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

                           E U R O P E

          Tuesday, February 13, 2018, Vol. 19, No. 031


                            Headlines


F R A N C E

AJIRE: March 2 Tender Offer Submission Deadline Set


G E R M A N Y

SAPPI PAPIER: S&P Affirms 'BB' Issue Rating on Sr. Unsec. Debt
THYSSENKRUPP AG: Fitch Maintains 'BB+/B' Issuer Default Ratings


I R E L A N D

NEWHAVEN II: Fitch Assigns 'B-(EXP)sf' Rating to Class F-R Notes


I T A L Y

CLARIS FINANCE 2007: S&P Affirms BB-(sf) Rating on Class C Notes
PIETRA NERA: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes


N O R W A Y

CAMPOSOL SA: S&P Rates $300MM Senior Unsecured Notes 'B+'


P O L A N D

BANK OCHRONY: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
EUROBANK SA: Fitch Upgrades Viability Rating to 'bb+'
GETIN NOBLE: Fitch Lowers Long-Term IDR to B+, Outlook Stable


S P A I N

BBVA RMBS 11: S&P Raises Class C RMBS Notes Rating to BB (sf)
BFA TENEDORA: Fitch Affirms 'BB+' IDR, Alters Outlook to Positive


S W E D E N

POLYGON AB: Fitch Assigns First-Time 'B(EXP)' Long-Term IDR


T U R K E Y

YILDIZ HOLDING: In Talks to Restructure Debt with Ten Banks


U N I T E D   K I N G D O M

ASPEN INSURANCE: Moody's Affirms Ba1 Preference Stock Rating
CARILLION PLC: Accused by Suppliers of Using Delaying Tactics
CHANNEL ISLANDS: Creditors Meeting Scheduled for February 21
INTERSERVE PLC: Says Talks with Lenders on Rescue Plan Ongoing
IWH UK: S&P Assigns 'B' LT Corp Credit Rating, Outlook Negative

JAMIE OLIVER: 12 Restaurants Face Closure After CVA Okayed
VIRIDIAN GROUP: Moody's Alters Outlook to Neg., Affirms B1 CFR
WILLIAMS INDUSTRIAL: Enters Administration, 145 Jobs Affected


X X X X X X X X

* SCHMOLZ + BICKENBACH Takes Over Parts of Asco Industries


                            *********



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


AJIRE: March 2 Tender Offer Submission Deadline Set
---------------------------------------------------
The deadline for submission of takeover offer tenders for
A.J.I.R.E. is March 2, 2018.

Based in Mayenee, France, the company is engaged in the creation
of home fabrics, custom manufacturing and consulting in
personalized decoration.  The company has revenue of EUR7.3
million and employs 75 people.

The company's intangible assets include commercial property (12
shops), inventory, customers and trade name.  Its tangible assets
include equipment, office machinery, installations and fittings.

Electronic data-room access will be given after signing a
confidentiality agreement and user specifications.

Offers must be submitted at:

    A.J.I.R.E. - Administrateurs Judiciaries - Maitre Erwan MERLY
    6 cours Raphael Binet
    35065 RENNES CX

Contact information:

         Doria Legout
         Telephone: 02 99 67 84 90
         Fax: 02 99 30 50 10
         E-mail: etude.rennes@ajire.eu


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G E R M A N Y
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SAPPI PAPIER: S&P Affirms 'BB' Issue Rating on Sr. Unsec. Debt
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term
corporate credit ratings on South Africa-based forest products
group Sappi Ltd. The outlook is stable.

S&P said, "At the same time, we affirmed our 'BB' issue rating on
the group's outstanding senior unsecured debt, issued by Sappi
Papier Holding GmbH. The recovery rating remains at '4',
indicating our expectation of average recovery prospects (30%-
50%; rounded estimate 45%) in the event of a payment default.

"Sappi continues to exhibit robust operating performance, with
strong cash flow generation and modest capital investments. After
a period of gradual deleveraging, the group will maintain S&P
Global Ratings-adjusted debt to EBITDA at or close to 2.5x,
according to our estimates, which is broadly in line with
management's reported debt to EBITDA target of 2.0x. We also take
into account, however, that the group's leverage could rise if
management chooses to increase capital expenditures (capex) for
major expansionary projects or to follow a strategy that is more
shareholder friendly than our base-case assumption.

"Our view of Sappi's business risk profile reflects the group's
large scale and broad geographic diversification. Production is
based in Europe, North America, and South Africa, and more than
25% of the group's sales are to Asia. Sappi's strategic focus on
increasing specialty paper and packaging grades to balance the
ongoing structural decline in demand for coated paper in the
coming years, alongside its existing position and planned
capacity increases in dissolving wood pulp (DWP) production, will
likely drive revenue growth and margin expansion in the medium
term. We note that Sappi's specialty capacity will likely
strengthen on the back of its acquisition of a specialty paper
unit from Switzerland-based Cham Paper Group, which the group
expects to  finalize in second-quarter 2018."

Despite positive momentum in product diversification and margins,
Sappi's business risk is still constrained by the group's
exposure to the volatile and cyclical forest and paper products
industry, in which it is primarily a price-taker. S&P notes that
the structurally declining paper markets in Europe and North
America comprised 64% of the group's global sales (by
destination) in 2017. Furthermore, the otherwise broadly
favorable operating environment is somewhat offset by the
negative margin impact on South African operations of a
strengthening South African rand (ZAR). In addition, S&P views
Sappi's customer concentration in the DWP segment as a risk, as a
large proportion of sales is derived from just two customers
under long-term contracts.

Sappi's financial risk profile, in S&P's view, remains supported
by a positive trend in credit metrics, following increasing
earnings and moderating debt. S&P views positively management's
statements that it will maintain reported net debt to EBITDA
below 2.0x as a benchmark, although the ratio could temporarily
exceed this level during periods of marked expansionary
investment. "We factor into our capex forecasts management's
guidance of $900 million over 2018-2019 and note Sappi's track
record of opportunistically undertaking additional investments in
strategic projects. Furthermore, we anticipate dividends of $82
million in 2018 and trending toward a payout of one-third of
annual earnings by 2020, in line with Sappi's stated dividend
policy. We believe Sappi will maintain adjusted debt to EBITDA of
about 2.4x-2.7x throughout 2018-2020," said S&P.

S&P's base-case estimates for 2018 include a 2.7% increase in
revenue, an adjusted EBITDA margin of around 14%, which
represents a decline in EBITDA to $741 million in 2018 from $785
million in 2017, reflecting conversion downtime, one less
accounting week, and modest pricing pressure over the year.
However, S&P expects an uptick in EBITDA margins to 15%-16% for
2019-2020 as Sappi begins to realize value from its capex
program. S&P acknowledges that Sappi's operational cash flow
generation could differ from its expectations because of volatile
selling prices and currency exposure. These factors underpin
S&P's assessment of the group's financial risk profile as
significant, even though its core credit metrics of adjusted
funds from operations (FFO) to debt and adjusted debt to EBITDA
are in line with its intermediate financial risk category.

S&P said, "The stable outlook indicates our view that Sappi will
maintain its credit metrics close to current levels, with
adjusted FFO to debt of approximately 30% and adjusted debt to
EBITDA around 2.5x. We base our assumptions on the combined
effects of improving market conditions and higher EBITDA margins
with increased demands on cash posed by higher expansionary capex
and dividends -- which may lead to free operating cash flow
turning negative in 2019 and negative discretionary cash flow in
2018-2019.

"We note that Sappi's financial policy stipulates that it should
maintain reported net debt to EBITDA at or below 2.0x (about 2.5x
as adjusted by S&P Global Ratings). However, management has
indicated that the group's leverage could exceed this level
during investment periods, but that it would prioritize
deleveraging to
targeted levels within the subsequent two to three years.

"We could consider raising the rating if Sappi were to deleverage
further while maintaining adequate profitability. We think such a
scenario could materialize if the group scaled its investment
levels to its cash flows or if the revenue growth and margin
expansion benefits of planned capex yield larger than expected
benefits, such that leverage falls sustainably below 2.5x. We
could consider raising our rating if adjusted FFO to debt were
sustainably above 35%, given the group's current business risk.
We believe investment in growth-orientated projects will be key
to Sappi maintaining its current business risk profile over the
medium term.

"We could downgrade Sappi if its financial risk profile were to
substantially deteriorate. This could be the result of a sharp
downturn in the operating environment, with falling sales prices
and adverse currency movements, coupled with negative cash flow
generation, due to high investments and elevated dividends. We
would consider a ratio of FFO to debt of below 20% for an
extended period as commensurate with a lower rating.


THYSSENKRUPP AG: Fitch Maintains 'BB+/B' Issuer Default Ratings
---------------------------------------------------------------
IG Metall union's majority vote (92% of voting staff) in favour
of the collective agreement with thyssenkrupp (TK, BB+/Rating
Watch Positive) paves the way for a credit-positive 50:50 steel
JV with Tata Steel Limited (BB/Rating Watch Evolving), says Fitch
Ratings. Consent from German steel workers constitutes a major
milestone towards a successful inception of the steel JV, as it
allows TK to put into effect key strategic and operational goals.

The collective agreement, announced on 21 December 2017,
following negotiations of IG Metall and TK's management team,
contains assurances regarding planned investments and the
continuation of sites and employment regarding TK's steel
operations. Pivotal points of the agreement include, but are not
limited to, i) the assurance of employment and existing sites
until September 2026; ii) continuation of investments into the
asset base of German steel sites of roughly EUR400 million p.a.;
and iii) TK's commitment to hold an interest in the JV for at
least six years after closing, while a change in the shareholder
structure is not precluded.

Fitch is maintaining TK's Long- and Short-Term Issuer Default
Ratings (IDR) of 'BB+' and 'B', respectively, on Rating Watch
Positive until further clarity on the proposed JV emerges.
Signing of a finalised definitive JV agreement, which remains
subject to ongoing due diligence, is expected in early 2018.
Assuming regulatory clearance, the transaction is envisaged to
close in late 2018. Fitch will review definitive terms, such as
the confirmation of the JV's non-recourse nature to the rest of
the group, and will review its evaluation on synergies,
restructuring needs and dividend assumptions of the JV, which
will impact TK's leverage and cash-flow metrics.

Fitch reiterates its credit-positive view on the JV, as reduced
direct exposure to the steel industry, and relative increase in
the share of TK's more stable capital-goods businesses will be
beneficial in reducing volatility and improving the overall
business profile.

TK's credit profile has remained on a positive trajectory over
recent months. In the financial year ended 30 September 2017
(FY17), the group, has reduced its funds from operations (FFO)
adjusted net leverage to around 2.1x (from 3.3x in FY16), aided
by proceeds from the disposal of CSA and a EUR1.4 billion equity
increase, as well as by a moderately benign global steel
industry. FFO gross leverage stood at 4.4x and is likely to
remain between 3.5x and 4.5x, as TK aims to maintain a strong
liquidity position.


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I R E L A N D
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NEWHAVEN II: Fitch Assigns 'B-(EXP)sf' Rating to Class F-R Notes
----------------------------------------------------------------
Fitch Ratings has assigned Newhaven II CLO DAC refinancing notes
expected ratings:

Class A1-R: 'AAA(EXP)sf'; Outlook Stable
Class A2-R: 'AAA(EXP)sf'; Outlook Stable
Class B1-R: 'AA(EXP)sf'; Outlook Stable
Class B2-R: 'AA(EXP)sf'; Outlook Stable
Class C-R: 'A(EXP)sf'; Outlook Stable
Class D-R: 'BBB(EXP)sf'; Outlook Stable
Class E-R: 'BB(EXP)sf'; Outlook Stable
Class F-R: 'B-(EXP)sf'; Outlook Stable

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

Newhaven II CLO DAC is a cash flow collateralised loan obligation
(CLO). Net proceeds from the notes will be used to redeem the old
notes, with a new identified portfolio comprising the existing
portfolio, as modified by sales and purchases conducted by the
manager. The portfolio is managed by Bain Capital Credit, Ltd..
The refinanced CLO envisages a further four-year reinvestment
period and an 8.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality
Fitch places the average credit quality of obligors in the 'B'
category. The Fitch-weighted average rating factor (WARF) of the
current portfolio is 32.42, below the indicative maximum
covenanted WARF of 33 for assigning the expected ratings.

High Recovery Expectations
At least 90% of the portfolio will comprise senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
current portfolio is 65.4%, above the minimum covenant of 64.5%
for pricing.

Limited Interest Rate Exposure
Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 11.8% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

Diversified Asset Portfolio
The covenanted maximum exposure to the top 10 obligors is 18% of
the portfolio balance. This covenant ensures that the asset
portfolio will not be exposed to excessive obligor concentration.

Unhedged Non-euro Assets
Unhedged non-euro-denominated assets are limited to an exposure
of 2.5% and, combined with principal hedged obligations (those
with FX forward agreements) are limited to a 5% exposure. These
assets are subject to principal haircuts, and the manager can
only invest in them if, after the applicable haircuts, the
aggregate balance of the assets is above the reinvestment target
par balance.

VARIATIONS FROM CRITERIA

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

The amendment has no impact on the ratings. Fitch has modelled
the transaction at the pricing point with 10% of the 'B-' assets
with a 'CCC' rating instead, which resulted in no impact on the
ratings.

RATING SENSITIVITIES

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


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I T A L Y
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CLARIS FINANCE 2007: S&P Affirms BB-(sf) Rating on Class C Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Claris Finance
2007 S.r.l.'s class A, B, and C notes.

S&P said, "The affirmations follow our credit and cash flow
analysis of the most recent transaction information that we have
received on the November 2017 interest payment date. Our analysis
reflects the application of our European residential loans
criteria and our structured finance ratings above the sovereign
criteria."

Collateral performance has been stable over the last two years
after the peaks recorded in 2014. As of November 2017, 3.64% of
the total portfolio balance was in arrears, while 90+ days
arrears were 1.75% of the total portfolio balance, compared with
3.45% of total arrears and 2.04% of 90+ days arrears as of
November 2016. S&P has projected arrears in its credit analysis
to account for some variability in the 90+ days bucket over the
last three years.

S&P said, "Our credit analysis results show an increase in the
weighted-average foreclosure frequency (WAFF) at all rating
levels, except for the 'B' rating level, compared with those at
our previous review and a decrease in the weighted-average loss
severity (WALS) for each rating level. The increase in the WAFF
is mainly due to the arrears projection we have applied, which is
not sufficiently offset by the higher weighted-average seasoning.
As for the WALS, the decrease results from the lower market value
declines applied and the lower weighted-average current loan-to-
value ratio compared with those at our previous review.

"In our opinion, the outlook for the Italian residential mortgage
and real estate market is not benign and we have maintained our
expected 'B' foreclosure frequency assumption at 2.55% when we
apply our European residential loans criteria, to reflect this
view."

  Rating level       WAFF (%)    WALS (%)
  AAA                   18.80        9.45
  AA                    14.72        7.16
  A                     10.91        3.43
  BBB                    8.75        2.10
  BB                     6.67        2.00
  BB-                    5.95        2.00
  B+                     5.59        2.00
  B                      4.51        2.00

The available credit enhancement for all classes of notes has
increased since S&P's previous review, as follows:

  Class              November    November
                     2017 (%)    2016 (%)

  A                     32.65       27.79
  B                     26.95       22.95
  C                     15.30       13.06

This transaction features a reserve fund, which currently
represents 7.6% of the outstanding performing balance of the
mortgage assets. It can no longer amortize, as cumulative
defaults have breached the transaction's amortization conditions
by exceeding 3.9%.

When the cumulative default rates in Claris Finance 2007 reach
certain levels, the issuer may defer interest payments on the
class B and C notes. The trigger is 13.8% of the collateral
balance at closing for the class B notes, and 8.7% for the class
C notes. At the end of the latest collection period, cumulative
gross defaults were 7.50% of the initial collateral balance. If
deferred, interests on the class C notes can be paid after
principal payments allocated first to the class A notes (until
the class A notes fully redeem) and then to the class B notes
(once the class A notes fully redeem). Therefore, if there is
enough cash reserve and excess spread available after principal
payments on the class A and B notes, interest due to the class C
notes can be paid timely even if it was previously deferred. In
S&P's scenarios, the class C notes trigger is hit at the 'BB-'
rating level, however there are still enough available funds to
pay timely interest and repay the principal on this class by the
maturity date.

S&P said, "The interest rate and basis swaps are not in line with
our current counterparty criteria, but are in line with
superseded counterparty criteria. We therefore did not give
benefit to the swaps in our analysis at rating levels one notch
above the long-term 'A' issuer credit rating on Societe Generale
as the swap counterparty, i.e., above a 'A+' rating level. We
considered appropriate cash flow stresses to address interest
rate and basis risk in the transaction.

"As our unsolicited foreign currency long-term sovereign rating
on Italy is 'BBB', the application of our RAS criteria caps at
'AA (sf)' our rating on the class A notes and at 'A+ (sf)' our
rating on the class B notes.

"Taking into account the results of our updated credit and cash
flow analysis and the application of our RAS criteria, we
consider the available credit enhancement for the class A, B, and
C notes to be commensurate with our currently assigned ratings.
We have therefore affirmed our ratings on these classes of
notes."

Claris Finance 2007 is an Italian residential mortgage-backed
securities (RMBS) transaction, which closed in February 2007 and
securitizes a pool of first-ranking mortgage loans that Veneto
Banca SpA, Banca di Bergamo, and Banca Meridiana originated. The
mortgage loans are mainly located in the Veneto and Apulia
regions and the transaction comprises loans granted to prime
borrowers.

  RATINGS LIST

  Class              Rating

  Claris Finance 2007 S.r.l.
  EUR517.025 Million Mortgage-Backed Floating-Rate Notes
  Ratings Affirmed
  A                  AA (sf)
  B                  A+ (sf)
  C                  BB- (sf)


PIETRA NERA: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes
-------------------------------------------------------------
Fitch Ratings has assigned Pietra Nera Uno S.R.L.'s notes
expected ratings:

EUR210 million class A: 'A+(EXP)sf'; Outlook Stable
EUR60 million class B: 'A-(EXP)sf'; Outlook Stable
EUR31.5 million class C: 'BBB-(EXP)sf'; Outlook Stable
EUR41 million class D: 'BB-(EXP)sf'; Outlook Stable
EUR41.1 million class E: 'B(EXP)sf'; Outlook Stable
EUR20.2 million class Z: 'NR(EXP)sf'

The transaction is a securitisation of three commercial mortgage
loans totalling EUR403.8 million to Italian borrowers sponsored
by Blackstone funds. The loans are all variable rate (with
variable margins) and secured on Italian retail assets: a
shopping centre (Palermo loan); two fashion outlet villages
(Fashion District loan); and another fashion outlet village
(Valdichiana loan). All the real estate is located in Italy and
owned by borrowers sponsored by Blackstone.

The final ratings are contingent upon the receipt of final
documents and opinions conforming to the information already
received.

KEY RATING DRIVERS

Exposure to Italian Retail: Prime Italian shopping centre yields
have been below their long-term averages over the last three
years despite a protracted period in which only few markets
reported significant rental increases in the last five years. The
broader economy is now enjoying a stronger recovery than was
previously expected, raising optimism that the retail sector may
see a rebound in performance. Recent dips in retail property
yields may signal growing investor confidence in a rental pick
up.

Collateral Quality: Fitch considers the portfolio to be of
generally good quality, which mitigates the characteristically
short lease length (weighted average (WA) lease term to break of
2.8 years) and predominantly unrated tenant base. The strongest
asset in the portfolio, the Forum Palermo shopping centre, is the
dominant centre in the Palermo region and has an occupancy rate
of 99%. In contrast, the weakest property, the Puglia Outlet
Village in Molfetta, is over 25% vacant (including Phase II,
which is currently closed).

High Leverage, Income Visibility: All three loans have high
leverage. Allowing for scheduled amortisation and holding market
values constant, the exit LTV for Palermo will be 72.6%
(reflecting a low exit debt yield of 8.3%), Fashion District
72.7% and Valdichiana 69%. This is mitigated by the visibility of
cash flows, driven by a highly granular income base and solid
property quality.

Pro-Rata Principal Pay: Prior to loan default, all principal is
repaid pro rata, exposing noteholders to adverse selection and
rising concentration. Property disposals by the Fashion District
borrower incur a release premium, although in Fitch's view, 10%
is insufficient to prevent loan quality weakening were the
Mantova property to be sold. Combined with the prepayment of the
other two loans, this is the constraining rating scenario for the
senior notes. For the junior notes, the ratings are constrained
by prepayment of all but the Palermo property.

KEY PROPERTY ASSUMPTIONS (all by market value)
'Bsf' WA cap rate: 6.7%
'Bsf' WA structural vacancy: 12.8%
'Bsf' WA rental value decline: 2%

'BBsf' WA cap rate: 7.2%
'BBsf' WA structural vacancy: 14.1%
'BBsf' WA rental value decline: 4%

'BBBsf' WA cap rate: 7.8%
'BBBsf' WA structural vacancy: 15.5%
'BBBsf' WA rental value decline: 6.2%

'Asf' WA cap rate: 8.4%
'Asf' WA structural vacancy: 16.8%
'Asf' WA rental value decline: 10.5%

RATING SENSITIVITIES
The change in model output that would apply if the capitalisation
rate assumption for each property is increased by a relative
amount is:

Current rating- class A/B/C/D/E: 'A+(EXP)sf'/'A-(EXP)sf'/'BBB-
(EXP)sf'/'BB-(EXP)sf'/'B(EXP)sf'

Increase capitalisation rates by 10% class A/B/C/D/E:
'A(EXP)sf'/'BBB(EXP)sf'/'BB-(EXP)sf'/'B(EXP)sf'/'CCC(EXP)sf'
Increase capitalisation rates by 25% class A/B/C/D/E:
'BBB+(EXP)sf'/'BBB-(EXP)sf'/'B(EXP)sf'/'CCC(EXP)sf'/'CCC(EXP)sf'

The change in model output that would apply if the vacancy
assumption for each property is increased by a relative amount
is:

Increase in vacancy by 10% class A/B/C/D/E: 'A-
(EXP)sf'/'BBB(EXP)sf'/ 'BB+(EXP)sf'/'B+(EXP)sf' /'B(EXP)sf'
Increase in vacancy by 25% class A/B/C/D/E:
'BBB(EXP)sf'/'BB+(EXP)sf'/ 'BB+(EXP)sf'/'B+(EXP)sf'/'CCC(EXP)sf'

The change in model output that would apply if the capitalisation
rate and vacancy assumptions for each property is increased by a
relative amount is:

Increase in both factors by 10% class A/B/C/D/E:
'BBB+(EXP)sf'/'BBB-(EXP)sf'/'BB-(EXP)sf'/'B(EXP)sf'/'CCC(EXP)sf'
Increase in both factors by 25% class A/B/C/D/E:
'BB+(EXP)sf'/'BB(EXP)sf'/ 'B(EXP)sf'/'CCC(EXP)sf'/'CCC(EXP)sf'


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N O R W A Y
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CAMPOSOL SA: S&P Rates $300MM Senior Unsecured Notes 'B+'
---------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating on
Camposol S.A.'s proposed long-term senior unsecured notes for
$300 million. S&P said, "We also affirmed our 'B+' global scale
corporate credit rating on Camposol. In addition, we affirmed our
'B+' issue-level rating on the company's $147.5 million senior
secured notes due 2021." The outlook remains stable.

On Jan. 30, 2018, Camposol announced a tender offer to purchase
for cash its 10.5% senior secured notes due 2021. Camposol plans
to issue senior unsecured notes for $300 million to repay the
tendered notes, several bank loans for $16 million, and use the
remaining $123 million from the proceeds to finance its growth
strategy and for other corporate purposes.

The rating on the notes is at the same level as the corporate
credit rating, because more than 99% of Camposol's debt will be
composed of the proposed notes on a pro forma basis. The rating
also reflects that the Camposol Holding Ltd, Marinazul S.A., and
Campoinca S.A. subsidiaries will irrevocably and unconditionally
guarantee the notes on a senior unsecured basis. We expect the
proposed transaction to enhance Camposol's capital structure,
improving its maturity profile and interest burden.

The ratings on Camposol reflect its limited scale of operations
compared with those of its global rated peers, limited product
diversification, the discretionary nature of its products, and
asset concentration in Peru. S&P said, "However, we continue to
expect that Camposol will post EBITDA margins above the average
for the global agribusiness sector in the next 12 months.
Moreover, we expect debt-to-EBITDA and EBITDA interest coverage
ratios to remain in line with our current financial risk profile
assessment in the next 12 months. Through the remaining proceeds
of the proposed issuance coupled with expected cash flow
generation, Camposol plans to increase its annual capital
expenditures (capex) up to $120 million annually to continue
expanding its operations. We continue to incorporate a high
volatility for earnings and cash flows for the company stemming
from the cyclical nature of the business, the significant price
fluctuations of Camposol's products, and its exposure to external
factors, including potentially adverse weather conditions."

S&P said, "The stable outlook reflects our expectation that
Camposol will maintain a solid operating and financial
performance in the next 12 months, reflected in EBITDA margins
close to 30%, a debt-to-EBITDA ratio around 3.0x, and EBITDA
interest coverage above 5.0x, even considering the additional
debt from the proposed bond issuance.

"We could downgrade Camposol in the next 12 months if its
operating and financial performance weakens from our current
expectations, reflecting adverse weather conditions that
significantly reduce harvest yields or an unanticipated
aggressive investment strategy, resulting in debt to EBITDA above
4.0x on a consistent basis. A deteriorating liquidity position
could also trigger a negative rating action."

A positive rating action in the next 12-18 months could occur if
the company further diversifies its asset footprint, posts
better-than-expected revenue and margins, and has stronger cash
flow generation and credit metrics--reflected in debt to EBITDA
consistently below 2.0x and consistently positive discretionary
cash flow generation.


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


BANK OCHRONY: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Bank Ochrony Srodowiska's (BOS) Long-
Term Issuer Default Rating (IDR) at 'B+', National Long-Term
Rating at 'BB+(pol)', Support Rating (SR) at '4' and Support
Rating Floor (SRF) at 'B'. Fitch has also affirmed the bank's
Viability Rating (VR) at 'b+'. The Outlooks on the IDR and
National Rating are Stable.

The affirmation reflects Fitch's opinion that there have been
relatively limited changes to the bank's credit profile over the
last 12 months.

KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SENIOR DEBT

BOS's IDRs, National Ratings and senior debt ratings are driven
by the bank's standalone credit strength, as reflected in its VR.

SR AND SRF
BOS's SR and SRF reflect Fitch's view of an only limited
probability of extraordinary support for BOS from the Polish
sovereign, mostly due to the combination of the Polish resolution
legal framework and EU state aid rules. At the same time, Fitch
believes that the state would endeavour to act pre-emptively to
avoid BOS breaching regulatory capital adequacy requirements due
to the state's indirect ownership of the bank and BOS's role in
financing Poland's environmental protection projects.

BOS is controlled by the state-owned National Fund for
Environment Protection and Water Management (the Fund). Fitch
believe that it would be difficult for the Fund to increase
capital at BOS, without triggering state aid and bail-in
considerations, if private shareholders demonstrate that they are
unwilling to support the bank. In July 2016, the Fund and two
other state-related entities acquired about 50% and about 20% of
BOS's share issue, respectively, with the remainder acquired by
private investors. Fitch understand that the Fund is willing to
participate in BOS's new share issue planned in 2Q18, to the
extent of its current shareholding. At end-3Q17, state-related
entities held about a 70% stake in BOS (the Fund: 52.4%).

SUBORDINATED DEBT

The National Long-Term Rating of BOS's subordinated debt is
notched down twice from the bank's National Rating to reflect
weak recovery prospects in case of default.

VR

BOS's VR reflects its weak asset quality and profitability, which
weigh on its capitalisation. The VR also reflects the bank's weak
market franchise and a less stable business model than peers. The
rating is underpinned by BOS's tightened risk appetite and
moderate refinancing risks.

BOS's impaired loan ratio increased to 19.5% at end-3Q17 (from
8.7% at end-3Q16), the highest level among Polish peers rated by
Fitch, which was driven by increased credit risks in the wind
farm portfolio. Loan book quality also suffers from high single-
name concentrations and a moderate Swiss franc mortgage exposure.
The coverage of impaired loans by loan-loss reserves was only
about 22% at end-3Q17, considerably below peers. This is partly
explained by BOS's high reliance on loan collateral and the fact
that many impaired corporate loans are still performing.

Fitch believes that the wind farm portfolio will weigh on BOS's
asset quality and its overall credit risk profile in the medium
term. This is due to an unfavourable operating and regulatory
environment for wind farms (including low prices of green
certificates) and long maturities of the disbursed loans. At end-
3Q17, the (net) wind farm loans equalled a high 112% of the
bank's Fitch Core Capital (FCC). About 70% of these loans (or
10.6% of total gross loans) were classified as impaired, but for
a significant part of them (6.8%) the bank did not incur credit
losses and all exposures continued to be serviced. The coverage
of impaired wind farm loans by specific reserves was 7.4% (or
18.2% for loans with losses incurred). Fitch do not expect any
rapid deterioration of the Swiss franc mortgage portfolio (which
was moderate at about 8.5% of total gross loans at end-3Q17),
assuming no economic stress.

BOS is likely to report a modest annual net profit in 2017
(following a loss of about PLN60 million in 2016), reflecting
improved pre-impairment profitability (due to reduced cost of
funding) but relatively high loan impairment charges. The bank's
ratio of operating profit/risk-weighted assets was low at about
0.8% at end-3Q17. BOS is exempt from the bank tax until it exits
its rehabilitation programme.

BOS's small capital buffers would be materially strengthened if
the planned issue of common equity Tier 1 (CET1) capital (up to
PLN400 million) in 2Q18 is successful. However, the bank's
capitalisation will continue to suffer from its high credit risk
concentrations, large stock of unreserved impaired loans and
subdued profitability.

BOS's FCC ratio was about 11.8% at end-3Q17, if adjusted by
increased regulatory risk weights for foreign-currency mortgages
(effective since 1 December 2017). Unreserved impaired loans
absorbed total FCC (or a still high 95% including the planned
capital increase). Fitch estimate that BOS's end-2017 capital
buffers over the CET1 and total capital adequacy (CAR) minimum
ratios binding since 2018 were about 1.6pp and 1.1pp,
respectively. The buffers would increase to about 4.3pp (CET1)
and 3.8pp (CAR) should the planned capital increase be subscribed
in full. Based on the bank's estimate, the IFRS9 implementation
will only moderately lower its FCC from beginning 2018.

Funding and liquidity positions are generally stable, but BOS is
significantly reliant on typically price-sensitive term deposits
(about 58% of total deposits at end-1H17). The bank has a
reasonable loans/deposits ratio (92% at end-3Q17) given its muted
lending growth. In 2017 BOS reduced its reliance on short-term
Swiss franc/zloty swaps to refinance foreign-currency mortgages
by entering into medium-term cross-currency repo transactions
(secured), covering about 40% of outstanding Swiss franc loans.
At end-3Q17 BOS's liquidity buffer covered about 25% of customer
deposits.

RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND SENIOR DEBT

The IDRs, National Ratings and senior debt ratings are sensitive
to changes in BOS's VR.

SR AND SRF

Domestic resolution legislation limits the potential for
upgrading the bank's SR and SRF. BOS's SR and SRF could be
downgraded and revised to 'No Floor', respectively, if the
sovereign's propensity to support the bank weakens.

SUBORDINATED DEBT

The National Long-Term Rating of BOS's subordinated debt is
sensitive to the bank's National Rating and Fitch's view of
recovery prospects in case of default.

VR

Fitch does not anticipate any positive rating action in the near
term. However, reduced credit risk concentrations, sustainable
and healthy earnings generation (net of the bank levy) and
stronger capital buffers would be positive for the bank's VR.
Conversely, a failure to raise new capital would be negative for
the VR.

A marked and prolonged weakening in the Polish economy (not
Fitch's base scenario) that materially affects the bank's asset
quality, capitalisation and profitability, could lead to its VR
being downgraded.

The rating actions are as follows:

Long-Term Foreign Currency IDR: affirmed at 'B+', Outlook Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
National Long-Term Rating: affirmed at 'BB+(pol)', Outlook Stable
National Short-Term Rating: affirmed at 'B(pol)'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '4'
Support Rating Floor: affirmed at 'B'
PLN2 billion long-term senior unsecured bond programme: affirmed
at 'BB+(pol)'
PLN2 billion short-term senior unsecured bond programme: affirmed
at 'B(pol)'
PLN83 million subordinated debt: affirmed at 'BB-(pol)'


EUROBANK SA: Fitch Upgrades Viability Rating to 'bb+'
-----------------------------------------------------
Fitch Ratings has upgraded Eurobank S.A.'s Viability Rating (VR)
to 'bb+' from 'bb'. Fitch has also affirmed Eurobank's Long-Term
Issuer Default Rating (IDR) at 'A-', National Long-Term Rating at
'AA+'(pol) and Support Rating (SR) at '1'. The Outlooks on the
IDR and National Rating are Stable.

The upgrade of Eurobank's VR reflects Fitch's reassessment of
risks pertaining to the bank's standalone credit profile. It
reflects an extended record of the bank's stable risk appetite
and resilient profit generation, as well as the bank's solid
capital buffers and sound funding and liquidity profile.

The affirmations of the IDRs, National Ratings and Support Rating
reflect Fitch's opinion that there is an extremely high
probability of Eurobank being supported, if required, by its
parent, Societe Generale (SG; A/Stable/a).

KEY RATING DRIVERS
VR

Eurobank's VR is underpinned by its strong risk controls, robust
pre-impairment profitability, considerable capital buffers and
sound funding and liquidity profile. However, the VR also factors
in the bank's higher-risk and less diversified business model
than universal bank peers due to its significant focus on
unsecured consumer lending, its higher than the sector average
impaired loans levels and the bank's small overall size.

We expect asset quality to be broadly stable in the medium term
given Fitch expectations of the bank's stable risk appetite and
supportive economic environment. At end-3Q17, Eurobank's impaired
loans ratio (8.6%) was above the average for the household
segment (6.1%), which was mainly driven by its higher share of
unsecured consumer loans (about 48% of total gross loans at end-
3Q17). Impaired loans were reasonably covered by total loan loss
reserves (in about 65%).

The bank has a moderate legacy portfolio of retail mortgages in
Swiss francs (about 10% of total gross loans at end-3Q17). Their
quality has stabilised, but high loan-to-value ratios could
reduce potential recoveries if the operating environment
deteriorates.

We expect stable profitability in 2018, supported by Eurobank's
strong margins (average net interest margin of about 5.0% at end-
3Q17), decent loan growth and moderate risk costs. The bank's
profitability compares less favourably with higher-rated and
larger peers due to its weaker cost efficiency (about 61%
cost/income ratio) and less diversified revenue sources. At end-
3Q17, the bank's operating profit was equal to about 1.9% of
risk-weighted assets, but the bank levy absorbed about 18% of the
operating profit.

Eurobank's capitalisation is underpinned by its considerable
regulatory capital buffers, robust pre-impairment profit
generation, good risk controls and potential ordinary support
from the parent. These factors cushion risks related to the
bank's focus on higher-risk unsecured consumer loans.

The FCC ratio was about 14.6% at end-3Q17, if adjusted by
increased regulatory risk weights for foreign-currency mortgages
(effective since 1 December 2017). Unreserved impaired loans
equalled a moderate 25% of FCC. Fitch estimate that Eurobank's
end-2017 capital buffers over the CET1 and total capital adequacy
(CAR) minimum ratios binding since 2018 were about 4.0pp and
2.8pp, respectively. Based on Eurobank's estimate, the impact
from the IFRS9 implementation on FCC should be mitigated by
retained 2017 earnings.

The bank's funding and liquidity profile benefits from ordinary
parental support, which mitigates its fairly weak deposit
franchise. At end-3Q17, SG financed Eurobank's entire Swiss franc
mortgage portfolio and a large part of its Polish zloty mortgages
with long-term facilities in respective currencies. Customer
deposits (sourced almost entirely from private individuals)
include a material share of term deposits (about 42%), which
could be price-sensitive.

Fitch views Eurobank's limited scale and relatively narrow
business model focused exclusively on private individuals as a
rating weakness. The bank has about 1% share of sector assets,
but a meaningful franchise in its main operating segments (cash
loans: about 4.5% market share at end-3Q17 according to
Eurobank).

IDRS, NATIONAL RATINGS AND SUPPORT RATING

Eurobank's IDRs, National Ratings and Support Rating are driven
by parental support. The bank's Long-Term IDR is notched down
once from the parent's IDR, reflecting Fitch's view that Eurobank
is a strategically important subsidiary for SG due to SG's
strategic focus on central and eastern Europe and its strong
commitment to the Polish market. This has been demonstrated by a
fairly long record of substantial funding and liquidity support
provided by SG to the Polish subsidiary. The cost of potential
support should be easily manageable for SG in light of Eurobank's
small relative size (about 0.2% of SG's consolidated assets at
end-3Q17).

Eurobank's Short-Term IDR of 'F1' is the higher of two
corresponding with a 'A-' Long-Term IDR. This reflects its strong
coverage of short-term liabilities by liquid assets and Fitch
view that the parent's propensity to support Eurobank is more
certain in the near term.

RATING SENSITIVITIES
VR

An upgrade of Eurobank's VR would require a broadening of its
domestic franchise, diversification of the revenue sources and
improvement of its overall credit risk profile. A marked and
prolonged weakening in the Polish economy (not Fitch's base-case
scenario) that materially affects the bank's asset quality,
capitalisation and profitability could lead to its VR being
downgraded.

IDRS, NATIONAL RATINGS AND SUPPORT RATING
Eurobank's support-driven ratings are sensitive to SG's IDRs and
the bank's strategic importance for the parent. The Stable
Outlooks on Eurobank's IDR and National Rating mirror that on SG.

The rating actions are as follows:

Long-Term Foreign-Currency IDR: affirmed at 'A-'; Outlook Stable
Short-Term Foreign-Currency IDR: affirmed at 'F1'
National Long-Term Rating: affirmed at 'AA+(pol)'; Outlook Stable
National Short-Term Rating: affirmed at 'F1+(pol)'
Support Rating: affirmed at '1'
Viability Rating: upgraded to 'bb+' from 'bb'


GETIN NOBLE: Fitch Lowers Long-Term IDR to B+, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has downgraded Getin Noble Bank SA's Long-Term
Issuer Default Rating (IDR) to 'B+' from 'BB-'. Fitch has also
downgraded Getin's Viability Rating (VR) to 'b+' from 'bb-'.

The downgrade reflects deterioration in the bank's standalone
credit risk profile over the last 12 months. This deterioration
is manifested in longer time required for the turnaround of the
bank's business model, subdued pre-impairment operating profit,
high loan impairment charges (LICs) and Fitch reassessment of
Getin's capitalisation capacity to absorb further losses.

KEY RATING DRIVERS
IDRS, NATIONAL RATINGS

The IDRs and National Ratings of Getin are driven by its
standalone strength, as reflected in its VR. The Stable Outlook
on Getin's Long-Term IDR reflects broadly balanced risks related
to the bank's credit profile.

SUPPORT RATINGS AND SUPPORT RATING FLOORS

The Support Rating Floor of 'No Floor' and the Support Rating of
'5' for Getin express Fitch's opinion that potential sovereign
support of the bank cannot be relied upon. This is underpinned by
the Polish resolution legal framework, which requires senior
creditors to participate in losses, if necessary, instead of or
ahead of a bank receiving sovereign support.

VR
Getin's VR suffers from large credit losses, modest
capitalisation, weak reserve coverage, high impaired loans ratio
and subdued earnings. In Fitch assessment Fitch also take into
consideration Getin's substantial high-risk exposure to legacy
foreign-currency (FC) mortgages. Getin's funding, liquidity and
moderate risk appetite are rating strengths.

The turnaround in Getin's profitability will be a lengthy process
because the bank's business model is unable to generate profits
despite a supportive operating environment. Getin's weak pre-
impairment results suffer from high, albeit improving, cost of
funding, material regulatory cost and loan deleveraging driven by
capital pressure and reduced risk appetite. The weak results of
Getin relative to peers should also be viewed in light of its
exemption from the bank levy until the completion of its
rehabilitation programme.

In 9M17 Getin's LICs equaled 185% of the bank's pre-impairment
operating profit. Fitch expect the ratio to have increased in
4Q17 due to further cleanup of legacy problem loans. The
application of IFRS 9 in 1Q18 should materially increase loan
loss reserves. As a result LICs in 2018 should be lower, but a
third annual loss is possible due to weak recovery in earnings.

Getin's capitalisation would not be able to absorb even moderate
asset-quality stress. Fitch estimate that the Fitch Core Capital
(FCC) ratio at end-3Q17 was about 10.5% including the impact from
an increase of the risk weights for FC mortgages to 150% from
100% (applicable from December 2017 to all banks in Poland using
the standardised method). Fitch also believe that the application
of IFRS 9 could reduce FCC ratio to single digits in 1Q18.

We estimate Getin's Tier 1 (10.9%) and total capital (14.1%)
ratios (adjusted for the higher risk weights for FC mortgages) at
end-3Q17 were below the regulatory minimums of 11.9% and 15.37%,
respectively. However, Fitch do not expect regulatory
intervention, because the regulator was made aware of the breach
in advance. Fitch believe that the breach does not impact the
implementation of Getin's rehabilitation programme.

At end-3Q17, Getin's impaired loans ratio equalled 15.4% (sector:
about 6%). The ratio could increase in 2018 due to loan book
contraction and seasoning of loans that were originated at less
stringent standards before 2010. However, the latest vintage
indicators show contained default rates in the new sales in all
major product segments. Getin's underwriting standards are likely
to remain conservative in 2018 and 2019 in light of the bank's
weak capital position and constraints to risk-taking under the
rehabilitation programme. Getin's coverage of impaired loans by
specific loan-loss reserves was low at 39% at end-3Q17, although
it has been gradually improving.

At end-3Q17, FC mortgages (mainly in Swiss francs) accounted for
24% of all gross loans (38% of all gross mortgages). The loans
are drag on the bank's profitability, trap capital and cause
significant volatility to performance and, to lesser extent, to
capitalisation, when the zloty weakens.

Getin's funding is based on stable and granular customer
deposits. Coverage of the bank's short-term liabilities (both in
local and foreign currencies) by liquid assets is reasonable. At
end-3Q17, customer deposits represented 88% of total funding
(excluding derivatives) and this ratio has been stable since
2013. Over 9M17 customer deposits shrank 6% (2016: down 5%), but
the gross loans/deposit ratio remained flat at 93% due to loan
book deleveraging.

RATING SENSITIVITIES
IDRS, NATIONAL RATINGS

The IDRs and National Ratings of Getin are sensitive to changes
in the bank's VR.

VR
We do not expect rating changes in the short-term. A reduction in
impaired loans and FC mortgages, a record of improved revenue and
normalised LICs and significantly strengthened capitalisation
would be positive for the bank's credit profile. Further
deterioration in Getin's asset quality, capitalisation and
profitability could lead to a downgrade.

SUPPORT RATING AND SUPPORT RATING FLOOR

Domestic resolution legislation limits the potential for positive
rating action on the bank's Support Rating and Support Rating
Floor.

The rating actions are as follows:

Long-Term IDR: downgraded to 'B+' from 'BB-'; Outlook Stable
Short-Term IDR: affirmed at 'B'
National Long-Term Rating: downgraded to 'BB+(pol)' from 'BBB-
(pol)'; Outlook Stable
Viability Rating: downgraded to 'b+' from 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'


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


BBVA RMBS 11: S&P Raises Class C RMBS Notes Rating to BB (sf)
-------------------------------------------------------------
S&P Global Ratings raised its credit ratings on BBVA RMBS 11,
Fondo de Titulizacion de Activos' class B and C notes. At the
same time, S&P has affirmed its rating on the class A notes.

S&P said, "The rating actions follow the application of our
related criteria and our credit and cash flow analysis of the
most recent transaction information received as of the January
2018 payment date. Our analysis reflects the application of our
European residential loans criteria, our current counterparty
criteria, and our structured finance ratings above the sovereign
criteria.

Severe delinquencies (+90 days) have decreased to 0.84% in
December 2017 from 0.97% at our previous review, and are below
our Spanish residential mortgage-backed securities (RMBS) index.
Cumulative defaults, since closing in June 2012, have accrued up
to 1.9% of the closing collateral balance.

"After applying our European residential loans criteria to this
transaction, our credit analysis results show a decrease in both
the weighted-average foreclosure frequency (WAFF) and the
weighted-average loss severity (WALS) for all rating levels."

The current WAFF levels reflect the benefit from the increased
seasoning and the transaction's improving performance. The
decreased WALS factors the decrease in the current loan-to-value
ratio, due to the pool's amortization, coupled with the
application of S&P revised market value decline assumptions. The
overall effect is a decrease in the required credit coverage for
all rating levels.

The notes redeem sequentially and the reserve fund has remained
fully funded, which has increased the available credit
enhancement for all classes of notes.

S&P said, "We have determined that our assigned rating on each
class of notes in this transaction should be the lower of (i) the
rating as capped by our current counterparty criteria, (ii) the
rating that the class of notes can attain under our European
residential loans criteria, and (iii) the rating as capped by our
RAS criteria.

"We consider that the documented replacement mechanisms
adequately mitigate counterparty risk exposure to Banco Bilbao
Vizcaya Argentaria S.A., as bank account provider, up to a 'A-'
rating. Therefore, our current counterparty criteria cap our
ratings on the notes in this transaction at 'A- (sf)'.

"Under our European residential loans criteria, the class A, B,
and C notes have sufficient credit enhancement to withstand our
stresses at the 'AA-', 'A-', and 'BB' rating levels,
respectively. The improvements when compared with our previous
full review are mainly due to higher credit enhancement and our
lower credit coverage assumptions.

"The class A notes have sufficient credit enhancement to
withstand a severe stress scenario under our RAS criteria, and
can therefore be rated up to three notches above our long-term
rating on Spain (unsolicited; BBB+/Positive/A-2), or 'A+'. At the
same time, the available credit enhancement for the class B notes
is not sufficient to withstand our severe stresses. Our rating on
this class of notes is therefore constrained at the sovereign
level.

"Taking these factors into account, we have affirmed our 'A-
(sf)' rating on the class A notes. At the same time, we have
raised to 'BBB+ (sf)' from 'BBB (sf)' our rating on the class B
notes and to 'BB (sf)' from 'B+ (sf) our rating on the class C
notes."

BBVA RMBS 11 is a Spanish RMBS transaction, which closed in June
2012. The transaction securitizes a pool of first-ranking
mortgage loans granted to prime borrowers, which BBVA originated.
The portfolio is mainly located in Catalonia, Andaluc°a, and
Madrid.


  RATINGS LIST
  Class              Rating
              To                From

  BBVA RMBS 11, Fondo de Titulizacion de Activos
  EUR1.385 Billion Asset-Backed Floating-Rate Notes

  Rating Affirmed

  A           A- (sf)

  Ratings Raised

  B           BBB+ (sf)         BBB (sf)
  C           BB (sf)           B+ (sf)


BFA TENEDORA: Fitch Affirms 'BB+' IDR, Alters Outlook to Positive
-----------------------------------------------------------------
Fitch Ratings has revised the Outlooks on Bankia, S.A.'s and its
parent company, BFA, Tenedora de Acciones, S.A.U.'s (BFA) Long-
Term Issuer Default Ratings (IDRs) to Positive from Stable and
affirmed the IDRs at 'BBB-' and 'BB+', respectively. Fitch has
also affirmed the Viability Ratings (VRs) at 'bbb-' and 'bb+'.

KEY RATING DRIVERS
IDRS, VR AND SENIOR DEBT

Bankia
Bankia's IDRs and VR reflect its strengthened national retail
franchise following its recent merger with the former Banco Mare
Nostrum S.A. (BMN), sound post-merger capitalisation, adequate
funding and liquidity and a management team that is experienced
in integrations. The ratings also reflect the weakened post-
merger asset quality metrics, as well as the challenge of
integrating BMN and improving banking profitability.

The Positive Outlook reflects Fitch's expectations that Bankia's
asset quality should continue to improve in the next 24 months,
supported by management's track record in managing down problem
assets and Spain's benign economic environment. This will reduce
capital vulnerability to unreserved problem assets. Fitch believe
the new strategic plan that will be publicly presented in
February will centre on asset quality and profitability
improvement, among other things.

Bankia's asset quality has improved in recent years but remains a
rating weakness, especially following the merger with BMN as this
led to a deterioration in key metrics. At end-2017, the group's
post-merger combined problem assets ratio (which includes NPL and
foreclosed assets) increased to 11.1% (compared with 10.0% for
Bankia standalone). This ratio remains high for the rating, but
Fitch assessment of asset quality also considers the bank's
adequate NPL reserve coverage post-merger (around 56% adjusting
for IFRS9 provisions as from 1 January 2018), Spain's supportive
operating environment and management track record in working out
problem assets.

The merger has strengthened Bankia's company profile and
consolidated its position as Spain's fourth-largest bank. Fitch
believe the increased markets shares and the broader national
footprint will translate into better pricing power and critical
mass in growing and more profitable business segments, ultimately
benefiting profitability.

Nonetheless, the bank's business model and profitability are
constrained by still subdued net loan growth, a large exposure to
low-yielding retail mortgages and a sizeable portfolio of less-
liquid and low-yield SAREB bonds. Fitch expect profitability to
remain challenged by the low interest rate environment and
investment costs related to technology and risk management.
However, Fitch expect it to remain stable or moderately improve
from an improving loan mix, BMN-related cost synergies, growing
fee-based business and low loan impairment charges.

Capitalisation has been maintained with satisfactory buffers
above minimum requirements despite a 250bp impact on Bankia's
fully loaded Common Equity Tier 1 (CET1) ratio from the BMN
acquisition. The latter was partly compensated by good internal
capital generation. As a result, the fully loaded CET 1 ratio
declined to a still sound 12.7% at end-2017 (from 13.5% at end-
2016). Capital exposure to unreserved problem assets also
deteriorated but remains commensurate with its investment grade
rating (around 80% of fully loaded CET 1 at end-2017). Fitch
expectation is that this ratio will gradually improve from a
decline in problem assets.

Bankia's funding and liquidity profile has not materially changed
following the merger with BMN, benefiting from BMN's good deposit
base that fully funds the loan book. Together with loan shrinkage
at Bankia, this resulted in a slightly improved combined loan-to-
deposit ratio of 107% at end-2017. Customer deposits remain the
group's main funding source, representing about 64% of total
funding. The rest is largely secured in the form of covered
bonds, ECB's TLTRO or repos, which are used to fund a large stock
of legacy debt securities. Liquidity reserves are adequate for
scheduled debt repayments.

BFA
BFA is wholly owned by Spain's Fund for Orderly Bank
Restructuring (FROB), and it retained a 61% controlling stake in
Bankia at end-2017 after the merger with BMN.

BFA's IDRs and senior debt ratings are based on its VR, which is
in turn driven by Bankia's VR as the latter is one of BFA's
principal assets, representing about 67% of BFA's unconsolidated
balance-sheet at end-2016. The other large item on BFA's balance
sheet is SAREB bond holdings. BFA's VR is notched down once from
Bankia's to reflect Fitch's belief that BFA's strategy is to
gradually divest its ownership by December 2019. BFA's VR also
reflects low double leverage of below 90% at end-2016 and
manageable indebtedness given the institution's stock of
unencumbered assets.

As part of the group's restructuring process, BFA surrendered its
banking license in early 2015, but remains the group's
consolidating entity and is supervised by the banking authorities
on a consolidated basis given its stake in Bankia.

SUPPORT RATING AND SUPPORT RATING FLOOR

Bankia's and BFS's Support Rating (SR) of '5' and Support Rating
Floor (SRF) of 'No Floor' reflect Fitch's belief that senior
creditors of the bank can no longer rely on receiving full
extraordinary support from the sovereign in the event that the
bank becomes non-viable.

SUBORDINATED DEBT

Bankia's Lower Tier 2 subordinated debt is rated one notch below
its VR to reflect the notes' greater expected loss severity than
senior unsecured debt.

RATING SENSITIVITIES
IDRS, VR AND SENIOR DEBT

Bankia
Bankia's ratings could be upgraded over the next 24 months if the
bank makes good progress in reducing its stock of problem assets,
resulting in a reduction of its capital's vulnerability to
unreserved problem assets. This would have to be accompanied by
maintaining sound capital ratios and improving core underlying
profitability. Upside potential will also depend on Bankia
successfully integrating BMN and achieving cost synergies.

Conversely, although not expected by Fitch, failure to manage
execution risks from the BMN integration, an increased risk
appetite, for example, by growing disproportionately in riskier
lending segments, a lack of a credible reduction of problem
assets or a material weakening of profitability, would be rating
negative.

BFA

The parent holding company's IDR, VR and senior debt ratings
remain sensitive to the same factors affecting the operating
bank's VR. Its ratings would also suffer from an ownership
dilution that results in a loss of control over its bank or
changes in the regulatory supervision approach of the group.
Downside could also arise from double leverage.

SR AND SRF (ALL BANKS)

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

SUBORDINATED DEBT

The ratings of the Lower Tier 2 subordinated debt instruments are
primarily sensitive to a change in the bank' VR.

The rating actions are:

Bankia:
Long-Term IDR affirmed at 'BBB-'; Outlook revised to Positive
from Stable
Short-Term IDR affirmed at 'F3'
Viability Rating: affirmed at 'bbb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Long-term senior unsecured debt and debt programme: affirmed at
'BBB-'
Senior non-preferred debt long-term rating: affirmed at 'BBB-'
Short-term senior unsecured debt programme and commercial paper:
affirmed at 'F3'
Subordinated debt: affirmed at 'BB+'

BFA:
Long-Term IDR affirmed at 'BB+'; Outlook revised to Positive from
Stable
Short-Term IDR affirmed at 'B'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'


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


POLYGON AB: Fitch Assigns First-Time 'B(EXP)' Long-Term IDR
------------------------------------------------------------
Fitch Ratings has assigned a Long-Term Issuer Default Rating of
'B(EXP)' to the Swedish property damage restoration operator,
Polygon AB. At the same time, Fitch assigned an expected
instrument rating of 'B+(EXP)'/'RR3'/58% to the group's proposed
EUR210 million senior secured notes. The Outlook on the IDR is
Positive.

Polygon's 'B(EXP)' rating reflects a niche specialist business
profile that benefits from its leading market position in a non-
cyclical business. Pro forma for the notes issue, the financial
profile with 5.0x funds from operations (FFO)-adjusted gross
leverage, is commensurate with the rating but is constrained by
the company's limited size and low EBITDA margins compared with
Fitch-rated peers.

The Positive Outlook reflects Fitch's expectations that under its
experienced management the company will generate revenue and
margin growth via the benefits of scale from organic operations
and the integration of bolt-on acquisitions. Fitch expects
leverage to decline over the next two years, with FFO-adjusted
gross leverage falling below the upward rating sensitivity
guidance of 4.5x by 2020. Fitch expects EBITDA growth to be
supported by small acquisitions which can be accommodated within
the new capital structure, without incurring additional debt.

KEY RATING DRIVERS

Leading Industry Player: Polygon holds a dominant market share in
the European property damage restoration (PDR) market, which is
estimated by the company at around EUR5.2 billion per year. It
shares its market leadership with only one key US-focused global
competitor. Polygon's rating is constrained by its relatively
small operating size and its limited free cash-flow generation
after acquisitions. This is in spite of it being among the very
few companies providing integrated, professional services in the
PDR market to large property insurance underwriters and brokers.

Unpredictable yet Recurring Business: Demand for PDR services has
proven resilient. In 2017, around 95% of the jobs performed by
Polygon were caused by unpredictable yet regular events, such as
water leaks and fires not related to unusual and extreme weather
conditions. The growing number of major weather events and their
magnitude has the potential to further stimulate the need for
such services in the future.

Highly Fragmented Market: The company operates in a market that
is still mainly composed of small operators. Polygon has acquired
several mid- to small size players in the past few years,
boosting its M&A activity in 2017 when it completed six
acquisitions which will add sales of around EUR65 million. The
one significant exception -- in terms of targeted size -- was the
acquisition of its German competitor Vatro, which at the time of
the acquisition in 2011, was the leading company in its home
market, generating revenues in excess of EUR150 million.

Fitch views the potential for consolidation in the market as
high, with Polygon among the consolidators. Small acquisitions
can be accommodated within the current rating level, considering
the potential to extract synergies by building scale and
improving local access. Integration risks are mitigated by the
careful selection of targets and their relatively small size.

Solid Customer Base: Its consolidated relationships with
insurance companies under long-term framework agreements (FWAs)
provide some barriers to entry and a competitive advantage for
its sub-contractor network. The increased sophistication required
by customers favours organised players which can offer multiple
services and fast delivery. To this extent, Fitch views the FWAs
with customers as a credit-positive. Although not binding, they
offer a good platform to secure future jobs and attract sub-
contract partners. The customer retention rate is high, averaging
around 99% in the past four years.

'B' Financial Profile: Polygon's financial profile and free cash-
flow margins are consistent with the 'B' credit metrics, pro
forma for the issue of the notes. Debt service metrics and
liquidity from cash on balance sheet following the proposed note
issue and access to a revolving credit facility are strong for
the rating. Fitch forecast funds from operations (FFO)-adjusted
leverage will decline over the rating horizon, from around 5.0x
at end-2018E, to 4.5x in the following 24 months, in the absence
of large debt-funded M&A transactions. Free cash-flow margins are
expected to rise toward the mid-single digits by 2020.

DERIVATION SUMMARY

Polygon AB is the market leader in the European PDR market.
Similar to other Fitch publicly rated mid-sized companies active
in niche markets such as L'Isolante K-Flex S.p.A. (B+/Stable) and
Praesidiad (B/Stable), Polygon has a strong business profile.
Despite their relative small scale, these companies have a wide
geographical reach and have strong reputations among their
diversified client bases. These characteristics, paired with
Polygon's framework agreements with leading property insurance
providers and leading market positions in Germany, the UK and the
Nordics, provide some barriers to entry and enhance operating
leverage. Polygon's profitability is lower than these two peers',
but margins are aligned to those of the PDR industry, with the
potential for improvement as size and scale increase. Its pro
forma leverage profile following the placement of the notes and
its current free cash-flow generation are consistent with a 'B'
rating.

KEY ASSUMPTIONS

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

- high single-digit top-line growth, supported by organic growth
   and small-mid size acquisitions;
- margin improvement towards 10% driven by operating leverage
   and cost control measures;
- no cash return to shareholders over the next four years;
- no large, transformational M&A.

KEY RECOVERY RATING ASSUMPTIONS

- The recovery analysis assumes that Polygon would continue as a
   going concern in bankruptcy and that the company would be
   reorganised rather than liquidated.
- Polygon's post-reorganisation, going-concern EBITDA reflects
   Fitch's view of sustainable EBITDA, discounted by 25% from pro
   forma 2017 adjusted EBITDA of EUR48 million.
- An EV multiple of 5.0x is used to calculate a going-concern
   enterprise value in a distressed scenario, and reflects the
   group's leading market position, good brand, yet relatively
   small size with the potential for growth to consolidate its
   position.
- Fitch assume a 10% administrative claim on the going-concern
   enterprise value.
- The waterfall by instrument ranking against the adjusted
   enterprise value results in a 58% recovery for Polygon's
   senior secured notes, corresponding to 'RR3' in Fitch's
   recovery scale and a one-notch uplift for the instrument
   rating on the notes to 'B+'.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Operating leverage manifested by improving scale and EBITDA
   margins trending towards 10%
- Consistent free cash-flow generation with FCF margins in mid-
   single digits
- FFO adjusted leverage below 4.5x on a sustained basis

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Stabilisation of the Outlook, if the positive sensitivities
   are not met within 18-24 months
- Lack of overall top-line expansion and pressure on margins
- Neutral to negative free cash-flow generation
- FFO adjusted leverage above 6.0x on a sustained basis
- FFO interest coverage below 1.5x

LIQUIDITY

Adequate Liquidity: Fitch views Polygon's liquidity position as
satisfactory following the notes issue which will extend the debt
maturity to March 2023. At closing, Polygon will have access to
cash of around EUR40 million - post repayment of the existing
EUR180 million notes and transaction fees - and to an undrawn
revolving credit facility for EUR40 million.

FULL LIST OF RATING ACTIONS

Polygon AB
- Issuer Default Rating (IDR): 'B(EXP)' with Positive Outlook;
- Proposed EUR425 million senior secured notes: 'B+'/'RR3'/58%
   (EXP)


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


YILDIZ HOLDING: In Talks to Restructure Debt with Ten Banks
-----------------------------------------------------------
Kerim Karakaya, Asli Kandemir and Ercan Ersoy at Bloomberg News
report that Yildiz Holding AS, the global sweets company owned by
Turkey's richest man, said it's in talks with banks to
consolidate loans in its home country and to refinance the debt
to keep the company's growth path intact.

Yildiz Holding met with lenders following preliminary 2017
earnings and 2018 projections, it said in an emailed statement
after Bloomberg reported it was seeking to restructure debt with
10 banks.  The firm said the lenders, led by Yapi & Kredi Bankasi
AS, a unit of Turkey's Koc Holding AS and Italy's UniCredit SpA,
offered to consolidate Yildiz's separate loans and refinance them
through a new syndicated loan, Bloomberg relates.

The loans it's seeking to restructure include debt it took on for
the US$3.1 billion purchase of the U.K.'s United Biscuits
Holdings Plc in 2014, Bloomberg relays, citing people familiar
with the negotiations, who asked not to be named because the
talks are private.

Yildiz, owned by Murat Ulker, is one of Turkey's largest
companies.


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


ASPEN INSURANCE: Moody's Affirms Ba1 Preference Stock Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the A2 insurance financial
strength (IFS) ratings of Aspen Insurance UK Limited and Aspen
Bermuda Limited, and the Baa2 senior unsecured debt rating and
Ba1(hyb) preferred stock ratings issued by Aspen Insurance
Holdings Limited ("Aspen"). The outlook has been changed to
negative from stable.

A complete list of ratings affected by this rating action is
available at the end of this press release.

RATINGS RATIONALE

CHANGE OF OUTLOOK TO NEGATIVE

The change in outlook to negative reflects deterioration in
Aspen's financial strength, including a sharp decline in
shareholder's equity as a result of underwriting losses in the
second half of 2017, pressure on financial flexibility as
evidenced by rising financial leverage and weakening earnings
coverage, and declining profitability driven by margin erosion
and challenges with underwriting. In addition, Aspen's capital
base is now meaningfully smaller than the majority of its mid-
tier reinsurance peers, a factor that could place pressure on its
franchise and increase its reliance on retrocession to maintain
underwriting capacity and economic capital levels within its
target range. Ongoing underperformance of Aspen's primary
insurance business creates uncertainty about the group's ability
to significantly improve underwriting profitability of that
business in the near term, and alleviate some of the pressure on
Aspen's financial profile, including its capital position.

Aspen had suffered heavy losses from natural catastrophes during
the third quarter of 2017, with pre-tax catastrophe losses of
$360 million primarily due to hurricanes Harvey, Irma and Maria
and the Mexican earthquakes. As a result, Aspen reported an
underwriting loss of $335 million for the third quarter. In
addition, Aspen has stated that it expects to record an
underwriting loss of approximately $245 million in the fourth
quarter of 2017, reflecting approximately $135 million in pre-tax
loss related to the wildfires in California, and the remainder
due to increased frequency of mid-sized and attritional losses
primarily in Aspen's primary insurance segment. These include
property and fire-related losses in the U.K. and U.S. and, to a
lesser extent, cyber losses.

As a result of these losses in the second half of last year,
Moody's expects the group's shareholder's equity at year-end 2017
to decline sharply relative to the previous year, resulting in
higher operating leverage, particularly on a gross basis. More
specifically, Moody's expects Aspen's gross underwriting leverage
to deteriorate to a level meaningfully above the level of 2.7x
reported in prior years. The group's adjusted shareholders'
equity as a percentage of net written premiums, which has already
declined over the past five years given the group's share buy-
back and progressive dividend policy, will decline further at
year-end 2017.

Following the losses in second half of last year, Moody's does
not expect Aspen's economic solvency position to have
deteriorated significantly due to risk mitigating actions
recently implemented by management to reduce the group's solvency
capital requirement. However Moody's believe the group has
limited remaining capital flexibility at its current capital
level, for example in meaningfully reducing its solvency
requirement if another stress situation would occur.

While Moody's expects Aspen to benefit from stronger pricing for
(re)insurance during 2018, particularly in loss-affected regions,
including Florida, the Caribbean and California, the presence of
alternative reinsurance capital could cause price rises to be
more muted than was the case after previous large loss events.
Equally the US tax reform and the Base Erosion Anti-Abuse (BEAT)
tax, in particular, may place pressure on Aspen's profitability
over time. In fact Aspen transfers a significant portion of its
US business to Bermuda through quota-share reinsurance, which
will be subject to the BEAT tax if Aspen leaves the quota share
in place, or be taxed in the US if Aspen reduces the amount of
business transferred to Bermuda.

Moody's expects the group's adjusted financial leverage, which at
YE2016 was relatively high at 24.7% (excluding external debt
issued by Silverton Re, the group's sidecar), to increase above
25% at YE2017 as a result of erosion of shareholders' equity.
Earnings coverage remains a weakness for Aspen, relative to
peers, with 2017 being the third consecutive year of declining
earnings coverage. Aspen's earnings coverage for the five-years
from 2016-2012 averaged 4.9x and Moody's expect the average to
decrease to below 4x as of YE2017, as a result of underwriting
losses during the year.

More positively, while Aspen is facing significant headwinds
related to its underwriting performance and difficult market
conditions, Moody's believes that Aspen's expertise, deep
relationships with chosen clients, and continued focus on
innovation, including capabilities to leverage third party
capital, positions the group to defend its market position. In
addition, Aspen has well-recognised underwriting expertise in a
number of specialty insurance lines, and has been viewed as a
valuable reinsurance partner by ceding companies.

WHAT COULD CHANCE THE RATINGS UP/DOWN

Given the negative outlook, there is limited upward pressure on
Aspen's rating at present, however Moody's stated that the
following factors would lead it to stabilise the outlook for
Aspen: (i) increased capitalisation, or a clear path to
increasing equity capital such that gross underwriting leverage
returns to the historic range of 2.5x to 2.7x, and gross natural
catastrophe exposure relative to equity returns to a more
moderate level; (ii) improved performance of Aspen's primary
insurance book relative to peers and historical expectations
(sub-100 combined ratio).

Conversely, the following factors could lead to a downgrade: (i)
further erosion of shareholders' equity due to underwriting
losses or return of capital to shareholders; (ii)
underperformance of the primary insurance book as demonstrated by
a combined ratio above 100% through the first-half of 2018 and
going forward; (iii) indications of weakening in market position
at key renewal periods during 2018 including weaker renewal
pricing than peers or significantly diminished volumes; (iv)
financial leverage remaining above 25% (excluding Silverton Re
debt) and earnings coverage below 4x on a four-year average
basis; and (v) indications of the group favouring shareholders
over policyholders and creditors, including a lack of commitment
to rebuilding the capital base.

While rating outlooks are typically resolved within 12-18 months,
Moody's noted that the risks for Aspen are weighted towards the
downside, and that any indication of further downward pressure
through the first-half of 2018 would likely result in negative
action sooner than 12 months. Conversely, a longer time period
will be applied to any stabilisation of the rating, to allow more
time to assess the sustainability of improvements to Aspen's
operating performance or financial profile.

LIST OF RATING ACTIONS

Affirmations:

Issuer: Aspen Insurance Holdings Limited

-- Senior Unsecured (Foreign), Affirmed Baa2

-- Pref. Stock Non-cumulative (Foreign), Affirmed Ba1 (hyb)

-- Preference Stock (Foreign), Affirmed Ba1 (hyb)

Issuer: Aspen Insurance UK Limited

-- Insurance Financial Strength, Affirmed A2

Issuer: Aspen Bermuda Limited

-- Insurance Financial Strength, Affirmed A2

Outlook Actions:

-- Outlooks changed to negative from stable

PRINCIPAL METHODOLOGY

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


CARILLION PLC: Accused by Suppliers of Using Delaying Tactics
-------------------------------------------------------------
Rhiannon Curry at The Telegraph reports that small businesses
have claimed Carillion used delaying tactics and withheld money
as security on work in order to defer payments to suppliers and
bolster its own balance sheet.

According to The Telegraph, the failed contractor has been
accused of taking up to 120 days to pay subcontractors despite
being signed up to the Government's prompt payment code that is
meant to ensure suppliers are not left waiting for payment.

Emma Mercer, Carillion's most recent finance director told MPs at
a parliamentary select committee last week that in reality the
average payment time for suppliers was 43 days last year, and
said those who were waiting as long as 120 were "outliers",
accounting for less than 5% of contracts, The Telegraph relates.
She said less than 10% were waiting more than 60 days, The
Telegraph notes.

But subcontractors have said Carillion found excuses not to pay,
The Telegraph relays.  Chris Perry, a director of facilities
management firm Perrymac, said he was often left waiting up to
120 days for payment as Carillion used "delaying tactics" such as
finding fault with invoices and "minor discrepancies" with the
work, according to The Telegraph.

Rudi Klein, CEO of the Specialist Engineering Contractors' Group,
called Carillion a "commercial bully" over its treatment of
supply chains, The Telegraph states.

Headquartered in Wolverhampton, United Kingdom, Carillion plc --
http://www.carillionplc.com/-- is an integrated support services
company.  The Company operates through four business segments:
Support services, Public Private Partnership projects, Middle
East construction services and Construction services (excluding
the Middle East).


CHANNEL ISLANDS: Creditors Meeting Scheduled for February 21
------------------------------------------------------------
J.R. Toynton and A.J. Roberts, the Joint Liquidators of The
Channel Islands Stock Exchange LBG (in Guernsey Compulsory
Winding Up), disclosed that on February 21, 2018 at 2:30 p.m. in
The Royal Court House, St. Peter Port, Guernsey, GY1 2PB there
will take place a creditors meeting, convened pursuant to section
417 of the Companies (Guernsey) Law, 2008 by Jurat Stephen Jones,
who has been appointed Commissioner; to examine and verify the
Company's financial statements, creditors' claims and
preferences, and to receive the Joint Liquidators' final report.
The report has been dispatched to all Creditors and Members of
the Company.  If any Creditor has not received a copy please
contact the Liquidators.  It is also proposed that a dividend
will be declared and a date set for the distribution of the
Company's assets.

The Joint Liquidators can be reached at:

         Grant Thornton Limited
         Lefebvre House
         Lefebvre Street
         St. Peter Port
         Guernsey, GY1 3TF


INTERSERVE PLC: Says Talks with Lenders on Rescue Plan Ongoing
--------------------------------------------------------------
Hannah Boland at The Telegraph reports that Interserve has hit
back at reports that it presented a rescue plan to banks on
Feb. 8, claiming it has been in ongoing talks with lenders since
the start of the year and presented them with proposals weeks
ago.

The outsourcer, whose shares have been weighed down by rumors the
Government is monitoring its finances, said it was in
"constructive and ongoing discussions" with banks over its three-
year business plan, The Telegraph relates.

Sources close to the company said the talks have been taking
place on a weekly basis and were progressing well, with an
outcome expected within the next two months, The Telegraph
relays.  The Government is not thought to be attending these
meetings, The Telegraph states.

Shares in Interserve have fallen by more than a third in the past
month, after reports emerged that a specialist Cabinet Office
team had been set up by the Government amid fears over the
outsourcer's financial health, The Telegraph recounts.

According to The Telegraph, the Cabinet Office issued a statement
at the time saying: "We monitor the financial health of all of
our strategic suppliers, including Interserve.  We are in regular
discussions with all these companies regarding their financial
position.  We do not believe that any of our strategic suppliers
are in a comparable position to Carillion."

Interserve's problems, meanwhile, centered around its energy-
from-waste contract in Glasgow, on which it was forced to make a
GBP195 million provision amid mounting costs, The Telegraph
notes.

The group, which employs 80,000 people worldwide, managed to
secure GBP180 million short-term funding in December, with those
facilities set to expire on March 30, The Telegraph discloses.

Interserve plc is a support services and construction company.


IWH UK: S&P Assigns 'B' LT Corp Credit Rating, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term corporate credit
rating to the newly formed U.K.-based women's health care company
IWH UK Finco Ltd. (Theramex). The outlook is negative.

S&P said, "At the same time, we assigned our 'B' issue rating and
'3' recovery rating to the EUR370 million senior secured term
loan B due 2025 and EUR55 million revolving credit facility (RCF)
due 2024, indicating our expectations of meaningful recovery
(50%-70%; rounded estimate 50%)."

The ratings are in line with the preliminary ratings S&P assigned
on Nov. 15, 2017.

On Feb. 1, 2018, funds advised by CVC Capital Partners completed
the acquisition from Teva Pharmaceutical Industries Ltd. of
select assets dedicated to women's health for a cash value of
$703 million. To finance the transaction, the company
successfully raised a EUR55 million RCF and EUR370 million term
loan B, in addition to approximately $342 million of equity.

Theramex markets a portfolio of branded women's health
medications covering contraception, fertility, menopause, and
osteoporosis. The company markets its products both through its
own sales force and through third-party distributors across 50
countries in Europe, the Middle East, and Africa, Asia-Pacific,
and Latin America. For the 12 months to Sept. 30, 2017, Theramex
reported revenues of $274 million and adjusted EBITDA of $86
million.

S&P views the woman's health market as fragmented, with no
significant new medication development breakthrough over the past
couple of years. The market has relatively high barriers to entry
in the form of longstanding prescriber relationships and
significant patient loyalty to the brand. This is because certain
products are paid or co-paid out of pocket, mainly the
contraceptive and in vitro fertilization (IVF) treatments where
switching usually only occurs if patients are not satisfied with
the current product.

Apart from the osteoporosis portfolio, where S&P has seen
significant price erosion because of generic competition, this
pharma subsector is less exposed to reimbursement pressure and
regulatory changes. This results in a relatively resilient
portfolio with positive volume growth offset by some price
reductions, leading to overall growth in the mid-single-digit
range.

A significant portion of Theramex's revenues are derived from
self-pay, limiting the impact on Theramex specifically.

However, these defensive characteristics also represent a
challenge in terms of generating future growth as Theramex will
need to invest in marketing and supporting its products, and S&P
believes that the performance of its sales force, which is moving
from Teva, will be crucial for the delivery of the planned
strategy.

S&P said, "We view positively the company's well-diversified
portfolio both geographically and product wise, supported by
nearly half of revenues being generated from out-of-pocket
products. The company has leading positions in oral contraception
and osteoporosis treatment in European and emerging markets,
which are less price competitive than, for example, the U.S.

"The biggest risk to the base case, in our view, stems from the
osteoporosis franchise with a leading product Actonel, which has
been declining over the years because of generic competition
following loss of its patent seven years ago, although the
decline appears to have largely stabilized. Furthermore its
gastro resistant version (Actonel GR), should offset the erosion
of the overall Actonel franchise."

The main growth drivers of group revenues will be the newly
launched biosimilar fertility product Ovaleap and oral
contraceptive Seasonique.

Fertility treatment is one of the fastest growing segments in
women's health, driven by delayed planned pregnancy, scientific
and technological advances, increased availability of treatment,
and higher awareness levels, especially in emerging markets.
Ovaleap is a biosimilar injectable delivered via a multi-dose
pen. Ovaleap expanded strongly in Germany in its first year of
sales, 2016, supported by the positive growth dynamics in demand
for IVF services. Despite being sold at a discount price to the
standard treatment, Gonal F, Ovaleap's penetration could be
limited by physicians' reluctance to switch to new products.

The global contraceptives market includes hormonal and non-
hormonal drugs and devices. It has experienced growth in the past
five years of about 2.6%, driven by emerging markets, offset by
increased pressure from generics. In Theramex's focus countries
(France, Spain, Italy, and Australia), the value of the
contraception market has recently seen a decline, driven by
historical safety concerns regarding certain newer generations of
contraception pills and changes to reimbursement systems,
although that decline has recently slowed. In Spain,
reimbursement was restricted to the older generation pills,
leaving some of the most popular drugs without coverage.
Seasonique is expected to account for the majority of future
growth of Theramex's oral contraceptive portfolio benefiting from
offering a convenience of period spacing. Leeloo and Zoely
continue to be the main contraception products for Theramex.
Leeloo is mainly sold in France and Zoely in Italy. In France,
Leeloo is reimbursed, while Seasonique and Zoely being fully
self-paid.

The menopause market is likely to expand by the mid-single-
digits, driven by favorable demographic trends and increased
treatment penetration. Theramex's hormone replacement therapy
Colpotrophine is mainly sold in France, Brazil, and Spain.

S&P said, "Our assessment also reflects Theramex's lack of track
record of operating as a stand-alone company as it is a carve-out
of a portfolio of drugs focusing on women's health, mainly
contraception, menopause, fertility, and osteoporosis treatments
from generics producer Teva. We also take into account the
execution risk due to the company relying on Teva as the main
supplier of its products and the need to set up supporting
infrastructure for the newly formed company, although these risks
are, to a certain extent, mitigated by extensive transitional
service agreements with Teva that limit the possibility of
operational costs escalating over the next couple of years. We
understand that the company plans to operate as a stand-alone
entity as soon as operationally possible. We also view positively
the experienced management team put in place, since it is
familiar both with the acquired portfolio and supply chain and
has a track record with executing similar types of transactions.

"Theramex is owned by private equity firm CVC Capital Partners.
We project that Theramex will be able to maintain debt to EBITDA
at 5.0x-5.5x over the next two years, supported by an EBITDA
interest coverage ratio of about 5x over this period and free
operating cash flow (FOCF) of at least $15 million in 2018 after
a onetime working capital outflow of about $46 million to cover
inventory build-up. As the operations normalize, we estimate FOCF
to be above $50 million from 2019. Our adjusted debt figure for
Theramex includes $435 million of financial debt, but excludes
about $340 million of shareholder loans, which we view as equity-
like.

"The combination of a weak business risk profile and highly
leveraged financial risk profile leads to an anchor of either 'b'
or 'b-'. Assuming the smooth integration, we project that
Theramex will be able to generate positive FOCF, with robust debt
service ratios, and we therefore choose the higher anchor of 'b'.

"The negative outlook reflects our view that, given the size and
the nature of the carve-out, the new owner could fail to create
supporting infrastructure and deliver its sales growth plan,
accruing higher-than-expected costs and leading to a reduced cash
cushion to support the future growth of its portfolio.

"We could consider lowering the ratings if Theramex's operating
performance deteriorates, such that debt to EBITDA is at the
upper end of the 6x-7x range, and if FOCF generation is close to
zero or negative. The most likely cause of such deterioration
would be EBITDA of close to $60 million-$70 million as a result
of price competition, lower volume growth, or higher-than-
expected operational charges.

"We would revise the outlook to stable if Theramex smoothly
executes the carve-out and continues to generate solid revenue
growth despite some pricing pressure, benefiting from the premium
positioning of the products. Theramex expects that it will be
able to achieve revenues of about $285 million-$290 million by
year-end 2019 and profitability of 32%-33%, which in turn should
enable Theramex to generate positive FOCF and lead to gradual
deleveraging, with debt to EBITDA remaining at about 5x."

An outlook revision to stable would also assume that Theramex's
solid position in the fragmented women's health market will
enable it to sustain positive underlying revenue growth around
4%-6% in its health care division.


JAMIE OLIVER: 12 Restaurants Face Closure After CVA Okayed
----------------------------------------------------------
Sebastian Murphy-Bates at MailOnline reports that Jamie Oliver is
to close 12 of his restaurants, putting more than 200 jobs at
risk, after a restructuring plan devised by the celebrity chef
was pushed through by creditors.

The closures are part of a Company Voluntary Arrangement, which
will allow Italian chain Jamie's to secure rent reductions on the
remaining estate and exit unprofitable stores, MailOnline notes.

According to MailOnline, staff are currently going through a
consultation period, although the company will attempt to place
some of those affected in other parts of Mr. Oliver's restaurant
empire.  There are currently 25 Jamie's in the UK and 28
overseas, MailOnline states.

Mr. Oliver closed six restaurants last year, blaming a
combination of rising Brexit cost pressures and tough trading,
MailOnline recounts.

His chain was stung by the collapse of the pound -- which ramped
up the cost of buying ingredients from Italy -- as well as staff
costs and lower footfall, MailOnline discloses.

On Feb. 9, 95% of creditors, including landlords, voted in favor
of the deal, MailOnline relays.


VIRIDIAN GROUP: Moody's Alters Outlook to Neg., Affirms B1 CFR
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on all of
Viridian Group's ratings to negative from positive. Concurrently,
the rating agency has affirmed (1) the B1 corporate family rating
(CFR) and B1-PD probability of default rating of the restricted
group of companies owned by Viridian Group Investments Limited
(collectively referred to as Viridian); (2) the B1 (LGD4) rating
on the Senior Secured Notes issued by Viridian Group FinanceCo
Plc and Viridian Power and Energy Holdings DAC (together the
Notes); and (3) the Ba1 (LGD1) rating of Viridian Group Limited's
GBP225 million backed super senior secured revolving credit
facility.

RATINGS RATIONALE

OUTLOOK CHANGED TO NEGATIVE FROM POSITIVE

The negative outlook for Viridian's ratings reflects Moody's
assessment that the group's business risk and financial profile
has deteriorated following (1) the results of the first
transitional auction for capacity in the new Integrated Single
Electricity Market (I-SEM); and (2) subsequent announcements
regarding the long-term future of Viridian's thermal generation
plants which have accentuated the impact of (1).

Given (1) the existing local system constraints in the Greater
Dublin area which are expected to remain over at least the next
few years; and (2) that the system operator in the Republic of
Ireland (EirGrid) currently calls on one or both of Viridian's
Huntstown plants the vast majority of days to ensure security of
supply (voltage / load flow control), Moody's expected that both
plants would be awarded a contract in the first auction for
capacity provided for 23 May 2018 -- 30 September 2019. However,
the minimum capacity threshold of 1300MW (de-rated) for the
Greater Dublin area was met without the Huntstown 2 plant despite
the clearing price (published in December 2017) being broadly in
line with Moody's expectations.

The extent of the reduction in thermal generational earnings for
FY2019 and FY2020, compared to Moody's estimates of c. GBP20
million per annum (c. 15% of consolidated group EBITDA for these
years) remains unclear as it is dependent upon whether Viridian
is successful in its mitigating steps and the associated terms
which it may be able to secure. Viridian (1) has a pending appeal
pertaining to modifications of generation and supply licenses
required to implement I-SEM, and filed a judicial review of I-SEM
market arrangements; and (2) is in discussions with EirGrid about
securing an additional ancillary service contract, a Transmission
Reserve Contract, to address the security of supply concerns
described above. On 26 January 2018, Viridian has said the
capacity market auction result does not adequately remunerate
both Huntstown plants and has placed staff on protective notice
of redundancy. Moody's expects further clarity on Viridian's
mitigating steps over the next few months.

As further clarity on obtained counter measure(s) become known,
Moody's will review the associated impact on the group's business
risk profile. Such considerations will include both the level and
cash flow visibility of the associated earnings, including the
outlook for future capacity auctions. The existing ratio guidance
(debt / EBITDA below 7.0x for the B1 CFR) factored in Moody's
expectation that (1) both Huntstown plants would secure capacity
market contracts; (2) the capacity payments would account for the
vast majority of thermal EBITDA given the rating's agency
expectation of continued low unconstrained utilisation levels;
and (3) the Huntstown plants were strategically important. The
strategic importance of the plants related both to facilitating
Irish energy policy objectives, in particular in providing
network stability in the Dublin area and the associated
remuneration for Viridian; and to the group, from a material
EBITDA contribution from a diversified earnings source that
complements its growing downstream supply base.

AFFIRMATION OF VIRIDIAN'S RATINGS

The affirmation of Viridian's ratings reflects the group's
earnings diversity across its businesses, including: thermal
generation; price-regulated supply in Northern Ireland;
unregulated energy supply across the island of Ireland; and a
portfolio of contracted wind farm output. At the same time, the
rating remains constrained by (1) a challenging operating
environment, primarily a continued low power price environment
which Moody's expects to persist until at least the end of this
decade; as well as (2) Viridian's high level of leverage, with
debt/EBITDA for the consolidated group of 6.7x at 31 March 2017.

WHAT COULD CHANGE THE RATING UP/DOWN

A rating upgrade is considered unlikely in the short term given
(1) the deterioration in the group's business risk profile; and
(2) that debt / EBITDA is likely to remain at or above 6.0x for
the next two years.

The outlook could be stabilised in the event that Viridian is
successful in its mitigating steps such that there is a only a
modest deterioration in the group's business and/or financial
risk profile, e.g. as a result of a transmission capacity reserve
contract.

The ratings could be downgraded if the outcome of mitigating
steps, if any, is insufficient to offset pressures on financial
and business risk profile. Guidance for the rating category
(debt / EBITDA below 7.0x for the B1 CFR) may also change
depending on the evolution of the business risk profile of the
company following (1) further clarity on mitigating steps; and
(2) the outlook for future capacity auctions.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.

Viridian Group Investments Limited and its subsidiaries
(together, Viridian) are an integrated power utility based in
Belfast and operating across the island of Ireland. Viridian
generated revenue of GBP1,318 million in the full year ending
March 2017.


WILLIAMS INDUSTRIAL: Enters Administration, 145 Jobs Affected
-------------------------------------------------------------
Julian O'Neill at BBC News reports that Invest NI has said it is
"very regrettable" that Williams Industrial Services, a
Newtownabbey engineering business, has collapsed with the loss of
145 jobs.

WIS went into administration after cash problems caused by a
contractual dispute involving a GBP23 million project in Donegal,
BBC relates.

Construction of the anaerobic digestion facility is being part-
funded with an Invest NI loan of GBP9.3 million, BBC discloses.

According to BBC, Invest NI is in talks about how the project
will now be completed.


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


* SCHMOLZ + BICKENBACH Takes Over Parts of Asco Industries
----------------------------------------------------------
SCHMOLZ + BICKENBACH, a world leader for Special Steel, on
Jan. 29 disclosed that the competent court selected its offer to
acquire the sites and facilities of French-based Asco Industries
as of February 1, 2018.  The industrial concept of the SCHMOLZ +
BICKENBACH Group includes a close integration of Asco Industries
into the Group and aims to sustainably improve capacity
utilization and market supply.

The takeover strengthens SCHMOLZ + BICKENBACH Group's business in
the quality and engineering steel segment and further strengthens
its position as one of the leading companies for high-quality
specialty long-steel products in Europe.  The acquisition follows
the strategy of actively participating in the consolidation of
the European specialty steel industry.  Between the locations and
facilities of Asco Industries and the plants of SCHMOLZ +
BICKENBACH Group, there are excellent possibilities for
integrating and supplementing the product range and also within
the production network.  The sustainable industrial concept will
lead to an improved utilization of the plants and thus to a more
efficient production strategy and cost advantages.

Asco Industries had around 1,400 employees at year-end 2017 and
generated sales of approximately EUR373 million in 2016.  The
French group has excellent products and a strong customer base.
SCHMOLZ + BICKENBACH had 8,900 employees and generated a turnover
of EUR2.3 billion in 2016.

The transaction includes the acquisition of the most important
locations of Asco Industries.  At these locations, the majority
of jobs are secured.  At the same time, new jobs will be created
as part of the acquisition at SCHMOLZ + BICKENBACH's French
Ugitech business unit (Ugine, Haute-Savoie).  At Asco Industries'
previous locations, production remains focused on the production
and processing of special steel for the oil & gas, automotive and
mechanical engineering markets, as well as the production of
ball-bearing steel.

Clemens Iller, CEO, said: "We are delighted to accept the
acquisition of Asco Industries, which is a great fit for us
because of its excellent know-how, high-quality products and
broad customer base.  We are confident that, together with Asco,
we will make our sustainable industrial concept a success and
become an even stronger partner for our customers."

Willkie Farr & Gallagher LLP represented Schmolz + Bickenbach in
its successful bid to take over parts of France-based Asco
Industries.  The Willkie team is led by partner Alexandra Bigot,
based in Paris.



                            *********

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 * * *