS0274615656       A- (sf)        BBB (sf)
    A2               XS0274616381       B+ (sf)        CCC+ (sf)
    A3               XS0274616977       CCC- (sf)      CCC- (sf)
    A4               XS0274617439       CCC- (sf)      CCC- (sf)



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


HALYK BANK: 3Q17 IFRS Accounts No Impact on BB Rating, Fitch Says
-----------------------------------------------------------------
The financial profile of Halyk Bank of Kazakhstan (Halyk,
BB/Stable) in its 3Q17 IFRS accounts, the first to be published
after the acquisition and consolidation of Kazkommertsbank (KKB,
BB-/Stable), is largely in line with Fitch Ratings' expectations,
and commensurate with the bank's ratings. Fitch do not expect any
near-term rating actions on Halyk's ratings, as reflected by the
Stable Outlook on the bank.

Based on the 3Q17 accounts, Fitch continues to view Halyk's
capital adequacy as reasonable, its performance as strong and
funding and liquidity profile as solid. Against this, the amount
of potentially problem assets is elevated, although Fitch believe
that Halyk's pre-impairment profit is sufficient to gradually
increase provisioning of these, if required.

Non-performing loans (NPLs, 90 days overdue) in the 3Q17 accounts
were reported at 13.4% and were 64% covered by reserves. In
accordance with IFRS3, Halyk consolidated KKB's loan book on a net
basis. On a gross basis, the amount of NPLs in the consolidated
book would have been higher, at around 25%, which is just
marginally above Fitch expectations, and coverage would have been
112%. The significantly lower coverage reported in the accounts
results from KKB's NPLs net of specific reserves being added to
Halyk's NPL denominator, while KKB's provisions (some of which
were held against performing loans) are not added to Halyk's
reserve numerator.

In addition to NPLs, renegotiated loans in the reported accounts
(i.e. those reported on a gross basis at Halyk and those added net
of specific reserves from KKB) accounted for 11% of the portfolio.
Fitch estimates that at end-3Q17 the group's unreserved NPLs were
equal to a moderate 20% of Fitch Core Capital (FCC), with
renegotiated loans equal to an additional 46%. These ratios are
broadly in line with those expected by Fitch.

The group's FCC ratio stood at 15.7% at end-3Q17, slightly above
Fitch expectations. Regulatory capitalisation at both Halyk and
KKB, in each case based on unconsolidated accounts, is also
reasonable, with Tier 1 ratios of 20.2% and 15%, respectively, at
end-3Q17. This compares with a regulatory minimum of 10.5%,
including a capital conservation buffer of 3% and systemic
importance buffer of 1%. KKB's capitalisation has been further
strengthened in November by a new equity injection from Almex
Holding (Halyk's majority shareholder) of KZT65 billion. This is
equal to around 6% of KKB's standalone regulatory risk-weighted
assets or 12% of the group's exposure to the above-mentioned
unreserved NPLs and renegotiated loans.

Capitalisation and net problem-loan exposures are likely to remain
supported by Halyk's robust profitability. The group's annualised
pre-impairment profit for the three months ended 30 September 2017
equalled a strong 8% of gross loans. The bottom line was also
strong, with an annualised return on equity of around 25% in the
third quarter. However, Fitch believe that moderate pressure on
bottom line performance is likely to stem from the operational
integration between Halyk and KKB and potential additional
provisioning needs for the latter.

The funding and liquidity profile is strong, as expressed by the
group's low 56% loans/deposits ratio. The group's pricing power
and deposit collection capacity remain the strongest in the
sector. Near-term contractual repayments of external wholesale
funding are limited to KKB's USD300 million Eurobond issue
maturing in May 2018. At end-3Q17, the group's liquidity buffer
exceeded KZT4 trillion (an equivalent of USD12 billion).

An upgrade of Halyk's ratings would require the successful
integration of KKB and a reduction in unreserved problem and
renegotiated loans relative to capital. Conversely, Halyk's
ratings may be downgraded in case of additional deterioration in
the quality of legacy loans, or significant impairment of new
loans.

KKB's IDRs and senior unsecured debt rating reflects potential
support from Halyk, given the latter's ownership and KKB's
strategic importance for the group. An upgrade of KKB's IDR to the
level of Halyk would be possible if the bank becomes more deeply
integrated with Halyk, leading to a higher propensity to support.
This may be the case if Halyk develops a clear strategy for the
bank and aligns KKB's risk management more closely with its own,
and if KKB demonstrates an ability to generate considerably
stronger core profits.

The banks' ratings are:

Halyk Bank of Kazakhstan

Long-Term Foreign- and Local-Currency Issuer Default Ratings
  (IDRs): 'BB', Outlook Stable

Short-Term Foreign- and Local-Currency IDRs: 'B'

Viability Rating: 'bb'

Support Rating: '4'

Support Rating Floor: 'B'

Senior unsecured debt: 'BB'

Kazkommertsbank

Long Term Foreign- and Local-Currency IDRs: 'BB-', Outlook Stable

Short Term Foreign- and Local-Currency IDRs: 'B'

Viability Rating: 'b'

Support Rating: '3'

Support Rating Floor: 'B'

Senior unsecured debt long-term rating: 'BB-'

Senior unsecured debt short-term rating: 'B'

Perpetual debt rating: 'B'



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


ALME LOAN IV: Moody's Assigns (P)B2 Rating to Cl. F-R Notes
-----------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to seven classes of refinancing notes to be issued by ALME
Loan Funding IV B.V.:

-- EUR2,000,000 Class X-R Senior Secured Floating Rate Notes due
    2032, Assigned (P)Aaa (sf)

-- EUR275,900,000 Class A-R Senior Secured Floating Rate Notes
    due 2032, Assigned (P)Aaa (sf)

-- EUR43,600,000 Class B-R Senior Secured Floating Rate Notes
    due 2032, Assigned (P)Aa2 (sf)

-- EUR28,200,000 Class C-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)A2 (sf)

-- EUR24,250,000 Class D-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Baa2 (sf)

-- EUR35,200,000 Class E-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Ba2 (sf)

-- EUR12,650,000 Class F-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2032. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's is
of the opinion that the collateral manager, Apollo Management
International LLP (the "Manager" or "Apollo"), has sufficient
experience and operational capacity and is capable of managing
this CLO.

The Issuer will issue the Refinancing Notes in connection with the
refinancing of the following classes of notes: Class A Notes,
Class B-1 Notes, Class B-2 Notes, Class C Notes, Class D Notes,
Class E Notes and Class F Notes due 2030 (the "Original Notes"),
previously issued on January 14, 2016 (the "Original Closing
Date"). On the Refinancing Date, the Issuer will use the proceeds
from the issuance of the Refinancing Notes to redeem in full its
respective Original Notes. On the Original Closing Date, the
Issuer also issued the EUR44,500,000 Participating Term
Certificates due 2046, which will remain outstanding.

ALME IV is a managed cash flow CLO. The issued notes are
collateralized primarily by broadly syndicated first lien senior
secured corporate loans. At least 90% of the portfolio must
consist of senior secured loans and eligible investments, and up
to 10% of the portfolio may consist of second lien loans,
unsecured loans, mezzanine obligations and high yield bonds.

Apollo manages the CLO. It directs the selection, acquisition, and
disposition of collateral on behalf of the Issuer. After the
reinvestment period, which ends in January 2022, the Manager may
reinvest unscheduled principal payments and proceeds from sales of
credit risk obligations, subject to certain restrictions.

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

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in August 2017.

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017.

The cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders. Therefore,
the expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario and (ii)
the loss derived from the cash flow model in each default scenario
for each tranche. As such, Moody's encompasses the assessment of
stressed scenarios.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par and principal proceeds balance: EUR450,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.50%

Weighted Average Recovery Rate (WARR): 43.0%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local a currency country risk
ceiling (LCC) of A1 or below. As per the portfolio constraints,
exposures to countries with a LCC of A1 or below cannot exceed
10%, with exposures to countries with LCCs of Baa1 to Baa3 further
limited to 5%. Following the effective date, and given these
portfolio constraints and the current sovereign ratings of
eligible countries, the total exposure to countries with a LCC of
A1 or below may not exceed 10% of the total portfolio. As a worst
case scenario, a maximum 5% of the pool would be domiciled in
countries with LCCs of Baa1 to Baa3 while an additional 5% would
be domiciled in countries with LCCs of A1 to A3. The remainder of
the pool will be domiciled in countries which currently have a LCC
of Aa3 and above. Given this portfolio composition, the model was
run with different target par amounts depending on the target
rating of each class of notes as further described in the
methodology. The portfolio haircuts are a function of the exposure
size to countries with local a LCC of A1 or below and the target
ratings of the rated notes, and amount to 0.75% for the Class A
notes, 0.50% for the Class B notes, 0.375% for the Class C notes
and 0% for Classes D, E and F.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the provisional ratings assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case.

Below is a summary of the impact of an increase in default
probability (expressed in terms of WARF level) on the notes (shown
in terms of the number of notch difference versus the current
model output, whereby a negative difference corresponds to higher
expected losses), assuming that all other factors are held equal.

Percentage Change in WARF -- increase of 15% (from 2800 to 3220)

Rating Impact in Rating Notches:

Class X-R Notes: 0

Class A-R Notes: 0

Class B-R Notes: -2

Class C-R Notes: -1

Class D-R Notes: -1

Class E-R Notes: -1

Class F-R Notes: 0

Percentage Change in WARF -- increase of 30% (from 2800 to 3640)

Rating Impact in Rating Notches:

Class X-R Notes: 0

Class A-R Notes: -1

Class B-R Notes: -3

Class C-R Notes: -3

Class D-R Notes: -2

Class E-R Notes: -2

Class F-R Notes: -3


THOHR II: S&P Assigns Preliminary 'B+' CCR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B+' long-term
corporate credit rating to THOHR II N.V., the holding company of
Belgium-based staffing group House of HR, and to House of HR's
financing subsidiary, The House of Finance N.V. The outlook on
both of these entities is stable.

S&P said, "At the same time, we assigned our preliminary 'B+'
issue rating and '4' recovery rating to The House of Finance
N.V.'s proposed EUR600 million senior secured term loan maturing
in 2024 and EUR80 million senior secured RCF, maturing in 2024.
The '4' recovery rating reflects our expectation of average
recovery prospects (30%-50%; rounded estimate: 40%) in the event
of a payment default.

"The final ratings will depend on our receipt and satisfactory
review of all final transaction documentation. Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, we reserve the
right to withdraw or revise our ratings. Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
security, and ranking."

House of HR has agreed to acquire Redmore Group B.V. (Proclus), a
Dutch company offering secondment of professionals and software-
driven resources for IT implementation and tooling for a variety
of financial institutions. House of HR plans to refinance its
existing debt and the acquisition through the issuance of a EUR600
million senior secured facility. As part of the transaction, the
group is also planning to arrange an EUR80 million revolving
credit facility (RCF) that will be undrawn at closing. Pro forma
for recent acquisitions, we forecast House of HR's revenues at
about EUR1.4 billion, with adjusted EBITDA of about EUR150 million
in 2017.

The rating reflects the group's moderate diversification across
several staffing segments, including specialist staffing, general
staffing, and engineering and consulting segments, as well as its
wide customer end-market diversity. S&P said, "We also believe
that market fundamentals for personnel service providers are sound
overall, with positive long-term prospects as companies are
increasingly looking to improve the flexibility of their cost
bases by using temporary staff in periods of increased demand. We
also think that House of HR's strategy of focusing on small and
midsize enterprises and favorable markets with high salaries and
high temp staff penetration should help the group to maintain its
operating margins. We expect adjusted EBITDA margins of more than
10% over 2017-2019, which compares favorably with peers in the
staffing sector. We also note that House of HR has no meaningful
individual customer concentration."

These strengths are somewhat mitigated by House of HR operations
in the highly fragmented and competitive staffing markets in
Belgium, Germany, the Netherlands, and France. Staffing markets
are highly correlated with unemployment levels and deteriorating
business confidence levels can lead to swift and significant
declines of revenues and operating profits, as experienced by
House of HR in economic downturns, when earnings declined as much
as 50%. S&P said, "We also believe that House of HR's general
staffing operations in the German market benefit from relatively
low barriers to entry and the group lacks scale compared with some
of its globally operating general staffing peers, like Adecco and
Manpower. The group had been growing rapidly over recent years,
both organically and through acquisitions, and we believe
integration risks remain related to recently acquired entities."

S&P said, "We consider House of HR to be financial-sponsor-owned
since funds operated by Naxicap will own 64% post transaction,
with the group's founder and management holding the remainder of
shares. We view House of HR's financial risk profile as
aggressive, reflecting the relatively high debt burden of about
4.8x debt to EBITDA at transaction close. We understand that
Naxicap does not intend to increase leverage beyond 5.0x on a
sustained basis and is looking to steadily deleverage over the
coming two years, which is why our financial policy assessment is
"financial sponsor-5." Our base-case scenario anticipates
progressive deleveraging through continued EBITDA growth,
resulting in S&P Global Ratings-adjusted debt to EBITDA of about
4.5x by the end of 2019, in the absence of any additional
significant debt-financed acquisition.

"We calculate the group's pro forma 2017 S&P Global Ratings-
adjusted debt to EBITDA to be about 4.8x pro forma recent
acquisitions and the close of the transaction. Our adjusted debt
calculation includes EUR600 million of term loans, an operating
lease adjustment of EUR75, and non-common equity instruments of
about EUR30 million that we treat as debt. In our EBITDA
calculation, we include reported EBITDA of about EUR130 million
lease rentals of EUR15 million, and EUR5 million related to stock
compensation expenses.

"The financial risk profile is also supported by House of HR's
cash generation ability due to its relatively low capital
expenditure (capex) requirements, running at about 1% of sales,
and moderate working capital requirements. More specifically, we
anticipate reported free operating cash flow (FOCF) of about EUR60
million-EUR70 million in 2018, gradually increasing in subsequent
years.

"The stable outlook reflects our view that House of HR will
maintain its organic growth over the next 12 months as it benefits
from fairly stable business conditions and continued outsourcing
of staffing services. It also incorporates our view that the group
will continue to successfully integrate recent acquisitions while
maintaining stable profitability, allowing it to reduce S&P Global
Ratings-adjusted debt to EBITDA to about 4.5x in 2019, while
maintaining FFO to debt above 12%. Additionally, it reflects our
expectation of a stable debt burden in the absence of large
shareholder returns and significant debt-financed acquisitions.

"We could consider a negative rating action if we saw signs of
weakening profitability or if revenues were to drop significantly
in the event of a macroeconomic downturn, resulting in leverage
significantly above 5.0x and FFO to debt of less than 10% for a
prolonged period. We could also take a negative rating action if
the group undertook significantly larger acquisitions or cash
returns than expected, leading to a significant weakening of
metrics that would likely make us reassess the group's financial
policy.

"In our opinion, the potential for an upgrade is likely to be
driven by a clear commitment to deleveraging for a sustained
period to significantly below 4.5x debt to EBITDA and FFO to debt
of higher than 16%, while maintaining consistent operating
performances with high and stable operating profitability."



===============
P O R T U G A L
===============


HIPOTOTTA NO. 5: S&P Affirms CCC-(sf) Rating on Class F Notes
-------------------------------------------------------------
S&P Global Ratings raised and removed from CreditWatch positive
its credit ratings on HipoTotta No. 5 PLC's class D and E notes.
At the same time, S&P has raised its rating on the class B notes
and affirmed its ratings on the class A2, C, and F.

S&P said, "On Oct. 10, 2017, we placed on CreditWatch positive our
rating on HipoTotta No. 5's class D and E notes following our
Sept. 15, 2017 raising of our unsolicited foreign currency long-
term sovereign rating on the Republic of Portugal.

"The rating actions follow our credit and cash flow analysis of
the most recent transaction information that we have received as
part of our surveillance review cycle. Our analysis reflects the
application of our European residential loans criteria, our
current counterparty criteria, and our structured finance ratings
above the sovereign (RAS) criteria.

"The swap counterparty, Banco Santander S.A. (A-/Stable/A-2), has
not complied with the swap agreement's terms (by either posting
collateral, obtaining a guarantor, or replacing itself) since
becoming an ineligible counterparty. Therefore, our ratings on the
class C, D, E, and F notes are capped by our long-term issuer
credit rating (ICR) on Banco Santander. The class A2 and B notes
have sufficient credit enhancement to withstand the stresses in
the absence of the swap and are therefore not capped by our rating
on Banco Santander. Our ratings on the class A2 and B notes are
capped at 'A (sf)' due to the replacement language in the issuer's
bank account agreement.

"Our ratings in this transaction are constrained by our long-term
rating on Portugal due to the application of our RAS criteria.

"Under our RAS criteria, we applied a hypothetical sovereign
default stress test to determine whether a tranche has sufficient
credit and structural support to withstand a sovereign default and
so repay timely interest and principal by legal final maturity.

"Our RAS criteria designate the country risk sensitivity for
residential mortgage-backed securities (RMBS) as moderate. Under
our RAS criteria, this transaction's notes can therefore be rated
four notches above the sovereign rating, if they have sufficient
credit enhancement to pass a minimum of a severe stress. In
addition, if all six of the conditions in paragraph 42 of the RAS
criteria are met, we can assign ratings in this transaction up to
a maximum of six notches (two additional notches of uplift) above
the sovereign rating, subject to credit enhancement being
sufficient to pass an extreme stress. The class A2 notes can
withstand our extreme RAS analysis stresses and satisfy the
conditions that permit a maximum of six notches of uplift.

"However, our ratings on the class A2 are capped at 'A (sf)' due
to the replacement language in the issuer's bank account
agreement. We have therefore affirmed our 'A (sf)' rating on the
class A2 notes.

"The class B notes can withstand our severe RAS analysis stresses.
Consequently, the class B notes can be rated up to four notches
above our long-term rating on Portugal. We have therefore raised
to 'A (sf)' from 'A- (sf)' our rating on the class B notes.

"Our ratings on the class D and E notes are currently capped by
our long-term rating on the sovereign. Following our recent
upgrade of Portugal, we have performed our RAS analysis and
determined that these tranches remain unable to achieve ratings
higher than that on the sovereign. Therefore, we have raised to
'BBB- (sf)' from 'BB+ (sf)' and removed from CreditWatch positive
our ratings on the class D and E notes.

"Our credit and cash flow analysis indicates that the available
credit enhancement for HipoTotta No. 5's class C and F notes is
commensurate with the currently assigned ratings. In addition, our
rating on the class C notes is capped at our long-term ICR on
Banco Santander as swap counterparty. We have therefore affirmed
our ratings on the class C and F notes."

HipoTotta No. 5 is a Portuguese RMBS transaction, which closed in
March 2007. It securitizes a pool of first-ranking mortgage loans,
which Banco Santander Totta, S.A. originated. The mortgage loans
were granted to prime borrowers mainly located in the Lisbon and
North regions.

RATINGS LIST

  Class              Rating
            To                  From

  HipoTotta No. 5 PLC
  EUR2.01 Billion Mortgage-Backed Floating-Rate Notes
  Rating Raised

  B         A (sf)              A- (sf)

  Ratings Raised And Removed From CreditWatch Positive

  D         BBB- (sf)           BB+ (sf)/Watch Pos
  E         BBB- (sf)           BB+ (sf)/Watch Pos

  Ratings Affirmed

  A2        A (sf)
  C         A- (sf)
  F         CCC- (sf)



=============
R O M A N I A
=============


KAZMUNAYGAS INT'L: S&P Affirms 'B-' CCR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term corporate credit
rating on Romania-based oil refining and marketing company
KazMunayGas International N.V. (KMGI). The outlook remains stable.

S&P said, "The affirmation reflects our expectation of KMGI's
solid operating performance in 2018 and 2019, despite slightly
weakening refining margins. It also reflects our expectation of
improved credit metrics, with expected funds from operations (FFO)
to debt of 20%-25% and positive free operating cash flow
generation. This partially mitigates the refinancing risk that
KMGI faces, as its capital structure remains dominated by the use
of short-term debt.

"We continue to view KMGI's high share of short-term financing in
the capital structure as the key constraining factor for its
credit profile. While we would expect KMGI's local lending banks
to continue to roll over their short-term credit lines, as they
have done regularly in the past few years, we note that previous
financing has been secured while KMGI was part of the NC
KazMunayGas JSC group (KMG). The new joint ownership with CEFC
will be put to the test, in financing terms, with the renewal
process of the US$340 million syndicated loan that matures in
April 2018."

The company achieved a record year in 2016, with reported EBITDA
of US$204 million, thanks to strong volumes and structural
improvements in its two refineries and good growth in the retail
and marketing segment. This trend has continued this year and the
company reported EBITDA of US$180 million in the first nine months
of 2017.

The lack of committed long-term credit lines and relatively modest
cash balances means that the company relies on its own cash
generation to support capital expenditure (capex) spending and any
unforeseen working capital outflows. Weak liquidity constantly
exposes the company to refinancing risk, which constrains the
stand-alone credit profile.

KMGI is Romania's second-largest oil refiner and marketer, with
vertically integrated operations through its trading, fuel
retailing business, and petrochemicals activities. It owns the
largest refinery in Romania and one of the most modern and complex
in the Black Sea region, the Petromidia refinery, with a
processing capacity of over 5 million tons per year. It also owns
a network of around 1,000 fuel stations across Romania, Moldova,
Georgia, and Bulgaria. That said, KMGI's operations are linked to
the output of the Petromidia refinery, so we see asset
concentration and lack of critical size as the key constraining
factors for the company's business risk profile.

S&P said, "We continue to assess the company's financial risk
profile as highly leveraged, even though we note the deleveraging
achieved in 2016 and our expectation for further deleveraging this
year thanks to the expected higher EBITDA. Our base case reflects
an over-the-cycle assessment of financial metrics, which factors
in the inherent volatility of the oil and gas sector. We note the
sizable short-term maturities of KMGI, given the yearly roll-over
practice, and also the maturity in April 2018 of the three-year
syndicate loan that we understand is under negotiation for
renewal. Our base case assumes that the company can maintain its
conservative financial approach, concentrating on improving
operating efficiency and moderate capex to support its retail
segment development.

"Under our base-case assumptions, we expect adjusted EBITDA of
US$190 million-US$210 million in 2017 and US$175 million-US$200
million in 2018, compared with about US$190 million in 2016. This
translates into a debt-to-EBITDA ratio of around 3.5x in 2017 and
3.5-4.0x in 2018, compared with 3.6x in 2016. We expect free
operating cash flow (post capex) to be about US$20 million-US$30
million in each of 2017 and 2018."

The following assumptions underpin S&P's estimates:

-- S&P Global Ratings' oil prices of $55 per barrel (/bbl) for
    the rest of 2017, and in 2018 and 2019.

-- Stable refining volumes where Petromidia benefits from
    continuously high utilization rates. S&P expects a modest
    increase in trading volumes and retail growth.

-- Refining margins remaining flat or slightly weakening in 2018
    compared with 2017.

-- Manageable capex of about US$140 million in 2017, and US$130
    million in 2018, which we understand the company plans to
    finance organically.

-- No large-scale mergers or acquisitions; we expect that the
    company will focus on organic growth and retail segment
    performance.

-- No dividends.

S&P said, "We continue to factor into our base case and issuer
credit rating on KMGI the potential support from NC KazMunayGas
JSC. Even with a 49% stake in the joint venture with CEFC, we
understand there are still strong ties between the two companies:
the KMG Group has maintained its commitment to guarantee KMGI's
US$200 million credit line as well as its crude oil supply
agreement. We will continue to monitor the developments around
KMGI's shareholding, including whether the joint shareholding
structure with CEFC could result in higher or lower support to
KMGI.

"The company has numerous banking lines and informs us that it
will remain compliant with covenants over the longer term. As most
of the lines are uncommitted or with maturities of less than 12
months, we do not consider that any breach in covenants would
necessarily cause greater liquidity risk for the company.

"The stable outlook balances our view of improved operating
performance and lower expected leverage, while some refinancing
risk persists given that currently the vast majority of KMGI's
debt is due to mature in the next 12 months. We view positively
the company's track record in rolling over the maturities that are
structured on a yearly roll-over basis and understand that the
US$340 million syndicated facility will be renewed on similar
terms in first quarter 2018. The current rating assumes that the
liquidity position will not deteriorate further in the next 12
months."

Downward pressure on the 'B-' rating would rather be driven by
liquidity, notably if the company were to increase its reliance on
short-term financing or face challenges with the extension of its
existing short-term lines. S&P said, "We could also lower the
rating if industry conditions or operating performance
deteriorated in general, resulting in debt to EBITDA increasing to
above 5x. We note that the company has a number of ongoing
litigations and that we have not factored any cash payments into
our base case. If material amounts arise, we would have to review
the implications on our base-case cash generation assumption."

S&P said, "A potential upgrade will not require performance above
our current forecast but would instead hinge on stronger
liquidity. It would also require clarity regarding the 51% stake
sale to CEFC and an assessment of the credit quality of CEFC. If
the transaction is realized without negative consequences for KMGI
and current group support (in terms of cross-default, hybrid
loans, guaranteed facilities, and supply crude agreement) is
replaced adequately and in a timely manner, this might trigger the
rating upside."



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


DELOPORTS LLC: S&P Affirms BB- CCR, Outlook Stable
--------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term corporate credit
rating on DeloPorts LLC, a Russian holding company for container
handling, grain terminals, and auxiliary services in the port of
Novorossiysk. The outlook is stable.

S&P said, "The affirmation reflects our expectations that
DeloPort's debt funded capital expenditures (capex) to construct
the new Berth 38, and its generous dividends will temporarily push
up leverage in 2017-2018, despite recent improvements in the
company's operating performance. Still, we expect the company's
leverage will moderate in 2019, as new assets come on stream and
favorable conditions for grain exports prevail."

DeloPorts has continued to benefit this year from improvements in
the Russian container market, which are particularly visible in
the Black Sea basin where DeloPorts operates. It has also had good
conditions for grain exports. S&P said, "We expect that its
container throughput will grow by 18%-20% in 2017. The company's
grain business also continues to expand, with expected growth of
throughput of up to 15% in 2017. Consequently, we project
DeloPort's revenues will grow by 13%-16% this year, despite a
likely contraction in its EBITDA margin to 71%-73% from 75.6% in
2016, due to a stronger ruble that fuels cost inflation. We expect
generally stable performance in 2018, with up to 2% revenue growth
and EBITDA margin in the 70%-72% range. In 2019, we anticipate
accelerated container throughput growth of 15%-20%, owing to the
start of operations at berth 38, resulting in up to 10% revenue
growth and flat EBITDA margins."

S&P said, "The improving performance will not be enough to offset
DeloPort's high cash outflows owing to its planned capex and
dividend payments in 2018, in our opinion. With forecast overall
expenditures of up to $100 million in the next 12 months, the
company continues to expand its NUTEP container terminal, with
construction of the new Berth 38 adding up to 250k 20-foot
equivalent units of handling capacity. It is also extending its
KSK grain terminal, potentially amounting to 1.5 million tons of
fresh capacity. Additionally, we estimate the company will pay up
to $50 million of dividends in 2017 and up to $40 million in 2018,
which will push up its debt. We therefore expect that the
company's leverage will increase temporarily, with debt to EBITDA
of 2.5x-2.7x in 2018, after 1.7x-1.9x in 2017, and funds from
operations (FFO) to debt at 24%-28% in 2018 after 37%-42% in 2017.
In our analysis, we do not net cash from DeloPorts' debt.

"Further out, we forecast that DeloPorts' leverage will come back
down in 2019, with debt to EBITDA at 1.9x-2.1x and FFO to debt at
30%-33%. The decrease will likely primarily follow lower capex as
the company will have finished its container terminal expansion.
We expect Deloports will continue paying high dividends of at
least 50% of net income.

"Additionally, we think Deloports has an aggressive financial
policy and that it could increase its leverage beyond our base-
case forecast. We understand that the company may raise debt to
finance acquisitions, which we do not include in our forecast.
Also, if DeloPorts were to make an aggressive, perhaps debt-
funded, dividend distribution in excess of our base case, its
credit metrics could weaken markedly and its liquidity could
deteriorate.

"Our assessment of DeloPorts continues to be constrained by its
reliance on just two major cargoes -- containers and grains --
which account for over 80% of total revenues. Both cargoes are
prone to significant volume fluctuations, given their links to
economic conditions for containers, and grains facing pricing
pressures and the risk of export restrictions, in the event of
poor harvests. This results in higher volatility in DeloPort's
business than we normally observe at transportation infrastructure
companies.

Additional constraints include the high country risk we see in
Russia, fierce competition, and lower diversification in terms of
cargo mix and customers, compared with its major peer,
Novorossiysk Commercial Sea Port, operating in the same harbor."

On the upside, DeloPorts operates in one of the most important
maritime gateways in Russia, the Black Sea Basin, and has a
strengthening competitive position in a market with high barriers
to entry. DeloPorts' fairly new asset base supports its cost-
efficient business model. The deregulation of the ports industry
in Russia since 2013 has given DeloPorts flexibility to adjust
tariffs in response to market conditions.

S&P said, "The stable outlook on DeloPorts reflects our
expectation that its credit metrics -- debt to EBITDA and FFO to
debt -- will bounce back in 2019, after an expected significant
decrease in 2017-2018, as the company benefits from improving
container and grain volumes and new assets start generating
profits.

"In addition, we expect that DeloPorts will continue to deliver
solid operating performance, reflecting recent improvements in the
Russian container market and a successful 2017 harvest in Russia.
"We also anticipate that the company will maintain its FFO-to-debt
ratio at more than 30% in all years except 2018, when we think
peaking capex and substantial dividend payments could lead to a
temporary decline of the ratio to below 30%. In 2019, the ratio
should bounce back to more than 30%.

"We could lower our ratings on DeloPorts if its FFO-to-debt ratio
were to fall below 30% consistently, to levels significantly below
our base-case forecast, and with limited recovery prospects after
2018. This could result from a capex overrun, higher-than-expected
dividend payouts, or weaker operating results. A downgrade could
also be triggered by an unexpected, aggressive, debt-funded
acquisition or shareholder returns, an unforeseen significant
setback in operating performance, materially weakening credit
measures, or deteriorating liquidity.

"We consider a positive rating action on DeloPorts as unlikely in
the near term, before it completes its planned capital spending.
Rating upside could primarily follow significant improvement in
DeloPorts' business risk, owing to broader diversity of its
business, markedly stronger market positions, and increased market
share in container and grain markets."


PETROPAVLOVSK PLC: Fitch Assigns B- IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has assigned Petropavlovsk PLC a final Long-Term
Issuer Default Rating (IDR) of 'B-' with a Stable Outlook and a
senior unsecured rating of 'B-'/'RR4'. Fitch has also assigned a
final rating of 'B-'/'RR4' to the guaranteed notes issued by
Petropavlovsk 2016 Limited, the group's wholly owned subsidiary.

The final IDR is assigned following a successful refinancing,
after Petropavlovsk issued USD500 million 8.125% notes due 2022
with proceeds used for repayment of nearly all outstanding VTB and
Sberbank loans.

The IDR of 'B-' reflects Petropavlovsk's small scale of
operations, the group's medium-to-high cost position, completion
risks associated with the construction of the Pressure Oxidation
(POX) Hub and production ramp-up. It also factors in the group's
tight liquidity for the next 12 months, with a limited margin for
possible contingencies. The Stable Outlook is driven by the
expected deleveraging, pending the successful POX Hub ramp-up. The
latter would also lead to an improvement in the business profile
through an increase in total gold output and a lower cost
position.

KEY RATING DRIVERS

Tight Liquidity Projected: Petropavlovsk's tight liquidity for the
next 12 months is reflected in lower-than-expected cash holdings
of USD32.7 million at end 1H17, albeit up from USD12.6 million at
December 31, 2016. The group's convertible bonds contain an
incurrence provision of 2.5x (net financial debt/EBITDA) that
effectively prohibits the group from raising a revolving credit
facility (RCF) as long as the convertibles are outstanding. Fitch
conservatively expect positive free cash flow (FCF) in 2017-2018
of around USD40 million, significantly below the company's
forecasts. The group has some limited headroom to cut
discretionary capex and opex by about USD38 million in aggregate
by end-2018. Fitch believe that the liquidity profile will improve
after 2018, when capex decreases to a more stable level and the
benefits of the POX Hub materialise.

Small Russian Gold Producer: Petropavlovsk is a small gold mining
company. The group operates four main mines in the Amur region in
the far east of Russia: Pioneer, Pokrovskiy, Malomir and Albyn. In
2016, the total gold production was 416Koz, which is much lower
than its Russian gold mining peers PJSC Polyus (BB-/Positive;
1,915Koz) and Nord Gold S.E. (Nordgold, BB-/Positive; 869Koz). In
9M17, Petropavlovsk's total gold production rose 13% to 336Koz
compared with 9M16. The group affirmed its production forecast for
2017 of 420Koz-460Koz. Fitch expect an increase in Petropavlovsk's
production in 2019 to around 450Koz, albeit lower than
management's expectations of 550Koz, once the POX Hub is in
operation as the group starts processing refractory ore. This
should lead to a moderate improvement in the group's business
profile.

POX Hub Drives Improvement: The group is constructing the POX Hub
at Pokrovskiy to process refractory gold ore, which accounted for
around 50% of its reserve base at end-2016. As of 12 September
2017, three-quarters of the POX Hub construction was complete. POX
Hub commissioning is scheduled to start from 4Q18, with ramp-up
throughout 2019. Refractory ore is harder and more costly to
process than non-refractory ore. It contains sulphide minerals,
which encapsulate gold particles, making it difficult for the
leach solution to reach the gold. Therefore, oxidation of sulphide
minerals is necessary to recover gold. While the technology is
more expensive, Petropavlovsk will benefit from the increase in
production scale.

A successful implementation of the POX Hub project drives Fitch
projections of the improvement in the group's financials and hence
any delay in its construction and commissioning would be credit-
negative and would likely lead to negative rating action.

Expected Deleveraging by 2020: At end-2016, the group reported
funds from operations (FFO)-adjusted gross leverage of 5.5x,
including the off-balance sheet guarantee. Fitch expect
Petropavlovsk's leverage to improve from 2018, as the POX Hub
starts to add to the group's bottom line, to around 2.7x by end-
2019, a level that is more appropriate for a 'B'-category rated
company with Petropavlovsk's business profile.

Fitch expects a moderate decrease in leverage in 2017-2018 despite
high annual capex of around USD100 million. This de-leveraging is
driven by an increase in EBITDA due to lower total cash costs
(TCC) and a decrease in off-balance sheet debt, i.e., the gradual
repayment of the Industrial and Commercial Bank of China Limited
(ICBC) project finance facility. Fitch expect a steep reduction in
leverage from end-2019, as Fitch project an increase in production
from Malomir, which outweighs an output decline from Albyn, and
more normalised annual capex levels at around USD33 million, on
average.

TCC Expected to Decline: The group has improved its historically
high TCC, which declined in 2016 to USD660/oz, from USD749/oz in
2015 and USD865/oz in 2014. Nonetheless, Petropavlovsk's TCC are
high in comparison to those of Polyus (USD389/oz) and Nordgold
(USD648/oz). The group's TCC guidance for 2017 is USD700/oz. As
the POX Hub ramps up, Fitch expect TCC to decline to slightly
above USD500/oz in 2020, a level more in line with peers. This
expected cost decline is mainly due to lower TCC at Malomir, as a
result of the benefits of the extra volumes following the
commissioning of the POX Hub, and no production at 2018 from the
Pokrovskiy mine, which has high TCC (2016: USD878/oz, 1H17:
USD1,286/oz).

IRC Guarantee Increases Leverage: Petropavlovsk guarantees the
USD234 million project finance facility from ICBC (A/Stable) drawn
by IRC Limited, the group's associate listed on the Hong Kong
stock exchange. Petropavlovsk's shareholding in IRC is 31.1%. The
loan proceeds were used to fund the construction of IRC's Kimkan
and Sutara iron ore mine (K&S) located in the Russian far east.
The mine began commissioning in 3Q16 and its ramp-up continues
with near full capacity expected by end-2017.

Fitch adjusted Petropavlovsk's debt to incorporate the guarantee.
At full capacity, IRC expects K&S mine to produce 3.2 million
tonnes per annum of concentrate, which should be enough to cover
loan repayments in 2018 and 2019 at iron ore prices of
USD45/tonne. Fitch projections assume that IRC will be able to
meet the debt repayments, which start in 2018, and therefore the
amount of the guarantee decreases by USD60 million each in 2018
and in 2019 and USD51 million in 2020.

Corporate Governance Changes: Following the AGM in June 2017, the
board now has a majority of independent directors with four out of
six seats including the chairman. Although the group continues to
look for a permanent CEO, Fitch do not expect a significant change
in its strategy, with its focus remaining on the successful
completion and operation of the POX Hub project.

DERIVATION SUMMARY

Petropavlovsk is smaller in scale and asset diversification, has
higher TCC and a weaker financial profile than its Russian gold
mining peers PJSC Polyus and Nord Gold S.E. Fitch expect the
completion and a successful ramp-up of the POX Hub will help
Petropavlovsk partially close the gap with Polyus and Nordgold.

Following the USD500 million notes placement in November 2017,
Petropavlovsk's liquidity remains weak and trails that of gold
mining peers and that of KOKS (B/Stable).
No country ceiling, parent/subsidiary or operating environment
aspects affect the rating.

KEY ASSUMPTIONS

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

- Fitch gold price deck of USD1,200/oz in 2017-2020;
- Gold hedges for above 600Koz at around USD1,250/oz in 2017-
   2019 (at September 30, 2017 contracts for 463Koz were
   outstanding);
- TCC decrease by 20% in 2017-2020;
- Capex of around USD110 million p.a. in 2017-2018 and of around
   USD33 million on average p.a. after 2018; and
- No dividend payments.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- FFO-adjusted gross leverage remaining sustainably below 4x
   (2016: 5.5x);
- Successful completion of POX Hub in line with plans; and
- Improved liquidity over the next 12 months.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- POX Hub completion is delayed by 12 months or longer;
- FFO-adjusted gross leverage remaining above 4.5x on a
   sustained basis ;
- EBITDA margin below 30% on a continuous basis (2016: 36%); and
- Liquidity becoming unsustainable.

LIQUIDITY

Tight Liquidity, Improved Maturities: Post-refinancing,
Petropavlovsk's debt maturity profile improved dramatically but
liquidity still remains tight. The group's USD100 million
convertible bond due in 2020 is the main outstanding debt. Of
USD14 million in remaining bank debt, the group plans to repay
USD10 million in December 2017. Fitch conservatively forecast that
the group's cash position will stay under USD50 million, at least
until end-2018.



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


CAIXABANK PYMES 9: Moody's Assigns Caa3 Rating to EUR222MM Notes
----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the debts issued by CAIXABANK PYMES 9, FONDO DE
TITULIZACION:

-- EUR1,628M Series A Notes due March 2053, Definitive Rating
    Assigned A1 (sf)

-- EUR222M Series B Notes due March 2053, Definitive Rating
    Assigned Caa3 (sf)

The transaction is a static cash securitisation of secured and
unsecured loans and draw-downs under secured and unsecured credit
lines granted by CaixaBank, S.A. ("CaixaBank", Long Term Deposit
Rating: Baa2 Not on Watch /Short Term Deposit Rating: P-2 Not on
Watch) to small and medium-sized enterprises (SMEs) and self-
employed individuals located in Spain.

RATINGS RATIONALE

The ratings of the notes are primarily based on the analysis of
the credit quality of the underlying portfolio, the structural
integrity of the transaction, the roles of external counterparties
and the protection provided by credit enhancement.

In Moody's view, the strong credit positive features of this deal
include, among others: (i) performance of CaixaBank originated
transactions has been better than the average observed in the
Spanish market; (ii) granular and diversified pool across industry
sectors; and (iii) refinanced and restructured assets have been
excluded from the pool. However, the transaction also presents
challenging features, such as: (i) exposure to the construction
and building sector at around 17.2% of the pool volume, which
includes a 7.2% exposure to real estate developers, in terms of
Moody's industry classification; (ii) strong linkage to CaixaBank
as it holds several roles in the transaction (originator, servicer
and accounts bank); and (iii) no interest rate hedge mechanism in
place.

Key collateral assumptions:

Mean default rate: Moody's assumed a mean default rate of 9.4%
over a weighted average life of 3.7 years (equivalent to a Ba3
proxy rating as per Moody's Idealized Default Rates). This
assumption is based on: (1) the available historical vintage data,
(2) the performance of the previous transactions originated by
CaixaBank and (3) the characteristics of the loan-by-loan
portfolio information. Moody's took also into account the current
economic environment and its potential impact on the portfolio's
future performance, as well as industry outlooks or past observed
cyclicality of sector-specific delinquency and default rates.

Default rate volatility: Moody's assumed a coefficient of
variation (i.e. the ratio of standard deviation over the mean
default rate explained above) of 45.3%, as a result of the
analysis of the portfolio concentrations in terms of single
obligors and industry sectors.

Recovery rate: Moody's assumed a stochastic recovery rate with a
38% mean, primarily based on the characteristics of the
collateral-specific loan-by-loan portfolio information,
complemented by the available historical vintage data.

Portfolio credit enhancement: the aforementioned assumptions
correspond to a portfolio credit enhancement of 18.7%, that takes
into account the current local currency country risk ceiling (LCC)
for Spain of Aa2.

As of October, the audited provisional asset pool of underlying
assets was composed of a portfolio of 36,785 contracts amounting
to EUR1,937.4 million. The top industry sector in the pool, in
terms of Moody's industry classification, is Beverage, Food &
Tobacco (25%). The top borrower group represents 1.7% of the
portfolio and the effective number of obligors is 1,147. The
assets were originated mainly between 2016 and 2017 and have a
weighted average seasoning of 0.9 years and a weighted average
remaining term of 7.6 years. The interest rate is floating for
58.7% of the pool while the remaining part of the pool bears a
fixed interest rate. The weighted average spread on the floating
portion is 2%, while the weighted average interest on the fixed
portion is 3%. Geographically, the pool is concentrated mostly in
the regions of Catalonia (26%) and Valencia (13.7%). At closing,
assets in arrears up to 30 days will not exceed 5% of the pool
balance, while assets in arrears between 30 and 90 days will be
limited to up to 1% of the pool balance and assets in arrears for
more than 90 days will be excluded from the final pool.

Around 14.9% of the portfolio is secured by mortgages over
different types of properties.

Key transaction structure features:

Reserve fund: The transaction benefits from a EUR84 million
reserve fund, equivalent to 4.55% of the balance of the Series A
and Series B notes at closing. The reserve fund provides both
credit and liquidity protection to the notes.

Counterparty risk analysis:

CaixaBank acts as servicer of the loans for the Issuer, while
CaixaBank Titulizacion S.G.F.T., S.A. (not rated) is the
management company (Gestora) of the transaction.

All of the payments under the assets in the securitised pool are
paid into the collection account at CaixaBank. There is a daily
sweep of the funds held in the collection account into the Issuer
account. The Issuer account is held at CaixaBank with a transfer
requirement if the rating of the account bank falls below Ba2.
Moody's has taken into account the commingling risk in its
analysis.

Stress scenarios:

Moody's also tested other sets of assumptions under its Parameter
Sensitivities analysis. For instance, if the assumed default rate
of 9.4% used in determining the initial rating was changed to
12.2% and the recovery rate of 38% was changed to 28%, the model-
indicated rating for Series A and Series B of A1 (sf) and Caa3
(sf) would be Baa2 (sf) and Caa3 (sf) respectively. For more
details, please refer to the full Parameter Sensitivity analysis
included in the New Issue Report of this transaction.

Principal Methodology:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in August 2017.

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

The notes' ratings are sensitive to the performance of the
underlying portfolio, which in turn depends on economic and credit
conditions that may change. The evolution of the associated
counterparties risk, the level of credit enhancement and Spain's
country risk could also impact the notes' ratings.

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



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


ERPE MIDCO: S&P Assigns 'B' Corp Credit Rating, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings said that it had assigned its 'B' long-term
corporate credit rating to Erpe Midco Ltd., parent company of
Praesidiad. The outlook is stable.

S&P said, "At the same time, we assigned a 'B' issue rating to the
group's EUR320 million term loan B, issued by the core subsidiary
Erpe Bidco Ltd. The recovery rating is '4', indicating our
expectation of average recovery (30%-50%; rounded estimate: 40%)
in the event of a payment default.

"The ratings are at the same level as our 'B' preliminary ratings
assigned on Sept. 11, 2017, because the final documentation is in
line with the preliminary documentation."

Private equity group Carlyle has acquired 100% of the shares in
Belgian-based perimeter protection provider Praesidiad from CVC
Capital Partners for an enterprise value of EUR660 million. The
group has issued a seven-year EUR320 million term loan B,
comprising EUR290 million euro denominated with a EURIBOR+400
basis points (bps) margin and EUR30 million U.S. dollar
denominated with a LIBOR+450bps margin, to finance the acquisition
and transaction-related costs, and to repay all of its outstanding
debt. The group has also issued a EUR80 million revolving credit
facility (RCF), which was undrawn at the transaction's close.

Praesidiad has a leading position in its niche within the global
perimeter protection market, providing perimeter security
solutions and safety barriers for military and industry, and
manufacturing metal fences for general purposes. S&P views the
group's business risk as weak and its financial risk profile as
highly leveraged after the acquisition by Carlyle and the related
refinancing.

Praesidiad remains smaller than global capital goods peers that
operate across many markets and sectors. S&P said, "We forecast
revenue of about EUR450 million and EBITDA of EUR70 million in
2017. The group has two main business lines, baseline and high
security. We see the baseline general purpose fencing as having
limited product differentiation, relatively low profitability, and
limited growth in end markets. This weakness is to an extent
offset by the recent restructuring of the baseline manufacturing
activities, which has significantly reduced the cost base related
to the group's manufacturing footprint."

S&P said, "We view the group's transformation over the past 18
months as positive for the group's credit profile, with the
acquisition of HESCO, an increasing shift to high security, and
continued business repositioning. The group has also diversified
its end markets for its high security segment -- previously
military and oil and gas -- and is growing in the energy sector
and in new-end markets like data centers. HESCO, which has a
dominant position in military perimeter security, contributes in
terms of diversification, complementary product offering, strong
brand recognition among the targeted client base, and superior
margins. We further view positively the group's strategic focus in
developing the business toward providing full perimeter security
solutions for military and industrial clients, with significantly
higher value-added for the end customer, as well as higher
profitability and growth potential."

Praesidiad is increasingly shifting its business focus to the high
security segment, which represented about 60% of group EBITDA in
2016. The group enjoys a stronger market position and higher
margins in this segment, and S&P expects the shift will continue
to improve the group's profitability over the coming years. Demand
for high security solutions is growing, strongly driven by
international or national events requiring solutions to protect
individuals and objects. Although this segment is to some extent
event-driven, it adds stability to the group as it is less
dependent on economic cycles than the baseline products.
The major constraints to Praesidiad's financial risk profile are
the group's aggressive financial policy, owing to its private
equity ownership and its highly leveraged capital structure. S&P
said, "We forecast adjusted debt to EBITDA of about 5x in 2018-
2019. We add about EUR70 million of debt adjustments related to
factoring and operating-lease obligations. The group's financial
risks are mitigated by its strong cash conversion profile,
benefitting from the low capital intensity of the business, with
replacement capital expenditures estimated at only about 2%-3% of
sales, and moderate working capital needs. We therefore expect the
group to generate positive free operating cash flows (FOCF) of
above EUR20 million per year. We also note the group's relatively
strong funds from operations (FFO) cash interest coverage for the
rating, which we forecast will remain above 4x over 2018-2019."

S&P said, "The stable outlook reflects our view that Praesidiad
will benefit from its recent cost optimization and be able to
continue the shift toward high security, thereby further improving
profitability. We anticipate that the group will gradually
deleverage and continue to generate positive FOCF. We expect
adjusted FFO cash interest coverage to remain above 2.5x.

"We could lower the rating if the group failed to sustain its
improved operating performance, for example was not able to
achieve higher margins and cash flow generation, or continued to
incur material restructuring costs. Downward pressure could also
arise through higher volatility of cash flows than expected, or
debt-financed acquisitions that led to higher leverage and weaker
coverage ratios, in particular FFO cash interest coverage below
2.5x.

"We view rating upside as remote over our outlook horizon of 12
months, but we could consider raising the rating if Praesidiad
demonstrated solid growth in revenue and margins through
successfully growing within the high security segment. An upgrade
would also require credit metrics in line with an aggressive
financial risk profile category, with debt to EBITDA comfortably
and sustainably below 5x. An upgrade would also be contingent on
our view that any improvement would be supported by a conservative
financial policy."


MONARCH AIRLINES: Wizz Air Secures Luton Airport Slots
------------------------------------------------------
Rahul B at Reuters reports that budget airline Wizz Air said it
would fly two more aircraft from London's Luton airport after
securing take-off and landing slots there from failed carrier
Monarch Airlines.

Wizz, listed in London but with the majority of its operations
focused on Europe, said it would increase its fleet at Luton by
two aircraft to total seven and pushing up its capacity at the
airport by 18%, Reuters relates.

EasyJet, Wizz and Norwegian had expressed their interest in
acquiring Monarch's slots at London's Luton and Gatwick airports,
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.


PALMER & HARVEY: Collapse Won't Lead to Shortage of Cigarettes
--------------------------------------------------------------
James Davey at Reuters reports that Britain's major supermarkets
sought to reassure smokers on Nov. 29 that the collapse of Palmer
& Harvey (P&H), the UK's biggest tobacco distributor, would not
lead to shortages of cigarettes.

P&H, which also delivers food and drink to supermarkets and
convenience stores, went into administration on Nov. 28 after
running out of cash, raising the possibility of tobacco shortages
across the UK, Reuters relates.

However, Tesco and Sainsbury's, both said they had set in train
contingency plans to ensure their stores were stocked with
sufficient tobacco products, Reuters notes.

According to Reuters, analysts said the stores of Britain's major
retailers would typically hold a few days tobacco stock.  They
said that as P&H had been teetering on the brink of collapse for
several months the major retailers would have been talking to the
big tobacco companies to work out the logistics of maintaining
supplies, Reuters relays.

P&H's collapse would, however, cause problems for some smaller
convenience store operators, Reuters discloses.

Analysts at Peel Hunt, as cited by Reuters, said nearly half of
the 1,650 stores in the McColl's chain were supplied by P&H.


PINEWOOD GROUP: Moody's Assigns Ba2 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service has assigned a Ba2 first-time corporate
family rating (CFR) to Pinewood Group Limited (Pinewood), a
private UK commercial real estate company that primarily rents
space for film and television production. At the same time,
Moody's assigned a Ba2 rating to the planned GBP240 million senior
secured notes issued by Pinewood Finco Plc and guaranteed by
Pinewood. The outlook on the ratings is stable. The ratings assume
the successful placement of the GBP240 million senior secured
notes.

"Pinewoods Ba2 rating reflects its dominant global position as a
provider of world class facilities for filming big budget movies
and the strong international demand for its offering that will
sustain good occupancy and rental growth", says Ramzi Kattan,
Moody's Vice President -- Senior Analyst and lead analyst for
Pinewood.

RATINGS RATIONALE

Pinewood Group Limited's (Pinewood) rating reflects its leading
global position as a provider of large-scale filming facilities
for movies typically with a budget of more than USD100 million.
Strong demand for the company's facilities from major US studios
with strong credit standing will sustain cash flows, occupancy,
and rental growth. Furthermore, demand for the company's
facilities is not correlated to economic cycles and is unaffected
by the uncertainty surrounding Brexit. The company's iconic
history hosting films since the 1930s, long-established
relationships with all the major production companies, and its
well-established track record as a reliable place to film Oscar-
winning movies provide a high-barrier competitive advantage that
is reflected in its circa 30% global market share of blockbuster
productions. The company's global competitive position is
supported by long-standing UK tax incentives for film making, and
the availability of a specialised talent pool near London.

Counterbalancing these strengths are the highly specialised nature
of the company's real estate assets and the need to regularly roll
over the typically 8-12 month rental agreements forcing a high
dependence on attracting the 20-30 or so annual blockbuster films
usually produced by the major US studios. Asset concentration in
two single sites and relatively high exposure to The Walt Disney
Company (A2 stable) is a weakness. A planned development programme
for the expansion of Phase 2 of Pinewood East (c.240 thousand
square feet) places demand on cash and temporarily increases debt-
to-EBITDA to 6.5x in 2018 until the assets under development start
generating income from 2019 onwards. Potential long-term risks
include a shift in the demand for media content away from big
budget movies and an erosion of London's global position as a
destination for making big budget films.

The Ba2 rating assigned to the senior secured notes, by far the
largest piece of debt in the capital structure, is in line with
Pinewood's corporate family rating (CFR). The company intends to
use proceeds from the notes to refinance all its GBP98 million of
existing debt, make a GBP122 million on-loan to its immediate
parent (which will use the proceeds to fully repay GBP55 million
of third-party mezzanine debt, to repay shareholder loans and to
make certain amounts available to shareholders), to pay for fees
and to use the remainder for general corporate purposes including
executing the various growth initiatives in the business plan. The
notes will be issued by Pinewood Finco Plc, and benefit from fixed
charge over the company's two main freehold property sites near
London that were externally valued at GBP605 million in October
2017 but are carried at their historic gross cost of GBP250
million on the company's balance sheet. The ratings reflect the
good recovery for bondholders backed by the value of the company's
property holdings. The planned secured bonds will be the company's
only outstanding debt, except for a GBP50 million initially
undrawn revolving credit facility that shares the same security
but ranks ahead and super senior to the secured bonds in an
enforcement scenario. The bonds benefit from a 5.5x senior secured
net debt incurrence and a net leverage test set at 4.75x that
restricts distributions.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company
will continue to generate stable cash flows and maintain adequate
liquidity while keeping good occupancy levels and a balanced
growth strategy. The outlook assumes that London will maintain its
global attractiveness as a destination for big budget productions.

FACTORS THAT COULD LEAD TO AN UPGRADE

* Continuing to grow in scale and diversification and increasing
the proportion of longer term contracts with the major studios
from its current level, and building a track record of executing
on its business plans

* Moody's-adjusted net debt/EBITDA is sustained below 5x from
Moody's expected 5.4x-6.4x range over the next two years, with a
commitment to adhere to financial policies that sustain the lower
leverage

* Moody's-adjusted fixed charge coverage ratio towards 4x

FACTORS THAT COULD LEAD TO AN DOWNGRADE

* Moody's-adjusted net debt/EBITDA is sustained above 6.5x

* Moody's-adjusted Fixed charge coverage ratio is below 3x for
prolonged periods

* If the company increases its development activities beyond
Moody's current expectations such that the committed development
pipeline is materially above 15% of the overall property market
value

* If Moody's-adjusted ratio of gross debt / total assets (on a
historic cost basis currently about GBP350 million) does not fall
below 60% after the completion of the development programme

Company Profile

Pinewood Group Limited owns, rents, and develops large-scale
filming facilities set over 330 acres with 1.9 million square foot
of space spread across 36 stages, three HD TV studios, workshops,
offices, and 40 acres of backlot (outdoor) space. More than 90% of
the company's GBP84 million in annual revenues and GBP41 million
of EBITDA is generated from its two main campuses, Pinewood and
Shepperton Studios, near London.

Pinewood is a private company owned since October 2016 by PW Real
Estate Fund III which has EUR1.5 billion of equity commitments and
an investment horizon of up to 2026. The fund is advised by
Aermont Capital, an independent asset management business focused
on real estate investment activities.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.


QFSL CLEANING: SFP Completes Sale of Business, 150 Jobs Saved
-------------------------------------------------------------
Herpreet Kaur Grewal at FM World reports that the business and
assets of QFSL Cleaning UK Limited, a financially troubled
cleaning company, have been sold -- saving all 150 employees'
positions in the process.

Nationwide insolvency practitioner, SFP, completed the sale of the
company, which was established in 2001 and provides a range of
facilities management services but primarily contract cleaning to
public and private sector clients across Tyneside, Teesside,
Sheffield, Manchester, Liverpool, Staffordshire, Leicester and
London, FM World relates.

QFSL entered into a Company Voluntary Arrangement (CVA) in 2015
following previous financial difficulties as a result of its cash
flow, FM World recounts.

According to FM World, despite the company complying to the CVA
for over two years, cash flow difficulties (compounded by
customers not settling debts in line with the payment terms)
eventually meant that the company struggled to meet its
commitments and defaulted on the terms of the CVA, which resulted
in it being warned about the prospect of being issued with "a
winding up petition".

SFP's Simon Plant and Daniel Plant were appointed as Joint
Administrators of the Company on October 31, 2017, FM World
discloses.  While carrying out marketing and negotiations for the
sale of the business, SFP continued to trade it, FM World notes.
A sale of the business was concluded on November 3 to QFSL (Hull)
Limited, FM World relays.

Following the sale, all staff have transferred to the purchaser
via TUPE, FM World states.


THOMAS COOK: Fitch Rates EUR400MM Unsec. Notes Due 2023 BB-(EXP)
----------------------------------------------------------------
Fitch Ratings has assigned Thomas Cook Finance 2 Ltd's planned
EUR400 million senior unsecured notes due 2023 an expected senior
unsecured rating of 'BB-(EXP)'/'RR3'. The final rating is
contingent upon the receipt of final documents conforming to
information already received by Fitch.

Proceeds are likely to be used for the early redemption of Thomas
Cook Group's (TCG; B+/Stable Outlook) notes due in 2021. The
planned notes will be unsecured, ranking pari-passu to all
existing and future unsecured indebtedness of the issuer that is
not subordinated to the notes. The new bonds will be guaranteed by
subsidiaries representing 97% of group EBITDAR and 94% of total
assets (excluding goodwill) respectively. Fitch expect slightly
above-average recovery prospects for unsecured bond holders in the
event of default, resulting in a 'BB-(EXP)' rating for the planned
bond.

KEY RATING DRIVERS

More Robust Business Model: Fitch expects TCG to improve its EBIT
margin towards 4% on a sustained basis by the financial year
ending September 2018 (FY18), reaching 4.5% by FY20. This is due
to improved profits in continental Europe and a turnaround at
Condor in FY17 as well as some benefits from the New Operating
Model (NUMO), mitigating some weakening in the UK operations. Such
profit margin would be comparable to pre-2008 levels (4.2%),
despite competition from other tour operators (some online).

The improvement is due to continuing efforts by TCG to strengthen
its business profile, cut costs, improve its product offering and
diversify its customer base, resulting in enhanced
competitiveness. The group is also expanding geographically under
its partnership with Fosun into China.

Increasing Resilience: TCG benefits from a strong and trusted
brand and is the world's second-largest tour operator. The ratings
reflect the high risk inherent in the tour operator sector, but
the group has consistently demonstrated its flexibility in coping
with external shocks and strong competition.

Brexit Uncertainty Mitigated by Diversification: TCG has also
demonstrated revenue resilience since the UK's vote to leave the
EU, with bookings continuing to grow. Some uncertainties regarding
future demand remain, but reported like-for-like (LfL) sales
continued to increase by 6.5% in the UK during FY17. However, this
growth was negatively impacted by higher costs, resulting in a
large drop in UK gross margins, and EBIT in the UK business
falling by GBP33 million in FY17.

TCG's diversity of end-destinations has been a differentiating
factor, with some customers now buying more "value" options, as
seen with a return to growth for Turkey and Egypt. It has
increased its diversification of source markets while the UK
business contributes now only about one third to the group's total
operating profit. Given that TCG does not hedge profits in euros
and Swedish krona, the group's profit can benefit from the
depreciation of the pound given roughly two-thirds of revenue is
earned elsewhere.

Condor Turnaround Materialising: Management announced an action
plan at the end of FY16 to turn around the German airlines
business, and its benefits started to be seen in in the second
half of FY17, showing a GBP24 million improvement in underlying
EBIT on the previous year. The group has benefited from the
difficult operating environment for other airlines in Germany,
reducing capacity in this market. However, Fitch remain cautious
on the future profitability of this division, and continue to
forecast EBIT to remain below historical levels over the next
three years

In addition, the other airlines operated by the group are
performing reasonably well as they benefit from a much larger
proportion of seats loaded by TCG's tour operator business.
Overall in FY17 the group's airline EBIT improved by GBP34
million, mainly driven by the Condor turnaround.

Exposure to External Risks: As a tour operator, TCG's business
remains vulnerable to a high level of risks and events, most
notably geopolitical events, macroeconomic pressure and changing
weather patterns. These underlying risks are reflected in the 'B'
category rating. Fitch expect TCG to continue to increase its
flexibility to respond to such developments, which together with
increased diversification of source markets and destinations,
should help mitigate their impact, underlining the improvement in
the business risk profile.

Steady Cash-Flow Generation: Fitch expect funds from operations
(FFO) as a percentage of revenue to improve to 4.6% by FY19,
recovering after past one-off and other costs associated with the
NUMO programme as well as lower interest costs due to ongoing
balance sheet management. Management is introducing a modest
dividend policy linked to earnings performance. However, Fitch
expect its free cash flow (FCF) margin to remain positive, growing
towards 2% of revenue over the next three years, having averaged
just over 1% between 2013 and 2016. TCG's FCF capability is above
the 'B' rating median for peers and strong relative to airline
peers'.

High Seasonality: Working capital is highly seasonal and typically
increases in the first quarter of the company's financial year
(between October and December) when TCG pays its hotels and other
suppliers after the busy summer season. Given the September year-
end, cash balances typically build up during the third and fourth
quarters and are paid out in the first quarter of the following
financial year.

Commitment to Deleveraging: Fitch forecasts that FFO adjusted
gross leverage will fall below 5.0x in FY19 (from 5.5x at FYE17).
In addition, TCG's deleveraging capacity benefits from the group's
strong FCF-generating ability and management's focus on
maintaining a more conservative balance sheet policy.

DERIVATION SUMMARY

TCG is the second-largest tour operator in the world, behind TUI
AG based on revenue. It is less geographically diverse than TUI,
with group EBITDA margin (6.1% in FY17) below TUI's (7.9% in
FY16), due to TUI having a more diverse product base including
cruise ships. TCG's FFO-adjusted gross leverage is also slightly
higher than TUI's. TCG's operating margin is lower than Expedia
Inc's (BBB-/Stable) or hotel operators'.

Moreover, TCG's business risk is higher than an internet or a
hotel operator's due to the necessity to efficiently manage its
cost base (fuel costs, FX because of its own fleet of aircraft)
and seasonality during the year. However, TCG's business risk is
much lower than airline companies' due to a flexible model (more
asset-light than an airline company, flexibility in reducing
capacity, re-routing customers and a multi-channel operator).

KEY ASSUMPTIONS

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

- Low single digit like-for-like growth from FY18 onwards;
- EBIT margin improving towards 4.5% in FY20;
- Capex about GBP200 million per annum;
- Cash outflows from dividends continuing annually, targeting
   roughly 30% of profits after tax; and
- FCF margin improving towards 2% by 2020.

Recovery Assumptions:

- Fitch recovery analysis assumes that TCG would be treated as a
   going concern in a restructuring and that the company would be
   reorganised rather than liquidated. Fitch have assumed a 10%
   administrative claim.

- TCG's going-concern EBITDA is based on 2017 EBITDA of EUR552
   million. Given the going concern assumption, Fitch deduct the
   present value of finance leases payable at FYE17 of GBP39
   million as well as interest payable of GBP16 million.

- After these deductions and implying a stressed discount, Fitch
   arrive at an estimated post-restructuring EBITDA available to
   creditors of EUR326 million.

- Fitch then apply a conservative distressed enterprise value
   (EV)/EBITDA multiple of 4.5x, resulting in an EV of GBP1,467
   million.

- In terms of distribution of value, unsecured debtholders
   (including bonds and pension obligations) would recover 59% in
   the event of default consistent with a Recovery Rating 'RR3'
   and an instrument rating of 'BB-', one notch above TCG's IDR.
   In this analysis, Fitch assume that the full amount under the
   group's revolving credit facility (RCF) will be fully drawn.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- Continued improvements in the business model, and profit
   resilience resulting in EBIT margin remaining above 5% on a
   sustained basis, and continuing positive FCF margin.

- Maintenance of conservative capital allocation policy reflected
   in FFO lease-adjusted gross leverage (including additional
   GBP200 million RCF drawing) falling consistently below 4.0x
   (FY17: 5.5x).

- A reduction in overall interest expenses and enhanced
   profitability leading to FFO fixed charge coverage rising to
   above 2.5x (FY17: 1.6x) on a sustained basis.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- Competitive pressures or deterioration in airline profitability
   resulting in EBIT margins remaining continually below 4%.

- FFO-adjusted gross leverage remaining above 5.0x on a sustained
   basis.

- Weakening financial flexibility measured as FFO fixed charge
   cover staying below 2.0x on a sustained basis or liquidity
   headroom below GBP250 million.

LIQUIDITY

Adequate Liquidity: At FYE17, TCG had sufficient liquidity,
comprising GBP374 million of readily available cash (Fitch views
GBP1 billion as restricted for seasonal working-capital purposes,
and also excludes GBP28 million for cash held in escrow accounts
and at the group's captive insurance companies). At the time of
issuance, Fitch expect TCG will have roughly GBP485 million
available undrawn under its RCF, comfortably above the minimum
threshold of GBP250 million that Fitch expects TCG to maintain at
any given time. Following the redemption of the 2021 notes, the
next material debt maturity is the EUR750 million notes due in
2022, and Fitch expect refinancing risk to be manageable.


WILMSLOW LEISURE: Intends to Permanently Close Club Following CVA
-----------------------------------------------------------------
Lisa Reeves at Wilmslow.co.uk reports that Wilmslow Leisure
Limited, operators of the energie Fitness Club at Summerfields
Village, on Nov. 29 announced to club members their intention to
permanently close the club.

According to Wilmslow.co.uk, members have been given 30 days'
notice that the club will close its doors for the last time on New
Year's Eve.

Wilmslow Leisure filed a Company Voluntary Arrangement, which took
effect in April 2017, Wilmslow.co.uk recounts.

In June 2017, Lidl confirmed their plans to replace the existing
store at Summerfields Village Centre with a new store on the
adjacent land, currently occupied by the energi Fitness Club,
Wilmslow.co.uk relates.

The discount retailer has agreed a deal to purchase the property,
which is currently occupied by energi, from Emersons,
Wilmslow.co.uk discloses.  If planning permission is approved, the
building will be demolished to build a new store which is nearly
50% bigger, Wilmslow.co.uk notes.



===============
X X X X X X X X
===============


* EU Commission Proposes to Extend SRB Chair's Mandate
------------------------------------------------------
Francesco Guarascio at Reuters reports that the European
Commission proposed on Nov. 29 to extend for five years the
mandate of Elke Koenig, the German head of the European Union's
body in charge of disposing of failing banks.

Mr. Koenig, who has chaired the Single Resolution Board (SRB)
since its creation in 2014, currently has a three-year mandate
that expires in December, Reuters discloses.

The Commission's proposal needs to be confirmed by the European
Parliament, Reuters notes.  Lawmakers plan to hold a hearing with
Koenig on Dec. 4, Reuters relays, citing a draft agenda of the
assembly's economic committee.

On Dec. 4, the Eurogroup of euro zone finance ministers is
expected to appoint a new chair as the term of Jeroen Dijsselbloem
comes to an end, Reuters states.  Before May, EU leaders will also
have to replace the outgoing vice president of the European
Central Bank, Vitor Constancio, Reuters says.

Mr. Koenig has overseen this year the first wind-down of a euro
zone bank under new rules aimed at reducing taxpayers' costs when
lenders fail, Reuters recounts.

Mr. Koenig has also championed strict capital requirements for
euro zone banks under his watch to make sure they hold sufficient
buffers that would be written off, or bailed-in, if they face
collapse, Reuters notes.


* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
-----------------------------------------------------------
Author: Sallie Tisdale
Publisher: BeardBooks
Softcover: 270 pages
List Price: $34.95

Review by Henry Berry
Order your own personal copy at http://is.gd/9SAfJR

An earlier edition of "The Sorcerer's Apprentice" won an American
Health Book Award in 1986. The book has been recognized as an
outstanding book on popular science. Tisdale brings to her subject
of the wide and engrossing field of health and illness the
perspective, as well as the special sympathies and sensitivities,
of a registered nurse. She is an exceptionally skilled writer.

Again and again, her descriptions of ill individuals and images of
illnesses such as cancer and meningitis make a lasting impression.
Tisdale accomplishes the tricky business of bringing the reader to
an understanding of what persons experience when they are ill; and
in doing this, to understand more about the nature of illness as
well. Her style and aim as a writer are like that of a medical or
science journalist for leading major newspaper, say the "New York
Times" or "Los Angeles Times." To this informative, readable style
is added the probing interest and concern of the philosopher
trying to shed some light on one of the central and most
unsettling aspects of human existence. In this insightful,
illuminating, probing exploration of the mystery of illness,
Tisdale also outlines the limits of the effectiveness of
treatments and cures, even with modern medicine's store of
technology and drugs. These are often called "miracles" of modern
medicine. But from this author's perspective, with the most
serious, life-threatening, illnesses, doctors and other healthcare
professionals are like sorcerer's trying to work magic on them.
They hope to bring improvement, but can never be sure what they do
will bring it about. Tisdale's intent is not to debunk modern
medicine, belittle its resources and ways, or suggest that the
medical profession holds out false hopes. Her intent is to report
on the mystery of serious illness as she has witnessed it and from
this, imagined what it is like in her varied work as a registered
nurse. She also writes from her own experiences in being
chronically ill when she was younger and the pain and surgery
going with this.

She writes, "I want to get at the reasons for the strange state of
amnesia we in the health professions find ourselves in. I want to
find clues to my weird experiences, try to sense the nature of
being sick." The amnesia of health professionals is their state of
mind from the demands placed on them all the time by patients,
employers, and society, as well as themselves, to cure illness, to
save lives, to make sick people feel better. Doctors, surgeons,
nurses, and other health-care professionals become primarily
technicians applying the wonders of modern medicine. Because of
the volume of patients, they do not get to spend much time with
any one or a few of them. It's all they can do to apply the
prescribed treatment, apply more of it if it doesn't work the
first time, and try something else if this treatment doesn't seem
to be effective. Added to this is keeping up with the new medical
studies and treatments. But Tisdale stepped out of this
problemsolving outlook, can-do, perfectionist mentality by opting
to spend most of her time in nursing homes, where she would be
among old persons she would see regularly, away from the high-
charged atmosphere of a hospital with its "many medical students,
technicians, administrators, and insurance review artists." To
stay on her "medical toes," she balanced this with working
occasional shifts in a nearby hospital. In her hospital work, she
worked in a neonatal intensive care unit (NICU), intensive care
unit (ICU), a burn center, and in a surgery room. From this
combination of work with the infirm, ill, and the latest medical
technology and procedures among highly-skilled professionals,
Tisdale learned that "being sick is the strangest of states." This
is not the lesson nearly all other health-care workers come away
with. For them, sick persons are like something that has to be
"fixed." They're focused on the practical, physical matter of
treating a malady. Unlike this author, they're not focused
consciously on the nature of pain and what the patient is
experiencing. The pragmatic, results-oriented medical profession
is focused on the effects of treatment. Tisdale brings into the
picture of health care and seriously-ill patients all of what the
medical profession in its amnesia, as she called it, overlooks.
Simply in describing what she observes, Tisdale leads those in the
medical profession as well as other interested readers to see what
they normally overlook, what they normally do not see in the
business and pressures of their work. She describes the beginning
of a hip-replacement operation, the surgeon "takes the scalpel and
cuts -- the top of the hip to a third of the way down the thigh --
and cuts again through the globular yellow fat, and deeper. The
resident follows with a cautery, holding tiny spraying blood
vessels and burning them shut with an electric current. One small,
throbbing arteriole escapes, and his glasses and cheek are
splattered." One learns more about what is actually going on in an
operation from this and following passages than from seeing one of
those glimpses of operations commonly shown on TV. The author
explains the illness of meningitis, "The brain becomes swollen
with blood and tissue fluid, its entire surface layered with pus .
. . The pressure in the skull increases until the winding
convolutions of the brain are flattened out . . . The spreading
infection and pressure from the growing turbulent ocean sitting on
top of the brain cause permanent weakness and paralysis,
blindness, deafness . . . . " This dramatic depiction of
meningitis brings together medical facts, symptoms, and effects on
the patient. Tisdale does this repeatedly to present illness and
the persons whose lives revolve around it from patients and
relatives to doctors and nurses in a light readers could never
imagine, even those who are immersed in this world.

Tisdale's main point is that the miracles of modern medicine do
not unquestionably end the miseries of illness, or even
unquestionably alleviate them. As much as they bring some relief
to ill individuals and sometimes cure illness, in many cases they
bring on other kinds of pains and sorrows. Tisdale reminds readers
that the mystery of illness does, and always will, elude the
miracle of medical technology, drugs, and practices. Part of the
mystery of the paradoxes of treatment and the elusiveness of
restored health for ill persons she focuses on is "simply the
mystery of illness. Erosion, obviously, is natural. Our bodies are
essentially entropic." This is what many persons, both among the
public and medical professionals, tend to forget. "The Sorcerer's
Apprentice" serves as a reminder that the faith and hope placed in
modern medicine need to be balanced with an awareness of the
mystery of illness which will always be a part of human life.



                            *********

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.


                 * * * End of Transmission * * *