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

                           E U R O P E

           Friday, January 26, 2018, Vol. 19, No. 019


                            Headlines


G E R M A N Y

AIR BERLIN: Unsecured Creditors Unlikely to Recover Claims
NORDEX SE: S&P Assigns Preliminary 'B' Corporate Credit Rating


I C E L A N D

UNITED SILICON: Files Request to Commence Bankruptcy Proceedings


I R E L A N D

OAK HILL IV: Moody's Assigns B2 Rating to Class F-R Notes
OAK HILL: Fitch Assigns B- Rating to Class F-R Notes
TYMON PARK: Moody's Assigns Ba2 Rating to Class D Sr. Sec. Notes
TYMON PARK: Fitch Affirms 'B-sf' Rating on Class E Notes


N O R W A Y

SILK BIDCO: Moody's Affirms B2 CFR on Refinancing, Outlook Stable
SILK BIDCO: S&P Affirms 'B-' Corp Credit Rating, Outlook Stable


R U S S I A

MTS BANK: Fitch Affirms B+ Long-term IDR, Off Rating Watch Neg.


S E R B I A

JUGOREMEDIJA: Feb. 8 Auction Scheduled for Production Facilities


S P A I N

PMYES SANTANDER 13: Moody's Rates EUR135MM Series C Notes Caa3
TDA 27: Fitch Lowers Ratings on Two Note Classes to 'Csf'


S W E D E N

ELLEVIO AB: S&P Rates Class B Subordinated Debt 'BB+'


T U R K E Y

AKIBANK: Moody's Lowers Long-Term Deposit Ratings to Caa1


U N I T E D   K I N G D O M

AL GORDON: Employees Remain Unpaid Following Liquidation
EUROSAIL-UK 2007-5NP: S&P Affirms D Ratings on 3 Note Classes
JAMIE OLIVER: To Close 12 Restaurants as Part of CVA
JOE DELUCCI'S: Bought Out of Administration, 38 Jobs Saved
TULLOW OIL: Moody's Hikes CFR to B1, Alters Outlook to Stable


U Z B E K I S T A N

ZIRAAT BANK: Moody's Hikes Long-Term LC Deposit Rating to B1


X X X X X X X X

* BOOK REVIEW: The Sorcerer's Apprentice -- Medical Miracles


                            *********



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G E R M A N Y
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AIR BERLIN: Unsecured Creditors Unlikely to Recover Claims
----------------------------------------------------------
Alexander Huebner at Reuters reports that unsecured creditors of
the failed airline Air Berlin should not expect to recover any of
their claims.

According to Reuters, a report, written by insolvency manager and
administrators Lucas Floether and Frank Kebekus, said any
remaining hope for creditors to recover assets evaporated after
Lufthansa scrapped plans to buy Air Berlin's Niki unit for EUR189
million (GBP165 million).

Germany's flagship carrier made the U-turn on its plans to buy
Niki, an Austrian holiday carrier, after Brussels signalled
antitrust concerns, Reuters notes.

The EUR88 million in assets that Mr. Floether identified in his
112-page report covered EUR22 million in administration costs,
while EUR66 million went repay secured loans by state-creditor
KfW, Reuters discloses.

                       About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.


NORDEX SE: S&P Assigns Preliminary 'B' Corporate Credit Rating
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term
corporate credit rating to Germany-based wind-turbine
manufacturer Nordex SE. The outlook is stable.

S&P said, "At the same time, we assigned a preliminary 'B' issue
rating to its proposed EUR 275 million senior unsecured notes.
The preliminary recovery rating on these senior unsecured notes
is '3', indicating our expectation of average recovery (50%-70%;
rounded estimate: 50%) in the event of payment default.

"Final ratings will depend on our receipt and satisfactory review
of final transaction documentation, and successful execution of
the financing. If we do not receive the final documentation
within a reasonable time frame, or if the final documentation
departs from materials we have reviewed, we reserve the right to
withdraw or revise our ratings. Potential changes include, but
are not limited to, the use of proceeds, interest rate, maturity,
size, financial and other covenants, and the security and ranking
of the bonds.

"The rating on Nordex reflects our view that structural changes
in the wind-power manufacturing industry and late introduction of
a competitive wind-turbine platform will lead to weak operating
performance over the next two years. However, we also expect
Nordex will maintain comfortable liquidity to ensure the
financial flexibility to overcome the contraction of the
operating performance."

Nordex is a European manufacturer of onshore wind-turbine
generators with cumulative installed capacity of approximately 21
gigawatts worldwide, about 60% in Europe. Headquartered in
Germany, the group has a global production footprint, including
facilities in Germany, Spain, the U.S., Brazil, and India. Pro
forma the acquisition of Acciona Windpower in 2016, Nordex
generated about EUR 3.6 billion of revenues and EUR 295 million
of EBITDA in 2016, a notable increase compared with Nordex's
stand-alone figures for 2015 (EUR 2.4 billion and EUR 182
million, respectively). With the acquisition of Acciona Windpower
in 2016, partly via a share deal, Acciona S.A. became the largest
shareholder of Nordex, holding almost 30% of outstanding shares.
The acquisition aims to extend Nordex's geographical footprint
and broaden its customer base and product offering. The group's
European operations now represent about 60% of revenues, North
America accounting for about 20%, South America for about 15%,
and the remaining 5%, the rest of the world.

S&P said, "We view the wind-power manufacturing industry as under
consolidation pressure, reflecting existing overcapacity and the
immense cost pressure arising from the change to auction-based
systems in Europe, especially in Germany, the largest market in
Europe and most important market for Nordex. In the first
auctions under the new regime, awarded prices were roughly halved
to about EUR 43 per megawatt hours compared with the granted
feed-in tariffs until 2017. Additionally, under the new scheme,
smaller bidders won most of the auctions and have until 2022 to
develop their projects. We therefore believe that in addition to
the high cost pressure, demand will be delayed in Germany."

Nordex is relatively small compared with the industry leaders
like Vestas, GE, and Siemens-Gamesa. It still has limited
geographic diversification as the majority of group sales are
generated in Europe, with a high dependence on the German market.
Moreover, S&P regards Nordex as exposed to the policy-driven
demand cyclicality of the wind-power manufacturing industry, as
well as to some project execution risks that could translate into
volatile cash flows. Compared to peers Nordex was late to
introduce a new wind-turbine platform to meet client demand for a
larger and more efficient wind-turbine model, which S&P expects
will lead to a loss in market share over the next two years. The
company is currently in the development phase, and expects first
order intakes in 2018 and installations of the new turbine
platform in 2019, closing the gap with its competitors.

S&P said, "We view as positive Nordex's good market positions in
its core markets, its long-lasting relationships with its key
customers, and its order backlog, which adds some predictability
to future revenues and earnings. Furthermore, Nordex has extended
its geographical footprint and product offering, with the
acquisition of Acciona Windpower, now providing turbines
optimized for projects with or without land constraints. With
that, we expect Nordex to better capture global demand and growth
outside Europe, improving its geographic diversification. The
growing aftermarket business makes only a small contribution to
earnings stability, with about 10% of total sales, leading to
high dependency on new projects. We view Nordex's business risk
profile as weak."

Nordex plans to refinance EUR 275 million of its outstanding EUR
550 million borrowing notes with EUR 275 million senior unsecured
notes. S&P said, "Our estimates account for financial debt of
about EUR 680 million, which includes the newly issued senior
unsecured notes of EUR 275 million, remaining borrowing notes of
EUR 275 million, and a EUR 78 million European Investment Bank
loan. Our debt figure also includes about EUR 40 million of
operating lease liabilities. We net some EUR 200 million of cash
in our calculation, which we understand is not needed for
operations and is instead reserved for upcoming debt maturities."

S&P said, "Following the refinancing, we estimate that the S&P
Global Ratings-adjusted debt-to-EBITDA ratio was close to 3.0x by
Dec. 31, 2017. This is based on our assumption that Nordex will
post reported EBITDA margins of about 8%, broadly in line with
2016 (8.4%). With the high price pressure, which can be only be
partly compensated by supply chain management and cost measures,
as well as lower volumes due to a current lack of a competitive
platform and some delays for new projects in Germany, we expect
reported EBITDA margins will fall to about 3% over 2018 and 2019.
Debt to EBITDA in 2018 will be not meaningful, improving to about
10x in 2019, in our view. We forecast roughly neutral free
operating cash flow (FOCF) over 2018-2019. We note that very
large swings in working capital have affected the group's cash
flows in the past, and we incorporate this in our liquidity
analysis. Coverage of cash interest by funds from operations
(FFO), which is not influenced by the level of surplus cash used,
will average around 3x in 2017-2019. Overall, we assess the
financial risk profile in the lower half of the highly leveraged
category, reflecting the high leverage of the group.

"The stable outlook is based on our assumption that the company
will, after the successful refinancing, maintain a solid cash
balance of about EUR 600 million (before intrayear working
capital swings). This should offer financial flexibility until
Nordex is able to generate more sales in developing markets and
through the new Delta platform, expected in the second half of
2019. We also expect that management will continue to proactively
manage financial risks, ensuring pre-financing of maturities.
After the platform's introduction, we expect a stabilization of
order intake and operating performance.

"Rating pressure could arise if we expected a material decrease
in liquid funds, reducing the financial flexibility of the
company. This could result from higher-than-expected capex or
outflows relating to working capital. We could also take a
negative rating action if market conditions weakened more than we
expect and Nordex's operating results deteriorated for a longer
period than currently expected, leading to sales and EBITDA
margins below our current base case, and translating into
substantially negative FOCF and cash interest coverage ratio of
less than 2x.

"We might consider an upgrade if the contraction of Nordex's
operating performance was lower than currently expected, leading
to FFO to cash interest coverage of around 3x, while strong order
intake for the new Delta platform provided more confidence in the
recovery of operating performance from the second half of 2019--
and at the same time maintaining a solid cash balance, providing
financial flexibility. However, we view such a development as
unlikely over the next 18 months. An improvement in our
assessment of the business risk profile is unlikely given
Nordex's low profitability and the ongoing consolidation in an
industry in which Nordex is a relatively small player."


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I C E L A N D
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UNITED SILICON: Files Request to Commence Bankruptcy Proceedings
----------------------------------------------------------------
Jelena Ciric at Iceland Review, citing RUV, reports that United
Silicon has requested to begin bankruptcy proceedings through the
District Court of Reykjanes.

There has been no production at the plant since operations ceased
in September, Iceland Review notes.

United Silicon was granted a moratorium in August, Iceland Review
recounts.  The moratorium was then extended on Dec. 4, expiring
on Jan. 22, Iceland Review relays.  According to Iceland Review,
the board of directors decided to file for bankruptcy after it
concluding an agreement could not be reached with creditors and
there were therefore no grounds for requesting another extension
on the moratorium.

An announcement from United Silicon stated the Environment Agency
of Iceland demanded operations remain suspended until extensive
improvements were made on the plant, which could take up to a
year, Iceland Review discloses.

Research on the plant's equipment revealed that although the
basic design of the furnace was adequate, the equipment used was
cheap and poorly made, making malfunctions a frequent occurrence,
Iceland Review states.


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I R E L A N D
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OAK HILL IV: Moody's Assigns B2 Rating to Class F-R Notes
---------------------------------------------------------
Moody's assigns definitive ratings to nine classes of refinancing
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Oak Hill European
Credit Partners IV Designated Activity Company:

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

-- EUR222,000,000 Class A-1-R Senior Secured Floating Rate Notes
    due 2032, Definitive Rating Assigned Aaa (sf)

-- EUR25,000,000 Class A-2-R Senior Secured Fixed Rate Notes due
    2032, Definitive Rating Assigned Aaa (sf)

-- EUR30,550,000 Class B-1-R Senior Secured Floating Rate Notes
    due 2032, Definitive Rating Assigned Aa2 (sf)

-- EUR11,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
    2032, Definitive Rating Assigned Aa2 (sf)

-- EUR24,000,000 Class C-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Definitive Rating Assigned A2 (sf)

-- EUR22,000,000 Class D-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Definitive Rating Assigned Baa2 (sf)

-- EUR25,800,000 Class E-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Definitive Rating Assigned Ba2 (sf)

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

RATINGS RATIONALE

Moody's definitive ratings of the notes address the expected loss
posed to noteholders. The definitive ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets.

The Issuer has issued the Refinancing Notes in connection with
the refinancing of the following classes of notes: Class A-1A
Notes, Class A-1B Notes, Class A-2 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
December 10, 2015 (the "Original Closing Date"). On the
Refinancing Date, the Issuer has used 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 EUR47.0M of Subordinated Notes, which remain
outstanding.

Oak Hill IV is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans. The underlying portfolio is 100% ramped as of the second
refinancing closing date.

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

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

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published 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.

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

Par Amount: EUR400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2790

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 42%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3209 from 2790)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A-1-R Senior Secured Floating Rate Notes: -1

Class A-2-R Senior Secured Fixed Rate Notes: -1

Class B-1-R Senior Secured Floating Rate Notes: -2

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

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

Class D-R Senior Secured Deferrable Floating Rate Notes: -2

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F-R Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3627 from 2790)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A-1-R Senior Secured Floating Rate Notes: -1

Class A-2-R Senior Secured Fixed Rate Notes: -1

Class B-1-R Senior Secured Floating Rate Notes: -4

Class B-2-R Senior Secured Fixed Rate Notes: -4

Class C-R Senior Secured Deferrable Floating Rate Notes: -4

Class D-R Senior Secured Deferrable Floating Rate Notes: -3

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F-R Senior Secured Deferrable Floating Rate Notes: -2


OAK HILL: Fitch Assigns B- Rating to Class F-R Notes
----------------------------------------------------
Fitch Ratings has assigned Oak Hill European Credit Partners IV
DAC refinancing notes final ratings, as follows:

EUR2 million Class X notes: 'AAAsf'; Outlook Stable
EUR222 million Class A-1-R notes: 'AAAsf'; Outlook Stable
EUR25 million Class A-2-R notes: 'AAAsf'; Outlook Stable
EUR30.55 million Class B-1-R notes: 'AAsf'; Outlook Stable
EUR11 million Class B-2-R notes: 'AAsf'; Outlook Stable
EUR24 million Class C-R notes: 'Asf'; Outlook Stable
EUR22 million Class D-R notes: 'BBBsf'; Outlook Stable
EUR25.8 million Class E-R notes: 'BBsf'; Outlook Stable
EUR12 million Class F-R notes: 'B-sf'; Outlook Stable

Oak Hill European Credit Partners IV DAC is a cash flow
collateralised loan obligation (CLO). The proceeds of this issue
are being used to redeem the old notes, with a new identified
portfolio comprising the existing portfolio, as modified by sales
and purchases conducted by the manager. The portfolio is managed
by Oak Hill Advisors (Europe), LLP. The refinanced CLO envisages
a further four-year reinvestment period and an 8.5-year weighted
average life.

KEY RATING DRIVERS

'B' Portfolio Credit Quality
Fitch places the average credit quality of obligors in the
'B'/'B-' range. The Fitch-weighted average rating factor (WARF)
of the current portfolio is 33.56, below the covenanted maximum
for assigning final ratings of 34.5.

High Recovery Expectations
The portfolio will comprise a minimum of 90% senior secured
obligations. The weighted average recovery rate of the current
portfolio is 67.34%, above the covenanted minimum for assigning
final ratings of 63.5%, corresponding to the matrix WARF of 34.5,
weighted average spread of 3.5%, weighted average coupon of 5%, a
fixed-rate bucket of 12.5% and a top 10 obligor percentage of
22%.

Limited Interest Rate Risk
Fixed-rate liabilities represent 9% of the target par amount,
while unhedged fixed-rate assets cannot exceed 12.5% of the
portfolio. The transaction is therefore partially hedged against
rising interest rates.

Unhedged Non-Euro Asset Exposure
The transaction is allowed to invest in non-euro-denominated
assets. Unhedged non-euro assets are limited to a maximum 2.5% of
the portfolio subject to principal haircuts and may remain
unhedged for up to 180 days after settlement. The manager can
only invest in unhedged assets if, after the applicable haircuts,
the aggregate balance of the assets is above the reinvestment
target par balance.

VARIATIONS FROM CRITERIA

The "Fitch Rating" definition was amended so that assets that are
not expected to be rated by Fitch, but that are rated privately
by the other rating agency rating the liabilities, can be assumed
to be of 'B-' credit quality for up to 10% of the collateral
principal amount. This is a variation from Fitch's criteria,
which require all assets unrated by Fitch and without public
ratings to be treated as 'CCC'. The change was motivated by
Fitch's policy change of no longer providing credit opinions for
EMEA companies over a certain size. Instead Fitch expects to
provide private ratings that would remove the need for the
manager to treat assets under this leg of the "Fitch Rating"
definition.

The amendment has had only a small impact on the ratings. Fitch
has modelled the transaction at the pricing point with 10% of the
'B-' assets with a 'CCC' rating instead, which resulted in a two-
notch downgrade at the 'A' rating level and at most a one-notch
downgrade at other rating levels.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate, and with this increase added to all rating default levels,
would lead to a downgrade of up to two notches for the rated
notes. A 25% reduction in recovery rates would lead to a
downgrade of up to four notches for the rated notes.


TYMON PARK: Moody's Assigns Ba2 Rating to Class D Sr. Sec. Notes
----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to seven classes of notes issued by Tymon Park CLO
Designated Activity Company:

-- EUR238,000,000 Refinancing Class A-1A Senior Secured Floating
    Rate Notes due 2029, Definitive Rating Assigned Aaa (sf)

-- EUR5,000,000 Refinancing Class A-1B Senior Secured Fixed Rate
    Notes due 2029, Definitive Rating Assigned Aaa (sf)

-- EUR27,000,000 Refinancing Class A-2A Senior Secured Floating
    Rate Notes due 2029, Definitive Rating Assigned Aa2 (sf)

-- EUR15,000,000 Refinancing Class A-2B Senior Secured Fixed
    Rate Notes due 2029, Definitive Rating Assigned Aa2 (sf)

-- EUR24,000,000 Refinancing Class B Senior Secured Deferrable
    Floating Rate Notes due 2029, Definitive Rating Assigned A2
    (sf)

-- EUR22,000,000 Refinancing Class C Senior Secured Deferrable
    Floating Rate Notes due 2029, Definitive Rating Assigned Baa1
    (sf)

-- EUR26,500,000 Refinancing Class D Senior Secured Deferrable
    Floating Rate Notes due 2029, Definitive Rating Assigned Ba2
    (sf)

Additionally Moody's has upgraded the rating on the existing
following note issued by Tymon Park CLO Designated Activity
Company:

-- EUR12,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2029, Upgraded to B1 (sf); previously on Dec 17,
    2015 Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's ratings of the Notes address the expected loss posed to
noteholders. The ratings reflect the risks due to defaults on the
underlying portfolio of assets, the transaction's legal
structure, and the characteristics of the underlying assets.

The Issuer will issue the Refinancing Class A-1A Notes, the
Refinancing Class A-1B Notes, the Refinancing Class A-2A Notes,
the Refinancing Class A-2B Notes, the Refinancing Class B Notes,
the Refinancing Class C Notes and the Refinancing Class D Notes
(the "Refinancing Notes") in connection with the refinancing of
the Class A-1A Senior Secured Floating Rate Notes due 2029, the
Class A-1B Senior Secured Fixed Rate Notes due 2029, the
refinancing of the Class A-2A Senior Secured Floating Rate Notes
due 2029, the Class A-2B Senior Secured Fixed Rate Notes due
2029, the Class B Senior Secured Deferrable Floating Rate Notes
due 2029, the Class C Senior Secured Deferrable Floating Rate
Notes due 2029 and the Class D Senior Secured Deferrable Floating
Rate Notes due 2029 ("the Original Notes") respectively,
previously issued on December 17, 2015 (the "Original Closing
Date"). The Issuer will use the proceeds from the issuance of the
Refinancing Notes to redeem in full the Original Notes that will
be refinanced. On the Original Closing Date, the Issuer also
issued one class of rated notes and one class of subordinated
notes, which will remain outstanding.

The rating action on the Class E is primarily a result of the
increase in the excess spread available to the transaction
resulting from refinancing of the Original Notes.

Other than the changes to the spreads and coupon of the notes,
the main changes to the terms and conditions involve increasing
the Weighted Average Life Test by 15 months to a total of 7.15
years from the refinancing date. The length of the reinvestment
period will remain unchanged and will expire on January 21, 2020.
No other material modifications to the CLO are occurring in
connection to the refinancing.

Tymon Park CLO Designated Activity Company is a managed cash flow
CLO. The issued notes will be collateralized primarily by broadly
syndicated first lien senior secured corporate loans. At least
90% of the portfolio must consist of senior secured loans or
senior secured bonds and up to 10% of the portfolio may consist
of unsecured senior loans, second lien loans, mezzanine
obligations and high yield bonds. The underlying portfolio is
expected to be 100% ramped as of the refinancing date.

Blackstone / GSO Debt Funds Management Europe Limited (the
"Manager") 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
2020, the Manager may reinvest unscheduled principal payments and
proceeds from sales of credit improved and 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.

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

The performance of the Refinancing Notes is subject to
uncertainty. The performance of the Refinancing 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 Refinancing
Notes.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
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, recoveries and principal proceeds balance:
EUR400,000,000

Defaulted par: EUR4,673,120

Diversity Score: 44

Weighted Average Rating Factor (WARF): 3309*

Weighted Average Spread (WAS): 4.30%

Weighted Average Recovery Rate (WARR): 44.45%

Weighted Average Life (WAL): 6.54 years

(*) The transaction includes a Matrix modifier which permits an
increase in the covenanted WARF if the applicable margin of the
Class A-1A Notes is reduced below its initial level as of the
Original Closing Date. The assumed WARF reflects the effect of
this modifier and the combination of portfolio covenants expected
as of closing.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the ratings assigned to the Refinancing
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 Refinancing 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 3309 to 3805)

Rating Impact in Rating Notches:

Refinancing Class A-1A Senior Secured Floating Rate Notes: 0

Refinancing Class A-1B Senior Secured Fixed Rate Notes: 0

Refinancing Class A-2A Senior Secured Floating Rate Notes: -1

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

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

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

Refinancing Class D Senior Secured Deferrable Floating Rate
Notes: 0

Class E Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 3309 to 4302)

Rating Impact in Rating Notches:

Refinancing Class A-1A Senior Secured Floating Rate Notes: -1

Refinancing Class A-1B Senior Secured Fixed Rate Notes: -1

Refinancing Class A-2A Senior Secured Floating Rate Notes: -2

Refinancing Class A-2B Senior Secured Fixed Rate Notes: -2

Refinancing Class B Senior Secured Deferrable Floating Rate
Notes: -3

Refinancing Class C Senior Secured Deferrable Floating Rate
Notes: -3

Refinancing Class D Senior Secured Deferrable Floating Rate
Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: -1

Further details regarding Moody's analysis of this transaction
may be found in the related new issue report, published after the
Original Closing Date in January 2016 and available on
Moodys.com.

Methodology Underlying the Rating Actions:

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


TYMON PARK: Fitch Affirms 'B-sf' Rating on Class E Notes
--------------------------------------------------------
Fitch Ratings has assigned Tymon Park Designated Activity Company
refinancing notes final ratings and affirmed the others as
follows:

EUR238 million class A-1A-R notes: assigned 'AAAsf'; Outlook
Stable
EUR5 million class A-1B-R notes: assigned 'AAAsf'; Outlook Stable
EUR27 million class A-2A-R notes: assigned 'AAsf'; Outlook Stable
EUR15 million class A-2B-R notes: assigned 'AAsf'; Outlook Stable
EUR24 million class B-R notes: assigned 'Asf'; Outlook Stable
EUR22 million class C-R notes: assigned 'BBBsf'; Outlook Stable
EUR26.5 million class D-R notes: assigned 'BBsf'; Outlook Stable
EUR12 million class E notes: affirmed at 'B-sf'; Outlook Stable

Tymon Park Designated Activity Company (previously Tymon Park CLO
Limited) is a cash-flow collateralised loan obligation (CLO). Net
proceeds from the notes have been used to refinance the current
outstanding class A to D notes. The issuer did not issue any
class E notes as refinancing notes on the refinancing date. The
portfolio is managed by Blackstone/GSO Debt Funds Management
Europe Limited.

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality
Fitch expects the average credit quality of obligors to be in the
'B'/'B-'category. The weighted-average rating factor of the
current portfolio is 33.21.

High Recovery Expectations
The portfolio will comprise a minimum of 90% senior secured
obligations. The weighted average recovery rate (WARR) of the
current portfolio is 67.35%

Extended Weighted Average Life (WAL)
On the refinancing date, the issuer extended the WAL covenant by
1.25 years to 7.15 years as part of the refinancing of the notes
and updated the Fitch Test Matrix.

Limited Interest Rate Risk
Fitch modelled both a 10% and a 0% fixed-rate bucket in its
analysis, and found the rated notes can withstand the interest-
rate mismatch in both scenarios.

Diversified Asset Portfolio
The transaction contains a covenant that limits the top 10
obligors in the portfolio to 20%. This ensures that the asset
portfolio will not be exposed to excessive obligor concentration.

TRANSACTION SUMMARY

Tymon Park Designated Activity Company closed in December 2015.
The transaction is still in in its reinvestment period, which is
set to expire in January 2020. The issuer has issued new notes to
refinance part of the original liabilities. The notes A-1A, A-1B,
A-2A, A-2B, B, C, and D have been redeemed in full as a
consequence of the refinancing.

The refinancing notes bear interest at a lower margin over
EURIBOR than the refinanced notes. The remaining terms and
conditions of the refinancing notes (including seniority) are the
same as the refinanced notes.

In its analysis, Fitch has applied a 15bps haircut to the
weighted average spread calculation. In this transaction, the
aggregate funded spread calculation for floating-rate collateral
debt obligation with an Euribor floor is artificially inflated by
the negative portion of Euribor.

VARIATIONS FROM CRITERIA

The "Fitch Ratings Definitions" was amended so that assets that
are not rated by Fitch but rated privately by the other agency
rating the liabilities, can be assumed to be of 'B-' credit
quality for up to 10% of the aggregated portfolio notional. This
is a variation from Fitch's criteria, which require all assets
unrated by Fitch and without public ratings to be treated as
'CCC'. The change was motivated by Fitch's policy change of no
longer providing credit opinions for EMEA companies over a
certain size. Instead, Fitch expects to provide private ratings
that would remove the need for the manager to treat assets under
this leg of the "Fitch Rating Definition".

The amendment has had only a small impact on the ratings. Fitch
has modelled the transaction at the pricing point with 10% of the
'B-' assets with a 'CCC' rating instead, which resulted in a two-
notch downgrade at the 'A' rating level and a one-notch downgrade
at all other rating levels.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate and with this increase added to all rating default levels,
or a 25% reduction in expected recovery rates, would each lead to
a downgrade of up to two notches for the rated notes.


===========
N O R W A Y
===========


SILK BIDCO: Moody's Affirms B2 CFR on Refinancing, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating (CFR) and B2-PD probability of default rating of Silk
Bidco AS (Hurtigruten), the owner of Norwegian cruise operator
Hurtigruten AS. Concurrently, the rating agency assigned new B2
senior secured instrument ratings to the proposed EUR575 million
Term Loan B and EUR85 million revolving credit facility (RCF) to
be borrowed by Silk Bidco AS. The outlook on all ratings is
stable.

Hurtigruten will use the proceeds from the proposed Term Loan B
to (1) repay the existing debt including the existing notes and
the drawn amounts under the RCF, and (2) pay fees, costs and
expenses incurred in connection with the refinancing transaction.

"The affirmation at B2 reflects the improved liquidity profile of
the company as a result of the transaction, which will enable
Hurtigruten to gain more financial flexibility with access to a
fully undrawn Revolving Credit Facility" says Guillaume Leglise,
a Moody's Assistant Vice-President and lead analyst for
Hurtigruten. "Nevertheless Hurtigruten's initial leverage will be
very high for the B2 rating category owing to lower than expected
profitability in 2017", adds Mr Leglise.

RATINGS RATIONALE

The affirmation of Hurtigruten's CFR at B2 reflects the improved
liquidity profile of the company as a result of the proposed
refinancing transaction. Hurtigruten's liquidity profile
presented limited room for maneuver in 2017 as the company has
funded in the last two years large capex investments for
refurbishments and new vessels capacity through additional debt,
notably large drawings under its RCF. Pro forma of the proposed
transaction, Moody's expects Hurtigruten to have an adequate
liquidity profile thanks to an initial cash balance of NOK459
million (EUR49 million equivalent) and a fully undrawn EUR85
million RCF.

In addition, Hurtigruten's free cash flow generation is expected
to improve in the next 18 months. Excluding the committed capex
outflows for the delivery of two new exploration vessels,
expected in Q3-2018 and Q2-2019, which are already financed,
Moody's expects Hurtigruten to generate positive free cash flows
in the range of NOK400-600 million (equivalent to EUR45-65
million). This mainly reflects the expected revenue growth coming
from increased cruise night volumes and improvement in
profitability owing to heightened cost discipline, as well as a
normalization of capex following a heavy investment cycle.

That being said, Moody's cautions that Hurtigruten did not
perform in line with the rating agency expectations in 2017
because of increased cost of goods sold, due to product mix
effects, whose growth outpaced that of revenues. Moody's
affirmation of the B2 CFR hinges on the expectation that
Hurtigruten will exercise a better control over its growth going
forward to convert top line growth into profits. In addition,
Hurtigruten's B2 CFR is constrained by a fairly high initial
leverage which translates into a weak positioning in the rating
category. Pro forma of the refinancing transaction, Moody's
estimates the company's (gross) debt to EBITDA (as adjusted by
Moody's) at around 7.3x in 2017 (year ended December 31, 2017).
As part of the transaction, Hurtigruten will take on about NOK364
million (equivalent to EUR38.8 million) in incremental debt.

The CFR is also constrained by Hurtigruten's (1) moderate scale
and narrow business profile with a primary focus on the Norwegian
west coast cruise market; (2) high operational leverage, with a
high-fixed-cost structure and sizeable exposure to bunker fuel
price volatility; and (3) the high seasonality and capital
intense nature of its operations.

That being said, Moody's recognizes Hurtigruten's well-
established competitive positioning and differentiated offer in
the niche Norwegian cruise market and that the fundamentals of
the business are still favorable, with growing demand for
cruising translating into a significant increase in pre bookings
(compared to past periods), higher occupancy rates, and a weak
Norwegian kroner against the euro. In addition, increased
capacity in the growing expedition segment will support
profitability in the next 12 to 18 months. As a result,
Hurtigruten presents encouraging deleveraging prospects, and
Moody's expects leverage to reduce towards 6.0x in the next 18
months, a level deemed more appropriate for the B2 rating.

STRUCTURAL CONSIDERATIONS

The CFR is assigned at Silk Bidco AS, which is a holding company
and top entity of the restricted group. The capital structure
primarily consists of a EUR575 million senior secured term loan B
(TLB) maturing in 2025 and a EUR85 million senior secured RCF due
in 2024. Both instruments are rated B2, in line with the CFR,
with a loss given default assessment of 3 (LGD3). Under the terms
of the loan agreement and the intercreditor agreement, the RCF
and TLB rank pari passu. These facilities benefit from a
guarantee from guarantors representing not less than 80% of group
EBITDA. Both instruments are secured, on a first-priority basis,
by substantially all assets of the group, including ship
mortgages over 10 vessels, certain share pledges, intercompany
receivables and bank accounts.

Hurtigruten's pro forma capital structure also comprises the debt
financing for the upcoming new vessels and a Norwegian bond
issued outside of the restricted group. Both debts are guaranteed
by Silk Bidco AS and have been included into Moody's metrics and
in the Loss Given Default model. Because these debt instruments
are secured by specific vessels, Moody's has considered they rank
pari passu with the RCF and TLB. The company's capital structure
also includes a EUR6.5 million undated shareholder loan, which
Moody's has deemed to be 100% equity-like in its metrics
calculations.

The PDR of B2-PD reflects the use of a 50% family recovery
assumption, reflecting a capital structure including bank debt
and loose covenants, with RCF lenders relying only on one
springing net senior secured leverage financial covenant.

RATIONALE FOR OUTLOOK

The stable outlook reflects Moody's expectations that Hurtigruten
will improve its profitability in the next 18 months owing to (1)
a solid momentum in advanced bookings for 2018, (2) growing
demand for Norwegian coastal and expedition cruises, and (3)
additional cruise capacity to be deployed in the growing
expedition segment. As a result, Moody's expects Hurtigruten will
strengthen its positioning in the B2 category, which is currently
weak owing to its high leverage. Moody's expects leverage will
reduce towards 6.0x in the next 18 months assuming that there
will be no delays in new vessels' deliveries and that the company
will be able to convert its current bookings into profits. The
stable outlook also assumes limited volatility in foreign
currency exchange and crude oil prices.

WHAT COULD CHANGE THE RATINGS DOWN/UP

Moody's could upgrade the ratings if Hurtigruten (1) improves its
profitability; (2) displays positive free cash flow generation,
and (3) maintains an adequate liquidity profile. Quantitatively,
stronger credit metrics such as Moody's adjusted (gross)
debt/EBITDA comfortably below 5.5x on a sustainable basis could
trigger an upgrade.

Conversely, Moody's could downgrade the ratings if Hurtigruten's
operating performance deviates from Moody's current expectations.
Quantitatively, failure to bring adjusted (gross) debt/EBITDA
below 6.5x could trigger a downgrade. A weakening in the
company's liquidity profile and liquidity management or higher-
than-expected capital expenditures could also exert downward
pressure on the rating.

PRINCIPAL METHODOLOGY

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

Headquartered in Tromso, Norway, Hurtigruten is a cruise ship
operator that focuses mainly on coastal cruises in Norway but
also offers expeditions, land-based excursions and activities in
the Arctic Circle, Greenland and Antarctica. In addition, the
company provides local transportation services with daily calls
in 34 ports in Norway through an exclusive contract with the
Norwegian government until 2019. The company operates a fleet of
14 ships. In the 12 months to September 30, 2017, the company
generated revenues and EBITDA (as adjusted by the company) of
NOK4.7 billion and NOK950 million respectively. In the first 9
months of 2017, 79% of the company's revenues derived from the
Norwegian Coast operations (including local transportation
services). More than 85% of the company's passengers were sourced
from Europe.


SILK BIDCO: S&P Affirms 'B-' Corp Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'B-' long-term
corporate credit rating on Norway-based cruise ship operator Silk
Bidco AS (trading as Hurtigruten AS). The outlook is stable.

S&P said, "At the same time, we assigned our 'B-' issue-level
rating to the company's proposed EUR 660 million senior secured
term loan and revolving credit facility (RCF) agreement. The
recovery rating on the senior secured notes is '3', indicating
our expectation of meaningful (50%-70%; rounded estimate: 50%)
recovery prospects in the event of a default. We expect to
withdraw the rating on the existing EUR 455 million bond on full
repayment."

The affirmation of the corporate credit rating follows
Hurtigruten's announcement that it plans to refinance its entire
capital structure with a new EUR 660 million term loan and RCF.

S&P said, "Although we do not expect the refinancing transaction
to materially affect our forecast debt to EBITDA, given that it
is largely debt for debt, we view the proposed refinancing
transaction favorably because it will extend the maturity of the
debt by four years and reduce the cost of debt." More
importantly, the company will have access to a fully undrawn RCF
of about EUR 85 million. This facility will provide a sufficient
cushion to mitigate the effects of any potential operating
challenges for next two years, before the contribution from the
new build vessels enhances earnings.

Over the past three years, Hurtigruten has transitioned to focus
more on the explorer segment, a move that should bear fruit in
the next 12-18 months as the shipyard delivers the new build
explorer vessels. S&P said, "Although we include contributions
from the new build vessels in our base case, our current rating
also incorporates the execution risk that could arise from a
delay in the delivery of new vessels or from the failure to
manage a profitable utilization of its expanded capacity in the
medium term."

S&P said, "In our opinion, Hurtigruten's business risk profile is
primarily constrained by the concentration risk of its
operations, which focus on the Norwegian West Coast, and to a
lesser extent on Arctic and Antarctic routes. Unfavorable weather
conditions in these regions lead to a higher risk of
cancellations and lower average occupancy rates compared with
other cruise operators that are able to change their itineraries
for more popular destinations when adverse weather hits or a
natural disaster occurs. We note that Hurtigruten's profitability
has been volatile historically due to exceptional costs and its
relatively low occupancy rates of about 65%-75%, when compared
with other cruise operators that we rate." Still, Hurtigruten's
business risk profile benefits from its well-recognized brand and
over 125 years history of operations, which together with the
established fleet of specialized vessels provide barriers to
entry and an advantage over its competitors.

Assumptions:

-- Revenue growth of about 10% in 2018 on the back of a
    relatively strong 2017, with growth of about 11.5%.

-- S&P's revenue growth forecast is much higher than our
    expected GDP growth in Hurtigruten's main markets. This is
    because Hurtigruten's customer base is concentrated toward
    retirees from developed countries who are affluent and have a
    high propensity to spend. Additionally, revenue contribution
    from MS Amundsen (new build) and improved occupancy for MS
    Midnatsol support our forecast. S&P's forecast double-digit
    rate growth for both 2019 and 2020.

-- About 50% and 80% of the Norwegian coast and explorer segment
    revenues for the financial year (FY) ending Dec. 31, 2018 are
    booked in advance, respectively. S&P said, "We believe that
    the group's historical cancellation rate of the advance
    booking of below 1% will stay largely unchanged as the
    customer pays a 20% upfront deposit. This provides confidence
    to our revenue forecast for 2018. Historically, the group has
    a good track record of meeting its revenue target (absent any
    refurbishment and dry-docking delays). Increased revenue
    contribution during the shoulder months also support our
    growth forecast.
-- S&P Global Ratings-adjusted EBITDA margins of about 20% for
    FY2018 compared with our current estimate of 18% for FY2017
    due to the increased occupancy rate and lower exceptional
    costs.

-- Hurtigruten will continue to operate in full, or part of the
    Norwegian Coastal contract (which contributed about 16% of
    the group's revenue) beyond 2019. S&P will update its
    forecast for periods beyond 2019 if the group is unable to
    retain this contract. The Norwegian government is likely to

    announce the result of the tender in the first half of this
    year.

-- Capital expenditure (capex) of Norwegian krone (NOK) 1,800
    million, which includes expansionary capex of about NOK1,550
    million (including a payment of about NOK1,200 million for MS
    Amundsen on delivery).

-- External financing of up to NOK1,200 million to fund the new
    vessel in 2018.

Based on these assumptions, we arrive at the following credit
measures:

-- Adjusted debt to EBITDA of 8.5x (7.0x excluding shareholder
    loan) in 2018 (from forecast 9.0x in 2017); and

-- Funds from operations (FFO) to debt of 6%-8% in 2018 from
    about forecast 6.0% in 2017.

-- Reported negative free operating cash flow of about NOK1,100
    million in 2018. This will be positive NOK100 million-NOK300
    million once S&P incorporates the committed financing
    arranged for new build and refurbishment.

S&P said, "The stable outlook reflects our view that the strong
advance booking trends for the new build, along with increased
occupancy rates on the existing ships, will enable the group to
increase revenues and profitability with EBITDA margin reaching
20% by the end of 2018. This should allow Hurtigruten to
deleverage and maintain EBITDA interest cover of above 2.0x. The
stable outlook also incorporates our expectation that the group
will execute its Explorer segment expansion strategy
successfully, including timely commissioning of its first new
build vessel, MS Amundsen, while maintaining adequate liquidity.

"While unlikely within the next 12 months, we could consider a
positive rating action if the group improved its earnings and
profitability margins beyond the level we forecast in our base
case, such that they support stronger deleveraging from the
current elevated level, and maintain its EBITDA interest cover
meaningfully and sustainably above 2.0x. For this scenario,
besides maintaining its yield and increase its occupancy rates
above 80%, Hurtigurten should benefit from favorable developments
in its cost base, namely port fees, bunker fuel (for explorer
segment), and foreign exchange movements.

"We could also consider an upgrade if TDR Capital completes the
IPO it included in its list of strategic options, leading to a
reduction in debt and a sustainable, material improvement in
credit metrics in the next 12 months.

"We could lower the ratings on Hurtigruten if we considered the
group's capital structure unsustainable. About NOK2,300 million
(EUR 240 million) of additional debt will crystallize on delivery
of two new vessel builds within the next 18 months. Subsequent to
such an increased indebtedness, if the new builds are not
successfully launched (in terms of yield, occupancy rates, and
timing), then weak operating performance could render the capital
structure unsustainable, with debt to EBITDA observing no
deleveraging from current elevated levels. We could also take a
negative rating action if the group's liquidity were to weaken
and became insufficient to cover the liquidity needs arising from
operational delays or event risks. However, if the proposed
refinancing transaction closes as planned, we will consider the
liquidity risk to be limited for next 12-18 months."


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


MTS BANK: Fitch Affirms B+ Long-term IDR, Off Rating Watch Neg.
--------------------------------------------------------------
Fitch Ratings has affirmed MTS Bank's (MTSB) Long-Term Issuer
Default Rating (IDR) at 'B+' and the Support Rating at '4'. Both
ratings have been removed from Rating Watch Negative. The Outlook
is Negative.

The rating action reflects a similar action on the bank's
majority shareholder, Sistema Public Joint Stock Financial Corp.
(Sistema; BB-/Negative) following the settlement agreement with
Rosneft, Bashneft and the Republic of Bashkortostan on litigation
against Sistema (see latest Rating Action Commentary on Sistema,
dated 19 January 2018, on www.fitchratings.com).

KEY RATING DRIVERS

IDRs and Support Ratings
The IDRs and Support Rating of MTSB are driven by the potential
support, in case of need, by the bank's shareholder, Sistema
and/or its subsidiaries. This view is mainly based on (i) the
track record of capital support, including RUB15 billion of
equity provided in 2016; (ii) MTSB's role as treasury for
Sistema; and (iii) the brand association with MTS, a major
operating subsidiary of Sistema.

At the same time, the one-notch difference between the ratings of
Sistema and MTSB reflects the bank's weak performance until
recently, limited franchise and strategic importance for the
group.

The Negative Outlook on the bank's ratings reflects that on
Sistema due to execution risk for the parent's deleveraging
within the next 18-24 months after an expected spike in leverage
in 2018 related to the RUB100 billion settlement payment to
Bashneft.

RATING SENSITIVITIES

IDRs, IDRs and Support Ratings
A downgrade of Sistema would likely result in a similar rating
action on MTSB's support-driven ratings. Failure of the parent to
provide timely support, if needed, could result in a downgrade of
the support-driven ratings.

The rating actions are as follows:

Long-Term IDR: affirmed at 'B+', off RWN; Outlook Negative
Short-Term IDR: affirmed at 'B'
Viability Rating: 'b-'; unaffected
Support Rating: affirmed at '4', off RWN


===========
S E R B I A
===========


JUGOREMEDIJA: Feb. 8 Auction Scheduled for Production Facilities
----------------------------------------------------------------
SeeNews reports that Serbia's Bankruptcy Supervision Agency said
it is selling the production facilities of insolvent
pharmaceutical company Jugoremedija estimated at RSD3.887 billion
(US$40.1 million/EUR32.8 million).

The Bankruptcy Supervision Agency said in a statement on Jan. 19
an auction for the Jugoremedija factory in Zrenjanin, in the
north of the country, will take place on Feb. 8, SeeNews relates.

The Bankruptcy Agency said the list of assets put up for sale
includes the factory's equipment, shares and stocks, as well as
28 vehicles, SeeNews notes.

According to SeeNews, a deposit of RSD777.3 million is required
to participate in the tender.

Jugoremedija was declared bankrupt in November 2016, after which
the Zrenjanin Commercial Court ordered the sale of its assets to
repay creditors, SeeNews recounts.  However, the Zrenjanin
Commercial Court said Jugoremedija's biggest creditor Heta Real
Estate Serbia, a subsidiary of Austria's Heta Asset Resolution,
failed to deliver a viable restructuring plan for the drug maker
within the deadline, SeeNews relays.



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


PMYES SANTANDER 13: Moody's Rates EUR135MM Series C Notes Caa3
--------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the debts issued by FONDO DE TITULIZACION PYMES
SANTANDER 13:

-- EUR2254.5M Series A Notes due May 2043, Definitive Rating
    Assigned A1 (sf)

-- EUR445.5M Series B Notes due May 2043, Definitive Rating
    Assigned B2 (sf)

-- EUR135M Series C Notes due May 2043, Definitive Rating
    Assigned Caa3 (sf)

The transaction is a cash securitisation of standard loans and
credit lines granted by Banco Santander S.A. (Spain)
("Santander", Long Term Deposit Rating: A3 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) a relatively short weighted average
life of around 2.0 years; (ii) a granular pool (the effective
number of obligors over 1,000); (iii) a geographically well-
diversified portfolio; and (iv) refinanced and restructured
assets have been excluded from the pool. However, the transaction
has several challenging features: (i) a strong linkage to
Santander related to its originator, servicer, accounts holder
and liquidity line provider roles; (ii) no interest rate hedge
mechanism in place; and (iii) a complex mechanism that allows the
Issuer to compensate (daily) the increase on the disposed amount
of certain credit lines with the decrease of the disposed amount
from other lines, and/or the amortisation of the standard loans.

Key collateral assumptions:

Mean default rate: Moody's assumed a mean default rate of 8.8%
over a weighted average life of 2.1 years (equivalent to a B1
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 Santander 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 56%, 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
42.5% mean, primarily based on the characteristics of the
collateral-specific loan-by-loan portfolio information,
complemented by the available historical data.

Portfolio credit enhancement: the aforementioned assumptions
correspond to a portfolio credit enhancement of 24%, that takes
into account the current local currency country risk ceiling
(LCC) for Spain of Aa2.

As of December 2017, the audited provisional asset pool of
underlying assets was composed of a portfolio of 61,893 contracts
amounting to EUR3,062 million. In terms of outstanding amounts,
around 80.6% corresponds to standard loans and 19.4% to credit
lines. The top industry sector in the pool, in terms of Moody's
industry classification, is Construction & Building (21.1%). The
top borrower group represents 0.85% of the portfolio and the
effective number of obligors is 2,251.The assets were originated
mainly between 2014 and 2017 and have a weighted average
seasoning of 2.8 years and a weighted average remaining term of
4.0 years. The interest rate is fixed for 20.7% of the pool while
the remaining part of the pool bears a floating interest rate.
Geographically, the pool is concentrated mostly in the regions of
Madrid (22%) and Catalonia (18%). At closing, any loans in
arrears more than 30 days will be excluded from the final pool.

Around 23% of the portfolio is secured by first-lien mortgages
over different types of properties.

Key transaction structure features:

Reserve fund: The transaction benefits from a EUR135 million
reserve fund, equivalent to 5% 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:

Santander will act as servicer of the assets for the Issuer,
while Santander de Titulizaci¢n, S.G.F.T., S.A. (not rated) will
be 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 Santander. There is a sweep
of the funds held in the collection account into the Issuer
account every two days. The Issuer account is held at Santander
with a transfer requirement if the ratings of the account bank
falls below Baa3 or P-3. 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 8.8% used in determining the initial rating was changed to
12.8% and the recovery rate of 42.5% was changed to 32.5%, the
model-indicated rating for Series A and Series B of A1(sf) and
B2(sf) would be A2(sf) and Caa2(sf) respectively.

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.


TDA 27: Fitch Lowers Ratings on Two Note Classes to 'Csf'
---------------------------------------------------------
Fitch Ratings has upgraded TdA 27, FTA's class A2 notes and
downgraded the class C and D notes. Fitch has affirmed TdA 25,
FTA and TdA 28, FTA.  The removal of Rating Watch follows the
implementation of Fitch's new European RMBS Rating criteria,
published on October 27, 2017.

KEY RATING DRIVERS

Asset Performance Stabilising
The transactions were issued at or around the peak of the
previous Spanish real estate cycle. The loan portfolios have
therefore experienced falling market prices and low realised
recovery rates on the substantial foreclosure activity that
occurred after the financial and sovereign crisis. The performing
part of the TdA mortgage pools comprise a significant portion
(86% of current balance for TdA 25, 16% for TdA 27, 37% for TdA
28) of loans originated by Credifimo, a specialised lender
targeting mainly non-prime low income borrowers. Exposure to
these loans is a key driver of the weak performance. Cumulative
gross default levels are stabilising and delinquencies are
decreasing in all three transactions, but incoming recoveries
remain low.

Large Deficiency Ledgers, Depleted Reserve Funds
The outstanding amortisation deficits remain elevated but have
stopped increasing, and the reserve funds are fully depleted. As
a result, available excess spread and enforcement proceeds are
key elements for repayment of the notes.

Performance-based Principal Allocation for TdA 27
TDA 27's class A2 and A3 notes have been repaying sequentially
since transaction closing, but would rank pro-rata upon breach of
a delinquency ratio (set at 6% of outstanding portfolio balance).
The ratio currently stands at 0.35%. In Fitch's 'Bsf' cash-flow
projections, available principal funds are sufficient to repay
the class A2 notes.

Expected Performance for TdA 25 and TdA 28
The notes' ratings are distressed, while Fitch's sector-specific
RMBS criteria do not explicitly include assumptions for rating
scenarios below 'Bsf'. Therefore, in line with its Global
Structured Finance Rating Criteria, Fitch has made projections of
the portfolio's expected future performance based on the current
circumstances, without applying additional stress.

Fitch estimated a foreclosure frequency rate for each portfolio,
based on its annualised cumulative default rate multiplied by
each weighted average life based on the portfolio amortisation,
subject to a floor (10%) and a cap (30%) derived from the
historical performance of Spanish RMBS transactions. Fitch
assumed a recovery rate of 45% on outstanding and future
defaults. This estimate was based on historical observations, but
also takes into account the continued positive momentum in the
Spanish real estate market, as highlighted by Fitch in its annual
outlook in December 2017
(https://www.fitchratings.com/site/re/906817).

Fitch multiplied the derived foreclosure frequency rates by 2 to
infer default expectations for the outstanding late delinquencies
(claims currently in arrears for more than three months). Fitch
did not consider excess spread as floor clauses in Spanish
mortgage contracts might be invalid in future leading to lower
interest income for the SPVs. Furthermore, the cash flow impact
of structural features, such as liquidity facility payments and
reserve funds were taken into account in case they have a
repayment impact on the most senior class of notes. Fitch used
the outcomes of these calculations as an indication of the
ability to repay the respective class A notes.

VARIATIONS FROM CRITERIA
None

RATING SENSITIVITIES

TDA 27's class A2 notes are sensitive to the timing and magnitude
of arrears as the pro rata trigger might stop sequential
principal allocation. In case of a prolonged trigger breach over
the short to medium term, a downgrade of this class is likely.

The transactions are sensitive to the development of the Spanish
real estate prices as all transactions have a large backlog of
defaulted loans and repossessed properties, whose realised
recoveries cash flows can impact the ratings of the most senior
classes of notes, if significantly above Fitch's expectations.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pools ahead of the transactions'
initial closing. The subsequent performance of the transactions
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

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

SOURCES OF INFORMATION

The information below was used in the analysis.
- TdA 25: Issuer and servicer reports dated 31 December 2017 and
   provided by Titulizacion de Activos, SGFT.
- TdA 27: Issuer and servicer reports dated up to 31 December
   2017 and provided by Titulizacion de Activos, SGFT.
- Loan level data dated August 2017 was used to run the
   ResiGlobal Model and the data source was Titulizacion de
   Activos, SGFT.
- TdA 28: Issuer and servicer reports dated 31 October 2017 and
   provided by Titulizacion de Activos, SGFT.

MODELS
EMEA Cash Flow Model.

ResiEMEA.

The rating actions are as follows:

TDA 25:
Class A (ISIN ES0377929007) affirmed at 'Csf'; Recovery Estimate
45%; off Rating Watch Evolving (RWE)
Class B (ISIN ES0377929015) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class C (ISIN ES0377929023) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class D (ISIN ES0377929031) affirmed at 'Csf'; Recovery Estimate
0%; off RWE

TDA 27:
Class A2 (ISIN ES0377954013) upgraded to 'Bsf' from 'CCCsf';
Outlook Stable; off RWE
Class A3 (ISIN ES0377954021) affirmed at 'CCCsf'; Recovery
Estimate raised to 95% from 65%; off RWE
Class B (ISIN ES0377954039) affirmed at 'CCsf'; Recovery Estimate
0%; off RWE
Class C (ISIN ES0377954047) downgraded to 'Csf' from 'CCsf';
Recovery Estimate 0%; off RWE
Class D (ISIN ES0377954054) downgraded to 'Csf' from 'CCsf';
Recovery Estimate 0%
Class E (ISIN ES0377954062) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class F (ISIN ES0377954070) affirmed at 'Csf'; Recovery Estimate
0%; off RWE

TDA 28:
Class A (ISIN ES0377930005) affirmed at 'CCsf'; Recovery Estimate
55%; off RWE
Class B (ISIN ES0377930013) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class C (ISIN ES0377930021) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class D (ISIN ES0377930039) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class E (ISIN ES0377930047) affirmed at 'Csf'; Recovery Estimate
0%; off RWE
Class F (ISIN ES0377930054) affirmed at 'Csf'; Recovery Estimate
0%; off RWE


===========
S W E D E N
===========


ELLEVIO AB: S&P Rates Class B Subordinated Debt 'BB+'
-----------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue credit rating to the
subordinated debt (class B) that is part of the EUR 10 billion
Euro Medium-Term Note (EMTN) program of Swedish electricity
distribution system operator Ellevio AB.

At the same time, S&P affirmed its 'BBB' rating on Ellevio's
senior secured debt (class A). The outlook on the senior secured
debt is stable.

S&P said, "The 'BBB' rating on the senior secured debt reflects
our 'bbb-' assessment of the stand-alone credit profile (SACP) of
Ellevio's financing group plus one notch of uplift for structural
enhancements. The 'BB+' rating on the subordinated debt program
reflects the 'bbb-' subordinated SACP on the company. We note
Ellevio currently does not have any outstanding subordinated
debt, but we understand that the amended EMTN program would
likely be followed by issuance in the near term, subject to
market conditions.

"The class A debt reflects our forecast ratios for the company
based on senior debt only, whereas the rating on the class B debt
is based on ratios including both senior and subordinated debt.
We see no material difference between the two ratios, and
therefore the SACP and subordinated SACP are at the same level.
In addition, the rating on the subordinated debt is constrained
by the risk of nonpayment as Ellevio could defer principal and
interest in case of insufficient funds.

"In our view, Ellevio's business risk profile benefits from fully
regulated electricity distribution operations, with natural
monopoly positions in its service areas. We view the Swedish
regulatory framework for electricity distribution as stable,
transparent, and predictable, with a long track record. This is
despite some modifications in methodology between regulatory
periods and minor weaknesses relating to customer compensation in
the event of longer unplanned outages.

"We anticipate increases in EBITDA and funds from operations
(FFO) over the next few years, relating to price increases, a
growing asset base, and the now-consolidated NynÑshamn Energi (a
regulated distribution network acquired in late 2016). We expect,
however, that FFO to debt will stay between 6.0% and 8.0% through
2019 because we anticipate Ellevio will continue investing
heavily in its network and returning substantial cash to
shareholders, primarily through payments on shareholder loans. At
the same time, we note that capital expenditures (capex) should
be added to the regulatory asset base and therefore increase the
allowed regulatory return. We also understand that Ellevio's
shareholder returns are flexible and can be reduced if needed to
preserve credit ratios (before reaching dividend lock-up levels).

"The stable outlook on Ellevio's senior secured debt reflects the
group's steady and predictable earnings, supported by a favorable
regulatory framework. We anticipate that Ellevio will maintain
credit measures, such as FFO to debt of at least 6%, which we see
as the minimum level commensurate with the ratings.
Downside risk would primarily relate to any unexpected
unfavorable changes to the regulatory framework for Ellevio,
which could cause earnings volatility or deterioration, with a
subsequent negative impact on credit measures. A material
acquisition or excessive shareholder returns could also create
rating pressure. We could consider a lower rating if, for
example, FFO to debt decreased to below 6% for a prolonged
period.

"We currently see limited upside potential, reflecting our view
of Ellevio's financial policy and covenant structures. A positive
rating action could materialize, however, if credit measures were
to strengthen sustainably, for example, on the back of lower
dividends resulting in reduced debt. We could consider a higher
rating on the class A debt if the group's financial risk profile
improved, reinforced by the group's financial policy, resulting
in a ratio of senior FFO to debt of sustainably above 8% (that is
excluding the class B debt)."

Raising the rating on the class B debt would hinge on a stronger
subordinated SACP, as well as stronger SACP and rating on the
class A debt.


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


AKIBANK: Moody's Lowers Long-Term Deposit Ratings to Caa1
---------------------------------------------------------
Moody's Investors Service downgraded Akibank's long-term local
and foreign-currency deposit ratings to Caa1 from B3, baseline
credit assessment (BCA) and adjusted BCA to caa1 from b3, and
long-term Counterparty Risk Assessment (CRA) to B3(cr) from
B2(cr). At the same time, Akibank's short-term Not Prime deposit
ratings and short-term Not Prime(cr) CRA were affirmed. The long-
term deposit ratings outlook has changed to negative from stable.

A full list of affected rating can be found at the end of this
press release.

RATINGS RATIONALE

The rating action reflects Akibank's high share of related-party
lending exposures, which are likely to pose an increased risk to
the bank following the recent failure of the insurance company
ASKO (not rated), which was until late 2017 an affiliate of
Akibank.

Moody's considers that, in substance, related-party lending at
Akibank is higher than currently reported, as several of the
bank's customers have connections to the bank's shareholders.
Although reported related-party exposures under IFRS amounted to
a relatively modest 15% of shareholders' equity as of October 1,
2017, the rating agency considers the economic links to related
parties to be considerably more extensive.

Many of these related party exposures are longstanding, but in
Moody's judgment the regulatory risk to Akibank has increased
given the failure of the insurer ASKO. Until November 2017, ASKO
was 17.9% owned by Akibank, with the remainder held by other
parties connected to the bank, before being sold to the new
owners. A month later, on 25 December, ASKO was placed under
financial administration by the Central Bank of Russia. Moody's
believes that the close association between Akibank and the
failed insurer increases the likelihood of litigation and
regulatory risks for the bank, and could result in a damage to
the bank's reputation with volatility in deposit funding base.

Beyond the above concerns, Akibank's asset quality worsened in
2017 given a number of failures of both corporates and other
banks in the Tatarstan region. Consequently, Akibank's problem
loans (including loans more than 90 days overdue and restructured
loans) increased to 10.5% of gross loans as of 1 Dec 2017, from
9.3% as of end-2016, mainly driven by the default of a large
borrower following the failure of a regional bank. These
developments are in part mitigated by a relatively good level of
provision coverage of 92% under IFRS.

Although Akibank currently reports ample capital adequacy ratios,
with regulatory core Tier 1 and total capital ratios of 17% and
18.9% respectively as of December 1, 2017, in Moody's view its
economic capitalization is weaker than this suggests, given the
high related-party exposures and single-name credit
concentrations.

OUTLOOK

The negative outlook on the long-term deposit ratings reflects
contingent risks to bank's reputation following the failure of
its formerly affiliated insurance company, which may lead to
possible volatility in the client base and deposits outflow, as
well as possible adverse regulatory actions.

WHAT COULD MOVE THE RATINGS UP / DOWN

A ratings upgrade on Akibank's ratings is unlikely in the near
term, given the current negative outlook. Moody's may return the
outlook to stable if the agency considers that the risk to the
bank's reputation is diminished, with reduced related-party
exposures and single-name concentrations.

Akibank's ratings could be downgraded in case of clients
volatility, reduced liquidity, adverse regulatory actions, a
material erosion of the bank's capital, or higher impairment
charges.

LIST OF AFFECTED RATINGS

Downgrades:

-- LT Bank Deposits, Downgraded to Caa1 from B3, Outlook changed
    To Negative From Stable

-- Adjusted Baseline Credit Assessment, Downgraded to caa1 from
    b3

-- Baseline Credit Assessment, Downgraded to caa1 from b3

-- LT Counterparty Risk Assessment, Downgraded to B3(cr) from
    B2(cr)

Affirmations:

-- ST Bank Deposits, Affirmed NP

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

Outlook Actions:

-- Outlook, Changed To Negative From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in September 2017.


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


AL GORDON: Employees Remain Unpaid Following Liquidation
--------------------------------------------------------
James Trimble at The Falkirk Herald reports that employees of
sheet metal fabricator AL Gordon Engineering were "booted out the
door" without pay when the company went into liquidation and are
still waiting for their redundancy forms.

The company was wound up on Thursday, Jan. 11, and Robert
Gardiner -- rgardiner@thomsoncooper.com -- of Dunfermline-based
insolvency practitioner Thomson Cooper Accountants, was appointed
as the provisional liquidator, The Falkirk Herald relates.

According to The Falkirk Herald, Mr. Gardiner said: "Various
options were explored to allow the company to continue to trade
but unfortunately none were viable.  The company has ceased
trading and regrettably 35 staff have been made redundant."


EUROSAIL-UK 2007-5NP: S&P Affirms D Ratings on 3 Note Classes
-------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on all Eurosail-UK
2007-5NP PLC's classes of notes.

S&P said, "The affirmations follow our credit and cash flow
analysis of the transaction using the most recent information
that we have received under our relevant criteria."

The servicer, Acenden Ltd., reports arrears to include amounts
outstanding, delinquencies, and other amounts owed. The
servicer's definition of other amounts owed includes (among other
items) arrears of fees, charges, costs, ground rent, and
insurance. Delinquencies include principal and interest arrears
on the mortgages, based on the borrowers' monthly installments.
Amounts outstanding are principal and interest arrears, after the
servicer first allocates borrower payments to other amounts owed.

In this transaction, the servicer first allocates any arrears
payments to other amounts owed, then to interest amounts, and
subsequently to principal. From a borrower's perspective, the
servicer first allocates any arrears payments to interest and
principal amounts, and then to other amounts owed. This
difference in the servicer's allocation of payments for the
transaction and the borrower results in amounts outstanding being
greater than delinquencies.

S&P said, "We have refined our analysis of these other amounts
owed by using the available reported loan-level data. The new
approach results in a decrease in both the weighted-average
foreclosure frequency (WAFF) and the weighted-average loss
severity (WALS) in this transaction.

90+ day delinquencies, which exclude other amounts owed,
decreased to 8.6% in December 2017 from 9.2% in June 2016. The
decrease in 90+ day delinquencies is in line with our U.K.
nonconforming residential mortgage-backed securities (RMBS)
index, in which 90+ day delinquencies decreased to 6.6% in
November 2017 from 9.9% in June 2016. In light of the
transaction's stable collateral performance, S&P has not
projected arrears in its analysis over the next year.

  Rating level       WAFF        WALS
                       (%)        (%)
  AAA                29.19      40.10
  AA                 23.74      32.74
  A                  19.37      20.72
  BBB                15.66      14.22
  BB                 11.82      10.04
  B                  10.26       6.91

The transaction is paying pro rata as all the required conditions
are satisfied.

S&P said, "Our credit stability analysis indicates that the
maximum projected deterioration that we would expect at each
rating level over one and three-year periods, under moderate
stress conditions, is in line with our credit stability criteria.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class A1a and A1c notes is
commensurate with the currently assigned 'B- (sf)' ratings. The
pool's asset performance is stable, the reserve fund is fully
funded, and prepayments are low. Therefore, we do not expect the
issuer to be dependent upon favorable business, financial, and
economic conditions to meet its financial commitments on these
classes of notes within the next 12 months.

"In accordance with our criteria on 'D' ratings, we have affirmed
our 'D (sf)' ratings on the class B1c, C1c, and D1c notes as they
all recorded write-downs when the transaction was restructured."

Eurosail-UK 2007-5NP securitizes U.K. nonconforming residential
mortgages originated by Southern Pacific Mortgages Ltd.,
Preferred Mortgages Ltd., and Alliance & Leicester PLC.

RATINGS LIST

  Class    Rating

  Eurosail-UK 2007-5NP PLC
  GBP575 Million Mortgage-Backed Floating-Rate Notes

  Ratings Affirmed

  A1a      B- (sf)
  A1c      B- (sf)
  B1c      D (sf)
  C1c      D (sf)
  D1c      D (sf)


JAMIE OLIVER: To Close 12 Restaurants as Part of CVA
----------------------------------------------------
Doug Faulkner at Eastern Daily Press, reports that Jamie Oliver's
restaurant chain has announced it will cut 12 sites as part of a
restructure -- but its Norwich eatery will stay put.

According to Eastern Daily Press, Jamie Oliver Restaurant Group,
which has a Jamie's Italian restaurant in the Royal Arcade in
Norwich city centre, has said it will close restaurants at Bath,
Bristol, Bluewater, Chelmsford, Greenwich, Harrogate, Kingston,
Milton Keynes, Piccadilly Diner, Reading, St Albans and
Threadneedle St as part of a company voluntary arrangement (CVA).

The remaining 25 sites and international business will be
unaffected and continue to trade normally, Eastern Daily Press
discloses.


JOE DELUCCI'S: Bought Out of Administration, 38 Jobs Saved
----------------------------------------------------------
James Ridler at FoodManucture.co.uk reports that ice cream
supplier Joe Delucci's Gelato has been bought out of
administration by a group of investors led by the firm's former
operations manager Alexandar Beer.

The transaction saved 38 jobs at the company, FoodManucture.co.uk
discloses.

According to FoodManucture.co.uk, the company fell into
administration after its original efforts to agree a Company
Voluntary Arrangement in November failed when it did not gain the
support of a sufficient number of major creditors.

Craig Povey -- cpovey@cvr.global -- and Richard Toone --
rtoone@cvr.global -- partners at insolvency and restructuring
firm CVR Global, were appointed administrators on Jan. 8,
FoodManucture.co.uk relates.

Mr. Povey blamed the company's downturn in profits on the
weakening of the pound against the euro in the aftermath of the
UK's vote to leave the EU in June 2016, FoodManucture.co.uk
notes.


TULLOW OIL: Moody's Hikes CFR to B1, Alters Outlook to Stable
-------------------------------------------------------------
Moody's Investors Service has upgraded Tullow Oil plc Corporate
Family Rating (CFR) to B1 from B2 and probability of default
rating (PDR) to B1-PD from B2-PD. Concurrently, the ratings on
its USD650 million 2020 and USD650 million 2022 senior unsecured
global notes were upgraded to B3 from Caa1. The outlook on all
Tullow's ratings was changed to stable from positive.

RATINGS RATIONALE

The upgrade of the rating to B1 from B2 mainly reflects all the
positive developments in 2017 which strengthened the financial
profile of the company. Moody's expects adjusted gross
debt/EBITDA to fall to around 3.2x in 2017 after peaking at 5.5x
in 2016, mainly due to higher production from TEN and higher oil
prices. The deleveraging was also a result of the successful
rights issue raising net proceeds of $721 million in March 2017
which allowed the company to reduce debt. The company's liquidity
profile was also strengthened after the successful refinancing of
the Reserve Based Lending (RBL) facility in November 2017 with a
three year grace period until October 2020. The B1 rating
reflects the stronger financial and liquidity profile which
should provide the company with greater operational flexibility
to grow the business and consider the acceleration of investment
in projects and selective growth opportunities.

The upgrade of the rating to B1 reflects (a) its solid business
profile with sizeable oil and gas resource base (b) its growing
low cost production offshore Ghana, with TEN fields ramping-up in
2017-18 (c) successful exploration programme and strong execution
track-record, with significant oil discoveries in Uganda and
Kenya, that underpin the company's long-term production growth
trajectory, and (d) proactive steps taken by the company to
manage its liquidity position in 2017 and a prudent hedging
programme which covers approximately 60% of its oil sales each
year. However, Tullow's rating demonstrates a linkage to the
sovereign rating of Ghana (B3, stable) given its sizable country
exposure expected to account for around 69% of production in 2017
and therefore a further upgrade of the B1 rating is unlikely.

TEN produced first oil in August 2016 with production ramping-up
in 2017. The resolution of the border dispute between Ghana and
Cote d'lvoire (Ba3, stable) should enable the company to resume
drilling and ramp-up its production at TEN further in 2018-19.
Production issues at the Jubilee field due to the Turret issue
were mitigated as insurance proceeds were received in 2017. The
company is expected to receive further insurance proceeds in 2018
as related production losses and additional costs are incurred.
Moody's expects the company's total production volumes in 2018 at
around 84,000-90,000 BOE/day, including insurance compensation,
from 94,700 BOE/day in 2017, a slight decline due to reduced
production from West African non-operated assets. Capital
investment was reduced to $460 million in 2017. This combined
with strong operational performance should allow the company to
return to positive FCF of around $500 million in 2017 and remain
FCF positive in the range of around $150-250 million in 2018-19.
Assuming an oil price of around $55/bbl in 2018-19, adjusted
gross debt/EBITDA is expected to be at around 3.2x in 2017,
declining marginally to around 3.5x in 2018-19 from 5.5x in 2016.

Low operating costs continue to underpin strong profitability of
the business with unleveraged cash margin expected to remain
above $30/bbl in 2017-19. The company also retains sufficient
operating diversity and flexibility to divest or reduce stakes in
production assets, if necessary, as evident by the farm-down of
its assets in Uganda to Total S.A. (Aa3, stable) and CNOOC (A1,
stable) for $900 million, out of which $100 million as upfront
cash at closing, $50 million at both FID and first oil and $700
million as deferred consideration.

Tullow's liquidity profile is considered as good supported by
reported cash balance of $318 million as of June 2017. Free cash
flow (FCF) is expected to be around $500 million in 2017 and
$150-250 million in 2018-19, assuming TEN ramp-up is in line with
expectations. The company successfully refinanced its RBL
facility at $2.5 billion, with first amortisation in October 2020
with no material near term debt maturities. Moody's expects the
company should be able to fund its needs in 2018 from its
internal sources. The company has combined availabilities of $900
million under the RBL facility and the Revolving credit facility
(RCF) as of year-end 2017.

Structural Considerations

The B3 ratings on $650 million 2020 and $650 million 2022 senior
unsecured notes reflect that the notes are senior subordinated
obligations of the respective guarantors and are subordinated in
right of payment to all existing and future senior obligations of
those guarantors, including their obligations under the RBL and
Corporate secured revolving bank facilities. The two notch
difference between the B3 rating on the notes and the CFR of B1
reflects the large amount of RBL of $2.5 billion and RCF of $600
million ranking ahead of the notes.

Stable outlook

The stable outlook reflects the company's ability to maintain its
improved financial profile with adjusted gross debt/EBITDA at
around 3.5x with positive FCF generation expected in 2018-19. The
outlook also reflects expectations that the company should be
able to maintain its adequate liquidity profile at all times.

What Could Take the Rating Up

An upgrade of the rating is unlikely at this stage given the
company's linkage to Ghana (B3, stable) due to the sizable
country exposure. A de-linkage from Ghana would require a
material geographical diversification. An upgrade would also
require a strong sustained liquidity position, maintaining
positive FCF generation and deleveraging with adjusted gross
debt/EBITDA below 3.0x and adjusted RCF/Debt above 25%.

What Could Take the Rating Down

The B1 ratings could come under pressure should Tullow suffer
significant delays in progressing with its drilling activities
and the ramp up of its TEN project resulting in negative FCF
generation with adjusted gross debt/EBITDA sustained above 4.0x
and adjusted RCF/debt below 15%. Pressure on liquidity could also
result in a downgrade of the ratings. The rating could be
downgraded if Moody's lower Moody's rating of Ghana (B3 stable).

The principal methodology used in these ratings was Independent
Exploration and Production Industry published in May 2017.

Tullow Oil plc is a leading UK based exploration and production
oil and gas company. Its main production assets are located in
West Africa (Ghana, Gabon, Equatorial Guinea, Cìte d'Ivoire,
Congo and Mauritania) and its gas assets are in the UK and the
Netherlands. The company holds 102 licences across 18 countries.
In 2017, the company is expected to report an average production
(on a working interest basis) of 94,700 barrels of oil equivalent
per day (including insurance proceeds) and revenues of $1.7
billion. As of June 2017, 2P (proved plus probable) reserves
amounted to 293.4 million barrels of oil equivalent. Tullow is
listed on the London, Irish and Ghana Stock Exchanges.


===================
U Z B E K I S T A N
===================


ZIRAAT BANK: Moody's Hikes Long-Term LC Deposit Rating to B1
------------------------------------------------------------
Moody's Investors Service has upgraded the long-term local-
currency deposit rating of Ziraat Bank Uzbekistan JSC to B1 from
B2. The bank's baseline credit assessment (BCA) of b3 was
affirmed, while its adjusted BCA was upgraded to b1 from b2. The
rating agency has also upgraded Ziraat Bank Uzbekistan JSC's
long-term Counterparty Risk Assessment (CR Assessment) to Ba3(cr)
from B1(cr) and affirmed the long-term foreign-currency deposit
rating of B2, short-term deposit ratings of Not Prime as well as
the short-term CR Assessment of Not Prime(cr). The outlook on the
bank's long-term deposit ratings is stable.

A list of affected ratings can be found at the end of this press
release.

RATINGS RATIONALE

The upgrade of Ziraat Bank Uzbekistan JSC 's (formerly known as
Uzbek-Turkish bank) local currency deposit rating to B1 and
adjusted BCA to b1 is driven by the change in Moody's assumption
for affiliate support to high from moderate and follows the
recent confirmation that its Turkish shareholder T.C. Ziraat
Bankasi (local currency deposit Ba1 negative; BCA ba2), increased
its equity stake in Ziraat Bank Uzbekistan JSC to 100% from 50%
and has become the sole shareholder of its Uzbek subsidiary.

This acquisition highlights the strategic importance of Uzbek
market for Ziraat Group, intention to increase its presence in
the region and prompted the rating agency to revise its
assumption for affiliate support and incorporate two notches of
uplift from the bank's BCA of b3. This reflects the full control
and ownership of Ziraat Bank Uzbekistan by T.C. Ziraat Bankasi
and Moody's expectation that Uzbek subsidiary will receive a high
level of support from its parent bank in case of need, given its
strategic importance, as well as reputational risks stemming from
sharing Ziraat brand in Uzbekistan.

The stable outlook on the deposit ratings reflects Moody's view
that upside and downside risks to the ratings are currently
balanced, while the bank's BCA remains constrained by low
diversification of its business operations (in terms of assets
and liabilities) and high appetite for credit risk. At the same
time, its standalone credit profile is underpinned by the bank's
sustainable profits generation, sound capital position and
adequate liquidity profile.

WHAT COULD MOVE THE RATINGS DOWN / UP

Ziraat Bank Uzbekistan's local currency deposit rating is
constrained by the parent bank's BCA and a negative outlook on
the parent bank's ratings. Moody's could upgrade Ziraat Bank
Uzbekistan's standalone BCA if the bank, under its new ownership,
pursues prudent development strategy, maintains sustainable good
financial fundamentals, improves its business diversification and
customer funding base. Ziraat Bank Uzbekistan's deposit ratings
could be downgraded in case of (1) adverse changes in the
affiliate support assumptions; (2) material deterioration in
asset quality or liquidity profile, which would result in
increasing reliance on extraordinary support from its parent.

Headquartered in Tashkent, Uzbekistan, Ziraat Bank Uzbekistan
reported total assets of UZS 445.3 billion ($55.7 million) as of
October 31, 2017.

As of September 30, 2017, T.C. Ziraat Bankasi A.S. reported total
consolidated assets of TRY427.6 billion ($120.2 billion) and was
the largest bank in Turkey in terms of deposits, assets, and
loans.

LIST OF AFFECTED RATINGS

Issuer: Ziraat Bank Uzbekistan JSC

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to B1 from B2,
    Outlook remains Stable

-- Adjusted Baseline Credit Assessment, Upgraded to b1 from b2

-- LT Counterparty Risk Assessment, Upgraded to Ba3(cr) from
    B1(cr)

Affirmations:

-- LT Bank Deposits (Foreign Currency), Affirmed B2, Outlook
    remains Stable

-- ST Bank Deposits, Affirmed NP

-- Baseline Credit Assessment, Affirmed b3

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

Outlook Actions:

-- Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in September 2017.


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


* 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 widened 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 do 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 2018.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *