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

                           E U R O P E

           Thursday, May 31, 2018, Vol. 19, No. 107


                            Headlines


C Y P R U S

CYPRUS: DBRS Hikes Long-Term Currency Issuer Ratings to BB


G E R M A N Y

AIR BERLIN: Lufthansa Won't Face Probe Over Rising Ticket Prices
BILFINGER SE: S&P Lowers Long-Term ICR to 'BB', Outlook Stable
REVOCAR 2018: DBRS Assigns BB Rating to Class D Notes


I R E L A N D

NORIA 2018-1: Moody's Assigns (P)Caa3 Rating to Class G Notes
NORIA 2018-1: DBRS Assigns Provisional C Rating to Class G Notes
WILLOW NO.2: Moody's Hikes Series 39 Repack Notes Rating to Ba3


L U X E M B O U R G

LOGWIN AG: S&P Alters Outlook to Positive & Affirms 'BB' ICR


N E T H E R L A N D S

CIMPRESS NV: Moody's Affirms Ba2 CFR & Alters Outlook to Neg.


P O L A N D

PROCHNIK SA: Asks Lodz Court to Consider Bankruptcy Motion


R U S S I A

EURASIA DRILLING: S&P Affirms 'BB+' ICR, Outlook Stable
NOVIKOMBANK JSCB: Moody's Raises LT Deposit Ratings to B1


S P A I N

CAIXABANK CONSUMO: DBRS Rates Class B Notes BB (high)(sf)
ENCE ENERGIA: Moody's Hikes CFR & Sr. Notes Rating to Ba2
FTPYME TDA CAM 4: Moody's Raises Rating on Class C Notes to Caa2
IM CAJAMAR: DBRS Maintains Notes Ratings Under Positive Review


U N I T E D   K I N G D O M

BEAUFORT: Thousands of Customers Likely to Recover Money
CARILLION: Crown Representative Slow to Spot Financial Problems
GKN HOLDINGS: Moody's Cuts Sr. Unsec. Debt Rating to Ba1
ORCHARD HOMES: Administrators Take Over Operations at Four Sites


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C Y P R U S
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CYPRUS: DBRS Hikes Long-Term Currency Issuer Ratings to BB
----------------------------------------------------------
DBRS Ratings Limited upgraded the Republic of Cyprus's Long-Term
Foreign and Local Currency-Issuer Ratings from BB (low) to BB and
maintained the Positive trend. DBRS also confirmed the Short-Term
Foreign and Local Currency-Issuer Ratings at R-4 and changed the
trend to Positive from Stable.

KEY RATING CONSIDERATIONS

The upgrade is driven by the decline in Cypriot banks' non-
performing loans (NPLs) and Cyprus's better-than-expected fiscal
performance. The banking system's stock of NPLs fell by 14% in
2017. From their peak in February 2015 to December 2017, total
NPLs fell by 28%. Also in 2017, the fiscal surplus came in at
1.8% of GDP, above an already upwardly-revised target of 1.0%. A
larger fiscal surplus, together with strong growth and early debt
repayments, contributed to a significant fall in Cyprus's
government debt-to-GDP ratio from 106.6% in 2016 to 97.5% in
2017. Improvements in DBRS's building blocks of "Monetary Policy
and Financial Stability", "Fiscal Management and Policy", and
"Debt and Liquidity" were the key factors for the rating upgrade.

The Positive trend reflects DBRS's view that Cyprus's solid
economic and fiscal performances are likely to be sustained,
contributing to the downward trajectory of the government debt
ratio after an increase in 2018. After a stronger-than-expected
3.9% in 2017, real GDP growth is forecast at 3.8% in 2018 and
3.6% 2019. Moreover, the forecast for the fiscal surplus over the
next two years is 1.7%, with the primary surplus above 4%, among
the highest in the European Union (EU). NPLs remain very high and
a major vulnerability for Cypriot banks, but DBRS expects NPLs to
continue to fall, driven by measures already in place, a policy
strategy recently presented, and improving economic conditions.

RATING DRIVERS

An upgrade in the ratings would come from Cyprus's demonstration
to sustain healthy economic growth and a sound fiscal position,
which would support the downward trajectory in the public debt
ratio. Important progress on privatizations could also put upward
pressure on the ratings. Moreover, Cyprus's ability to
significantly reduce vulnerabilities in the private sector,
including a material reduction of non-performing loans, would be
positive for the ratings. However, a period of significantly weak
growth, combined with large fiscal imbalances, could lead to a
change in the trend back to Stable. A reversal of the downward
trajectory in NPLs could also be negative.

RATING RATIONALE

The Reduction of High NPLs and Deleveraging of the Private Sector
Continue to Progress

After reaching a peak at the beginning of 2015, the stock of NPLs
has been declining largely driven by the non-financial
corporations (NFCs) sector. Corporate NPLs account for 45% of
total NPLs in the system. Between April 2015 and December 2017,
the stock of corporate NPLs fell by 36%, in part helped by loan
restructurings of large NFCs. The decline in household NPLs,
which account for 53% of total NPLs, has been less impressive.
Since their peak in February 2015, the stock of household NPLs
has fallen by 16%. The banking system's coverage ratio (NPLs
covered by provisions) has also increased, from 38.8% in June
2016 to 47.3% in December 2017, in line with the EU average.

Despite the improvement in the reduction of NPL stocks, NPL
ratios remain high as outstanding loans have decreased. NPLs for
the banking system were 42.5% of total loans in December 2017,
compared to the 49.0% peak in May 2016. The 90-days past due
loans ratio was 32.6%, down from 37.5% in the same period. Very
high NPLs, which increased significantly during the severe crisis
in 2012-2014, remain the main risk to financial stability and a
major rating challenge for Cyprus.

Important efforts to speed the resolution of legacy NPLs are
ongoing. The three core domestic banks have set up independent
debt servicing companies with foreign debt specialists. Moreover,
the government recently presented a three-pillar policy strategy
for the reduction of NPLs, to be fully implemented in 2018 and
focused on: 1) strengthening the effectiveness of the legal
framework adopted in 2015, to tackle deficiencies on various laws
and foster the development of a secondary market for NPLs; 2)
addressing NPLs related to retail mortgages and SME lending
backed by main residence as collateral, through burden sharing
between stakeholders and state support; and 3) the sale of Cyprus
Cooperative Bank, which the government as the major shareholder
has initiated. These efforts, together with the economic
recovery, declining unemployment, and rising house prices, bode
well for the further reduction in NPLs.

High indebtedness in the private sector remains an additional
risk, but the deleveraging process continues. The decline in
household debt has been notable, reaching 109% of GDP in Q4 2017
down from a peak of 131% in Q1 2015. NFC debt, which in part
reflects special purpose entities (SPEs) of foreign-financed
shipping companies with international operations, has fallen from
a peak of 229% in Q1 2015 to 207% in Q4 2017 (130% excluding
SPEs). Deleveraging is taking place through cash repayments,
debt-for-asset swaps and loan write-offs.

The Public Debt Ratio Is Set to Fall and The Sound Fiscal
Performance to Be Maintained

A still high government debt ratio is another rating challenge,
but it is expected to resume its decline after an increase this
year. Cyprus's government debt-to-GDP ratio peaked at 107.5% in
2015. In 2017, following early loan repayments to the Central
Bank of Cyprus and the IMF, the debt ratio fell below 100%. In
2018, the ratio will be impacted by the issuance of domestic
bonds for EUR2.35 billion. The government deposited the funds
with Cyprus Cooperative Bank (CCB) to rebuild confidence in the
bank and facilitate its sale. As a result, the forecast for the
debt ratio this year is 105.6%. The ratio is then projected to
fall to 100% in 2019, and 94.6% in 2020, supported by solid
growth and large primary surpluses. While additional fiscal
burden from the banking sector cannot be ruled out, DBRS views
favorably the government's actions to address the challenges in
the sector.

Although debt dynamics remain vulnerable to adverse shocks,
public debt management has been effective. This has resulted in a
favorable debt profile that reduces refinancing risks and
supports Cyprus's ratings. A liquidity buffer covers 9-month
funding needs, and the average maturity of government debt was
8.0 years in April 2018. Floating-rate debt increased in recent
years but this mainly relates to official loans, which account
for 54% of total debt. Moreover, the weighted average cost of
debt has declined, reaching 2.2% 2017 compared to a peak of 4.2%
in 2012.

A sound fiscal position is expected to be maintained, supporting
the ratings. Cyprus accomplished the consolidation of its budget
position in a relatively short time. Despite the fiscal impact
from the policy strategy for the reduction of NPLs, the budget
position is expected to remain in a healthy surplus above 1.5%
over the next four years, supported by strong revenues and
contained expenditure. The government is also aiming to maintain
a small structural surplus, above its medium-term objective of a
structural balance. Adopted reforms to strengthen fiscal
management, including the reform to the wage indexation system,
together with expenditure ceilings embedded in the Fiscal
Responsibility and Budget Law, are expected to reinforce the
sustainability of public finances.

Strong Economic Growth is Being Supported by Domestic and
External Demand

Cyprus's attractiveness as a business services center, a tourist
destination, and a shipping center supports the ratings. The
tourism sector benefits from a market of wealthy economies. It
also continues to diversify into new markets and products, making
it more resilient. The sector has gained significantly from the
extension of the tourist season in 2016 and the increasing hotel
capacity. This saw tourist arrivals rise by 20% in 2016 and 15%
in 2017. Nevertheless, the small size of its service-driven
economy exposes Cyprus to adverse changes in external demand and
poses a challenge to the ratings.

After gathering momentum in 2017, Cyprus's GDP growth is expected
to remain robust. Forecasts point to growth close to 4% this year
and next, driven by important investment projects, exports, and
consumption. Growth has been broad-based, with tourism, shipping,
professional services, manufacturing, and construction all making
a contribution. Downside risks to the outlook are mainly related
to a less favorable external environment and geopolitical risks.
Upside risks include the broader economic impact of a large
casino-resort project, currently under construction.

Cyprus's current account remains in deficit and its net external
liability position is relatively large, posing a challenge to the
ratings. After improving significantly in recent years, Cyprus's
current account deficit has deteriorated. It reached 6.7% of GDP
in 2017. Although the services balance remains in large surplus,
the goods trade deficit has widened. Overall, Cyprus's current
account is influenced by large exports and imports of transport
equipment related to investment (mainly ships). Cyprus's negative
net international investment position (NIIP) has improved but
also remains high, at 120.4% of GDP in 2017. Nevertheless, the
deficit and the negative NIIP reflect in large part activities in
the international business center and SPEs operating in the
shipping sector, with limited links to the domestic economy.
Excluding SPEs, the current account deficit was 1.5% and the
negative NIIP was 40.8% in 2017.

The Recent Presidential Election Result Provides A Solid Mandate
for Policy Continuity

Cyprus benefits from a stable political environment and
institutions, and the government remains committed to addressing
the country's challenges. This, together with Cyprus's Eurozone
membership, support its ratings. The re-election of President
Anastasiades in February 2018, with 56% of the votes, gives him a
strong mandate for a second consecutive term. DBRS expects
continuity on fiscal policy and the debt management strategy, and
progress on the policy efforts for the reduction of NPLs.
However, the government lacks a majority in the House of
Representatives. This has resulted in delays in adopting reforms
and is likely to remain a challenge for the government's policy
agenda.

RATING COMMITTEE SUMMARY

The DBRS Sovereign Scorecard generates a result in the BBB
(high) - BBB (low) range. Additional considerations factoring
into the Rating Committee decision included: A relatively limited
capacity for external adjustment within the Euro Area given the
size of the Cypriot economy, still high levels of private sector
debt, and the legacy effect of the losses imposed on depositors
in 2013. The main points discussed during the Rating Committee
include non-performing loans, the performance of the banking
sector, the fiscal position, the debt ratio, and the economic
outlook.

Notes: All figures are in EUR unless otherwise noted.


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G E R M A N Y
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AIR BERLIN: Lufthansa Won't Face Probe Over Rising Ticket Prices
----------------------------------------------------------------
Victoria Bryan at Reuters reports that the German cartel office
said on May 29 Lufthansa will not be investigated for market
abuse over rising ticket prices following the collapse of local
rival Air Berlin.

The watchdog had received complaints over high ticket prices and
had been looking into the matter with a view to decide whether to
instigate a full investigation, Reuters relates.

Air Berlin collapsed in October last year, leaving Lufthansa with
a monopoly on some German domestic routes for a few months,
Reuters recounts.

According to Reuters, the cartel office said that Lufthansa
tickets were on average 25-30 percent more expensive after the
insolvency but fell again after easyJet entered the market
following the acquisition of parts of Air Berlin.

                       About Air Berlin

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

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

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

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

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


BILFINGER SE: S&P Lowers Long-Term ICR to 'BB', Outlook Stable
--------------------------------------------------------------
S&P Global Ratings said that it had lowered to 'BB' from 'BB+'
its long-term issuer credit rating on Germany-based industrial
services group Bilfinger SE. The outlook is stable.

S&P said, "At the same time, we lowered our issue rating on the
EUR500 million senior unsecured notes to 'BB'. The recovery
rating is '3', indicating our expectation of 50%-70% recovery
prospects (rounded estimate: 55%) in the event of a payment
default.

"We affirmed the 'B' short-term issuer credit rating.

"The downgrade follows our downward revision of the medium-term
development path of the group's key credit metrics. After posting
a negative S&P Global Ratings-adjusted ratio of funds from
operations (FFO) to debt in 2017, we expect Bilfinger to be able
to reach adjusted FFO to debt in the high teens in 2018,
improving toward the higher end of 20%-30% range by end-2019.
Together with our assessment of the group's business risk profile
as fair, we consider these credit ratios, which are in our
significant financial risk profile category, to be in line with
our 'BB' issuer credit rating.

"The softening of the group's credit quality prospects stems from
Bilfinger being slower than we expected in its turnaround
program, as well as committing to share buy-backs despite delays
in achieving positive EBITDA and free operating cash flow (FOCF).
The group still has a comfortable cushion of cash reserves from
the sale of its building and facility business segment to EQT,
but we expect cash balances to have reduced to about EUR550
million-EUR570 million at end-2018 from EUR768 million at end-
2017 (and EUR1 billion at end-2016). Besides hampering credit
ratios, reduced cash balances limit the group's financial
flexibility for inorganic growth."

Since the sale of its building and facility business segment to
EQT in 2016, the group has been working toward its announced
strategy for 2020. The main pillars of the program are improving
control, in particular in terms of project related risks;
reducing the cost base and complexity of the organization; and
exiting from underperforming units considered no longer important
for the group. In S&P's view, Bilfinger has made notable progress
in executing its transformation program. The group has been able
to reduce earnings volatility related to its project business,
sold 11 underperforming businesses, and has been able to reduce
the number of legal entities in the group from 279 in early 2016
to less than 200 as of end-2017.

S&P continues to assess Bilfinger's business risk profile as fair
because it is a leading global industrial services provider,
covering engineering and maintenance services, for the process
industries market. The group is organized into E&T (engineering
and technologies) and MMO (maintenance, modifications, and
operations). The E&T segment provides consulting, engineering,
manufacturing, and assembly services for industrial facilities,
and MMO services cover the life cycle of industrial plants. The
group has strong technical capabilities, an established and
diversified customer base, and high brand recognition. Bilfinger
also continues to own a vendor claim to Apleona in the amount of
EUR100 million with nominal interest of 10% per year, as well as
a preferred participation note that entitles the company to 49%
of the resale proceeds from EQT.

Despite progress in operational restructuring, the main ongoing
factor limiting Bilfinger's credit profile is its low
profitability. For the fiscal year ending Dec. 31, 2017,
Bilfinger reported sales of EUR4 billion with EBITA of minus
EUR118 million (unadjusted) and EUR3 million (adjusted by the
company). The result included a notable amount of special items
(about EUR120 million) related to restructuring and IT and
compliance costs, as well as the effects of legacy projects.
Reported FOCF and discretionary cash flow were highly negative at
minus EUR210 million and minus EUR259 million, respectively.
Bilfinger's 2017 financial performance was weaker than our
previous base case, reflecting the financial impact of the
restructuring being delayed by up to 12 months, but also partly
resulting from negative impacts related to legacy projects, in
particular in the U.S.

Positively, as of March 31, 2018, the group has been able to grow
its order book for the fourth consecutive quarter, and reported a
book-to-bill ratio of 1.2x. As an example, on May 14, the group
announced a further large order from Linde, in the U.S., for
cooperation in constructing a large polypropylene plant in Texas
with a combined value of $675 million. S&P said, "We expect
Bilfinger to continue to benefit from the recovering investment
climate in the process industries space, and for it to be
gradually able to grow its topline and improve its profitability
and cash generation. We view the group as having significantly
strengthened its project management and control over the past two
years, and therefore we expect less earnings volatility than in
the past related to large engineering projects."

S&P said, "The stable outlook reflects our view that Bilfinger
will continue to execute its transformation program, and achieve
higher profitability and return to positive FOCF by 2019. We also
expect that the key credit ratios, in particular adjusted FFO to
debt, will significantly improve and reach a level considered in
line with the current ratings, 25%-30%, over the next 18-24
months.

"Furthermore, we expect the group will be able to increase its
profitability and cash generation significantly by continuing to
reorganize nonperforming businesses, streamline structures, and
implement measures for organic growth. We see delivering results
in terms of financial performance as key to the direction of our
ratings on Bilfinger.

"We would likely lower the rating if the group's operating and
financial performance remained weaker than our expectations, due
to further delays in delivering on the transformation plan and an
inability to return to growth and profitability. Rating downside
would likely also develop if the group adopted a more aggressive
financial policy, for instance through continuing material
shareholder distributions in the form of share buy-backs beyond
the current EUR150 million program, or if the company were
unlikely to reach the adjusted FFO to debt level of 25%-30% we
see as appropriate for the current rating level.

"We view upside potential for the rating over the next 18 months
as limited, since this would require tangible strengthening of
Bilfinger's financial risk profile, in particular FFO to debt,
from the currently expected levels. With the group's business
profile, we would see Bilfinger returning to an adjusted FFO to
debt ratio in the upper half of the 30%-45% bracket, which could
potentially trigger a positive rating action."


REVOCAR 2018: DBRS Assigns BB Rating to Class D Notes
-----------------------------------------------------
DBRS Ratings Limited assigned ratings to the Class A Notes, Class
B Notes, Class C Notes and Class D Notes (together with the
unrated Class E Notes, the Notes) issued by RevoCar 2018 UG
(haftungsbeschrankt) (the Issuer) as follows:

-- AAA (sf) to the Class A Notes
-- A (sf) to the Class B Notes
-- BBB (high) (sf) to the Class C Notes
-- BB (sf) to the Class D Notes

The ratings address the timely payment of interest and ultimate
repayment of principal by the legal final maturity date.

The ratings are based on DBRS's review of the following
analytical considerations:

   -- Transaction capital structure, including form and
sufficiency of available credit enhancement.

   -- The ability of the transaction to withstand stressed cash
flow assumptions and repay investors according to the terms under
which they have invested.

   -- The Originator/Servicer's capabilities with respect to
originations, underwriting and servicing.

   -- DBRS conducted an operation risk review on Bank11 fÅr
Privatkunden und Handel GmbH's (Bank11) premises and deems it to
be an acceptable servicer.

   -- The transaction parties' financial strength with regard to
their respective roles.

   -- The sovereign rating of the Federal Republic of Germany,
currently at AAA.

   -- The consistency of the transaction's legal structure with
DBRS's Legal Criteria for European Structured Finance
Transactions methodology, the presence of legal opinions that
address the true sale of the assets to the Issuer and non-
consolidation of the Issuer with the seller.

The transaction structure was analyzed in Intex DealMaker.

Notes: All figures are in euros unless otherwise noted.


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I R E L A N D
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NORIA 2018-1: Moody's Assigns (P)Caa3 Rating to Class G Notes
-------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to Notes to be issued by Noria 2018-1:

EUR1216M Class A Fixed Rate Notes due June 2038, Assigned (P)Aaa
(sf)

EUR100M Class B Floating Rate Notes due June 2038, Assigned
(P)Aa2 (sf)

EUR88M Class C Floating Rate Notes due June 2038, Assigned (P)A2
(sf)

EUR40M Class D Floating Rate Notes due June 2038, Assigned
(P)Baa3 (sf)

EUR48M Class E Floating Rate Notes due June 2038, Assigned (P)Ba3
(sf)

EUR40M Class F Floating Rate Notes due June 2038, Assigned (P)B3
(sf)

EUR68M Class G Fixed Rate Notes due June 2038, Assigned (P)Caa3
(sf)

Please note that the definitive issuance amounts of the rated
classes may change from those stated above given confirmed
capital structure and final portfolio levels.

RATINGS RATIONALE

The transaction is a one year revolving cash securitisation of
consumer loan receivables extended by BNP PARIBAS Personal
Finance (BNP PF)(Aa3/P-1/Aa3(cr)) to obligors located in France.
The borrowers use the loans for several purposes, such as
property improvement, equipment sales and other undefined or
general purposes. Some of the loans are granted as part of a debt
consolidation offer. The servicer is also BNP PF.

The initial portfolio consists of personal loans and equipment
sale loans originated by BNP PF through its branches and direct
market activities as well as through point of sales of third
party business with whom BNP PF has commercial arrangements to
provide financing for equipment sale loans (together, consumer
loans). The balance of the portfolio (as of March 2018)
corresponds to approximately EUR[1.60] billion, for a total
number of [188,608] loans. The tenor of the loans varies (from
less than 1 year up to 15 years) depending on the purposes of the
loan. The weighted-average seasoning is [15.7] months. The
initial share of debt consolidation loans is [30.0]% of the
outstanding loan balance. All loans are standard French
amortising loans.

According to Moody's, the transaction benefits from credit
strengths such as the granularity of the portfolio, the financial
strength of the originator, and the positive performance of past
transactions. However, Moody's notes that the transaction
features some credit weaknesses such as high concentration to BNP
Group given the number of roles performed by that entities of
that group such as seller, servicer, issuer account bank, cash
manager and custodian. In addition, the transaction structure is
complex including interest deferral triggers for the mezzanine
and junior Notes and pro-rata payments on all classes of Notes
after the end of the revolving period.

Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of loans; (ii) historical
performance information of the total book and past ABS
transactions; (iii) the credit enhancement provided by
subordination; (iv) the liquidity support available in the
transaction by way of the reserve fund as well as the principal
to pay interest mechanism, and the (v) overall legal and
structural integrity of the transaction.

MAIN MODEL ASSUMPTIONS

Moody's determined the portfolio lifetime expected defaults of
6.50%, expected recoveries of 30.00% and Aaa portfolio credit
enhancement ("PCE") of 19.0%. The expected defaults and
recoveries capture Moody's expectations of performance
considering the current economic outlook, while the PCE captures
the loss it expects the portfolio to suffer in the event of a
severe recession scenario. Expected defaults and PCE are
parameters used by Moody's to calibrate its lognormal portfolio
loss distribution curve and to associate a probability with each
potential future loss scenario in its ABSCORE cash flow model to
rate Auto and Consumer ABS.

Portfolio expected defaults of 6.50% are higher than the French
Consumer ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i)
historic performance of the book of the originator, (ii) other
similar transactions used as a benchmark, and (iii) other
qualitative considerations.

Portfolio expected recoveries of 30.00% are in line with the
French Consumer ABS average and are based on Moody's assessment
of the lifetime expectation for the pool taking into account (i)
historic performance of the book of the originator, (ii)
benchmark transactions, and (iii) other qualitative
considerations.

PCE of 19.0% is higher than the French Consumer ABS average and
is based on Moody's assessment of the pool taking into account
(i) the unsecured nature of the loans, and (ii) the relative
ranking to the originators peers in the French and EMEA consumer
ABS market. The PCE level of 19.0% results in an implied
coefficient of variation ("CoV") of approximately 38%.

Principal Methodology

The principal methodology used in these ratings was 'Moody's
Approach to Rating Consumer Loan-Backed ABS' published on
September 2015.

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

Factors that may cause an upgrade of the ratings include a
performance of the pool which is significantly better than
expected.

Factors that may cause a downgrade of the ratings include a
significant decline in the overall performance of the pool and a
significant deterioration of the credit profile of the
originator.

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 Class A Notes. Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed but
may have a significant effect on yield to investors.

Loss and Cash Flow Analysis:

Moody's used its cash-flow model Moody's ABSCORE as part of its
quantitative analysis of the transaction. Moody's ABSCORE model
enables users to model various features of a standard European
ABS transaction -- including the specifics of the loss
distribution of the assets, their portfolio amortisation profile,
yield as well as the specific priority of payments, swaps and
reserve funds on the liability side of the ABS structure.

Stress Scenarios:

In rating consumer loan ABS, loss rate and loss volatility
measured as coefficient of variation are two key inputs that
determine the transaction cash flows in the cash flow model.
Parameter sensitivities for this transaction have been tested in
the following manner: Moody's tested nine scenarios derived from
a combination of mean default rate: 6.50% (base case), 6.75%
(base case + 0.25%), 7.00% (base case + 0.50%) and recovery rate:
30.0% (base case), 25.0% (base case - 5%), 20.0% (base case -
10%). The model output results for Class A Notes under these
scenarios vary from Aaa (sf) (base case) to Aa1 (sf) assuming the
mean default rate is 7.00% and the recovery rate is 20.0% all
else being equal. Parameter sensitivities provide a
quantitative/model indicated calculation of the number of notches
that a Moody's rated structured finance security may vary if
certain input parameters used in the initial rating process
differed. The analysis assumes that the deal has not aged. It is
not intended to measure how the rating of the security might
migrate over time, but rather how the initial model output for
Class A Notes might have differed if the two parameters within a
given sector that have the greatest impact were varied.

Moody's issues provisional ratings in advance of the final sale
of securities and the above rating reflects Moody's preliminary
credit opinions regarding the transaction only. Upon a conclusive
review of the final documentation and the final note structure,
Moody's will endeavour to assign a definitive rating to the above
Notes. A definitive rating may differ from a provisional rating.
Please note that the actual definitive issuance amounts of the
rated classes may change from those stated above given confirmed
capital structure and final portfolio levels. However, this
aspect should not fundamentally impact the ratings as credit
enhancement and portfolio credit features are expected to be
consistent.


NORIA 2018-1: DBRS Assigns Provisional C Rating to Class G Notes
----------------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the Class A
Notes, Class B Notes, Class C Notes, Class D Notes, Class E
Notes, Class F Notes and the Class G Notes (collectively, the
Notes) to be issued by Noria 2018-1 (the Issuer) as follows:

-- AAA (sf) to the Class A Notes
-- AA (sf) to the Class B Notes
-- A (sf) to the Class C Notes
-- BBB (sf) to the Class D Notes
-- BB (sf) to the Class E Notes
-- B (sf) to the Class F Notes
-- C (sf) to the Class G Notes

The rating of the Class A Notes addresses the timely payment of
interest and ultimate repayment of principal by the legal final
maturity date. The ratings of the Class B Notes, the Class C
Notes, the Class D Notes, the Class E Notes, the Class F Notes
and the Class G Notes address the ultimate payment of interest
and ultimate repayment of principal by the legal final maturity
date.

The ratings will be finalized upon receipt of an execution
version of the governing transaction documents. To the extent
that the documents and information provided to DBRS as of this
date differ from the executed version of the governing
transaction documents, DBRS may assign different final ratings to
the Notes.

The ratings are based on a review by DBRS of the following
analytical considerations:

   -- Transaction capital structure, including form and
sufficiency of available credit enhancement.

   -- Credit enhancement levels are sufficient to support DBRS-
projected expected cumulative net losses under various stress
scenarios.

   -- The ability of the transaction to withstand stressed cash
flow assumptions and repay the Notes according to the terms of
the transaction documents.

   -- BNP Paribas Personal Finance (the Seller's) capabilities
with regard to originations, underwriting, servicing and its
financial strength.

   -- DBRS conducted an operational risk review of the Seller and
deems it to be an acceptable Servicer.

   -- The transaction parties' financial strength with regard to
their respective roles.

   -- The credit quality, diversification of the collateral and
historical and projected performance of the Seller's portfolio.

   -- The sovereign rating of the Republic of France, currently
rated AAA by DBRS.

   -- The expected consistency of the transaction's legal
structure with DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology, the presence of legal opinions
that are expected to address the true sale of the assets to the
Issuer and non-consolidation of the Issuer with the seller.

The transaction cash flow structure was analyzed with Intex
DealMaker.

Notes: All figures are in euros unless otherwise noted.


WILLOW NO.2: Moody's Hikes Series 39 Repack Notes Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service has upgraded the rating on the
following notes issued by WILLOW NO.2 (IRELAND) PLC Series 39:

Series 39 EUR 7,100,000 (Current outstanding amount of EUR
2,020,622.84) Secured Limited Recourse Notes due 2039, Upgraded
to Ba3 (sf); previously on Feb 28, 2018 B3 (sf) Placed Under
Review for Possible Upgrade

RATINGS RATIONALE

Moody's explained that the rating action taken is the result of a
rating action on Grifonas Finance No. 1 Plc Class A Notes, which
was upgraded in May 2018.

This transaction represents a repackaging of Grifonas Finance No.
1 Plc Class A Notes, a Greek residential mortgage-backed
security. All interest and principal received on the underlying
assets are passed net of on-going costs to the Series 39 notes.
The overcollateralization in the transaction mitigates the
negative carry generated by the difference in margin between the
underlying collateral and the repack notes.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities" published in June 2015.

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

This rating is essentially a pass-through of the rating of the
underlying securities. Noteholders are exposed to the credit risk
of Grifonas Finance No. 1 Plc Class A Notes and therefore the
rating moves in lock-step.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
rating of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy especially as the transaction
is exposed to an obligor located in Greece and 2) more
specifically, any uncertainty associated with the underlying
credits in the transaction could have a direct impact on the
repackaged transaction.


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


LOGWIN AG: S&P Alters Outlook to Positive & Affirms 'BB' ICR
------------------------------------------------------------
S&P Global Ratings revised its outlook on Luxembourg-based
logistics service provider Logwin AG to positive from stable. At
the same time, S&P affirmed its 'BB' long-term issuer credit
rating on Logwin.

The outlook revision follows Logwin's stronger financial
performance thanks to reported lower-than-expected S&P Global
Ratings-adjusted debt and demonstrated EBITDA resilience in 2017
(trends that continued in first-quarter 2018), which fueled an
improvement in credit measures. Furthermore, Logwin established a
consistent track record of conservative balance-sheet management,
while using sustainably positive free operating cash flow (FOCF)
to accumulate a cash balance of EUR128 million as of Dec. 31,
2017, which exceeded the company's adjusted debt (predominantly
comprising pension obligations and operating lease commitments)
of about EUR105 million as of the same date. The outlook revision
also indicates that Logwin could sustain its reduced adjusted
debt position and continue generating positive FOCF. This would
increase the company's cash position and provide even more
financial flexibility for potential future external growth or
create buffers against any possible operational setbacks.
Additionally, S&P thinks that, over the next two years, Logwin
could maintain adjusted funds from operations (FFO) to debt above
60%, which is within our threshold for the higher 'BB+' rating.

Incorporated in Luxembourg, Logwin reported revenues of EUR1.1
billion and an EBITA margin of 3.4% in 2017. It is a midsize
integrated logistics provider with an international footprint,
but focuses on the German and Austrian markets. The group has two
business segments:

-- Air and Ocean (67% of revenues and 5.1% EBITA margin in
    2017). Active in international air and sea freight forwarding
    services.

-- Solutions (33% of revenues and 1.8% EBITA margin in 2017).
    Active in supply chain management services from warehousing
    to value-added services.

Logwin achieved solid results in 2017, with reported EBITDA
increasing to EUR46 million from EUR44 million in 2016 -- despite
a difficult and competitive environment -- and FOCF generation in
excess of EUR20 million. This was thanks to solid trade volumes
and higher freight rates in the Air and Ocean business segment,
complemented by the stabilization of key sites and new business
with existing customers in the Solutions business segment. At the
same time, Logwin's adjusted debt declined to EUR105 million at
end-2017 from EUR123 million a year earlier, mainly on the back
of a reduction in pension obligations and operating lease
commitments. Given Logwin's solid financial performance, adjusted
FFO to debt improved from 50% in 2016 to 63% in 2017 -- a level
commensurate with S&P's minimal financial risk profile.

Still, in the context of difficult operating environment, there
remains a risk that Logwin will not be able to turn this stronger
FFO to debt into lasting value. S&P also acknowledges the
significant sensitivity of Logwin's credit measures to changes in
volatile pension obligations and operating lease commitments
(tied to the contract portfolio and lease contract durations),
which make up a material share of the company's total adjusted
debt (close to 90% at end-2017).

S&P said, "Logwin is a small-to-midsize logistics services
provider operating in the highly fragmented and competitive
underlying logistics industry, which in our view limits the
company's bargaining power and constrains the business risk
profile. Logwin is also exposed to cyclical end markets such as
retail, automotive, and chemicals, which can undermine the
company's earnings stability, in particular in the Solutions
segment. We also see the scale of the company's operations as
narrower than those of market leaders with a global reach.
Logwin's profitability is constrained by its track record of
relatively low (about 4%) and volatile EBIT margins, although
partially offset by its asset-light business model, to some
extent flexible cost base, and minimal capex needs.

"We expect Logwin to maintain a strong commitment to high service
quality and customer retention with customized service to key
clients, as it has done in the past. We expect stabilization of
the Solutions segment as the company's cost optimization measures
have strengthened its resiliency to volume decline to some
extent. While we factor in the business improvement and the
company's ability to maintain a similar customer base over the
years, our overall business assessment remains constrained by
Logwin's relatively small scale.

"At 3.4%, Logwin's 2017 EBITA margin was lower than that of peers
from a broader range of railroad, package express, and logistics
industries. While the EBITA margin in the Air and Ocean division
continues to be relatively resilient between 4% and 6%, we expect
that the EBITA margin in the Solutions will remain thin at around
1%-2% because of the high degree of service customization and
large exposure to seasonality leading to network underutilization
in some months.

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

"We could raise the rating if we considered that the company was
maintaining its positive EBITDA performance and FOCF generation,
and its reduced adjusted debt position, such that adjusted FFO to
debt remains in excess of 60%." Furthermore, an upgrade would be
contingent on S&P's belief that the company:

-- Maintains its prudent approach toward dividend distribution
    and investments without materially affecting its credit
    metrics; and

-- Retains an ample cash position to counterbalance Logwin's
    small absolute EBITDA size, while providing downside
    protection against adverse trading conditions.

S&P said, "We would revise the outlook to stable if Logwin's
earnings weakened, due to, for example, an unexpected
deterioration in operating conditions linked to the loss of one
or more key customers or a significant economic downturn in China
affecting trade volumes, such that the ratio of adjusted FFO to
debt deteriorated to less than 60%, with limited prospects of
improvement.

"An outlook revision to stable would also be likely if we noted
any deviations from the company's current conservative financial
policy that would prevent credit measures remaining consistent
with a higher rating."


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


CIMPRESS NV: Moody's Affirms Ba2 CFR & Alters Outlook to Neg.
-------------------------------------------------------------
Moody's Investors Service affirmed Cimpress N.V.'s (Cimpress)
Corporate Family Rating (CFR) at Ba2, its Probability of Default
Rating (PDR) at Ba2-PD, and its Speculative Grade Liquidity (SGL)
rating at SGL-1. Concurrently, Moody's assigned Ba1 ratings to
the company's new senior secured credit facilities and a B1
rating to the new senior unsecured notes. Moody's revised the
rating outlook to negative from stable.

Cimpress is refinancing its existing credit facilities and senior
notes, both due 2022, with new credit facilities due 2023 and new
senior notes due 2026. Incremental proceeds from the new senior
notes will be applied towards paydown on the revolver, the call
premium on the existing notes, and transaction fees. The company
is issuing a call notice for its existing bonds conditioned on
the completion of the new notes offering. Proceeds equal to the
principal amount of the existing notes would be held in escrow
until the redemption is completed.

The change in outlook to negative reflects Moody's view that
there is a reasonable likelihood for Cimpress' debt/EBITDA to be
sustained above 3x as the company executes on its capital
allocation strategies which includes stock repurchases in
addition to acquisitions and reinvestment for organic growth.
Moody's had previously cited this level of leverage as
potentially prompting a downgrade.

Affirmations:

Issuer: Cimpress N.V.

Corporate Family Rating, Affirmed Ba2

Probability of Default Rating, Affirmed Ba2-PD

Speculative Grade Liquidity Rating, Affirmed SGL-1

Assignments:

Issuer: Cimpress N.V.

Senior Secured Bank Credit Facility, Assigned Ba1 (LGD 3)

Senior Unsecured Regular Bond/Debenture, Assigned B1 (LGD 5)

Issuer: Cimpress USA Incorporated

Senior Secured Bank Credit Facility, Assigned Ba1 (LGD3)

Outlook Actions:

Issuer: Cimpress N.V.

Outlook, Changed To Negative From Stable

Issuer: Cimpress USA Incorporated

Outlook, Assigned Negative

The following ratings remain unchanged and will be withdrawn upon
the closing of the transaction:

Issuer: Cimpress N.V.

Senior secured first lien bank credit facilities of Ba1 (LGD3)

Senior unsecured notes of B1 (LGD5)

RATINGS RATIONALE

Cimpress' Ba2 CFR reflects strong organic revenue growth which
outpaces the market and good free cash flow to debt of over 10%
normalized for the earn-out payments. The company's growth stems
from solid online technology for small print jobs and Moody's
anticipates that the company will grow organic revenue at rates
in at least the mid-single digits over the next 12 to 18 months.
The company operates within a large addressable market and
benefits from its scale as it executes on its strategy to provide
customers with mass customization. Relative to its early days
when the business consisted solely of Vistaprint, the company has
benefited from increased diversification across products,
regions, and customers. The credit profile is constrained by the
execution and re-levering risks of ongoing acquisitions and share
buyback activity, the broader downward trajectory of the printing
industry, declining demand for physical advertising-related
products, and margin pressures from shipping costs and prices of
small orders within the Vistaprint business. As of March 31,
2018, debt/EBITDA measured 3.4x (including Moody's standard
adjustments).

The SGL-1 liquidity rating reflects Moody's expectation that
Cimpress will maintain very good liquidity through mid-2019
supported by cash on the balance sheet, positive free cash flow,
and availability under its revolving credit facility which will
expire in 2023. The revolver is large and supports Cimpress'
growth strategy which includes acquisitions. Due to financial
covenant constraints, the company is limited to $687 million of
borrowings under the revolver. Following the refinancing
transaction, the company will have about $150 million drawn on
the facility.

Factors that could lead to a downgrade include debt/EBITDA
sustained above 3x, free cash flow (FCF) to debt sustained at or
below 5%, or contraction of margins or stagnation of organic
revenue growth.

Factors that could lead to an upgrade include debt/EBITDA
approaching 2x, financial policies supportive of leverage
sustained at this level, and FCF/debt above 10% together with
solid operating fundamentals, a supportive business environment,
and increased revenue diversification.

The principal methodology used in these ratings was Media
Industry published in June 2017.

Cimpress, headquartered in the Netherlands and with executive
offices in Paris, France and Waltham, Massachusetts, is a
provider of customized marketing products and services to small
businesses and consumers worldwide, largely comprised of printed
and other physical products. Revenue for the twelve months ended
March 31, 2018 measured $2.5 billion.


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


PROCHNIK SA: Asks Lodz Court to Consider Bankruptcy Motion
----------------------------------------------------------
Reuters reports that Prochnik SA said on May 29 that in the face
of growing liquidity problems, the management decided to ask the
court in Lodz to consider the company's bankruptcy declaration
motion.

On May 18, Prochnik filed simultaneously a motion for bankruptcy
and a motion to put its consideration on hold until the decision
on another motion for the company's rehabilitation proceedings
has been made, Reuters relates.

The company applied for rehabilitation proceedings on March 27,
Reuters recounts.

Prochnik says the latest decision is due to its caution and
additional circumstances, which according to the management,
endanger the company's further operations and level of liquidity,
Reuters relays.

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


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


EURASIA DRILLING: S&P Affirms 'BB+' ICR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issuer credit rating on
Russia-based oilfield services company Eurasia Drilling Co.
(EDC). The outlook is stable. S&P also affirmed its 'B' short-
term rating on EDC.

Additionally, S&P affirmed its 'BB+' issue rating on EDC's senior
unsecured debt.

S&P said, "The affirmation follows the revision of our risk
assessment for the contract drilling industry and reflects that
despite higher-than-previously considered industry risk, the
rating continues to reflect EDC's leading position in the Russian
drilling market with more than 5.5 million meters drilled and
EBITDA of roughly $540 million in 2017. This is further supported
by our expectation of relatively low leverage, with funds from
operations (FFO) to adjusted debt of more than 60% over the next
few years."

The sharp downturn in oil prices since 2014 has had ramifications
for both service companies and drillers. The magnitude and
longevity of cost-cutting by oil producers -- the service
companies' customers--leads us to believe that revenues and
margins are unlikely to rebound to the inflated levels seen over
2012-2014. For drillers in particular, their multiyear contracts
have generally not been long enough to provide revenue visibility
until prices and demand recovered. Since drilling is EDC's
primary activity, it is hugely exposed to the aforementioned
industry dynamics that affect its business position.

At the same time, EDC relies on three main customers that account
for more than 90% of all operations. In the past, EDC was a
drilling arm of Russian Lukoil and to this day about 50% of
drilling is performed for this oil company. Such concentration
exposes EDC to the risk of reduction in drilled volumes if the
contracts are not extended. Partly mitigating this risk is the
fact that oil companies continue to rely on EDC because their in-
house drilling fleets are not big enough to cope with all their
required activities. In addition, compared with other rigs in the
Russian market, most of which are older than 20 years, EDC's rig
fleet is relatively young, with an average age of 14 years. This
helps EDC to secure its leading position in the Russian drilling
market, of which it holds 20% by footage (including in-house
volumes by the drilling arms of Russian exploration and
production [E&P] companies).

S&P said, "As we noted in our research update on April 26, 2018
(Russia-Based Oilfield Services Group Eurasia Drilling Co.
Upgraded To 'BB+' On Improved Performance; Outlook Stable), we
expect EDC's drilling activities will reduce in 2018. 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
will decline by about 10%-15% in 2018, and only start climbing
again once the agreement between OPEC and Russia expires.

"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 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.

"We would likely downgrade EDC if we saw credit ratios
deteriorate such that FFO to adjusted debt declined materially
below 60%." This could happen in the following instances, none of
which S&P 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;

-- A substantial increase in the company's investments program
    that resulted in negative FOCF generation; or

-- A change in financial policy leading to high shareholder
    distributions.

S&P said, "We believe 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 supporting EDC."


NOVIKOMBANK JSCB: Moody's Raises LT Deposit Ratings to B1
---------------------------------------------------------
Moody's Investors Service has upgraded Novikombank JSCB's
long-term deposit ratings to B1 from B2, Baseline Credit
Assessment (BCA)/Adjusted BCA to b3 from caa1, long-term
Counterparty Risk Assessment to Ba3(cr) from B1(cr) and affirmed
the bank's Not Prime short-term deposit ratings and Not Prime(cr)
short-term Counterparty Risk Assessment. The outlook on the B1
long-term ratings is now positive.

RATINGS RATIONALE

The upgrade of Novikombank's deposit ratings and the Baseline
Credit Assessment was triggered by the combination of the recent
corporate actions that boosted the bank's solvency and liquidity
metrics as well as eliminated possible contagion risks related to
the financial rehabilitation of its insolvent subsidiary bank,
JSC Fundservicebank (not rated).

The first driver for the rating upgrade is the recovery of the
bank's solvency metrics after numerous special corporate actions
undertaken by the bank's controlling shareholder, a Russian
state-owned corporation Rostec (not rated). Since the beginning
of 2017, Novikombank sold RUB54.7 billion of its problem loans to
the third party related with the bank's shareholder thus
eliminating the need to recognize additional credit losses on
these problematic exposures. This improvement in asset quality
was combined with RUB 30.7 billion in direct capital
contributions made by Rostec in 2016-2018, that helped to offset
substantial impairment of legacy problem loans, mostly originated
before 2014. These capital injections, along with the sale of
problem assets, not only recovered the bank's solvency, but also
helped to improve the bank's liquidity position. As a result, the
bank's Tier 1 and Total regulatory capital adequacy ratios stood,
respectively, at 11.1% and 15.4% as of 1 April 2018, i.e. well
above the regulatory minima, while liquid assets now account for
around half of the bank's total assets.

The second driver for the rating upgrade is the recently achieved
agreement on the change of Fundservicebank's investor to
Roscosmos from Novikombank. This change will fully eliminate for
Novikombank the contingent risks related with Fundservicebank's
financial rehabilitation, and will improve Novikombank's IFRS
consolidated financial metrics by reducing operating expenses and
total risk-weighted assets.

Despite the substantial external financial aid and
Fundservicebank's deconsolidation, the bank's coverage of problem
loans by loan loss reserves still remains weak. According to the
bank's full-year 2017 financial report under the local GAAP,
Novikombank's loan loss reserves on corporate loans (RUB17.8
billion) covered overdue corporate loans (RUB 25.1 billion) by
around 70%. This weak coverage of problem loans by loan loss
reserves continue to constrain the bank's b3 BCA.

OUTLOOK

Positive outlook assigned to Novikombank's long-term ratings
reflects pro-active approach of the bank's controlling
shareholder to address the bank's remaining asset risks, combined
with Moody's expectations that the ongoing robust operating
performance and full profit retention will further strengthen the
bank's solvency metrics. The bank's IFRS pre-provision earnings
stood at around RUB7 billion in 2017 and Moody's expects those
will be at least sustained in 2018-2019, thanks to low funding
costs, lean operating structure and abundant liquidity along with
the sectors' healthy interest rates on low-risk liquid assets.
These profitability considerations should help the bank to
further build-up capital and along with the still ongoing clean-
up of the bank's assets are now translating into positive outlook
assigned to Novikombank's B1 long-term ratings, that incorporate
two notches of a rating uplift from its b3 BCA, thanks to the
high government support.

WHAT COULD MOVE THE RATINGS UP/DOWN

Long-term ratings and the Baseline Credit Assessment could be
upgraded in case of a further solvency metrics' improvements,
thanks to profit retention and a higher coverage of problem loans
by loan loss reserves.

Novikombank's ratings may be downgraded if the Russian
government's capacity or propensity to render support were to
diminish (which is not currently anticipated) or the bank's
linkage with Rostec, being a treasury unit for the state holding,
were to weaken.

LIST OF AFFECTED RATINGS

Issuer: Novikombank JSCB

Upgrades:

LT Deposit Rating (Local & Foreign Currency), upgraded to B1 from
B2, Outlook Changed to Positive from Developing

Baseline Credit Assessment, Upgraded to b3 from caa1

Adjusted Baseline Credit Assessment, Upgraded to b3 from caa1

LT Counterparty Risk Assessment, Upgraded to Ba3(cr) from B1(cr)

Affirmations:

ST Counterparty Risk Assessment, Affirmed Not Prime(cr)

ST Issuer Rating (Local & Foreign Currency), Affirmed Not Prime

Outlook Actions:

Outlook, Changed to Positive from Developing

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in April 2018.


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


CAIXABANK CONSUMO: DBRS Rates Class B Notes BB (high)(sf)
---------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the
following notes to be issued by Caixabank Consumo 4 FT (the
Issuer):

-- AA (low) (sf) to the Class A Notes
-- BB (high) (sf) to the Class B Notes

The Issuer is expected to be a static securitization of unsecured
consumer loans originated by CaixaBank, S.A. (CaixaBank or the
originator). At the closing of the transaction, the Issuer will
use the proceeds of the Class A and Class B notes to fund the
purchase of the unsecured consumer loans from the seller,
CaixaBank. CaixaBank will also be the servicer of the portfolio.
In addition, CaixaBank will provide separate subordinated loans
to fund the initial expenses and the reserve fund. The
securitization will take place in the form of a fund, in
accordance with Spanish Securitization Law.

The rating of the Class A Notes addresses the timely payment of
interest and ultimate repayment of principal before the final
maturity date. The rating of the Class B Notes addresses the
ultimate payment of interest and ultimate repayment of principal
before the final maturity date.

The ratings are based on DBRS's review of the following
analytical considerations:

   -- The transaction's capital structure and the form and
sufficiency of available credit enhancement in the form of (1)
subordination, (2) reserve fund and (3) excess spread.

   -- Credit enhancement levels are sufficient to support DBRS's
projected expected cumulative loss assumptions under various
stressed cash flow assumptions for the notes;

   -- The ability of the transaction to withstand stressed cash
flow assumptions and repay investors according to the terms of
the transaction documents;

   -- The originator and servicer's financial strength and
capabilities with respect to originations, underwriting,
servicing and financial strength;

   -- DBRS conducted an operational risk review at CaixaBank's
premises in Barcelona and deems it an acceptable originator and
servicer;

   -- The credit quality of the collateral and ability of the
servicer to perform collection activities on the collateral;

   -- The sovereign rating of the Kingdom of Spain, currently at
"A"; and

   -- The legal structure and presence of legal opinions
addressing the assignment of the assets to the issuer and
consistency with DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.

The above-mentioned ratings are provisional; the ratings will be
finalized upon receipt of execution version of the governing
transaction documents. To the extent that the documents and
information provided to DBRS as of this date differ from the
executed version of the governing transaction documents, DBRS may
assign different final ratings to the Class A and the Class B
Notes.

The transaction cash flow structure was analyzed with Intex Deal
Maker.

Notes: All figures are in euros unless otherwise noted.


ENCE ENERGIA: Moody's Hikes CFR & Sr. Notes Rating to Ba2
---------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) of ENCE Energia y Celulosa S.A (ENCE) to Ba2 from
Ba3, its probability of default rating (PDR) to Ba2-PD from Ba3-
PD, as well as the rating of the EUR250 million senior notes
maturing in 2022 to Ba2 from Ba3. The outlook on the ratings
remain stable.

"Today's rating action primarily recognises ongoing structural
improvements of ENCE's business profile as well as our
expectation that pulp prices are likely to remain high in the
next 2-3 years", says Martin Fujerik, Moody's lead analyst for
ENCE.

RATINGS RATIONALE

Moody's upgrade with a stable outlook primarily reflects an
improvement of ENCE's business profile leading to its increased
resilience in an environment of inherently volatile pulp prices.
Over the last 18 months ENCE has conservatively grown its
regulated renewable energy business in Spain, which is generally
more stable than the pulp business. With a current installed
capacity of 170 MW the company has already become the leading
player in the country. The EBITDA contribution from the energy
business has grown to close to EUR50 million in 2017 from less
than EUR20 million in 2013, now already covering a good portion
of the fixed costs of the pulp business.

The rating agency expects that the importance of the energy
business will continue to grow and that the further expansion
will be undertaken without a major deterioration of the balance
sheet assuming a successful execution of the two greenfield
biomass energy plants investment projects. ENCE is likely to
remain well below its net leverage ceiling of 5.0x for the
business (0.6x for the last 12 months to March 2018), even though
cash flow generation for the business in the next two years will
most likely be negative due to elevated capital spending. Ence
currently targets EUR78 million EBITDA for the business by 2020,
but successful execution of the Huelva 40 MW project and the
recently announced new 50 MW project in Puertollano will enable
it to overachieve that target.

Another factor supporting the increased resilience is ENCE's
track record of cash costs reduction in the pulp business that
declined to EUR369 per tonne in the first quarter of 2018 from
EUR423 per tonne in the fourth quarter 2013, despite
substantially increased pulp prices during the period. That has
helped ENCE to remain cash flow generative even in the years of
depressed pulp prices, such as 2016.

Moody's action is also supported by the rating agency's
expectation that pulp prices are likely to remain above the last
four years average over the next two to three years. Although
Moody's sees a risk of price moderation in the second half of
2018 from an all-time high currently, as substantial new
capacities continue to ramp-up during the year, the demand
continues to be strong and there are no material new capacities
ramping up between 2019-2021. This should help ENCE to retain
strong credit metrics, commensurate with a higher rating, such as
Moody's adjusted debt/EBITDA below 2.0x, even with a substantial
expansion of the energy business, and Moody's adjusted RCF/debt
well in twenties in percentage terms.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Further upgrade would primarily require ENCE further diversifying
its business profile beyond pulp. It would also require: (1) its
Moody's adjusted EBITDA margin maintained in high twenties in %
terms through the cycle; (2) consistent positive free cash flow
through the cycle; (3) its consolidated Moody's adjusted
debt/EBITDA maintained below 2.0x through the cycle; and (4) its
consolidated Moody's adjusted RCF/debt maintained above 30%
through the cycle.

Moody's could downgrade ENCE, if its: (1) free cash flow
generation remains consistently negative; (2) Moody's adjusted
debt/EBITDA moves sustainably above 3.0x; (2) Moody's adjusted
RCF/debt trends sustainably below 20%; (2) liquidity sustainably
deteriorates.

Headquartered in Madrid, Spain, ENCE is a leading European
producer of bleached hardwood kraft pulp from eucalyptus, with
growing renewable energy operations in Spain. In its pulp
business, following the closure of its Huelva pulp mill in 2014,
ENCE has production capacity of about 1.1 million tonnes per
annum of eucalyptus pulp from its two remaining Spanish mills,
Navia and Pontevedra, as well as biomass cogeneration (lignin)
operations that allow the business to be broadly energy self-
sufficient. In its energy business, the group currently operates
six independent energy-generation facilities, mostly in southern
Spain, with a total installed capacity of around 170 megawatts
(MW). In 2017, ENCE reported sales of around EUR740 million. The
company is publicly listed on the Madrid stock exchange, with a
free float of around 55% as of the end of March 2018.

The principal methodology used in these ratings was Paper and
Forest Products Industry published in March 2018.

Upgrades:

Issuer: ENCE Energia y Celulosa, S.A.

Probability of Default Rating, Upgraded to Ba2-PD from Ba3-PD

Corporate Family Rating, Upgraded to Ba2 from Ba3

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 from Ba3

Outlook Actions:

Issuer: ENCE Energia y Celulosa, S.A.

Outlook, Remains Stable


FTPYME TDA CAM 4: Moody's Raises Rating on Class C Notes to Caa2
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of three
tranches, confirmed two tranches and affirmed six tranches in
three Spanish ABS-SME deals.

Issuer: CAIXA PENEDES PYMES 1 TDA, FTA

EUR44.6M (Current outstanding amount 39.4M) Class B Notes,
Affirmed Aa1 (sf); previously on Apr 24, 2018 Upgraded to Aa1
(sf)

EUR19.4M Class C Notes, Confirmed at B1 (sf); previously on Apr
24, 2018 B1 (sf) Placed Under Review for Possible Upgrade

Issuer: FTPYME TDA CAM 4, FTA

EUR931.5M (Current outstanding amount 7M) Class A2 Notes,
Affirmed Aa1 (sf); previously on Apr 24, 2018 Upgraded to Aa1
(sf)

EUR127M (Current outstanding amount 5.7M) Class A3(CA) Notes,
Affirmed Aa1 (sf); previously on Apr 24, 2018 Upgraded to Aa1
(sf)

EUR66M Class B Notes, Confirmed at B2 (sf); previously on Apr 24,
2018 B2 (sf) Placed Under Review for Possible Upgrade

EUR38M Class C Notes, Upgraded to Caa2 (sf); previously on Apr
24, 2018 Ca (sf) Placed Under Review for Possible Upgrade

EUR29.3M Class D Notes, Affirmed C (sf); previously on Dec 18,
2017 Affirmed C (sf)

Issuer: SANTANDER EMPRESAS 3, FTA

EUR117.3M (Current outstanding amount 92.5M) Class C Notes,
Affirmed Aa1 (sf); previously on Apr 24, 2018 Upgraded to Aa1
(sf)

EUR70M Class D Notes, Upgraded to Baa1 (sf); previously on Apr
24, 2018 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR45.5M Class E Notes, Upgraded to Caa2 (sf); previously on Apr
24, 2018 Caa3 (sf) Placed Under Review for Possible Upgrade

EUR45.5M Class F Notes, Affirmed C (sf); previously on Dec 18,
2017 Affirmed C (sf)

The three transactions are ABS backed by small to medium-sized
enterprise (ABS SME) loans located in Spain. SANTANDER EMPRESAS
3, FTA was originated by Banco Santander S.A. (Spain) ("Banco
Santander") (A2/P-1), Caixa Penedes Pymes 1 TDA, FTA was
originated by Caixa d'Estalvis del Penedes, which is now part of
Banco Sabadell, S.A. and FTPYME TDA CAM 4, FTA was originated by
Caja de Ahorros del Mediterraneo ("CAM"), which is now part of
Banco Sabadell, S.A. as well.

RATINGS RATIONALE

Moody's upgrades conclude Moody's review, dated April 24, 2018,
following the upgrade of the Government of Spain's sovereign
rating to Baa1 from Baa2 and the raising of the country ceiling
of Spain to Aa1 from Aa2.

The ratings are also prompted by the increase in the credit
enhancement available for the affected tranches due to portfolio
amortization.

Credit Enhancement levels for Class D notes in SANTANDER EMPRESAS
3, FTA have increased to 25.3% from 22.7% over the last 6 months
while Class E Credit Enhancement has increased to 3.5% from 2.5%
in the same period.

In the case of Class C notes in FTPYME TDA CAM 4, Credit
Enhancement levels have increased to 1.9% from -0.2% since last
December 2017. This Credit Enhancement increase is driven by
deleveraging but also by the removal in full of the PDL in place.

Revision of key collateral assumptions

As part of the review, Moody's reassessed its default
probabilities (DP) as well as recovery rate (RR) assumptions
based on updated loan by loan data on the underlying pools and
delinquency, default and recovery ratio update.

Moody's maintained its DP on current balance and recovery rate
assumptions as well as portfolio credit enhancement (PCE) due to
observed pool performance in line with expectations on SANTANDER
EMPRESAS 3, FTA, FTPYME TDA CAM 4, FTA and CAIXA PENEDES PYMES 1
TDA, FTA.

Exposure to counterparties

Moody's rating action took into consideration the notes' exposure
to relevant counterparties, such as servicer, account banks or
swap providers.

Moody's considered how the liquidity available in the
transactions and other mitigants support continuity of notes
payments, in case of servicer default, using the CR Assessment as
a reference point for servicers.

Moody's also matches banks' exposure in structured finance
transactions to the CR Assessment for commingling risk, with a
recovery rate assumption of 45%.

Moody's also assessed the default probability of the account bank
providers by referencing the bank's deposit rating.

Moody's assessed the exposure to the swap counterparties. Moody's
considered the risks of additional losses on the notes if they
were to become unhedged following a swap counterparty default by
using CR Assessment as reference point for swap counterparties.

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:

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral
that is better than Moody's expected, (2) deleveraging of the
capital structure, (3) improvements in the credit quality of the
transaction counterparties, and (4) reduction in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) performance of the underlying collateral
that is worse than Moody's expected, (2) deterioration in the
notes' available credit enhancement, (3) deterioration in the
credit quality of the transaction counterparties, and (4) an
increase in sovereign risk.


IM CAJAMAR: DBRS Maintains Notes Ratings Under Positive Review
--------------------------------------------------------------
DBRS Ratings Limited maintained the Under Review with Positive
Implications (UR-Pos.) status on the rated notes of IM BCC
Cajamar 1 (Cajamar 1), IM Cajamar 5 F.T.A. (Cajamar 5) and IM
Cajamar 6 F.T.A. (Cajamar 6). All three transactions are Spanish
residential mortgage-backed securities (RMBS) transactions
originated and serviced by Cajamar Caja Rural, Sociedad
Cooperativa de Credito (Cajamar).

The notes were placed Under Review with Positive Implications
(UR-Pos.) on April 30, 2018, following the upgrade of the Kingdom
of Spain's Long-Term Foreign and Local Currency - Issuer Rating
to 'A' from A (low) and DBRS's ongoing analysis of the Spanish
real estate market. (https://www.dbrs.com/research/326766/dbrs-
takes-rating-actions-on-21-eu-structured-finance-transactions-
following-spain-sovereign-rating-upgrade). The maintenance of the
UR-Pos. status on the rated notes follows an annual review of
each of the transactions incorporating the Spanish sovereign
rating upgrade and the following analytical considerations:

   -- Portfolio performance, in terms of delinquencies, defaults
and losses.

   -- Portfolio default rate (PD), loss given default (LGD) and
expected loss assumptions for the remaining receivables.

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

All three transactions are securitizations of residential
mortgage loans originated by Cajamar that closed in January 2016,
September 2007 and February 2008, respectively. The Management
Company for all three transactions is Intermoney Titulizacion,
SGFT, S.A. (Intermoney).

PORTFOLIO PERFORMANCE AND ASSUMPTIONS

For Cajamar 1, the current cumulative default ratio is 0.1% and
cumulative loss ratio is 0.0%. As of 30 April 2018, the 30+ and
90+ delinquency ratios were 2.1% and 0.3%, respectively.

For Cajamar 5, the current cumulative default ratio is 5.6% and
cumulative loss ratio is 1.6%. As of 28 February 2018, the 30+
and 90+ delinquency ratios were 2.8% and 0.3%, respectively.

For Cajamar 6, the current cumulative default ratio is 8.0% and
cumulative loss ratio is 2.1%. As of 28 February 2018, the 30+
and 90+ delinquency ratios were 3.3% and 0.5%, respectively.

The performance of each transaction is within DBRS's
expectations.

DBRS conducted a loan-by-loan analysis of the remaining pool of
the receivables in each transaction and has updated its base case
PD and LGD assumptions as follows:

For Cajamar 1, DBRS has updated its base case PD and LGD
assumptions to 8.0% and 38.2%, respectively.
For Cajamar 5, DBRS has updated its base case PD and LGD
assumptions to 3.7% and 13.2%, respectively.
For Cajamar 6, DBRS has updated its base case PD and LGD
assumptions for the collateral pool to 4.4% and 24.0%,
respectively.

The improvement of the PD and LGD assumptions, which is credit
positive, reflects the Spanish sovereign rating upgrade and the
decrease of the portfolio loan-to-value ratios as the portfolios
continue to deleverage. As DBRS continues to analyze the possible
effect of recent developments in the Spanish real estate market,
all the rated notes remain UR-Pos.

CREDIT ENHANCEMENT AND RESERVE FUND

For each transaction, credit enhancement (CE) to the rated notes
is provided by the subordination of junior classes and a Cash
Reserve.

For Cajamar 1, Series A CE was 25.4% and Series C CE was 0.0%, as
of the May 2018 payment date.

For Cajamar 5, Class A Notes CE remained at 10.7%, as of the
March 2018 payment date.

For Cajamar 6, Class A Notes CE remained at 16.9%, as of the
March 2018 payment date.

Banco Santander SA acts as the Account Bank for all three
transactions. The Account Bank's reference rating of A (high) -
being one notch below its DBRS public Long-Term Critical
Obligations Rating of AA (low) - is consistent with the Minimum
Institution Rating given the rating assigned to the most senior
class of rated notes in each transaction, as described in DBRS's
"Legal Criteria for European Structured Finance Transactions"
methodology.

Notes: All figures are in euros unless otherwise noted.

The Affected Ratings is available at https://bit.ly/2IYn9hw


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


BEAUFORT: Thousands of Customers Likely to Recover Money
--------------------------------------------------------
Huw Jones at Reuters reports that regulators said on May 29
thousands of customers of failed British brokerage Beaufort
Securities are likely to get all their money back.

Beaufort, which specialized in helping raise money for small
speculative mining companies, was declared insolvent in March
after the U.S. Department of Justice alleged it had a role in a
more than US$50 million stock fraud and a laundering scheme
involving a work by Pablo Picasso, Reuters recounts.

The insolvency has frozen up to 40% of the assets of some of
Beaufort's estimated 16,000 clients, comprising retail investors
and small companies, which included dozens of junior miners,
Reuters discloses.

"The administrators have confirmed that more than 90 percent of
clients who are eligible for Financial Services Compensation
Scheme (FSCS) coverage are likely to have losses which fall under
the GBP50,000(US$66,170) limit and so will receive back all their
client money and custody assets," Reuters quotes the Financial
Conduct Authority (FCA) as saying in a statement.

The FCA said remaining customers with portfolios of more than
GBP50,000 may not get all their cash back, Reuters relates.  It
said a four-year wait for compensation would be the worst-case
scenario, and that if a plan from Beaufort's administrator PwC is
approved by the courts, the distribution of assets should start
in September, Reuters notes.

According to Reuters, the FCA said some of Beaufort's customers
may have suffered losses due to mis-selling and could bring a
separate FSCS claim.

Earlier this month PwC cut its estimate for administration costs
to GBP55 million over two years from GBP100 million over four
years, Reuters relates.

PwC has said it has frozen around GBP500 million in client assets
and a further GBP50 million in cash, Reuters relays.

Distribution costs will be deducted from this, requiring the FSCS
to make up any shortfall to its GBP50,000 cap, Reuters states.


CARILLION: Crown Representative Slow to Spot Financial Problems
---------------------------------------------------------------
Rhiannon Curry at The Telegraph reports that the UK Government's
system to monitor failed contractor Carillion used out of date
financial figures and was too narrow in its scope, a group of MPs
has said, calling for an urgent review.

The joint inquiry into Carillion's insolvency, which is being run
by the pensions and business select committees, has written to
Cabinet Office minister David Lidington to ask him about the role
of a Government representative assigned to monitor Carillion, The
Telegraph relates.

It questioned why risk assessments into the company used "out-of-
date" financial information which was more than a year old, and
only looked at contracts in which the Government was directly
involved, The Telegraph discloses.

According to The Telegraph, a previous report from the committee
found that the Crown Representative, the individual assigned to
oversee a company providing services to the Government, "served
no noticeable purpose in alerting the Government to potential
issues" ahead of Carillon's profit warning in July 2017.

A report from the Public Accounts Committee found that the
Government had been slow to spot Carillion's financial
difficulties and did not designate the company "high risk" until
after it had issued its first profit warning, The Telegraph
relays.

Mr. Lidington was asked why the Cabinet Office did not confirm
the high risk rating before the company collapsed, The Telegraph
notes.

The committee, as cited by The Telegraph, said that there was "an
urgent need to review the role of the Crown Representatives to
ensure that issues with other strategic suppliers can be spotted
and dealt with at an earlier stage".


GKN HOLDINGS: Moody's Cuts Sr. Unsec. Debt Rating to Ba1
--------------------------------------------------------
Moody's Investors Service has downgraded to Ba1/(P)Ba1 from
Baa3/(P)Baa3 the senior unsecured debt and programme ratings of
GKN Holdings plc, the finance, investment and holding company of
British multinational automotive and aerospace components
manufacturer GKN plc (GKN). Concurrently, Moody's has assigned a
Ba1 corporate family rating (CFR) and a probability of default
rating (PDR) of Ba1-PD for GKN Holdings. The ratings have been
placed on review for further downgrade.

"Downgrading GKN reflects our expectations that its leverage will
rise beyond levels commensurate with an investment grade rating
following its recent acquisition by Melrose Industries, due to
GKN's already high standalone leverage, declining operating
profits and Melrose's more aggressive financial policy", says
Matthias Heck, a Vice President -- Senior Credit Officer and
Moody's Lead Analyst for GKN. "The subsequent downgrade review
process will focus on the impact Melrose, the new shareholder,
will have on GKN's financial policy, funding structure, and its
business profile", added Mr. Heck.

RATINGS RATIONALE

On May 10, 2018, Melrose Industries plc (Melrose, unrated)
announced that its ownership of GKN plc has increased to 94% and
is expected to reach 100% in June 2018. Concurrently, Melrose
said it will give further guidance on future plans for GKN in the
first week of September.

Following Melrose's acquisition of GKN, Moody's expects GKN's
financial leverage to exceed the guidance range of 2.5x-3.0x
debt/EBITDA (Moody's adjusted) for a Baa3 rating. The expectation
reflects 2.9x debt/EBITDA (Moody's adjusted) as of December 2017
for GKN on a standalone basis, an ongoing weak operating
performance, evidenced by a decline in operating profits to
GBP181.5 million in 1Q2018, compared to GBP215.1 million in
1Q2017, and Melrose's more aggressive financial policy compared
to the one of the previous GKN management.

The latter reflects Melrose's declared leverage strategy of
approximately 2.5x net debt / EBITDA for the Melrose group, based
on management's adjustments. Including cash on balance and
Moody's adjustments for pension provisions and operating leases,
Moody's assumes that the Melrose leverage strategy implies a
Moody's adjusted gross debt / EBITDA of well above 3.0x. Melrose
also hasn't given any credit rating commitment, in contrast to
the investment grade commitment given by the previous GKN
management. As a result of these factors, Moody's expects that
GKN's credit metrics will no longer be commensurate with the
requirements of a Baa3 rating.

Moody's review process reflects the risk that GKN's ratings could
be further downgraded. The review will focus on the impact of the
new shareholder Melrose on GKN's financial policy, funding
structure, and business profile. Following the announcement of
Melrose's 1H2018 results in the first week of September 2018,
combined with its guidance on further plans for GKN, Moody's
expects to have sufficient information to conclude the review
process.

Moody's understands that Melrose is evaluating all its options in
relation to financial debt within the enlarged Melrose group,
which may include redeeming the existing rated debt at the level
of GKN Holdings.

The review includes the instrument ratings, where a notching on
the CFR is highly likely. Such notching would reflect structural
subordination, which results from guarantees to be provided by
certain subsidiaries of GKN to secure debt raised by the Melrose
parent company. It would also reflect the seniority of non-debt
liabilities, such as pension liabilities and trade payables,
which we consider to rank structurally ahead of unsecured debt at
the holding company level.

The review process will also focus on GKN's future business
profile. In this respect, we understand that Melrose intends to
dispose GKN's Powder Metallurgy business in the medium term but
stick to the Aerospace and Automotive activities, apart from
potential non-core asset disposals within the divisions.

WHAT COULD DRIVE THE RATINGS UP/DOWN

An upgrade is currently unlikely. However, Moody's would consider
an upgrade to Baa3 upon clear visibility that GKN can further
improve its credit strength by maintaining its leverage at a
level of below 3.0x debt/EBITDA through the cycle (2.9x at
December 2017), EBITA margins consistently exceeding 8.0% (6.4%
in 2017), both on a sustainable basis.

Downward rating pressure would arise upon a sustainable
deterioration of earnings and cash flow. Such a development would
be exemplified by negative free cash flow, an increase in
leverage to more than 3.5x debt/EBITDA, EBITA margin falling
below 6.0%. Likewise, larger than expected shareholder
distributions under the new owner and/or a significant weakening
of the business profile, could trigger a negative rating action.
Additional downward pressure on the instrument ratings could
result from the structural subordination due to newly imposed
guarantees and the seniority of other non-debt liabilities.

Headquartered in Redditch, UK, GKN is a global tier one supplier
to the automotive and aerospace industry with operations in more
than 30 countries and 58,200 employees. The group operates
through three main divisions: Driveline (51% of 2017 revenues),
Aerospace (35%), and Powder Metallurgy (11%). The Driveline and
Powder Metallurgy activities primarily address the automotive
industry. Aerospace supplies both the commercial and military
aircraft market. In 2017, GKN recorded revenues of GBP9.7
billion. Including GKN's pro-rata share in joint ventures, the
group's revenues amounted to GBP10.4 billion in the same period.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.


ORCHARD HOMES: Administrators Take Over Operations at Four Sites
----------------------------------------------------------------
Caroline Ramsey at Business-Sale reports that four care homes
have been taken over by administrators following a breakdown in
negotiations between their owner and a property agent.

Orchard Homes, which owns several care homes around the country,
has been forced to call in administrators at BDO to manage
operations at four of its locations: St Georges Hall & Lodge in
Darlington, Haslingden Hall & Lodge in Rossendale, Norton Lees
near Sheffield and Chorley Lodge in Chorley, Business-Sale
relates.

Haslingden Hall & Lodge alone houses 69 elderly residents and
provides specialist dementia care services to many of them,
Business-Sale notes.

According to Business-Sale, Orchard Homes' CEO, Tom Brookes, said
difficult trading conditions meant the firm was unable to agree
new lease terms for the four properties with Holly Blue
Management Company.

Mr. Brookes, as cited by Business-Sale, said: "We have been
negotiating new leases with four landlords for the past 11 months
in order to ensure our leaseholds are sustainable.

"While we have reached agreement with three of the four, we have
failed to agree terms with Holly Blue Management Company."

The day-to-day management of the homes has been taken on by
Lucina Care, a subsidiary of Careport, though BDO are accepting
offers to buy the businesses as going concerns, Business-Sale
discloses.  In the interim they will continue trading as normal
and all employees will be retained, Business-Sale states.



                            *********

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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