/raid1/www/Hosts/bankrupt/TCREUR_Public/180131.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, January 31, 2018, Vol. 19, No. 022


                            Headlines


A U S T R I A

STEINHOFF INT'L: Austrian Unit Secures Money to Keep Operating


A Z E R B A I J A N

INTERNATIONAL BANK: Moody's Hikes LT Deposit Rating to B3


F R A N C E

ASCOMETAL: Court Picks Schmolz + Bickenbach as Winning Bidder
FINANCIERE LULLY: Moody's Alters Outlook to Neg., Affirms B2 CFR
KAPLA HOLDING: Moody's Assigns B1 CFR, Outlook Stable
RCI BANQUE: Moody's Affirms (P)Ba1 Prog. Rating, Outlook Positive


G E R M A N Y

AIR BERLIN: Deadline to Register Claims on Feb. 1


I R E L A N D

ALFA BOND: Fitch Rates Planned Perpetual AT1 Notes 'B(EXP)'
GLG EURO IV: Moody's Assigns (P)B2 Rating to Class F Jr. Notes
ST. PAUL'S III-R: Moody's Assigns (P)B2 Rating to Class F-R Notes


I T A L Y

BANCA CARIGE: Fitch Corrects January 16 Rating Release


L U X E M B O U R G

CCP LUX: Moody's Assigns First-Time B3 CFR, Outlook Stable


N E T H E R L A N D S

CREDIT EUROPE: Moody's Extends Review of Ba2 Deposit Ratings
STORM 2018-I: Moody's Assigns Ba1 Rating to Class E Notes


R U S S I A

RUSSIA: Moody's Alters Outlook on Ba1 LT Issuer Rating to Pos.
TRANSMASHHOLDING CJSC: Fitch Affirms BB- IDR, Outlook Positive


S W E D E N

ALIGERA HOLDING: To File for Bankruptcy Following Insolvency


T U R K E Y

EXPORT CREDIT: Moody's Affirms Ba1 Long-Term FCR Issuer Rating


U N I T E D   K I N G D O M

ALGECO SCOTSMAN: Fitch Assigns 'B(EXP)' LT Issuer Default Rating
CARILLION PLC: FRC Launches Investigation Into KPMG's Audit
CARILLION PLC: Union Calls for Investigation Into Blackrock
JERROLD FINCO: Fitch Rates GBP100MM Sr. Secured Notes 'BB(EXP)'
MB AEROSPACE: Moody's Assigns B2 Corporate Family Rating


                            *********



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A U S T R I A
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STEINHOFF INT'L: Austrian Unit Secures Money to Keep Operating
--------------------------------------------------------------
Kirsti Knolle at Reuters reports that Steinhoff's Austrian unit
Kika/Leiner has secured enough money to keep going for up to 24
months and plans to invest in its logistics and online presence
to ensure growth, managing director Gunnar George said.

Steinhoff, which owns more than 40 brands including Poundland in
Britain, admitted accounting irregularities last month, sparking
an 85% share price slide that wiped more than US$10 billion off
its market capitalization, Reuters recounts.

According to Reuters, Mr. George said expanding its online
presence, improving its logistics and making sure every single
branch worked efficiently were the top priorities in the coming
months.

As reported by the Troubled Company Reporter on Jan. 3, 2018,
Moody's Investors Service downgraded the ratings of Steinhoff
International Holdings N.V. (Steinhoff) and Steinhoff Investment
Holdings Limited by assigning Caa1 Corporate Family Ratings to
the two companies and B3.za national scale Corporate Family
Rating to Steinhoff Investment Holdings Limited.  At the same
time, Moody's downgraded the backed senior unsecured notes rating
of Steinhoff Europe AG to Caa1 from B1.  Moody's also assigned
Caa1-PD probability of default ratings (PDR) to Steinhoff and
Steinhoff Investment Holdings Limited.


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


INTERNATIONAL BANK: Moody's Hikes LT Deposit Rating to B3
---------------------------------------------------------
Moody's Investors Service upgraded the long-term foreign- and
local-currency deposit ratings of International Bank of
Azerbaijan (IBA) to B3 from Caa1. IBA's baseline credit
assessment (BCA) was upgraded to caa2 from caa3 and the long-term
counterparty risk assessment (CRA) to B2(cr) from B3(cr). The
long-term deposit ratings continue to carry a positive outlook.
The bank's Not Prime short-term deposit ratings and Not Prime(cr)
short-term CRA were affirmed.

RATINGS RATIONALE

The rating action reflects the completion of IBA's restructuring,
with capital adequacy restored to a level above minimum
regulatory requirements, an improved loan book quality following
the finalization of the sale of bad assets, and an improved
funding structure providing reduced funding costs. At the same
time, the bank's ratings remain constrained by a still large open
foreign-currency position and uncertainty regarding bank's future
development amid currently challenging economic conditions in
Azerbaijan.

IBA reported significantly improved capitalization at January 4,
2018, with a regulatory Tier 1 ratio of 20.8%. This was achieved
by a gain from its completed debt exchange offer, the release of
loan-loss reserves following the transfer of bad assets, as well
as reduced funding costs and lower risk-weighted assets (RWAs).
Moody's estimates Tangible Common Equity to RWAs to be at around
16.8% as of end-2017, which compares well with other banks in the
CIS region.

Nevertheless, in Moody's view, the bank's capital remains
vulnerable to the open short foreign-exchange position of AZN3.2
billion, which is five times its Tier 1 regulatory capital and
would likely create significant losses in the event of a local
currency depreciation, although the bank states it plans to hedge
this risk with the Ministry of Finance in the first half of 2018.

The quality of IBA's loan book significantly improved following
the sale of bad assets. At AZN1.8 billion it represented just 21%
of the bank's total assets as of end-2017 under local GAAP. The
book mainly consists of loans to government-related companies and
individuals. The remaining impaired loans on the bank's balance
sheet are now fully provisioned, with loan loss reserves
amounting to 15% of gross loans. The rest of the bank's assets
pose relatively little risk, comprising manat-denominated
deposits held at the Central Bank of Azerbaijan (37%), FX
accounts at foreign banks (22%), and promissory notes guaranteed
by the state (13%). Although the bank's current asset quality is
fair, Moody's believes there is uncertainty about the bank's
future development, given limited lending opportunities amid
challenging operating environment in Azerbaijan.

IBA's core recurring profitability improved following the
restructuring, thanks to decreased funding and operational costs,
and the replacement of non-accrual problem loans by yielding
liquid assets. As a result, the bank's recurring pre-provision
income (made up of net interest income and commissions less
operating expenses) improved to AZN84 million in 2017 compared to
its loss-making state in 2016. Moody's expects bank's
profitability to be constrained by its bias to low risk, low
return assets, and likely hedging costs.

The bank's funding structure improved following the completion of
the debt restructuring with market funds/tangible assets reduced
to 24% of total assets as of end-2017, from 40% as of end-2016.
The bank's liquidity cushion is kept high amid limited lending
prospects.

GOVERNMENT SUPPORT

Moody's incorporates a high likelihood of government support in
IBA's B3 deposit ratings, resulting in two notches of uplift from
the caa2 BCA. This is based upon the government's 95% controlling
stake in the bank; IBA's still significant 31% market share by
assets, as the largest bank in Azerbaijan; and the government's
track record of providing financial support to the bank's deposit
holders, who were not affected by the 2017 debt restructuring.

OUTLOOK

The positive outlook on IBA's long-term deposit ratings reflects
Moody's expectations of a further improvement in the bank's
business and financial profiles if it reduces its foreign-
currency risk and resumes business growth with prudent risk
appetite.

WHAT COULD MOVE THE RATINGS DOWN / UP

Moody's may upgrade IBA's ratings if it (1) decreases FX risks by
hedging or reducing its open FX position; (2) maintains a modest
appetite for risk in its future business development; and (3)
sustains the adequate level of asset quality, profitability and
capitalization.

The outlook on the bank's ratings may be changed to stable if the
bank fails to hedge the FX position and/or support from the
government does not materialize.

LIST OF AFFECTED RATINGS

Issuer: International Bank of Azerbaijan

Upgrades:

-- LT Bank Deposits, Upgraded to B3 from Caa1, Outlook remains
    Positive

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

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

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

Affirmations:

-- ST Bank Deposits, Affirmed NP

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

Outlook Actions:

-- Outlook, Changed to Positive from Positive(m)

PRINCIPAL METHODOLOGY

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


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


ASCOMETAL: Court Picks Schmolz + Bickenbach as Winning Bidder
-------------------------------------------------------------
Gilbert Reilhac at Reuters reports that Swiss company Schmolz +
Bickenbach has been chosen by a Strasbourg court to buy troubled
French steelmaker Ascometal, the court said on Jan. 29, with
Schmolz + Bickenbach's bid prevailing over a rival one from
Liberty House.

Ascometal, which makes specialty steel and employs around 1,300
workers, filed for court protection last November, and takeover
offers for the company had come under the scrutiny of the
Strasbourg court, Reuters recounts.

Like Ascometal, Schmolz + Bickenbach is a producer of specialist
steel products, Reuters notes.

Liberty House, which has been snapping up distressed steel and
aluminum assets around the world, had emerged as a top contender
to take over Ascometal alongside Schmolz + Bickenbach, Reuters
states.


FINANCIERE LULLY: Moody's Alters Outlook to Neg., Affirms B2 CFR
----------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook on the ratings of Financiere Lully C (Linxens or the
company) and on the rated instruments raised by its subsidiaries.
Concurrently, Moody's has affirmed Linxens' B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR). In
addition, Moody's has affirmed the B1 instrument rating assigned
to the USD544.9 million First Lien Term Loan B-3 raised by Lully
Finance LLC and to the EUR440 million First Lien Term Loan B-4
and EUR125 million revolving credit facility (RCF) raised by
Lully Finance S.A.R.L. The rating agency has also affirmed the
Caa1 instrument rating assigned to the USD200.6 million Second
Lien Term Loan B-1 raised by Lully Finance LLC and to the EUR35
million Second Lien Term Loan B-2 raised by Lully Finance
S.A.R.L.

RATINGS RATIONALE

The rating action reflects (1) the lack of de-leveraging of the
group from an elevated level over the last twelve months with
Moody's adjusted gross leverage (as adjusted mainly for operating
leases and pensions) estimated at c.6.7x as of the end of Q3 2017
(based on unaudited management accounts and pro forma for the
repayment of EUR39 million of drawdowns under the RCF in December
2017) and (2) Moody's expectation that while demand for
connectors and antennas/inlays should increase over the next 12
months this improvement will be gradual and result in a limited
de-leveraging over the next 12 months with debt-to-EBITDA
projected by Moody's to remain at above 6.0x by the end of 2018.
Increasing demand should be driven by the normalization of stocks
of smartcards accumulated since 2016 in China and the US. Such an
elevated leverage for a prolonged period of time leaves little
headroom for underperformance to maintain the company's B2
rating.

While year-to-date (YTD) Q3 2017 revenues increased by nearly 80%
on a historical basis (taking into account the full year
contribution from the Secured ID & Transactions division of
Smartrac N.V. (Smartrac SIT) in 2017), Linxens' top line
decreased by 8% to EUR375 million in the first nine months of
fiscal year (FY) 2017 compared to the same period last year at
comparable scope . The year-on-year decline on a comparable basis
was mainly driven by (1) the weaker performance of the Payment
segment negatively impacted by the destocking of its customers in
China and the US following a period of record shipments until
early 2016 and (2) lower sales in the Transport & Access segment
which is subject to volatility resulting from the lumpiness of
the contracts. Moody's expects that most of the overstocking
issue will be resolved by the end of 2018 leading to a gradual
recovery in Payment sales in the second half of the year.

These weaknesses are nevertheless partly mitigated by Linxens'
strong free cash flow (FCF) generation and good liquidity
position. The company generated a FCF estimated at EUR58 million
in the first nine months of FY 2017 supported by a decrease in
working capital and limited capital expenditures at less than 3%
of sales over that period. The continued strong FCF projected at
well above 5% as a percentage of gross adjusted debt over the
next three years, the large cash balance of EUR113 million as of
the end of Q3 2017 (or EUR74 million pro forma for the repayment
of the RCF), as well as the full pro forma availability under
EUR125 million RCF contribute to the company's good liquidity
position.

The First Lien Term Loans B-3 and B-4 and the RCF rank pari passu
and benefit from first lien guarantees from the company and its
material subsidiaries and pledges over the assets of most of the
operating subsidiaries with limitations in certain countries,
including France. The Second Lien Term Loans B-1 and B-2 benefit
from the same security and guarantee package as the first lien
facilities but on a second-ranking basis. The B2-PD PDR, at the
same level as the CFR, reflects Moody's assumption of a 50%
family recovery rate based on the mix of first lien and second
lien facilities in the debt structure. The B1 instrument rating
assigned to the First Lien Term Loans and RCF, one notch above
the CFR, reflects the cushion provided by the sizeable Second
Lien Term Loans ranking behind and rated Caa1.

The negative outlook reflects Moody's expectation that a gradual
recovery in demand for connectors and antennas/inlays in 2018
might not be sufficient to support a reduction in Linxens'
adjusted gross leverage to or below 6x within the next 12 months
leaving the company weakly positioned within the B2 rating
category for a prolonged period of time.

WHAT COULD CHANGE THE RATINGS UP/DOWN

While Moody's does not foresee any upwards pressure on the
ratings in the short-term, the outlook could be stabilized if (1)
Linxens reduces its adjusted gross leverage towards 6.0x within
the next 12 months partly supported by debt prepayments using the
company's excess cash flow, (2) FCF is maintained at above 5% as
a percentage of total adjusted gross debt on a sustainable basis,
and (3) the company maintains a good liquidity profile.

On the other hand, the ratings could be downgraded if (1) the
company fails to reduce its adjusted gross leverage towards 6.0x
within the next 12 months, adjusted FCF-to-debt decreases to
below 5% on a sustained basis, and the liquidity position
weakens.

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

Based in Levallois-Perret, France, Linxens is the world's leading
manufacturer of connectors for smart cards and has gained a
global leading position in radio frequency identification (RFID)
antennas and inlays following the acquisition of Smartrac SIT.
The company's key clients include smartcard manufacturers,
chipmakers and module manufacturers serving a wide range of end-
applications, including Payment (45% of 2015 group revenues pro
forma for the acquisition of Pretema and Smartrac SIT-- latest
data available), Telecom (22%), eGovernment (18%), and Transport
& Access (9%). The company employs c.3,000 employees and
manufactures its products across 10 production facilities spread
over Europe, the US, and Asia.


KAPLA HOLDING: Moody's Assigns B1 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a B1 Corporate Family
rating (CFR) and B1-PD Probability of Default Rating (PDR) to
Kapla Holding 2 S.A.S. (Kiloutou). Concurrently, Moody's has
assigned B1 instrument ratings to the EUR670 million senior
secured term loan B and EUR120 million senior secured revolving
credit facility (RCF). The outlook for the ratings is stable.

Kapla Holding 2 S.A.S. is the newly incorporated holding company
of Kiloutou -- a leading French provider of equipment rental
services -- and the topco entity of the new restricted group.
This is the first time that Moody's has assigned ratings to
Kiloutou.

In November 2017, HLD group and associated investors agreed to
acquire 70% of the company's equity in a recapitalisation
transaction. The financing for the transaction is expected to
close in February 2018.

Pro forma for the announced new capital structure and based on
expected results for FY2017, Moody's adjusted gross leverage is
c.4.0x . Moody's expects a slight decrease in leverage to 3.8x-
4.0x in the next 12-18 months due to the effect of 2017
acquisitions, however the significant expansion plans preclude
any material deleveraging in the period. Interest coverage
(Moody's adjusted EBITDA/interest expense) currently c.5.3x is
expected to improve to 5.7x-6x in the forward view, again due to
the inclusion of EBITDA from 2017 acquisitions.

RATINGS RATIONALE

Kiloutou's B1 rating with a stable outlook is supported by (1)
its #2 market position in France with strong barriers to entry
due to its dense branch network in the predominantly fragmented
French equipment rental market and broad selection of equipment;
(2) its good growth prospects over the next 24 months due to
industry growth driven by economic recovery and increased rental
penetration in France as well as in its other countries of
operation; (3) the company's continued international expansion
plan as it will diversify the business away from France which
currently represents approximately 90% of revenues, and; (4)
Kiloutou's mix of end-markets and customers which favour a high
proportion of smaller tool rental (26% vs market 19%) which is
expected to be more resilient in a downturn.

Conversely, the rating remains constrained by (1) the company's
exposure to cyclical and seasonal construction and civil
engineering end markets with the resulting revenue volatility;
(2) the capital intensive nature of the business and its impact
on cash flow generation, although Moody's expects the company to
be able to offset this risk by turning off capex during shorter
downturns; (3) Kiloutou's ambitious expansion plan involving
capex and acquisitions which involves execution risk, and; (4)
the initial leverage of 4.0x (PF expected FY2017) is moderately
high for this industry and rating category, and Moody's does not
expect any meaningful deleveraging in the next 24 months.

Liquidity Profile

Moody's considers Kiloutou's liquidity to be adequate based on a
certain level of capex flexibility, a history of maintaining
positive EBITDA-CAPEX through the cycle and a EUR120 million
revolving credit facility which is assumed undrawn at the
beginning of 2018 and available as a liquidity backstop.
Supporting liquidity through the projection period is the
maturity profile of the RCF and term loan (6.5 years and 7 years
respectively) which do not require any amortisation before the
first principal repayment which is due in 2024. The revolving
credit facility contains a leverage covenant which is considered
unlikely to be breached in the near term.

Structural considerations

Kiloutou's debt capital structure comprises a EUR670 million Term
Loan B, and a EUR120 million RCF. The B1 PD is at the same level
as the CFR, reflecting the use of a 50% recovery rate as is
typical for transactions including senior secured bank debt with
minimal financial covenants. The senior term loan and revolving
credit facility rank pari passu and carry the same B1 rating as
the CFR. The capital structure also includes a shareholder loan
which -- based on draft documentation - has been treated as
equity under Moody's hybrid equity credit methodology published
in January 2017, however this will be reviewed upon receipt of
the final executed version.

Rating outlook

The stable outlook assumes that the company will maintain a
conservative financial policy with no major debt-funded
acquisitions. It also includes Moody's expectations for continued
moderate growth and increased rental penetration in the company's
countries of operation, particularly France.

WHAT COULD CHANGE THE RATING UP/DOWN

Whilst unlikely in the near term, upward pressure on the rating
could occur over time if the company achieved a reduction in
Moody's adjusted leverage towards 3.0x on a sustainable basis
whilst maintaining an adequate liquidity profile.

Downward pressure in the rating could occur if (1) the conditions
for a stable outlook were not maintained; (2) adjusted leverage
was maintained at or above 4.5x on a sustained basis, or if (3)
liquidity deteriorated.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Equipment and
Transportation Rental Industry published in April 2017.

CORPORATE PROFILE

Kiloutou is the number two player in the French equipment rental
market with a focus on tools and light equipment, construction
equipment, access equipment and services. Clientele includes
large construction groups as well as small building firms and
sole traders. Revenue has grown at a CAGR of c.12% for the period
2010-PF2017 reaching PF2017 sales and EBITDA of EUR620m and
EUR195m respectively.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: KAPLA HOLDING 2 S.A.S.

-- Corporate Family Rating, Assigned B1

-- Probability of Default Rating, Assigned B1-PD

-- Senior Secured Bank Credit Facility, Assigned B1

Outlook Actions:

Issuer: KAPLA HOLDING 2 S.A.S.

-- Outlook, Assigned Stable


RCI BANQUE: Moody's Affirms (P)Ba1 Prog. Rating, Outlook Positive
-----------------------------------------------------------------
Moody's Investors Service affirmed RCI Banque's (RCI) long-term
senior unsecured debt and deposit ratings of Baa1 and changed the
outlooks on these ratings to positive from stable. The rating
agency also affirmed RCI's standalone baseline credit assessments
(BCA) and adjusted BCA of baa3, its subordinated programme rating
of (P)Ba1, its short-term ratings and long- and short-term
Counterparty Risk (CR) assessments of Prime-2 and A3(cr)/P-2(cr),
respectively.

The change in the outlook on RCI's long-term ratings to positive
was prompted by the announcement on January 15, 2018 of the
change in the outlook on Renault S.A.'s (Renault; Baa3, positive)
rating to positive.

Moody's upgraded the long-term local currency issuer rating of
RCI Banque Sucursal Argentina, a branch of RCI located in
Argentina, to Ba2 from Ba3. The outlook on this rating remains
stable. While RCI's long-term debt and deposit ratings are Baa1,
the local currency issuer rating of RCI Banque Sucursal Argentina
is constrained by the local currency debt ceiling assigned to the
country, which has been positioned at Ba2 from Ba3.

RATINGS RATIONALE

RCI's Baa1 long-term deposit and senior unsecured debt ratings
reflect (1) the bank's baa3 baseline credit assessment (BCA) and
adjusted BCA; and (2) two notches of uplift under the Advanced
Loss Given Failure (LGF) analysis, stemming from the large volume
of senior long-term debt and resultant very low expected loss
rate on these instruments.

RCI's BCA of baa3 is supported by the bank's role as a strategic
captive for Renault and its sound risk management and financial
fundamentals. Earning streams are high and stable, credit losses
on its retail and corporate exposures are low, and capitalization
is commensurate with the bank's risk profile.

At the same time, the BCA is constrained by the bank's lack of
business diversification, exposures to car dealers, which account
for 25% of the bank's loan portfolio. Moreover, Moody's factors
in RCI's high reliance on confidence-sensitive wholesale funding,
albeit somewhat mitigated by the absence of maturity
transformation and the collection of online deposits, currently
representing one third of the bank's funding.

Moody's believes that RCI benefits from a high probability of
support from its parent Renault. This is underpinned by the
bank's strategic importance for the car manufacturer. RCI is a
wholly owned subsidiary of Renault and is fully integrated into
its strategy. The proportion of new vehicles registered by
Renault group's brands that are financed by RCI currently exceeds
38%, which highlights the critical importance of a financial
captive as a means to facilitating car sales. RCI also plays a
capital role for Renault through the financing of its dealers'
network.

To date, RCI's ratings have not benefited from any affiliate
support uplift from Renault because Renault's rating was at the
same level as RCI's BCA. If the rating of Renault were to be
upgraded by one notch as a follow up to the positive outlook
assigned on January 15, 2018, a continued assumption of a high
probability of support would result in one notch of affiliate
support uplift. This prompted Moody's decision to revise the
outlook on RCI's ratings to positive.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the high support assumption, RCI's adjusted BCA could be
upgraded due to an upgrade of its parent Renault. RCI's BCA could
be upgraded following (1) a material reduction in its reliance on
wholesale funding; or (2) any material improvement in asset
quality or solvency. Moody's considers that the BCA of a
financial captive (i.e. RCI's BCA) is unlikely to exceed the
carmaker's rating (i.e. Renault's rating) by more than one notch.

An upgrade of the BCA or the adjusted BCA would likely prompt an
upgrade of the bank's deposit and senior unsecured ratings. Under
Moody's advanced LGF analysis, the long-term and short-term
deposit and senior unsecured debt ratings could be positively
affected by significant issuance of subordinated instruments,
which Moody's does not expect in the short-term.

A downgrade of RCI's ratings could materialize if (1) the
parent's rating is downgraded by more than one notch, which is
currently unlikely given the positive outlook; or (2) the bank's
credit fundamentals deteriorate.

LIST OF AFFECTED RATINGS

Issuer: RCI Banque

Affirmations:

-- Adjusted Baseline Credit Assessment, affirmed baa3

-- Baseline Credit Assessment, affirmed baa3

-- Long-term Counterparty Risk Assessment, affirmed A3(cr)

-- Short-term Counterparty Risk Assessment, affirmed P-2(cr)

-- Long-term Bank Deposits, affirmed Baa1, outlook changed to
    Positive from Stable

-- Short-term Bank Deposits, affirmed P-2

-- Long-term Deposit Note/CD Program, affirmed (P)Baa1

-- Short-term Deposit Note/CD Program, affirmed P-2

-- Senior Unsecured Regular Bond/Debenture, affirmed Baa1,
    outlook changed to Positive from Stable

-- Senior Unsecured Medium-Term Note Program, affirmed (P)Baa1

-- Subordinate Medium-Term Note Program, affirmed (P)Ba1

-- Other Short Term, affirmed (P)P-2

-- Commercial Paper, affirmed P-2

Outlook Action:

-- Outlook changed to Positive from Stable

Issuer: RCI Banque Sucursal Argentina

Upgrade:

-- Long-term Issuer Rating, upgraded to Ba2 Stable from Ba3
    Stable

Outlook Action:

-- Outlook remains Stable

PRINCIPAL METHODOLOGY

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


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


AIR BERLIN: Deadline to Register Claims on Feb. 1
-------------------------------------------------
The joint representative KEOS participated in the creditors'
meeting of Air Berlin PLC on January 25, 2018, and represented
the rights of the bondholders of the EUR225 million, 2011/2018,
8.250% bond issued by Air Berlin PLC.

The previous authorized representative Dr. Frank Kebekus of
Air Berlin PLC and the previously appointed trustee
Prof. Dr. Lucas Floether, who, following the end of the debtor-
in-possession proceedings was appointed as insolvency
administrator of Air Berlin PLC, presented their report at the
creditors' meeting on Jan. 25.  Creditors can retrieve the report
after successful registration and filing of claims in the
insolvency portal of the insolvency administrator
www.airberlin-inso.de, or bond creditors represented by KEOS can
request the report from the joint representative upon submission
of a recent proof of holdings.

According to the current status of the insolvency proceedings, no
or minimal recovery can be expected for the creditors of Air
Berlin PLC.  However, the insolvency administrator Prof. Dr.
Lucas Floether clarified that the recovery quota may change, if
potential claims of Air Berlin PLC against third parties, in
particular against Etihad Group arising out of a financing
commitment, the so-called "letter of comfort", can be
successfully asserted.  For this purpose, the insolvency
administrator Prof. Dr. Floether has already obtained various
expert opinions from reputable lawyers, in which they have
examined the chances of success of any litigation against the
Etihad Group. At the same time, the possibilities of litigation
funding for a lawsuit against the Etihad Group are being
explored, as Air Berlin PLC itself does not have the funds to
conduct such lawsuit against the Etihad Group.

Prof. Dr. Lucas Floether who has been appointed as insolvency
administrator following the end of the debtor-in-possession
proceedings, was confirmed in office at the creditors' meeting.

During the election of the members of the creditors' committee
the special administrator ("Sonderinsolvenzverwalter") of Air
Berlin PLC & Co. Luftverkehrs KG was given -- following a
controversial discussion -- a vote of approximately EUR850
million regarding the claims of Air Berlin PLC & Co. Luftverkehrs
KG against Air Berlin PLC.  An appeal filed by KEOS against this
decision was unsuccessful.

Based on that number of votes attorney-at-law Andreas Ziegenhagen
in its capacity as legal representative of Air Berlin Finance
B.V., which served as Etihad Group's financing vehicle to the Air
Berlin Group and presumably has to be considered as a
subordinated creditor of Air Berlin PLC, was elected as member of
the creditors' committee.  The joint representative has also
appealed against this decision as subordinated/shareholder
related creditors may not be represented in the creditors'
committee.

KEOS submitted requests for an extension of the agenda of the
creditors' meeting, amongst others, to request for authorization
of the insolvency administrator with respect to the examination
of financing options for initiation of litigations in connection
with the financing commitments made by Etihad Airways or Etihad
Aviation Group.  A vote on this request was rejected by the
court, as the stated representative of Air Berlin Finance B.V.
contradicted the vote.

The deadline to register claims expires on February 1, 2018.
Bondholders, who are not already represented by KEOS as the joint
representative of the bondholders of the EUR225 million,
2011/2018, 8.250% bond issued by Air Berlin plc, may contact KEOS
to obtain support from lawyers cooperating with KEOS in
registering claims arising out of other bonds.

KEOS will keep registered bondholders informed about the further
developments and is available for questions via email at
airberlin@onesquareadvisors.com. Bondholders of the Bond, who
have not yet registered with us, are kindly asked to register via
email or on our homepage at www.onesquareadvisors.com under the
heading "Bonds"/"Air Berlin".

                     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.


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


ALFA BOND: Fitch Rates Planned Perpetual AT1 Notes 'B(EXP)'
-----------------------------------------------------------
Fitch Ratings has assigned Alfa Bond Issuance plc's (ABI)
upcoming issue of perpetual additional Tier 1 (AT1) notes an
expected long-term rating of 'B(EXP)'. The final rating is
contingent upon the receipt of final documents conforming to
information already received.

ABI, an Irish SPV issuing the notes, will be on-lending the
proceeds in form of a perpetual subordinated loan to Russian JSC
Alfa-Bank (Alfa, BB+/Stable/bb+).

KEY RATING DRIVERS
The planned notes should qualify as an AT1 instrument in
regulatory accounts due to a full coupon omission option at
Alfa's discretion and full or partial write-down in case of
either Alfa's core equity tier 1 (CET1) ratio falling below
5.125% (versus the 4.5% generally required minimum) or the
Central Bank of Russia (CBR) approving a plan for the
participation of the Deposit Insurance Agency (DIA) or CBR in
bankruptcy prevention measures in respect of the bank. Fitch
believes the latter is possible as soon as a bank breaches any of
its mandatory capital ratios or certain other liquidity and
capital requirements.

Alfa's AT1 perpetual notes are rated four notches lower than the
bank's 'bb+' Viability Rating (VR), the minimum notching under
Fitch's Global Bank Criteria that can be applied to deeply
subordinated notes with fully discretionary coupon omission
issued by banks with a VR anchor of 'bb+'.

The notes will have no established redemption date; however, Alfa
will have an option (subject to CBR approval) to repay the notes
at the first coupon reset date (2023) and quarterly at each
future coupon payment date afterwards.

Alfa's regulatory CET1 and Tier 1 ratios were 7.77% and 9.04%
respectively at end-November 2017, but should improve by about
100bps after the auditing of 2H17 profits. The required minimums
including applicable buffers from 2018 are 7.025% for CET1 and
8.525% for Tier 1 and will be increased in 2019 to the fully
loaded minimum requirements of, respectively, 8% and 9.5%.

RATING SENSITIVITIES
The issue rating is primarily sensitive to a downgrade of Alfa's
VR. If the VR is downgraded to 'bb', the notes will likely also
be downgraded by one notch. The rating could also be downgraded
if Fitch changes its assessment of the probability of their non-
performance relative to the risk captured in the bank's VR or if
the instrument becomes non-performing, ie. if the bank cancels
any coupon payment or at least partially writes off the
principal. In that case the issue will be downgraded based on
Fitch's expectations about the form and duration of non-
performance.

If Alfa's VR is upgraded to 'bbb-', Fitch will likely increase
the notching between the notes' rating and Alfa's VR and affirm
the notes at 'B', as this is the minimum notching under Fitch's
Global Bank Criteria that can be assigned to deeply subordinated
notes with fully discretionary coupon omission issued by banks
with a VR anchor of 'bbb-' or above.


GLG EURO IV: Moody's Assigns (P)B2 Rating to Class F Jr. Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by GLG Euro
CLO IV Designated Activity Company:

-- EUR173,000,000 Class A-1 Senior Secured Floating Rate Notes
    due 2031, Assigned (P)Aaa (sf)

-- EUR30,000,000 Class A-2 Senior Secured Fixed Rate Notes due
    2031, Assigned (P)Aaa (sf)

-- EUR29,000,000 Class B-1 Senior Secured Floating Rate Notes
    due 2031, Assigned (P)Aa2 (sf)

-- EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due
    2031, Assigned (P)Aa2 (sf)

-- EUR23,500,000 Class C Deferrable Mezzanine Floating Rate
    Notes due 2031, Assigned (P)A2 (sf)

-- EUR20,000,000 Class D Deferrable Mezzanine Floating Rate
    Notes due 2031, Assigned (P)Baa2 (sf)

-- EUR19,000,000 Class E Deferrable Junior Floating Rate Notes
    due 2031, Assigned (P)Ba2 (sf)

-- EUR9,500,000 Class F Deferrable Junior Floating Rate Notes
   due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, GLG Partners LP
("GLG") has sufficient experience and operational capacity and is
capable of managing this CLO.

GLG Euro CLO IV is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and 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 portfolio is expected to be at least 85% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

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

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR37.25m of subordinated notes which will not
be rated.

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. GLG'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
October 2016. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

Par amount: EUR350,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.5%

Weighted Average Coupon (WAC): 5.0%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
Also, the eligibility criteria do not currently allow for the
acquisition of assets where the obligor is domiciled in a country
with a local currency government bond rating below A3. Given this
portfolio composition, there were no adjustments to the target
par amount, as further described in the methodology.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional rating 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 3278 from 2850)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

Class C Deferrable Mezzanine Floating Rate Notes : -2

Class D Deferrable Mezzanine Floating Rate Notes: -2

Class E Deferrable Junior Floating Rate Notes: 0

Class F Deferrable Junior Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3705 from 2850)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

Class C Deferrable Mezzanine Floating Rate Notes: -3

Class D Deferrable Mezzanine Floating Rate Notes: -2

Class E Deferrable Junior Floating Rate Notes: -1

Class F Deferrable Junior Floating Rate Notes: -1


ST. PAUL'S III-R: Moody's Assigns (P)B2 Rating to Class F-R Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to seven classes of notes to be
issued by St. Paul's CLO III-R Designated Activity Company (the
"Issuer" or "SP III - R"):

-- EUR330,100,000 Class A-R Senior Secured Floating Rate Notes
    due 2032, Assigned (P)Aaa (sf)

-- EUR48,800,000 Class B-1-R Senior Secured Floating Rate Notes
    due 2032, Assigned (P)Aa2 (sf)

-- EUR18,400,000 Class B-2-R Senior Secured Fixed Rate Notes due
    2032, Assigned (P)Aa2 (sf)

-- EUR30,800,000 Class C-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)A2 (sf)

-- EUR27,500,000 Class D-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Baa2 (sf)

-- EUR40,800,000 Class E-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Ba2 (sf)

-- EUR16,200,000 Class F-R Senior Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)B2 (sf)

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2032. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the Collateral Manager, Intermediate
Capital Managers Limited ("ICM"), has sufficient experience and
operational capacity and is capable of managing this CLO.

SP III - R is a managed cash flow CLO. The issued notes are
collateralized primarily by broadly syndicated first lien senior
secured corporate loans. At least 90% of the portfolio must
consist of 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.

ICM will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk and credit improved obligations, and are subject to certain
restrictions. The portfolio is expected to be approximately 80%
ramped up as of the closing date.

SP III - R will purchase all existing assets from ICM's existing
cash flow CLO namely, St Paul's III Designated Activity Company
(SP III). It is expected that the assets are sold to SP III -- R
via forward purchase agreements whereby the assets are expected
to settle on the closing date. Any remaining assets which are not
settled on the closing date will be sold to SP III-R via
participation agreements. Over time, these assets are expected to
be elevated to assignments such that full legal transfer of title
will be achieved.

Moody's expect to receive the relevant documentation prior to the
closing of the transaction and will review these to ensure any
risk associated with assets being sold via participation
agreements are mitigated. Such risk could include, amongst
others, the counterparty risk of the seller, the risk that the
seller does not comply with its covenants under the agreements,
the existence or creation of additional liens on the participated
assets and the operational risks of relying on the seller passing
on the cash flows of the assets to SP III-R.

In addition to the seven classes of notes rated by Moody's, the
Issuer issued EUR50,000,000 of subordinated notes. Moody's will
not assign rating to this class of notes.

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

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. ICM's investment decisions and
management of the transaction will also affect the notes'
performance.

Loss and Cash Flow Analysis:

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

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

Par Amount: EUR550,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2875

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 43.75%

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 provisional ratings
assigned to the rated notes. This sensitivity analysis includes
increased default probability relative to the base case. Below is
a summary of the impact of an increase in default probability
(expressed in terms of WARF level) on 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 3306 from 2875)

Ratings Impact in Rating Notches:

Class A-R Senior Secured Floating Rate Notes: 0

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: -1

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

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

Percentage Change in WARF: WARF +30% (to 3738 from 2875)

Ratings Impact in Rating Notches:

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

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

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

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

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: -1


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


BANCA CARIGE: Fitch Corrects January 16 Rating Release
------------------------------------------------------
Fitch Ratings has issued a correction to the ratings release on
Banca Carige published on Jan. 16, 2018, to clarify in the second
paragraph that senior debt was not restructured in the
recapitalisation of the bank.

Fitch Ratings has affirmed Banca Carige's Long-Term Issuer
Default Rating (IDR) at 'B-' and removed it from Rating Watch
Negative (RWN). The Outlook is Negative. Carige's Viability
Rating (VR) has been downgraded to 'f' from 'c' and subsequently
upgraded to 'b-'. A full list of rating actions is at the end of
this rating action commentary.

The affirmation of Carige's IDR follows the recapitalisation of
the bank through a EUR544 million capital increase from core and
new shareholders in combination with a junior debt restructuring.
It also follows the completion of and progress on a number other
capital- strengthening initiatives as well as the sale of a
EUR1.2 billion portfolio of gross doubtful loans (sofferenze)
completed in 4Q17.

Fitch has downgraded Carige's VR to 'f' and subsequently upgraded
it to 'b-'. The downgrade reflects the bank's failure, according
to Fitch definitions, as Carige received an extraordinary
injection of capital to meet the gross non-performing loan (NPL)
and coverage targets required by the ECB and to remain viable.
Failure according to Fitch definitions is also the consequence of
a debt restructuring, involving the conversion at a discount of
nominal EUR510 million junior and subordinated debt held by
institutional investors into newly issued senior notes, being
completed by Carige alongside the capital increase. This
conversion qualifies as a distressed debt exchange (DDE) under
Fitch criteria since it represented a material reduction in
terms. The subsequent upgrade of the VR reflects Fitch's view of
the bank's restored viability following the recapitalisation.

The Negative Outlook reflects Fitch view that Carige's prospects
for ongoing viability remain highly vulnerable to the level of
impaired loans left on its books (around gross EUR5 billion) and
weak prospects for ongoing medium-term structural profitability.
A greater-than-expected erosion of capital through, for example
losses or a need to improve reserve coverage of impaired loans
(such as for example under the direct request of the regulators)
could result, in Fitch view, of a downgrade of the bank's
ratings.

KEY RATING DRIVERS
IDRS, VR AND SENIOR DEBT

Following the downgrade of the VR to 'f' and subsequent upgrade
to 'b-', Carige's Long-Term IDR is now aligned with the VR and
the ratings are driven by the bank's standalone creditworthiness.
Despite the capital strengthening and the agreed doubtful loan
disposal Fitch believe that Carige's standalone profile remains
weak.

Disposing of EUR1.2 billion gross doubtful loans will bring the
bank's gross impaired loan ratio down to 27% from the 31%
reported at end-9M17, which, however, remains much higher than
domestic and international averages. The bank has committed to
disposing additional EUR500 million unlikely-to-pay exposures
over the course of 2018 as well as a further EUR200 million
doubtful exposures, which should bring the impaired loan ratio
further down to close to 24%.

Following the capital increase and the EUR1.2 billion doubtful
loan disposal, the bank expects to have achieved a doubtful loan
coverage of above 63% by end-2017 (i.e. above the ECB's
recommended target), while it will strengthen unlikely-to-pay
coverage to 32% (from 28% at end-9M17), in line with the ECB
target for the bank. Net impaired loans will continue to weigh on
capital significantly, despite declining encumbrance levels, with
unreserved impaired loans down from 200%, but still representing
above 100%, of Fitch Core Capital (FCC).

The bank estimated an end-9M17 CET1 ratio of 14.6% adjusted for
the capital increase, debt restructuring, sale of doubtful loans
and gain on the sale of real estate, which is well above its SREP
requirement of 9.625%. Fitch expect capital to have reduced by
end-2017 as the bank will have expensed restructuring and
severance costs. The sale of selected non-core activities
(consumer finance subsidiary Creditis, its merchant-acquiring
business and its NPL platform) should, however, contribute around
EUR90 million gains to CET1 in 2018. Carige plans to operate with
a CET1 ratio consistently above 12% throughout its strategic plan
period and reach a 13.9% ratio by end-2020.

Fitch's assessment of Carige's funding continues to reflect the
damage its franchise has suffered and that it remains vulnerable
to creditor sentiment.

Carige's senior unsecured bonds are rated in line with the bank's
IDRs. The Recovery Rating of '4' (RR4) reflects Fitch's
expectation of average recovery prospects in the event of a
default of these instruments.

SUPPORT RATING AND SUPPORT RATING FLOOR
The Support Rating and Support Rating Floor reflect Fitch's view
that although external support is possible it cannot be relied
upon. Senior creditors can no longer expect to receive full
extraordinary support from the sovereign in the event that the
bank becomes non-viable. The EU's Bank Recovery and Resolution
Directive and the Single Resolution Mechanism for eurozone banks
provide a framework for the resolution of banks that requires
senior creditors to participate in losses, if necessary, instead
of, or ahead of, a bank receiving sovereign support.

RATING SENSITIVITIES
IDRS, VR AND SENIOR DEBT

Carige's ratings could be downgraded the bank is unable to turn
its profitability around or if capital is eroded by more than
currently envisaged. This could be the case, for example if it is
required to improve reserve coverage of impaired loans, or if
revenue continues to remain under pressure from low business
volumes, low diversification of income streams and narrow
spreads, It would also be downgraded if the bank fails to
continue its planned impaired loan reduction.

Conversely, the Outlook could return to Stable if the bank makes
progress in its impaired loan reduction plans and profitability
gradually recovers.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the Support Rating and any upward revision of the
Support Rating Floor would be contingent on a positive change in
the sovereign's propensity to support Carige. While not
impossible, this is highly unlikely, in Fitch's view.

The rating actions are as follows:
Long-Term IDR: affirmed at 'B-'; off RWN; Negative Outlook
Short-Term IDR: affirmed at 'B', off RWN
Viability Rating: downgraded to 'f' from 'c' and subsequently
upgraded to 'b-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured notes (including EMTN): long-term rating of 'B-
'/'RR4' affirmed; off RWN short-term rating of 'B' affirmed; off
RWN


===================
L U X E M B O U R G
===================


CCP LUX: Moody's Assigns First-Time B3 CFR, Outlook Stable
----------------------------------------------------------
Moody's Investors Service has assigned a first-time B3 corporate
family rating (CFR) and B3-PD probability of default rating (PDR)
to CCP Lux Holding S.a.r.l., the parent of Axilone. Axilone is a
packaging company focused on mostly premium lipstick, fragrance
and skincare end markets. Concurrently, Moody's has also assigned
a first-time B2 instrument rating to the new EUR265 million
senior secured term loan B due 2025 and the new EUR50 million
senior secured revolving credit facility due 2024, and a first-
time Caa2 instrument rating to the new EUR90 million senior
secured second lien term loan due 2025, all borrowed at CCP Lux
Holding S.a.r.l. The outlook on all ratings is stable.

The proceeds from the transaction will be used to fund the
acquisition of Axilone by CITIC Capital, with the transaction
having closed during January 2018

RATINGS RATIONALE

The B3 CFR reflects the Moody's-adjusted debt/EBITDA of 5.9x
expected for year-end 2017, pro-forma for the transaction, and
Moody's expectation of a broadly similar level for 2018. It also
reflects (i) the relatively focused product portfolio,
concentrated customer base and resulting limited scale of the
business in the context of other rated peers, (ii) the exposure
to a competitive and cyclical end market reliant on new launches
with sometimes short product lifecycles, (iii) and the challenge
to maintain performance and sustain its recent rapid growth
trajectory. Moody's also note a significant degree of currency
exposure as revenues are generated in US dollar while production
is somewhat concentrated with its operating plant for lipstick in
China, and that the company does not have contractual pass-
through mechanisms for raw material price changes with its
customers.

However, the CFR also positively reflects the very strong growth
the company has exhibited, particularly in the last three years
on the back of contract wins and continuing efforts to grow with
existing brands and further diversify the brands it serves among
its existing customers and new ones. It also reflects (i) the
good EBITDA margin, also supported by its cost-competitive,
comprehensive and integrated production capabilities in China,
(ii) the company's efforts to diversify products and (iii) its
broad revenue footprint across Europe, the US and Asia. Moody's
would also expect the company to achieve positive free cash flow
in 2017 and 2018.

The company has a focused product portfolio and high customer
concentration, resulting in limited scale. Axilone focuses on
lipstick packaging (56% of 2016 revenue) and caps for fragrance
and other beauty and personal care products (44%), from plastic
and/or metal. In addition, the company's three largest customers
account for more than half of 2016 revenue. There are some
mitigating factors for this concentration, such as the long-
standing relationships with key customers (9 years and more for
top 3), as well as the fact that the company serves many brands
of these clients (at least 8 brands for each of the top 3
customers), with sourcing often managed at brand level. Some of
the customer concentration is also a result of strong growth with
these customers. Nevertheless given the company's focus, it
remains smaller compared to most other rated peers on a revenue
basis.

As part of the broader beauty and personal care packaging market,
Axilone competes with larger and more diversified companies in
the same end market such as Albea Beauty Holdings S.A (B2
stable), but also more indirectly with larger groups serving
multiple end markets, although some of its competitors may not
have a similar focus on premium segments compared with Axilone.
Moody's considers the market as very fragmented with Axilone's
products serving a small subsector of the market, albeit with 13-
22% market share in the premium lipstick and premium skincare &
fragrance caps market according to the company. Moody's also
considers the beauty and personal care end market as more
cyclical than, for example, food/beverage or pharmaceutical end
markets, with ongoing new launches by customers and contract wins
being crucial to not only grow but also maintain revenue. Product
lifecycles may also vary meaningfully, but have generally reduced
over the past years.

Despite, these challenges Axilone has demonstrated very strong
growth in the last three years on the back of successful contract
wins with existing and new customers as well as good EBITDA
margins, pointing to a competitive offering. In addition, the
company's main production plant for lipstick packaging is located
in China and newly extended thereby providing for cost
competitive, comprehensive and integrated manufacturing
capabilities.

Fluctuations in the US dollar and Chinese Yuan had a material
impact on revenue and EBITDA in the past. Negative currency
effects in the second half of 2017 are also responsible for a
more flattish EBITDA over this period despite organic growth.
While Axilone generated (by invoicing) a relatively diversified
50% of 2016 revenue in Europe, 37% in the US and 13% in Asia,
many customers pay in US dollar. For 2016, over half of revenues
were in US dollar, followed by Euro and some, albeit very
limited, exposure to Chinese Yuan, which contrasts with its
predominantly Chinese Yuan and Euro cost base. While the company
has taken some steps to mitigate the exposure to US dollar and
Chinese Yuan, and Moody's expects it to improve over time from a
customer transition and potentially growth with Chinese brands,
some exposure to the Yuan and in particular the US dollar will
remain despite hedging efforts. Moody's notes that the company
intends to swap the term loans to US dollar to further reduce the
risk from currency volatility.

Moody's also notes that the company, aside from currency
volatility, also remains exposed to raw material prices, notably
aluminium and certain plastics and resins, with typically no
contractual pass-through mechanism. The company typically
negotiates raw material price pass-throughs with its customers as
needed, with the exception of one large customer.

Despite the currency headwinds in the second half of 2017 and
into 2018, Moody's expects the company to continue to grow
visibly in 2017, with further potential to do so in 2018 and
beyond if the high win rates are sustained. As a result, there
should be some deleveraging potential over time from the
currently high Moody's-adjusted debt/EBITDA of 5.9x for 2017,
although Moody's expects a broadly similar level for 2018 on the
back of currency headwinds.

The B2 instrument rating for the EUR265 million senior secured
term loan B due 2025 and EUR50m million senior secured revolving
credit facility (RCF) due 2024, one notch above the CFR, reflects
the priority ranking ahead of the EUR90 million senior secured
second lien term loan due 2025. Conversely, the Caa2 rating on
the second lien reflects the material amount of debt ranking
ahead in the capital structure. Guarantors represent at least 80%
of EBITDA and the security package comprises mainly share
pledges, intercompany receivables and bank accounts. There is a
shareholder loan in the capital structure that receives equity
treatment under Moody's methodology.

LIQUIDITY PROFILE

Moody's considers Axilone's liquidity as adequate. Pro-forma for
the transaction, Moody's expects the company to have EUR4 million
of cash on the balance sheet and access to the fully undrawn
committed EUR50 million RCF due 2024. Moody's also expects the
company to be cash flow positive on an annual basis. There is one
net total leverage springing covenant, tested if utilization of
the RCF exceeds 40%, under which Moody's expects the company to
retain ample headroom.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that the company
will continue to demonstrate visible growth, achieve positive
free cash flow and gradually reduce leverage.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings could develop over time as the
business further grows and diversifies. In any case, Moody's
would expect Moody's-adjusted debt/EBITDA to improve to 5.5x on a
sustained basis with ongoing visible positive free cash flow
generation and a sufficient liquidity profile for upward pressure
to develop. Conversely, negative pressure on the rating could
develop if the company's growth path reverses, for example from
customer or brand losses, leverage increase towards 7.0x, free
cash flow turns negative or liquidity concerns arise.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.

CORPORATE PROFILE

Axilone is a supplier of premium packaging for lipstick,
fragrance and skincare industries generating revenue. The company
is owned by CITIC Capital Partners, the private equity affiliate
of the Chinese CITIC Group. In the last twelve months ended
September 2017, Axilone generated EUR216 million of revenues.


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


CREDIT EUROPE: Moody's Extends Review of Ba2 Deposit Ratings
------------------------------------------------------------
Moody's Investors Service extended its review for upgrade of
Credit Europe Bank N.V.'s (CEB NV) Ba2 long-term local and
foreign-currency deposit ratings and B2 subordinated debt rating
initiated on October 26, 2017. Moody's also extended its review
for upgrade on CEB NV's standalone baseline credit assessment
(BCA) and adjusted BCA of b1, as well as its long-term and short-
term Counterparty Risk (CR) assessments of Ba1(cr) and Not
Prime(cr).

The completion of the review is contingent upon the decision of
regulatory authorities on CEB NV's divestment of its Russian
subsidiary Credit Europe Bank Ltd. (CEBL), which is still
pending.

RATINGS RATIONALE

The review for upgrade of CEB NV's BCA is driven by the expected
transfer of 90% of CEB NV's shares in its Russian subsidiary CEBL
to its parent Fiba Group. This transfer is to be approved by the
regulatory authorities both in the Netherlands and Russia. CEB
NV's profitability is likely to improve as a result of the sale
because the bank will no longer incur the cost of hedging CEBL's
ruble-denominated equity into euros. In addition, CEB NV's
retrenchment from Russia, which represented 23% of its credit-
risk exposures at end-June 2017, substantially reduces the risks
resulting from a weak operating environment relative to other
jurisdictions where it does business.

Moody's placed CEB NV's long-term deposit ratings of Ba2 on
review for upgrade as a consequence of the review for upgrade on
the bank's standalone BCA. Moody's two-notch uplift to the long-
term deposit ratings under its Advanced LGF analysis incorporates
CEB NV's issuance of tier 2 subordinated notes for an amount of
$150 million on November 9, 2017 and subsequent redemption of
subordinated notes worth $400 million on January 24, 2018. The
reduction in subordination did not lead to significantly higher
loss-given-failure. Fiba Group also injected a total of $75
million of tier 1 capital ($50 million of additional tier 1
securities and $25 million equivalent in euros of CET1 capital)
in the bank during the fourth quarter of 2017. Lastly, CEB NV's
deposit ratings incorporate no uplift for government support,
reflecting a low probability of support.

Moody's opened its review for upgrade on October 26, 2017
following CEB NV's announcement that it had initiated the spinoff
of its Russian subsidiary within its shareholders group, subject
to formal regulatory approvals.

WHAT COULD MOVE THE RATINGS UP/DOWN

CEB NV's BCA and consequently its long-term deposit ratings, both
currently on review for upgrade, could be upgraded on the sale of
CEBL to Fiba Group, which is contingent upon the approval of
local regulators.

A downgrade is unlikely at present.

PRINCIPAL METHODOLOGY

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

The relevant office for each rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each
issuer/entity page of the website.

This publication does not announce a credit rating action. For
any credit ratings referenced in this publication.


STORM 2018-I: Moody's Assigns Ba1 Rating to Class E Notes
---------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
following classes of notes issued by STORM 2018-I B.V.:

-- EUR2,100.0 million Senior Class A Mortgage-Backed Notes due
    2065, Definitive Rating Assigned Aaa (sf)

-- EUR56.7 million Mezzanine Class B Mortgage-Backed Notes due
    2065, Definitive Rating Assigned Aa1 (sf)

-- EUR44.1 million Mezzanine Class C Mortgage-Backed Notes due
    2065, Definitive Rating Assigned Aa3 (sf)

-- EUR44.1 million Junior Class D Mortgage-Backed Notes due
    2065, Definitive Rating Assigned A2 (sf)

-- EUR22.8 million Subordinated Class E Notes due 2065,
    Definitive Rating Assigned Ba1 (sf)

STORM 2018-I B.V. is a revolving securitisation of Dutch prime
residential mortgage loans. Obvion N.V. (not rated) is the
originator and servicer of the portfolio.

RATINGS RATIONALE

The definitive ratings on the notes take into account, among
other factors: (1) the performance of the previous transactions
launched by Obvion N.V.; (2) the credit quality of the underlying
mortgage loan pool; (3) legal considerations; and (4) the initial
credit enhancement provided to the senior notes by the junior
notes and the reserve fund.

The expected portfolio loss of 0.65% and the MILAN CE of 7.6%
serve as input parameters for Moody's cash flow and tranching
model, which is based on a probabilistic lognormal distribution,
as described in the report "The Lognormal Method Applied to ABS
Analysis", published in July 2000.

MILAN CE for this pool is 7.6%, which is in line with preceding
revolving STORM transactions and in line with other prime Dutch
RMBS revolving transactions, owing to: (i) the availability of
the NHG-guarantee for 22.9% of the loan parts in the pool, which
can reduce during the replenishment period to 20%, (ii) the
replenishment period of 5 years where there is a risk of
deteriorating the pool quality through the addition of new loans,
although this is mitigated by replenishment criteria, (iii) the
Moody's weighted average loan-to-foreclosure-value (LTFV) of
91.51%, which is similar to LTFV observed in other Dutch RMBS
transactions, (iv) the proportion of interest-only loan parts
(56.11%) and (v) the weighted average seasoning of 7.33 years.
Moody's notes that the unadjusted current LTFV is 89.87%. The
difference is due to Moody's treatment of the property values
that use valuations provided for tax purposes (the so-called WOZ
valuation).

The risk of a deteriorating pool quality through the addition of
loans is partly mitigated by the replenishment criteria which
includes, amongst others, that the weighted average CLTMV of all
the mortgage loans, including those to be purchased by the
Issuer, does not exceed 85% and the minimum weighted average
seasoning is at least 40 months. Further, no new loans can be
added to the pool if there is a PDL outstanding, if loans more
than 3 months in arrears exceeds 1.5% or the cumulative loss
exceeds 0.4%.


The key drivers for the portfolio's expected loss of 0.65%, which
is in line with preceding STORM transactions and with other prime
Dutch RMBS transactions, are: (1) the availability of the NHG-
guarantee for 22.9% of the loan parts in the pool, which can
reduce during the replenishment period to 20%; (2) the
performance of the seller's precedent transactions; (3)
benchmarking with comparable transactions in the Dutch RMBS
market; and (4) the current economic conditions in the
Netherlands in combination with historic recovery data of
foreclosures received from the seller.

The transaction benefits from a non-amortising reserve fund,
funded at 1.02% of the total Class A to D notes' outstanding
amount at closing, building up to 1.3% by trapping available
excess spread. The initial total credit enhancement for the Aaa
(sf) rated notes is 7.47%, 6.45% through note subordination and
the reserve fund amounting to 1.02%. The transaction also
benefits from an excess margin of 50 bps provided through the
swap agreement. The swap counterparty is Obvion N.V. and the
back-up swap counterparty is COOPERATIEVE RABOBANK U.A.
("Rabobank"; rated Aa2/P-1). Rabobank is obliged to assume the
obligations of Obvion N.V. under the swap agreement in case of
Obvion N.V.'s default. The transaction also benefits from an
amortising cash advance facility of 2.0% of the outstanding
principal amount of the notes (including the Class E notes) with
a floor of 1.45% of the outstanding principal amount of the notes
(including the Class E notes) as of closing.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

STRESS SCENARIOS:

Moody's Parameter Sensitivities: At the time the ratings were
assigned, the model output indicated that Class A notes would
have achieved Aaa (sf), even if MILAN CE was increased to 10.64%
from 7.60% and the portfolio expected loss was increased to 1.95%
from 0.65% and all other factors remained the same.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATINGS:

Significantly higher losses compared with Moody's expectations at
close due to either a change in economic conditions from Moody's
central scenario forecast or idiosyncratic performance factors
would lead to rating actions.

For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Downward pressure on the ratings could also stem from (1)
deterioration in the notes' available credit enhancement; or (2)
counterparty risk, based on a weakening of a counterparty's
credit profile, particularly Obvion N.V. and Rabobank, which
perform numerous roles in the transaction.

Conversely, the ratings could be upgraded: (1) if economic
conditions are significantly better than forecasted; or (2) upon
deleveraging of the capital structure.

The definitive 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 only address 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.


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


RUSSIA: Moody's Alters Outlook on Ba1 LT Issuer Rating to Pos.
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on Russia's Ba1
long-term issuer and senior unsecured debt ratings to positive
from stable. Concurrently, Moody's affirmed Russia's long-term
ratings at Ba1 and its short term rating at Not Prime (NP).

The change in the outlook on Russia's Ba1 ratings was driven by
the following rating factors:

(1) Growing evidence of institutional strength. Russia's
macroeconomic framework coped well with the oil price shock and
with the impact of sanctions imposed to date, and enhancements
have been made to the government's rule-based fiscal framework.

(2) Relatedly, increased evidence of economic and fiscal
resiliency that has reduced Russia's vulnerability to further
external shocks arising from geopolitical tensions or from
renewed declines in oil prices.

At the same time, Moody's affirmed the Russian government's Ba1
local and foreign currency debt ratings. In Moody's view, that
rating appropriately balances Russia's fiscal strength, somewhat
improved economic prospects and effective policy-making against
the combination of longer-term economic challenges and continued
nearer-term exposure to external events. The outlook horizon will
allow Moody's to assess whether that balance will continue to
shift in Russia's favor.

In a related decision, Moody's has raised Russia's country
ceilings for foreign currency debt to Baa3/P-3 from Ba1/NP to
reflect diminished concerns that the government might impose
capital controls or otherwise ration foreign exchange reserves.
Moody's also raised the country risk ceilings for local currency-
denominated debt and deposits to Baa2 from Baa3 while the country
ceilings for foreign currency deposits remain at Ba2/NP.

RATINGS RATIONALE

RATIONALE FOR CHANGING THE OUTLOOK TO POSITIVE FROM STABLE

FIRST DRIVER: A MORE SUSTAINABLE MACRO POLICY MIX DEMONSTRATES
STRONGER INSTITUTIONS

In Moody's view, the Russian authorities have forged pragmatic
monetary, exchange rate and fiscal policy responses to the recent
crisis in the context of collapsing oil prices and the imposition
of international financial sanctions. The government's macro
strategy, recently supplemented by the new fiscal rule limiting
the amount of oil and gas revenues spent in annual government
budgets, should result in a more sustainable and stable growth
model over time, i.e. one that is better able to withstand
oscillations in global commodity demand and prices. Moody's
expects these changes to lessen, but not eliminate, the economic
volatility seen in recent years.

The various elements of the new policy framework are each
important to securing macroeconomic sustainability and stability,
especially in an environment where sanctions remain in place in
relation to many Russian quasi-sovereign entities and oil prices
are still only about 60% of their June 2014 levels. The floating
exchange rate has become a crucial shock absorber that helps both
the government and exporters adapt to volatile oil and commodity
prices. The monetary policy stance has enhanced the credibility
of the central bank. Accordingly, inflation expectations are
falling, albeit at a slower pace than the decline in inflation.

Prudent fiscal policy has largely protected the government's
balance sheet, with the government debt-to-GDP ratio remaining
very low, although fiscal savings are lower and the Reserve Fund
has been fully depleted. Moody's considers the implementation of
the new fiscal rule to be an extremely important structural
reform that also speaks to policy credibility and government
effectiveness, both important components of institutional
strength. The premise of the rule is that the government will
spend only the oil and gas revenue associated with a price of
$40/barrel (indexed annually by 2%). Aside from mitigating
economic volatility induced by government spending, the fiscal
rule helps to insulate the budget itself against another oil
price shock.

Although the Russian economy's medium-term growth prospects
remain quite weak, at this stage they appear not to have been
further impaired by the crisis, again likely attributable to the
effective macro policy response. Furthermore, the credit
strengths of very low government debt and a robust external
position have been maintained. Given potential US sanctions, the
government's plan to lower its deficits to a level sustainably
below what can be financed in the domestic financial market and
its efforts to rebuild its fiscal reserves increase the
likelihood that Russia could be upgraded, driving the positive
outlook.

SECOND DRIVER: RUSSIA'S IMPROVED ECONOMIC AND FISCAL RESILIENCY

Russia's medium-term macroeconomic perspective is also better
than forecast a year ago when Moody's changed the rating outlook
to stable from negative.

Near-term developments have been supportive, with the economy
having grown faster, inflation dropping lower and both the public
finances and external finances having remained healthier than
anticipated, thanks to stronger global and domestic demand. The
terms of trade also improved by more than expected when oil
prices tracked higher after Russia joined with other oil
producers for the so-called "OPEC+" agreement to cut back global
oil production. The positive global backdrop, the extension of
the oil production cuts until the end of 2018 and ongoing real
wage and employment gains suggest that the Russian economy will
record a similar pace of growth this year as in 2017, with
potential upside should oil prices remain at levels above Moody's
forecast range of $40-$60/barrel. Moody's expect 2018 growth will
largely overcome the adverse base effect caused by the industrial
output-led slowdown in Q4-2017.

More importantly from a credit perspective, Moody's expects the
recent macro gains to be sustained over the longer term. A
gradual easing in monetary policy, to the extent permitted by
further falls in inflation expectations, is likely to support a
broader-based economic expansion, including a pickup in the
construction sector thanks to higher mortgage lending.

The fiscal consolidation continues with the 2018-20 medium-term
budget framework, which projects a continued narrowing of the
deficit that will bring the primary budget position into balance
by next year. At current and expected oil price levels, Moody's
expects lower government deficits and more modest financing needs
that can be met in the domestic market. The Ministry of Finance
has been buying foreign exchange nearly the whole of 2017, and is
stepping up the pace of purchases in light of the current level
of oil prices. These purchases will offset drawdowns that might
be made from the government's National Welfare Fund to finance
the budget deficit.

Challenges remain, and Moody's still expects potential growth to
be subdued, at around 1.5%. The emergence of large capital
shortfalls at three systemically important banks reinforces
concerns about the resilience of parts of the Russian banking
system. Structural reforms to boost potential growth have been
mooted, but their content and impact remains uncertain.

RATIONALE FOR AFFIRMING RUSSIA'S GOVERNMENT BOND RATING AT Ba1

Notwithstanding the improvements seen, Moody's considers that the
current Ba1 rating reflects appropriately the balance of
strengths and weaknesses in Russia's credit profile. Russia's
government balance sheet remains very strong. The very large
economy affords relatively high average wealth, although with
structural flaws such as wide income differentials and an ageing
population that continue to impair potential growth. Its
institutional framework balances emerging strengths related to
effective policymaking and governance, against significant
challenges evidenced by other important institutional indicators
such as the rule of law and control of corruption. The sovereign
remains vulnerable to external shocks, whether economic --
another oil price fall -- or geopolitical, i.e. the nearer term
potential for expansion of international sanctions, although
recent experience suggests that the country's vulnerability to
such events may be gradually receding.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Russia's ratings would be upgraded should Moody's conclude that
the country's vulnerability to external shocks will indeed
continue to diminish, for example, as the government establishes
a track record abiding by its new fiscal rule, should sanctions
ease, or, more likely, should the economy and public finances
demonstrate their ongoing resilience to any additional
international measures imposed. Further steps by the government
to rebuild fiscal and foreign exchange buffers, and to continue
to reduce its deficits to a level sustainably below what can be
financed in the domestic financial market, would be credit
positive in this respect.

Subsequent upgrades could occur if structural adjustments such as
are currently being considered by the government were to be
enacted that could sustainably address the underlying sources of
Russia's growth constraints, such as relatively short working
lives, underinvestment and the large government involvement in
the economy. In this regard, increasing incentives to diversify
the economy, reducing poverty, lowering the structural pension
system deficit and generally improving the investment climate are
among the goals of policymakers.

Although unlikely given the positive rating outlook, Russia's
rating could come under downward pressure if the country's credit
metrics or external position deteriorate to the point that its
capacity to absorb another oil price shock or other shocks were
materially diminished. Also negative would be if the lending
capacity of the banking system is impaired such that banks could
not provide adequate financing to the government and Russian
companies, which is increasingly important should additional
sanctions be imposed, further limiting access to international
capital markets.

SUMMARY OF MINUTES FROM RATING COMMITTEE

GDP per capita (PPP basis, US$): 26,926 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -0.2% (2016 Actual) (also known as
GDP Growth)

Inflation Rate (CPI, % change Dec/Dec): 5.4% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -3.7% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: 2% (2016 Actual) (also known as
External Balance)

External debt/GDP: 40.1% (2016 Actual)

Level of economic development: Moderate level of economic
resilience

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

On January 23, 2018, a rating committee was called to discuss the
rating of the Russia, Government of. The main point raised during
the discussion was: The issuer's institutional strength/framework
have increased.

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2016.

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


TRANSMASHHOLDING CJSC: Fitch Affirms BB- IDR, Outlook Positive
--------------------------------------------------------------
Fitch Ratings has revised Russia-based rolling stock manufacturer
CJSC Transmashholding's (TMH) Outlook to Positive from Stable
while affirming the company's 'BB-' Foreign and Local Currency
Issuer Default Ratings (IDR).

The Positive Outlook reflects Fitch's expectation of further de-
leveraging over the short- to medium-term. Fitch expects free
cash flow (FCF) to remain broadly positive during this period as
a result of likely stabilisation of working capital cash flows
and continuing stable operating performance.

The affirmation reflects improvement in leverage and debt service
metrics, following material debt reduction in 2017 due to the
completion of the first phase of TMH's contract with Moscow Metro
for the supply of metro cars.

KEY RATING DRIVERS

Return to Positive FCF: TMH's large contract with Moscow Metro
has led to large working capital swings. Working capital reversed
in 1H17 as the financing structure of deliveries to Moscow Metro
stabilised. TMH's moderate capital investments and absence of
dividend payments mean that Fitch expects TMH's FCF to be
positive, which if sustained, could lead to a rating upgrade.

Improved Leverage: TMH's funds from operations (FFO)-adjusted
gross leverage rose sharply to peak at 4.4x at end-2016, from
0.9x at end-2013, reflecting funding of the company's 2014
contract with Moscow Metro. TMH is repaying a large part of its
debt and deleveraging through increased cash inflows. Fitch
expects FFO-adjusted gross leverage to improve towards 2x by
2020.

Leading Local Producer: TMH is a market leader in the rolling
stock industry, being the number one manufacturer in Russia and
CIS of locomotives (68% market share in 2016), passenger rail
cars (57%), metro cars (92%) and locomotive diesel engines (86%).
TMH's leadership position and successful long-term performance
act as considerable barriers to entry in the company's core
markets. Nevertheless, TMH's profitability is constrained by the
competitive strength of large global producers.

Growing Market: The long-term outlook for demand in the industry
is positive, driven by the high obsolescence rate of the domestic
railway fleet that should support TMH's ongoing order book. TMH
also benefits from RUB devaluation in 2014, which has helped keep
production costs at a low level without eroding its margins or
its local market positions. Nevertheless, TMH's order book and
subsequent revenue growth rely on the investment programmes of a
few large players, mainly state-owned, and point to some
volatility in operations. For example, in 2015, revenue and
profitability of TMH deteriorated due to reduced investments at
JSC Russian Railways and the postponement of some state
infrastructure projects.

Somewhat Limited Business Profile: TMH's business profile is
limited by weak customer diversification, low contribution of
service and aftermarket revenue and weaker corporate governance
than peers'. The ratings of TMH are supported by its diversified
product portfolio, leading market shares, RUB-denominated costs
and long-term cooperation with main customer, Russian Railways
(BBB-/Positive). The presence of Alstom as TMH's 33% shareholder
provides TMH with strategy, engineering and marketing support.

Limited Diversification: TMH's ratings are constrained by the
lack of geographic diversification as the company's primary focus
is Russia and CIS and by a somewhat narrow customer base.
However, the company is actively developing its export business..
Moreover, the majority of Russia's present railway fleet is
obsolete, which underpins the expected strong and stable demand
for the company's products over the long-term.

Related-Party Transactions: TMH has considerable operating links
with Transholdleasing (THL) and LocoTech (renamed from TMH-
Service), which are not consolidated with TMH and which results
in Fitch's assessment of corporate governance as weak. TMH's
other corporate governance weaknesses are a concentrated
ownership structure, which is however mitigated by the support
shareholder Alstom brings, and the absence of both independent
board members and an audit committee. However, such corporate
governance practice is common for a majority of private companies
in Russia.

DERIVATION SUMMARY

TMH's rating reflects the company's leading position in Russia
and CIS, long-term and successful cooperation with key customer -
Russian Railways. Alstom as a 33% shareholder provides TMH with
strategy, engineering and marketing support. However, the rating
is capped by lack of geographical and customer diversification,
weak corporate governance, and a low share of aftermarket
services.

TMH is comparable to some of its Russian and foreign
manufacturing peers, such as Borets International Limited (BB-
/Stable), JSC HMS Group (B+/Stable), Arcelik A.S. (BB+/Stable),
Bombardier Inc (B/Negative), CNH Industrial N.V. (BBB-/Stable).
Smaller scale of operations and lack of diversification versus
Bombardier and CNH Industrial, which constrain TMH's rating, is
mitigated by strong local market position, long-term contracts
and good relationships with key customers, and by moderate
leverage metrics. TMH reported comparable EBITDA and FFO margins
versus HMS Group and Arcelik and had firmer profitability than
Bombardier and CNH Industrials. TMH has progressed in
deleveraging and its leverage metrics are comparable to Arcelik
and stronger than. Borets International Limited, HMS Group and
Bombardier.

No country-ceiling or parent/subsidiary aspects impact the
ratings. However, the ratings could be limited by the domestic
operating environment.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch rating case for the issuer
include:
- Ongoing double-digit rise of revenue in 2017-18 based on
   existing order book. Conservative revenue growth expected
   thereafter.
- EBITDA margin to have slightly decreased to 11% in 2017 before
   gradually recovering to 12% in 2018
- CAPEX is mainly attributed to investments in new products for
   new markets, providing some flexibility
- Dividend pay-out ratio at 30% of prior-year net income
   starting in 2018

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Improved geographic and customer diversity.
- FCF margin sustainably above 2% (2016: -4%).
- FFO gross leverage remaining below 3x.
- FFO fixed charge cover above 4x (2016: 2.4x).
- Lower working capital volatility.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- FFO gross leverage above 4x.
- FFO fixed charge cover below 3x.
- Negative FCF margin on a sustained basis.

LIQUIDITY

Satisfactory Liquidity: As of 1 October 2017 TMH's liquidity was
satisfactory with unrestricted cash of RUB6.6 billion and
available undrawn bank facilities of RUB29.5 billion, which was
more than sufficient to cover short-term debt of RUB16.9 billion.
Expected positive FCF provides additional cushion for debt
repayment capacity. The company has also proven access to debt
capital markets, as shown by the 2017 issue of a RUB10 billion
bond.


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


ALIGERA HOLDING: To File for Bankruptcy Following Insolvency
------------------------------------------------------------
As announced in the press releases dated November 9, 2017,
January 16, 2018 and January 23, 2018, Aligera AB's (publ) (the
"Company") wholly owned indirect subsidiary, Aligera Holding AB
(publ) (the "Subsidiary"), and a group of the larger holders (the
"Bondholder Committee") of the Subsidiary's SEK500,000,000 senior
secured bonds (ISIN SE0005933231) (the "Bonds") have for a period
of time discussed a potential agreement on an out of court
restructuring and an agreed standstill period has run since 9
November 2017.

   Bankruptcy of Aligera Holding AB (publ) and Aligera Vind AB

Since the parties have not been able to reach an agreement on an
out of court restructuring that would result in a long term
viable capital structure, the Subsidiary is insolvent.  The
Company's directly owned subsidiary, Aligera Vind AB, which in
turn is the direct owner of the Subsidiary, owes obligations to
the Subsidiary and has no other assets than the shares in the
Subsidiary.  Aligera Vind AB is therefore also insolvent. It has
therefore been decided that the Subsidiary and Aligera Vind AB
will file for bankruptcy.  It will be announced through a
separate press release when the bankruptcy applications have been
filed with the relevant district courts.

The Company is evaluating its position and will communicate its
decision as to whether it also will need to file for bankruptcy
within the next following week.

As a part of the negotiations with the Bondholder Committee
legal, technical and financial reviews have been made of the
Subsidiary, its subsidiaries and Aligera Vind AB.

                         About Aligera

Based in Sweden, Aligera AB (publ) is an infrastructure company
within renewable energy, investing in commercial windmills.
Aligera was founded in 2009 with the ambition to contribute to a
sustainable future by production of green energy.


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


EXPORT CREDIT: Moody's Affirms Ba1 Long-Term FCR Issuer Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 long-term foreign
currency issuer and senior unsecured debt ratings, the (P)Ba1
senior unsecured MTN ratings and the ba2 standalone baseline
credit assessment (BCA) of Export Credit Bank of Turkey A.S.
(Turk Eximbank).

At the same time, the rating agency has assigned the following
new ratings: adjusted BCA of ba2; long-term local currency issuer
rating of Ba1, short-term local and foreign currency issuer
rating of Not Prime; short-term foreign currency senior unsecured
MTN rating of (P)Not Prime and long- and short-term counterparty
risk assessment (CRA) of Ba1(cr)/Not Prime(cr).

Turk Eximbank is a 100% state owned bank which takes credit risk
on its own account and does not have all obligations guaranteed
by the Turkish treasury. As such, Moody's is using its Banks
methodology to derive Turk Eximbank's ratings. Previously, Turk
Eximbank's ratings were derived using a combination of Moody's
methodologies for Government-Related Issuers (GRI) and Banks.

RATINGS RATIONALE

RATIONALE FOR THE BCA

Turk Eximbank's ba2 BCA is driven by its low asset risk profile
and good capitalisation, partly offset by modest profitability,
wholesale funding profile and the volatile operating environment
in Turkey. At June 2017, the bank had negligible problem loans of
0.4% of loans, driven by exposures to Turkish financial
institutions., The capital adequacy ratio of 15% was sound,
underpinned by zero risk-weighting on the bank's public policy
activities (52% of loans). In August 2017, the Treasury injected
TL1.1 billion of capital to support the bank's growth and Moody's
expects this support to continue. Return on assets of 0.8% was
modest, even considering that the bank is not a profit-driven
entity. The bank is fully dependent on wholesale funding,
although refinancing risks are mitigated by about half of the
funding being provided by the Central Bank to support the bank's
public policy role and by the Treasury guarantee on funding from
Supranationals. Liquidity is low at just 5% of assets, however
the bank is exempt from Central Bank reserve requirements and its
liabilities have a longer maturity than its assets.

RATIONALE FOR THE LONG-TERM RATINGS

Turk Eximbank's Ba1 senior unsecured ratings are driven by the
bank's BCA and Moody's expectations of very high likelihood of
government support from Turkey (rated Ba1 with negative outlook),
which results in one notch of uplift from the bank's BCA.

Moody's expectations reflect the bank's policy mandate as
Turkey's official export credit agency, with all board members
appointed by the Minister of the Economy and funding largely
provided by the Central bank or guaranteed by the Treasury.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook remains driven by the negative outlook of
the Turkish government's Ba1 debt rating. While Moody's continues
to assume a very high probability of support for this bank,
leading to one notch of uplift for the debt rating, the negative
outlook reflects a potential weakening in the government's
capacity to provide support in case of need, as signalled by the
negative outlook on the Ba1 sovereign rating.

FACTORS THAT COULD LEAD TO AN UPGRADE

There is limited upside to the ratings at present given the
negative outlook on the bank's ratings and on the sovereign
rating. Moody's could however stabilise the outlook if the
sovereign outlook stabilises.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Moody's could downgrade the ratings:

1) if the rating agency anticipates that the deterioration in the
macro environment will lead to a weakening in refinancing
capability, profitability and asset risk of the bank;

2) following a downgrade of the sovereign rating or if Moody's
lower Moody's assumptions of the government's capacity to provide
support in foreign currency or

3) if any ceilings are lowered in conjunction with any sovereign
downgrade.

LIST OF AFFECTED RATINGS

Issuer: Export Credit Bank of Turkey A.S.

Assignments:

-- Long-term Counterparty Risk Assessment, assigned Ba1(cr)

-- Short-term Counterparty Risk Assessment, assigned NP(cr)

-- Short-term Issuer Rating (Local and Foreign Currency),
    assigned NP

-- Long-term Issuer Rating (Local Currency), assigned Ba1
    Negative

-- Other Short Term (Foreign Currency), assigned (P)NP

-- Adjusted Baseline Credit Assessment, assigned ba2

Affirmations:

-- Long-term Issuer Rating (Foreign Currency), affirmed Ba1
    Negative

-- Senior Unsecured Medium-Term Note Program (Foreign Currency),
    affirmed (P)Ba1

-- Senior Unsecured Regular Bond/Debenture (Foreign Currency),
    affirmed Ba1 Negative

-- Baseline Credit Assessment, affirmed ba2

Outlook Action:

-- Outlook remains Negative

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
===========================


ALGECO SCOTSMAN: Fitch Assigns 'B(EXP)' LT Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has assigned Algeco Scotsman Global S.a r.l.
(Algeco) an expected Long-Term Issuer Default Rating (IDR) of
'B(EXP)'. The Outlook on the Long-Term IDR is Stable.

At the same time, the agency has assigned an expected rating to
the EUR1,120 million senior secured notes to be issued by Algeco
Scotsman Global Finance plc (Algeco Finance) of 'B+(EXP)' with a
Recovery Rating of 'RR3' and an expected rating to the EUR295
million senior unsecured notes to be issued by Algeco Scotsman
Global Finance 2 plc (Algeco Finance 2) of 'CCC+(EXP)' with a
Recovery Rating of RR6'.

Algeco's expected Long-Term IDR primarily reflects the company's
high initial leverage following the disposal of Williams Scotsman
International, Inc., Algeco's US subsidiary, and the completion
of the acquisition of Touax Modular Division Europe and Iron
Horse Ranch. Algeco's solid franchise in European modular space
leasing underpins the ratings.

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already received.
Failure to issue the instruments would result in the withdrawal
of the expected IDR and debt ratings.

KEY RATING DRIVERS
IDR

Algeco's post-restructuring funds from operations (FFO) adjusted
leverage is high at around 6.2x. However, this should fall to
around 5.3x by 2021 if the company realises its deleveraging
potential that compares favourably to peers.

Algeco's credit profile benefits from a well-established, leading
and cash-generative franchise in a number of large and developed
markets for modular space leasing, notably France, Germany and
the UK (but increasingly also in smaller European markets
including eastern Europe). The Touax acquisition strengthens its
already leading franchise, particularly in France, Germany and
Poland. Utilisation rates (with the exception of the UK) are
strong and relatively stable. Algeco's franchise in the US and
Australia is more specialised and, in Fitch view, follows the
volatility in the respective commodities sectors. However, the
disposal of Algeco's US operations has reduced the company's
overall sensitivity to more volatile sectors.

Fitch's overall assessment of Algeco's company profile is
constrained by the small size of the modular space leasing market
and Algeco's effectively monoline business model with modular
space leasing and rental accommodations being sensitive to
similar cyclical factors.

Algeco's revenue base is sensitive to construction activity for
its European franchise and oil/commodity price developments for
its US and Australian franchises. In addition, the Touax
acquisition, in particular, is sizeable and exposes Algeco to
integration and execution risks.

The IDR also reflects Algeco's smaller size and moderately lower
profitability than other specialised leasing and rental companies
such as Ashtead, Loxam, Europcar and Herc. Those competitors are
more diversified by customer, product and services than Algeco.

Algeco's business profile is comparable to Erpe Midco Limited
(Praesidiad; B/Stable), a niche specialist of high-security
solutions for strategic assets. Both companies operate in a
specialised industry and carry high leverage, although Praesidad
is smaller and its revenue base more volatile. However, Fitch
expects Praesidiad to generate higher free cash flow (FCF)
margins than Algeco due to lower capex requirements.

SENIOR SECURED AND UNSECURED NOTES
Fitch believes Algeco is more likely to be sold or restructured
as a going concern rather than liquidated. The industry is highly
fragmented across Europe and further consolidation is likely.

As part of its bespoke recovery analysis, Fitch applied a
discount of 25% to its 2018 EBITDA estimate to derive a post-
restructuring EBITDA. At this discount, Fitch expect free cash
generation to be neutral to slightly negative.

In a distressed scenario, Fitch believes that a 5.5x multiple
reflects a conservative view of Algeco's post-restructuring
value. This multiple is derived from the analysis of publicly
traded comparable companies in the building materials and
equipment rental industries. Fitch believes this multiple also
reflects Algeco's new scale in Europe, profitability and
geographic diversification in a consolidating industry. Fitch
have also assumed a 10% administrative claim in the recovery
analysis.

Algeco's asset-based lending (ABL) facility has a first lien on
assets under certain jurisdictions (US, Australia, New Zealand
and the UK) and a second lien on the assets in the rest of the
world. Fitch looked at the specific collateral value relative to
the claim amount. In this case, if the first lien jurisdiction
assets are sufficient to cover the ABL facility then Fitch would
apply 100% recovery. If the ABL collateral is insufficient to
cover the facility, then the non-covered amount would be added to
equally ranking second lien claims to arrive at a blended
recovery rate on the entire ABL facility. If the ABL collateral
and the second lien collateral together are insufficient to cover
the ABL claim, then the deficiency claim (unsecured portion)
would be added to equally ranking unsecured debt and the total
ABL recovery would be a weighted average of all three recovery
rates.

Fitch assumes the assets under ABL jurisdiction will be able to
cover the US$400 million commitment amount of the ABL and
therefore views the instrument as super senior to the senior
secured notes.

Under these assumptions, recoveries for the ABL facility are
strong (100% but capped at 'RR2' due to France's country cap).
Recoveries for senior secured notes holders stand at 61%,
resulting in a long-term rating of 'B+'/'RR3', one notch above
Algeco's Long-Term IDR. Recoveries for senior unsecured notes are
nil (RR6), resulting in a rating two notches below Algeco's Long-
Term IDR.

Key Fitch rating case assumptions:
- Average fleet size broadly in line with management;
- Fitch applies a moderate haircut to the management forecasted
   occupancy rates;
- Fitch applies a more pronounced haircut on pricing: average
   price on modular space increases 1.5% per year (vs. 2.5 % in
   the management case). Fitch applies a 2% yearly decrease in
   pricing for the remote accommodation business;
- Fitch applies a 25% haircut to growth for the business lines
   of delivery and installation and new units;
- EBITDA margins to increase to around 29% in 2022 from around
   25% in 2018 in the Fitch case (compared with around 33% from
   around 26% in the management case);
- Around EUR120 million of capex per annum representing over 10%
   of revenue; this does not take into account potential capex
   savings from improving utilisation rates in the recently
   acquired Touax portfolio; however, Fitch acknowledges that
   Algeco has the flexibility to reduce capex - at least for a
   certain period - without a material immediate effect on
   earnings;
- EUR5 million working capital outflow; and
- No further bolt-on acquisitions.

RATING SENSITIVITIES
IDR

Operating performance and deleveraging exceeding Fitch's base
case could -- all else being equal -- lead to a one-notch upgrade
of Algeco's Long-Term IDR in the medium-term. In particular,
gross leverage sustainably below 5.0x on a FFO adjusted basis
would support an upgrade.

A material delay in Algeco's deleveraging, for instance due to
problems with integration of the Iron Horse and Touax would put
pressure on Algeco's Long-Term IDR. Gross leverage sustainably
above 6.5x on a FFO adjusted basis could lead to a downgrade.

Utilisation rate stress (in particular if combined with unchanged
capex) or inability to realise revenue improvements due to re-
pricing and increase of additional services would lead to a
downgrade. Increase of revenue concentration by client or sector
(notably construction) would also put pressure on Algeco's
ratings.


CARILLION PLC: FRC Launches Investigation Into KPMG's Audit
-----------------------------------------------------------
Naomi Rovnick at The Financial Times reports that the UK's
accounting watchdog has launched an investigation into the
auditing of accounts at collapsed government outsourcer
Carillion, which was carried out by big four accountant KPMG.

This comes after market regulator the Financial Conduct Authority
said in early January that it was probing the "timeliness and
content" of financial statements Carillion issued in the run-up
to a July profit warning, the FT notes.  However, the FCA's remit
does not cover auditing, the FT states.

According to the FT, audit watchdog the Financial Reporting
Council said on Jan. 29 that it has decided "following enquiries
made since a profit warning in July 2017, to open an
investigation under the Audit Enforcement Procedure in relation
to KPMG's audit of the financial statements of Carillion plc."

The FRC added: "The investigation will cover the years ended
December 31, 2014, 2015 and 2016, and additional audit work
carried out during 2017."

Its investigation will "consider whether the auditor has breached
any relevant requirements, in particular the ethical and
technical standards for auditors."

Carillion collapsed into liquidation earlier this month after
building up unsustainable debts and a large pension deficit, the
FT recounts.

Carillion plc employs about 43,000 people worldwide and provides
services to half the UK's prisons, as well as hundreds of
hospitals and schools.


CARILLION PLC: Union Calls for Investigation Into Blackrock
-----------------------------------------------------------
Josephine Cumbo at The Financial Times reports that a UK trade
union has called for an investigation of reports that the company
investing pension money for thousands of Carillion workers was
making stock market bets against the failed construction company
at the same time.

According to a UK Financial Conduct Authority register, BlackRock
Investment Management UK shorted Carillion -- making a bet its
share price would fall -- on Friday Jan. 12, the last working day
before the construction company was placed in compulsory
liquidation on Monday, Jan. 15, the FT relates.

BlackRock was shorting Carillion as far back as 2012, but
increased its positions in 2017, the year Carillion gave two
profit warnings, the FT states.

Unison, whose members include former Carillion workers, called
for a probe of what it called "a conflict of interest", the FT
relays.

Unison has called for the Work and Pensions committee of MPs,
which is probing Carillion's collapse, to investigate BlackRock
is still the investment manager for Carillion's workplace DC
schemes, according to the FT.

Carillion plc employs about 43,000 people worldwide and provides
services to half the UK's prisons, as well as hundreds of
hospitals and schools.


JERROLD FINCO: Fitch Rates GBP100MM Sr. Secured Notes 'BB(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned Jerrold FinCo plc's GBP100 million
senior secured notes issue an expected rating of 'BB(EXP)'. The
notes are guaranteed on a senior basis by Jerrold FinCo's parent
company, Together Financial Services Ltd (Together; BB/Stable), a
UK-based specialist mortgage lender.

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

Jerrold FinCo plc is a finance subsidiary of Together. Fitch
expects the notes, which are guaranteed by Together and by other
key group operating entities, to be predominately used to reduce
drawings under the Together group's securitisation structures.
Consequently, Fitch expect the issue to increase Together's
overall funding capacity and slightly broaden the group's funding
diversification away from predominately securitisation funding.
Fitch do not expect the notes issue to lead to an increase in
Together's overall drawn leverage in the near term.

The notes, maturing in 2024, are a tap issuance of Jerrold
Finco's existing senior secured notes issued in February 2017.
They are secured on a first-priority basis by the same assets as
Together's revolving credit facility.

KEY RATING DRIVERS

The senior secured notes are rated in line with Together's
Long-Term Issuer Default Rating (IDR) as Fitch views the
probability of default on the notes as the same as the
probability of default of Together. The notes' rating is
therefore driven by the same considerations that drive Together's
Long-Term IDR.

RATING SENSITIVITIES

The rating of the senior secured notes is primarily sensitive to
changes in Together's Long-Term IDR (see 'Fitch Upgrades Together
to 'BB'; Stable Outlook' published on Jan. 15, 2018 for
Together's key rating drivers and sensitivities).


MB AEROSPACE: Moody's Assigns B2 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 corporate
family rating (CFR) to MB Aerospace Holdings II Corp. (MBA) and a
definitive B2 rating to the $255 million senior secured 1st lien
term loan and $50 million senior secured 1st lien revolving
credit facility. Concurrently, Moody's has also assigned a B2-PD
probability of default rating (PDR). The outlook on all ratings
is stable.

RATINGS RATIONALE

Moody's has assigned a definitive CFR to MB Aerospace and
definitive ratings to its 1st lien debt obligations following the
closing of the acquisition of Taiwan-based Asian Compressor
Technology Services Company Limited (ACTS) on January 22, 2018
and the final execution of the debt facilities. Moody's has
reviewed the executed terms and conditions of MB Aerospace's new
bank facilities. The final terms were consistent with the
preliminary terms and conditions received when Moody's assigned
provisional ratings on December 6, 2017 hence the assignment of
definitive ratings in line with the provisional ratings.

The B2 Corporate Family rating reflects (i) MBA's leading
position as a tier 1 supplier of components for aero-engines,
(ii) the company's good engine platform diversification with
exposure to more than 80 platforms with a high share of sole-
supplier position on these platforms, (iii) sound industry
prospects with strong growth anticipated from a new generation of
engines to be produced over the next few years as well as good
order backlog as of YTD September 2017, (iv) high barriers to
entry to the aerospace & defense industry through regulation,
capital intensity and long term customer relationships, (v)
strong profitability reflecting the high barriers to entry and
the high level of specialization of MBA's products and (vi) MBA's
balanced revenue distribution between new equipment production
and repair but also across geographies and end markets
(commercial versus defense revenues).

The Corporate Family rating remains constrained by (i) MBA's
limited scale with 2017E pro-forma revenues of $270-280 million
in an industry where scale is very important, (ii) the high
leverage pro-forma of the acquisition of ACTS with an expected
2017 pro-forma Moody's adjusted Debt/EBITDA ratio of around 6.0x,
(iii) the capital intensity of MBA's business model especially at
a time when the company needs to ramp up investments to be able
to supply components for the new generation aircraft, which is
only partly mitigated by the high cash conversion of ACTS and,
hence, MBA's limited ability to generate meaningful positive free
cash flow, and (iv) the need to remain a consolidator of an
industry, which is expected to rationalize its supplier base over
time from currently 400 to around 100.

The stable outlook assigned to the rating reflects Moody's
expectation that MB Aerospace will continue to benefit from
supportive market conditions leading to low-mid single digit top
line growth and at least stable operating margins over the next
12 to 18 months at least. The stable outlook also encompasses the
expectation that MB Aerospace will generate positive free cash
flows and will maintain Moody's adjusted gross leverage below
6.0x through the cycle.

STRUCTURAL CONSIDERATIONS

Based on the final terms and conditions for the financing, senior
secured 1st lien term loan and RCF are secured by an asset pledge
over all assets of US subsidiaries of MBA (around 45% of global
assets pro-forma of the acquisition of ACTS) and over at least
65% of the stock capital of non-US subsidiaries of MBA.

Moody's has used a standard 50% recovery rate at the family level
to reflect the presence of a 2nd lien debt instrument in the
proposed capital structure and the limited creditor protection
offered by the covenant lite structure (only one springing
covenant if the RCF is drawn more than 35%).

The senior secured first lien facilities are rated in line with
the corporate family rating due to the initially weak rating
positioning of MBA within the B2 rating category at closing of
the transaction as well as the relatively limited security
package offered to creditors.

Factors that Could Lead to an Upgrade

* Adjusted Debt / EBITDA below 5.0x

* FCF / Debt > 5% sustainably

* Strong liquidity profile

Factors that Could Lead to an Downgrade

* Adjusted Debt / EBITDA above 6.0x

* Negative FCF

* Deterioration of liquidity profile, as evidenced by sustained
drawing under the RCF

MB Aerospace is a tier 1 supplier of original equipment parts for
aero-engines, focused on large-diameter cases, housings, as well
as rotating parts. The company is exposed to the three large
engine producers UTC /Pratt & Whitney (part of United
Technologies Corporation, A3 ratings under review), Rolls-Royce
plc (A3 negative) and GE Aviation (General Electric Company, A2
stable).

In January 2018 MB Aerospace completed the acquisition of Asian
Compressor Technology Services (ACTS) from Pratt & Whitney for an
enterprise value of $115 million (including $30 million earnout
payments subject to certain revenue milestones). ACTS is a repair
and maintenance business located in Taiwan.

The consolidated company generated pro forma sales of $268
million in 2016 and a Moody's adjusted EBITDA of $53 million
(19.8% margin). MB Aerospace is owned by private equity funds
managed by Blackstone since October 2015.

The principal methodology used in these ratings was Global
Aerospace and Defense Industry published in April 2014.



                            *********

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 * * *