/raid1/www/Hosts/bankrupt/TCREUR_Public/180427.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, April 27, 2018, Vol. 19, No. 083


                            Headlines


B U L G A R I A

CORPORATE COMMERCIAL: Investbank Inks Deal to Buy Victoria Bank


C R O A T I A

CLUB ADRIATIC: Immo Invest to Acquire Business for HRK54MM


F R A N C E

CASINO GUICHARD-PERRACHON: S&P Alters Outlook to Negative
CCP LUX: S&P Assigns 'B' LT Issuer Credit Rating, Outlook Stable
CMA CGM: S&P Alters Outlook to Positive & Affirms 'B+' ICR


G E R M A N Y

AIR BERLIN: Integration Costs Hit Lufthansa's Q1 Results


I R E L A N D

AVOCA CLO XVIII: Moody's Assigns (P)B2 Rating to Cl. F Notes
CARLYLE GLOBAL 2016-1: Moody's Rates EUR13MM Class E-R Debt (P)B2


I T A L Y

A-BEST 14: DBRS Cuts Class D Notes Rating to BB (high) (sf)
OFFICINE MACCAFERRI: Moody's Changes Ratings Outlook to Stable


K A Z A K H S T A N

BANK OF ASTANA: S&P Lowers Issuer Credit Ratings to 'CCC/C'


N E T H E R L A N D S

NXP SEMICONDUCTORS: Egan-Jones Hikes Sr. Unsecured Ratings to BB+


P O L A N D

GETBACK SA: S&P Suspends 'B/B' Issuer Credit Ratings


R U S S I A

* Moody's: New US Sanctions to Hit Some Russian Debt Issuers


S E R B I A

INDUSTRIJA MASINA: Tafe to Acquire Business for RSD66.8 Million


S P A I N

* S&P Puts Ratings on 213 Spanish RMBS Tranches on Watch Positive


S W I T Z E R L A N D

WEATHERFORD INT'L: Egan-Jones Cuts Sr. Unsec. Ratings to B-


U N I T E D   K I N G D O M

AVATION PLC: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB
BOPARAN HOLDINGS: Moody's Cuts CFR to Caa1, Outlook Stable
GLOBAL ADVENTURE: In Administration, Buyer Sought for Business


X X X X X X X X

* BOOK REVIEW: Competitive Strategy for Healthcare


                            *********



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


CORPORATE COMMERCIAL: Investbank Inks Deal to Buy Victoria Bank
---------------------------------------------------------------
SeeNews reports that Bulgaria's Investbank has signed an
agreement to acquire Victoria Bank for an undisclosed sum, the
administrator of Victoria Bank's bankrupt parent, Sofia-based
Corporate Commercial Bank (Corpbank), said.

"The administrator of Corpbank has signed a framework agreement
with Investbank for the transfer of 100% of Victoria bank's
capital and the entire financial exposure of the bank's sole
owner to Victoria Bank at the agreed price," SeeNews quotes
Corpbank as saying in a statement late on April 16.

The deal is subject to approval by Bulgaria's Commission for
Protection of Competition, SeeNews notes.

According to SeeNews, under the agreement, Sofia-based Investbank
will fully repay the exposure of Corpbank to Victoria Bank along
with the interest due at the date of the transaction.

In June 2014, Corpbank finalized the purchase of Credit
Agricole's local unit and renamed it to Victoria Commercial Bank,
SeeNews recounts.  However, later that month Corpbank was hit by
a run on deposits, prompting Bulgaria's central bank to place it
and Victoria Bank under conservatorship, suspending all payments,
SeeNews relates.

According to SeeNews, in November 2017, the administrator of
Corpbank said that Sofia-based Bulgarian American Credit Bank
(BACB) and Investbank have submitted binding offers for the
purchase of 100% of Victoria Bank.

In March 2018, the central bank said it has issued preliminary
approvals to Investbank and BACB to purchase Victoria Bank,
adding that the strategy of each of the two bidders envisages
absorbing Victoria Bank within six months after the acquisition
is complete, SeeNews relays.

                About Corporate Commercial

Corporate Commercial Bank AD is the fourth largest bank in
Bulgaria in terms of assets, third in terms of net profit, and
first in terms of deposit growth.

Bulgaria's central bank placed Corpbank under its administration
and suspended shareholders' rights in June 2014 after a run
drained the bank of cash to meet client demands.


=============
C R O A T I A
=============


CLUB ADRIATIC: Immo Invest to Acquire Business for HRK54MM
----------------------------------------------------------
SeeNews reports that Croatia's centre for enterprise
restructuring and privatisation, CERP, said on April 11 Swiss
company Immo Invest Partner has signed a deal to buy state-owned
tourism company Club Adriatic for HRK54 million (US$9
million/EUR7.3 million).

According to SeeNews, under the terms of the agreement, Immo
Invest Partner will take control of the entire capital of Club
Adriatic, CERP said in a statement.

In December, CERP said the Swiss company lodged the sole binding
bid in the tender for the sale of 100% shareholding interest in
Club Adriatic, SeeNews relates.

Since October 10, 2014 Club Adriatic has been in a pre-bankruptcy
procedure, which is currently at standstill because of
administrative disputes, SeeNews discloses.


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


CASINO GUICHARD-PERRACHON: S&P Alters Outlook to Negative
---------------------------------------------------------
S&P Global Ratings revised to negative from stable its outlook on
France-based international retailer Casino Guichard-Perrachon
S.A. (Casino or the group). At the same time, S&P affirmed its
'BB+/B' long- and short-term issuer credit ratings on Casino.

S&P said, "We also affirmed our issue level ratings on Casino's
senior unsecured notes of 'BB+'. The recovery rating on these
notes is '4', indicating our expectation of average (30%-50%,
rounded estimate 45%) recovery in the event of a payment default.

"Additionally, we affirmed the issue-level rating on Casino's
hybrids of 'B+', reflecting the three-notch difference from the
long-term issuer credit rating.

"Our outlook revision mainly reflects Casino's high debt, with
leverage remaining higher than we had expected for the second
year in a row.

The company's reported net financial debt on its balance sheet,
excluding assets classified as held for sale under IFRS 5, at
end-2017 was EUR866 million higher than the year before, taking
it to EUR5.3 billion. This increase has mostly occurred at the
group's French operations (EUR4.1 billion at end-2017 from EUR3.3
billion in 2016). S&P views this as significant because the bulk
of the group's debt is already concentrated in France.

The debt increase is mainly from increased working capital,
continued restructuring charges, and financial investments. The
group's cash generation for 2017 was very weak due, in
particular, to sizable and unexpected working capital movements
of close to EUR1 billion: working capital moved to minus EUR336
million, from positive EUR640 million the year before.

Contrary to this material increase in debt, S&P had expected
ongoing deleveraging. Following the disposal of its Asian
operations for over EUR4 billion, the group had reduced gross
debt by around EUR2.5 billion through bond buybacks, redemptions,
and the exercise of call options on a convertible bond during
2016 and up to the first quarter of 2017.

S&P said, "We also factor into our ratings the weakness of
Casino's financial profile and the curtailment of its financial
flexibility as a result of significant debt at the holding
companies above Casino. This creates a need for material dividend
distributions from Casino, even in periods of stress and weak
operating performance, to enable the holding companies to service
their debt.

"The rating affirmation, however, reflects our expectation that
the company's financial metrics may improve in 2018 on the back
of management's targeted efforts to focus on improving working
capital to at least in line with previous years. In our base
case, we also assume that the group will dispose of its Brazilian
electronics business Via Varejo this year. Based on estimated
valuation in March 2018, approximately EUR1.2 billion of sales
proceeds could be received by Casino's Brazilian subsidiary GPA.
This could reduce debt by about EUR400 million at the group
level, given Casino's 33.4% ownership of GPA. That said, we had
initially expected this disposal to happen in 2017."

The group's top line performed well, with organic growth of 3.2%.
Profitability has been resilient, particularly when compared to
other large rated food retail peers with operations in France,
such as Carrefour and Auchan. Casino reported 20% growth in
consolidated trading profits, to EUR1,242 million, stemming from
both France and Brazil. Excluding property development, retail
trading profits in France increased by 10% to EUR463 million.
Latam was a mixed picture with Exito's profitability declining
due to the economic slowdown but GPA, the group's main Latam
subsidiary, helped boost the group's trading profit by 11.3% to
EUR515 million, before taking into account the favorable impact
of tax credits.

Casino benefits from a well-established position in the French,
Brazilian, and Colombian food retail markets. It has developed
diversified store concepts, with a presence in both premium and
discount segments. Following Casino's disposal of its Asian
business and the anticipated disposal of its Brazilian
electronics business, France accounts for one-half of Casino's
consolidated revenues and we believe this remains a key driver of
the group's profits and cash flows.

Persistent and high competition weighs on Casino's French
operations. Like other food retailers such as Carrefour S.A. and
Groupe Auchan S.A., Casino is exposed to France's competitive
market. While Casino's business model benefits from comparatively
higher format diversity and lower exposure to hypermarkets than
these peers, it also invested in its pricing strategy,
particularly in its GÇant hypermarket chain and Leader Price
discount supermarket. Positively, Casino's premium and
convenience formats in France--where it has a leading position--
are less exposed to pricing pressure, in our opinion.

S&P said, "In our view, Casino's recent alliances and
partnerships with Auchan, Amazon, and Ocado will be beneficial
for the group. The joint purchasing alliance with Auchan and
Systeme U will cover about 32% of the French food market. This is
the second most powerful retailer alliance globally (behind
Walmart), with almost EUR200 billion of purchasing power. The
alliance should moderately benefit margins and working capital
from financial 2019 onward. The partnership with Amazon in France
for last-minute and smaller food orders for an express two hour
delivery service, and Ocado for next-day large shopping baskets,
will also bolster the group's market position in the nascent but
fast growing e-commerce food market in France.

"We anticipate 2018 to be more favorable for Latam businesses,
particularly in Brazil, on the back of a slow economic recovery.
The group should continue to benefit from its cash & carry
business, Assai, which has grown significantly on the back of
conversion from hypermarkets. However, this inherently implies
lower margin expectations for Brazil, in our view. That said, the
continued focus on cost management, together with easing food
price deflation, should partly offset the impact of lower
margins. Increasing contribution from premium formats would also
somewhat help the group stem margin pressures."

The following assumptions underpin S&P Global Ratings' base-case
scenario for Casino:

-- GDP growth of 2.2% in France, with inflation of 1.4% in 2018.
    In France, S&P expects strong domestic demand and a rebound
    in global trade. Reforms and government investment would also
    spur in economic activity, reduce unemployment, and in turn
    help boost consumer spending.

-- In the next few months, the French government may adopt a
    proposed law imposing a minimum gross margin of 10% for each
    food item and put a cap on promotions by food retailers. If
    adopted, the law would ease competitive pressures on prices
    for certain product categories. S&P considers that ongoing
    price competition and competitive activity would curtail any
    meaningful upside in our forecasts.

-- S&P said, "We expect Brazil's economy to post strong growth
    of 2.4% in 2018, after some volatility over the past few
    years. After three years of poor macroeconomic conditions
    that pressured retailers' top line and margins, we expect
    improved labor market conditions, benign inflationary
    pressures, and lower domestic interest rates, combining to
    strengthen household spending in Brazil. We have seen falling
    food prices in 2017, triggered by a record agricultural
    harvest. We expect inflation to pick up somewhat in 2018 and
    2019 from record low 3% in December 2017, as the economy
    strengthens, but to remain around 3.5%."

-- Colombia and Argentina should grow real GDP in excess of 2.5%
    over 2018 and 2019 while Uruguay is expected to post real GDP
    growth of over 3% during this period. S&P's real GDP growth
    forecast for Latin America is 2.7% in 2018 and 2.8% in 2019.

-- The above macroeconomic conditions, together with the store
    development plans, should support the top line. Ultimately,
    however, reported revenue growth will remain closely linked
    to foreign exchange rates, in particular the Brazilian real.
    S&P forecasts revenue growth rates of about 1%-2% over 2018
    and 2019.

-- A moderate pick-up in margins of about 10-20 basis points
    (bps) in France for 2018 and 2019, subject to execution. This
    margin improvement will stem from cost savings and gains from
    the group's proposed purchasing alliance with Auchan, with
    the gains realized in margins from 2019 onward; the transfer
    of some more underperforming stores to franchisees; and a
    reduction in restructuring charges.

-- That said, in S&P's view, French food retail will remain
    extremely competitive and it will be challenging for Casino
    to improve profits significantly as it continues to
    reposition itself in a very competitive market. Rising input

    costs could also offset gains in margins.

-- S&P anticipates stable to moderately lower (about 10 bps)
    EBITDA margins in Brazil, reflecting cost management efforts
    and higher-than-inflation like-for-like growth in the cash &
    carry business, offsetting a reduction in gross margins.
    Store level efficiencies and a decline in food deflation in
    Brazil would also help preserve margins in the face of
    increasing contribution of cash & carry business.

-- S&P assumes EBITDA margins to remain broadly stable in
    Colombia in 2018 amid a decline in inflation and continued
    cost pressures, partly offset by cost savings and commercial
    negotiations.

-- High recent restructuring charges should reduce substantially
    over 2018 following significant progress in the group's
    market repositioning, especially in France.

-- No further changes to the group structure other than the
    anticipated disposal of the Via Varejo electronics business
    in Brazil.

-- Accordingly, S&P anticipates growth in consolidated reported
    EBITDA in 2018 due to improved margins in France and
    supported by S&P's expectation of slightly lower
    restructuring costs and one-off items in 2018.

-- Disposal of Brazilian electronics business Via Varejo this
    year. Based on estimated valuation in March 2018,
    approximately EUR1.2 billion of sales proceeds could be
    received by Casino's Brazilian subsidiary GPA, which could
    translate to debt reduction of about EUR400 million at the
    group level taking into account Casino's 33.4% ownership of
    GPA.

-- Targeted efforts to focus on working capital efficiency
    following the significant outflow in 2017.

-- A credit-supportive financial policy that balances capex
   (EUR1 billion annually) and shareholder returns (EUR450
    million to EUR500 million) with a focus on debt reduction.

Based on these assumptions, S&P expects the following adjusted
credit metrics for the group over 2018 and 2019:

-- On a consolidated basis, 3.0x-3.4x from 3.2x at year-end
    2017.

-- On a proportional basis, 3.7x-4.3x in 2018 and 3.5x-4.3x in
    2019 from 4.4x at year-end 2017.

-- Despite improved cash flows, S&P forecasts that the
    consolidated FOCF to debt and DCF to debt ratio will continue
    to remain weak at below 10% and 5% respectively.

In addition to operational performance and drivers, the above
forecasts are also subject to the timing and extent of execution
of a range of operational and financial policy measures such as
disposals and working capital efficiencies, which management has
committed to implement to reduce debt.

The negative outlook reflects continued high leverage beyond
S&P's expectations for the rating level. Despite management's
commitment to reduce debt and improve profitability, intense
competition in the France, slow economic recovery in Brazil, and
weak cash flow generation in relation to high debt levels amplify
execution risks, and increase the likelihood that the group's
leverage on a proportional consolidation basis may remain higher
than 4x over the next 12 months.

The outlook also factors in the extreme competitive pressures in
the French food retail market and generally weak although
improving macroeconomic conditions in Brazil, combined with rapid
changes in customer behaviors, which are forcing retailers to
adapt their business models to preserve market position and
profitability.

S&P could lower the ratings if management is unable to reduce
debt on back of improved cash generation through working capital
improvements and disposals.

Downside rating pressure could also arise from a decline in
profitability due to weaker operating performance in either
France or Brazil or if the group is unable to execute effectively
or realize cost savings in a very competitive market. This would
be demonstrated by weak top-line performance or a decline in
market share, and no improvement in adjusted EBITDA margin
despite the group's various strategic and cost management
initiatives.

In such a scenario, adjusted debt to EBITDA on a proportional
basis will remain at more than 4x, without any meaningful
improvement in DCF at the French operations.

S&P said, "We could also consider a negative rating action if
management deploys cash for purposes other to reduce the gross
debt, such as substantial shareholder distribution or
acquisitions.

"We could revise the outlook to stable if the group successfully
executes its plans to improve its profitability and reduces debt
through working capital efficiencies and disposals."

This scenario would also see revenue and earnings growth at its
French operations while improving the profitability of its
Brazilian operations, and also a reduction in the adjusted debt-
to-EBITDA ratio (based on proportional consolidation of partly-
owned subsidiaries) below 4x on a sustainable basis.


CCP LUX: S&P Assigns 'B' LT Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit
rating to France-based CCP Lux Holding S.a.r.l. (Axilone). The
outlook is stable.

S&P said, "We also assigned our 'B' issue and '3' recovery
ratings to the EUR290 million equivalent senior secured term loan
B. The recovery rating indicates our expectation of meaningful
(50%-70%; rounded estimate: 50%) recovery of principal in the
event of payment default.

"We also assigned our 'CCC+' issue and '6' recovery ratings to
the EUR80 million second-lien facility due 2025. The recovery
rating indicates our expectation of negligible (0%-10%; rounded
estimate 0%) recovery.

"The ratings are in line with the preliminary ratings we assigned
on Jan. 18, 2018."

The rating reflects Axilone's position as a leading player in a
premium niche within the fragmented cosmetic packaging market, as
well as its technical expertise, product innovation, strong
EBITDA margins, longstanding relations with large luxury brands,
and high customer retention rates. S&P's assessment also reflects
the group's smaller size, narrow manufacturing footprint,
significant customer concentration, and significant foreign
exchange (FX) exposure (mainly U.S. dollar to euro and euro to
renminbi). Although most of its framework agreements do not allow
for the automatic pass-through of raw material price increases to
customers, the company negotiates these on a case-by-case basis.

S&P said, "Our base-case assumptions for Axilone have not changed
materially since we assigned the preliminary rating on Jan. 18,
2018. We assess Axilone's financial risk profile as highly
leveraged, reflecting our view that it will maintain leverage of
above 5.0x in the near term. We estimate that S&P Global Ratings-
adjusted leverage will amount to 6.3x in December 2018 and that
it will have minimal free cash flow generation in the near term.
Free operating cash flow (FOCF) to debt is expected to remain
below 5% throughout 2018 and 2019.

"The stable outlook reflects our expectation that Axilone will
continue to capitalize on its solid client relationships and
leading niche position in its main markets. We anticipate that
Axilone's revenues and EBITDA will increase modestly in the near
term at about 3% a year and that FOCF to debt will remain modest
at below 5% due to ongoing expansionary capital investments in
China and Europe. In the next 12 months, we expect that adjusted
net leverage will remain around 6.3x and FFO to debt about 9%.
We could raise the rating if Axilone showed steady earnings and
EBITDA growth while retaining robust credit measures. For
example, we would expect to see leverage approaching 5.0x, FFO to
debt of at least 12%, and positive operating cash flows. An
upgrade would also be contingent on the company and owner
committing to maintaining a conservative financial policy that
would support such improved ratios.

"We could lower the rating if Axilone experienced unexpected
customer losses or margin pressures due to adverse FX movements
or raw material price increases, which it could not pass on to
customers. We could also lower the rating if the company's
financial policy became more aggressive, especially with regards
to shareholder remuneration, preventing any material deleveraging
and resulting in a material decline in EBITDA margins, negative
FOCF, or liquidity coverage below 1.0x. We could also lower the
rating if the debt to EBITDA ratio deteriorated, rising above
7.0x."


CMA CGM: S&P Alters Outlook to Positive & Affirms 'B+' ICR
----------------------------------------------------------
S&P Global Ratings revised its outlook on France-based container
liner CMA CGM S.A. to positive from stable and affirmed its 'B+'
issuer credit rating on the company.

S&P said, "We also affirmed our 'B-' issue rating on the
company's senior unsecured debt. The recovery rating remains '6',
reflecting our expectation of negligible recovery in the 0%-10%
range (rounded estimate 0%) in the event of payment default.

"The outlook revision reflects our belief that significant
consolidation in the container liner industry could help CMA CGM
to achieve less volatile profits through the industry cycle and
to sustainably improve its credit measures to be commensurate
with a higher rating. We also factor in the company's ability to
continue reducing cost per container transported, as demonstrated
by a strong track record of overachieving cost-reduction targets
in the past few years.

"In our view, the industry's consolidation has led to a
structural change in container liner's competitive landscape such
that the combined share of the top-five players has risen to
around 65% this year from 30% about 15 years ago. In the past two
years, we have noted signs of lower volatility in the industry's
average freight rates than in previous years, which could be a
sign of more reactive capacity management and which we would
normally expect from a more concentrated industry. During the
next 12-18 months -- after the most recent acquisitions and
mergers have been integrated, shipping networks and customer
platforms aligned, and cost synergies realized -- we expect to
see whether consolidation in the container industry, with
capacity management decisions now in hands of fewer players,
translates into more sustained profitability. In our base case,
we assume that, notwithstanding the consolidation, the container
liner industry will remain volatile because of its asset-intense,
operating leverage-heavy, and network-based nature. Nevertheless,
cyclical swings could be less pronounced and of shorter duration,
and mid-cycle freight rates could trend above the operating cost
breakeven.

"As a result, we now believe that potential fluctuations in CMA
CGM's EBITDA and return on capital will be likely lower, and have
revised our assessment of the company's business risk to fair
from weak. That said, we acknowledge that a risk of
destabilization remains, with a background of historically
aggressive capacity management by the largest players, which
weighs on the possibility of CMA CGM's upgrade at this time.

"Furthermore, given the inherent volatility of the container
liner industry and associated swings in earnings and cash flow,
we consider that CMA CGM's continued prudent treasury management
and maintenance of ample liquidity headroom are critical and
stabilizing credit-quality factors. This included $1.3 billion
availability under revolving credit facilities (RCFs) and $1.3
billion in cash on hand as of Dec. 31, 2017.

As a third-largest player in the industry in terms of capacity,
CMA CGM benefits from a large, young, and diverse fleet, and
strong customer diversification. CMA CGM operates services
globally through a broad and strategically located route network
that helps it ride out regional downturns. That said, the rating
on CMA CGM continues to be constrained by the container shipping
industry's high risk; the company's heavy exposure to
fluctuations in bunker fuel prices; and its low short-term
flexibility to adjust its operating cost base to falling demand
and freight rates.

Although the overall supply-and-demand conditions have shifted in
favor of ocean carriers, with trade volume growth likely
outpacing fleet growth in 2018 and in 2019, we remain cautious on
the freight rates' outlook, forecasting a flat average freight
rate for CMA CGM. S&P notes significant deliveries of ultra-large
containerships scheduled in 2018 and 2019, which it believes pose
a threat to the recent rebound in freight rates, in particular on
the company's main Asia-Europe lane (a home for mega-
containerships), despite the likely favorable supply-and-demand
industry balance in general. S&P also expects that the increase
in bunker (fuel to run ships) cost will hinder container liners'
profitability this year.

S&P said, "In our base case, we do not assume that CMA CGM will
be able to pass through the increase in bunker expenses, which we
expect to increase by 20% in 2018. As a result, we forecast a
decline in CMA CGM's reported EBITDA to $1.75 billion-$1.80
billion this year (from $2.20 billion in 2017), before returning
to about $2.2 billion in 2019. This assumes a decrease of about
10% in bunker costs linked to our estimates for crude oil prices
in 2019 and efficiency improvements that will lower the average
cost per container transported. Consequently, we project that CMA
CGM will achieve S&P Global Ratings-adjusted ratio of funds from
operations (FFO) to debt of 14%-15% in 2018, improving to 17%-18%
in 2019.

"The positive outlook reflects a one-in-three likelihood that we
could upgrade CMA CGM over the next 12 months.

"We could raise the rating if we considered that the industry
consolidation and the company's cost reductions will enable CMA
CGM to achieve less volatile profits through the industry cycle
and will support a sustained improvement in CMA CGM's FFO to debt
to more than 17% by 2019 (following a likely moderate decline in
EBITDA in 2018). Furthermore, we consider CMA CGM's maintainance
of largely stable adjusted debt position and adequate liquidity
(including an ample headroon under the gearing ratio covenant) to
be a critical factor in an upgrade.

"We would revise the outlook to stable if CMA CGM's earnings
weakened below our base case, due to, for example, lower freight
rates than we anticipate or a larger surge in bunker prices than
we factor into our base case that CMA CGM was unable to pass on
to its customers via freight rates or counterbalance by a
significant reduction of unit costs. This would preclude CMA CGM
from achieving credit measures commensurate with a 'BB-' rating.
An outlook revision to stable would also be likely if we noted
any deviations in terms of investment strategy resulting in debt
increasing beyond our base case."


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G E R M A N Y
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AIR BERLIN: Integration Costs Hit Lufthansa's Q1 Results
--------------------------------------------------------
Josh Spero at The Financial Times reports that German airline
group Lufthansa drastically missed analysts' expectations for its
first-quarter results on April 26, blaming one-off costs in its
integration of parts of bankrupt Air Berlin.

The company generated revenues of EUR7.64 billion in the quarter,
down from EUR7.69 billion in the same period in 2017 and far
below analysts' consensus of EUR8.15 billion, the FT discloses.

Its net loss was EUR57 million, better than a EUR68 million loss
in the same quarter last year, and its adjusted profit rose from
EUR25 million to EUR26 million, the FT states.

According to the FT, the adjusted operating loss in the group's
low-cost Eurowings airline, which is absorbing Air Berlin, grew
from EUR132 million to EUR201 million, and the group said:
"One-off expenses will continue to burden unit cost trends at
Eurowings in the months ahead."  Unit costs in Eurowings,
excluding fuel and currency, rose 7.6% on the year while capacity
increased 29 per cent thanks to the Air Berlin acquisition, the
FT notes.

                       About Air Berlin

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

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

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

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

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


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AVOCA CLO XVIII: Moody's Assigns (P)B2 Rating to Cl. F Notes
------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Avoca CLO
XVIII Designated Activity Company (the "Issuer" or "Avoca CLO
XVIII"):

EUR236,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR36,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

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

EUR24,800,000 Class C Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

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

EUR22,400,000 Class E Deferrable Junior Floating Rate Notes due
2031, Assigned (P)Ba2 (sf)

EUR11,600,000 Class F Deferrable Junior Floating Rate Notes due
2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

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

Avoca CLO XVIII is a managed cash flow CLO. At least 96% of the
portfolio must consist of senior secured loans and senior secured
floating rate notes and up to 4% of the portfolio may consist of
unsecured loans, second-lien loans, mezzanine obligations and
high yield bonds. The portfolio is expected to be approximately
60-70% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

KKR 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 and a half-year
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of 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 EUR 43.05m 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.


CARLYLE GLOBAL 2016-1: Moody's Rates EUR13MM Class E-R Debt (P)B2
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Carlyle
Global Market Strategies Euro CLO 2016-1 Designated Activity
Company (the "Issuer" or "Carlyle Euro CLO 2016-1 DAC"):

EUR3,000,000 Class X Senior Secured Floating Rate Notes due 2031,
Assigned (P)Aaa (sf)

EUR269,700,000 Class A-1-R Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR20,500,000 Class A-2-A-R Senior Secured Floating Rate Notes
due 2031, Assigned (P)Aa2 (sf)

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

EUR29,500,000 Class B-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR21,900,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa2 (sf)

EUR30,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR13,000,000 Class E-R 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 endeavor
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 2031. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, CELF Advisors LLP
("CELF Advisors"), has sufficient experience and operational
capacity and is capable of managing this CLO.

The Issuer will issue the Class X Notes, Class A-1-R Notes, Class
A-2-A-R Notes, Class A-2-B-R Notes, the Class B-R Notes, the
Class C-R Notes, the Class D-R Notes and the Class E-R Notes (the
"Refinancing Notes") in connection with the refinancing of the
Class A-1 Senior Secured Floating Rate Notes due 2029, the Class
A-2 Senior Secured Floating Rate Notes due 2029, the Class B
Senior Secured Floating Rate Notes due 2029, the Class C Senior
Secured Deferrable Floating Rate Notes due 2029 and the Class D
Senior Secured Deferrable Floating Rate Notes due 2029, and the
Class S-2 Subordinated Notes due 2029 ("the Refinanced Notes"),
previously issued on May 17, 2016 (the "Original Issue Date").
The Issuer will use the proceeds from the issuance of the
Refinancing Notes to redeem in full the Original Notes that will
be refinanced. On the Original Issue Date, the Issuer also issued
EUR 22,000,000 of unrated S-2 Subordinated Notes, which will
remain outstanding and unrated along with the newly issued EUR
19,000,000 Additional Class S-2 Subordinated Notes. Following the
issuance of the Refinancing Notes, the minimum target par amount
of the portfolio will increase from EUR 400,000,000 to EUR
435,000,000.

Carlyle Euro CLO 2016-1 DAC is a managed cash flow CLO. At least
96.0% of the portfolio must consist of senior secured loans and
senior secured bonds and up to 4.0% of the portfolio may consist
of unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to
Carlyle Euro CLO 2016-1 DAC to hold bonds. The portfolio is
expected to be approximately 92% ramped up as of the closing date
and to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe.

CELF Advisors 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 4.5-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations, and are subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will have issued a total of EUR41.0M 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. CELF Advisors' investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

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

Par amount: EUR 435,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2950

Weighted Average Spread (WAS): 3.30%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.5 years.

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum 10% of the pool would be domiciled in
countries with A3. The remainder of the pool will be domiciled in
countries which currently have a local currency country risk
ceiling of Aaa or Aa1 to Aa3.

Stress Scenarios:

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

Change in WARF: WARF + 15% (to 3393 from 2950)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

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

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

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

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

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

Percentage Change in WARF: WARF +30% (to 3835 from 2900)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

Class A-2-A-R Senior Secured Floating Rate Notes: -3

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

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

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

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

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


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


A-BEST 14: DBRS Cuts Class D Notes Rating to BB (high) (sf)
-----------------------------------------------------------
DBRS Ratings Limited took the following rating actions on Asset-
Backed European Securitization Transaction Fourteen S.r.l. (A-
BEST 14) following an amendment to the transaction (the
Amendment):

-- Class A Asset-Backed Fixed Rate Notes (Class A Notes)
     downgraded to AA (sf) from AAA (sf).

-- Class B Asset-Backed Fixed Rate Notes (Class B Notes)
     downgraded to A (sf) from AA (sf).

-- Class C Asset-Backed Fixed Rate Notes (Class C Notes)
     downgraded to BBB (high) (sf) from A (sf).

-- Class D Asset-Backed Fixed Rate Notes (Class D Notes)
     downgraded to BB (high) (sf) from BBB (high) (sf).

-- Assigned a B (sf) rating to the newly issued Class E Asset-
     Backed Fixed Rate Notes (Class E Notes).

-- Assigned a BBB (high) (sf) rating to the Commingling Reserve
     Facility (CR Facility).

The Rated Notes are the Class A, B, C, D, and E Notes. The Notes
are the unrated Class M1 and M2 Notes along with the Rated Notes.

The rating actions follow the review of the Amendment, executed
on April 12, 2018, and settled on April 16, 2018 (also the Second
Re-tranching Date), and are based on the following analytical
considerations:

-- Portfolio performance in terms of delinquencies and defaults.

-- Probability of Default (PD) and Recovery Rate (RR)
    assumptions for the remaining collateral pool.

-- The credit enhancement (CE) available to the Notes to cover
     the expected losses at their respective rating levels.

-- The structural amendments involved.

A-BEST 14, which closed in May 2016, is a securitization of
portfolio of Italian auto loans originated and serviced by FCA
Bank S.p.A. (FCA Bank), a joint venture that is 50% owned by Fiat
Group and 50% owned by Credit Agricole Consumer Finance.

The Amendment includes:

-- The increase of the portfolio size through additional notes
     subscriptions.

-- The re-tranching of the Class A, B, C, and D Notes and the
     issuance of the Class E Notes.

-- The reduction of the Class A, B, C, D, and M1 Notes fixed-
    rate coupons to 0.40%, 0.75%, 2.50%, 3.43%, and 7.17%,
    respectively, along with the 4.64% fixed-rate coupon on the
    Class E Notes.

-- The extension of the Revolving Period to May 2020.

-- The increase of the Cash Reserve and the Commingling Reserve.

-- The change in the priority of the CR Facility interest
     payment.

-- The change in the Cumulative Portfolio Limits.

-- The change in the Purchase Termination Event, in terms of the
     reductions in the Three-Month Rolling Average Delinquency
     Rate and Gross Cumulative Default Ratio thresholds.

On March 24, 2018, the size of the portfolio increased to EUR
1.65 billion. On the Second Re-tranching Date, the issuance of
the Class E Notes and the additional subscriptions along with re-
tranching of the Notes took place to purchase the additional
receivables. Following the re-tranching, the size of the Class A
and D Notes increased, while the size of the Class B, C, and M1
Notes decreased. The size of the Class E Notes issuance was EUR
18.2 million. The transaction portfolio will continue to revolve
until the payment date falling in May 2020.

Both the Cash Reserve and the Commingling Reserve amounts
increased following the upsize of the portfolio. The Cash Reserve
amount remained at 1.4% of the portfolio balance, and increased
to EUR 23.1 million from EUR 15.4 million. The Commingling
Reserve amount, funded by FCA Bank, the Commingling Reserve
Facility Provider, remained at 3.5% of the portfolio balance
during the Revolving Period, and increased to EUR 57.8 million
from EUR 38.4 million. The fixed interest rate paid to the
Commingling Reserve Facility Provider on the Commingling Reserve
commitment amount was decreased to 1% from 2%. The priority of
this interest payment was changed to after the interest payment
of the Class C Notes from after the Class D Notes.

In terms of the amendments to certain Cumulative Portfolio
Limits, the new limits on the total Net Present Value (NPV) of
the receivables, as a percentage of total NVP of the receivables
sold to the transaction, for the purchase of used car, for the
VAT borrowers, for borrowers residing in southern Italy, and with
the payment method by Postal Payment Slip and SISAL Payment Slip
are 16%, 20%, 35%, and 15%, respectively.

PORTFOLIO PERFORMANCE AND ASSUMPTIONS

Prior to the Second Re-tranching Date, the portfolio performance
was within DBRS's expectations. The percentage of loans in
arrears was low and the cumulative default rate was low at 0.2%.

DBRS received the updated monthly static default data in three
categories: new vehicle loans, new vehicle loans (VAT borrowers)
and used vehicle loans ranging from 2008 to 2017. Data is grouped
into vintages by the date of origination of the loan. All vintage
data is used to extrapolate and derive the overall base-case
default rate in each category. Because of the revolving period,
no seasoning credit was factored into the base-case default rate
projection as the degree of seasoning is expected to evolve over
time. DBRS determined the most stressed portfolio composition
based on the amended used car Cumulative Portfolio Limits, and
updated its base-case default rate assumption to 3.03% from
3.08%.

DBRS also received the updated monthly static recovery data on
the FCA Bank loan portfolio from 2008 to 2017, grouped into
vintages based on the date of the loans classified as defaulted.
The data of each vintage was used to determine the base-case
recovery rate according to the relevant DBRS methodology. After
considering the quality and trend of data, DBRS constructed base
cases for each receivables type and updated the ultimate recovery
rate to 12.9% (i.e., loss severity of 87.1%) from 13.0% for all
loan types.

CREDIT ENHANCEMENT

The CE available to the Class A, B, C, and D Notes have reduced
following the re-tranching, resulting in the downgrades of those
Notes. The CE of the Class A Notes reduced to 10.0% from 16.3%,
the CE of the Class B Notes reduced to 7.0% from 11.7%, the CE of
the Class C Notes reduced to 5.0% from 7.8%, and the CE of the
Class D Notes reduced to 2.4% from 4.8%. The CE of the Class E
Notes is 1.3%. The main source of CE is the subordinated Notes.
The Cash Reserve will provide credit support to the transaction
with any outstanding amount being distributed as principal to the
Notes on a payment date when, including the Cash Reserve, the
Class A, B, C, and D Notes can all be redeemed in full, or on the
final maturity date.

Elavon Financial Services DAC, U.K. Branch (Elavon UK) is the
Account Bank to the transaction. Elavon UK has a private DBRS
Issuer and Senior Debt rating, along with an "A" replacement
rating trigger set in the transaction documentation that meets
the Minimum Institution Rating criteria given the AA (sf) rating
assigned to the Class A Notes.

COMMINGLING RESERVE FACILITY

The CR Facility was funded by FCA Bank. The funds are deposited
with the Account Bank and the Issuer pays a fixed 1% interest on
the balance of the CR Facility to FCA Bank through the Pre-
Trigger Notice Interest Priority of Payments after the Class C
Notes interest payment and before the Class D Notes interest
payment or through the Post-Trigger Notice Priority of Payments
after the Class C Notes are repaid in full.

The CR Facility balance does not amortize during the
transaction's Revolving Period. After the Revolving Period, the
CR Facility balance will amortize to the lower of EUR 57.8
million and the scheduled collections for the following
collection period assuming a 15% conditional prepayment rate. The
amortized CR Facility amount will be paid back to FCA Bank
outside of the transaction's priority of payments. The CR
Facility target balance will reduce to zero when Class A, B, and
C are fully repaid. The CR Facility could only be drawn when FCA
Bank is insolvent resulting in no transfer of the borrower
collections to the Issuer or no indemnification in an Insurance
Event.

To determine the rating of the CR Facility, DBRS considered the
credit qualities of FCA Bank, the Account Bank where the funds
are deposited, the Class C Notes, and the Class D Notes to assess
the likelihood of a facility drawing and timely interest
payments. Following the analysis, DBRS deemed FCA Bank and the
Class C Notes to be the main rating factors, and assigned a BBB
(high) (sf) rating to the Commingling Reserve Facility.

Notes: All figures are in euros unless otherwise noted.


OFFICINE MACCAFERRI: Moody's Changes Ratings Outlook to Stable
--------------------------------------------------------------
Moody's Investors Service has changed the outlook on global
environment engineering company Officine Maccaferri S.p.A.
(Maccaferri) to stable from negative. All ratings, including the
B3 corporate family rating (CFR), the B2-PD probability of
default rating (PDR) and the B3 senior unsecured rating assigned
to Officine Maccaferri's EUR200 million (outstanding EUR190
million) worth of senior notes due in 2021 were affirmed.

"The outlook stabilization reflects the recovery in Officine
Maccaferri's operating performance during 2017 as a result of
improved trading conditions -- especially in Western Europe,
India and the US -- that allowed to compensate for the still-
missing contribution from Brazil, which has been traditionally a
key market for Maccaferri", says Giuliana Cirrincione, Moody's
lead analyst for Officine Maccaferri. "We expect global
macroeconomic conditions will remain supportive of a moderate
topline and earnings growth for the company over the next 12-18
months, with Moody's-adjusted leverage ranging between 5.2x-5.0x
by end-2019", added Mrs. Cirrincione.

RATINGS RATIONALE

After a sharp deterioration in 2016, Officine Maccaferri's
operating performance recovered during 2017, with an year-on-year
6.7% increase in reported revenue, and EBITDA (as reported by
company) up to EUR44 million from EUR40 million the prior year.
The recovery, driven by sales growth in Italy, Spain and UK in
Western Europe, as well as by the US, India and Indonesia,
materialized despite the fact that market conditions in Brazil,
which had been one of the main contributors to company's profits
until 2015, have remained challenging throughout 2017.
Profitability improvements also reflected Officine Maccaferri's
capability to control costs and prevent profit margin erosion in
a context of rising raw material prices, especially in China, and
a less favorable product mix in the year.

As a result, while Officine Maccaferri's gross debt remained
overall flat at EUR220 million as at end-December 2017, its gross
debt to EBITDA ratio improved to approximately 5.4x-5.5x (as
adjusted by Moody's and according to Moody's preliminary
estimates based on company's unaudited full-year results),
compared to 5.8x as at December 2016. Free cash flow increased to
around EUR15 million, from a deficit in 2016, on the back of
favorable working capital dynamics. In addition, EUR15 million
extraordinary proceeds from asset disposal was the other main
driver of deleveraging at year-end 2017.

Moody's forecasts Officine Maccaferri's EBITDA to grow in the
mid-single-digit rates over the next 12-18 months, supported by
(1) overall benign global macroeconomic conditions through 2019,
despite Brazil's contribution to the company's profits is
expected to remain muted until the end of 2018, and (2) the
company's initiatives to increase organically its business
diversification, namely by expanding its product offering, as
well as by exploiting cross-selling opportunities in geographies
where the company is already present. This EBITDA trajectory
implies a gross debt to EBITDA ratio ranging between 5.2x-5.0x by
year-end 2019, while free cash flow generation will remain
strained over the next 12-18 months, mildly negative or at break-
even, reflecting some pressure from the company's capital
spending plan to increase business diversification.

The rating also incorporates some risks related to potential
business acquisitions, that could possibly be larger than those
executed by the company so far, in order to further increase the
contribution from its high value-added engineering solutions and
products. Moody's believes such transactions might not be credit
negative because they could strengthen the business profile and
the impact on the financial profile would be likely mitigated by
the use of available cash balances.

Officine Maccaferri's B3 rating reflects (1) the company's small
size compared with that of similarly rated companies; (2) the
fairly low barriers to entry, particularly in one of the
company's largest cash-contributing product categories, its
Double Twist Mesh division; and (3) the company's exposure to
cyclical end markets, mainly related to infrastructure spending.
In addition, the company's exposure to emerging markets
translates into higher-than-average earnings volatility in times
of economic turmoil. More positively, these weaknesses are
mitigated by (1) the group's market leadership position, owing to
its long track record in niche products; (2) a good degree of
geographic and customer diversification; and (3) its modern and
well-invested asset base, which keeps maintenance capital
spending low.

The B3 senior unsecured rating assigned to the notes is aligned
with the CFR, reflecting that it represents the vast majority of
the financial liabilities. The limited share of upstream
guarantees creates a degree of structural subordination to trade
payables booked on operating subsidiaries that do not provide a
guarantee to the holding company debt. At this point, however,
this is not translating into a notching down of the bond's
rating.

STABLE OUTLOOK

The stable outlook reflects the improvement in operating
performance in 2017 that positions the credit solidly in the B3
category. The stable outlook also takes into account our
expectation that trading conditions will remain supportive of
moderate topline and earnings growth over the next 12-18 months,
owing to favorable global macroeconomic prospects and the
company's efforts to increase business diversification, both
organically and, possibly, via small acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

Officine Maccaferri's ratings could be upgraded in case of (1)
proven track record of stability in operating performance,
supported by greater business diversification; (2) financial
leverage (defined as Moody's-adjusted gross debt/EBITDA) reducing
towards 5.0x or below on a sustained basis; and (3) solid
liquidity and consistently positive free cash flow generation.

Conversely, Officine Maccaferri's rating could be lowered if (1)
profitability and cash generation deteriorate significantly,
leading to a Moody's-adjusted EBIT interest coverage ratio below
1.0x on an ongoing basis; and (2) financial leverage (defined as
Moody's-adjusted gross debt/EBITDA) weakens to above 6.5x.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Building
Materials Industry published in January 2017.

COMPANY PROFILE

Officine Maccaferri S.p.A. (Officine Maccaferri), incorporated in
Bologna, Italy, is a leading designer and manufacturer of
environmental engineering products and solutions, with a global
footprint. It reports four divisions: the Double Twist Mesh
products, the Geosynthetics polymer materials, the Rockfall and
snow protections nets and the Other Products division, which
includes a range of tunnelling and wall reinforcing products, as
well as engineering solution services and wire products. In 2017,
the company reported EUR497 million revenue and EUR44 million
EBITDA.



===================
K A Z A K H S T A N
===================


BANK OF ASTANA: S&P Lowers Issuer Credit Ratings to 'CCC/C'
-----------------------------------------------------------
S&P Global Ratings said that it has lowered its long- and short-
term issuer credit ratings on Bank of Astana JSC to 'CCC/C' from
'B-/B'. S&P also lowered its Kazakhstan national scale rating on
the bank to 'kzCCC+' from 'kzB+'.

S&P said, "We subsequently placed our long-term issuer credit and
national scale rating ratings on CreditWatch with negative
implications.

"The downgrade stems from our view that Bank of Astana is
currently facing substantial liquidity pressures, due to a loss
of confidence among its clients. This situation arose after the
President of Kazakhstan expressed concerns regarding three small
Kazakh banks, including Bank of Astana, during a meeting with the
National Bank of Kazakhstan (NBK) on April 18, 2018.

"We currently have limited visibility on the potential negative
impact of this statement on Bank of Astana's client base.
However, we cannot rule out the possibility that the bank might
have to repay substantial amounts to its large corporate and
individual clients over a relatively short period of time. This
could be challenging, given that, in our view, the bank manages
its liquidity quite aggressively and has maintained its current
liquidity ratio just above the regulatory minimum during the past
five months. The bank's client base is very concentrated:
Customer deposits accounted for about 93% of total funding at
year-end 2017. The 20 largest deposits, excluding the biggest one
(from a large one-time monorail project), accounted for 46% of
total customer deposits. The monorail's current account made up
32% of total deposits as of Feb. 1, 2018, which we think
represents a very high concentration, exposing the bank to a
shortfall in liquid assets in the event of unexpected deposit
withdrawals. The bank's current liquid assets of about
Kazakhstani tenge (KZT) 60 billion (about $184 million) can cover
only about 20% of deposit outflows, and are insufficient to cover
the potential withdrawal of the largest government-related
entities' deposits, totaling about KZT85 billion.

"We are also concerned about Bank of Astana's fulfillment of
regulatory capital adequacy requirements. The bank's regulatory
capital adequacy ratio stood at 10.4% as of March 1, 2018, only
slightly above the regulatory minimum of 10%. Therefore the bank
cannot absorb even a slight increase in provisions without
breaching the regulatory capital adequacy ratio. We currently
cannot rule out that the NBK might force Bank of Astana to create
additional loan loss provisions. The bank's nonperforming loans
(NPLs; loans overdue 90 days or more) amounted to 4.4% of total
loans at year-end 2017. However, another 25% of the loan book
comprised restructured loans, which could turn into NPLs. In our
view, the bank's provisions, at 5.8% of total loans at year-end
2017, are very low compared with the amount of overdue and
restructured loans. Should the bank be required to create
additional provisions, this could weigh heavily on its regulatory
capital ratios."

The CreditWatch reflects the uncertainty regarding the scale of
potential outflows from Bank of Astana, the bank's ability to
service all its obligations in full and on time, and the amount
of provisions the bank might need to create.

S&P said,"We expect to resolve the CreditWatch within the next 90
days or earlier, once we have more clarity regarding these
factors, in particular, the bank's overall ability to increase
provisions while staying compliant with regulatory requirements.

"We could lower the ratings if the bank's liquid assets decline
below the regulatory minimum, if the bank breaches the regulatory
capital adequacy ratios, or if the bank is unable to repay its
liabilities in full and on time.

"We could affirm the ratings if we see a steady funding base and
restoration of customer confidence, as shown by stabilization of
customer funds, as well as the bank's ability to maintain higher
liquidity ratios."


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


NXP SEMICONDUCTORS: Egan-Jones Hikes Sr. Unsecured Ratings to BB+
-----------------------------------------------------------------
Egan-Jones Ratings Company, on April 17, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by NXP Semiconductors NV to BB+ from BB.

NXP Semiconductors N.V. is a Dutch global semiconductor
manufacturer headquartered in Eindhoven, Netherlands.


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


GETBACK SA: S&P Suspends 'B/B' Issuer Credit Ratings
----------------------------------------------------
S&P Global Ratings suspended its 'B' long-term and 'B' short-term
issuer credit ratings on Poland-based GetBack S.A.

At the time of the suspension, the global scale ratings on
GetBack S.A. were 'B/B' and these ratings were on CreditWatch
negative.

S&P said, "We understand that GetBack is experiencing
difficulties with the full and timely repayment of at least one
of its private debt placements. However, we have no sufficient
information on the terms and conditions of the issue, in
particular regarding the grace period, nor do we have any updated
information on the issuer's liquidity and funding profile. From
public sources, we are unable to conclude whether or not GetBack
is in selective default and if its creditworthiness has
deteriorated as a result of recent negative publicity.

"Our suspension of the ratings reflects that we lack the
information that would allow us to satisfactorily assess the
ratings. This action follows our repeated attempts to obtain
latest, good quality information to maintain our rating in
accordance with our applicable criteria and policies.

"If the company provides sufficient information within the next
90 days, we would assess this information to determine the rating
outcome. However, if the quality and amount of information
remains insufficient to form a rating opinion, we will withdraw
the ratings."


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


* Moody's: New US Sanctions to Hit Some Russian Debt Issuers
------------------------------------------------------------
Russia's strong public and external finances will help to shield
the broader economy from the impact of new US sanctions,
protecting the sovereign credit profile, Moody's Investors
Service said in a report mid-April. However, the sanctions will
be credit negative for some Russian debt issuers, in particular
the aluminium company RUSAL, and uncertainty around potential
further sanctions persists, which could adversely affect other
corporate issuers.

The report assesses the credit implications of the latest
sanctions and the threat of further measures for the Russian
sovereign, regional governments, companies and banks.

"Russia's sovereign credit profile -- its rating is Ba1 with a
positive outlook -- is well positioned to withstand the impact of
new sanctions," said Kristin Lindow, a Moody's Senior Vice
President and co-author of the report. "Higher oil prices will
help the government to make further progress in rebuilding its
fiscal savings."

The risks to Russia's sovereign credit profile from the new US
sanctions mainly arise from the likelihood that Russian entities
could be cut off from the international capital markets for a
time.

Lindow said "The Russian economy's ability to weather these new
challenges will be an important consideration for future
decisions on the sovereign credit rating as well as our credit
assessments of Russian issuers more broadly."

For Russian rated regions, a reliance on domestic funding limits,
as well as loans from local banks and the federal government,
will limit their refinancing risks. In case of market turbulence,
the pressure from any increase in the cost of financing will
probably be limited for the sub-sovereign sector as a whole.
However, regions with concentrated tax bases are more exposed to
negative developments in some sectors of economy.

Moody's also expects that the central government would increase
support to regions that suffer a drop in revenues due to
sanctions.

In the corporate sector, the sanctions will have the biggest
impact on RUSAL. Moody's views a default on RUSAL's US dollar-
denominated debt obligations -- including Eurobond coupon
payments
-- as a realistic possibility as early as May 3, 2018 when a
coupon payment on the company's $500 million Eurobond is due. The
company's sales and cash flows will also be severely affected by
the sanctions because of the risk of secondary sanctions against
its counterparties.

Although fairly few large Russian corporates were directly
affected by the new sanctions, concerns regarding the imposition
of additional sanctions may alter even non-US individuals and
entities' propensity or willingness to deal with Russian
companies going forward. Large exporters with long-term contracts
might be affected most because of their wide international
customer and investor base. Exporters will benefit from rouble
depreciation, but uncertainty surrounding future sanctions may
materially worsen perceptions of Russian risk.

The Russian banking system has sufficient earnings capacity to
absorb credit losses from exposures to sanctioned companies.

Moody's estimates that the combined exposure to these companies
is less than 2% of the banking system's assets, or 15% of the
system's capital. In addition, the banking system has ample
liquidity to assume a significant part of corporate refinancing
needs if needed.

The report is "Cross-Sector -- Russia: Most issuers resilient to
fresh sanctions."


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


INDUSTRIJA MASINA: Tafe to Acquire Business for RSD66.8 Million
---------------------------------------------------------------
SeeNews reports that Serbia's government said on April 11 it
signed a contract for the sale of insolvent tractor manufacturer
Industrija Masina i Traktora (IMT) to Indian company Tafe for
RSD66.8 million (US$699,000/EUR565,000).

The government said in a statement that by purchasing IMT, Tafe
acquired the intellectual property rights of the company, which
includes the brand, design plans and copyrights, as well as real
estate in Jarkovac, northern Serbia, SeeNews relates.

The Indian company was the only bidder for the acquisition of IMT
and its offer was approved on April 2, SeeNews notes.

IMT was declared insolvent and ceased production in December
2015, SeeNews recounts.  The government put it up for sale on
March 1, SeeNews relays.


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


* S&P Puts Ratings on 213 Spanish RMBS Tranches on Watch Positive
-----------------------------------------------------------------
S&P Global Ratings placed on CreditWatch positive its credit
ratings on 213 tranches in 82 Spanish residential mortgage-backed
securities (RMBS) transactions.

The rating actions follow the March 23, 2018 upgrade of Spain and
the subsequent raising of its issuer credit ratings (ICRs) on the
counterparties in some of these transactions, and consider it
updated outlook assumptions for the Spanish residential mortgage
market.

S&P said, "We have considered the application of our structured
finance ratings above the sovereign criteria. These criteria
classify the sensitivity of these transactions as moderate.
Therefore, the highest rating that we can assign to the senior-
most tranche in these transactions is six notches above the
sovereign rating on the country in which the securitized assets
are located, if certain conditions are met. For all the other
tranches, the highest rating that we can assign is four notches
above the sovereign rating. As a result, our maximum potential
rating in transactions with underlying assets in Spain is now
'AAA (sf)'.

"Following the sovereign upgrade, on April 6, 2018, we raised our
long-term issuer credit ratings (ICRs) on Banco Santander S.A.,
Banco Bilbao Vizcaya Argentaria S.A., Caixabank S.A., Bankinter
S.A., Bankia S.A., Banco de Sabadell S.A., and Abanca Corporaci¢n
Bancaria S.A., which are counterparties for some of these
transactions. Given the upgrades of these entities, the maximum
achievable rating is now higher under our counterparty criteria.
The specific ratings cap depends on the replacement provisions
and remedies described in the terms of their agreements.

"Our European residential loans criteria, as applicable to
Spanish residential loans, establish how our loan-level analysis
incorporates our current opinion of the local market outlook.
The criteria's benchmark assumptions for projected losses assume
benign starting conditions, in other words, a positive or stable
outlook on the local housing and mortgage markets. If the
starting conditions are adverse, we modify these assumptions.

"Our current outlook for the Spanish housing and mortgage
markets, as well as for the overall economy in Spain, is benign.
Therefore, we revised our expected level of losses for an
archetypal Spanish residential pool at the 'B' rating level to
0.9% from 1.6%, in line with table 87 of our European residential
loans criteria, by lowering our foreclosure frequency assumption
to 2.00% from 3.33% for the archetypal Spanish residential pool
at the 'B' rating level.

"Following the application of our RAS criteria, our counterparty
criteria, and our European residential loans criteria, we have
placed on CreditWatch positive our ratings on 213 tranches in 82
transactions as we need to conduct a full analysis to determine
the impact of our recent upgrade of Spain and some of the
counterparties on these transactions and our updated outlook
assumptions for the Spanish residential mortgage market.

"We will seek to resolve the CreditWatch placements within the
next 90 days."

A list of Affected Ratings can be viewed at:

          https://bit.ly/2HQLJDG


=====================
S W I T Z E R L A N D
=====================


WEATHERFORD INT'L: Egan-Jones Cuts Sr. Unsec. Ratings to B-
-----------------------------------------------------------
Egan-Jones Ratings Company, on April 16, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Weatherford International PLC to B- from B. EJR
also raised the ratings on commercial paper issued by the Company
to B from C.

Weatherford International PLC operates as a multinational
oilfield service company worldwide. The company was founded in
1972 and is headquartered in Baar, Switzerland.


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


AVATION PLC: Egan-Jones Cuts Sr. Unsec. Debt Ratings to BB
----------------------------------------------------------
Egan-Jones Ratings Company, on April 16, 2018, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Avation PLC to BB from BBB-.

Avation PLC was founded in 2006 and is headquartered in
Singapore. The company owns a range of commercial passenger
aircraft; and supplies new and refurbished aircraft parts.


BOPARAN HOLDINGS: Moody's Cuts CFR to Caa1, Outlook Stable
----------------------------------------------------------
Moody's Investors Service downgraded UK-based food manufacturer
Boparan Holdings Limited's corporate family rating (CFR) to Caa1
from B3 and probability of default rating (PDR) to Caa1-PD from
B3-PD. Concurrently, Moody's downgraded the ratings on the senior
unsecured notes issued by Boparan Finance plc to Caa1 from B3.
The outlook on all ratings was changed to stable from negative.

"The downgrade of Boparan's ratings to Caa1 reflects further
deterioration in the company's operating performance during the
second quarter of its fiscal year 2017-18 and our expectations
that EBITDA generation over the coming quarters will remain
weaker than our assumptions at the time of the rating downgrade
to B3 in November last year", says Paolo Leschiutta a Moody's
Senior Vice President and lead analyst for Boparan. "Although the
recently announced disposal of Goodfella's will have a positive
impact on the company's net debt position and will reduce
somewhat the refinancing risk in relation to the GBP250 million
notes due in July 2019, the Caa1 rating signals our concerns that
the capability to improve profitability remains subject to
significant execution risks while market conditions remain
challenging", added Mr Leschiutta.

RATINGS RATIONALE

The Caa1 CFR reflects Moody's expectation that Boparan's free
cash flow generation will remain below our original expectations
resulting in prolonged weaknesses in both the company's liquidity
profile and in its credit metrics. Boparan has a GBP60 million
revolving credit facility, currently undrawn, available till July
2019, and a GBP250 million of senior notes due in July 2019.
Although Moody's expects the company to maintain adequate
headroom under its single minimum EBITDA covenant of GBP100
million only applicable to its RCF and tested when drawn above
25% at quarter end, the lower than expected performance and
potential for negative free cash flow after pension contribution
might challenge the company to refinance its debt maturities in a
timely manner.

EBITDA generation during the second quarter ending January 2018
was around GBP30.2 million (as reported by the company). This was
GBP12.4 million below prior year quarter and around GBP10 million
below Moody's expectations. The company is now expecting a full
year EBITDA in the region of GBP130-135 million, which is well
below our previous expectations. The decline is on top of the
GBP20 million EBITDA reduction, to GBP161 million, during
financial year end July 2017 (fiscal 17). The profit revision was
prompted by ongoing difficulties in passing price increases to
customers to recover some of the higher input costs and a number
of one off cost related to the food hygiene allegations during
last fall.

As a result of the company's profit revisions for fiscal 18, the
rating agency now expects a Moody's-adjusted debt/EBITDA around
7.5x-8.0x and a Moody's-adjusted EBIT interest cover below 1x
over the next 12 to 18 months which are seen as too weak for the
B3 category. Our revised expectation assumes that proceeds of the
likely disposal of Goodfella's, expected to be completed by
fiscal 18, will be applied eventually to reduce financial debt or
the company's pension deficit.

Moody's recognizes that the company is undertaking a number of
measures to improve profitability and cash flow generation
including price increases, efficiency savings, asset disposals
and better working capital management. During the second quarter
of fiscal 2018, in particular, the company announced the disposal
of Goodfella's for GBP200 million and a GBP33.5 million working
capital improvement. Moody's also understands that the company is
looking for additional asset disposals. Some of the company's
initiatives, however, remain subject in Moody's view to a high
degree of execution risks and will continue to result in a number
of one-off charges and exceptional restructuring costs, which
will depress cash flow generation or profit quarter after
quarter. In this context, however, the rating agency notes that
during the first half of fiscal 18 restructuring charges were
significantly lower than prior years.

Moody's expects EBITDA improvement over the next 12 months to be
constrained by delays in recovering high input costs due to the
price sensitive food retail market in the UK, competitive
pressures, and further increases in the national living wage.
Additional measures to strengthen quality control following the
recent hygiene failings allegations will also further pressure
already thin margins. The EBIT margin was 2.4% in fiscal 2017 on
a Moody's-adjusted basis including restructuring costs of GBP23
million. This dropped to 1.9% during the first half of fiscal 18
and Moody's expects further deterioration for the full year.
Boparan's UK poultry operations are less affected than the rest
of the company's activities by higher input prices because
approximately 70% of UK poultry sales benefit from contractual
pass-through arrangements for key poultry feedstock including
currency impact, albeit with a time-lag of approximately three
months. Other operations, including the red meat businesses,
offer however less flexibility exposing the company to input cost
volatility.

Although the expected GBP200 million proceeds from the
Goodfella's disposal may represent a relief to the company's
liquidity profile, the ongoing weaknesses in operating
performance and potential for negative free cash flow might
constrain the refinancing execution of its 2019 bonds. In
addition, the disposal of Goodfella's as well as the potential
for further disposals will partially reduce the company's
business diversification and will have a negative impact on its
profitability given that the branded frozen pizza's business
enjoys an above group's average operating margins.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company
will address in a timely manner its upcoming debt maturities. We
note however that prolonged weakness in the company's key credit
metrics creates challenges for the refinancing execution by 2019.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

While unlikely in the near-term given the action, the ratings
could be upgraded in case of success in addressing the 2019
maturities and in the event of sustained improvement in operating
performance, leading to (1) the Moody's-adjusted EBIT margin
increasing above 2.5%, (2) a Moody's-adjusted debt/EBITDA
reducing below 7.5x, and (3) a Moody's-adjusted EBIT interest
coverage comfortably above 1x; and (4) an improved liquidity
profile including positive free cash flow generation after
pension contributions.

Conversely, the ratings could be downgraded in the event of
continued deterioration in operating performance and/or liquidity
including further deterioration in free cash flow generation
after pension contributions. Moody's will also consider
downgrading the ratings if the company's does not address its
2019 maturities in a timely manner.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Packaged Goods published in January 2017.

Boparan Holdings Limited (Boparan or the group) is the parent
holding company of 2 Sisters Food Group, one of UK's largest food
manufacturers with operations in poultry, red meat, sandwiches,
chilled ready meals, chilled pizzas, branded frozen pizzas, and
branded biscuits among other things. It reported revenues of
GBP3.3 billion in fiscal 2017.


GLOBAL ADVENTURE: In Administration, Buyer Sought for Business
--------------------------------------------------------------
Paul Bisping at Business Sale reports that Global Adventure Sport
has called in the administrators with the aim of finding a new
owner for the company.

The company has appointed Patrick Lannagan and Conrad Pearson --
conrad.pearson@mazars.co.uk -- from Manchester firm Mazars to
oversee the administration, Business Sale relates.

Though the firm's creditors are hoping for a sale of property and
assets in order to settle up matters, the administrators are
prioritizing selling on the company as a going concern, Business
Sale notes.

According to Business Sale, a statement on Mazars' website says:
"Offers are invited from interested parties who are seeking to
purchase the business, website/domain-name and assets as a whole
in the first instance.

"In the event that no purchaser is sought, the assets will be
auctioned by our agents in due course."

The company's main assets, say the administrators, are its
"mature online presence" -- which generates 60% of its sales --
and stock held.

Global Adventure Sport is a firm based near Chester that sells
bicycles and cycling accessories.


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


* BOOK REVIEW: Competitive Strategy for Healthcare
--------------------------------------------------
Authors: Alan Sheldon and Susan Windham
Publisher: Beard Books
Softcover: 190 pages
List Price: $34.95

Review by Francoise C. Arsenault

Order your personal copy today at http://bit.ly/1nqvQ7V

Competitive Strategy for Health Care Organizations: Techniques
for Strategic Action is an informative book that provides
practical guidance for senior health care managers and other
health care professionals on the organizational and competitive
strategic action needed to survive and to be successful in
today's increasingly competitive health care marketplace. An
important premise of the book is that the development and
implementation of good competitive strategy involves a profound
understanding of change. As the authors state at the outset:
"What may need to be done in today's environment may involve
great departure from the past, including major changes in the
skills and attitudes of staff, and great tact and patience in
bringing about the necessary strategic training."

Although understanding change is certainly important in most
fields, the authors demonstrate the particular importance of
change to the health care field in the first and second chapters.
In Chapter 1, the authors review the three eras of medical care
(individual medicine, organizational medicine, and network
medicine) and lay the groundwork for their model for competitive
strategy development. Chapter 2 describes the factors that must
be taken into account for successful strategic decision-making.
These factors include the analysis of the environmental trends
and competitive forces affecting the health care field, past,
current, and future; the analysis of the competitive position of
the organization; the setting of goals, objectives, and a
strategy; the analysis of competitive performance; and the
readaptation of the business, if necessary, through positioning
activities, redirection of strategy, and organizational change.

Chapters 3 through 7 discuss in detail the five positioning
activities that are part of the model and therefore critical to
the development and implementation of a successful strategy:
scanning; product market analysis; collaboration; restructuring;
and managing the physician. The chapter on managing the physician
(Chapter 7) is the only section in the book that appears dated
(the book was first published in 1984). In this day of physician-
owned hospitals and physician-backed joint ventures, it is
difficult to envision the physician in the passive role of "being
managed." However, even the changing role of physicians since the
book's first publication correlates with the authors' premise
that their model for competitive strategic planning is based
exactly on understanding and anticipating change, which is no
better illustrated than in health care where change is measured
not in years but in months. These middle chapters and the other
chapters use a mixture of didactic presentation, graphs and
charts, quotations from famous individuals, and anecdotes to
render what can frequently be dry information in an entertaining
and readable format.

The final chapter of the book presents a case example (using the
"South Clinic") as a summary of many of the issues and strategic
alternatives discussed in the previous chapters. The final
chapter also discusses the competitive issues specific to various
types of health care delivery organizations, including teaching
hospitals, community hospitals, group practices, independent
practice associations, hospital groups, super groups and
alliances, nursing homes, home health agencies, and for-profits.
An interesting quote on for-profits indicates how time and change
are indeed important factors in strategic planning in the health
care field: "Behind many of the competitive concerns lies the
specter of the for-profits. Their competitive edge has lain until
now in the excellence of their management. But developments in
the past half-decade have shown that the voluntary sector can
match the for-profits in management excellence. Despite
reservations that may not always be untrue, the for-profit sector
has demonstrated that good management can pay off in health care.
But will the voluntary institutions end up making the same
mistakes and having the same accusations leveled at them as the
for-profits have? It is disturbing to talk to the head of a
voluntary hospital group and hear him describe physicians as his
potential competitors."



                            *********

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 * * *