/raid1/www/Hosts/bankrupt/TCREUR_Public/180502.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, May 2, 2018, Vol. 19, No. 086


                            Headlines


C Y P R U S

CYPRUS: Fitch Raises Long-Term IDR to BB+, Outlook Positive


F R A N C E

ATALIAN SAS: Moody's Cuts CFR to B2 After Servest Acquisition
FNAC DARTY: S&P Alters Outlook to Positive & Affirms 'BB' ICR


G E R M A N Y

LANDESBANK SAAR: Fitch Affirms 'bb+' Viability Rating
TELE COLUMBUS: Moody's Rates EUR500MM Bond 'B2', Outlook Positive


I R E L A N D

ALPSTAR CLO 2: S&P Lowers Class E Notes Rating to 'B (sf)'
AURIUM CLO IV: S&P Affirms B- Rating on EUR11.8MM Class F Notes


K A Z A K H S T A N

KAZAGROFINANCE: Fitch Affirms 'BB+' Senior Unsecured Debt Rating
KAZAKHSTAN TEMIR: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
KAZTRANSOIL: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable


L U X E M B O U R G

TRINSEO SA: Moody's Raises CFR to Ba3, Outlook Stable


N E T H E R L A N D S

SUNSHINE MID: Moody's Assigns Definitive B2 Corp. Family Rating
VODAFONEZIGGO GROUP: Fitch Lowers IDR to B+, Outlook Stable


R U S S I A

ELBIN JSC: Put on Provisional Administration, License Revoked
EURASIA DRILLING: S&P Raises ICR to 'BB+', Outlook Stable
NATIONAL BANK: Bank of Russia Approves Bankruptcy Amendments
TEMPBANK PJSC: Liabilities Exceed Assets, Assessment Shows


S P A I N

BANCAJA 7: Fitch Affirms 'BBsf' Rating on Class D Notes
BBVA RMBS 1: Fitch Raises Rating on Class C Notes to 'CCCsf'
HIPPOCAT 9: Fitch Raises Rating on Class C Tranche to 'BB+sf'
IM CAJAMAR 2: Moody's Assigns (P)Caa2 Rating to EUR240M B Notes


U N I T E D   K I N G D O M

CONVIVIALITY PLC: Rejects 11th-Hour Rescue Deal
INTERSERVE PLC: Funding Plan Approved, Losses Widen
LAIRD: Moody's Assigns B3 Corp. Family Rating, Outlook Stable
NEPTUNE ENERGY: Moody's Assigns Ba3 CFR & Rates $500MM Notes B2


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C Y P R U S
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CYPRUS: Fitch Raises Long-Term IDR to BB+, Outlook Positive
-----------------------------------------------------------
Fitch Ratings has upgraded Cyprus's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'BB+' from 'BB'. The Outlook is
Positive.

KEY RATING DRIVERS
The upgrade of Cyprus's IDRs reflects the following key rating
drivers and their relative weights:

High
Cyprus's external financing flexibility has improved
substantially since the country exited the macroeconomic
adjustment programme in March 2016. The government tapped
international markets in June 2017 and external interest payments
are set to decrease to 6.6% of current account receipts in 2018-
2019, down from an average 16.2% in 2011-2012. Cyprus is also
attracting large foreign direct investments in the construction,
tourism, energy and education sectors. Cash reserves were EUR1.2
billion at end-2017 covering expected gross financing needs for
2018.

Recently published data from the Central Bank of Cyprus (CBC)
indicates that external sector statistics are materially
distorted by special purpose entities (SPEs), including shipping
and financial companies. We expect the large import-content of
investments will keep weighing on the current account deficit,
which we project at about 6% of GDP in 2018-2019, compared with a
'BB' median of 3.2%, but it would be significantly lower when
excluding SPEs, as per the CBC's estimates. Similarly, net
external debt (NXD) excluding SPEs would turn into a small net
asset position of less than 3% of GDP in 3Q17 according to the
CBC, compared with a non-adjusted NXD of 164% of GDP at-end 2017
and a 'BB' median of 13%.

Cyprus's fiscal performance has benefited from a very strong
cyclical economic recovery, and prudent fiscal policy. We
forecast the government will continue recording fiscal surpluses
of 1.1% of GDP in 2018 and 2019, after over-achieving its fiscal
target in 2017 with an estimated surplus of 1.9% of GDP, compared
with a 'BB' median fiscal deficit of 3.2%. A dynamic labour
market and sustained economic momentum will support revenues
while the recent agreement with trade unions limiting the payroll
rise to nominal GDP growth and the hiring freeze adopted in the
public sector will help contain current spending.

Medium
Medium-term debt dynamics point towards a firm downward trend,
which will provide Cyprus with some fiscal room to absorb any
materialisation of contingent liabilities arising from the
banking sector. Strong nominal GDP growth, at a forecast 4% over
the medium term, ongoing expected primary surpluses and a very
gradual increase in nominal effective interest rates will lead to
a decline in the gross general government debt (GGGD)/GDP ratio
to less than 90% by 2022.

We expect real GDP growth to remain robust in the coming years
and average 3.4% in 2018-19, supported by a dynamic tourism
sector and buoyant construction activity. Private sector debt and
non-performing exposures (NPEs) remain high and are still
weighing on new lending, but we believe economic growth would be
resilient to a possible acceleration in NPEs normalisation. The
recovery relies largely on foreign-financed investments, which
should minimise any contraction in domestic demand. Households'
deposits are also substantial at 123% of GDP at end-2017, twice
the stock of households' housing loans, and strong employment
growth and rising wages would help smooth private consumption if
debt service costs were to increase.

Deleveraging of the private sector is ongoing, with households'
and corporate debt (excluding non-financial SPEs) declining by
5pp in 3Q17 to 250% of GDP. Increased earnings, ongoing
resolution of mortgage arrears, recovering house prices and
upcoming legislative reforms enhancing the foreclosure and
insolvency framework might foster further debt repayment.

Cyprus's 'BB+' IDRs also reflect the following key rating
drivers:

The weakness of the banking sector remains a risk to public
finances and weighs on Cyprus's credit profile. The government
deposited EUR2.5 billion in Cyprus Cooperative Bank (CCB) in
April 2018 to alleviate depositors' concerns ahead of the
expected sale of the state's majority stake in the bank and
following a recent outflow of deposits from CCB. We expect this
to lead to an increase in the GGGD/GDP ratio to 104% of GDP in
2018, from 97.5% in 2017.

In addition, the Cypriot authorities intend to launch a new
"Estia" scheme which would apply to the banks' problem housing
loans to vulnerable groups, currently estimated at EUR3 billion.
The scheme will rely on loan restructurings and state subsidies
to incentivise borrowers' repayment and would imply an estimated
yearly fiscal cost of 0.25% of GDP over the medium term.

The ratio of NPEs to total loans declined gradually to 42.5% at
end-2017 (109% of GDP), down from 46.4% at end-2016. The decline
stems from rising repayments, debt restructuring, loan write-offs
and large recourse to debt-to-asset swaps. However, developments
were uneven across banks, as the country's two largest
domestically-oriented banks, Bank of Cyprus (BoC) and Hellenic
Bank (HB) progressed faster than its cooperative sector, where
NPEs were 59% of total loans at end-September 2017.

Capitalisation remains above regulatory requirements but
decreased in 2017, with common equity Tier 1 declining by 1pp to
14.9% as banks increased their provisioning and recorded some
losses. Unreserved NPEs for the sector amounted to EUR11 billion
(57% of GDP) at end-2017, which could lead to some capital
shortfall if losses were to crystallise and higher than expected
haircuts were incurred when liquidating underlying collateral.
This level of NPEs is very significant relative to the overall
banking sector common equity Tier 1 capital of EUR5.4 billion at
end-2017.

Liquidity has improved as denoted by the repayment of ECB
emergency liquidity assistance balance in 2017 and deposits
increased by 3.1% y-o-y to EUR49.4 billion in December 2017.
However, non-resident deposits still represent a quarter of total
deposits at BoC and a half at HB. These are largely short-term
funding and confidence-sensitive and would likely become more
volatile than domestic deposits in case of stress.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Cyprus a score equivalent to a
rating of 'BBB+' on the Long-Term Foreign-Currency (LT FC) IDR
scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LT FC IDR by applying its QO, relative
to rated peers, as follows:
- External finances: -1 notch, to reflect our view that the SRM
enhancement across the eurozone for "reserve currency status"
overstates the degree of flexibility provided to eurozone members
who lost market access during the crisis. Cyprus's improving
external financing flexibility and our assessment of the
underlying position of its external accounts (adjusting for the
impact of SPEs on debt measures and the net international
investment position) warrant a revision of this QO factor to -1
from -2.
- Structural features: -2 notches, to reflect the banking sector
weakness that could pose a large contingent liability to the
sovereign and lead to macro-stability risks.

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three-year
centred averages, including one year of forecasts, to produce a
score equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within our
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES
Future developments that may, individually or collectively, lead
to an upgrade include:
- Reduction in banking sector NPEs that materially reduces the
sovereign's contingent liabilities;
- Track record of declining GGGD/GDP ratio; and
- Continued deleveraging of the private sector.

The Outlook is Positive. Consequently Fitch does not currently
anticipate developments with a high likelihood of leading to a
downgrade. However, future developments that may individually or
collectively lead to negative rating action include:
- Failure to improve asset quality in the banking sector; and
- Deterioration of budget balances or further materialisation of
contingent liabilities that results in the stalling of the
decline in the government debt-to-GDP ratio.

KEY ASSUMPTIONS
Gross government debt-reducing operations such as future
privatisations are not considered in Fitch's baseline scenario.
The projections also do not include the impact of potential
future gas reserves off the southern shores of Cyprus, the
benefits from which are several years into the future.

Fitch does not expect substantial progress with reunification
talks between the Greek and Turkish Cypriots over the next
quarters. The reunification would bring economic benefits to both
sides in the long term but would entail short-term costs and
uncertainties.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR upgraded to 'BB+' from 'BB';
Outlook Positive
Long-Term Local-Currency IDR upgraded to 'BB+' from 'BB'; Outlook
Positive
Short-Term Foreign-Currency IDR affirmed at 'B'
Short-Term Local-Currency IDR affirmed at 'B'
Country Ceiling upgraded to 'BBB+' from 'BBB'
Issue ratings on long-term senior unsecured local-currency bonds
upgraded to 'BB+' from 'BB'
Issue ratings on short-term senior unsecured local-currency bonds
affirmed at 'B'


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F R A N C E
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ATALIAN SAS: Moody's Cuts CFR to B2 After Servest Acquisition
-------------------------------------------------------------
Moody's Investors Service has downgraded France-based provider of
cleaning and facility management services La Financiere ATALIAN
S.A.S.' (Atalian or the company) corporate family rating (CFR) to
B2 from B1 and probability of default rating (PDR) to B2-PD from
B1-PD. Concurrently, Moody's assigned a B2 instrument rating to
Atalian's new EUR610 million equivalent senior unsecured notes
due 2025 and affirmed the B2 instrument rating on the existing
EUR625 million senior unsecured notes due 2024. The outlook on
the ratings is stable.

Atalian will use the proceeds from the new notes, alongside
equity contribution in cash of EUR20 million and in kind of EUR17
million from certain senior management of Servest Limited
(Servest or the target) to (1) fund the acquisition of Servest
including its 28.8% minority interest in Getronics as well as two
companies currently being acquired by the target, (2) repay
Servest's outstanding debt, (3) provide EUR16 million of cash
overfund, and (4) pay transaction fees. Servest is a leading
facility management group in the United Kingdom with operations
spanning across cleaning, building services, catering and
security. It generated revenues of GBP457 million in its fiscal
year ended 30 September 2017 and counts approximately 24,000
employees.

The rating action closes the review for downgrade on the company
initiated on April 11, 2018 following its announcement that it
had entered into a share purchase agreement to acquire the entire
capital of Servest.

RATINGS RATIONALE

"The downgrade of the CFR to B2 mainly reflects the significant
increase in Atalian's adjusted pro forma gross leverage to 6.7x
as of 31 December 2017 following the debt-funded acquisition of
Servest from 4.9x prior to the transaction", says Sebastien
Cieniewski, Moody's lead analyst for Atalian. Moody's computation
of adjusted pro forma gross leverage includes the full year
contribution from the acquisitions completed in 2017 and Q1 2018
and those for which an acquisition agreement has been signed and
expect to close in Q2 2018, operating provisions, pension
liabilities, operating leases, off-balance sheet factoring,
excluding the pre-financing of CICE receivables. Including the
pre-financing of CICE receivables, adjusted pro forma gross
leverage was higher at 7.3x pro forma for the acquisition of
Servest compared to 5.8x prior to the transaction. The
significant re-leveraging reflects the relatively higher
enterprise value (EV) of 10x considered for the acquisition of
Servest (based on the expected full-year EBITDA as of September
2018 including Servest's closed and to be closed acquisitions and
synergies) -- higher than the historical average EV/EBITDA of 4x
to 5x post synergies paid by Atalian for other transactions.

However, this weakness is partly mitigated by (1) the significant
increase in Atalian's scale pro forma for the acquisition of
Servest reflecting the group's increased geographical
diversification and improved ability to bid in tender processes
for pan-European contracts, (2) the potential to improve group
margin through the delivery of cost synergies to be generated
from the integration of the target, and (3) Atalian's adequate
liquidity position supported by an upsized revolving credit
facility (RCF), cash on balance sheet, and projected positive
free cash flow (FCF) generation.

Atalian will be weakly positioned in the B2 category at the
closing of the transaction due to its elevated leverage. However,
Moody's considers that there is scope for de-leveraging by 1 to
1.5 turn within the next 18 to 24 months driven by organic
growth, cost synergies estimated by management at EUR16 million
to be realized over the next 3 years mainly from procurement
savings from the integration of the target, and the use of excess
cash to fund EBITDA-accretive bolt-on acquisitions.

The increased leverage is partly offset by the positive
contribution of Servest's acquisition to Atalian's business
profile which will enhance the scale of the group with pro forma
group revenues of c.EUR2.9 billion for fiscal year (FY) ending 31
December 2017 from EUR2.2 billion prior to the transaction and
the wider geographic footprint of the combined group. The
acquisition of Servest will bring Atalian a significant footstep
into the UK, where the company operated previously through a
joint-venture with the target, and contribute to reducing the
company's reliance on its French domestic market. Pro forma for
the acquisition of Servest, France will account for 47% of 2017
group revenues compared to 59% as reported by the company in that
year prior to the transaction.

Moody's nevertheless considers that Servest's organic growth will
be relatively modest at low single-digit rates over the medium-
term despite a stronger dynamic experienced over the last three
years and projected for FY 2018 driven by the signing of large
new contracts - reflecting the relative mature nature of the
market compared to other countries of Atalian's international
segment with continued pricing pressure in both cleaning and
facility management services. Nevertheless the rating agency
considers that the group should grow at 2-4% on an organic basis
over the medium-term supported by Atalian's existing
international segment expected to continue growing at above 5%
over the period. This level of organic growth compares favourably
to that experienced by Atalian in FY 2017 when the group showed a
1.5% decline in organic revenues negatively impacted by the loss
of the New York Department of Education (DOE) contract in
November 2016, its second largest contract in the US, partially
offset by positive organic growth in France and in other
countries in Europe, Africa and Asia. The low margin contract
loss had nevertheless a positive impact on group recurring EBITDA
margin (as reported by the company) which slightly increased to
6.4% in FY 2017 from 6.3% in prior year.

LIQUIDITY

Atalian's liquidity is adequate supported by the EUR113 million
pro forma cash balance as of December 31, 2017, the upsizing of
the RCF to EUR75 million from EUR18 million prior to the
transaction, and the positive FCF generation projected by Moody's
at c.5% of total adjusted gross debt. Moody's considers that the
large cash balance at closing and FCF will be used to fund EBITDA
accretive acquisitions which will support de-leveraging going
forward. In addition, the company has also access to a EUR140
million factoring programme with recourse, of which EUR23 million
was utilized at year-end 2017. The RCF, which will be undrawn as
of the closing of the transaction, will be subject to a springing
financial maintenance covenant set at 6.3x net debt-to EBITDA
tested only when at least 30% of the facility is drawn.

STRUCTURAL CONSIDERATIONS

The new notes due 2025 will rank pari passu with the senior
unsecured notes due 2024. Both notes are unsecured and guaranteed
on a senior basis by Atalian S.A.S.U., Atalian Europe S.A., and
Atalian Global Services UK 2 Limited - these subsidiaries of La
Financiere ATALIAN S.A.S. are holding companies that do no
generate any significant revenues. The notes are rated B2, at the
same level as the CFR. Nevertheless the notes are structurally
subordinated to trade payables at the level of operating
subsidiaries but the size of payables is not considered as
anymore material to warrant a notching of the notes. The RCF is
raised by Atalian S.A.S.U. and benefits only from a guarantee
from La Financiere ATALIAN S.A.S. and share pledges over certain
operating subsidiaries.

RATING OUTLOOK

The stable outlook reflects Moody's assumptions that low single
digit organic revenue growth will translate into further growth
of Atalian's EBITDA which alongside the use of excess cash flow
for bolt-on acquisitions will allow the group to de-leverage
towards 6.0x (excluding CICE financing) over the next 2 years.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

Whilst not expected in the near term, over time Moody's could
consider upgrading Atalian's rating to B1 if the company (1)
generates positive organic growth while maintaining or improving
the EBITDA margin, (2) reduces its leverage towards 5.0x on a
sustainable basis, (3) continues generating a FCF/Debt of around
5%, and (4) maintains an adequate liquidity position. Negative
pressure could develop if (1) Atalian fails to de-leverage below
6.5x over the next 12 months, (2) the company experiences flat or
declining organic sales or weakening margins, (3) FCF becomes
flat or negative, (4) or if Moody's becomes concerned about the
company's liquidity.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in France, Atalian is a leading provider of
cleaning and facility management services. The company operates
throughout 31 countries and had revenues of approximately EUR2
billion in 2017.


FNAC DARTY: S&P Alters Outlook to Positive & Affirms 'BB' ICR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on France-based consumer
electronics and editorial products retailer FNAC Darty SA to
positive from stable. S&P affirmed its 'BB' long-term issuer
credit rating.

S&P said, "We also affirmed our 'BB' rating on the group's EUR650
million senior unsecured notes. The recovery rating on this
instrument remains at '3', indicating our expectation of
meaningful recovery prospects (50%-70%, rounded estimate: 50%).

"The outlook revision reflects FNAC Darty's sound operating
performance in 2017, resulting in stronger cash flow generation
and credit metrics than we previously anticipated. On the back of
this trend, at the end of fiscal 2017 (ended March 31, 2018),
FNAC Darty's funds from operations (FFO) to debt reached 45% and
its S&P Global Ratings-adjusted debt to EBITDA stood at 1.7x,
against our previous projections of 35% and 2.1x, respectively.
We also take into account our expectation of further improvement
in profitability thanks to the recently announced buying
partnership with Carrefour and the phasing-out of restructuring
costs relating to the Darty acquisition. Moreover, the outlook
revision also incorporates the group's successful renegotiation
of both its amortizing term loan and its revolving credit
facility (RCF), resulting in meaningfully lower coupon and
extended maturities, as announced on April 18, 2018.

"In 2018 and thereafter, we anticipate that FNAC Darty's
operating performance will remain robust. Although the group will
see flat to moderate growth, its performance will be bolstered by
the faster-than-anticipated progress in integrating Darty,
continued tight cost controls, and increased Omnichannel
capacities. We believe the group's larger scale has facilitated
some cost reductions, notably thanks to better bargaining power
with suppliers, which we think will strengthen further on the
back of the announced buying partnership with Carrefour, one of
the world's largest retailers. We also expect additional cost
synergies will likely emerge over the coming months, thanks to
major logistics optimization projects kicking in at full speed."

The combined FNAC Darty group's leading market position in
France, its conservatively leveraged capital structure, and
healthy cash generation are the main rating supports. FNAC Darty
benefits from its role as a key retail channel for consumer
electronics manufacturers--such as Apple, Sony, Samsung, and LG
Electronics--because these brands (except Apple) do not have a
marked store presence in Europe. The group has a strong online
presence, comparable with that of online retailer Amazon. S&P
said, "We believe that, given the group's progress integrating
Darty, its online capabilities will spur sales, thanks to cross-
selling initiatives between the two banners, both by leveraging
the Omnichannel platforms and the shop-in-shop initiative. We
also believe the two brands will optimize the combined customer
base, notably the loyalty program that covers over seven million
subscribers. These supports factors alleviate pressure from
intense competition from internet-based retailers, discounters,
and specialty retailers. High-margin services that complement
product sales in many categories, fast delivery times, and
dynamic marketplace services distinguish FNAC Darty from
competitors and enhance the group's profitability."

S&P said, "In our view, the main constraints on the group's
credit quality are its relatively modest scale, margins at lower
levels than peers' in the wider specialty retailer spectrum, and
high seasonality of earnings and cash flows during the year. The
group's limited international footprint also weighs on the
rating. Furthermore, FNAC Darty's modest like-for-like growth and
operating margins are still under pressure due to a highly
competitive market environment. Compared with larger peers --
Ceconomy and Dixons Carphone in Europe or BestBuy in the U.S. --
we think the group's smaller scale weakens its ability to
optimize costs and therefore profitability margins. That said, we
believe that this is now partially compensated by the recent
buying partnership with Carrefour, although the agreement will
not apply to all product ranges and should only contribute
limited benefits to 2018 earnings.

"Our view of the group's credit risk is also constrained by its
exposure to the consumer electronics sector -- which we view as
having above-average risk. Nevertheless, we recognize the group's
strong competitive position in this market."

On the financial side, the group's conservatively leveraged
capital structure and good cash conversion are supporting
elements in an industry characterized by rapid changes in
consumer trends and high disruption risk. In addition, the group
has high rent levels, representing about 55%-60% of reported
EBITDA. This creates relatively elevated operating leverage and
constrains the company's financial flexibility compared with that
of some of its peers.

S&P said, "Under our base-case operating scenario, we forecast
that the group's adjusted FFO to debt will exceed 45% and
adjusted debt to EBITDA will be about 1.5x over the next two
years, while only a small share of generated cash will be used
for dividends.

"The positive outlook reflects our view that over the next 12
months FNAC Darty's credit metrics will continue to improve
gradually. The improvement will mostly stem from consistent
growth -- including on a like-for-like basis -- and higher
profitability. The diminishing restructuring costs related to the
Darty acquisition, the recently announced buying partnership with
Carrefour, and continued tight cost control will underpin the
increase in operating margins. Despite increased capex to fund
the group's expansion plans, this should translate into continued
adjusted debt reduction, resulting in FFO to debt in excess of
45%, and EBITDAR of about 2.4x in 2018 and trending toward 2.5x
thereafter.

"We would revise the outlook to stable if FNAC Darty fails to
manage the challenging market conditions in its core segments
efficiently such that its like-for-like growth stalls, if
improvements in the profitability margins are weaker than
anticipated, or cash generation falls short of our expectation.
This could lead to slower improvement in the credits metrics than
we currently anticipate, for example FFO to debt of close to 45%
or lower and EBITDAR cover of sustainably less than 2.5x. We
could also revise the outlook to stable if FNAC Darty
demonstrates a more aggressive financial policy, with
expansionary capex and acquisitions or increased shareholder
remuneration that materially lifts adjusted debt.

"We could upgrade FNAC Darty if we saw a sustained improvement in
the group's credit metrics, underpinned by sustained like-for-
like and overall growth in sales, continued improving gross and
operating margins, and positive and growing discretionary cash
flow. Specifically, an upgrade would hinge on FFO to debt
comfortably above 45% and EBITDAR coverage approaching 2.5x. A
positive rating would also be contingent on a supportive
financial policy, in particular that the group will fund its
capex, shareholder remuneration, and any acquisitions via
internally generated cash flows, while using any discretionary
cash to deleverage."


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G E R M A N Y
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LANDESBANK SAAR: Fitch Affirms 'bb+' Viability Rating
-----------------------------------------------------
Fitch Ratings has affirmed Landesbank Saar's (SaarLB) Long-Term
Issuer Default Rating (IDR) at 'A-' with a Stable Outlook and the
bank's Viability Rating (VR) at 'bb+'. We have also affirmed the
bank's Short-Term IDR at 'F1' and Support Rating (SR) at '1'.

The rating actions have been taken in conjunction with Fitch's
periodic review of three Landesbanken based in southern Germany.

KEY RATING DRIVERS
IDRS, SR AND SENIOR UNSECURED DEBT
SaarLB's IDRs, SR and senior debt ratings are driven by strong
institutional support from the bank's owners, the State of
Saarland (AAA/Stable), Saarland's savings banks and ultimately
Germany's savings banks group, Sparkassen-Finanzgruppe (SFG,
A+/Stable).

Fitch's institutional support assumptions are underpinned by
provisions contained in the statutes of the institutional
protection fund of SFG and the Landesbanken. Our support
considerations are also based on our view that the owners view
their investment in SaarLB as long-term and strategic. This is
underpinned by the focus of SaarLB on its statutory roles, which
include supporting Saarland's economy and acting as the central
institution for Saarland's savings banks and as house bank for
the State of Saarland.

Fitch uses the lower Long-Term IDR of SaarLB's owners, SFG's
Long-Term IDR, as anchor for determining the bank's support-
driven ratings. In Fitch's view, support would need to be
forthcoming from both SFG and the State of Saarland to avoid
triggering state aid considerations and resolution under the
German Recovery and Resolution Act if SaarLB fails.

Our assessment of Saarland's creditworthiness is underpinned by
the stability of Germany's solidarity and financial equalisation
system, which links Saarland's creditworthiness to that of the
German sovereign (AAA/Stable). SFG's support ability is strong,
but not as strong as that of Saarland.

We notch down SaarLB's Long-Term IDR twice from SFG's 'A+'
because we view the role of SaarLB for its owners as strategic,
but not key and integral, and due to potential legal and
regulatory barriers related to state aid considerations and
provisions of German resolution legislation. The Stable Outlook
reflects stable support assumptions and the Stable Outlook on
SFG's Long-Term IDR.

The bank's Short-Term IDR is at the higher of the two Short-Term
IDRs that map to a Long-Term IDR 'A-' on Fitch's rating scale.
This reflects SaarLB's strong links to SFG and privileged access
to SFG's ample excess liquidity and funding resources.

SaarLB's short-term senior unsecured debt rating is equalised
with the bank's Short-Term IDRs.

VR
The VR of SaarLB primarily reflects its modest franchise as a
small regional bank that concentrates primarily on its moderately
prosperous home region and on France. SaarLB's capitalisation is
modest compared with peers and offers limited loss-absorption
capacity in light of the bank's concentration risks. Low profit
retention at SaarLB prevents a meaningful strengthening of its
capitalisation and limits its business growth opportunities.

The company profile of SaarLB reflects the limitations of its
business model, particularly of its long-term earnings potential.
Although France is a large market compared with SaarLB's home
region, the bank is a niche player and is already highly exposed
to commercial real estate and renewable energy projects, which
both create concentration risk.

SaarLB's sound asset quality benefits from both a healthy German
corporate environment and a moderately recovering French real
estate market, where the bank's defaulted and problem loans are
concentrated. SaarLB also benefits from its exposures to highly
rated sovereigns and financial institutions, which account for a
material share of its gross credit exposures. Its robust
renewable energy portfolio reflects the bank's decade-long
management experience in this segment. Nevertheless, material
loan concentrations constrain our asset quality assessment
despite the bank's stable and sound non-performing loan ratio.
Market risk in SaarLB's banking book is high compared with
wholesale peers and exposes the bank to a rise in interest rates.

The bank's fully loaded common equity Tier 1 (CET1) ratio of
11.5% and total capital ratio of 14.1 % at end-1H17 are
significantly below those of its Landesbanken peers and of most
other German banks. We do not expect any material improvement at
end-2017 as its risk weighted assets (RWAs) are unlikely to have
materially decreased.

Similar to its peers, SaarLB's earnings suffer from structural
cost and margin pressure resulting from the low interest rate
environment. Its French business allows for moderate additional
margin potential primarily in corporates, but in other segments
(notably renewable energy) margins have come under pressure. We
expect profitability to have been adequate in 2017 overall, with
a major positive contribution from low risk costs. Fixed costs
are likely to remain sticky despite its ongoing efficiency
programme because of regulatory charges and the modernisation of
the bank's IT framework.

SaarLB is predominantly wholesale-funded. Its internal placement
capacity, primarily with other members of SFG and its own
clients, has resulted in a low reliance on capital markets in
recent years. The bank's funding mix is sufficiently diversified
and includes covered bonds with comfortable over-
collateralisation. Its liquidity metrics such as its liquidity
coverage ratio are above peers' and time to illiquidity for the
bank significantly exceeds regulatory requirements.

DERIVATIVE COUNTERPARTY RATING (DCR) AND DEPOSIT RATINGS
The DCR and Deposit Ratings of SaarLB are equalised with its
IDRs. We believe the bank's buffers of junior and vanilla senior
debt do not afford any obvious incremental probability of default
benefit over and above the multi-notch support benefit already
factored into its IDRs. We do not apply any uplift for above-
average recovery prospects in the event of default because of the
limited visibility on recovery levels in such circumstances. In
the highly unlikely event that SaarLB fails and is not supported
by its savings banks and state owners, its balance sheets would
most likely differ substantially from the current one.

RATING SENSITIVITIES
IDRS, SR AND SENIOR UNSECURED DEBT
The IDRs, SR and senior unsecured debt ratings are sensitive to
changes in assumptions around the propensity or ability of
SaarLB's owners to provide timely support. This could result from
a change to SFG's IDRs or changes to the owners' strategic
commitment to SaarLB or to the bank's importance to its home
region or the savings bank sector. A change to our assessment of
the risks of triggering a resolution process ahead of support for
a Landesbank more generally could also affect the bank's IDRs, SR
and senior unsecured debt ratings.

VR
SaarLB's VR is primarily sensitive to changes in asset quality
due to the bank's concentration risks. This could be triggered by
events affecting individual sectors or a general deterioration of
the operating environment. A weakening risk profile would
negatively affect the bank's VR as the resulting inflation of
RWAs would put pressure on capitalisation.

SaarLB's narrow franchise results in limited the VR's upside. An
upgrade would require a material improvement in the bank's in
capitalisation and a reduction of the bank's concentration risk.

DCR AND DEPOSIT RATINGS
The DCR and Deposit Ratings are sensitive to changes in SaarLB's
IDRs.

The rating actions are as follows:

Landesbank Saar
Long-Term IDR: affirmed at 'A-'; Outlook Stable
Short-Term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Viability Rating: affirmed at 'bb+'
Derivative Counterparty Rating: affirmed at 'A-(dcr)'
Deposit Ratings: affirmed at 'A-'/'F1'
Short-term senior unsecured debt: affirmed at 'F1'


TELE COLUMBUS: Moody's Rates EUR500MM Bond 'B2', Outlook Positive
-----------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the proposed
EUR500 million senior secured bond (due 2025) being issued by
Tele Columbus AG ("Tele Columbus" or "the company") and to its
amended EUR830 million term loan and EUR50 million Revolving
Credit Facility (RCF). At the same time the agency has affirmed
the ratings of Tele Columbus, including the B2 corporate family
rating (CFR) and the B2-PD probability of default rating (PDR).
The ratings on the existing senior secured term loan tranches
remains unchanged and Moody's expects they will be withdrawn upon
repayment once the current refinancing transaction concludes
successfully. The outlook on all ratings remains positive.

The company has sought consent from its existing bank lenders to
allow for the issuance of the bond. The bond and a term loan of
EUR830 million will replace the existing Term Loan of EUR1,305
million. Remainder of the proceeds will be used to repay the
outstanding capex facility (which will cease to exist going
forward) of EUR25 million, apart from transaction fees. The
company will benefit from a EUR50 million Revolving Credit
Facility (RCF) of which EUR21 million will remain drawn at
transaction closing.

"While the transaction is leverage neutral, it will extend Tele
Columbus' debt maturity profile, a credit positive. It will also
help the company in achieving a fixed interest rate on a portion
of its capital structure thereby insulating it against potential
rises in the future base interest rates," says Gunjan Dixit, a
Moody's Vice President -- Senior Credit Officer and lead analyst
for Tele Columbus.

"The positive ratings outlook continues to reflect our
expectation that Moody's adjusted gross debt/ EBITDA for Tele
Columbus will trend towards the threshold defined for upward
ratings pressure of below 4.5x in the next 12-18 months," adds
Ms. Dixit.

RATINGS RATIONALE

The B2 rating on the amended loan and new notes reflects the fact
that these instruments rank pari-passu and benefit from the same
security and guarantee structure. All of Tele Columbus debt will
be secured against share pledges of key operating subsidiaries
and will benefit from guarantees from operating entities
accounting for 80% of group EBITDA/ 90% of group assets.

In 2017, Tele Columbus revenue and normalized EBITDA saw good
growth of 4.2% and 6.2%, respectively. However, EBITDA growth was
below the company's guidance and Moody's expectation of high
single digit growth for the year. During the year, Tele Columbus
made significant progress on the integration of primacom and
pepcom, including the migration of Tele Columbus customer data
onto the target IT architecture, the launch of the new brand PYUR
and the go-live of the new product portfolio. However, due to the
complexity of the various integration and migration projects, the
company failed to achieve its EBITDA guidance for 2017. Some of
the synergy realization was also delayed and the expenditure on
non-recurring items (of EUR67.4 million compared to EUR32.9
million in 2016) was significantly higher than Moody's had
anticipated.

2018 will see the finalisation of integration-related projects
such as customer data migration as well as network and IT
optimisation. In addition, following the entire takeover of KMS
(the legal entity behind pepcom), the PYUR brand and product
portfolio will now be rolled out in its footprint. Nevertheless,
Moody's expects Tele Columbus to achieve mid-single digit revenue
growth and a normalized EBITDA of EUR280-290 million in 2018
(compared to EUR264.7 million in 2017) in line with its guidance.

Tele Columbus' reported net debt/normalized EBITDA stood at 5.0x
for the 12 months ended December 31, 2017 compared with around
4.3x as of March 2015, prior to the acquisitions of primacom and
pepcom. The company's leverage is currently exceeding its own
publicly stated medium term net debt/normalized EBITDA target of
3.0x-4.0x, but it aims to return to its target corridor in the
next 12-18 months. Moody's-adjusted Gross debt/ EBITDA for Tele
Columbus stood at 4.9x for the last twelve months ending December
31, 2017. Moody's expects the company to remain focused on
achieving deleveraging such that its Gross debt/ EBITDA ratio (as
adjusted by Moody's) trends below 4.5x in the next 12-18 months.

As of December 31, 2017, 64.8% of total homes connected of Tele
Columbus' network were fully upgraded to two-way communication,
and the company continues to invest toward its medium-term target
of 71%. In line with the company's investment strategy, its
reported capital spending/sales was high at 31.4% for 2017, after
which Moody's expect it to gradually decline toward the
historical industry average of around 20%-25%. The reduction in
capex should enable the company to generate positive free cash
flow (after capex) from 2018 onwards. Whilst the company
currently does not pay dividends, Moody's expects that growing
free cash flow generation will increase pressure to establish a
dividend policy, which the agency believes will have to balance
shareholder and creditor interests, within the limits of the
company's net leverage target of between 3.0x and 4.0x.

Moody's regards Tele Columbus' liquidity as sufficient for its
near-term operational needs. At transaction closing, the company
will have cash and cash equivalents of around EUR25 million and
access to a RCF of EUR50 million, of which EUR1 million will
remain drawn. The bond issue will extend the company's debt
maturity profile and its next material debt maturity will be in
October 2024, when the EUR830 million of term loan will fall due.

Tele Columbus's B2 CFR continues to reflect the (1) company's
solid market position in core eastern German territories as well
as key cities such as Hamburg, Berlin, Leipzig and Munich; (2)
high quality of the fully owned and upgraded network; (3)
significantly increased financial and operational flexibility
after its IPO in January 2015; (4) company's well defined growth
strategy for the medium term; and (5) its good cost control,
supporting overall Normalized EBITDA growth.

However, the rating also reflects (1) the relatively small scale
of company's operations compared with other rated peers; (2)
intense competition mainly from telecoms (in particular Vodafone)
especially for large housing association contracts; (3) high
reported leverage, above the company's medium-term target; and
(4) large capital spending programme which has thus far
constrained free cash flow generation.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects Moody's view that the company
remains on track to achieve its medium term revenue and
Normalized EBITDA growth guidance of mid-to-high single digit and
high single digit, respectively. The agency would also expect the
company to have future dividend policy that allows it to operate
within its stated leverage policy target ratio of 3.0x-4.0x on a
sustained basis.

In addition, the positive outlook assumes that the company will
pursue opportunities for consolidation of smaller German cable
companies and that those will be funded without a material
increase in leverage.

WHAT COULD CHANGE THE RATING UP/DOWN

Upgrade ratings pressure is likely to develop with (1) steady
operating progress including a continued growth in in the share
of homes connected and upgraded for two-way communication while
maintaining a stable homes connected base; and (2) Moody's
adjusted gross debt/EBITDA ratio is maintained sustainably below
4.5x together with positive free cash flow generation (after
capex and dividends).

Downward pressure for the rating or outlook could ensue in case
of (1) a more than temporary deterioration of Tele Columbus'
Moody's adjusted gross debt/EBITDA leverage ratio to a level
above 5.5x; (2) a failure in strategy execution e.g. RGU per
subscriber and ARPU growth stall; or (3) the company begins to
experience a material deterioration in the "homes connected"
base.

LIST OF AFFECTED RATINGS

Issuer: Tele Columbus AG

Assignments:

Senior Secured Bank Credit Facility, Assigned B2

Senior Secured Regular Bond/Debenture, Assigned B2

Affirmations:

LT Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Withdrawals:

Senior Secured Bank Credit Facility, previously rated B2

Outlook Actions:

Outlook, Remains Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in January 2017.

Tele Columbus AG is a holding company, which through its
subsidiaries offers basic cable television services (CATV),
premium TV services and, where the network is migrated and
upgraded, Internet and telephony services in Germany where it is
the third largest cable operator. The company is based in Berlin,
Germany and reported revenue of EUR497 million and EBITDA of
EUR264 for the last twelve months period to December 31, 2017.


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


ALPSTAR CLO 2: S&P Lowers Class E Notes Rating to 'B (sf)'
----------------------------------------------------------
S&P Global Ratings took various credit rating actions in Alpstar
CLO 2 PLC.

The rating actions follow S&P's analysis of the transaction's
performance and the application of our relevant criteria.

S&P said, "Since our previous review in January 2017, the class A
notes have fully amortized, and the class B notes have amortized
to 54% of their original size. As a result, despite losses due to
trading, asset defaults, and adverse exchange rate movements, the
available credit enhancement as a percentage of the portfolio has
increased for all the rated notes."

According to the latest investor report, the transaction
currently holds enough cash to fully redeem the class B notes on
the next payment date. S&P has therefore affirmed its 'AAA (sf)'
rating on the class B notes.

S&P said, "We expect the class C notes to become the most senior
notes on the next payment date. With 78% credit enhancement, the
class C notes can withstand our 'AAA' stresses and still pay
timely interest and repay principal by their legal maturity date,
in our view. We have therefore raised to 'AAA (sf)' from 'AA+
(sf)' our rating on the class C notes.

"We note that the obligor concentration in the portfolio has
increased, with 15 obligors down from 41 at our previous review.
This had a negative effect on the largest obligor test for the
class D notes. However, as the available credit enhancement for
the class D notes has increased significantly (to 34% from 14%),
we believe it is still commensurate with a 'BBB (sf)' rating. We
have therefore affirmed our 'BBB (sf)' rating on the class D
notes.

"The class E notes benefitted the least from the increase in
credit enhancement (to 16% from 9%). We also note that exposure
to non-euro assets had a negative effect on the class E notes'
cashflows. Since our previous review, the proportion of non-euro
collateral increased to 14% from 10% of the total collateral
(using the then-current exchange rates), while the liabilities
denominated in the same currencies have fully redeemed. This has
rendered the class E notes more sensitive to our "euro
appreciation" scenario. In addition, the increase in obligor
concentration also had a negative effect on our largest obligor
test for the class E notes. We have therefore lowered to 'B (sf)'
from 'BB (sf)' our rating on the class E notes as we believe the
notes can withstand mild stresses."

Alpstar 2 is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to mainly European
speculative-grade corporate firms and is managed by Chenavari
Financial Group Ltd. The transaction closed in April 2007 and its
reinvestment period ended in May 2014. At closing, the issuer
entered into a variable funding notes purchase agreement, under
which it could draw in euro, British pounds sterling, and U.S.
dollars. The variable funding notes are now fully redeemed.

  RATINGS LIST

  Alpstar CLO 2 PLC
  EUR600 mil secured floating-rate notes
                                      Rating
  Class            Identifier         To           From
  B                XS0291706223       AAA (sf)     AAA (sf)
  C                XS0291711579       AAA (sf)     AA+ (sf)
  D                XS0291722006       BBB (sf)     BBB (sf)
  E                XS0291723319       B (sf)       BB (sf)


AURIUM CLO IV: S&P Affirms B- Rating on EUR11.8MM Class F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Aurium CLO IV
DAC's class A-1, A-2, B, C, D, E, and F notes. The issuer also
issued unrated subordinated notes.

Aurium CLO IV is a European cash flow collateralized loan
obligation (CLO), securitizing a portfolio of primarily senior
secured leveraged loans and bonds. Spire Management Ltd. manages
the transaction.

The ratings assigned to the notes reflect S&P's assessment of:

-- The diversified collateral pool, which consists primarily of
    broadly syndicated speculative-grade senior secured term
    loans and bonds that are governed by collateral quality and
    portfolio profile tests.

-- The credit enhancement provided through the subordination of
    cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect
    the performance of the rated notes through collateral
    selection, ongoing portfolio management, and trading.

-- The transaction's legal structure, which is bankruptcy
    remote.

Under the transaction documents, the rated notes pay quarterly
interest unless there is a frequency switch event. Following
this, the notes permanently switch to semiannual payment. The
portfolio's reinvestment period ends approximately 4.25 years
after closing.

S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average 'B'
rating. We consider that the portfolio is well-diversified,
primarily comprising broadly syndicated speculative-grade senior
secured term loans and senior secured bonds. Therefore, we have
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow collateralized debt obligations.

"In our cash flow analysis, we used the EUR400 million target par
amount, the covenanted weighted-average spread (3.55%), the
reference weighted-average coupon (5.25%), and the minimum
weighted-average recovery rate of 32.50% at the 'AAA' level as
indicated by the collateral manager. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios for
each liability rating category."

Citibank N.A., London Branch is the bank account provider and
custodian. The documented downgrade remedies are in line with its
current counterparty criteria.

S&P said, "Under our structured finance ratings above the
sovereign criteria, we consider that the transaction's exposure
to country risk is sufficiently mitigated at the assigned rating
levels. We consider that the issuer is bankruptcy remote, in
accordance with our legal criteria. Following our analysis of the
credit, cash flow, counterparty, operational, and legal risks, we
believe our ratings are commensurate with the available credit
enhancement for each class of notes."

Ratings Assigned

  Aurium CLO IV DAC
  EUR407.60 Million Senior Secured Fixed- And Floating-Rate Notes
  (Including EUR36.30 Million Unrated Subordinated Notes)

  Class          Rating            Amount
                                 (mil. EUR)

  A-1            AAA (sf)          199.00
  A-2            AAA (sf)           30.00
  B              AA (sf)            54.00
  C              A (sf)             32.00
  D              BBB (sf)           24.20
  E              BB- (sf)           20.30
  F              B- (sf)            11.80
  Sub            NR                 36.30

  NR--Not rated.
  Sub--Subordinated.



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


KAZAGROFINANCE: Fitch Affirms 'BB+' Senior Unsecured Debt Rating
----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Development Bank of Kazakhstan (DBK) and House
Construction Savings Bank of Kazakhstan (HCSBK) at 'BBB-'. The
Outlooks are Stable. Fitch has also affirmed KazAgroFinance's
(KAF) Long-Term IDRs at 'BB+' with Negative Outlook. A full list
of rating actions is at the end of this rating action commentary.

KEY RATING DRIVERS
ISSUER RATINGS
The affirmation of the Long-Term IDRs and Support Rating Floors
(SRFs) reflects Fitch's view of a high propensity of the
Kazakhstani authorities to support the institutions, in case of
need, due to:
- 100% ultimate (although indirect) state ownership.
- important policy roles in the development of non-extracting
economic sectors (DBK), the house savings and mortgage system
(HCSBK) and provision of state-subsidised financial leasing to
the agricultural sector (KAF) in Kazakhstan.
- a track record of state funding and equity injections to
support their expansion (HCSBK and KAF) or solvency (DBK).
- the moderate cost of any support that might be required, given
DBK's wholesale debt of 3% of Kazakhstan's 2017 GDP or 16% of
sovereign FX reserves at end-2017, and the other two
institutions' wholesale debt being negligible relative to
sovereign financial resources.
- guarantees on a third of DBK's third-party liabilities from
Sovereign Wealth Fund Samruk-Kazyna (BBB/Stable).
- KAF qualifying as a material subsidiary for its owner, KazAgro
National management holding JSC (BBB-/Stable), and the latter's
USD2 billion Eurobond programme containing a cross-default clause
in case of subsidiary default.
- potential adverse reputational, economic or social (in the
cases of HCSBK and KAF) consequences of not supporting them.

DBK and HCSBK are rated one notch below the sovereign's 'BBB'
rating primarily due to (i) indirect state ownership through JSC
National Management Holding Baiterek (BBB/Stable), giving rise to
a moderate risk of delays with receipt and pass-through of
sovereign support, as Baiterek's own financial resources are
limited; (ii) somewhat limited government supervision of both
banks, as no government officials sit on their boards of
directors, and DBK is exempt from regulatory oversight by the
National Bank of Kazakhstan; and (iii) the moderate risk that the
sovereign could cease providing full support to all quasi-
sovereign entities before defaulting on its own obligations in a
severe stress scenario.

KAF is rated two notches below the sovereign mainly due to
Fitch's view of its somewhat lower importance for the country's
economy and financial system compared with DBK and HCSBK. The
Negative Outlook on KAF's ratings reflects the fact that there
are announced plans to privatise a controlling stake in KAF by
end-2020. Although selling a stake at book value to an
investment-grade rated buyer, as required by the privatisation
plan, may be difficult, a sale to some local quasi-sovereign fund
or another entity is not inconceivable, which may result in some
weakening of the state support propensity.

HCSBK
HCSBK is unlikely to need extraordinary support in the medium
term in light of resilient asset quality (0.3% non-performing
loan ratio) and a strong capital buffer, as reflected in a Fitch
Core Capital (FCC) ratio of 57% at end-2017. The comfortable
liquidity cushion (38% of total assets at end-2017) is currently
sufficient to meet the bank's contingent liability for future
mortgage issuance up to end-2021.

Fitch has not assigned a Long-Term Foreign-Currency IDR to HCSBK
as the bank's foreign-currency transactions are immaterial for
its business.

DBK
DBK may require additional capital due to its inherently risky
business of lending to greenfields and projects that are
economically important but may not be very profitable. DBK's
high-risk assets, as assessed by Fitch, were equal to around 1x
FCC at end-2017, comprising NPLs (1.3% of gross loans),
restructured loans (3%), large reportedly performing loans with
significant accrued interest (14%) and some other risky assets.
As a moderate mitigating factor, government support could be
provided to some of the problem borrowers due to their importance
for the economy.

DBK's FCC ratio stood at 15% of RWAs at end-2017, which is only a
moderate buffer relative to its risky assets. Positively, the
bank benefits from regular capital injections from the state, the
latest taking place in December 2017 (equal to 1% of RWAs).

The bank's liquidity position is solid, with total available
liquidity comfortably covering total wholesale debt repayments up
until end-2021.

KAF
KAF is less likely to need additional solvency support in the
medium term due to a high capital buffer (36% equity-to-assets
ratio of at end-2017) relative to unreserved problems, focus on
higher-quality lease issuance and modest growth. NPLs and
restructured exposures of a mostly legacy nature (15% and 12% of
gross exposures at end-2017, respectively) were 43% covered by
reserves. If total problematic exposures were fully provisioned,
the equity-to-assets ratio would still be a solid 22%. Given the
moderate planned growth of 10% in the next three years capital
pressure could only stem from some broader deterioration of the
agricultural sector, which is cyclical by nature.

KAF is 70% funded by the parent through a number of long-term
credit facilities including low-cost loans and bonds. A
comfortable liquidity buffer equal to 23% of liabilities was
sufficient to cover obligations due within 12 months, including a
large wholesale debt repayment (5% of liabilities) in mid-2018.

DEBT RATINGS
The senior unsecured debt ratings of DBK and KAF are equalised
with their IDRs and (in the case of KAF) National Long-Term
rating.

RATING SENSITIVITIES
The ratings of all three policy institutions are sensitive to
changes in the sovereign ratings.

The ratings of DBK or HCSBK could be upgraded and equalised with
the sovereign if the banks become directly owned by the
government and state officials become more directly involved in
the oversight of the institutions. For DBK, upside rating
potential may also emerge if the government replaces or
guarantees most of its wholesale funding. Negative rating action
on the banks could follow a marked weakening of their policy
roles or association with the sovereign. However, neither
scenario is currently expected by Fitch.

KAF may be downgraded if the plans to privatise a controlling
stake go ahead and Fitch views support as less reliable following
the sale. Conversely, if the government decides to retain control
of KAF, then its ratings could stabilise at their current level.

The rating actions are as follows:

Development Bank of Kazakhstan
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook Stable
Short-Term Local-Currency IDR: affirmed at 'F3'
Long-Term Foreign-Currency IDR: affirmed at 'BBB-'; Outlook
Stable
Short-Term Foreign-Currency IDR: affirmed at 'F3'
Support Rating: affirmed at '2'
Support Rating Floor: affirmed at 'BBB-'
Long term senior unsecured debt rating: affirmed at 'BBB-'
Short term senior unsecured debt rating: affirmed at 'F3'

House Construction Savings Bank of Kazakhstan
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook Stable
Short-Term Local-Currency IDR: affirmed at 'F3'
National Long-Term Rating: affirmed at 'AA+(kaz)'; Outlook Stable
Support Rating: affirmed at '2'
Support Rating Floor: affirmed at 'BBB-'

KazAgroFinance
Long-Term Foreign- and Local-Currency IDRs: affirmed at 'BB+';
Outlooks Negative
Short-Term Foreign-Currency IDR: affirmed at 'B'
National Long-Term rating: affirmed at 'AA(kaz)'; Outlook
Negative
Support Rating: affirmed at '3'
Support Rating Floor: affirmed at 'BB+'
Senior unsecured debt rating: affirmed at 'BB+'
National senior unsecured debt rating: affirmed at 'AA(kaz)'
Expected senior unsecured debt ratings: affirmed at
'BB+(EXP)'/'AA(kaz)(EXP)'


KAZAKHSTAN TEMIR: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'BB-' long-term
issuer credit rating on Kazakhstan's national railroad company,
Kazakhstan Temir Zholy (KTZ), and its core subsidiary, freight-
wagon owner Kaztemirtrans JSC (KTT). The outlook is stable.
We also affirmed our Kazakhstan national scale ratings on KTZ and
KTT at 'kzBBB+'.

S&P said, "At the same time, we affirmed our 'BB-' issue ratings
on KTZ's senior unsecured bonds.

"The affirmation of the rating reflects our expectation that
KTZ's debt to EBITDA will remain above 5x and funds from
operations (FFO) to debt below 12% in the coming year, while the
group's stronger operating results will be balanced by an
expectation of a significant increase in capital expenditures
(capex) in 2018. We therefore continue to view KTZ's financial
risk profile as highly leveraged.

"We think that the group's EBITDA could grow by 13%-15% in 2018
to about Kazakhstani tenge (KZT) 245 billion-KZT250 billion,
supported by the 7% freight tariff increase the government
approved for the year and an expectation of up to 3% freight
volumes growth. At the same time, we forecast the group's capex
will jump to about KZT375 billion, a meaningful increase from the
KZT231 billion spent in 2017. KTZ might require external debt
financing for a significant part of this spending. The government
has not approved any capital injections to support the group's
investment program, as opposed to the previous years' regular
injections. We therefore expect the group's debt-to-EBITDA ratio
to be around 5.7x-6.0x and FFO to debt to be 9%-12% in 2018."

Increased spending primarily reflects the development of KTZ's
rail network and modernization of its rolling stock. KTZ
concluded an agreement with General Electric to purchase up to
300 locomotives in the coming years for $900 million (about
KZT295 billion). S&P said, "We understand that the first
locomotives are due to arrive in 2019, with KTZ being flexible on
future deliveries. We estimate that KTZ will have some
flexibility in its KZT375 billion spending plan for 2018, as the
group's assets have been reasonably modernized in the last
decade, and we estimate the minimum annual capex requirement for
KTZ at about KZT150 billion-KZT200 billion per year." Should KTZ
postpone a meaningful part of the plan for 2018, its credit
ratios might be significantly stronger at the year-end.

The group pursued a more proactive approach to maturity
management and streamlined liquidity management and control over
subsidiaries. S&P has revised its assessment of KTZ's management
and governance to fair from weak. In 2017, KTZ issued three
issues of notes, one for Russian ruble 15 billion, one for KZT25
billion, and one for US$780 million, primarily to refinance its
debt, including the existing notes maturing in 2020. After
refinancing, the maturity profile was extended and the
refinancing risk was reduced.

S&P said, "As a result of ongoing operating and management
improvements, we now assess KTZ's stand-alone credit quality at
'b', up from 'b-' before.

The KTZ group maintains its leading role in Kazakhstan's
transportation sector. Tariff regulation remains relatively
favorable, as demonstrated by the 7% freight tariff increase for
2018, but tariff visibility generally remains limited to one
year. The group's cargo mix is skewed toward commodity-type
cargoes, such as coal, iron ore, metals, and oil, which tend to
be volatile. At the same time, the share of more profitable
transit revenues has moderately increased to about 24% of total
in 2017 from about 21% in 2014.

S&P said, "The stable outlook incorporates our view that KTZ will
continue to report high leverage over the next 12 months. We
expect that the group's S&P Global Ratings-adjusted debt-to-
EBITDA ratio will remain above 5x and its FFO to debt below 12%
on the back of improving operating performance and increased
capex.
We also assume that KTZ will sufficiently and timely fund all of
its liquidity needs, including debt maturities and maintenance
capex. Furthermore, we expect that KTZ will obtain waivers for
the covenants it might breach, as it has done in the past."

Rating upside would be possible if KTZ's financial metrics
strengthen sustainably, namely FFO to debt above 12% and debt to
EBITDA below 5x as a result of considerable improvements in
EBITDA generation in combination with more conservative capex
spending and no material weakening in liquidity. S&P said, "We
would expect the group to continue to proactively manage its debt
maturities and ensure refinancing obligations well in advance of
maturities. At the same time, we would expect KTZ to have no
issue obtaining waivers for any breached covenants."

S&P said, "We could lower the rating on KTZ if its liquidity
weakens materially because of unfunded near-term maturities or an
inability to obtain waivers on the breached covenants. Reduced
government support could also result in a negative rating
action."


KAZTRANSOIL: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'BB-' long-term
issuer credit rating on Kazakhstan-based oil pipeline operator
KazTransOil (KTO). The outlook is stable.

S&P said, "The affirmation reflects our view of KTO's unchanged
stand-alone credit profile (SACP) of 'bb+', the company's
strategic importance for its parent, national oil champion
KazMunayGas (KMG), as well as our assessment that there is a high
likelihood that KTO would receive timely and sufficient support
from the government of Kazakhstan if needed.

"KTO's strategic importance to the KMG group is underpinned, in
our view, by the company's role as the main oil pipeline network
operator in the country, transporting almost half of oil volumes
produced in the country. This also leads us to consider KTO's
role for the government as very important and the link between
the company and the government as strong, albeit indirect.
However, the rating on KTO remains constrained by the rating on
its parent, KMG (BB-/Stable/--). We do not expect to rate KTO
above the parent, which closely controls KTO's strategy and
operations, owns several interrelated business segments, and
holds significant debt at its level."

KTO reported higher-than-expected revenues for 2017, resulting in
S&P Global Ratings-adjusted EBITDA of Kazakhstani tenge (KZT) 111
billion (approximately $340 million). The oil turnover reached
KZT40 billion ton-kilometers, 12% more than in 2016, on the back
of:

-- An additional oil volumes  transported from Kashagan during
    that field's first full operating year;

-- New transit volumes of Russian oil to Uzbekistan, started in
    November 2017; and

-- Transit of additional 3 million tons of Russian oil to China
    (agreed in December 2016 under a supplementary contract).

KTO maintains good financial flexibility, thanks to its adequate
cash position, flexibility to defer most of its new projects, and
available borrowing capacity. S&P said, "In 2018-2019, we expect
KTO to continue generating strongly positive free operating cash
flow on the back of the recent tariff increases for transit and
export that the company announced. We think that KTO's sizable
accumulated cash balances cover all existing investment projects
and allow for high dividend payouts."

The KTO group has no debt at the company level. As of March 31,
2018, there was debt of $541.5 million at the level of the
Kazakhstan-China Pipeline (KCP), KTO's 50-50 joint venture (JV)
with China National Oil and Gas Exploration and Development Corp.
KCP generates healthy cash flows and KTO expects the JV will be
able to serve its debt. The track record confirms that KTO has
not funded KCP and has no intention to provide financial support
in the future. S&P said, "We therefore do not include 50% of the
JV's debt in our calculation of KTO's S&P Global Ratings-adjusted
debt figure. We are also therefore revising our view of KTO's
financial risk profile to minimal from modest. We continue to
assess the company's SACP at bb+."

KTO benefits from its role as a strategic infrastructure services
provider in Kazakhstan. The oil and gas sector is Kazakhstan's
principal source of export earnings and fiscal revenues. With
substantial oil reserves and production exceeding internal
consumption, Kazakhstan remains highly dependent on its oil
export facilities.

KTO enjoys a solid market position and limited competition from
rail and tanker transport, owing to Kazakhstan's land-locked
location far from key export markets, and lower cost of oil
pipeline transportation. In 2017, KTO accepted 46.3 million tons
of crude oil, of which 36.2 million tons were from Kazakhstan's
shippers, representing about 42% of total production in the
country. Caspian Pipeline Consortium (CPC), KTO's main
competitor, annually transports more than half of all export
crude oil from Kazakhstan.

KTO benefits from its diversification by routes. It delivers oil
to local refineries, and to rail and port facilities, via its
major Atyrau-Samara export route, and facilitates the transit of
Russian oil to China. Its main competitor CPC has only one route,
from the oil fields in Western Kazakhstan via Russia to the Black
Sea port of Novorossiysk.

The company's main weaknesses include its potential involvement
in new construction projects, which might result in weakened
credit metrics and a more aggressive financial risk profile, and
its exposure to potential dividend pressure from KMG.

In the longer term, the key risk for KTO is that gradually
declining extraction volumes at the mature oilfields of key
customers, KMG group entities, could reduce future transportation
volumes and depress operating cash flows. The main oil production
growth impetus in Kazakhstan is likely to come from Kashagan and,
over time, TengizChevroil, which use mainly CPC's pipeline.
Historically, CPC's advantage was its ability to protect oil
quality via a quality bank mechanism, which KTO does not have.
KTO aims to improve the competitive advantage of its routes. In
early 2017, KTO, in cooperation with Transneft, started to
deliver Kashagan crude oil via the Atyrau-Samara-Novorossiysk
route, together with more expensive low-sulfur Siberian light
oil, which helps protect oil quality and results in higher profit
for the shipper. Also, S&P believes that the main customers are
interested in diversifying their transportation options, which to
a degree supports KTO's market position.

S&P said, "We continue to assess country risk in Kazakhstan as
high and consider tariff regulation to be opaque. In 2015, the
regulator approved domestic tariffs for a five-year period, with
modest increases capped at 10% each year. In our view, this adds
predictability to KTO's cash flows from domestic operations. At
the same time, KTO is not protected from unfavorable revisions of
the tariff, although the regulator has not made such revisions so
far.

"The stable outlook reflects that on KTO's immediate parent, KMG,
and our expectations of solid credit metrics supported by
profitable midstream operations and absence of debt at the KTO
level. We believe KTO cannot be insulated from the risks
attributable to the group, therefore we do not rate subsidiary
above the parent.

"We expect that any negative rating action on KTO would likely
stem from a similar rating action on KMG rather than from a
change in KTO's SACP, given significant headroom in the rating.
Moderate increase in debt leverage will not lead to downgrade.
Although very unlikely to occur in the medium term, material
multinotch deterioration of the SACP could lead us to review our
assessment of the likelihood of support from the state or parent,
and to lower the ratings.

"We would likely raise the rating on KTO if we took a similar
action on KMG."


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


TRINSEO SA: Moody's Raises CFR to Ba3, Outlook Stable
-----------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating
(CFR) of Trinseo S.A to Ba3 from B1 based on a more constructive
view of the styrene and polystyrene markets over the next two to
three years, as well as the potential for growth in its
Performance Materials Division. Moody's also affirmed its
Speculative Grade Liquidity Rating at SGL-1. The outlook is
stable.

"We expect styrene and polystyrene to remain cyclical commodities
over the longer term. However, limited announcements of new
capacity outside of Asia despite three years of strong profit
margins bodes well for profits through 2020," stated John Rogers,
Senior Vice President at Moody's and lead analyst on Trinseo.

Ratings upgraded:

Trinseo S.A.

Corporate Family Rating to Ba3 from B1

Probability of Default Rating to Ba3-PD from B1-PD

Trinseo Materials Operating S.C.A.

Guaranteed senior secured revolver and term loan to Ba2 (LGD3)
from Ba3 (LGD3)

Guaranteed senior unsecured notes to B2 (LGD5) from B3 (LGD5)

Ratings affirmed:

Trinseo S.A.

Speculative Grade Liquidity Rating at SGL-1

Outlook

Trinseo S.A. at stable

Trinseo Materials Operating S.C.A. at stable

RATINGS RATIONALE

The upgrade of Trinseo's CFR to Ba3 is supported by good
intermediate term fundamentals in styrene and polystyrene,
particularly in Europe and the Americas. Despite three years of
strong margins, announcements of new capacity have been
relatively small and limited to existing producers. Additionally,
Trinseo's Performance Materials Division had relatively flat
performance in 2017 due to volatility in raw material prices and
other one-time issues, but volume growth in Synthetic Rubber and
Performance Plastics was strong, which should bode well for 2018.
The Ba3 CFR is supported by its size in terms of revenue,
significant and sustainable market positions in each of its
segments, relatively stable profitability in its Performance
Materials Division and an experienced management team.

Moody's expects Trinseo's EBITDA to remain over $600 million for
the next several years despite volatility in key feedstocks.
Specifically, if feedstock prices remain subdued in 2018, the
Performance Materials Division could easily generate more than
$350 million of EBITDA. While the company is able to pass through
increases in raw material costs, albeit with a delay, the
combination of raw material volatility along with the timing of
customer purchases can create a significant quarter-to-quarter
volatility in profitability.

Moody's still believes that styrene and polystyrene will remain
cyclical and the next downturn could begin in 2021. New capacity
in China is likely to reduce imports and redirect more exports
from the Middle East and the US into Europe, leading to a market
downturn over the next several years. Due to China's recent focus
on environmental stewardship, the exact timing of this new
capacity build is somewhat uncertain, but likely to occur as the
projects that will provide the raw material, benzene, are going
forward.

Management has targeted leverage of 1-2x on an ongoing basis;
however, debt is not expected to decline beyond required
amortizations. Due to continued strong performance in its Basic
Plastics (polystyrene) and Feedstocks (styrene) Division, credit
metrics are expected to remain unusually strong for the rating
with Debt/EBITDA of less than 2.5x and Retained Cash Flow/Debt of
over 25%. These metrics include Moody's Standard Adjustments to
financial statements, which include the capitalizations of
pensions and operating leases. Moody's adjustments add roughly
$260 million to debt.

The SGL-1 rating reflects very good liquidity primarily supported
by cash balances of roughly $432 million (as of December 31,
2017) and the expectation that free cash flow will remain above
$200 million in 2018. The company also has access to an undrawn
$375 million revolver and a $150 million A/R securitization that
had minimal outstandings at year end but will mature in May 2019.
The company has a springing covenant in its revolver which
requires the company to maintain a pro forma first lien net
leverage ratio of less than 2.0x, if greater than 30% is drawn.
The company is expected to remain well in compliance with this
covenant over the next several years.

The stable outlook reflects the expectation that financial
performance will remain at or near record levels. The CFR could
be upgraded if Performance Materials Division EBITDA rises
sustainably toward $400 million, balance sheet debt remains near
$1.2 billion and free cash flow remains above $150 million. This
would also imply that leverage during the next downturn would not
rise above 4x. The rating could be downgraded if the company
significantly increases leverage to fund acquisitions or share
repurchases, resulting in leverage of above 2.5x during the
current styrene upcycle, or if the company fails to generate free
cash flow on a sustained basis. Moody's noted that Trinseo is
moving its polycarbonate, ABS and SAN product lines to the
Performance Materials Division in 2018 from the Basic Plastics
segment, The upgrade trigger for the Performance Materials
Division profitability will have to be reset once additional
information on these product lines is provided.

The principal methodology used in these ratings was Chemical
Industry published in January 2018.

Trinseo S.A. is the world's largest producer of styrene butadiene
(SB) latex, the largest European producer of SSBR rubber
(solution styrene butadiene rubber), the third largest global
producer of polystyrene and a sizable producer of polycarbonate
resins and engineered polymer blends. In 2017, Trinseo had
revenues of over $4 billion, 16 manufacturing sites around the
world, and over 2,200 employees.


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


SUNSHINE MID: Moody's Assigns Definitive B2 Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a Caa1 senior unsecured
instrument rating to Sunshine Mid B.V.'s proposed EUR445 million
senior unsecured notes due 2026. Sunshine Mid B.V. ("Midco") is
the company controlled by funds managed and advised by PAI
Partners and bcIMC which acquired Refresco Group N.V.
("Refresco").

Concurrently, Moody's has assigned a definitive B2 corporate
family rating to Midco, and a Probability of Default Rating (PDR)
of B2-PD; definitive B1 instrument ratings to the EUR1,217
million senior secured term loan B1 due 2025, the GBP200 million
equivalent senior secured term loan B2 due 2025, the USD620
million equivalent senior secured term loan B3 due 2025, and the
new EUR200 million revolving credit facility (RCF) due 2024
issued by Sunshine Investments B.V. (a fully owned subsidiary by
Midco). Outlook on the ratings is stable.

Moody's has also withdrawn the Ba3 LT Corporate Family Rating,
Ba3-PD Probability of Default Rating, and all the instruments
ratings assigned at Refresco as the debt obligations have been
repaid following the acquisition.

"Proceeds from the bond issuance will be used to refinance the
EUR445 million bridge facility originally used for the
acquisition of Refresco, and pay related fees and expenses
related to the transactions," says Ernesto Bisagno, a Moody's
Vice President -- Senior Credit Officer. He adds, "the Caa1
rating is two notches below the B3 corporate family rating given
the notes are contractually subordinated to the Senior Lender
Liabilities".

RATINGS RATIONALE

The Caa1 rating on the EUR445 million proposed unsecured notes
reflects its contractual subordination to the Group's Senior
Lender Liabilities, including the EUR1,958 million term loans and
the EUR200 million RCF, which are 1st lien instruments with B1
ratings on all tranches.

The EUR445 million notes will refinance the unsecured bridge
facility (unrated) which was part of the original financing
package. The acquisition of Refresco completed in March 2018 and
also included the bottling activities of Cott Corporation (B1
stable) bought in January.

The weakly positioned B2 CFR balances the high pro-forma Moody's-
adjusted debt / EBITDA of 7.1x at year-end 2017, and Moody's
expectation that leverage will reduce towards 6.5x in the next 12
to 18 months driven by cost synergies.

Moody's has withdrawn the rating for reorganisation purposes.


VODAFONEZIGGO GROUP: Fitch Lowers IDR to B+, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has downgraded VodafoneZiggo Group B.V.'s (VZ)
Long-Term Issuer Default Rating (IDR) to 'B+' from 'BB-'. All
associated instrument ratings have been downgraded by one notch.
The Outlook on the IDR is Stable.

Since assigning VZ's rating in December 2016, leverage was high
for a 'BB-' rating. However, the Negative Outlook on the rating
reflected some expectation of deleveraging as the business
absorbed a series of mergers and an operating environment that
was expected to improve. Integration progress has been made and
we continue to expect an easing in market conditions. However,
Fitch does not now expect the business to reduce funds from
operations (FFO) net leverage to below its downgrade threshold of
5.2x in the medium term and hence the downgrade.

Our rating case envisages the metric remaining at around 5.5x
over the next four years, despite our expectations that revenues
will stabilise and targeted synergies will flow through to margin
expansion. The joint venture structure and pattern of
distributions established so far suggest that shareholder
payments will keep leverage high and that the ratings therefore
sit more consistently with the peer group at 'B+'.

KEY RATING DRIVERS
Shareholder Payments Key Financial: FFO net leverage at YE17 was
5.7x. This compares with the downgrade threshold at 'BB-' of
5.2x. In Fitch's view, the key to deleveraging is the level at
which shareholder payments are set. The level of payments made in
2017 (EUR908 million) along with guidance for cash returns of
between EUR600 million to EUR800 million in 2018, suggests that
distributions will remain high. Our rating case assumption is for
distributions to remain at the top end of this range over the
next three years, with a resulting forecast leverage that remains
at around 5.5x, positioning the IDR more comfortably at B+.

Stable Outlook: Fitch regards VZ's operating profile to be strong
despite operating conditions remaining tough. The joint venture
with Vodafone's Dutch mobile operations has enhanced the business
profile, while laying the groundwork for a more stable convergent
market. The mobile market may further consolidate with the
announced T-Mobile/Tele2 transaction. We believe that VZ should
benefit from a more stable market, deliver planned synergies and
strengthened cash flow generation. Even allowing for higher
distributions than our current assumptions the ratings have
reasonable headroom relative to a downgrade leverage threshold at
the 'B+' level of 6.0x.

Dutch Telecoms Market Pressure: The Dutch telecoms market has
been through a period of sustained pressure. The incumbent, KPN,
has invested effectively in fibre and TV, while a four-player
mobile market has been challenged by the presence of disruptive
challenger Tele2. An aggregate market contraction (including
subscription TV) of 9% between 2013 and 2016 has been driven by
fixed revenues down 14%. These trends, although easing, continued
into 2017 with KPN's Dutch revenues down by 2.5% and VZ
contracting by 3.7%.

Cable Operations Stabilised: Pressures in the cable business
following the 2014 merger of Ziggo and UPC have been addressed.
An accelerated integration of cable operations covering the whole
of the country had proved disruptive leading to poor customer
experience; cable revenues were down 2% in 2016. Revenue trends
are now stabilising, with total cable revenues flat in 2017, a
performance driven by strong B2B results which were up 3.9%;
while consumer was down 0.7% but with trends improving through
2H17. Fitch considers this an important step in a market where
competition from incumbent telecom, KPN, has been high but is
expected to be more rational.

Mobile Pressures Remain: The mobile environment continues to be
difficult; both across the market and for VZ. VZ's combined
mobile revenues were down 9.6% in 2017, with business revenues
down 12.3% particularly weak; and consumer mobile down 7.7%.
These pressures have been driven by regulation - the introduction
of roam-like-home tariffs in Europe and termination rate cuts,
and the continuing highly competitive market. VZ nonetheless
reports progress in its integration and solid uptake of fixed-
mobile convergence. Fitch expects operating conditions and mobile
performance to remain tough through 1H18 but to potentially show
improvement in 2H18.

Business Profile Strengthened, Convergence Important: Despite
market conditions remaining pressured we believe the combination
of the country's national cable operator and the mobile market
number two, positions VZ well in a market which is likely to be
more rational and where convergence is important. Mobile
competition has yet to ease; Fitch nonetheless expects VZ and
incumbent, KPN, to benefit from consumer demand for high
broadband speeds in fixed and quad-play services. The ability to
stream content across multiple devices and technology platforms
is expected to be attractive and increase convergent penetration.

Proposed Regulation of VZ Fixed Network: Proposals to regulate
access to VZ's fixed access network have been drafted by market
regulator ACM, in response to what it sees as the significant
market power enjoyed by cable. Currently in its consultation
stage the proposal represents a divergence from the received
regulatory stance taken in most cable markets. However, one
example is regulated access to Telenet's network in Belgium,
which took several years to finalise. Evidence in that market
suggests that a well-managed cable operator with a strong
commercial offer and high customer penetration should be able to
withstand the additional pressures from regulated wholesale
access.

DERIVATION SUMMARY
VZ's ratings are supported by a solid operating profile,
combining the prospect of a strong convergent position following
formation of the JV and an eventual easing in competitive
conditions; the latter helped by a four-to-three player
consolidation of the mobile market. The cable business has
stabilised, while its mobile operations remain under pressure
given regulatory impacts and competition. The company's closest
peers, operationally -- Virgin Media Inc. and Telenet N.V. (both
BB-/Stable) -- offer similar characteristics in terms of business
and market potential, but deliver stronger operating performances
and better financial metrics. VZ's flat revenue outlook and
forecast leverage expected to remain at around 5.5x places the
company more consistently at the 'B+' rating level alongside
Unitymedia GmbH (B+/Stable) although the latter exhibits stronger
growth and cash flow metrics. VZ has the scale and operating
potential to sustain a 'BB-' rating. Nonetheless Fitch expects
cash returns to shareholders to be paid at the high end of
guidance and that leverage will remain in line with a 'B+'
rating.

KEY ASSUMPTIONS
Fitch's Key Assumptions Within Our Rating Case for the Issuer
- revenues of around EUR4.0 billion in 2018;
- 2018 OCF/EBITDA of EUR1.8 billion, which value includes the
shareholder recharges of around EUR250 million;
- the following forecast years reflect revenue growth
stabilisation and margin expansion reflecting scale economies and
the delivery of synergies:
- 50% of shareholder recharges written back to FFO - reflecting
their capex nature;
- 2018 capex to sales of around 23% - including EUR0.1 billion
of shareholder recharge capex, with capex/sales excluding the
recharge of around 20%;
- Shareholder payments of EUR800 million a year.

Recovery Rating Assumptions
Fitch applies a going concern approach in its assessment of
recovery value in the event of VZ's distress. In doing so we have
applied the following assumptions and debt quantums:
- Post distress EBITDA based on a 20% discount to the company's
2017 OCF/EBITDA adjusted for restructuring charges
- EV multiple of 6.0x in line with Fitch's assessment of
distressed multiples for good quality telecom network operations
- Administrative claim/charges of 10% of distressed EV
- Based on these assumptions an adjusted EV available to third
party creditors of EUR7.4 billion
- Priority ranking of claims based on YE17 values as follows:
Senior secured debt including an assumed fully drawn RCF of
EUR8.5 billion,
Vendor finance liabilities of EUR750 million
Unsecured notes of EUR2.0 billion

RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- FFO adjusted net leverage sustainably below 5.2x (5.7x at end-
2017), with strong and stable FCF generation, reflecting a stable
competitive and regulatory environment
- Evidence that draft proposals to impose regulated wholesale
access to the cable networks are unlikely to have an accelerated
or dramatic impact on VZ's cable operations

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- FFO adjusted net leverage above 6.0x
- Further deterioration in competitive pressures and inability
to show recovery in operational performance. Fitch considers
signs of a stabilising revenue environment in mobile towards the
end of 2018 to be an important operating metric

LIQUIDITY
Sound Liquidity: At end-FY17 the company reported cash of EUR275
million and an undrawn credit facility due 2022 of EUR800
million.

FULL LIST OF RATING ACTIONS
VodafoneZiggo Group Holding BV
Long-Term IDR downgraded to 'B+' from 'BB-'; Stable Outlook

Ziggo B.V.
Secured bank debt/secured notes downgraded to 'BB'/'RR2' from
'BB+'/'RR1'

Ziggo Secured Finance B.V.
Secured Bbank/secured notes downgraded to 'BB'/'RR2' from
'BB+'/'RR1'

Ziggo Secured Finance Partnership
Secured bank debt downgraded to 'BB'/'RR2' from 'BB+'/'RR1'

LGE HoldCo VI B.V.
Senior notes downgraded to 'B-'/'RR6' from 'B'/'RR6'

Ziggo Bond Finance B.V.
Senior notes downgraded to 'B-'/'RR6' from 'B'/'RR6'


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


ELBIN JSC: Put on Provisional Administration, License Revoked
-------------------------------------------------------------
The Bank of Russia, by virtue of Order No. OD-1077, dated
April 26, 2018, revoked the banking license of Makhachkala-based
credit institution Joint-stock Commercial Bank ELBIN (joint-stock
company) or JSC JSCB ELBIN (Registration No. 2267) from April 26,
2018.  According to its financial statements, as of April 1,
2018, the credit institution ranked 483rd by assets in the
Russian banking system.

The operations of JSC JSCB ELBIN were found to be non-compliant
with the law and Bank of Russia regulations on countering the
legalization (laundering) of criminally obtained incomes and the
financing of terrorism with regard to the completeness and
reliability of information provided to the authorized body about
operations subject to obligatory control.

The supervisory body also established that JSC JSCB ELBIN
conducted foreign exchange operations that were not recorded in
its statements submitted to the Bank of Russia.  The Bank of
Russia submitted the information about these facts bearing signs
of a criminal offence to law enforcement agencies.

The Bank of Russia repeatedly applied supervisory measures to JSC
JSCB ELBIN, including restrictions on certain operations.  The
management and owners of the bank failed to take any effective
measures to normalize its activities.  Under the circumstances
the Bank of Russia took the decision to withdraw JSC JSCB ELBIN
from the banking services market.

The Bank of Russia took this decision due the credit
institution's failure to comply with federal banking laws and
Bank of Russia regulations, repeated violations within one year
of the requirements stipulated by Article 7 (except for Clause 3
of Article 7) of the Federal Law "On Countering the Legalisation
(Laundering) of Criminally Obtained Incomes and the Financing of
Terrorism", and the requirements of Bank of Russia regulations
issued in compliance with the indicated Federal Law, and taking
into account repeated applications within one year of measures
envisaged by the Federal Law "On the Central Bank of the Russian
Federation (Bank of Russia)".

The Bank of Russia, by virtue of Order No. OD-1078, dated
April 26, 2018, appointed a provisional administration to JSC
JSCB ELBIN for the period until the appointment of a receiver
pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies have been suspended.

JSC JSCB ELBIN is a member of the deposit insurance system.  The
revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by law.  The said Federal
Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but no more than a total of RUR1.4
million per depositor.

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


EURASIA DRILLING: S&P Raises ICR to 'BB+', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Russia-based oilfield services company Eurasia Drilling Co. to
'BB+' from 'BB'. The outlook is stable.

S&P said, "At the same time, we removed the rating from
CreditWatch where we placed it with positive implications on July
27, 2017, and affirmed our 'B' short-term credit rating.

"We also raised our issue rating on EDC's senior unsecured debt
to 'BB+' from 'BB'.

"The upgrade recognizes EDC's strong operational performance in
2017 and reflects our view that FFO to debt will remain close to
60% in 2018 and beyond.

In 2017, EDC enjoyed improving drilling market conditions in
Russia, as oil- and gas-producing companies upped their
exploration and development. The increase in volumes EDC drilled
for Rosneft also helped; this increase followed EDC signing a new
contract with Rosneft. Meters drilled in 2017 increased to more
than 5,500 from roughly 4,900 in 2016. This helped EDC maintain
its leading position in the Russian market with a 20% share by
footage (including in-house volumes by the drilling arms of
Russian exploration and production [E&P] companies). Strong
operational results translated into improved financial metrics:
2017 revenues increased to roughly $2 billion, rising by about
25% year-on-year. EDC also maintained strong EBITDA margins of
above 25%, leading to annual EBITDA of more than $540 million.
Another important factor that improved financials was the ruble
appreciation by almost 15% against the dollar. EDC conducts much
of its business in rubles.

S&P said, "In 2018, however, we expect EDC's drilling activities
to reduce. This will mainly reflect the smaller drilling budgets
of Russian E&P companies (EDC's customers) in light of production
cuts agreed by OPEC and Russia. This agreement seeks to reduce
total oil production by 1.8 million barrels per day (out of which
Russia pledged to reduce 0.3 million) and is expected to expire
at end-2018. As a result of this, we forecast EDC's drilling
volumes to decline by about 10%-15% in 2018, and only start
climbing again once the agreement between OPEC and Russia
expires."

S&P's base case assumes:

-- Decline in drilling volumes by about 10%-15% in 2018
    reflecting lower budgeted drilling volumes of main clients
    like Lukoil and Gazpromneft due to the OPEC-Russia agreement;

-- Gradual increase in volumes after the OPEC-Russia agreement
    expires and when more drilling is needed to sustain and
    increase production at mature Russian fields;

-- Healthy EBITDA margin about 25% for 2018-2019, broadly in
    line with historical averages;

-- Capital expenditure (capex) needs of about $200 million in
    2018 and not more than $250 million in 2019;

-- No dividends in 2018 and not more than $50 million in 2019.

Based on these assumptions, S&P arrives at the following credit
measures:

-- FFO to adjusted debt of more than 60% on average in the next
    few years and close to 65% at end-2017;

-- S&P Global Ratings-adjusted net debt to EBITDA of below 1.5x
    on average in the next few years; and

-- Sound positive free operating cash flow (FOCF) generation of
    close to $150 million over 2018-2019.

EDC remains very focused on the Russian onshore drilling market.
Its top-three customers account for more than 90% of total
drilling volumes, exposing the company to risk of production loss
if contracts expire. The rig fleet is also relatively old
compared globally, with an average age of about 14 years. This is
still young, however, compared to other rigs in the Russian
market -- most of which are more than 20 years old.

S&P said, "We understand that international oilfield services
company Schlumberger is still waiting for approval from the
Russian regulators on its offer to buy a substantial stake in
EDC. The transaction was announced in July 2017, but there has
been no news on the matter since then. Given the challenges of
the Russia-U.S. relationship, coupled with sanctions against many
Russian companies, we do not feel much certainty that the
transaction will be completed as initially planned. Even if the
transaction closes as proposed, we do not believe that it will
materially enhance EDC's profile -- rendering an upgrade to 'BBB-
' unlikely. We also reflect this in our stable, rather than
positive, outlook on the rating. That said, if Schlumberger
ultimately becomes a majority shareholder and demonstrates
commitment to support EDC, we could reconsider our assessment.

"Our stable outlook on EDC reflects our expectations that the
company will maintain its leading role in the Russian drilling
market and will be able to sustain improved credit metrics. We
assume that EDC will be able to maintain FFO to debt at above 60%
on average during the next few years. We also expect positive
FOCF generation with limited capex and only modest, if any,
dividend distribution."

S&P would likely downgrade EDC if S&P saw credit ratios
deteriorate such that FFO to adjusted debt declined materially
below 60%. This could happen in the following instances, none of
which it expects in its base case:

-- Significant reduction in the volumes drilled, as a result of
    loss of key customers or freezing of drilling market activity
    due to further production cuts by OPEC and Russia;

-- Substantial increase in the company's investments program and
    resulting negative FOCF generation;

-- Change in financial policy leading to high shareholder
    distributions.

S&P said, "We believe further upside in the next 12 months is
limited, because of EDC's exposure to risks of the volatile
drilling industry with significant customer concentration in a
high risk country. Nevertheless, we would consider an upgrade if
Schlumberger becomes EDC's majority shareholder and demonstrates
commitment to support EDC."


NATIONAL BANK: Bank of Russia Approves Bankruptcy Amendments
------------------------------------------------------------
The Bank of Russia approved the amendments to plans of its
participation in bankruptcy prevention measures for National Bank
TRUST PJSC, further referred to as NB TRUST PJSC (Reg. No. 3279)
and Joint-stock Company ROST BANK, further referred to as ROST
BANK JSC (Reg. No. 2888) (collectively referred to as Banks),
which provide for the Bank of Russia to allocate RUR300 million
for recapitalization of NB TRUST PJSC and RUR350 million for
recapitalization of ROST BANK JSC.  The funds will be used to
purchase additional issues of the Banks' shares.

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


TEMPBANK PJSC: Liabilities Exceed Assets, Assessment Shows
----------------------------------------------------------
The provisional administration of PJSC MJSB Tempbank appointed by
Bank of Russia Order No. OD-2807, dated October 2, 2017, due to
the revocation of its banking license, encountered an obstruction
of its activity starting the first day of performing its
functions.  The former management of PJSC MJSB Tempbank failed to
provide the provisional administration with the originals of loan
agreements, surety and pledge agreements worth over RUR11
billion.

Besides, the provisional administration established that the
activities of the bank's former management and owners had the
signs of withdrawing assets by issuing loans to borrowers and
transferring liabilities to persons known to be incapable of
meeting their obligations, as well as by making agreements to
assign receivables with the entity not involved in real business
operations with no originals of loan agreements assigned by the
company.

According to the estimate by the provisional administration, the
assets of PJSC MJSB Tempbank do not exceed RUR2.3 billion,
whereas the bank's liabilities to its creditors amount to over
RUR13.5 billion.

On November 16, 2017, the Arbitration Court of the City of Moscow
recognised the bank as insolvent (bankrupt).  The State
Corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the former management and owners of PJSC MJSB
Tempbank to the Prosecutor General's Office of the Russian
Federation, the Ministry of Internal Affairs of the Russian
Federation and the Investigative Committee of the Russian
Federation for consideration and procedural decision-making.

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


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


BANCAJA 7: Fitch Affirms 'BBsf' Rating on Class D Notes
-------------------------------------------------------
Fitch Ratings has upgraded seven tranches of Bancaja 5, 6, 7 and
8, affirmed seven tranches, and removed all classes from Rating
Watch Evolving (RWE) as follows:

Bancaja 5, FTA
Class A (ISIN ES0312884002): affirmed at 'AA+sf'; removed from
RWE; Outlook Stable
Class B (ISIN ES0312884010): affirmed at 'AAsf'; removed from
RWE; Outlook Stable
Class C (ISIN ES0312884028): upgraded to 'Asf' from 'A-sf';
removed from RWE; Outlook Stable

Bancaja 6, FTA
Class A2 (ISIN ES0312885017): upgraded to 'AAAsf' from 'AA+sf';
removed from RWE; Outlook Stable
Class B (ISIN ES0312885025): affirmed at 'AA+sf'; removed from
RWE; Outlook Stable
Class C (ISIN ES0312885033): affirmed at 'Asf'; removed from RWE;
Outlook Stable

Bancaja 7, FTA
Class A2 (ISIN ES0312886015): upgraded to 'AAsf' from 'AA-sf';
removed from RWE; Outlook Stable
Class B (ISIN ES0312886023): upgraded to 'A+sf' from 'A-sf';
removed from RWE; Outlook Stable
Class C (ISIN ES0312886031): affirmed at 'BBBsf'; removed from
RWE; Outlook Stable
Class D (ISIN ES0312886049): affirmed at 'BBsf'; removed from
RWE; Outlook Stable

Bancaja 8, FTA
Class A (ISIN ES0312887005): upgraded to 'AAAsf' from 'AA+sf';
removed from RWE; Outlook Stable
Class B (ISIN ES0312887013): upgraded to 'AAsf' from 'Asf';
removed from RWE; Outlook Positive
Class C (ISIN ES0312887021): upgraded to 'A+sf' from 'BBBsf';
removed from RWE; Outlook Stable
Class D (ISIN ES0312887039): affirmed at 'BBsf'; removed from
RWE; Outlook Stable

The rating actions follow the application of the European RMBS
Rating Criteria published on 27 October 2017.

The transactions are a series of prime Spanish RMBS transactions,
issued between 2003 and 2005, comprising seasoned loans
originated and serviced by Bankia, S.A. (BBB-/Positive/F3).

KEY RATING DRIVERS
Deleveraging and Robust Asset Performance
The securitised mortgage portfolios have built up substantial
seasoning. As such, the weighted average current loan-to-value
(LTV) ratios have dropped well below 50% for all transactions,
compared with the weighted average original LTVs of between 73.0%
and 87.3%.

All transactions show a robust asset performance with three-month
plus arrears (excluding defaults) as a percentage of the current
pool balance decreasing further or remaining at very low levels
in the range of 0.5% for Bancaja 5 to 0.9% for Bancaja 8. This is
in line with Fitch's expectation of an improved real estate
market and macroeconomic environment in Spain. Similarly, the
transactions' cumulative defaults, defined as mortgages in
arrears by more than 18 months, were in the range of 0.5% for
Bancaja 5 to 4.1% for Bancaja 8 of the portfolio initial balance
as of the latest reporting periods. Except for Bancaja 8, this is
generally lower than for comparable Spanish transactions of the
same vintage year.

Sovereign-Related Cap Lifted
Following Fitch's upgrade of Spain's Long-Term Local-Currency
Issuer Default Rating to 'A-' on 19 January 2018, in line with
Fitch's Structured Finance and Covered Bonds Country Risk Rating
Criteria, Spanish structured finance transactions are no longer
capped at 'AA+sf', but can be rated up to 'AAAsf', i.e. six
notches above the sovereign's rating. This has been reflected in
the upgrade of the Bancaja 6 and 8's senior notes to 'AAAsf' from
'AA+sf'.

Excessive Counterparty Exposure
The transactions' junior notes depend exclusively on the credit
enhancement (CE) provided by the reserve fund and are not
sufficiently isolated to achieve ratings higher than the account
bank's 'A' rating.

CE Trends
CE is expected to increase for all transactions due to a floored
cash reserve (except Bancaja 8) and amortisation. The increase is
expected to be less pronounced for Bancaja 6 and 7, which are
currently amortising on a pro-rata basis, but would revert back
to sequential amortisation if performance triggers are not met.
Bancaja 5 and 8 are currently amortising sequentially and will
continue to do so as Bancaja 5's outstanding asset balance is
below 10% of the initial asset balance and Bancaja 8's reserve is
expected to remain below its target amount in our base case
scenario.

Interest Deferability
The transactions allow for mezzanine and junior interest to be
deferred under the transaction documents if certain 90+ dpd
delinquency triggers (Bancaja 5 and 6) or PDL triggers (Bancaja 7
and 8) are hit. Fitch has taken into account these deferral
mechanisms in its analysis.

RATING SENSITIVITIES
Bancaja 5 and 6 class C notes' ratings are sensitive to changes
in the account bank's (Citibank Europe Plc) rating. Therefore, a
downgrade in the account bank's rating would lead to a downgrade
of the class C notes' ratings.

A worsening of the Spanish macroeconomic environment, especially
employment conditions or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability. This could
have negative rating implications, especially for junior tranches
that are less protected by structural CE.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pools ahead of the transactions'
initial closing. The subsequent performance of the transactions
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.


BBVA RMBS 1: Fitch Raises Rating on Class C Notes to 'CCCsf'
------------------------------------------------------------
Fitch Ratings has upgraded eight tranches of the BBVA RMBS series
and affirmed five other tranches. All tranches have been removed
from Rating Watch Evolving.

The series are three Spanish prime RMBS originated and serviced
by Banco Bilbao Vizcaya Argentaria (BBVA; A-/Stable/F2). A full
list of rating actions is below.

BBVA RMBS 1, FTA:
Class A2 (ISIN ES0314147010): upgraded to 'BBB+sf' from 'BBsf';
removed from RWE; Outlook Stable
Class A3 (ISIN ES0314147028): upgraded to 'BBB+sf' from 'BBsf';
removed from RWE; Outlook Stable
Class B (ISIN ES0314147036): upgraded to 'B+sf' from 'CCCsf';
removed from RWE; Outlook Stable
Class C (ISIN ES0314147044): upgraded to 'CCCsf' from 'CCsf';
removed from RWE; Recovery Estimate maintained at 30%

BBVA RMBS 2, FTA:
Class A2 (ISIN ES0314148018): upgraded to 'BBBsf' from 'Bsf';
removed from RWE; Outlook Stable
Class A3 (ISIN ES0314148026): upgraded to 'BBBsf' from 'Bsf';
removed from RWE; Outlook Stable
Class A4 (ISIN ES0314148034): upgraded to 'BBBsf' from 'Bsf';
removed from RWE; Outlook Stable
Class B (ISIN ES0314148042): upgraded to 'BB-sf' from 'CCCsf';
removed from RWE; Outlook Stable
Class C (ISIN ES0314148059): affirmed at 'CCsf'; removed from
RWE; Recovery Estimate revised to 60% from 0%

BBVA RMBS 3, FTA:
Class A1 (ISIN ES0314149008): affirmed at 'CCCsf'; removed from
RWE; Recovery Estimate maintained at 100%
Class A2 (ISIN ES0314149016): affirmed at 'CCCsf'; removed from
RWE; Recovery Estimate maintained at 100%
Class B (ISIN ES0314149032): affirmed at 'CCsf'; removed from
RWE; Recovery Estimate maintained at 0%
Class C (ISIN ES0314149040): affirmed at 'CCsf'; removed from
RWE; Recovery Estimate maintained at 0%

KEY RATING DRIVERS
European RMBS Rating Criteria
The rating actions reflect the application of Fitch's new
European RMBS Rating Criteria. The upgrades and affirmations
reflect the levels of credit enhancement (CE) relative to Fitch's
asset performance expectations as per the agency's latest rating
criteria.

Stable Asset Performance
As of the respective cut-off dates the transactions reported
total delinquent loan balances were broadly stable at 8.1%, 7.4%
and 5.7% for BBVA RMBS 1, BBVA RMBS 2 and BBVA RMBS 3
respectively, as a percentage of the total balance of performing
and delinquent loans. The balances of loans with more than three
payments in arrears were also little changed at 0.4%, 0.5% and
0.6% for BBVA RMBS 1, BBVA RMBS 2 and BBVA RMBS 3 respectively.

Performance Adjustment Factor
The calculated performance adjustment factor for each transaction
was lower than 100%. However, Fitch applied a floor at 100% to
take into account the lack of detailed data regarding loan
restructuring and payment loans extensions and the potential
effect that these may have had upon historical default rates.

Credit Enhancement (CE)
For BBVA RMBS 1, the class A, B and C notes are amortising on a
sequential basis and Fitch expects this to continue given that
the reserve fund remains under target. Among the class A notes,
the A2 and A3 continue to amortise on a sequential basis. In a
stress scenario the class A2 and A3 notes will amortise pro-rata,
therefore Fitch has treated the A1 and A2 notes as pari-passu for
the purpose of calculating CE of 20%. Fitch has calculated CE of
8.9% and 1% for the class B and C notes respectively.

For BBVA RMBS 2, the class, A, B and C notes are amortising on a
sequential basis and Fitch expects this to continue given that
the reserve fund remains under target. Among the class A notes,
the A2, A3 and A4 notes continue to amortise on a sequential
basis. In a stress scenario the class A2, A3 and A4 notes will
amortise pro-rata therefore Fitch has treated the class A1, A2
and A3 notes as pari-passu for the purpose of calculating CE of
9.7%. Fitch has calculated CE of 4% and negative 1% for the class
B and C notes respectively.

For BBVA RMBS 3, the class, A, B and C notes are amortising on a
sequential basis and Fitch expects this to continue given that
the reserve fund remains under target. Among the class A notes,
the A1, A2 and A3 notes are amortising in a pro-rata basis since
the performance trigger has been breached. Fitch has treated the
A1, A2 and A3 notes as pari-passu for the purpose of calculating
CE of 3.4%. Fitch has calculated CE of a negative 7.1% and a
negative 13.1% for the class B and C notes respectively.

Counterparty Risk
The note ratings are not constrained by counterparty
arrangements.

VARIATIONS FROM CRITERIA
The transaction loan-level data shows low historical recovery
rates on defaulted loans where the property sale proceeds have
been received (i.e. closed loans). As of the latest cut-off
dates, the calculated average recovery rates on closed loans was
36%, 43% and 34% for BBVA RMBS 1, BBVA RMBS 2, and BBVA RMBS 3
respectively. Increased average recovery rates are calculated for
loans defaulted in 2014 and afterwards, and such cases are
relatively small in number. It is also to be noted that future
recovery rates would likely be higher than historical recovery
rates due to the improved macroeconomic and housing market
conditions in Spain. To take into account the low historical
recovery rates Fitch applied a loan-level manual valuation
adjustment of 20% to all loans in the portfolios for the three
transactions.

RATING SENSITIVITIES
A better-than-expected resolution of existing pool of defaulted
receivables and an increase in the observed recovery rate could
have a positive impact on the note ratings.

A worsening of the Spanish macroeconomic environment, especially
employment conditions, or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability. This could
have negative effects on asset performance and negative rating
implications.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pools ahead of the transactions'
initial closing. The subsequent performance of the transactions
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.


HIPPOCAT 9: Fitch Raises Rating on Class C Tranche to 'BB+sf'
-------------------------------------------------------------
Fitch Ratings has upgraded nine tranches of the Hipocat RMBS
series and affirmed 11 tranches. All ratings have been removed
from Rating Watch Evolving (RWE) where they were placed on 5
October 2017 following the publication of Fitch's new European
RMBS Rating Criteria.

The transactions consist of mortgages originated in Spain by
Catalunya Banc S.A. (now part of BBVA Group; A-/Stable/F2), which
previously traded as Caixa Catalunya. The loans are serviced by
BBVA Group.

KEY RATING DRIVERS
European RMBS Rating Criteria
The rating actions reflect the application of Fitch's new
European RMBS Rating Criteria. They also reflect the levels of
credit enhancement (CE) relative to Fitch's asset performance
expectations as per the agency's rating criteria.

Payment Interruption Risk
For Hipocat 7, the cash reserve fund has a balance of EUR 12.8
million, which is approximately 50% of the target balance.
Although the cash reserve fund may be drawn in the future to
cover for defaults, Fitch has not applied a rating cap to the
class A2 and B notes based on the expectation that funds will
remain sufficient to cover payment interruption risk. However,
the lack of dedicated liquidity has precluded upgrades above
'A+sf'.

For Hipocat 9, Hipocat 10, and Hipocat 11, the cash reserve funds
are currently fully depleted. Therefore, the note ratings remain
capped at 'A+sf' due to insufficient structural mitigation to
payment interruption risk.

Asset Performance
Based upon supplementary loan-level data, Fitch estimated total
delinquent loan balances (in excess of x0.1 payments) of 15.7%,
14.4%, 16.2% and 18.3% for Hipocat 7, Hipocat 9, Hipocat 10 and
Hipocat 11, respectively, as a percentage of the total loan
balance of performing and delinquent loans. The balances of loans
with more than three payments in arrears were estimated at 0.8%,
1.2%, 1.1% and 1.3% for Hipocat 7, Hipocat 9, Hipocat 10 and
Hipocat 11, respectively.

CE
Currently all four transactions are amortising on a sequential
basis between each class of notes as a result of the reserve
funds being under funded.

For Hipocat 7, Fitch has calculated CE of 33.4%, 26.9% 14.4% and
6.0% for the class A, B, C and D notes, respectively.

For Hipocat 9, Fitch has treated the class A2a and A2b notes as
pari-passu. Fitch has calculated CE of 25.2%, 15.4%, 7.2%,
negative 3.3% and negative 10.5% for the class A, B, C, D and E
notes, respectively.

For Hipocat 10, Fitch has treated the class A2 and A3 notes as
pari-passu. Fitch has calculated CE of 15.8%, negative 1.4%,
negative 17.6% and negative 25.5% for the class A, B, C and D
notes, respectively.

For Hipocat 11, Fitch has treated the class A2 and A3 notes as
pari-passu. Fitch has calculated CE of negative 0.9%, negative
17.2%, negative 36.9% and negative 45.6% for the class A, B, C
and D notes, respectively.

Recoveries on Defaulted Receivables
Fitch was provided with supplementary loan-level information on
defaulted accounts to enable the calculation of recoveries on
defaulted receivables as described in its European RMBS Rating
Criteria.

For Hipocat 7 the balance of defaulted receivables totalled EUR
24.4 million and Fitch calculated a 'Bsf' a recovery rate of
40.1%. For Hipocat 9 the balance of defaulted receivables
totalled EUR 36.7 million and Fitch calculated a 'Bsf' recovery
rate of 29.2%. For Hipocat 10 the balance of defaulted
receivables totalled EUR 83.4 million and Fitch calculated a
'Bsf' recovery rate of 19.8%. For Hipocat 11 the balance of
defaulted receivables totalled EUR125.3 million and Fitch
calculated a 'Bsf' recovery rate of 14.5%.

RATING SENSITIVITIES
For Hipocat 7 class A and B notes, the future depletion of the
reserve fund may result in the note ratings being capped at
'A+sf'.

For all notes rated below 'A+sf', a timely and successful
resolution of the existing defaulted receivables could have a
positive rating impact, as indicated by the Positive Outlooks.

For all notes, a worsening of the Spanish macroeconomic
environment, especially employment conditions, or an abrupt shift
of interest rates could jeopardise the underlying borrowers'
affordability. This could have negative effects on asset
performance and negative rating implications.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pools ahead of the transactions'
initial closing. The subsequent performance of the transactions
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall and together with the assumptions referred to above,
Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Loan-level data provided by European Datawarehouse with a cut-
off date at 08 January 2018 for Hipocat 7, 9 and 11. For Hipocat
10 cut-off as at 17 January 2018.
- Supplementary loan-level data provided by Europea de
Titulizacion in relation to loans with arrears balances as of 31
March 2018 and loans with an account status of defaulted as of 10
April 2018
- Transaction reporting provided by Europea de Titulizacion with
an interest payment date of 15 January 2018 for Hipocat 7, 9 and
11. For Hipocat 10 data with an interest payment date of 24
January 2018.

MODELS
ResiEMEA.

EMEA Cash Flow Model.

The rating actions are as follows:

Hipocat 7
Class A2 (ISIN ES0345783015): affirmed at 'AA+sf'; off RWE;
Outlook Stable
Class B (ISIN ES0345783023): affirmed at 'AAsf'; off RWE; Outlook
Stable
Class C (ISIN ES0345783031): upgraded to 'A+sf' from 'BBB+sf';
off RWE; Outlook Stable
Class D (ISIN ES0345783049): upgraded to 'BBBsf' from 'BBsf'; off
RWE; Outlook Positive

Hipocat 9
Class A2a (ISIN ES0345721015): upgraded to 'A+sf' from 'Asf'; off
RWE; Outlook Stable
Class A2b (ISIN ES0345721023): upgraded to 'A+sf' from 'Asf'; off
RWE; Outlook Stable
Class B (ISIN ES0345721031): upgraded to 'Asf' from 'BB+sf'; off
RWE; Outlook Positive
Class C (ISIN ES0345721049): upgraded to 'BB+sf' from 'CCCsf';
off RWE; Outlook Positive; Recovery Estimate (RE) revised to NC
(not calculated) from 100%
Class D (ISIN ES0345721056): affirmed at 'CCsf'; off RWE; RE
revised to 80% from 15%
Class E (ISIN ES0345721064): affirmed at 'Csf'; off RWE; RE 0%

Hipocat 10
Class A2 (ISIN ES0345671012): upgraded to 'A+sf' from 'Bsf'; off
RWE; Outlook Stable
Class A3 (ISIN ES0345671020): upgraded to 'A+sf' from 'Bsf'; off
RWE; Outlook Stable
Class B (ISIN ES0345671046): upgraded to 'Bsf' from 'CCsf'; off
RWE; Outlook Positive; RE revised to NC from 10%
Class C (ISIN ES0345671053): affirmed at 'CCsf' '; off RWE; RE 0%
Class D (ISIN ES0345671061): affirmed at 'Csf'; off RWE; RE 0%

Hipocat 11
Class A2 (ISIN ES0345672010): affirmed at 'CCCsf'; off RWE; RE
revised to 95% from 100%;
Class A3 (ISIN ES0345672028): affirmed at 'CCCsf'; off RWE; RE
revised to 95% from 100%;
Class B (ISIN ES0345672036): affirmed at 'CCsf' '; off RWE; RE 0%
Class C (ISIN ES0345672044): affirmed at 'CCsf' '; off RWE; RE 0%
Class D (ISIN ES0345672051): affirmed at 'Csf'; off RWE; RE 0%


IM CAJAMAR 2: Moody's Assigns (P)Caa2 Rating to EUR240M B Notes
---------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the debts to be issued by IM BCC CAJAMAR PYME 2, FONDO
DE TITULIZACION:

EUR760M Serie A Notes, Assigned (P)A2 (sf)

EUR240M Serie B Notes, Assigned (P)Caa2 (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.

The transaction is a static cash securitisation of term loans
granted by Cajamar Caja Rural, Sociedad Cooperativa de CrÇdito
("Cajamar", NR) to small and medium-sized enterprises (SMEs) and
self-employed individuals / located in Spain.

RATINGS RATIONALE

The ratings of the Notes are primarily based on the analysis of
the credit quality of the underlying portfolio, the structural
integrity of the transaction, the roles of external
counterparties and the protection provided by credit enhancement.

In Moody's view, the strong credit positive features of this deal
include, among others: (i) Cajamar's expertise in lending to the
agriculture sector, which is closely linked to the pool's
exposure to Beverage, Food & Tobacco sector, in terms of Moody's
industry classification; (ii) granular portfolio with low obligor
concentration as the top obligor and top 10 obligor groups
represent 0.5% and 4.1% respectively; (iii) exposure to the
construction and building sector in terms of Moody's industry
classification at around 6.6% of the total pool is well below the
average observed in the Spanish market. However, the transaction
has several challenging features, such as: (i) there is a high
sector concentration as around 51.1% of the portfolio volume is
concentrated in the Beverage, Food & Tobacco sector, in terms of
Moody's industry classification; (ii) the portfolio is exposed to
refinancing loans, representing around 17.5% of the pool volume;
(iii) there is no interest rate hedge mechanism in place while
the Notes pay a floating coupon and 47.8% of the pool balance are
either fixed rate loans or loans that initially pay a fixed rate
(switching to a floating rate at a later stage).

Key collateral assumptions:

Mean default rate: Moody's assumed a mean default rate of 13%
over a weighted average life of 4.1 years (equivalent to a B1
proxy rating as per Moody's Idealized Default Rates). This
assumption is based on: (1) the available historical vintage
data, (2) the performance of the previous transactions originated
by Cajamar and (3) the characteristics of the loan-by-loan
portfolio information. Moody's also have taken into account the
current economic environment and its potential impact on the
portfolio's future performance, as well as industry outlooks or
past observed cyclicality of sector-specific delinquency and
default rates.

Default rate volatility: Moody's assumed a coefficient of
variation (i.e. the ratio of standard deviation over the mean
default rate explained above) of 58.6%, as a result of the
analysis of the portfolio concentrations in terms of single
obligors and industry sectors.

Recovery rate: Moody's assumed a 40% stochastic mean recovery
rate, primarily based on the characteristics of the collateral-
specific loan-by-loan portfolio information, complemented by the
available historical vintage data.

Portfolio credit enhancement: the aforementioned assumptions
correspond to a portfolio credit enhancement of 38.5%, that takes
into account the Spanish current local currency country risk
ceiling (LCC) of Aa1.

As of March 23, 2018, the audited provisional asset pool of
underlying assets was composed of a portfolio of 21,003 contracts
amounting to EUR 1,098 million. The top industry sector in the
pool, in terms of Moody's industry classification, is Beverage,
Food & Tobacco (51.1 %). The top borrower represents 0.5% of the
portfolio and the effective number of obligors is 1,580.The
assets were originated mainly between 1997 and 2017 and have a
weighted average seasoning of 2.6 years and a weighted average
remaining term of 7.6 years. The interest rate is floating for
52.2% of the pool while the remaining part of the pool bears a
fixed interest rate or loans that initially pay a fixed rate
(switching to a floating rate at a later stage). The weighted
average spread on the floating portion is 2.7%, while the
weighted average interest on the fixed portion is
3.8%.Geographically, the pool is concentrated mostly in Murcia
(22.7%) and Almeria (19.61%). At closing, any loan in arrears for
more than 30 days will be excluded from the final pool. Around
25.2% of the portfolio is secured by first-lien mortgage
guarantees over different types of properties.

Key transaction structure features:

Reserve fund: The transaction benefits from a reserve fund,
equivalent to 3% of the original balance of the Class A and Class
B Notes. The reserve fund provides both credit and liquidity
protection to the Notes.

Counterparty risk analysis:

Cajamar Caja Rural, Sociedad Cooperativa de Credito ("Cajamar",
NR) will act as servicer of the loans for the Issuer, while
InterMoney Titulizaci¢n , S.G.F.T. (NR) the management company
(Gestora) of the transaction.

All of the payments under the assets in the securitised pool are
paid into the collection account at Cajamar. There is a daily
sweep of the funds held in the collection account into the Issuer
account. The Issuer account is held at Banco Santander S.A.
(Spain) (A2/P-1) with a transfer requirement if the rating of the
account bank falls below Baa2/P-2. Moody's has taken into account
the commingling risk within its cash flow modelling.

Stress Scenarios:

Moody's also tested other sets of assumptions under its Parameter
Sensitivities analysis. For instance, if the assumed default rate
of 13% used in determining the initial rating was changed to 16%
and the recovery rate of 40% was changed to 35%, the model-
indicated rating for Series A and Series B of A2(sf) and Caa2(sf)
would be Baa2(sf) and Caa3(sf) respectively. For more details,
please refer to the full Parameter Sensitivity analysis included
in the New Issue Report of this transaction.

Principal Methodology:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in August 2017.

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

The Notes' ratings are sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. The evolution of the
associated counterparties risk, the level of credit enhancement
and the Spain's country risk could also impact the Notes'
ratings.

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 and ultimate
payment of principal with respect to the Notes by the legal final
maturity. Moody's ratings address only 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.


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


CONVIVIALITY PLC: Rejects 11th-Hour Rescue Deal
-----------------------------------------------
Tom Rees at The Daily Telegraph reports that collapsed retailer
Conviviality rejected an 11th-hour rescue deal that would have
secured the final GBP18 million needed to save the Bargain Booze
owner, an investor has revealed.

Crystal Amber, the Aim-listed activist investor, made a written
offer to the company to help complete Conviviality's GBP125
million fund-raise in the days leading up to its collapse, but
was rebuffed by the firm's management, The Daily Telegraph
relates.

After an initial scramble to secure funding fell short of its
target, Crystal Amber made the rescue bid on the condition that
it and other new investors offering to back a turnaround effort
would have the option of buying more shares in future at a
discount, The Daily Telegraph discloses.

"They raised GBP107 million at 5p a share but needed GBP125
million," fund head Richard Bernstein told The Daily Telegraph.
"We said we'll do the other GBP18 million but we want warrants
and we think all the new shareholders should also get warrants to
get in at below 5p to compensate us all for the lack of existing
credible management."

Conviviality plunged into administration earlier this year after
rejecting the deal from Crystal Amber, putting thousands of jobs
at risk, The Daily Telegraph recounts.

Conviviality (AIM: CVR) is the drinks and impulse sector's
leading independent distributor.


INTERSERVE PLC: Funding Plan Approved, Losses Widen
---------------------------------------------------
Radhika Rukmangadhan at Reuters reports that Britain's Interserve
Plc reported a deeper annual pretax loss on April 30, sending its
shares 20% lower, as CEO Debbie White leads a turnaround of the
construction and support services company.

Shareholders on April 27 approved a funding plan agreed with
creditors in March after the company had warned it might breach
covenants, Reuters relates.

Interserve's pretax loss widened to GBP244.4 million (US$335
million) from GBP94.1 million while revenue of GBP3.25 billion
was fractionally higher, Reuters discloses.

According to Reuters, year-end net debt jumped 83% to GBP502.6
million.

"The (FY) performance was extremely poor," Ms. White, as cited by
Reuters, said, noting that a large part of Interserve's support
services business consists of high volume and relatively low
margin contracts.

Interserve is one of the biggest private contractors, providing
security, probation, healthcare and construction services.  It
employs 80,000 people, including 25,000 in the UK, and also
cleans the London Underground and manages army barracks.


LAIRD: Moody's Assigns B3 Corp. Family Rating, Outlook Stable
-------------------------------------------------------------
Moody's Investors Service assigned a first time B3 Corporate
Family Rating (CFR) and a B3-PD Probability of Default Rating
(PDR) to UK-based engineering technology company AI Ladder
(Luxembourg) Subco S.a r.l (Laird). The outlook on the ratings is
stable.

The rating action reflects the following interrelated drivers:

-- The company's leverage, as measured by Moody's-adjusted
    debt/EBITDA, is high at 7.2x with limited levels of free cash
    flow

-- leading positions in niche markets

-- technology risk

Concurrently, Moody's assigned a B2 rating to the company's
proposed $750 million senior first lien term loan B and a B2
rating to the company's proposed $133 million revolving credit
facility.

RATINGS RATIONALE

The B3 CFR is primarily supported by (1) Laird's strong market
positions with technical capabilities highly ranked by its
customers; (2) a well-diversified geographic footprint; (3) a
track record of organic growth; and (4) medium to high barriers
to entry protecting the business. At the same time, the CFR is
constrained by (1) an initially high leverage of 7.2x debt /
EBITDA based on 2017 results pro-forma for the new capital
structure; (2) potential volatility in EBITA margins, as seen
during 2014 -- 2017, albeit acquisitions made since may have
changed the group's profitability profile; (3) the requirement of
ongoing high R&D spending in order to maintain the technology
leadership position; (4) limited free cash flow generation
forecast; and (5) high customer concentration on revenue,
although lower on profit.

The credit facilities will be used to finance the acquisition of
Laird plc by Advent International by way of a scheme of
arrangement. The transaction was approved by the shareholders of
Laird plc at the General Meeting held on 17 April 2018. The
transaction remains subject to regulatory and anti-trust
clearance. Closing is expected to take place in June or July
2018.

Supported by restructuring savings already initiated and by the
expected disposal of Laird's 51% stake in its South Korean
subsidiary Model Solutions, currently classified as an asset held
for sale, Moody's expects a swift deleveraging towards 6.0x
debt / EBITDA (adjusted for pensions, operating leases and
capitalized development cost) by year-end 2019 in its base case
scenario, which is consistent with its strong position in the B3
rating category.

LIQUIDITY

Lairds' liquidity profile is considered to be adequate. The
company's reported cash balance as of December 2017 is $71
million. In its liquidity risk assessment Moody's expects
liquidity sources for the twelve months following closing,
including funds from operations and full availability under the
$133 million revolving credit facility to exceed $240 million
which should be sufficient to cover capital expenditures of
approximately $80 million, $11 million working capital needs as
well as $40 million of working cash, required to run the business
and contractual debt amortizations ($7 million). However, given
Moody's projected negative free cash flow in 2018 in its base
case scenario the rating agency expects that the company will
initially be reliant on external credit facilities to serve
seasonal swings in its operational liquidity needs in some
quarters.

STRUCTURAL CONSIDERATIONS

The B2 rating (LGD3) assigned to the issuer's $750 million
equivalent first lien senior term loan facility (Facility B) and
to the $133 million equivalent revolving credit facility is one
notch above the CFR and reflects the debt cushion provided by the
subordinated $143 million equivalent second lien facility
(unrated). The credit facilities benefit from a guarantor package
including upstream guarantees from operating subsidiaries,
representing at least 80% of group EBITDA. The instruments are
secured by a security package including shares, bank accounts,
intercompany receivables, floating charges in the UK and
customary all asset security in the US with priority given to the
first lien term loan facility against the second lien facility.

OUTLOOK

The stable outlook reflects Moody's expectation that in the next
12-18 months, Laird will manage Moody's adjusted (gross) leverage
in a range between 6.0x and 7.0x with a clear path towards 6.0x
by year-end 2019 and show stable EBITA margin.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings could be upgraded if Laird could sustainably improve
its EBITA margin to high single digits and reduce its Moody's
adjusted leverage towards 5.5x. An upgrade would also require the
company to sustainably improve free cash flow / debt coverage to
mid-single digits.

Downward pressure would develop in case of weakening operating
performance indicated by EBITA margin falling below 5%, Moody's
adjusted leverage sustained above 6.5x for an extended period of
time, continuing negative free cash flow generation, or a
weakening liquidity position.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in London, United Kingdom, Laird plc is a global
engineering technology company with leading market positions in
selected niches with high growth potential. The company, which
generated revenues of GBP937 million (approximately $1,207
million) in 2017, operates three divisions: (i) Performance
Materials, accounting for half of group revenues, has a number
one market position in customized components protecting smart
devices from electromagnetic interferences and heat; (ii)
Connected Vehicle Solutions, representing one third of revenues,
is by far the largest producer of car antennas and is focusing on
smart car antennas and car connectivity systems; and (iii)
Wireless and Thermal Systems, about one sixth of the business,
offers systems, components and solutions for connectivity in
mission-critical wireless applications. At the end of 2017 Laird
was present at 48 locations in 16 countries on four continents
and had c. 10,300 employees.


NEPTUNE ENERGY: Moody's Assigns Ba3 CFR & Rates $500MM Notes B2
---------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 Corporate
Family Rating (CFR) and a Ba3-PD Probability of Default Rating
(PDR) to Neptune Energy Group Midco Limited (Neptune), an oil &
gas exploration and production company. Concurrently, Moody's
assigned a B2 rating to the proposed $500 million senior
unsecured notes due 2025 to be issued by Neptune Energy Bondco
Plc. The outlook on all ratings is stable.

RATINGS RATIONALE

The Ba3 rating reflects Neptune's (1) strong financial profile
with EBITDA margin expected at around 60%-65%, adjusted gross
debt/EBITDA to range between 1.5x-2.0x in 2018-2020 and positive
free cash flow (FCF) generation expected assuming an oil price of
around $55/bbl, NBP price of GBp38-40/therm and TTF price of
EUR14-16/Mwh (2) good liquidity profile with cash balance of $150
million (pro-forma for the bond transaction) combined with $900
million availability under the Reserve Based Lending (RBL)
facility (3) geographical diversification with OECD exposure
accounting for 92% of the production and 73% of 2P reserves in
2017 (4) competitive cost position with opex cost of $11-12/bbl
as a mid-sized exploration & production (E&P) company with a
focus on natural gas (5) operations benefit from exposure to
supportive tax regimes in Norway and UK, accounting for 63% of
the 2017 production and (6) 56% of operated portfolio which
provides better control over the assets, while other assets are
mostly operated by ENI S.p.A. (A3, negative) and Statoil ASA
(Aa3, stable) who demonstrate the technical capability and
experience to operate these fields.

The rating remains constrained by (1) the expected decline in the
production profile from around 150 kboepd in 2018 to around 120
kboepd in 2020 and beyond due to maturing assets mainly in Norway
and Netherlands, mitigated to some extent by the ramp-up of
production from new fields in Indonesia and Algeria (2)
increasing need to grow organically or inorganically to limit the
decline in production implying higher capex, exploration and/or
acquisition spending in the coming years, which entails execution
risks (3) 2P reserve life of 10 years and 1P reserve life of 6
years which is weaker compared to other rated European peers (4)
increasing exposure to non-OECD countries like Indonesia and
Algeria from 8% in 2017 to around 30% in 2020, as production from
new fields ramp up and (5) lack of track record of the company
under the new ownership structure.

Moody's assumes an oil price of $55/bbl, NBP gas prices of Gbp38-
40/therm and TTF gas prices of EUR14-16/Mwh in 2018-2020.
Adjusted EBITDA is expected to decline from around $1.4 billion
in 2018 to $1.1 billion in 2020. EBITDA margin is expected to be
maintained at around 63% in 2018-2020. Capital spending on
already sanctioned projects is expected to reduce to range
between $300-500 million, compared to historical levels due to
key developments having being completed in 2016 and 2017.
Assuming dividends of around $100 million in 2018-2020, the
company should be able to generate positive FCF ranging between
$200-350 million. Gross adjusted debt/EBITDA is expected to
deteriorate from around 1.5x in 2018 to 1.9x in 2020, still
demonstrating a good financial profile.

Moody's notes that the company would need to spend additional
capital in order to reverse the decline in the production levels,
which would imply higher capex/exploration/ acquisition spending
and lower FCF generation. Over the medium term, likely further
development projects especially in Norway, not yet recognized as
reserves, should provide additional upside to existing production
profile of 2P reserves, to help offset natural declines, but
entails execution risks. Moody's also expects the company to
demonstrate a flexible dividend policy if Neptune was to invest
more heavily to improve the reserve base. The rating reflects the
financial headroom the company has in order to execute its growth
plan, given its strong financial profile.

LIQUIDITY

Neptune demonstrates a good liquidity profile. The company has a
cash balance of $150 million, pro-forma for the bond transaction,
combined with available RBL of $900 million out of the total RBL
commitments of $2.0 billion. The company is expected to generate
positive FCF of $200-350 million per annum in 2018-20. This
combined with drawings under the RBL and the cash balance should
be sufficient to address its funding needs in the coming 12-18
months. There are no debt repayments due until 2019.

STRUCTURAL CONSIDERATIONS

The company's debt consists of $900 million of drawn senior
secured RBL under the $2.0 billion facility, $187 million of
Touat project finance senior secured loan, proposed $500 million
senior unsecured bond and $100 million subordinated intercompany
loan.

The notes are unsecured obligations to be issued by Neptune
Energy Finance Plc and benefit from guarantees from some of the
operating subsidiaries. The B2 rating on the notes reflect that
the notes are senior subordinated obligations of the respective
guarantors and are subordinated in right of payment to all
existing and future senior obligations of those guarantors,
including their obligations under the RBL facility. The two notch
difference between the B2 rating on the notes and the CFR of Ba3
reflects the large amount of RBL ranking ahead of the notes.

RATING OUTLOOK

The stable outlook reflects Moody's view that Neptune will
maintain its strong financial profile with adjusted gross
debt/EBITDA below 2.5x, while reversing its declining production
profile. The outlook also reflects our expectations that Neptune
will maintain good liquidity, adhere to its targeted financial
policy of Net debt/EBITDAX below 1.5x and should be able to
obtain support from shareholders for growth plans, organic and/or
inorganic, in case of need.

WHAT COULD CHANGE THE RATING - UP

The Ba3 rating could be upgraded if the company demonstrates the
ability to replenish reserves which would maintain production at
current levels of 150 kboepd, while sustaining an adjusted gross
debt/EBITDA below 2.5x. An upgrade would also require the company
to retain its competitive cost position, maintain a conservative
financial policy and a good liquidity profile.

WHAT COULD CHANGE THE RATING - DOWN

The Ba3 rating could be downgraded if there is sustained
deterioration in the production profile and/or reserve life of
the company. The rating could come pressure if adjusted gross
debt/EBITDA rises above 3.5x or generates negative FCF
generation, on a sustained basis. Pressure on liquidity could
also result in a downgrade of the ratings.

CORPORATE PROFILE

Neptune Energy Group Midco Ltd (Neptune) is a medium-sized
independent oil & gas E&P company with revenues of $2.2 billion
in 2017. Neptune was incorporated in May 2017 to acquire ENGIE
E&P International S.A. (EPI), the E&P business of ENGIE SA (A2,
stable) and the acquisition was completed in February 2018.
Neptune Energy Group Midco Ltd is a holding company with its main
asset being Neptune Energy International SA and its operating
subsidiaries, which are effectively EPI assets. Neptune's main
production assets are located in Europe (Norway, UK, Netherlands
and Germany), North Africa (Egypt and Algeria) and Asia
(Indonesia). In 2017, the company reported an average annual
production (on a working interest basis) of 154 thousand barrels
of oil equivalent (kboepd) and proved plus probable (2P) reserves
of 543 million barrels of oil equivalent (mmboe). Neptune is
owned by 3 main shareholders China Investment Corporation (49%),
Carlyle Group (30%) and CVC Capital Partners (20%) and management
owns the remaining 1%.



                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *