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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

          Wednesday, March 28, 2018, Vol. 19, No. 062


                            Headlines


I R E L A N D

BLACKROCK EUROPEAN: Moody's Assigns (P)B2 Rating to Class F Notes


I T A L Y

PERMICRO SPA: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
SALINI IMPREGILO: S&P Places 'BB+' CCR on CreditWatch Negative


K A Z A K H S T A N

KAZAGRO NATIONAL: Moody's Assigns Ba1 Long-Term Issuer Rating


N E T H E R L A N D S

BARINGS EURO: Moody's Assigns B1 Rating to Class F Sr. Notes


P O L A N D

PROCHNIK SA: Files Motion to Open Restructuring Proceedings


R U S S I A

O1 PROPERTIES: Moody's Puts B1 CFR on Review for Downgrade
ER-TELECOM HOLDING: Moody's Withdraws B2 Corporate Family Rating
MOTOVILIKHA PLANTS: Declared Insolvent by Court
PROMSVYAZBANK PJSC: Bank of Russia Approves Bankruptcy Measures
SOVCOMBANK PJSC: Fitch Alters Outlook to Pos., Affirms BB- IDR


S P A I N

MBS BANCAJA 2: Fitch Affirms 'CCsf' Rating on Class F Notes
SANTANDER EMPRESAS 3: Fitch Affirms C Rating on Class F Notes


S W E D E N

NOBINA AB: S&P Withdraws 'BB' Long-Term Issuer Credit Rating


U N I T E D   K I N G D O M

GENUS UK: Seeks Company Voluntary Arrangement to Cut Rents
NEW LOOK: Traders Push for CDS Payouts Following CVA Approval
NEWGATE 2007-2: Fitch Affirms 'CCC' Ratings on Two Note Classes
PRECISE MORTGAGE: Moody's Assigns B3 Rating to Class X Notes
PREMIERTEL PLC: S&P Affirms BB (sf) Rating on Class B Bonds

VIRGIN MEDIA: S&P Rates New GBP300MM Sr. Unsec. RFNs 'B'


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BLACKROCK EUROPEAN: Moody's Assigns (P)B2 Rating to Class F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
seven classes of notes to be issued by BlackRock European CLO V
Designated Activity Company:

-- EUR216,000,000 Class A-1 Senior Secured Floating Rate Notes
    due 2031, Assigned (P)Aaa (sf)

-- EUR32,000,000 Class A-2 Senior Secured Fixed Rate Notes due
    2031, Assigned (P)Aaa (sf)

-- EUR42,000,000 Class B Senior Secured Floating Rate Notes due
    2031, Assigned (P)Aa2 (sf)

-- EUR24,000,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)A2 (sf)

-- EUR21,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)Baa2 (sf)

-- EUR25,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)Ba2 (sf)

-- EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in July 2031. The provisional ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets. Furthermore, Moody's is of the opinion that
the Collateral Manager, BlackRock Investment Management (UK)
Limited ("BlackRock IM", the "Manager"), has sufficient
experience and operational capacity and is capable of managing
this CLO.

BlackRock V is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior obligations and up to
10% of the portfolio may consist of unsecured senior loans,
unsecured senior bonds, second lien loans, mezzanine obligations
and high yield bonds. At closing, the portfolio is expected to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be
acquired during the six month ramp-up period in compliance with
the portfolio guidelines.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR41,500,000 of subordinated notes. Moody's
will not assign a rating to this class of notes.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

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

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

Target Par Amount: EUR400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2760

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 42.00%

Weighted Average Life (WAL): 8.50 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond ratings of A1 or below. According to the
portfolio eligibility criteria, obligors must be domiciled in a
jurisdiction the Moody's local currency country risk ceiling
("LCC") of which is "A3" or above. In addition, according to the
portfolio constraints, the total exposure to countries with a
local currency country risk bond ceiling ("LCC") between "A1" and
"A3" shall not exceed 10.0%. As a result, in accordance with its
methodology, Moody's did not adjust the target par amount
depending on the target rating of each class of notes.

Stress Scenarios:

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

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

Percentage Change in WARF -- increase of 15% (from 2760 to 3174)

Rating Impact in Rating Notches:

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

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

Class B Senior Secured Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 2760 to 3588)

Rating Impact in Rating Notches:

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

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

Class B Senior Secured Floating Rate Notes: -4

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -2


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I T A L Y
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PERMICRO SPA: S&P Withdraws 'B-' Long-Term Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings withdrew its 'B-' long-term issuer credit
rating on Italian microfinance institution PerMicro S.p.A. at the
issuer's request. The outlook was stable at the time of
withdrawal.


SALINI IMPREGILO: S&P Places 'BB+' CCR on CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with negative
implications its 'BB+' ratings on Italy-based construction
company Salini Impregilo SpA and its debt.

On March 15, 2018, Salini Impregilo published its 2017 results,
reporting weaker-than-expected credit metrics, mainly owing to
depressed operating cash flow generation and adverse movements in
foreign exchange rates that hurt its net financial position.

In 2017, a sharp increase in Salini Impregilo's working capital
absorbed EUR243 million of its operating cash flow, which S&P
understands was mainly because of fewer-than-expected advanced
payments. Movements in foreign exchange rates, mainly U.S. dollar
depreciation against the euro, also dented Salini Impregilo's
cash flow, as about 70% of revenues are denominated in currencies
other than the euro. The group reported a foreign exchange impact
of EUR135 million on revenues and EUR41 million on EBITDA. In
addition, Salini Impregilo's net financial position was affected
because the company's gross debt is denominated mostly in euro,
while its cash, most of which is located outside Europe, is
mainly denominated in other currencies, such as the U.S. dollar.
This leads S&P to estimate an S&P Global Ratings-adjusted funds
from operations (FFO) to debt of 24%-26% in 2017, versus its
previous expectations of 31%-32%.

Furthermore, Salini Impregilo wrote off around 50% of its
Venezuelan assets last year, reducing its total exposure to
Venezuela to EUR314 million from EUR628 million. This caused a
reported EBIT impact in 2017 of around EUR292 million. The write-
off has not dragged down the company's 2017 operating cash flow.

At the same time, Salini Impregilo revised down its 2018-2019
financial targets. Although the company aims to generate EUR500
million of free operating cash flow in 2018 and 2019, it targets
a gross debt reduction of only EUR200 million in the same period,
versus a previous target of achieving a gross debt to EBITDA of
2.0x-2.5x, which was based on a more favorable euro/U.S. dollar
exchange rate. S&P said, "As a result, our adjusted credit
metrics for 2018-2019 might be below our current base-case
scenario. For instance, adjusted FFO to debt may remain below
30%, which would not be commensurate with our 'BB+' rating. We
acknowledge, however, that we apply significant adjustments to
our calculations of Salini Impregilo's debt, such as granted
financial guarantees and haircut on cash, and that we would need
more details on the company's 2017 results to update our base
case for 2018-2019."

S&P said, "We continue to believe that Salini Impregilo benefits
from good geographic diversity, generating about 23% of revenues
in Europe, 26% in the U.S., 13% in Africa, and 26% in the Middle
East, with the remaining share stemming from Australia and Latin
America. The company's focus on infrastructure--water, road,
rails, and civil construction--creates growth potential, in our
view. In emerging markets, the company enjoys increasing
urbanization and the growing economic weight of the middle class,
while it benefits from the need to replace aging facilities in
its mature markets.

"The group had a solid order backlog of EUR34 billion as of end-
2017, with a ratio of backlog to revenues in excess of 5.6x. We
believe a large part of revenue growth in the coming years will
come from the U.S., where Salini Impregilo's market position has
strengthened significantly thanks to the acquisition of U.S.-
based construction company Lane Industries in January 2016. About
40% of new orders in 2017 were generated in the U.S. We view this
market as one of the most promising, given its pronounced needs
for infrastructure renovation. We expect the company's U.S. units
to contribute approximately 30% of revenues in 2018-2019.

"Nevertheless, although we acknowledge that contracts in Africa
often display attractive profitability, we think that Salini
Impregilo's marked exposure to emerging markets overall poses
unpredictable risks. Furthermore, Salini Impregilo's project
concentration is higher than most rated peers. Based on 2017
data, its 10-largest projects represented about 47% of total
revenues, mainly concentrated in emerging markets. Lastly, Salini
Impregilo remains smaller than higher-rated European companies,
such as Strabag SE, Hochtief AG, and The ACS Group.

"We aim to resolve the CreditWatch within the next three months.
We plan to meet management to discuss its 2018-2019 deleveraging
plan, including its management of working capital and capital
expenditures, and appetite for additional acquisitions. Our
analysis could prompt us to affirm the ratings or lower them by
one notch maximum."


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K A Z A K H S T A N
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KAZAGRO NATIONAL: Moody's Assigns Ba1 Long-Term Issuer Rating
-------------------------------------------------------------
Moody's Investors Service has assigned Ba1 long-term and Not
Prime short-term local and foreign currency issuer ratings to
KazAgro National Management Holding JSC (KazAgro). The outlook on
the long-term issuer ratings is stable. At the same time, Moody's
assigns the Aa2.kz National Scale Issuer Rating to KazAgro.

RATINGS RATIONALE

KazAgro's ratings reflect the holding company's important role in
promoting development of agriculture sector in Kazakhstan. The
rating also incorporates KazAgro's significant integration with
the government, through the government's 100% ownership of the
holding company and its involvement in KazAgro's business
activities, including control over its financial performance and
approval of its key metrics.

KazAgro is a financial arm of the Government of Kazakhstan (Baa3,
Stable), which uses the holding company to provide financial
support to the agriculture sector through a number of
institutions that are under KazAgro's umbrella. The holding
company was created under a special order by Kazakhstan's
government in 2006 and streamlines the financing and management
of its subsidiaries. It centralises interaction between its
subsidiaries and government bodies, channels government funding,
systematises strategic development of subsidiaries and undertakes
their operating and risk controls.

KazAgro de-facto operates as a government agent in support of its
economic activities in agriculture sector which accounts for 5%
of the country's GDP and employs a significant part of the
country's population. The holding's assets account for 3% of the
GDP, it has around 45% of the share in lending to entities
related to agriculture sector and over 80% of micro lending in
rural areas.

KazAgro's institutional framework encompasses strong links with
the government, including through the involvement of high-ranking
government officials in its strategic activities and monitoring
through the Board of Directors, which approves the organisation's
development plans and controls its performance and risk position.
In addition, the Ministry of Finance receives KazAgro Holding's
debt statements regularly, while programme implementation reports
are submitted to respective government bodies.

Moody's believes the Kazakhstan government would provide
financial support to the holding company, if it were necessary,
to avoid the significant damage that could otherwise result, in
terms of 1) its reputation; 2) reduced access to market funding
for government-related entities; 3) impairment or disruption in
the implementation of important government programmes; and 4)
loss of control over its important subsidiaries to creditors.

At the same time, Moody's notes that the significant losses
incurred during the past three years which were partially covered
by capital may decrease the willingness of the national
government to provide support: at certain point the central
government may start limiting/delaying support in case of
additional losses the holding.

OUTLOOK

The stable outlook on KazAgro's ratings mirrors the stable
outlook on Kazakhstan's sovereign bond rating and reflects the
company's strong institutional and financial links with the
Kazakhstan government.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The ratings could improve if the Kazakhstan government's ratings
improve, provided there is no weakening of institutional and
financial links between the two.

Conversely, the downward revision of the ratings will likely
follow: 1) a downward revision of the sovereign's ratings, 2) a
weakening in the government's support, 3) weaker government
controls over KazAgro's financials and strategic performance.

LIST OF ASSIGNED RATINGS

Issuer: KazAgro National Management Holding JSC

Assignments:

-- LT Issuer Rating, Assigned Ba1, Outlook assigned Stable

-- ST Issuer Rating, Assigned NP

-- NSR LT Issuer Rating, Assigned Aa2.kz

Outlook Actions:

-- Outlook, Assigned Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Government-
Related Issuers published in August 2017.


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BARINGS EURO: Moody's Assigns B1 Rating to Class F Sr. Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Barings Euro CLO
2018-1 B.V.:

-- EUR292,500,000 Class A Senior Secured Floating Rate Notes due
    2031, Definitive Rating Assigned Aaa (sf)

-- EUR35,650,000 Class B-1 Senior Secured Floating Rate Notes
    due 2031, Definitive Rating Assigned Aa2 (sf)

-- EUR33,350,000 Class B-2 Senior Secured Fixed Rate Notes due
    2031, Definitive Rating Assigned Aa2 (sf)

-- EUR33,500,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2031, Definitive Rating Assigned A2 (sf)

-- EUR25,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2031, Definitive Rating Assigned Baa2 (sf)

-- EUR27,500,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2031, Definitive Rating Assigned Ba2 (sf)

-- EUR15,000,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2031, Definitive Rating Assigned B1 (sf)

RATINGS RATIONALE

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

Barings Euro CLO 2018-1 B.V. is a managed cash flow CLO. At least
96% of the portfolio must consist of senior secured loans and
senior secured bonds and up to 4% of the portfolio may consist of
unsecured senior loans, second-lien loans, mezzanine obligations
and high yield bonds. The portfolio is expected to be at least
80% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR46.75M of subordinated notes which will not
be rated.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.

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

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

Par amount: EUR500,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2870

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 4.9%

Weighted Average Recovery Rate (WARR): 42.0%

Weighted Average Life (WAL): 8 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3301 from 2870)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: 0

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3731 from 2870)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1


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PROCHNIK SA: Files Motion to Open Restructuring Proceedings
-----------------------------------------------------------
Reuters reports that Prochnik S.A. said it has filed a motion to
open restructuring proceedings.

According to Reuters, the company said the main assumptions of
the restructuring involve divesting non-core assets, focusing on
Prochnik brand development and the sale of Rage Age brand.

It said the changes will also involve radical reduction of fixed
costs, Reuters relates.

Prochnik S.A. manufactures and sells men's and women's wear in
Poland.


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R U S S I A
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O1 PROPERTIES: Moody's Puts B1 CFR on Review for Downgrade
----------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
B1 corporate family rating, the B1-PD probability of default
rating, and the B1 senior unsecured instrument ratings of O1
Properties Limited (O1), Russia's leading real estate investment
company.

The rating action follows the announcement on March 5, 2018 by O1
Group of the proposed sale of its entire controlling stake in O1
to Laysa Group (not rated), an advertising operator that has the
Russian Railways Joint Stock Company (Baa3 positive) as a
principal client. While the exact price has not been disclosed,
the deal includes a commitment by Laysa Group to repay O1 Group's
debt to Credit Bank of Moscow (Ba3 stable) of around RUB25
billion.

Aside from regular antitrust clearance, the deal remains subject
to the consent of the most of O1's existing creditors to avoid
the acceleration of principal payments under the change of
control clause under bank loans and the $350 million Eurobonds.

RATINGS RATIONALE

As part of the review, Moody's will consider the impact of the
proposed sale of the controlling stake in O1 to Laysa Group on
the company's business and financial risk profile in the context
of the likelihood and the anticipated funding structure of the
deal, which is not known at this stage.

Although O1 has confirmed that the sale will not result in
changes to its operating policy and most of the senior management
team will remain with the company, there is a high degree of
uncertainty in respect of potential developments in its operating
and financial policies and credit metrics under a new majority
shareholder.

In particular, there is a lack of clarity over Laysa Group's
strategy towards the company, specifically given that, as Moody's
understand, the group has not previously been involved in the
real estate sector.

How Laysa Group will fund the transaction and whether O1 will be
required to assume any related liabilities are also unclear at
this point in time. The company's effective leverage (measured by
adjusted debt/gross assets) was 77.5% as of June 2017 and is
likely to remain around 75% in 2018, providing no headroom under
Moody's current guidance for the B1 rating. Moody's, however,
notes that O1's ability to procure new debt and distribute
dividends is limited, as it remains in breach of the incurrence
leverage covenants embedded in its Eurobonds, and has a number of
financial covenants under its bank loans.

The review will also take into account any potential exposure of
O1 to adverse developments at the O1 Group level.

At the same time, O1's current business profile remains solid.
The company continues to perform in line with Moody's
expectations and reported healthy operating results under overall
stabilising market conditions. The company's liquidity also
remains sound, as supported by a comfortable debt maturity
profile with no significant debt repayments due in the next 12-18
months.

WHAT COULD CHANGE THE RATING UP / DOWN

Prior to the review process, Moody's had indicated that O1's
rating could come under pressure if the company were to face a
material deterioration in its business and financial profile,
with adjusted leverage exceeding 75% and adjusted fixed-charge
coverage falling below 1.4x on a sustained basis. A noticeable
deterioration of the company's liquidity could also pressure the
rating.

The ratings could be confirmed if (1) the sale of the controlling
stake in the company were not to proceed, resulting in a greater
degree of certainty about the company's financial profile and
strategy; (2) if the transaction with Laysa Group does proceed,
there is greater clarity that it will not create any pressure on
O1's operating and financial profiles and liquidity with credit
metrics remaining comfortably positioned against Moody's
guidance, which includes adjusted leverage at or below 75% and
adjusted fixed charge coverage at 1.4x or above; and (3) the
potential risks from the developments at O1 Group level recede;

Though unlikely in the near term, upward pressure on the rating
could develop if, on a sustained basis, adjusted "effective"
leverage and adjusted fixed-charge coverage were to trend towards
60% and 2.0x, respectively; and secured debt/total assets were to
stay below 50%, while O1 preserves its strong liquidity and
operating profile.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

O1 Properties Group (O1) is Russia's leading real estate
investment company. The company manages, develops and acquires
office properties in Moscow. As of June 30, 2017, reported gross
asset value, including two development projects, stood at $3.65
billion. The company also participates, with a 50%+1 share, in a
joint venture (JV) for the Bolshevik Development Project, with a
total reported gross asset value of $280 million.

LIST OF AFFECTED RATINGS

On Review for Possible Downgrade:

Issuer: O1 Properties Finance JSC

-- Backed Senior Unsecured Regular Bond/Debenture, Placed on
    Review for Possible Downgrade, currently B1

Issuer: O1 Properties Finance Plc

-- Backed Senior Unsecured Regular Bond/Debenture, Placed on
    Review for Possible Downgrade, currently B1

Issuer: O1 Properties Limited

-- Corporate Family Rating, Placed on Review for Possible
    Downgrade, currently B1

-- Probability of Default Rating, Placed on Review for Possible
    Downgrade, currently B1-PD

Outlook Actions:

Issuer: O1 Properties Finance JSC

-- Outlook, Changed To Rating Under Review From Stable

Issuer: O1 Properties Finance Plc

-- Outlook, Changed To Rating Under Review From Stable

Issuer: O1 Properties Limited

-- Outlook, Changed To Rating Under Review From Stable


ER-TELECOM HOLDING: Moody's Withdraws B2 Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of ER-Telecom
Holding, JSC, a telecommunications company operating in Russia.
At the time of withdrawal the ratings were: corporate family
rating and probability of default rating of B2 and B2-PD,
respectively. The ratings have had a stable outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

ER-Telecom Holding, JSC (ER-Telecom) is a telecommunications
company providing high-speed internet access, cable TV, and fixed
line telephony services in Russia under the brand dom.ru. The
company's network currently covers around 11 million households
in 566 towns. ER-Telecom is 67.9% owned by the Perm Industrial
and Financial Group (PFIG), 9.3% by Baring Vostok Capital
Partners, 15.8% by management and 7% by Enforta B.V. In the last
12 months ended September 30, 2017, ER-Telecom generated revenue
of RUB32.4 billion ($545 million) and EBITDA, as adjusted by
Moody's, of RUB12.9 billion ($216 million).


MOTOVILIKHA PLANTS: Declared Insolvent by Court
-----------------------------------------------
Reuters reports that Motovilikha Plants said the court declared
the company insolvent.

Motovilikha Plants is a Russian metallurgical and military
equipment manufacturer.


PROMSVYAZBANK PJSC: Bank of Russia Approves Bankruptcy Measures
---------------------------------------------------------------
The Bank of Russia approved amendments to the plan of its
participation in bankruptcy prevention measures for Public Joint
Stock Company Promsvyazbank, further referred to as the Bank
(Reg. No. 3251); this plan is further referred to as the
Participation Plan.  The amendments provide for the involvement
of the State Corporation Deposit Insurance Agency (further
referred to as the Agency) as the investor in the bankruptcy
prevention measures for the Bank and its recapitalisation.

Once the Agency buys an additional issue of the Bank's ordinary
certified shares to the value of RUR113.4 billion, its total
shareholding in the Bank will rise to 99.9% (ordinary shares).
The Participation Plan also suggests that the Agency should offer
the Bank its financial assistance, for which the Agency will use
assets received from the Bank of Russia as an asset contribution.

The Bank of Russia's asset contribution to the Agency and the
Agency's participation in the authorised capital of the Bank are
in keeping with Federal Law No. 53-FZ, dated 7 March 2018, "On
Amending Certain Laws of the Russian Federation".

It is intended that the Bank should sell its toxic assets to
complete its financial resolution.

These measures will make the Bank compliant with its individual
capital adequacy requirements, as well as capital conservation
and systemic buffers.

The Bank will return the funds previously provided by the Bank of
Russia as liquidity before the end of 2018.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.


SOVCOMBANK PJSC: Fitch Alters Outlook to Pos., Affirms BB- IDR
--------------------------------------------------------------
Fitch Ratings has revised PJSC Sovcombank's (SCB) and
Rosevrobank's (REB) Outlooks to Positive from Stable, while
affirming the banks' Long-Term Issuer-Default Ratings (IDRs) at
'BB-'. Fitch has also placed the Support Rating of '5' of REB on
Rating Watch Positive (RWP).

The rating action follows the banks' joint announcement on 13
March 2018 that SCB would acquire a further large stake in REB,
thereby becoming its majority shareholder with 92% of outstanding
shares. The remaining 8% will be held by Ilya Brodsky, the CEO of
REB. The transaction is subject to the regulatory approval.

KEY RATING DRIVERS
Viability Ratings AND IDRS

The affirmation of the banks' 'bb-' Viability Ratings (VRs) and
'BB-' Long-Term IDRs reflects the banks' generally adequate and
stable credit profiles, supported by sound asset quality, robust
profitability, comfortable liquidity and adequate capitalisation
(albeit somewhat tighter at SCB).

The Positive Outlook on SCB's Long-Term IDRs reflects Fitch's
view that the medium- to long-term benefits from the acquisition
and subsequent merger should significantly outweigh the moderate
short-term negative of a temporary reduction in SCB's regulatory
capital ratios.

The expected benefits mainly stem from the banks' complementary
business models -- SCB's core businesses are consumer lending,
which is well-managed and which was recently diversified through
the acquisition of an auto lender, Metcombank, and a mortgage
book from JSC Nordea Bank (BBB-/Positive), and strong investment
banking, including securities trading and bond/syndicated loan
origination. REB, on the other hand, has a more developed
corporate franchise with a high share of commission income and a
very granular and relatively cheap and sticky funding base
(average cost of funding of 4.3% in 2017, significantly below
SCB's 6.8% and the market average of 4.8%). After the acquisition
SCB will on a consolidated basis become the third-largest
privately-owned banking group in Russia, accounting for about
1.3% of sector assets and with the potential to be designated as
a systemically important institution.

SCB's regulatory capital ratios will initially take a moderate
hit due to the deduction of the investment in REB. However, this
has already been partially offset, as the bank has built up its
capital buffers by about 2pps since mid-2017 through strong
earnings generation (annualised ROAE of over 40% in 2H17) and the
raising of USD100 million tier 1 and USD150 million tier 2
capital in March 2018. Fitch estimates that the regulatory core
Tier 1 and Tier 1 ratios to have dropped to 9% and 10%,
respectively, immediately after the acquisition, from 11% and 12%
(adjusted for unaudited profit) at end-February 2018, but will
remain well above the regulatory minimums with capital buffers
(6.375% for core Tier 1 and 7.875% for Tier 1). However, they
should recover to 10% and 11% by end-2018, as the bank plans to
constrain growth and retain earnings. Consolidated IFRS
capitalisation is stronger and is expected to remain solid, with
a Fitch Core Capital (FCC) ratio of above 12% after the
acquisition, moderately down from 14% at end-2017.

The transition and integration risks, although present, should be
manageable, as the transaction has been well-prepared in advance
and the banks should have sufficient time to align their
businesses and operations prior to the full merger. SCB plans to
retain the core management team of REB.

The Positive Outlook on REB's ratings reflects that on SCB's, as
the banks' credit profiles should become increasingly aligned on
the way to a full merger. As a part of the planned transaction,
REB should buy back 10% of its shares, and as a result its
capital ratios are likely to contract moderately (FCC ratio by
1.8pps, regulatory ratios by 1.5pps), but they should still be
commensurate with the 'BB' rating category.

Other aspects of the banks' credit profiles remain sound and
mostly unaffected by the acquisition. Asset quality is sound,
with non-performing loans (90+ days overdue) of 2.3% at SCB and
1.8% at REB at end-2017, profitability is sound with ROAE of 40%
at SCB (24% net of trading revenues) and 20% at REB for 2017, and
liquidity buffers are strong covering 51% of customer deposits at
SCB and 58% at REB at end-2017.

SENIOR DEBT RATING, SUPPORT RATING AND SUPPORT RATING FLOOR
SCB's senior unsecured debt rating is aligned with the bank's
Long-Term Local-Currency IDR, reflecting Fitch's view of average
recovery prospects, in case of default.

The RWP on REB's Support Rating of '5' reflects the likelihood
that the rating would be upgraded following the acquisition,
based on the higher propensity of support from SCB given the
planned majority ownership and integration plans. SCB's Support
Rating of '5' and Support Rating Floor of 'No Floor' reflect
Fitch's view that support from the bank's private shareholders or
the Russian authorities, although possible, could not be relied
upon.

RATING SENSITIVITIES

The ratings of SCB and REB could be upgraded over the next 12 to
18 months provided that the transaction's execution and the
impact on the banks' credit profiles are broadly in line with
Fitch current expectations and there is no significant
deterioration in core financial metrics or the operating
environment due to other factors.

Conversely, the Outlooks could be revised back to Stable in case
of a significant deterioration of the banks' credit profiles,
especially in respect to their capital positions and/or asset
quality.

REB's Support Rating of '5' will likely be upgraded upon the
acquisition by SCB of a controlling stake in the bank.

The rating actions are:

SCB
Long-Term Foreign- and Local-Currency IDRs: affirmed at 'BB-';
Outlooks Revised to Positive from Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt: affirmed at 'BB-'

REB
Long-Term Foreign- and Local-Currency IDRs: affirmed at 'BB-';
Outlooks Revised to Positive from Stable
Short-Term Foreign-Currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: '5'; placed on RWP
Support Rating Floor: affirmed at 'No Floor'


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


MBS BANCAJA 2: Fitch Affirms 'CCsf' Rating on Class F Notes
-----------------------------------------------------------
Fitch Ratings has upgraded four tranches of MBS Bancaja 2, FTA
and affirmed two others:

Class A (ES0361795000) upgraded to 'AAAsf' from 'AA+sf'; off
Rating Watch Positive (RWP); Outlook Stable
Class B (ES0361795018) upgraded to 'AAAsf' from 'AA+sf'; Outlook
Stable
Class C (ES0361795026) upgraded to 'AA+sf' from 'AAsf'; Outlook
Stable
Class D (ES0361795034) upgraded to 'AA-sf' from 'A+sf'; Outlook
Stable
Class E (ES0361795042) affirmed at 'BBB+sf'; Outlook Stable
Class F (ES0361795059) affirmed at 'CCsf'; Recovery Estimate 0%

The transaction is a Spanish prime RMBS comprising loans serviced
by Bankia S.A. (BBB-/Positive/F3).

KEY RATING DRIVERS

Sovereign Upgrade
Following the upgrade of Spain's Long-Term Issuer Default Rating
(IDR) to 'A-'/Stable from 'BBB+'/Positive on 19 January 2018, the
maximum achievable rating of Spanish structured finance
transactions is 'AAAsf' for the first time since 2012,
maintaining a six-notch differential with the sovereign rating.

RWP Resolution
The RWP on class A notes reflected a potential upgrade to
'AAAsf', as documented in the prior commentary (see "Fitch
Upgrades 9 Tranches of MBS Bancaja; Affirms 8" dated 31 January
2018). The continued sound asset performance of this transaction,
combined with the increased maximum achievable rating of Spanish
structured finance transactions, has driven the upgrade of the
class A notes to 'AAAsf'.

Strong Credit Enhancement (CE)
Structural CE ranged between 25.2% and 5.3% for the class A and E
notes, respectively, as of February 2018. Fitch expects CE to
continue building up for every tranche including the class E
notes, because the cash reserve fund is not permitted to amortise
further, and also because the current pro-rata amortisation of
the class A to D notes will switch to sequential when the
outstanding portfolio balance represents less than 10% of its
original amount (currently at 15%).

Stable Credit Performance
The transaction continues to show sound asset performance. Three-
month plus arrears (excluding defaults) as a percentage of the
current pool balance stood at 0.6% as of the last reporting
period, and gross cumulative defaults (defined as arrears over 18
months) at 2.6% of the initial portfolio balance. Fitch expects
performance to remain stable especially given the significant
seasoning of the securitised portfolio of 14 years.

Geographic Concentration Risk
The securitised portfolio is exposed to geographical
concentration in Valencia, which accounts for approximately 73%
of the collateral balance. As per its criteria, Fitch has applied
a higher set of rating multiples to the base foreclosure
frequency assumption to the portion of the portfolio that exceeds
2.5x the population within this region.

RATING SENSITIVITIES

Deterioration in asset performance may result from economic
factors, in particular from increasing unemployment and interest
rates. An increase in defaults and the associated compression in
the available CE could result in negative rating action, in
particular for the junior notes.


SANTANDER EMPRESAS 3: Fitch Affirms C Rating on Class F Notes
-------------------------------------------------------------
Fitch Ratings has upgraded FTA, Santander Empresas 3's class C
notes and affirmed the others:

EUR100.6 million class C (ISIN ES0337710042): affirmed at 'A+sf';
Outlook Stable
EUR70 million class D (ISIN ES0337710059): upgraded to 'B+sf'
from 'Bsf'; Outlook Positive
EUR45.5 million class E (ISIN ES0337710067): affirmed at 'CCsf';
Recovery Estimate (RE) revised to 40% from 0%
EUR45.5 million class F (ISIN ES0337710075): affirmed at 'Csf';
RE 0%

FTA Santander Empresas 3 is a granular cash flow securitisation
of a static portfolio of secured and unsecured loans granted to
Spanish small- and medium-sized enterprises by Banco Santander
S.A.

KEY RATING DRIVERS

Positive Performance Expectations
Fitch's performance expectations on Spanish SME portfolios have
improved, as reflected by the reduction of the Spanish country
benchmark to 3.5% from 4% in the latest update of the agency's
SME Balance Sheet Securitisation Rating Criteria published on 23
February 2018.

Despite its weak performance over the global financial crisis,
Santander Empresas 3 has shown a robust performance during the
last three years. Over the past 12 months, average 90 days
delinquencies were 0.8% while only 0.4% of the outstanding
portfolio balance as of January 2017 has defaulted. As a result,
Fitch assumed a transaction probability of default benchmark of
2.5%, below the Spanish country benchmark.

Increasing Credit Enhancement
Credit enhancement is building up due to the sequential
amortisation of the notes. During the last 12 months, the class B
notes were paid in full, causing credit enhancement for the class
C and D notes to increase to 56.5% and 24.1% from 43.2% and 15.5%
respectively. In addition, recoveries collected have led to an
outstanding principal deficiency of EUR6.1 million being cured
and generate a cash reserve of EUR6.5 million, providing credit
enhancement to the class C, D and E notes.

Payment Interruption Risk Cap
The notes are capped at 'A+sf' as the current level of the
reserve fund does not provide sufficient liquidity to the
transaction to cover for senior expenses and class C interest
according to Fitch Structured Finance and Covered Bonds
Counterparty Rating Criteria.

Class E and F Subordination
The affirmation of the class E and F notes reflects their
subordinated position on the capital structure. A default on the
class E notes is probable due to their low credit enhancement
(3%), which is only provided by the reserve fund. In turn, the
class F notes were initially issued to fund the reserve, which is
currently well below its initial balance of EUR45 million.
Accordingly, Fitch views a default of the class F notes as
inevitable as reflected by the 'Csf' rating.

RATING SENSITIVITIES

The large credit enhancement available to the class C notes makes
the rating fairly resilient to adverse changes in asset
assumptions. For the class D notes an increase of 25% in defaults
could result in a downgrade by up to four notches. A reduction of
25% in recoveries would not have any impact on all the rated
notes.

The class E and F notes' ratings are at a distressed level and
are therefore unlikely to be affected by a further deterioration
of the pool.


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


NOBINA AB: S&P Withdraws 'BB' Long-Term Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings said that it withdrew its 'BB' long-term
issuer credit rating on Sweden-based bus operator Nobina AB at
the issuer's request. At the time of withdrawal, the outlook was
positive.


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


GENUS UK: Seeks Company Voluntary Arrangement to Cut Rents
----------------------------------------------------------
BBC News reports that about 2,000 jobs are under threat as
another high street retailer faces tough trading conditions.

According to BBC, Genus UK, the company that owns Select, a
fashion chain aimed at young women, is seeking a Company
Voluntary Arrangement (CVA) that would allow it to slash rents.

Genus has no plans to close stores, but the proposal includes an
option for landlords to "take back loss-making sites", BBC notes.

Andrew Andronikou -- andrew.andronikou@quantuma.com -- of
business advisory firm Quantuma, which is aiding Genus with the
CVA, said the chain had been hit by the "depressed retail market
and escalating rent and rate charges", BBC relates.

"The loss of anchor tenants on high streets and in smaller
shopping centres has had a downward spiralling effect on stores
such as Select, culminating in a reduction of footfall and
therefore custom," BBC quotes Mr. Andronikou as saying.  "The
position for this business, and many businesses of the same model
is no longer tenable and has escalated to the present situation
where a CVA is considered to be the only option, other than
closing it in its entirety."

Cutting rents is the main aim of the CVA and it was not clear how
many stores the company aimed to close, BBC states.

Genus UK made a loss of GBP1.5 million on sales of GBP81 million
for the year to June 2016, BBC discloses.

Creditors will vote on the CVA proposal on April 13, BBC states.

Mr. Andronikou, as cited by BBC, said Quantuma was "confident"
that creditors would back the proposals to prevent "another brand
disappearing from our high streets"


NEW LOOK: Traders Push for CDS Payouts Following CVA Approval
-------------------------------------------------------------
Luca Casiraghi and Katie Linsell at Bloomberg News report that
traders are pushing for payouts on credit-default swaps linked to
New Look Retail Group Ltd after creditors and landlords approved
a company voluntary arrangement.

According to Bloomberg, the International Swaps & Derivatives
Association's determinations committee was asked on March 22 to
rule if the U.K. insolvency procedure constitutes a bankruptcy
credit event.  That would trigger payouts on the net US$181
million of New Look's senior CDS that were outstanding as of
Feb. 16, Bloomberg relays, citing data on ISDA's website.

New Look has GBP177 million (US$250 million) of senior bonds due
July 2023 that are quoted at 24 pence on the pound, and about
GBP1.1 billion of secured notes, according to data compiled by
Bloomberg.

More than 98% of creditors and landlords approved the CVA on
March 21, allowing the fashion chain to renegotiate debt amid
competition from online retailers, Bloomberg discloses.

New Look Group Limited, through its subsidiaries, operates as a
multichannel retail brand in the United Kingdom and
internationally.  The company offers apparel, footwear, and
accessories for women, men, and teenage girls.  It operates 867
stores, comprising 591 in the United Kingdom and 276
internationally, as well as an e-commerce site under the
newlook.com name serving approximately 120 countries. The company
is based in Weymouth, the United Kingdom. New Look Group Limited
is a subsidiary of Hamperwood Limited.


NEWGATE 2007-2: Fitch Affirms 'CCC' Ratings on Two Note Classes
---------------------------------------------------------------
Fitch Ratings has upgraded Newgate 2007-2's senior notes and
affirmed all tranches of Newgate 2007-1.

The transactions are securitisations of UK non-conforming
mortgages.

KEY RATING DRIVERS

Arrears Falling but Still High
Late-stage arrears (loans that have been delinquent over three
months) have decreased by 1 and 2 percentage points in 2007-1 and
2007-2, respectively, over the last 12 months. However, late-
stage arrears are still at 13.71% and 15.6% of the current
portfolio balances. The improved performance has led to the
upgrades of the senior notes of Newgate 2007-2.

High Share of Interest Only (IO) Mortgages
Both transactions feature a high amount of interest only loans.
The concentration of the IO maturities is sufficiently dispersed
to impose no extra risk on the transaction. There is no
additional risk from large shares of IO loans falling due close
to the legal final maturity of the notes, in case restructuring
or standstill agreements are pursued by the servicer upon loan
maturity.

Interest Rate Basis Mismatch
The notes' coupons are linked to LIBOR whereas the assets are
primarily linked to the Bank of England Base Rate (BBR). As there
is no swap in place, Fitch has applied a haircut to account for
the potential basis risk between BBR and LIBOR. There is
sufficient excess spread and liquidity available in the
transactions to account for this stress.

Pro-Rata Amortisation
Both transactions are currently amortising on a pro-rata basis.
The class A2 notes are redeemed senior to class A3 notes. Fitch
has accounted for this feature in its modelling as it is not
leading to the build-up of credit enhancement over time.
Effective triggers are in place to amortise the notes
sequentially in case of adverse performance, such as late
delinquencies at and above 20% of the outstanding mortgages, or a
non-fully funded reserve fund. In addition during the tail end of
the transactions, amortisation automatically switches back to
sequential. While both transactions have been repaying on a pro
rata basis over the past two years, Fitch's assumptions lead to
sequential amortisation even in the more benign rating scenarios.
Only in a continued positive economic environment will the notes
continue to repay pro rata.

RATING SENSITIVITIES

As a result of the pro-rata amortisation the nominal
subordination for the senior tranches will decrease over time.
Additionally, if reliance on the reserve fund increases
substantially over time it may result in a credit linkage with
the relevant counterparty.

Fitch believes that an unexpected increase in interest rates will
put a strain on borrower affordability, particularly given the
weaker profile of the underlying borrowers in the non-conforming
portfolios, as evidenced by the fairly high level of arrears
despite prevailing low interest rates. If defaults and associated
losses exceed Fitch's stresses, the agency may take negative
rating actions.

Fitch has upgraded and affirmed the following ratings:

Newgate Funding Plc Series 2007-1
Class A2 (XS0287752611) affirmed at 'AAsf'; Outlook Stable
Class A3 (XS0287753775) affirmed at 'AAsf'; Outlook Stable
Class Ma (XS0287755713) affirmed at 'A+sf'; Outlook Stable
Class Mb (XS0287756877) affirmed at 'A+sf'; Outlook Stable
Class Ba (XS0287757255) affirmed at 'BBB+sf'; Outlook Stable
Class Bb (XS0287757412) affirmed at 'BBB+sf'; Outlook Stable
Class Cb (XS0287759624) affirmed at 'BBsf'; Outlook Stable
Class Db (XS0287767304) affirmed at 'B+sf'; Outlook Stable
Class E (XS0287776636) affirmed at 'CCCsf'; Recovery Estimate
(RE) at 100%
Class F (XS0287778095) affirmed at 'CCCsf'; RE at 100%

Newgate Funding Plc Series 2007-2
Class A2 (XS0304279630) upgraded to 'A+sf' from 'Asf'; Outlook
Stable
Class A3 (XS0304280059) upgraded to 'A+sf' from 'Asf'; Outlook
Stable
Class M (XS0304280133) upgraded to 'A+sf' from 'Asf'; Outlook
Stable
Class Bb (XS0304284630) upgraded to 'BBBsf' from 'BBB-sf';
Outlook Stable
Class Cb (XS0304285959) affirmed at 'BBsf'; Outlook Stable
Class Db (XS0304286254) affirmed at 'Bsf'; Outlook Stable
Class E (XS0304280489) affirmed at 'CCCsf'; RE at 100%
Class F (XS0304281024) affirmed at 'CCCsf'; RE at 100%


PRECISE MORTGAGE: Moody's Assigns B3 Rating to Class X Notes
-------------------------------------------------------------
Moody's Investor Service has assigned definitive long-term credit
ratings to Notes issued by Precise Mortgage Funding 2018-2B PLC:

-- GBP 338.9M Class A Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned Aaa (sf)

-- GBP 11.2M Class B Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned Aa1 (sf)

-- GBP 11.2M Class C Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned A2 (sf)

-- GBP 7.5M Class D Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned Baa2 (sf)

-- GBP 5.6M Class E Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned Ba3 (sf)

-- GBP 13.1M Class X Mortgage Backed Floating Rate Notes due
    March 2055, Definitive Rating Assigned B3 (sf)

The static portfolio backing this transaction consists of first
ranking buy-to-let mortgage loans advanced to semi-professional
landlords with small portfolios secured by properties located in
England and Wales. The loans have been originated by Charter
Court Financial Services Limited (not rated) under its trading
name of Precise Mortgages.

RATINGS RATIONALE

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 2.0% and the MILAN required credit
enhancement of 12.0% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

The portfolio expected loss is 2.0%, which is marginally higher
than other comparable buy-to-let transactions in the UK. This is
mainly due to: (i) the originator's limited historical
performance, (ii) the current macroeconomic environment in the
UK, (iii) the low weighted-average seasoning of the collateral of
0.9 years; and (iv) benchmarking with similar UK buy-to-let
transactions.

The portfolio MILAN CE is 12.0%, which is marginally higher than
other comparable buy-to-let transactions in the UK mainly due to:
(i) a weighted average current LTV of 70.9%; (ii) around 89.7% of
the pool being interest-only loans; (iii) the originators'
limited historical performance and (iv) benchmarking with other
UK buy-to-let transactions.

At closing the mortgage pool balance consists of GBP 374.5
million of loans. An amortising reserve fund has been funded
amounting to 1.5% of the aggregate principal amount outstanding
of the rated notes as of the closing date. Within the reserve
fund an amount equal to 1.5% of Class A and Class B Notes
outstanding principal amount is dedicated to provide liquidity to
Class A and Class B Notes. Moreover, the Class A and B Notes
benefit from principal to pay interest mechanism.

Operational Risk Analysis: Charter Mortgages Limited ("CML", not
rated), 100% owned by Charter Court Financial Services Group
Limited (not rated), acts as servicer. In order to mitigate the
operational risk, there is a back-up servicer facilitator,
Intertrust Management Limited (not rated), and Elavon Financial
Services DAC, (Aa2, on review for downgrade/P-1) acting through
its UK Branch, acts as an independent cash manager from close. To
ensure payment continuity over the transaction's lifetime the
transaction documents incorporate estimation language whereby the
cash manager can use the three most recent servicer reports to
determine the cash allocation in case no servicer report is
available.

Interest Rate Risk Analysis: The transaction benefits from a swap
provided by Natixis (A1(cr)/P-1(cr)) acting through its London
Branch. Under the swap agreement during the term of the life of
the fixed rate loans the issuer will pay a fixed swap rate and on
the other side the swap counterparty will pay three-month
sterling Libor. The notional of the swap covers the fixed portion
of the pool under a 0% CPR and 0% default assumption until all
fixed rate loans switch to floating rate.

In addition, approximately 34.2% of the pool comprises floating
rate loans. As these floating rate loans are linked to three-
month LIBOR with the same reset date as the notes, there is no
basis risk mismatch.

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes. In Moody's opinion the
structure allows for timely payment of interest for Class A to D
Notes, ultimate payment of interest on or before the rated legal
final maturity date for Class E and X Notes and ultimate payment
of principal at par on or before the rated final legal maturity
date for all rated notes. Moody's ratings only address the credit
risk associated with the transaction. Other non-credit risks have
not been addressed, but may have a significant effect on yield to
investors.

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

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

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 2.0% to 6.0% of current balance, and the MILAN
CE was increased from 12.0% to 19.2%, the model output indicates
that the Class A Notes would achieve A1 (sf) assuming that all
other factors remained equal. Moody's Parameter Sensitivities
provide a quantitative/model-indicated calculation of the number
of rating notches that a Moody's structured finance security may
vary if certain input parameters used in the initial rating
process differed. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might migrate over time, but rather how the initial rating of the
security might have differed if key rating input parameters were
varied. Parameter Sensitivities for the typical EMEA RMBS
transaction are calculated by stressing key variable inputs in
Moody's primary rating model.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.


PREMIERTEL PLC: S&P Affirms BB (sf) Rating on Class B Bonds
-----------------------------------------------------------
S&P Global Ratings has affirmed its credit ratings on Premiertel
PLC's class A and B notes.

Premiertel is a single-loan transaction secured on five U.K.
office properties let to British Telecommunications PLC (BT;
BBB+/Negative/A-2). The transaction closed in November 2003. Two
of the properties are in England, two in Scotland, and the
remaining property is in Northern Ireland. The properties were
all built between 1998 and 2001. All five properties are
currently let to BT on fully repairing and insuring (FRI) leases,
which expire in 2032.

S&P said, "The affirmations reflect our view on the notes'
creditworthiness and the underlying assets' stable performance.
We continue to believe that the class B notes may experience a
payment default at the class A notes' legal maturity in 2029,
given the continuing deferral of principal payments."

STRENGTHS, CONCERNS, AND MITIGATING FACTORS

Strengths

The portfolio is geographically diverse with good-quality
properties fully let to BT under a long-term FRI occupational
lease structure, with fixed annual rental increases.

The transaction was designed to fully amortize from BT's periodic
rental payments. The loan's maturity date and the leases' expiry
dates are in 2032. The class A notes are scheduled to fully
amortize by 2029, and the class B notes by 2032. Concerns And
Mitigating Factors

The issuer is currently not fully paying the scheduled
amortization payments to the class B notes. This is because the
issuer is paying prior-ranking expenses, which are higher than
originally anticipated, and receives lower-than-anticipated
interest from deposited amounts. As a result, the amount left
available is insufficient to meet the scheduled amortization
payments on the class B notes. However, this does not trigger a
loan or a note payment default.

The transaction does not have a tail period (i.e., a period
between a loan's maturity date and transaction's legal final
maturity date). The tail period enables enforcement action and
recovery on any security prior to legal final maturity if a loan
fails to repay at maturity. As a result, we believe that if the
borrower fails to repay at loan maturity, the class B notes could
default. However, given the long-term horizon, we have given
credit to potential property disposals and the ability to
deleverage the transaction before maturity or an eventual note
event of default.

LOAN OVERVIEW

This is a single-loan transaction secured on five office
properties fully let to BT. BT can sublet unoccupied spaces but
is still responsible for paying the rent.
The transaction allows for the withdrawal of properties from the
portfolio subject to S&P Global Ratings confirming its rating and
the obligor trustee consenting in writing to the withdrawal. The
issuer can also substitute properties, subject to certain
parameters being met. To date, no properties have been
substituted, added, or removed from the transaction.

Loan And Collateral Summary (As Of February 2018)

-- Securitized loan balance: GBP257.0 million
-- Aggregated debt service ratio: 69% Gross operating income:
    GBP22.8 million
-- S&P Global Ratings' Key Assumptions S&P vacancy: 5.0%
-- S&P expenses: 5.0%
-- S&P net cash flow: GBP12.5 million
-- S&P value: GBP129.5 million  Net yield: 9.6%
-- S&P loan-to-value (LTV) ratio (before recovery rate
    adjustments): 198%

S&P said, "Given that the properties are currently exposed to
single-tenant risk, as they are fully let to BT, we have adopted
an alternative analysis, reflecting a vacant possession scenario
for the ratings that are above the rating of the tenant (rating
categories 'A- (sf)' and above), in line with our property
evaluation methodology.

S&P Global Ratings' Key Assumptions (Under S&P's Alternative
Analysis)

-- S&P value: GBP92.7 million  S&P LTV ratio (before recovery
    rate adjustments): 277%

-- Given the stable performance of the underlying assets, S&P's
    Key assumptions are in line with those at S&P's previous
    review.

OTHER ANALYTICAL CONSIDERATIONS

S&P said, "Our analysis also includes a full review of the legal
and regulatory risks, operational and administrative risks,
counterparty risks, and payment structure and cash flow
mechanisms. Our assessment of these risks remains unchanged since
our previous review, and commensurate with the ratings assigned."

RATING ACTIONS

S&P said, "Our ratings on Premiertel's notes address the timely
payment of interest and repayment of principal no later than the
legal final maturity date in August 2029 for the class A notes,
and May 2032 for the class B notes.

"Following our review of the underlying properties, the loan and
transaction's characteristics, and the application of stress
scenarios under our European commercial mortgage-backed
securities (CMBS) criteria, we consider that the available credit
enhancement for the class A notes remains sufficient to absorb
the amount of losses that the underlying property would suffer
under a 'AA' rating stress scenario. We have therefore affirmed
our 'AA (sf)' rating on the class A notes.

"Although we consider the assessed overall leverage for the class
B notes to adequately mitigate the risk of losses from the
underlying loan in higher stress scenarios, our 'BB (sf)' rating
reflects the transaction's payment default risk at the class A
notes' legal maturity and the absence of a period between loan
and note maturity in which repayment could otherwise be funded by
enforcement proceeds. We have therefore affirmed our 'BB (sf)'
rating on the class B notes."

RATINGS LIST

  Class           Rating

  Premiertel PLC
  GBP286.207 Million Fixed-Rate Bonds

  Ratings Affirmed

  A               AA (sf)
  B               BB (sf)


VIRGIN MEDIA: S&P Rates New GBP300MM Sr. Unsec. RFNs 'B'
--------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating and '6' recovery
rating to the proposed GBP300 million senior unsecured
receivables financing notes (RFNs) to be issued by Virgin Media
Receivables Financing Notes II Designated Activity Company. This
company is an orphan special-purpose vehicle (SPV) of Virgin
Media Inc. (BB-/Stable/--), a U.K.-based provider of TV, fixed
broadband, fixed-line telephony, and mobile services in the U.K.
and Ireland.

S&P said, "At the same time, we affirmed our existing 'BB-' issue
rating with recovery rating of '3' (rounded estimate 55%) on the
group's senior secured debt. We also affirmed our 'B' issue
rating with recovery rating of '6' on the group's unsecured
notes, reflecting the notes' structural and contractual
subordination to the senior secured debt.

The proposed notes will mature in April 2023 and will be used to
fund the existing vendor financing program.

In S&P's view, the SPV meets the following conditions:

-- All of its debt obligations are backed by equivalent-ranking
    obligations with equivalent payment terms issued by the
    Virgin Media group (receivables and certain other Virgin
    Media facilities);

-- As a strategic financing entity for Virgin Media, the SPV is
    set up solely to raise debt on behalf of the group; and

-- S&P believes Virgin Media is willing and able to support the
    SPV to ensure full and timely payment of interest and
    principal when due on the debt issued by the SPV, including
    the payment of any expenses of the SPV.

S&P said, "Hence, we rate the debt issued by the SPV at the same
level as the equivalent-ranking debt of Virgin Media and treat
the contractual obligations of the SPV as financial obligations
of Virgin Media.

"The issue rating on the proposed notes is in line with the issue
ratings on the existing RFNs and the senior unsecured debt issued
by Virgin Media, and two notches below our issuer credit rating
on Virgin Media. We understand that the proposed notes will be
structurally senior to the unsecured notes while being junior to
the senior secured debt. The rating on the proposed notes is
therefore constrained by the significant amount of prior-ranking
secured debt, which we estimate to be slightly more than GBP9
billion at the point of default. This compares with an estimated
collateral value available to senior secured creditors of about
GBP5.4 billion, leaving no recoverable value for the RFNs'
lenders.

"Our hypothetical default scenario assumes increased competition
and rising marketing costs. We value Virgin Media as a going
concern given its strong market position in the U.K. and the high
barriers to entry of the telecoms industry."

Simulated default assumptions

-- Year of default: 2022
-- Minimum capex (% average last three years' sales): 6%
-- Cyclicality adjustment factor: Not applicable
-- Operational adjustment: +15% (reflects expected higher
    minimum maintenance capex required at emergence from default,
    as this is a capex-intensive business)
-- Emergence EBITDA after recovery adjustments: GBP1,191 million
-- Implied enterprise value multiple: 6.0x Jurisdiction: U.K.

Simplified waterfall

-- Gross enterprise value at default: GBP7,147 million
-- Administrative costs: GBP357 million
-- Net value available to creditors: GBP6,790 million
-- Priority debt: GBP1,412 million
-- Senior secured debt*: GBP9,131 million
    --Recovery expectation**: 55%
-- Unsecured debt claims*: EUR7,177 million
    --Recovery expectation**: 0%

*All debt amounts include six months of prepetition interest. RCF
assumed 85% drawn on the path to default.
**Rounded down to the nearest 5%.



                            *********

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,
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                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 2018.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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