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

                           E U R O P E

            Friday, March 9, 2018, Vol. 19, No. 049


                            Headlines


B U L G A R I A

* BULGARIA: Insolvency Framework Needs Reform, EU Commission Says


D E N M A R K

LSF10 WOLVERINE: Moody's Assigns 1st Time B2 CFR, Outlook Stable


F R A N C E

TECHNICOLOR SA: Moody's Lowers CFR to B1, Outlook Negative


G E R M A N Y

HSH NORDBANK: Fitch Hikes Viability Rating to bb-, Onn RWP
RAFFINERIE HEIDE: S&P Assigns 'B' Long-Term ICR, Outlook Stable


G R E E C E

GREECE: Talks with Creditor Institutions "Constructive"


I T A L Y

PIETRA NERA: Fitch Assigns B Rating to EUR41.1MM Class E Notes
UNIPOLSAI ASSICURAZIONI: Fitch Rates EUR500MM Sub. Notes 'BB'


L U X E M B O U R G

IDEAL STANDARD: Fitch Affirms 'CC/C' Issuer Default Ratings


N E T H E R L A N D S

DUTCH E-MAC: Fitch Corrects February 27 Rating Release
STORM BV 2017-II: Fitch Corrects February 13 Rating Release


N O R W A Y

AKER BP: Moody's Hikes CFR to Ba1 on Growing Production


R U S S I A

RUSNANO: S&P Raises Issuer Credit Rating to 'BB', Outlook Stable


S P A I N

PYMES BANESTO 2: S&P Lowers Class C Notes Ratings to D(sf)


U N I T E D   K I N G D O M

FERROGLOBE PLC: Moody's Assigns B1 CFR, Outlook Stable
GVC HOLDINGS: Moody's Assigns Ba2 CFR, Outlook Stable
LSF10 WOLVERINE: S&P Assigns Prelim 'B' ICR, Outlook Stable
NATIONWIDE BUILDING: Fitch Affirms BB+ on Add'l Tier 1 Instruments
NESCU: Savers' Cash Protected Under FSCS


X X X X X X X X

* BOOK REVIEW: AS WE FORGIVE OUR DEBTORS


                            *********



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


* BULGARIA: Insolvency Framework Needs Reform, EU Commission Says
-----------------------------------------------------------------
Mario Tanev at SeeNews reports that the European Commission said
on March 7 Bulgaria will need to continue its efforts towards
reforming the country's insolvency framework.

"Despite new legislation on business restructuring, some elements
of a functioning framework are still missing," SeeNews quotes the
European Commission as saying in the country-specific
recommendations for Bulgaria, part of the European Semester Winter
Package.

"In particular, Bulgaria lacks rules for granting a second chance
to consumers and entrepreneurs in a reasonable timeframe following
a bankruptcy, and an effectiveness analysis of existing and new
procedures."

In addition, the Commission outlined several other key challenges
for Bulgaria, such as vulnerabilities within the financial sector,
high private debt, high levels of poverty and income inequality
and underdeveloped active labor market policies, SeeNews relates.

According to SeeNews, state-owned companies are also underlined as
a source of economic and fiscal risks, as their corporate
governance structures are rarely subject to professional
management.



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D E N M A R K
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LSF10 WOLVERINE: Moody's Assigns 1st Time B2 CFR, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating (CFR) and a probability of default rating (PDR) of
B2-PD to LSF10 Wolverine Investments S.C.A, a holding company of
Stark Group A/S (Stark Group), a Denmark-based distributor of
building materials. Concurrently, Moody's has assigned B2 ratings
to the proposed EUR515 million senior secured fixed and floating
rate notes maturing in 2024. The outlook on all ratings is stable.

Proceeds from the notes will be used to part-fund the acquisition
of Stark Group from Ferguson Plc by Lone Star Funds.

RATINGS RATIONALE

Stark Group's B2 CFR reflects the company's (1) operations in a
highly fragmented and competitive market, dependent on the overall
health of the cyclical construction sector; (2) low Moody's-
adjusted operating margin of 2.8% in fiscal year 2017, ended July
31, 2017; (3) track record of EBITDA decline, although showing
some improvement with the onset of new management in 2016; (4)
history of sensitivity to Nordic construction market activity,
however, limited by exposure to the renovation and maintenance
(RMI) market; and (5) moderate initial Moody's-adjusted
debt/EBITDA of 4.8x, reducing to around 4.3x over the next 12-18
months.

However, the B2 CFR is supported by the company's (1) leading
position in the building materials distribution market in the
Nordics, with a company reported market share of 11% in the
region; (2) pan-Nordic footprint, with strategically located
branches and proximity to the largest growing urban areas in the
region; (3) flexible cost base, supported by its large own real
estate portfolio of 195 properties and (4) operating plan underway
to reverse historic margin erosion while increasing market shares.

LIQUIDITY

Stark Group's liquidity is expected to be adequate at closing of
the transaction. Internal liquidity consists of an expected pro
forma EUR35 million cash balance at closing of the transaction and
funds from operations of around EUR70 million in fiscal 2018.
Given the nature of the business the company operates in, the
company will need to draw on the committed revolving credit
facility (RCF) to cover large quarterly working capital swings.
Other cash uses mainly relate to annual capital expenditures,
which have hovered around 2.0%-2.5% of sales historically.

The terms of the new EUR100 million committed super senior RCF
require compliance with one springing covenant (super senior
leverage ratio not exceeding 1.6x), which needs to be tested when
the facility is drawn by more than 35% and which Moody's
understands to be set with ample headroom.

STRUCTURAL CONSIDERATIONS

In Moody's loss given default (LGD) assessment the proposed EUR515
million senior secured fixed and floating rate notes maturing in
2024, rank as contractually subordinated obligations behind the
proposed EUR100 million super senior secured RCF, also maturing in
2024. Both instruments will be guaranteed by the group's parent
LSF10 Wolverine Bidco A.p.S and certain subsidiaries, which
together account for at least 80% of consolidated EBITDA and gross
assets and are secured by pledges over shares in group companies
and intercompany loans.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation of a solid Nordic
construction market, positive like-for-like revenue growth and
improvements in operating margin resulting in a slow reduction of
Moody's adjusted leverage over the next 12-18 months, The stable
outlook also assumes no material debt-funded acquisitions or
shareholder distributions.

FACTORS THAT COULD LEAD TO AN UPGRADE

* Debt/EBITDA, as adjusted by Moody's, were to decrease and
sustained below 4.0x, and

* Moody's-adjusted operating margin increases towards 5.0%

FACTORS THAT COULD LEAD TO A DOWNGRADE

* Moody's-adjusted Debt/EBITDA increases towards 5.0x;

* Moody's-adjusted operating margin deteriorates; or

* Free cash flow decreases towards zero.

LIST OF ASSIGNED RATINGS

Issuer: LSF10 Wolverine Investments S.C.A.

Assignments:

-- LT Corporate Family Rating, Assigned B2

-- Probability of Default Rating, Assigned B2-PD

-- BACKED Senior Secured Regular Bond/Debenture, Assigned B2

Outlook Actions:

-- Outlook, Assigned Stable

PRINCIPAL METHODOLOGY

Headquartered in Soborg, Denmark, Stark Group is one of the
leading building materials distributors in the Nordics. With 179
branches situated in the region, the company reported revenues of
EUR2.2 billion and EBITDA of EUR106 million for LTM-October 2017.
Denmark is the company's largest market and accounted for around
41% of sales and 40% of EBITDA in fiscal 2017. About 60% of
revenues and 75% of gross profit are derived from the RMI market.
The company operates under the Stark brand in Denmark and Finland,
Beijer Byggmaterial in Sweden and Neumann in Norway. In November
2017 the company was acquired by Lone Star Funds from UK based
Ferguson Plc, one of the world's largest heating and plumbing
distributor to the professional market.



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F R A N C E
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TECHNICOLOR SA: Moody's Lowers CFR to B1, Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded to B1 from Ba3 the
corporate family rating (CFR) and to B1-PD from Ba3-PD the
probability of default rating (PDR) of French media, communication
and entertainment services provider Technicolor S.A.
("Technicolor" or "group"). Concurrently Moody's downgraded to B1
from Ba3 the ratings on the group's senior secured term loans
maturing 2023. The outlook on all ratings is negative.

RATINGS RATIONALE

The downgrade to B1 follows Technicolor's announcement of weaker
than expected results for the full year 2017 and Moody's view of
the group to be unable to restore its credit metrics to levels in
line with a Ba3 rating over the next two to three years. In
particular in its Connected Home segment the group suffered a
substantial loss mainly due to the sustained surge in memory chip
prices, which negatively affected EBITDA by EUR80 million in 2017
and which it does not expect to recover in the next 12 months.
Moreover, due to an unusually sluggish US box office summer, lower
visual effects (VFX) activity in advertising and delays in film
VFX towards the end of 2017 profits in the Entertainment Services
segment were roughly flat. Overall there was a substantial EBITDA
contraction on a group basis to EUR291 million in 2017 from EUR359
million in the prior year (as adjusted by Technicolor and restated
for the proposed Patent Licensing disposal).

The rating action also considers the group's decision to dispose
its profitable Patent Licensing business for a total transaction
value of around USD475 million and USD150 million upfront
consideration, as announced on 1 March. This will markedly impact
profitability and result in weaker free cash flow generation than
Moody's had anticipated when affirming the Ba3 ratings in July
last year, which assumed a solid earnings recovery during 2018.
Presenting the suspended Patent Licensing business as discontinued
operations in its 2017 financial statements, Technicolor's
Moody's-adjusted EBITA margin narrowed to about 1.8% in 2017 from
6.7% in the prior year (or around 2.9% restated for the Patent
Licensing disposal), which Moody's regards as weak for the
assigned B1 rating. Although the negative impact from higher
memory prices should soften over the next two years, passing on
higher input costs appears difficult given strong bargaining power
of larger customers and competition in the customer premise
equipment business. Moody's therefore anticipates Technicolor's
earnings to increase only gradually from 2019 onwards, when
implemented mitigation actions and efficiency improvements will
start to bear fruit, while 2018 earnings will likely be roughly
stable due to a another challenging year given persistent margin
pressure from higher input costs. The group also announced that it
will refocus its customer portfolio in the Connected Home segment
and exit non-profitable contracts, from which it expects lower
revenues of some EUR250 million this year.

Even assuming all upfront proceeds (around USD150 million) from
the Patent Licensing disposal will be used for debt reduction as
well as additional voluntary debt repayments made from available
liquidity and positive free cash flows, Technicolor's leverage
will remain stretched. Leverage in Moody's base case declines to
just below 6x Moody's-adjusted debt/EBITDA this year (from 6.8x in
2017), chiefly driven by planned debt repayments, and towards 5x
by the end of 2019. While this is an elevated metric for the B1
rating, the negative outlook further incorporates the uncertainty
of solid profit expansion after 2018, as targeted by management.
More positively though, Moody's acknowledges the group's
consistent ability to achieve positive free cash flows, even after
the Patent Licensing disposal, and to adhere to a conservative
financial policy, as illustrated by planned debt reductions and
the decision to refrain from dividend payments in 2018. Moody's
also recognizes Technicolor's sound liquidity, which remains a
supporting factor for the assigned B1 rating.

LIQUIDITY

Moody's regards Technicolor's liquidity as good, considering a
EUR319 million cash position as of December 31, 2017 and full
availability under committed credit lines, totaling around EUR390
million. Moody's further projects the group's annual funds from
operations to reach EUR180 million over the next 18 months, which,
after total capital expenditures of around EUR150 million, results
in modestly positive free cash flows, assuming no material working
capital needs and no dividend payments.

RATING OUTLOOK

The negative outlook reflects Technicolor's weakening credit
metrics following the Patent Licensing disposal and uncertainty
around the ability to return to organic topline growth and solid
earnings improvements beyond 2018, considering the currently
challenging environment, especially in the Connected Home
business. The negative outlook indicates the risk of a downgrade,
should leverage not improve towards 5x debt/EBITDA over the next
12-18 months and free cash flows not remain in positive territory.

WHAT COULD CHANGE THE RATING UP/DOWN

Downward pressure on the ratings would evolve, if (1) Technicolor
was unable to reduce its Moody's-adjusted debt/EBITDA to below 5x,
(2) Moody's-adjusted EBITA/interest expense remained persistently
below 1.5x, and (3) free cash flow (FCF) turned towards breakeven.

Upward pressure on the ratings would build, if (1) leverage
reduced sustainably below 4x Moody's-adjusted debt/EBITDA, (2)
Moody's-adjusted EBITA/interest expense improved towards 2.5x, and
(3) free cash flow generation strengthened, translating into high-
single-digit Moody's-adjusted FCF/debt ratios.

Technicolor S.A. (Technicolor), headquartered in Issy-les-
Moulineaux, France, is a leading provider of solutions and
services for the Media & Entertainment industries, deploying and
monetizing next-generation video and audio technologies and
experiences. The group operates in two business segments:
Entertainment Services and Connected Home. Technicolor generated
revenues of around EUR4.2 billion and EBITDA (company-adjusted) of
EUR291 million in 2017.

PRINCIPAL METHODOLOGY

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



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G E R M A N Y
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HSH NORDBANK: Fitch Hikes Viability Rating to bb-, Onn RWP
---------------------------------------------------------
Fitch Ratings has placed HSH Nordbank's (HSH) 'BBB-' Long-Term
Issuer Default Rating (IDR), and 'F3' Short-Term IDR on Rating
Watch Negative and upgraded the bank's Viability Rating (VR) to
'bb-' from 'b' and placed it on Rating Watch Positive.

The rating action follows the announcement by HSH Nordbank's
owners, the state of Schleswig Holstein and the City of Hamburg
that they together with the Savings Bank Association of Schleswig-
Holstein have signed an agreement with a consortium consisting of
Cerberus Capital Management, L.P; J.C. Flower & Co., Golden Tree
Asset Management LP, BAWAG Group and Centaurus Capital LP. to sell
their entire stake in HSH to the consortium.

The transaction is subject to regulatory and parliamentary
approval and to receiving a positive viability assessment from the
European Commission (EC). Fitch expect that HSH's IDR following
the sale will be driven by the bank's VR and no longer by
institutional support. The upgrade of the VR reflects progress
made by HSH in improving its risk profile during 2017 and that the
planned sale will allow the bank to continue operating as a
commercial bank.

The RWP on the VR is based on Fitch expectation that on closing of
the sale the VR could be upgraded further if the bank's future
strategy under new ownership becomes clearer. The agreement
reached with the new owners includes plans to transfer a
significant amount of bad assets from HSH's balance sheet, which
could also affect the VR positively.

Fitch expects to resolve the rating watches on the IDRs and VR on
closing of the transaction, which the bank expects in 2Q18 at the
earliest. If the sale is delayed, Fitch could maintain the rating
watches beyond the typical six-month horizon.

KEY RATING DRIVERS

IDRS, SENIOR DEBT AND SUPPORT RATING

The bank's IDRs, senior debt rating and Support Rating (SR) are
driven by support from HSH's current owners comprising the federal
states of Schleswig-Holstein (AAA/Stable) and Hamburg
(AAA/Stable), the regional savings banks and ultimately the
Sparkassen-Finanzgruppe (SFG, A+/Stable), including the savings
banks and Landesbanken-shared institutional protection fund.

HSH's Long-Term IDR is five notches below SFG's Long-Term IDR,
because Fitch believes that the bank's weaknesses and the
conditions set by the EC regarding the final approval of the
bank's guarantee in May 2016 result in a lower likelihood of
support than at other Landesbanken, which are rated two notches
below SFG's Long-Term IDR.

The RWN on HSH's IDRs and on the SR reflects Fitch expectation
that following the sale to the consortium the IDRs will likely be
downgraded to the level of HSH's VR at the time of the closing of
the transaction.

In Fitch's view, institutional support from the new owners after a
sale, while possible, cannot be relied upon, primarily because of
the lack of a controlling shareholder and the difficulty to assess
adequately the individual investors' capacity to provide
extraordinary support.

DERIVATIVE COUNTERPARTY RATING (DCR) AND DEPOSIT RATING

HSH's DCR and Deposit Ratings are aligned with the bank's Long-
and Short-Term IDRs. In Fitch's opinion, junior debt buffers do
not afford any obvious incremental probability of default benefit
over and above the support benefit already factored into their
support-driven IDRs. The RWN reflects Fitch's view that a
downgrade of these ratings is likely if the IDR is downgraded.

VR
HSH's VR reflects the reduction of legacy bad assets and the
bank's ability to maintain sound capitalisation and liquidity in
2017. The planned sale means that a wind-down of HSH, which would
have been triggered if the bank could not be sold, can be avoided.
The RWP reflects Fitch expectation that the VR would be upgraded
to reflect a clearer business model and strategy and improved
asset quality if the transfer of the bad loans from the bank
proceeds before the sale closes.

HSH's gross non-performing exposures were reduced slightly to
11.7% of gross exposures at end-3Q17 but remain a negative driver
of the bank's VR. The legacy assets in the non-core unit (EUR14
billion exposure at default at end-3Q17), consisting mainly of
non-strategic and poorly performing shipping, real estate and
other loans, remain a significant 2.8x of the bank's Fitch Core
Capital (FCC). However, the planned disposal of legacy assets, if
successfully implemented, will significantly improve HSH's asset
quality.

HSH's profitability will likely remain weak in the short term as a
result of lower interest- earning assets, additional restructuring
costs and further credit impairments. The removal of bad assets is
likely to lower credit impairment charges, notwithstanding a large
one-off charge booked at end-2017, which will render the bank
loss-making. A further improvement in HSH's profitability is
contingent on the implementation of strategic and business model
decisions after the bank's privatisation.

A decline in risk-weighted assets resulted in an improved phased-
in CET 1 ratio of 16.3% at end-3Q17 (pro-forma excluding any
regulatory guarantee impact). Including the impact of the
transaction the pro-forma CET1 ratio is set to decline to
approximately 15%, which is still in line with higher-rated peers'
and above the bank's current regulatory requirements. In the
short-term capitalisation remains vulnerable to negative credit
migration or collateral revaluation mainly in the remaining
shipping portfolio, but Fitch expect this to lessen when the bad
assets' transfer is completed. Sustainability of its
capitalisation is contingent on the new owners' plans on growth
and risk appetite.

HSH's funding will change materially after privatisation as the
bank leaves the institutional support scheme of Landesbanken and
savings banks. Fitch believe that this transition could make it
more difficult for the bank to attract funding because HSH relies
significantly on wholesale funding, which makes it vulnerable to
investor sentiment. These risks could be mitigated by an extended
transitional period during which HSH will remain a member of the
public sector banks' institutional protection scheme beyond the
statutory transition period of two years before it becomes a
member of the voluntary deposit protection scheme of Germany's
private sector banks.

In addition, the bank plans to raise increasing retail funding
outside the savings banks sector, but the share of such funding is
still small and the stability of its retail deposit base untested.
HSH has reached its funding targets for 2017, driven by strong
covered bond issuance and by unsecured and asset-based funding.
Its liquidity metrics are well above regulatory requirements.

STATE-GUARANTEED/GRANDFATHERED SECURITIES

The rating of HSH's state-guaranteed/grandfathered senior debt,
subordinated debt and market-linked securities reflect the credit
strength of the guarantor - the federal state of Schleswig
Holstein and the City of Hamburg - and Fitch view that they will
honour their guarantees after the sale of HSH.

RATING SENSITIVITIES

IDRS, SENIOR DEBT AND SUPPORT RATING

HSH's IDRs, senior debt rating and SR are primarily sensitive to
the completion of the bank's sale. On completion, Fitch expect to
downgrade the IDR to the level of HSH's VR. The RWN on the
support-driven ratings reflects Fitch expectation that the bank's
VR will likely be below the current IDR at that time.

If the transaction is not completed, the bank will have to cease
new business activities and manage the assets with a view of
winding down. In this scenario, Fitch expect that the existing
owners will have financial and reputational incentives to ensure
that the wind-down is managed in a way that senior unsecured
creditors do not incur losses. In this case HSH is likely to
remain a member of the protection scheme of the Landesbanken,
which means that it could continue to receive support from its
owners in combination with SFG. This could result in the
affirmation of its IDR at 'BBB-' if Fitch conclude that imposing
losses on senior creditors during the run-down of assets is
prevented by the institutional protection fund and HSH's owners.

DCR AND DEPOSIT RATING

DCR and Deposit Ratings are sensitive to changes in HSH's IDRs.
These ratings will likely be downgraded if HSH's IDR is downgraded
but could be affirmed if the downgrade of the Long-Term IDR is
limited to one notch and if the amount of qualifying junior debt
and what Fitch consider to be non-preferred senior debt is
sufficient to notch these ratings above the Long-Term IDR.

VR
Fitch expect to upgrade HSH's VR after the successful
privatisation of the bank, which is subject to receiving the
necessary regulatory approvals, if the bank has demonstrated
further progress in strengthening its balance sheet at that time.
Maintaining strong capitalisation, healthy liquidity and adequate
funding costs would underpin a VR upgrade. Fitch currently expect
HSH's VR to remain constrained at or below 'bb+' until
profitability has improved sustainably, following the
privatisation and subject to the development of its business
model.

A disruption of the sale process or a sudden unexpected stress
that would significantly undermine investor confidence in the bank
and reduce the likelihood of a successful privatisation could
trigger a downgrade of its VR.

If the sale does not proceed and HSH is wound down, Fitch would
likely withdraw its VR, in line with Fitch approach for other
wind-down institutions.

STATE-GUARANTEED/GRANDFATHERED SECURITIES

The ratings of HSH's state-guaranteed/grandfathered senior debt,
subordinated debt and market-linked securities are sensitive to
changes in Fitch's view of the creditworthiness of the guarantors.

The rating actions are as follows:

Long-Term IDR: 'BBB-', placed on RWN

Short-Term IDR: 'F3', placed on RWN

Support Rating: '2', placed on RWN

Derivative Counterparty Rating: 'BBB-(dcr)', placed on RWN

Viability Rating: upgraded to 'bb-' from 'b', placed on RWP

Long-term senior debt, including programme ratings: 'BBB-',
   placed on RWN

Short-term senior debt: 'F3', placed on RWN

Long-term deposits: 'BBB-', placed on RWN

Short-term deposits: 'F3', placed on RWN

State-guaranteed/grandfathered senior and subordinated debt:
  affirmed at 'AAA'

State-guaranteed/grandfathered market-linked securities: affirmed
  at 'AAAemr'

Senior market-linked securities: 'BBB-emr', placed on RWN

Fitch is withdrawing the 'F3' rating of HSH's USD15 billion
issuance programme, which has become inactive and is no longer
considered by Fitch to be relevant to the agency's coverage.


RAFFINERIE HEIDE: S&P Assigns 'B' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Germany-based refinery Raffinerie Heide GmbH (Heide). The
outlook is stable.

At the same time, S&P assigned a 'B' issue rating to Heide's
senior secured debt. The recovery rating is '3', reflecting its
expectation of meaningful recovery (50%-70%; rounded estimate 55%)
in the event of default.

These ratings are in line with the preliminary ratings S&P
assigned on Nov. 21, 2017.

The 'B' rating on Heide reflects S&P's assessment of its
vulnerable business risk profile and highly leveraged financial
risk profile based on its capital structure.

S&P said, "Our assessment of Heide's business risk underscores
that it is a single-asset company in a highly cyclical industry.
We view Heide's refining capacity to be relatively small by global
standards, with total capacity of 92 thousand barrels per day
(kbpd). In our view, the high operating risk (such as explosions,
toxic emissions, or outages) associates with refineries represents
an elevated risk for Heide compared with companies with several
refineries or exposure to the fuel retailing business. We view
Heide's track record on safety and operational continuity as good,
though."

At the same time, Heide's technological capabilities, as measured
by the Nelson complexity index, rank ahead of most refineries in
Northwestern Europe (9.9 versus an average of 7.4). Greater
technological complexity often translates into higher
profitability, enabling refineries to deal with the highly
volatile cracking margins (the price differential between crude
oil and the refined products). Over the past five years, Heide's
refinery configuration allowed it to achieve an additional spread
of $3 per barrel (/bbl)-$4.5/bbl over its benchmark. That said, in
this period, the company saw a wide swing in its EBITDA: it was
negative at the bottom of the cycle in 2013, and S&P projects it
will have climbed to EUR115 million in 2017, given currently
favorable market conditions.  

Other supportive factors for the rating include Heide's strong
competitive position in northwestern Germany, explained by its
unique location on the northern side on the Elbe River, creating a
somewhat captive market for its products (75% of the products are
for domestic consumption). In addition, S&P understands the German
market is in a middle distillate deficit, a situation that works
in favor of Heide's output.   

Heide is fully owned by the industrial commodity group, Klesch
Group, which is owned by A. Gary Klesch. S&P said, "We understand
that Heide is the main asset in the Klesch portfolio. Other
important activities include an oil-trading arm, which handles the
crude supply for Heide. We view the Klesch Group's ownership as
having a neutral impact on the rating.  

"Our assessment of Heide's financial risk profile reflects
adjusted debt of about EUR375 million on a pro forma basis and
adjusted debt to EBITDA of 4.0x-5.0x in the coming two years, on
the back of relatively supportive refining industry conditions. In
addition, we expect the company will produce only limited free
operating cash flows (FOCF), with no material decrease in the
absolute debt level. In our view, the low visibility and
volatility of the cracking margins could weaken our credit metrics
and FOCF. We estimate that a change of $1/bbl in the cracking
margins could change EBITDA by EUR30 million (or about EUR10
million-EUR12 million after taking into account the company's
hedges in 2018), all other parameters being equal."  

Heide's current financial policy is relatively conservative, with
almost no debt on the balance sheet. Since the acquisition of the
refinery in 2010, the Klesch Group has distributed total dividends
of more than EUR350 million (including EUR200 million following
the notes issuance). In addition, the company tries to deal with
the volatile nature of the refining business by hedging cracking
margins, oil prices, and foreign exchange exposure, as well as by
entering into an intermediate inventory agreement (the company
doesn't own the crude oil and only a relative small portion of the
refined products).  

S&P said, "We consider European refining margins as currently
supportive, explained by high demand for diesel, changes in the
crude supply following the Organization of the Petroleum Exporting
Countries' cuts, and the impact of previous years' capacity
curtailments. In our view, though, the current situation may be
short-lived. We view the refining sector in Europe as mature and
suffering from structural decline, on the back of lower demand for
oil products, due to greater efficiency and a shift toward cleaner
energy sources.

"On a positive note, we understand that refineries may see an
increase in demand for gasoil following the change in maritime
regulation starting in 2020. Under our base case, we project
EBITDA of about EUR80 million in 2018 and in 2019, compared with
an estimated EUR115 million in 2017. Heide's performance in the
first three quarters of 2017 has been strong, supported by
utilization of over 95%, improved pricing, favorable margins, and
cost-saving initiatives.

"While we take a somewhat prudent view on the cracking margins,
assuming some decline in the coming 12-18 months, Heide may see
stronger EBITDA of about EUR20 million-EUR25 million if current
cracking margins stick for a longer period. That said, higher
EBITDA would not lead us to raise the rating unless it was
supported by a more defined financial policy and a track record.
We see Heide's capital structure as straightforward, comprising
mainly the EUR250 million new bond, as well as a EUR150 million
factoring line. As of end-2016, the company had drawn EUR107
million on this line, and we add it to our adjusted debt
calculation. We note that Heide has also an agreement with
Macquarie to finance its inventories, which do not sit on its
balance sheet. As per this agreement, Heide purchases crude and
products from, and is selling to, Macquarie as needed. We do not
treat it as debt, in line with other peers in the sector with such
agreements.

"The stable outlook on Heide reflects the currently favorable
market conditions, with elevated cracking margins, that we expect
will translate into a supportive EBITDA level in 2018, together
with positive FOCF.

"We view our expectation of adjusted debt to EBITDA of 4.0x-5.0x,
together with positive FOCF through 2018-2019, as commensurate
with the current rating. Under our base case, we project that the
company will present adjusted debt to EBITDA at the lower part of
the range. That said, we also see material upside if current
market conditions continue through 2018.

"Lastly, our rating takes into account the current ownership and
our assumption that the Klesch Group'screditworthiness will not
weaken materially.

"We would see pressure on the rating if cracking margins in 2018
were weaker than our forecast, or if the company experiences some
operational issues, leading to lower EBITDA and adjusted debt to
EBITDA higher than 5x. According to our calculations, a drop of
more than $0.5/bbl in our working assumption would lead to
adjusted debt to EBITDA of 5x.

"Alternatively, we may lower the rating if discretionary cash flow
(FFO minus capex and dividends) was negative following a step-up
in capex, acquisitions, or dividends.

"We see the potential for a higher rating as remote in the coming
12-18 months. A higher rating would require a stronger business
footprint, a longer financial policy track record (including
systematic hedging and dividend distributions), and adequate
liquidity. We would see adjusted debt to EBITDA of 2x or better
for a sustained period, together with positive FOCF, as supportive
of such a rating action."



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


GREECE: Talks with Creditor Institutions "Constructive"
-------------------------------------------------------
Tasos Kokkinidis at Greek Reporter reports that talks between the
Greek government and creditor institutions were "constructive" it
was claimed on March 1, coming at the end of the first phase of
the negotiations.

According to a senior finance ministry official earlier on
March 1, the talks were successful, adding that a timetable was
set during the meetings, Greek Reporter relates.

The official, as cited by Greek Reporter, said that the obstacles
and difficulties, most of which are of a technical nature, will be
discussed via mail.

The aim is to complete the fourth program review and have an
overall agreement (Greek development program, debt relief and
post-memorandum surveillance) at the Eurogroup on June 21, Greek
Reporter notes.



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


PIETRA NERA: Fitch Assigns B Rating to EUR41.1MM Class E Notes
--------------------------------------------------------------
Fitch Ratings has assigned Pietra Nera Uno S.R.L.'s notes final
ratings as follows:

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

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 a few markets
reported significant rental increases. 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 as follows:

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

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

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

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

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

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

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

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

  Increase in both factors by 25% class A/B/C/D/E: 'BB+ sf'/
  'BB sf'/ 'B sf'/'CCC sf'/'CCC sf'


UNIPOLSAI ASSICURAZIONI: Fitch Rates EUR500MM Sub. Notes 'BB'
-------------------------------------------------------------
Fitch Ratings has assigned UnipolSai Assicurazioni Spa's
(UnipolSai) issue of EUR500 million of subordinated notes a 'BB'
rating. The notes are rated two notches below UnipolSai's Long-
Term Issuer Default Rating (IDR) of 'BBB-', which has a Stable
Outlook, to reflect their subordination and loss-absorption
features, in line with Fitch's notching criteria.

The assignment of the final rating follows the receipt of
documents conforming to information already received. The final
rating is in line with the expected rating assigned on February
23, 2018.

KEY RATING DRIVERS

The subordinated notes have a 10-year maturity and carry a coupon
of 3.875%. The proceeds are being used to repay part of
outstanding amounts under certain subordinated loan agreements,
subject to the approval by the lead regulator and satisfaction of
all requisite conditions. The issue ranks subordinate to senior
creditors, pari passu with senior subordinated securities and
senior to any remaining deeply subordinated securities issued by
UnipolSai. The level of subordination is reflected in Fitch's
'below average' baseline recovery assumption for the issue.

The notes include a mandatory interest deferral feature, which
would be triggered if the company or the group is not able to meet
the applicable solvency capital requirement or the applicable
minimum capital requirement. Under the agency's criteria, Fitch
regards this feature as leading to 'moderate' non-performance
risk. As a result the rating is notched down two times from the
IDR, comprising one notch each for recovery prospects and for non-
performance risk.

The notes qualify as Tier 2 regulatory capital under Solvency II.
The notes therefore are treated as 100% capital in Fitch's Prism
Factor-Based Model, due to the application of the regulatory
override. However, given that it is a dated instrument, the notes
are treated as 100% debt in Fitch's financial leverage
calculation.

UnipolSai is the main insurance company and subsidiary of Unipol
Gruppo Spa (together, Unipol). Fitch expect the bond issue
increases Unipol's financial leverage ratio and decreases the
group's fixed charge coverage ratio. However, Fitch anticipates
that financial leverage and debt service capabilities remain
commensurate with Unipol's 'BBB-' Long-Term Issuer Default Rating.

RATING SENSITIVITIES

The bond's rating is subject to the same sensitivities that may
affect UnipolSai's Long-Term IDR.



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


IDEAL STANDARD: Fitch Affirms 'CC/C' Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed the bathroom ceramics and fittings
producer Ideal Standard International SA's (ISI) Long-Term Issuer
Default Rating (IDR) at 'CC' and Short-Term IDR at 'C'.  

The 'CC' rating reflects the unsustainable nature of ISI's capital
structure, and the company's excessive liquidity risk, due to
large upcoming maturities in May 2018.

KEY RATING DRIVERS

Unsustainable Capital Structure: The ratings of ISI reflect its
unsustainable leverage and excessive refinancing risks, despite an
improvement in funds from operations (FFO). Management have not
indicated whether they expect to be able to refinance their
upcoming senior secured debt maturities in May 2018 but Fitch
expect this to be difficult as FFO gross leverage remains above
10x.

Fitch's base case model shows that if ISI is successful in
refinancing the notes but transitions from payment-in-kind (PIK)
to cash interest-paying debt, free cash flow (FCF) is likely to
become negative, hampering a reduction in leverage and
constraining liquidity.

Trading as Expected: ISI's current trading in the year-to-date
3Q17 was in line with Fitch's expectations, despite adverse FX and
raw material effects. Fitch forecast modest revenue growth and
flat-to-improving margins in 2018, driven by recovering
construction activity in Germany, Italy and France, which together
comprise nearly half of ISI's revenues. The UK business, however,
is expected to remain challenged following a slowdown in
construction activity post-Brexit and a depreciation of the
sterling pound.

Above-average Recovery Prospects: Fitch expect above-average
recoveries for the AAA series noteholders in case of default.
Fitch estimates under its bespoke recovery analysis that the
going-concern approach will lead to higher recoveries for
creditors versus balance-sheet liquidation in financial distress.
This reflects ISI's improved operating cost structure post
restructuring.

Fitch uses a 35% discount to the most recent last 12-month EBITDA
to estimate ISI's post-distress EBITDA as a cash-flow proxy
required for the company to continue operating as a going concern.
Fitch apply a multiple of 5.0x to Fitch distress enterprise value
(EV)/EBITDA, which reflects ISI's earnings volatility from the
companys's exposure to construction cycles and capital-intensive
production, particularly in the ceramics business.

AAA Notes Capped at 'RR2': The rating of the AAA series notes is
capped at 'RR2' in accordance with Fitch's "Country-Specific
Treatment of Recovery Ratings" (February 2018). This is due to
ISI's exposure to MENA, eastern Europe, Italy and France, which
Fitch views less creditor-friendly and where security is less
enforceable than is commensurate with 'RR1'.

DERIVATION SUMMARY

ISI's rating of 'CC' is constrained by unsustainably high leverage
and excessive refinancing risks. ISI's brands and market positions
are sound. It ranks among the top three competitors in each
national market and counts Masco, Grohe and Roca among its direct
peers. Its broader product spectrum compared with peers benefits
ISI in markets, where customers prefer to have a single supplier.
ISI also completed a multi-year restructuring programme. This
improved the cost structure of its operations, which historically
lagged peers'.

KEY ASSUMPTIONS

Key Assumptions within Fitch Rating Case for the Issuer

- Modest revenue growth of 1%-2% driven by slow recovery in end-
   markets
- Flat-to-improving margins from improved capacity utilisation
   and lower production costs although at a slower pace due to
   raw material price inflation
- Refinancing in May 2018 is successful but company transitions
   from PIK to cash interest paying debt

KEY RECOVERY RATING ASSUMPTIONS

- Fitch assumes in its recovery analysis that ISI would continue
   as a going concern in bankruptcy, and that the company would
   be reorganised rather than liquidated

- ISI's post-reorganisation, going-concern EBITDA excludes 40%
   of MENA EBITDA from the LTM 3Q17 EBITDA, to which Fitch then
   applies a 35% discount

- An EV multiple of 5.0x is used to calculate a going-concern
   enterprise value in a distressed scenario which is in line
   with recent distressed multiples in the sector

- A 10% administrative claim on the going-concern enterprise
   value

- The waterfall by instrument ranking against the adjusted EV
   results in a 90% recovery for ISI's senior secured AAA notes,
   corresponding to 'RR2' in Fitch's recovery scale and a two-
   notch uplift for the instrument rating on the notes to 'CCC+'

- Zero recoveries for the other rated senior secured notes.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- Timely refinancing of its current senior debt maturities in
   May 2018

- Significant margin improvement with sustained positive FCF and
   material deleveraging leading to a manageable capital structure

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- Debt maturities failing to be refinanced by May 2018

- Imminent default from inability to service near-term interest
   or principal maturity or further debt restructuring measures

LIQUIDITY

Excessive Liquidity Risk: ISI has excessive liquidity risk, due to
the need to refinance its current senior debt if it is to avoid a
default in May 2018 when its existing senior debt matures.
Unadjusted cash amounted to EUR73.8 million at end-3Q17 and the
company's EUR25 million super senior revolving credit facility was
undrawn. This is sufficient to cover EUR30 million in intra-year
working capital swings.

FULL LIST OF RATING ACTIONS

Ideal Standard International SA

- Long-Term IDR: affirmed at 'CC';
- Short-Term IDR: affirmed at 'C';
- Super senior AAA notes: affirmed at 'CCC'/'RR2';
- Super senior AA notes: affirmed at 'C'/'RR6'
- Senior secured A notes: affirmed at 'C'/'RR6'
- Senior secured B notes: affirmed at 'C'/'RR6'



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


DUTCH E-MAC: Fitch Corrects February 27 Rating Release
------------------------------------------------------
Fitch Ratings has issued a correction to the ratings release on
Dutch E-MAC published on February 27, 2018, and includes details
of a variation from criteria used in the analysis.

The revised release is as follows:

Fitch Ratings has downgraded two tranches and affirmed 11 tranches
of three Dutch E-MAC RMBS transactions. The agency has resolved
the Rating Watch on all tranches and assigned Negative Outlooks to
the class A2 notes of 2008-I and the class C notes of 2008-IV. The
Outlooks on all other notes rated 'Bsf' and higher were set to
Stable.

The rating actions follow the publication of Fitch's new European
RMBS Rating Criteria.

KEY RATING DRIVERS

Application of New Rating Criteria

The application of the European RMBS Rating Criteria resulted in
the affirmation of 11 and downgrade of two tranches of these three
transactions. Fitch took into account the non-standard structural
features (see pro-rata structures below) as well as the scheduled
maturity of a number of assets after the legal final maturity date
of the notes. Where appropriate, ratings different to those
implied by Fitch's proprietary cash flow model were assigned.

The excess spread note in 2006-III has been affirmed at 'CCCsf'.
Principal redemption of this note ranks subordinate to the payment
of extension margins on the collateralised notes in the revenue
waterfall. Fitch's ratings do not address the payment of the
extension margins, and as such they are not modelled in its cash
flow model. As the extension margin amounts have been accruing and
remain unpaid, full principal redemption of the excess spread note
from interest receipts was considered unlikely.

The reserve funds in these transactions may increase following
asset performance deterioration. Funds collected would be released
once arrears drop again below the pre-defined three-month arrears
trigger, at which point the funds released will be used towards
the redemption of the excess spread notes. As the portfolios
continue to amortise, a small number of loans can lead to greater
volatility in arrears performance, leading to the possibility of
continuous replenishments and releases in the reserve funds, and
subsequent redemptions on the excess spread notes. Given this
variability, the credit risk of these notes is commensurate with
the 'CCCsf' rating definition, leading to the affirmation of the
excess spread notes.

Asset Maturity Risks
In the 2006-III transaction Fitch identified assets with maturity
dates exceeding those of the notes.

Note amortisation in this transaction is pro-rata given
satisfactory performance. Note amortisation will only switch to
sequential in case of: (i) drawings on the reserve fund; (ii)
drawings on the liquidity facility; (iii) uncleared balances on
the principal deficiency ledgers; or (iv) more than 1.5% of
delinquent loans are over two months. Therefore, in a benign
environment it is possible for this transaction to amortise pro-
rata until note maturity. This implies a loss to the structure
equal to the balance of the loans that mature after the notes.

Fitch notes that such loans have shown a history of prepayments
and are small as a proportion of the current pool. Additionally,
all such borrowers also have at least one loan-part that matures
prior to note maturity. Should the borrower decide to refinance
that loan-part they will have to refinance all their outstanding
loan parts.

Fitch also notes a number of loan parts maturing within the two
years up until the notes' legal final maturity. Given the
curtailed time to note maturity, if borrowers fail to refinance
these loans the recoveries from the sale of the underlying
properties may not feed into the transactions.

Given the elevated risk to default, Fitch is of the opinion that a
rating of 'BBsf' is appropriate for this transaction.

Pro-Rata Structures

As of the January 2018 payment date, only the 2006-III transaction
was amortising pro-rata. Should note amortisation in the 2008-I
and 2008-IV transactions, currently amortising sequentially,
revert to pro-rata, the credit enhancement build-up for the senior
notes will be reduced as per the amortisation mechanism in the
documentation. Both transactions will amortise pro-rata if the
reserve funds build up to their target (currently at 81% and 95%
of their targets respectively). This feature has been factored
into the rating analysis to the extent that the relevant pro-rata
triggers are captured by Fitch's modelling assumptions. For the
class A2 notes of 2008-I and the class C notes of 2008-IV, Fitch
has identified a reversion to pro-rata amortisation to be a
credit-negative feature. This view is reflected in the Negative
Outlook assigned to these notes.

Stabilising Performance

Late-stage arrears (borrowers who have been delinquent for over
three months) have stabilised over the last 12 months. As of
January 2018, late-stage arrears ranged from 0.6% (2008-IV) to
0.7% (2008-I), down from 0.8% (2006-III) and 1.2% (2008-I) 12
months prior. Similarly, the rate at which losses are building has
slowed down.

VARIATIONS FROM CRITERIA

E-MAC 2008-I
Upon downgrade of the liquidity facility provider below the
trigger ratings, Fitch expects the issuer to be able to make a
stand-by drawing within 14 calendar days. In accordance with the
documentation in these transactions the drawing can only be made
after 30 calendar days. The agency has not adjusted its analysis
for this inconsistency with its criteria. Fitch does not consider
the additional 16 days a material risk, given that the liquidity
facility provider is highly rated, and notes that other remedial
actions upon downgrade of the liquidity facility provider are in
line with its expectations.

RATING SENSITIVITIES

Should the assets maturing after note maturity of 2006-III prepay,
it would address the risk of the notes incurring losses at
maturity. This may lead to positive rating actions.

Adverse macroeconomic factors may affect asset performance. An
increase in foreclosures and losses beyond Fitch's stresses may
erode credit enhancement, leading to negative rating action.

Fitch has taken the following rating actions:

E-MAC Program B.V. Compartment NL 2006-III

Class A2 (ISIN XS0274609923) affirmed at 'BBsf'; off Rating Watch
Evolving (RWE); Outlook Stable
Class B (ISIN XS0274610855) affirmed at 'BBsf'; off RWE; Outlook
Stable
Class C (ISIN XS0274611317) affirmed at 'BBsf'; off RWE; Outlook
Stable
Class D (ISIN XS0274611747) affirmed at 'CCCsf'; off RWE; Recovery
Estimate (RE) of 90%
Class E (ISIN XS0275099322) affirmed at 'CCCsf'; off RWE; RE 0%

E-MAC Program III B.V. Compartment NL 2008-I

Class A2 (ISIN XS0344800957) affirmed at 'AAAsf'; off RWE; Outlook
Negative
Class B (ISIN XS0344801765) affirmed at 'A-sf'; off RWE; Outlook
Stable
Class C (ISIN XS0344801922) downgraded to 'BB-sf' from 'BBB+sf';
off RWE; Outlook Stable
Class D (ISIN XS0344802060) affirmed at 'CCCsf'; off RWE; RE 80%

E-MAC Program II B.V. Compartment NL 2008-IV

Class A (ISIN XS0355816264) affirmed at 'AAsf'; off RWE; Outlook
Stable
Class B (ISIN XS0355816421) affirmed at 'Asf'; off RWE; Outlook
Stable
Class C (ISIN XS0355816694) downgraded to 'BBB+sf' from 'Asf'; off
RWE; Outlook Negative
Class D (ISIN XS0355816934) affirmed at 'CCCsf'; off RWE; RE 80%


STORM BV 2017-II: Fitch Corrects February 13 Rating Release
-----------------------------------------------------------
Fitch Ratings has issued a correction to the ratings release on
Storm 2017-II B.V. published on February 13, 2018, which
incorrectly stated that the EMEA RMBS Rating Criteria was used in
the analysis, rather than the European RMBS Rating Criteria which
was used.

The revised release is as follows:

Fitch Ratings has upgraded three tranches of Storm 2017-II B.V.,
affirmed one tranche and removed all four from Rating Watch
Evolving (RWE). The Outlooks are Stable.  

The rating actions follow the application of the European RMBS
Rating Criteria.

The transaction comprises residential loans that were originated
by Obvion, a fully owned subsidiary of Cooperatieve Rabobank U.A.
(AA-/Stable/F1+).

KEY RATING DRIVERS

European RMBS Rating Criteria
The application of the European RMBS Rating Criteria has resulted
in a reduction to the expected losses for this portfolio, leading
to the upgrade of the class B to D notes.

Stable Pool Composition and Performance
The current pool characteristics have not changed significantly
since close in June 2017. The weighted average (WA) original loan-
to-value is currently at 86.2% (86.3% at close) and WA current LTV
is at 80.1% (80.6% at close).

1bp of loans are in arrears by more than three months.
Foreclosures as a proportion of the original portfolio balance are
low at 3bp, while losses stand at 1bp.

Revolving Transaction
The transaction structure includes a five-year revolving period,
to allow new assets to be added to the portfolio. In Fitch's view,
the replenishment criteria adequately mitigate any significant
risk of potential migration in the credit profile of the pool due
to future loan additions. In its analysis, Fitch considered a
stressed portfolio composition, based on replenishment criteria,
rather than the actual composition.

RATING SENSITIVITIES

Adverse macroeconomic factors may affect asset performance. An
increase in foreclosures and losses beyond Fitch's stresses may
erode credit enhancement, leading to negative rating action.

Fitch rates to legal final maturity. At the call option date in
May 2022, as per transaction documentation, the class B to D notes
can be called net of the principal deficiency ledger (PDL).
Material principal shortfalls in Fitch's cash flow analysis over
the life of the transaction may trigger rating action.

The rating actions are:

  Class A (ISIN: XS1628023134) affirmed at 'AAAsf'; off RWE;
  Outlook Stable

  Class B (ISIN: XS1628024702) upgraded to 'AAsf' from 'A+sf'; off
  RWE; Outlook Stable

  Class C (ISIN: XS1628024884) upgraded to 'Asf' from 'BBBsf'; off
  RWE; Outlook Stable

  Class D (ISIN: XS1628025188) upgraded to 'BB+sf' from 'Bsf'; off
  RWE; Outlook Stable



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


AKER BP: Moody's Hikes CFR to Ba1 on Growing Production
-------------------------------------------------------
Moody's Investors Service has upgraded the Corporate Family Rating
(CFR) of Aker BP ASA (Aker BP) to Ba1 from Ba2 and the Probability
of Default Rating (PDR) to Ba1-PD from Ba2-PD. Concurrently,
Moody's has also upgraded the rating on the $400 million senior
unsecured notes due 2022 to Ba2 from Ba3. The outlook on all
ratings remains stable.

RATINGS RATIONALE

The upgrade of the rating to Ba1 from Ba2 reflects the growing
production of Aker BP, both organically and inorganically,
supported by a stronger financial profile with gross adjusted
debt/EBITDA expected to be maintained below 2.0x in 2018-2020.
Inorganic growth is a result of the Hess Norge acquisition for
$2.0 billion, which was 25% funded by equity and the remaining
($1.5 billion) was funded temporarily by debt. The company is now
expected to receive $1.5 billion in tax losses as a cash refund
from the government in 2H 2018, which will be used to repay the
debt, resulting in gross debt/EBITDA to fall to around 1.0x in
2018 from 1.7x in 2017. The Ba1 rating reflects the company's
strong track record of acquiring the right assets while
maintaining a prudent financial policy. The production increased
from 118 kboepd in 2016 to 139 kboepd in 2017 with expectations of
further increase to 150-160 kboepd in 2018, as a result of the
acquisition. This also demonstrates strong shareholder support to
grow the business from Aker ASA (40% ownership) and BP p.l.c. (30%
ownership).

The Ba1 corporate family rating reflects Aker BP's (1) strong
financial profile with EBITDA margin expected to be maintained
above 70% and gross adjusted debt/EBITDA to remain below 2.0x in
2018-20 assuming an oil price of $50/bbl in 2018 and $55/bbl in
2019-20 (2) good liquidity profile with cash balance of $233
million and $2.67 billion of availability under its reserve based
lending (RBL) facility as of December 31, 2017 (3) strong presence
as a mid-sized E&P operator in the Norwegian Continental Shelf
(NCS) supported by a low cost profile with opex cost expected at
$12/bbl in 2018 and a stable operating environment in Norway (Aaa,
stable) (4) exposure to a supportive tax regime in NCS including
possible cash refunds of tax losses from the government if
petroleum activities cease (5) ownership structure with two strong
shareholders Aker ASA and BP p.l.c. (A1, positive) from whom
support could be derived in case of need and, (6) strong upside
growth potential after the start-up of Johan Sverdrup project, in
which Aker BP retains a 11.6% interest, currently expected in Q4
2019.

The rating remains constrained by the (1) lack of geographic
diversification of the company's production on the NCS (2) smaller
size of the production asset base, compared to other US peers,
with production expected to average at around 150 kboepd in 2018-
19 (3) mature and declining production of the Alvheim and Skarv
assets, mitigated by the new investments in these fields, as well
as expected ramp-up of Johan Sverdrup from 2020 (4) high capex
exposure in the coming years mainly concentrated on the 3 new PDOs
(Plan for Development & Operation) submitted in 2017, development
of increased stake in Valhall/Hod fields and Johan Sverdrup
project which could result in negative free cash flow (FCF)
generation in 2019 assuming an oil price of $55/bbl (5) moderate
execution risks on the Johan Sverdrup project, however, the
company benefits from a strong partner and operator, Statoil ASA
(Aa3, stable) which has a strong credit profile and the required
expertise and technology to execute such large projects.

Looking ahead, Moody's expects the company's financial profile to
improve further in 2018 from 2017, due to increased size from the
acquisition and assuming that the entire $1.5 billion tax loss
refund will be used to repay debt. While the financial profile
could deteriorate marginally in 2019 due to the expected decline
in production, it should remain still fairly strong compared to
similarly rated peers and should recover strongly, from 2020
onwards, assuming the Johan Sverdrup project starts producing on
time. The company generated positive FCF (after abandonment
expense) in 2017 of around $700 million. Moody's expects the
company to generate positive FCF (after abandonment expense and
tax refund) of around $900 million in 2018, which should turn
negative in 2019 to around $-450 million and return to positive
FCF in 2020 and beyond in the range of $250-400 million. Capex and
dividend payments are expected to be around $1.0-1.2 billion and
$450-550 million in 2018-19, respectively. Moody's believes these
dividend payments are material, however, expects that the company
would reduce the dividends, if the oil price deteriorates.
Adjusted gross debt/EBITDA ratio is expected to be maintained
below 2.0x in 2018-2020, assuming an oil price of $50/bbl in 2018
and $55/bbl in 2019-20. The company is expected to maintain the
unleveraged cash margin above $30/bbl in 2018-20 due to its
competitive cost position.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's view that Aker BP will
maintain its strong financial profile in the longer term, despite
some marginal deterioration in 2019 due to the declining
production and expectations that the company will receive in cash
the tax loss refund in 2H 2018. The outlook also reflects Moody's
expectations of maintaining a good liquidity profile and
conservative financial policy in case of any major acquisitions,
with no significant change in the stable operating environment.
The outlook assumes a timely delivery of the Johan Sverdrup
project.

WHAT COULD CHANGE THE RATING -- UP

The rating could be upgraded to Baa3 if Aker BP demonstrates a
strong growth production profile, consistently exceeding 250,000
boepd, after a timely delivery of Johan Sverdrup project and
adjusted RCF/Debt maintained above 40% on a sustained basis, while
retaining its competitive cost position. The rating upgrade would
also require the company to maintain a strong liquidity profile
and prudent financial policy.

WHAT COULD CHANGE THE RATING -- DOWN

The rating could be downgraded to Ba2 if the average production
falls below 150,000 boepd on a consistent basis and/or if there is
a deterioration in the financial profile of the company with
adjusted RCF/Debt below 30% on a sustained basis. The rating could
also be downgraded if there is a sustained negative FCF generation
or weaker liquidity profile.

STRUCTURAL CONSIDERATIONS

The Ba2 rating assigned on the $400 million senior unsecured notes
is one notch below the Ba1 CFR and it reflects the sizable secured
debt ($1.3 billion as of December 31, 2017) of the RBL ranking
ahead of the notes within the capital structure. The Ba2 rating
also reflects the expectation of a higher recovery rate for the
notes compared to similarly rated peers due to the favourable tax
regime that Aker BP benefits from in Norway. The tax losses are
refunded in cash by the government if petroleum activities are
discontinued on the NCS.

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

CORPORATE PROFILE

Aker BP ASA is a Norwegian oil and gas company primarily involved
in the exploration, development and production of petroleum
resources on the Norwegian Continental Shelf. Its production
assets are entirely located in Norway and the company operates
around 99% of its fields' portfolio. In 2017, Aker BP reported an
average production (on a working interest basis) of 138,800
barrels of oil equivalent per day, revenues of $2.6 billion and 2P
proved plus probable (2P) reserves of 913 million barrels of oil
equivalent. The company benefits from a 18 year reserve life (2P/
Total Annual Production). Aker BP is owned 40% by Aker ASA, 30% by
BP p.l.c. (A1, positive) and the remaining is free float.



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


RUSNANO: S&P Raises Issuer Credit Rating to 'BB', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings said that it has raised its long-term issuer
credit rating on Russian state-owned technology investment vehicle
RusNano to 'BB' from 'BB-'. The outlook is stable.

At the same time, S&P affirmed its 'B' short-term issuer credit
rating on the company.

S&P said, "Our upgrade of RusNano follows similar action on the
sovereign on Feb. 23, 2018. It also reflects that RusNano
continues to receive strong ongoing support from the Russian
government in the form of nonrecourse guarantees on all currently
issued debt."

S&P regards RusNano as a government-related entity for which it
sees a high likelihood of extraordinary government support, based
on its assessment of RusNano's:

-- Important role for the Russian government, which created
    RusNano to implement state policy for the development of the
    nano-technology industry. RusNano's mandate is to coinvest in
    high-tech projects and stimulate private investment in the
    industry. In S&P's view, the government continues to treat
    RusNano as one of its main tools to support the development
    of the high-tech industry and promote industrial
    modernization; and

-- Very strong link with the Russian government, its full owner.      
    S&P said, "Although RusNano was initially on Russia's
    privatization list, it was removed after 2012, and we
    understand its privatization is unlikely over the medium
    term. In 2015, the company was on the official list of
    strategically important companies for the government. We
    believe the strong presence of government officials on
    RusNano's board of directors will facilitate continued state
    support for the company if needed." The government has
    confirmed its commitment to continue guaranteeing RusNano's
    new borrowings in 2018. Overall, RUB13.4 billion (about US$220
    million) of guarantees was included in the state budget law in
    2018.

S&P said, "Our assessment of RusNano's stand-alone credit profile
(SACP) is unchanged at 'b'. The company invests directly in equity
and debt of projects, as well as in funds that are exposed to the
high-technology sector. Other related areas of responsibility are
developing investment infrastructure and promoting modern
technology, including knowledge transfer to Russia from abroad. We
believe that the nature of the business makes RusNano's financial
performance volatile and unpredictable, which weakens its overall
credit characteristics."

In 2017, RusNano exited eight investment projects, with associated
proceeds amounting to RUB23.2 billion in cash and RUB4.1 billion
in highly liquid Eurobonds. The corresponding internal rate of
return related to these projects was 7.4%. S&P said, "We view as
positive that the proceeds significantly exceeded the amount of
investments in new projects (about RUB9.1 billion). We also note
that, in 2017, for the first time since the company's inception,
the proceeds from project exits (35 projects) turned marginally
positive. The company expects to maintain a positive return and
exit the legacy portfolio by 2023."

S&P said, "We believe the company's mandate to invest in
innovative high-tech projects that are at an early stage exposes
it to significant credit and market risk. However, we understand
RusNano is not interested in substantially increasing its debt,
which we believe is a positive factor. At the end of 2016, the
company reclassified some of its long-term state financing with
government guarantees as equity. However, this financing does not
meet our definition of hybrid capital because the company will
continue to service these obligations as debt, in accordance with
the initial conditions of the respective loan agreements.
Therefore, we consider the company's leverage to be higher than is
reflected in its financial statements. Nevertheless, we believe
that government's willingness to provide guarantees on RusNano's
debt enhances the company's financial flexibility and offsets the
deterioration of its leverage metrics.  

"The stable outlook reflects our opinion that RusNano will
continue to benefit from the government's support and its SACP
will remain unchanged over the next 12-18 months. Notably, with
the company's investment profile now maturing, we expect further
investment exits to generate positive cash flow that supports debt
servicing, with the overall investment return turning positive by
2020.

"We could take a negative rating action if we observe continued
weak performance of RusNano's investment portfolio, worsening
funding and liquidity, or a significant increase in leverage,
which could lead us to revise our assessment of the company's SACP
to 'b-'. We could also lower our ratings on RusNano within the
next 12 months if we observed signs that the likelihood of timely
and sufficient extraordinary support from the government had
reduced.

"A positive rating action is a remote possibility, since it would
require pronounced improvement in the company's profitability and
capital, or a stronger likelihood of extraordinary support, which
we do not expect at this stage."



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


PYMES BANESTO 2: S&P Lowers Class C Notes Ratings to D(sf)
----------------------------------------------------------
S&P Global Ratings raised its credit rating on Fondo de
Titulizacion de Activos PYMES Banesto 2's class B notes. At the
same time, S&P has lowered its rating on the class C notes.

S&P has used data from the December 2017 investor report to
perform its credit and cash flow analysis and have applied its
European small and midsize enterprise (SME) collateralized loan
obligation (CLO) criteria and its current counterparty criteria.  

CREDIT ANALYSIS

PYMES Banesto 2 is a single-jurisdiction cash flow CLO transaction
securitizing a portfolio of SME loans that was originated by Banco
Santander S.A. in Spain. The transaction closed in November 2006.
We have applied our European SME CLO criteria to determine the
scenario default rate (SDR)--the minimum level of portfolio
defaults that we expect each tranche to be able to withstand at a
specific rating level using CDO Evaluator.

S&P said, "To determine the SDR, we adjusted the archetypical
European SME average 'b+' credit quality to reflect two factors
(country and originator, and portfolio selection adjustments). We
rank the originator in the moderate category. Taking into account
Spain's Banking Industry Country Risk Assessment score of '5' and
the originator's average annual observed default frequency, we
have applied a downward adjustment of one notch to the 'b+'
archetypical average credit quality. To address potential
differences in the creditworthiness of the securitized portfolio
compared with the originator's entire loan book, we further
adjusted the average credit quality by three notches. As a result
of these adjustments, our average credit quality assessment of the
portfolio was 'ccc', which we used to generate our 'AAA' SDRs.
After determining the average portfolio quality, where an
originator's internal SME scoring system is not used as a building
block in our rating analysis, we use the same average portfolio
quality for each performing asset in the portfolio for the purpose
of inclusion in CDO Evaluator.

S&P has calculated the 'B' SDR, based primarily on its analysis of
historical SME performance data and its projections of the
transaction's future performance. S&P has reviewed the issuer's
historical default data, and assessed market developments,
macroeconomic factors, changes in country risk, and the way these
factors are likely to affect the loan portfolio's
creditworthiness.

S&P interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with its European SME CLO criteria.

RECOVERY RATE ANALYSIS

S&P applied a weighted-average recovery rate at each liability
rating level by considering the asset type and its seniority, the
country recovery grouping, and the observed historical recoveries
in this transaction.

COUNTRY RISK

S&P's long-term rating on Spain is 'BBB+'. S&P's RAS criteria
require the tranche to have sufficient credit enhancement to pass
a minimum of a severe stress test to qualify to be rated above the
sovereign.

CASH FLOW ANALYSIS

S&P said, "We used the reported portfolio balance that we
considered to be performing, the principal cash balance, the
current weighted-average spread, and the weighted-average recovery
rates that we considered to be appropriate. We subjected the
capital structure to various cash flow stress scenarios,
incorporating different default patterns and timings and interest
rate curves, to determine the rating level, based on the available
credit enhancement for each class of notes under our European SME
CLO criteria.

"Under our RAS criteria, we can rate a securitization up to four
notches above our foreign currency rating on the sovereign if the
tranche can withstand severe stresses. The available credit
enhancement for the class B notes withstands severe stresses. We
have therefore raised to 'AA- (sf)' from 'A+ (sf)' our rating on
the class B notes.

"We have also lowered to 'D (sf)' from 'CCC- (sf)' our rating on
the class C notes. Our rating on this class of notes addresses the
timely payment of interest, and this transaction did not make the
full interest payment on the class C notes on the March 2017
payment date. Due to an error, we did not lower our rating on this
class of notes contemporaneously with the interest payment
shortfalls. Today's rating action corrects this error.

"As the transaction employs excess spread, we applied our
supplemental tests by running our cash flow modeling using the
forward interest rate curve, including the highest of the losses
from the largest obligor default test net of their respective
recoveries. We deem the test to have passed if cash flows show
that the tranche that is subject to the test receives timely
interest (or full interest, if the tranche is deferrable) and
ultimate principal payments."

RATINGS LIST

  PYMES Banesto 2, Fondo de Titulizacion de Activos
  EUR1 Billion Floating-Rate Notes

  Class                  Rating
                To                 From

  Rating Raised

  B             AA- (sf)           A+ (sf)
  Rating Lowered

  C             D (sf)             CCC- (sf)



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


FERROGLOBE PLC: Moody's Assigns B1 CFR, Outlook Stable
------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 corporate
family rating (CFR) and a B1-PD probability of default rating
(PDR) to Ferroglobe PLC, the company formed via through the merger
of Ferroatlantica SA ('Ferroatlantica') and Globe Specialty Metals
Inc. ('Globe') in December 2015. Concurrently, Moody's has
assigned a definitive B3 rating to the $350 million of guaranteed
senior unsecured notes due 2022 which were issued by Ferroglobe
and its US subsidiary Globe. The outlook on all ratings is stable.

The assigned ratings are in line with the provisional (P)B1 CFR
and (P)B3 rating of the 2022 notes which were first assigned in
February 2017 and were conditional upon (i) the unsecured notes
being issued for $350m, (ii) the senior secured revolving credit
facility ('RCF') of $200m being amended with a reset of its
financial covenants to enable comfortable headroom, and (iii) the
disposal of the Spanish hydroelectric assets being completed with
expected proceeds of over $200m being mainly used to repay debt.
While the two first conditions for assigning definitive ratings
were already satisfied in 2017, the planned disposal of the
hydroelectric assets did not take place and is no longer expected
because of opposition from local authorities in Spain.

"The decision to assign definitive ratings in line with the
provisional ones reflects Moody's view that Ferroglobe is on track
to achieve a meaningful deleveraging broadly in line with Moody's
original expectations, due to a better pricing environment leading
to a higher EBITDA. This compensated for the missed debt reduction
from the disposal proceeds. Further deleveraging expected in 2018
should more comfortably position Ferroglobe's credit metrics at a
level commensurate with its B1 CFR," says Gianmarco Migliavacca, a
VP-Senior Credit Officer at Moody's and lead analyst for
Ferroglobe.

RATINGS RATIONALE

The B1 CFR recognizes Ferroglobe's leading position in the global
niche silicon metal market, supported by a competitive advantage
in terms of (i) scale of its manufacturing base corresponding to
c.34% of global silicon metal capacity excluding China, (ii) high
degree of operational diversification with 28 facilities across
several countries and continents, including the two manganese
alloys plants recently acquired from Glencore International AG
(Glencore, Baa2 stable), (iii) balanced geographic presence
between Europe (49% of sales) and North America (38%) and (iv)
gradually improving average cost position, which however remains
in the middle percentile of the reference industry cost curve
according to CRU. Ferroglobe is also one of the largest suppliers
of ferroalloys for the steel industry, with a particularly strong
presence in Europe, which has been strengthened further after the
acquisition of two former Glencore plants. This deal doubles the
size of Ferroglobe's manganese alloys business, improves the
company's operational and product diversification and allows
economies of scale, considering that concurrently to the
acquisition Ferroglobe signed with Glencore two long term offtake
agreements for the procurement and marketing of manganese alloys.

The rating also takes into account some of the key weaknesses of
Ferroglobe's business profile, in particular: (i) high sensitivity
of the company's revenues and operating profits to the volatility
of its commodity products -- particularly silicon metal -- and raw
materials, with limited ability to pass-through input cost
increases to customers on a timely basis; (ii) high exposure to
the cyclicality of reference aluminium, steel and chemical end
user markets; (iii) relevant customer concentration, as the top 10
clients account for c.40% of sales, and some of these are also
captive producers of silicon metal; and (iv) high reliance on a
single commodity, silicon metal (c. 43% of 2017 sales), although
this should reduce to below 40% already in 2018 as the manganese
alloys business is doubling in size after the recent acquisition
from Glencore. Mitigating some of the weaknesses noted above are
the company's (i) flexible cost base with c. 70% of total
operating costs being variable; (ii) competitive sourcing of a key
input, electricity, via multi-year agreements in various
jurisdictions; (iii) backward integration into coal and quartz,
two important raw materials in the manufacturing process of
silicon metal; as well as (iv) technical capability to quickly
interrupt furnaces at limited cost, based on market conditions and
price of electricity, allowing to exploit interruptibility clauses
in electricity contracts signed in France and Spain where the
company runs several plants. Furthermore, annual and quarterly
contracts with some of the largest customers, mainly chemical and
steel multinational corporations, allow a good degree of
visibility over revenues several quarters ahead.

The rating reflects the meaningful improvement in operational and
financial performance in 2017 from very weak levels in 2016
associated to unfavourable market conditions. The silicon metal
industry was particularly weak due to exacerbating oversupply
issues and increased competitive pressure in the US and Europe
from low cost Brazilian and Chinese exporters respectively, which
lead to historical low silicon metal prices in H2 2016. In 2017
revenues and adjusted EBITDA increased by 10% and 120% yoy to
$1.7bn and $174m respectively, driven by price recovery across all
Ferroglobe's products as market conditions gradually improved and
unfair competition from cheaper imports was addressed in the US
with the introduction of preliminary anti-dumping duties in
October 2017. The increased EBITDA translated into a lower
adjusted gross leverage of 4.7x by end of 2017, from c. 10x at the
end of 2016, and supported FCF becoming slightly positive at $20m
vs -$10m in 2016, in spite of a modest capex increase.

The CFR is also underpinned by Moody's expectation that the
operational and financial profile of Ferroglobe will further
improve over the next 12 months, with an adjusted EBITDA margin of
c.12% from 10% in 2017 and an adjusted gross leverage trending
towards 3x, a level which would more solidly position Ferroglobe
in its rating category. The projected improved metrics are mainly
driven by a further EBITDA increase assuming that silicon metal
prices recover further from an average level of $2,270/t in 2017
to $2,600/t in 2018, which would be a mid-point level within the
2012-2015 historical price range of $2,400/t to $2,800/t.
Projected higher operational cash flow should also accommodate
higher capex in 2018 and the possible resumption of dividend
payments which were suspended in 2017. Liquidity should remain
adequate, based on a cash balance of $184m at the end of 2017 and
a largely undrawn committed RCF of $250m due in 2021 with a 2 year
extension option.

OUTLOOK

The stable outlook reflects Moody's expectation that the company's
liquidity will remain adequate and its financial profile will
improve further to a level that would more comfortably position
Ferroglobe in the B1 rating category. The stable outlook also
assumes market conditions to remain favourable over the next 12 to
18 months and that tariffs discouraging cheap imports of silicon
metal into the US are confirmed.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's would consider upgrading the rating if the company were
able to improve its operating profitability and credit metrics
further, with an adjusted gross debt/EBITDA ratio well below 3.0x
and Free Cash Flow remaining positive on a sustained basis.
Liquidity position would also need to remain adequate, including
an assessment of comfortable headroom under the maintenance
financial covenants.

Moody's would consider downgrading the rating if the company were
to perform materially below expectations, in case of a sudden
market downturn substantially reducing profitability back to the
2016 cyclical bottom level, and/or in case of a more aggressive
than anticipated financial policy contemplating special
distributions to shareholders or large debt-financed acquisitions.
In particular, a downgrade could be triggered by an adjusted gross
debt/EBITDA ratio materially exceeding 4.5x, FCF turning negative
on a sustained basis and/or in case of weakened liquidity and
reduced headroom under the financial maintenance covenants.

STRUCTURAL CONSIDERATIONS

Ferroglobe's capital structure is composed of the recently signed
senior secured guaranteed RCF of $250million due 2021 and of
senior unsecured guaranteed notes of $350million due 2022.
Material operating subsidiaries representing in aggregate more
than 75% of consolidated sales and assets of Ferroglobe provide
guarantor coverage on a senior secured basis to the RCF and on a
senior unsecured basis to the notes.

In accordance to Moody's Loss Given Default (LGD) methodology, the
senior unsecured notes are rated B3, two notches below the CFR,
owing to their subordinated ranking in the capital structure
compared to the RCF. Moody's assumes that the RCF will be
partially utilized from time to time mainly to fund working
capital requirements of the business and maintain an adequate cash
headroom at all times. Furthermore, the loan agreement has an
accordion feature allowing to upsize the RCF by $100m to $350m and
this option is compatible with the terms of the bond indenture,
which allows the incurrence of additional secured debt within
permitted baskets and subject to covenant compliance.

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

Headquartered in London and listed on the Nasdaq (ticker: GSM),
Ferroglobe is a leading producer of silicon metal and silicon /
manganese alloys. The company has also interests in hydropower
assets in Europe (mainly Spain), which will be retained after the
company unsuccessfully tried to divest them during 2017. The group
was formed in December 2015 through the combination of European-
based Ferroatlantica, a subsidiary of the Spanish Villar Mir
industrial conglomerate, and US-based competitor Globe. The group,
55% owned by Grupo Villar Mir, reported c.$1.74 bn of revenues in
2017 and has a market capitalization of c. US$ 2.8bn as of end of
February 2018.


GVC HOLDINGS: Moody's Assigns Ba2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a Ba2 corporate family
rating (CFR) and a Ba2-PD probability of default rating (PDR) to
the UK listed gaming operator GVC Holdings PLC ("GVC" or the
"group"), in conjunction with its acquisition of Ladbrokes Coral
Group plc (Ba2 stable).

Concurrently, Moody's has assigned Ba2 ratings to the EUR300
million senior secured term loan B due 2023, to the new GBP1,400
million equivalent (split between GBP, EUR and USD) senior secured
term loan B2 due 2024, to the GBP400 million senior secured term
loan B3 due 2024, and to the new GBP550 million senior secured
revolving credit facility (RCF) due 2023, all to be issued by GVC.
The outlook on all ratings is stable.

The proceeds from the GBP1,400 million equivalent term loan
together with new GVC shares, cash and the payment of contingent
value rights (CVR) linked to the outcome of the Triennial Review,
will be used to fund the acquisition of Ladbrokes Coral Group and
to pay transaction fees valuing the deal up to approximately GBP4
billion. The capital structure also includes a back stop-facility
of GBP400 million (which is expected to be cancelled subject to
the outcome of the consent solicitation process for Ladbrokes
Coral's existing bonds), a GBP550 million revolving credit
facility (RCF) and up to GBP827 million unsecured loan notes to be
issued according to the CVR mechanism. At close, Moody's expects
GVC to have approximately EUR207 million of cash on balance sheet
and the RCF entirely undrawn.

Moody's notes that acquisition of Ladbrokes Coral by GVC remains
subject to shareholders and regulatory approvals and is expected
to close in the first half of 2018.

RATINGS RATIONALE

The Ba2 rating assigned to GVC reflects (1) the size of the
enlarged group with EUR3.6 billion of pro forma LTM June 2017
revenue which will be one of the world largest gaming operators
with leading positions in the UK, Germany and Italy; (2) its
geographic diversity with presence in 35 countries albeit the UK
will be the largest market accounting for over 70% of combined
revenues while Germany (where online betting is taxed and
unregulated and online gaming is taxed and technically prohibited
but is open to legal challenge with the European Court of Justice)
will be the second largest accounting only 6% of revenues from
current 28% for GVC stand-alone, with increased exposure to
regulated and/or taxed jurisdictions to 90% from 75%; (3) positive
industry trends underpinning the online betting and gaming sector
both in Europe and globally balancing the increased exposure to
the more mature retail gaming sector in the UK, Italy, Belgium,
Ireland and Spain; (4) the competitive advantage from GVC's
proprietary technology platform and customer relationship
management system (CRM) providing the group with the ability to
adjust odds and adapt to customers' preferences and games in a
timely manner; and (6) the synergies that could be achieved with
the merger, estimated in the region of GBP100 million per annum
four years post completion.

Conversely, the Ba2 rating is constrained by (1) the ongoing
threat of greater regulation and increases in gaming taxes,
particularly in the UK with the pending outcome of the Triennial
Review on FOBTs, albeit this is largely mitigated by the variable
element of the purchase price consideration and recent tax
litigation in Greece with GVC; (2) the highly competitive nature
of the online betting and gaming industry, particularly in the
established UK market, which will represent approximately50% of
the LTM June 2017 pro forma revenue and EBITDA; (3) the execution
risk in integrating the two companies given that the Ladbrokes-
Coral integration still needs to be completed; and (4) to a lesser
extent by the presence in the volatile sports betting segment as
well as to the exposure currency fluctuations given a degree of
mismatch between the reporting currency (expected to be Euro),
revenues, costs and the debt.

The group's financial leverage at close, based on analyst
consensus for FY2017 outturn for both companies but excluding the
recently disposed Turkish business is high at 5.2x. This includes
up to GBP827 million of loan notes (without the time value
adjustment) but excludes run rate synergies. However, Moody's
expects the group to de-lever towards 4.0x over the next two years
primarily from the benefits of the synergies from current and past
acquisitions including GVC-bwin.party in February 2016 and
Ladbrokes-Coral in November 2016 expected to materialize from this
fiscal year onwards.

Moody's also notes that the group will have to bear significant
one-off costs over the next three years, with negative impact on
its cash flow, particularly in 2018-2019. Some of these one-offs
are associated with this transaction, such as integration and
merger costs, other with the respective stand-alone entities such
as the payment of GVC's potential Greek tax liability, the Italian
licence renewal cost and potential restructuring costs on the UK
retail business arising from the Triennial Review.

LIQUIDITY

Moody's considers GVC's liquidity position to be adequate for its
near-term needs including high one-off due to the merger and to
implement the integration, the potential Greek tax liability,
licence renewal costs and potential costs arising from the
Triennial Review. This is supported by (1) cash on balance sheet
of at least EUR207 million at close; (2) the undrawn GBP550
million new RCF; (3) positive free cash flow generation expected
from 2019; and (4) no debt amortisation until 2022, except for the
loan notes (if issued), which Moody's assumes they will refinanced
in a timely manner in 2019.

The RCF has one springing covenant if drawn at 35% or more, set at
4.0x maximum net leverage, expected to provide large headroom. The
covenant is tested on a quarterly basis and the term loans
benefits from cross-acceleration with respect to the RCF.

STRUCTURAL CONSIDERATIONS

Using Moody's Loss Given Default for Speculative-Grade Companies
methodology, the Ba2-PD Probability of Default Rating (PDR) is in
line with the CFR. This is based on a 50% recovery rate, as is
typical for transactions including bonds and bank debt. The loans
(all rated Ba2) and the former unrated Ladbrokes Coral' bonds (if
they remain in place), will rank pari passu because they will
share the same security, consisting mainly of share pledges, and
upstream guarantees. The loans will also benefit from the
guarantees of material subsidiaries representing at least 75% of
the consolidated EBITDA. The senior unsecured loan notes will be
junior instruments with no guarantees or security.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that expected regulatory
pressures will be largely offset by the synergies to be achieved
and the variable element of the purchase price consideration,
allowing the group to de-lever below 4.5x by the end of 2019. The
stable outlook also assumes that the combined group will maintain
its operations in the unregulated jurisdictions including Germany,
that it will not engage in material debt-funded acquisitions, and
it will address the maturity of the loan notes (if these are
issued), in a timely manner.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings could arise over time if the
company's debt/EBITDA (as adjusted by Moody's) falls below 4.0x
and the company's retained cash flow (RCF)/debt (as adjusted by
Moody's) trends above 10%, both on a sustainable basis, while
maintaining positive free cash flow. For an upgrade, Moody's also
expects the group to maintain a conservative financial policy and
good liquidity.

Downward pressure on the ratings could occur if the company's
debt/EBITDA (as adjusted by Moody's) is maintained above 4.5x, or
if free cash flow remains negative 18 months post completion, or
if there any material weakening of the company's liquidity
profile. A downgrade could also occur as a result of material
adverse regulatory actions.

The principal methodology used in these ratings was Gaming
Industry published in December 2017.

After the merger with Ladbrokes Coral, GVC will become one of the
largest listed gaming operator with pro forma revenues of EUR3.6
billion and EBITDA of approximately EUR630 million for the last
twelve months (LTM) to June 30, 2017 and excluding the recent
disposal of Turkey. In particular, the enlarged entity will be one
of the world's largest listed sportsbook operators by wagers and
the largest listed online-led betting and gaming operator by
revenue. It will have top three market positions in three of
Europe's largest online gaming markets, UK, Germany and Italy, and
significant operations in Australia as well as presence in the
USA.

RATINGS:

Assignments:

Issuer: GVC Holdings PLC

-- Corporate Family Rating, Assigned at Ba2

-- Probability of Default Rating, Affirmed Ba2-PD

-- Senior Secured Bank Credit Facility, Assigned at Ba2

Outlook Action:

Issuer: GVC Holdings PLC

-- Outlook, Assigned Stable


LSF10 WOLVERINE: S&P Assigns Prelim 'B' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to LSF10 Wolverine Investments SCA, which is issuing
the group's new debt. The outlook is stable.

S&P also assigned its preliminary 'B' issue rating to the group's
proposed new facilities, issued by LSF10 Wolverine Investments,
including a EUR515 million of senior secured fixed and floating
rate notes (exact split to be confirmed when the refinancing
closes). The recovery rating on these proposed instruments is '3'
(rounded estimate 60%).

The final rating will depend on the company's successful issuance
of the new EUR100 million revolving credit facility (RCF), EUR515
million senior secured fixed and floating rate notes, and EUR100
million payment-in-kind (PIK) note. S&P said, "The final rating
will also depend on our receipt and satisfactory review of all
final transaction documentation. Accordingly, the preliminary
rating should not be construed as evidence of the final rating. If
S&P Global Ratings does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, we reserve the right to withdraw or revise our
ratings." Potential changes include, but are not limited to,
utilization of new notes proceeds, maturity, size and conditions
of the notes, financial and other covenants, security and ranking.

Private equity firm Lone Star Funds has acquired Stark Group and
is refinancing its debt. As part of the refinancing, Stark will
issue a new EUR100 million RCF, EUR515 million of new senior
secured fixed and floating rate notes (exact split to be confirmed
when the refinancing closes), and a EUR100 million PIK note. S&P
expects Stark's new owner to display an increased tolerance for
higher leverage and a less conservative financial policy,
increasing the potential for higher shareholder returns in the
future.

Stark is a leading distributor of building materials and products
in the Nordic region, with a focus on heavy-side products. It is
exclusively B2B with significant exposure to residential repair,
remodel and improvement (RMI), and new build construction
activity. For building materials companies like Stark, exposure to
RMI end-markets adds stability to demand and earnings. The group
benefits from a strong network of 179 branches across four core
markets: Denmark, Finland, Norway, and Sweden.

On the other hand, Stark is exposed to cyclical construction end-
markets. The company generates sales in only four countries,
giving it higher geographic concentration risk than rated peers.
Although careful cost-base management should enable Stark to
protect its margins when markets are choppy, the group's absolute
EBITDA has exhibited volatility in the past and could do so again.
In S&P's view, this higher-than-peers geographic concentration,
together with relatively low and volatile EBITDA, underpins the
group's business risk profile.

Stark has historically exhibited capital expenditure (capex) of
about 2.0% of revenues, which reflects a relatively asset-lite
business versus other rated building materials companies (but not
necessarily versus other distribution businesses). Given its
relatively low margins, Stark's credit metrics will be highly
sensitive to any potential pressure on profitability.

S&P said, "Although we do not rate the proposed EUR100 million PIK
toggle note, we consider it as debt under our non-common equity
criteria because it will be held by a third party and has a
collateral charge. For this reason we adjust Stark's debt to
include this instrument. We note that this PIK toggle note sits
outside of the restricted group and has a maturity date beyond the
proposed new EUR100 million RCF and EUR515 million senior secured
fixed and floating rate notes. We also adjust Stark's debt for
operating leases and pension liabilities, EUR81.7 million and
EUR38.2 million respectively for fiscal year-end 2017 (FY2017)."

S&P's base-case scenario for FY2018 assumes:

-- Robust fundamentals in most of the group's end-markets, with
    consolidated revenues forecast to grow to about EUR2.24  
    billion;

-- S&P Global Ratings-adjusted EBITDA margin gradually rising to
    more than 6%, supported by continued efforts by management to
    reduce the group's cost base;

-- Capex continuing in line with recent historic trend; and

-- No major acquisitions, divestitures, or dividends.

Based on these assumptions, and assuming supportive market
conditions, S&P arrives at the following credit measures:

-- S&P Global Ratings-adjusted debt to EBITDA of about 5.4x; and

-- Adjusted funds from operations (FFO) to debt of about 12%

Other Modifiers

Stark is owned by Lone Star Funds, a financial sponsor, which has
an increased tolerance for high leverage and potential aggressive
shareholder returns. These factors are reflected in our 'FS-6'
financial policy modifier.

S&P said, "We assess the group's management and governance as
fair, reflecting its experienced management team and clear organic
growth plans.

"The stable outlook reflects our expectation that Stark will
exhibit positive revenue growth and gradually improve its S&P
Global Ratings-adjusted EBITDA margin to above 6% following its
recent reorganization activity and management's ongoing efforts to
improve the cost base.

"We could lower the ratings if the group experienced severe margin
pressure, poorer cash flows, or higher leverage--specifically if
Stark's S&P Global Ratings-adjusted EBITDA margin were to fall to
below 5% or leverage rose to more than 6x, with little evidence of
making a swift recovery. A downgrade could also stem from debt-
funded acquisitions or increased shareholder returns.

"In our view, the probability of an upgrade over our 12-month
rating horizon is limited. This reflects the group's high leverage
and limited prospects for deleveraging over this timeframe. A new
private equity owner has increased uncertainties regarding the
possibility of shareholder returns, and could trigger changes to
the group's capex, acquisition, and disposal strategy. If Stark
were to improve and sustain its S&P Global Ratings-adjusted EBITDA
margins at least in line with our base case and deleverage to less
than 5x, we could consider raising the rating to 'B+'."


NATIONWIDE BUILDING: Fitch Affirms BB+ on Add'l Tier 1 Instruments
------------------------------------------------------------------
Fitch Ratings has assigned Nationwide Building Society's proposed
issue of contractual senior non-preferred debt (SNP) an expected
long-term rating 'A(EXP)' and downgraded the building society's
Long-Term Issuer Default Rating (IDR) to 'A' from 'A+'. The
Outlook is Stable.

Fitch has also affirmed the society's Viability Rating (VR) at
'a', outstanding senior unsecured debt at 'A+' and Derivative
Counterparty Rating (DCR) at 'A+(dcr)'. The agency has further
assigned Deposit Ratings of 'A+'/'F1' to the society.  

The downgrade follows the society's issue of SNP debt and Fitch's
belief that it is no longer certain that the buffer of qualifying
junior debt (QJD) at the society will be sustainable enough for
its Long-Term IDR to be above its VR. This new debt class becomes
the reference obligation for Nationwide's IDR and its rating is
aligned with the society's Long-Term IDR.

The affirmation of the outstanding senior debt and of the DCR and
the assignment of the deposit ratings reflect Fitch's view that
these obligations will continue to be protected by outstanding QJD
and by the new SNP debt in excess of the society's
recapitalisation amount.

The expected rating assigned to the contractual SNP debt is based
on the instrument ranking junior to other senior obligations of
the society but senior to subordinated debt. The final rating is
contingent upon the receipt of final documents conforming to
information already received.

KEY RATING DRIVERS

IDRS, VR AND SNP DEBT

Nationwide's IDRs and VR reflect the society's leading franchise
in UK mortgage lending, conservative risk appetite as well as a
sound financial profile with healthy asset quality and funding and
liquidity and good capitalisation. The VR also takes into account
the society's relatively undiversified business model, which is
weighted towards the UK housing market.

The society's mortgage loans continue to perform well and arrears
and impairment charges are low. The society's profitability has
remained adequate but earnings have come under pressure from low
interest rates. However, Fitch expects performance to remain
adequate despite competitive pressure in UK mortgage lending.

Nationwide's capitalisation is sound and is supported by good
internal capital generation. Its Fitch Core Capital (FCC) and
reported leverage ratios as calculated under the EU Capital
Requirements Regulation at end-September 2017 (end-1HFY18) stood
at 29.6% and 4.6%, respectively, comfortably above minimum
regulatory requirements. Nationwide's CET1 ratio benefits from the
low risk weights of the society's loan book, and the 3% regulatory
leverage ratio remains a binding constraint.

Fitch views the society's funding and liquidity as solid and
stable. Funding benefits from the society's large and stable
retail deposit base and is supported by good access to wholesale
markets, which Nationwide accesses for secured and unsecured
funding.

SENIOR DEBT, DCR, DEPOSIT RATINGS

Nationwide's long-term senior debt and deposit ratings and DCR are
rated one notch above the society's Long-Term IDR and VR because
Fitch believe that these obligations are protected by the
society's significant buffer of QJD, which includes additional
tier 1 and tier 2 debt, together with the buffer of SNP debt that
the society is starting to build up. In Fitch's opinion, these
buffers reduce the risk of the building society defaulting on its
senior debt, derivative counterparties and deposits.

Fitch estimates Nationwide's recapitalisation amount at about 10%
of risk-weighted assets. Without a private sector solution, Fitch
would expect resolution action to be taken on Nationwide when it
is likely to breach its pillar 1 and pillar 2A CET1 capital
requirements. On a risk-weighted basis, these are currently just
above 8% of risk-weighted assets (RWAs). Fitch believes that a
post-resolution total capital requirement of about 18.5% of RWAs
is reasonable under a bail-in scenario.

Fitch believes that because of Nationwide's low RWA-density and
the potential volatility of the society's RWAs in stress scenarios
it is also appropriate to assess the society's likely
recapitalisation if a resolution is the result of a breach of a 3%
regulatory leverage ratio. In this case, a recapitalisation to a
leverage ratio well above minimum requirements would be possible
with the current available QJD buffer excluding additional Tier 1
(AT1) instruments, which amounts to about 1.7% of the society's
leverage ratio denominator. In this scenario, the QJD would also
be sufficient to recapitalise the society to a sufficient total
capital ratio.

Nationwide's current QJD buffer is sizeable and amounted to about
15% of RWAs at end-September 2017 (end-1HFY18). This should be
sufficient to restore the society's viability without causing
losses to all senior creditors. However, following the society's
decision to issue SNP debt to meet the minimum requirement for own
funds and eligible liabilities, Fitch believes that there is no
longer sufficient certainty that the QJD buffer is sustainable if,
as Fitch assumes, the society redeems outstanding hybrid
instruments and subordinated debt at their earliest call date.
Fitch estimates that the planned issue of SNP debt will result in
a sizeable buffer of SNP and QJD that exceeds the estimated
recapitalisation amount.

The Short-Term Deposit Rating of 'F1' maps to the lower of the two
options for the 'A+' Long-Term Deposit Rating in line with Fitch's
criteria exposure draft.

SUPPORT RATING AND SUPPORT RATING FLOOR

Nationwide's Support Rating (SR) and Support Rating Floor (SRF)
reflect Fitch's view that senior creditors cannot rely on
extraordinary support from the UK authorities in the event that
Nationwide becomes non-viable. In Fitch opinion, the UK has
implemented legislation and regulations that provide a framework
requiring senior creditors to participate in losses for resolving
even large banking groups.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Nationwide's subordinated debt and hybrid securities are notched
down from the society's VR, reflecting their incremental non-
performance risk relative to the VR and assumptions around loss
severity.

Nationwide's legacy lower Tier 2 subordinated debt is notched down
once from the VR for loss severity. The permanent interest-bearing
securities (PIBS) are rated four notches below Nationwide's VR,
reflecting two notches for their deep subordination and two
notches for incremental non-performance risk. The AT1 securities
are rated five notches below Nationwide's VR, of which two notches
are for loss severity to reflect the conversion into core capital
deferred shares on breach of the trigger, and three notches for
incremental non-performance risk as coupon payment is fully
discretionary.

RATING SENSITIVITIES
IDRS, VR AND SNP DEBT

Nationwide's IDRs, VR and SNP debt rating is primarily sensitive
to an increase in the society's risk appetite, which Fitch does
not expect. The ratings would also come under pressure if
Nationwide fails to maintain sound capitalisation.

An upgrade of Nationwide's VR is unlikely within the constraints
of the society's company profile. The society's business model,
which concentrates on UK residential mortgage lending and savings,
is less diversified than that of the society's largest UK peers.

Nationwide's VR could also be affected by a material change in the
operating environment in the UK, for example if the economic
effect of the UK's decision to leave the EU is particularly
severe, which may lead to a material worsening of underlying
earnings and asset quality.

Nationwide's Long-Term IDR and SNP debt could be rated one notch
above the VR if Fitch concludes that the society will maintain its
QJD buffer above the estimated recapitalisation amount in the
long-term.

SENIOR DEBT, DCR, DEPOSIT RATINGS

The senior debt, DCR and Deposit Ratings are sensitive to a change
in the society's VR.

The ratings would be downgraded to the level of the society's IDR
and VR if the size of the combined buffer of QJD and SNP debt is
reduced materially or if Fitch expects the volume to decline. The
one-notch uplift of the ratings above the society's IDR and VR is
also sensitive to changes in assumptions on the resolution
intervention point and post-resolution capital needs.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of Nationwide's SR and upward revision of the SRF would
be contingent on a positive change in the sovereign's propensity
to support banks or building societies, which is highly unlikely,
in Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The ratings are primarily sensitive to changes in the VR from
which they are notched. The ratings of the AT1 instruments are
also sensitive to Fitch changing its assessment of the probability
of their non-performance relative to the risk captured in
Nationwide's VR. This could occur if there is a change in capital
management or flexibility, or an unexpected shift in regulatory
buffers. The ratings are also sensitive to a change in Fitch's
assessment of each instrument's loss severity, which could reflect
a change in the expected treatment of liability classes during a
resolution.

The rating actions are:

Long-Term IDR downgraded to 'A' from 'A+; Outlook Stable
Short-Term IDR affirmed at 'F1'
Viability Rating: affirmed at 'a'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Derivative Counterparty Rating: affirmed at 'A+(dcr)'
Long-term deposit rating: assigned at 'A+'
Short-term deposit rating: assigned at 'F1'
Senior unsecured debt, including programme ratings: affirmed
  at 'A+'/'F1'
SNP debt: assigned at 'A(EXP)'
Lower Tier 2: affirmed at 'A-'
Preferred stock/securities (PIBS): affirmed at 'BBB-'
Additional Tier 1 instruments: affirmed at 'BB+'


NESCU: Savers' Cash Protected Under FSCS
----------------------------------------
Evening Express reports that schemes have offered assurances they
will not be affected following the collapse of North East Scotland
Credit Union Ltd (NESCU).

NESCU ceased trading on Feb. 27 after going into administration,
Evening Express recounts.

Grampian Credit Union Ltd and St Machar Credit Union Ltd have
issued a joint statement, to reassure their members, Evening
Express relates.

According to Evening Express, it said: "Every one of the almost
330 credit unions in Britain is a separate financial co-operative,
owned and controlled by its members, so events at any other credit
union do not affect us."

Administrators have confirmed that the investments of NESCU's
2,500 members were covered under the Financial Services
Compensation Scheme (FSCS) and all cash would be protected,
Evening Express discloses.



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


* BOOK REVIEW: AS WE FORGIVE OUR DEBTORS
----------------------------------------
Authors: Teresa A. Sullivan, Elizabeth Warren,
& Jay Westbrook
Publisher: Beard Books
Softcover: 370 Pages
List Price: $34.95
Review by: Susan Pannell
Order your personal copy today at
http://www.beardbooks.com/beardbooks/as_we_forgive_our_debtors.htm
l

So you think you know the profile of the average consumer debtor:
either deadbeat slouched on a sagging sofa with a three day growth
on his chin or a crafty lower-middle class type opting for
bankruptcy to avoid both poverty and responsible debt repayment.
Except that it might be a single or divorced female who's the one
most likely to file for personal bankruptcy protection, and her
petition might be the last stage of a continuum of crises that
began with her job loss or divorce. Moreover, the dilemma might be
attributable in part to consumer credit industry that has
increased its profitability by relaxing its standards and
extending credit to almost anyone who can scribble his or her name
on an application. Such are among the unexpected findings in this
painstaking study of 2,400 bankruptcy filings in Illinois,
Pennsylvania, and Texas during the seven-year period from 1981 to
1987. Rather than relying on case counts or gross data collected
for a court's administrative records, as has been done elsewhere,
the authors use data contained in the actual petitions. In so
doing, they offer a unique window into debtors' lives.

The authors conclude that people who file for bankruptcy are, as a
rule, neither impoverished families nor wily manipulators of the
system. Instead, debtors are a cross-section of America. If one
demographic segment can be isolated as particularly debtprone, it
would be women householders, whom the authors found often live on
the edge of financial disaster. Very few debtors (3.7 percent in
the study) were repeat filers who might be viewed as abusing the
system, and most (70 percent in the study) of Chapter 13 cases
fail and become Chapter 7s. Accordingly, the authors conclude that
the economic model of behavior -- which assumes a petitioner is a
"calculating maximizer" in his in his decision to seek bankruptcy
protection and his selection of chapter to file under, a profile
routinely used to justify changes in the law -- is at variance
with the actual debtor profile derived from this study.

A few stereotypes about debtors are, however, borne out. It is
less than surprising to learn, for example, that most debtors are
simply not as well-off as the average American or that while
bankrupt's mortgage debts are about average, their consumer debts
are off the charts. Petitioners seem particularly susceptible to
the siren song of credit card companies. In the study sample,
creditors were found to have made between 27 percent and 36
percent of their loans to debtors with incomes below $12,500
(although the loans might have been made before the debtors'
income dropped so low). Of course, the vigor with which consumer
credit lenders pursue their goal of maximizing profits has a
corresponding impact on the number of bankruptcy filings.

The book won the ABA's 1990 Silver Gavel Award. A special 1999
update by the authors is included exclusively in the Beard Book
reprint edition.



                            *********

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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


                 * * * End of Transmission * * *