/raid1/www/Hosts/bankrupt/TCREUR_Public/180620.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, June 20, 2018, Vol. 19, No. 121


                            Headlines


B E L A R U S

BELARUSBANK: Fitch Affirms 'B' IDR, Outlook Stable


F R A N C E

EUROPCAR: S&P Affirms 'BB-' Issue Credit Rating on Tap Issuance


G E R M A N Y

CTC BONDCO: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable


H U N G A R Y

BUDAPEST BANK: Moody's Assigns Ba1 LT Counterparty Risk Rating


I R E L A N D

CARLYLE GLOBAL 2014-1: Moody's Rates Class F-R Notes (P)B2
CARLYLE GLOBAL 2014-1: Fitch Rates Class F Debt 'B-(EXP)sf'
HALCYON LOAN 2018-1: Fitch Rates Class F Notes 'B-(EXP)sf'
TAURUS CMBS 2007-1: Fitch Cuts Ratings on 3 Note Classes to 'Dsf'


N O R W A Y

NG BIDCO: Fitch Assigns B(EXP) Long-Term IDR, Outlook Stable


R U S S I A

ALFASTRAKHOVANIE: Fitch Affirms 'BB' IFS Rating, Outlook Positive
BANK VORONEZH: Put on Provisional Administration, License Revoked


S E R B I A

SERBIA: S&P Affirms BB/B Sovereign Credit Ratings, Outlook Stable
SERBIA: Fitch Affirms 'BB' Long-Term IDRs, Outlook Stable


T U R K E Y

TURKIYE SISE: Fitch Assigns 'BB+' Long-Term IDR, Outlook Stable


U N I T E D   K I N G D O M

EAT: Shuts Down Cardiff Branch, CVA Among Rescue Options
HOUSE OF FRASER: S&P Places 'CCC+' ICR on CreditWatch Negative
INTERNATIONAL GAME: Moody's Rates EUR500M Sr. Sec. Notes 'Ba2'
NEW LOOK: To Cut Prices Across Stores to Attract Customers
NUMILL: Northern Tooling Acquires Business Out of Liquidation

PILOT TRAINING: Carval Pursues Director Following Collapse
VIVA BLACKPOOL: Financial Woes Spark Loan Debate


                            *********



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B E L A R U S
=============


BELARUSBANK: Fitch Affirms 'B' IDR, Outlook Stable
--------------------------------------------------
Fitch Ratings has affirmed three Belarus-based state-owned
banks - Belarusbank (BBK); Belinvestbank (BIB); and Development
Bank of the Republic of Belarus (DBRB) - at Long-Term Issuer
Default Ratings (IDR)'B' with Stable Outlook.

KEY RATING DRIVERS - IDRS, SUPPORT RATINGS AND SUPPORT RATING
FLOORS (SRF)

The affirmation of the IDRs reflects limited changes to Fitch's
view of the probability of extraordinary support for BBK, BIB and
DBRB from the authorities of the Republic of Belarus (B/Stable).
Equalisation of the ratings of the banks with the respective
Long-Term IDRs of the sovereign is based on Fitch's opinion of
the sovereign's high propensity to support these institutions, if
required.

Fitch's view is based on majority state ownership (State Property
Committee of the Republic of Belarus owns 98.76% in BBK and
97.48% in BIB and Council of Ministers of Belarus owns 95.473% in
DBRB) and supervision by senior state officials through
supervisory board representation. It also factors in the banks',
in particular BBK's, high systemic importance; the banks policy
roles (legally defined for DBRB but also significant at BBK); the
government's subsidiary liability on DBRB's bond obligations; and
a track record of support made available in various ways (equity
injections, buy-out of bad loans, provision of liquidity, etc.)
to these banks to date.

However, the low rating levels continue to capture the
authorities' limited ability to provide support to the banks,
especially if support has to be provided in foreign currencies
(FC), given the sovereign's weak external position and
potentially significant contingent liabilities associated with
the wider public sector.

The three banks' domestic FC deposits (aggregately equaling
USD5.3 billion at end-2017), sizeable foreign non-deposit
liabilities (USD3.9 billion, partly short-term), and limited FC
liquid assets (USD1.1 billion) could also make them difficult to
support for the government, especially in a deep stress scenario,
given the limited sovereign reserve assets (USD7.3 billion).

A possibility of local-currency (LC) support for BBK, BIB and
DBRB is also constrained, in Fitch's view, by the sovereign's
limited financial flexibility although the banks' more
comfortable LC liquidity positions and availability of the
National Bank of Belarus's (NBB) short-term repo funding to close
any unexpected liquidity shortages reduce the need for such
support.

BBK's exceptionally high systemic importance is underpinned by
the bank's, by far largest, market shares in virtually all
business segments of the local financial market. At end-1Q18,
BBK's customer funding accounted for 42% of the banking system's
customer funding and the bank's share of the sector gross loans
was equal to 45%. BBK has also been involved in state-directed
lending activities, partly guaranteed and/or subsidised by the
government, although the amount of these loans has been gradually
reduced, to 41% of gross loans at end-2017 from 46% at end-2016.

BIB has lower systemic importance due to its smaller 6% market
share and its more limited lending to and servicing of the
country's top tier companies.

DBRB has a prominent policy role of a development bank operating
under a special legal mandate since 2011 which, among other
things, sets out the government's subsidiary liability on DBRB's
bond obligations. Initially the bank for distressed assets DBRB
later expanded its scope with long-term project lending and other
state-directed financing and, most recently, state social fund
management.

Capital support was previously made available for all three
banks. BBK and DBRB saw their most recent share issuance in 2015
and BIB converted state-held subordinated debt into equity in
2016. BBK and BIB also further benefitted, to some extent, from
transfers of bad loans, partly to DBRB, in recent years.

DBRB currently expects a core capital injection from the state to
be forthcoming during 2018. Fitch believes the government's plans
to sell a 25% equity stake in BIB to European Bank for
Reconstruction and Development (AAA/Stable) will not materially
alter the authorities' propensity to support the bank as long as
the government holds a controlling stake while some pre-sale
support could not be excluded.

KEY RATING DRIVERS - VIABILITY RATINGS (VRS)

The affirmation of the 'b-' VRs of BBK and BIB reflects Fitch's
continued view of these banks as being closely correlated with
the sovereign and the small and vulnerable Belarusian state-
controlled economy due to their large direct and indirect
exposures to the government and state-owned companies. The VRs
are further constrained by these banks' credit profiles being
still burdened by material impaired loans. These appear to have
stabilised as the economy gradually recovers from a recent
recession but remain moderately provisioned.

The tight linkage with the sovereign makes BBK's and BIB's
financial profiles dependent on the state of government finances
and the ability of the authorities to maintain macroeconomic
stability and support the public sector. Fitch estimates that
exposure to the sovereign bonds and NBB's FC-denominated notes
made up 14% of total assets or 1.2x Fitch Core Capital (FCC) at
BBK and 17% and 1.4x, respectively at BIB at end-2017. Loans to
state-controlled companies totalled 62% of gross loans at BBK and
49% at BIB at the same date.

Fitch believes Belarusian banks' loan quality problems were
better captured by IFRS impaired loans than other common
reference metrics such as non-performing loans (NPLs, overdue by
more than 90 days). Impaired loans stood at a high 38% of gross
loans at BBK (almost unchanged from end-2016) and at somewhat
lower 23% at BIB (down from 30% at end-2016). Loan impairment
reserves were modest at both banks, at 7.2% of gross loans at BBK
and 7.5% at BIB.

Both banks had lower non-performing (NPLs) than last year, at
0.6% of gross loans at BBK and 6.3% at BIB at end-2017, partly
owing to continued financing of distressed or weak borrowers,
enabling them to make regular debt payments without deleveraging,
restructuring of loans (6.6% and 3.1%, respectively); loan write-
offs; and previous bad loan transfers to the state bad assets
management agency and DBRB in exchange for the sovereign,
municipal or DBRB bonds. The government subsidies also helped, to
a degree, service loan interest repayments for a part of loan
portfolios, which are especially material at BBK.

Some additional vulnerability arises, in Fitch's view, from FC
lending (mostly US dollars and euro) reported as non-impaired,
which equalled to a sizeable 20% of gross loans at BBK and 35% at
BIB at end-2017 given that hard-currency revenue derived from
stable export markets remains limited for Belarus-based
companies.

Capitalisation is primarily undermined by the high levels of
under-provisioned problem and potentially high-risk loans, while
the headline FCC ratios have been reasonable at both banks, at
15.7% of Basel I risk-weighted assets at BBK and 13.9% at BIB at
end-2017. The regulatory core Tier 1 ratios were at slightly
lower 13.4% and 9.6%, respectively, as the regulatory minimum
including all the buffers was at 7.125% effective since end-1Q18.

Impaired loans less total impairment reserves equalled to a high
1.8x FCC at BBK and 0.7x at BIB at end-2017. At the same time,
Fitch believes cliff capital erosion risk is mitigated by
regulatory forbearance with banks making only gradual
provisioning and potential repeated bad loan transfers to the bad
assets management agency.

Pre-impairment profits were at a high 6% of average gross loans
for both banks in 2017 but the levels of collectable loan
interest, should loan refinancing be ceased, are uncertain. High
impairment charges have further weakened profitability in recent
years. BBK's return on average equity (ROE) was at 8% in 2017
after 9% in 2016, while BIB was close to breaking even in these
years. Impairment charges would likely remain elevated in the
coming years given still modest reserve coverage.

Liquidity risks mostly result from potentially constrained access
to foreign exchange, high dollarisation of both banks' balance
sheets and high volumes of foreign funding. LC liquidity position
is more comfortable with the banks' systemic status and
government ownership helping deposits' stability.

FC liabilities made up a high 67% of total liabilities at BBK and
62% at BIB at end-2017. Near-term refinancing risk was
considerable, as highly liquid and externally held FC assets
covered a moderate 41% of 12-month foreign funding repayments at
BBK and a lower 30% at BIB at end-1Q18.

Fitch has not assigned a VR to DBRB due to the bank's special
legal status, its prominent policy role as a development
institution, and its even closer association with the state
authorities.

RATING SENSITIVITIES

IDRs, SUPPORT RATINGS AND SUPPORT RATING FLOORS

The IDRs could be upgraded, if Belarus is upgraded, or
downgraded, in case of a sovereign downgrade. The banks' IDRs
could also be downgraded, and hence notched off the sovereign, if
timely support is not provided, when needed, or if the cost of
potential support increases significantly relative to the
sovereign's ability to provide it.

VRs

BBK's and BIB's VRs could be downgraded in case of un-remedied
capital erosion at these banks potentially caused by marked
deterioration in asset quality or a significant tightening of
these banks' FX liquidity.

The potential for positive rating actions on either the IDRs or
VRs is limited in the near term, given weaknesses in the economy
and external finances.

The rating actions are as follows:

Belarusbank

Long-Term Foreign-Currency IDR affirmed at 'B'; Outlook Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Viability Rating affirmed at 'b-'

Support Rating affirmed at '4'

Support Rating Floor affirmed at 'B'

Belinvestbank

Long-Term Foreign-Currency IDR affirmed at 'B'; Outlook Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Viability Rating affirmed at 'b-'

Support Rating affirmed at '4'

Support Rating Floor affirmed at 'B'

Development Bank of the Republic of Belarus

Long-Term Foreign- and Local-Currency IDRs affirmed at 'B';
Outlook Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Support Rating affirmed at '4'

Support Rating Floor affirmed at 'B'


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


EUROPCAR: S&P Affirms 'BB-' Issue Credit Rating on Tap Issuance
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issue credit rating on the
increased fleet bond of car rental company Europcar, following
its announcement of its intention to increase the fleet bond
amount by EUR150 million.

In December 2017, Europcar completed the acquisition of Car
Rentals Parentco S.L.U. (Goldcar). Europcar is currently
progressively integrating Goldcar's fleet financing into its
existing securitization program. It recently upsized its senior
asset revolving facility (SARF) to EUR1.7 billion from EUR1.3
billion. Subsequently, the group needs to increase the credit
enhancement to the SARF and has therefore chosen to seek to tap
the fleet bond. Adding EUR150 million will bring the total bond
size to EUR500 million.

The increase in debt will only marginally decrease our view of
recovery expectations because the increase in debt is supported
by an increase in assets and value. S&P said, "We are therefore
affirming our 'BB-' issue rating on the EUR500 million fleet
bond. The recovery rating on this facility is unchanged at '2',
indicating our expectation of substantial recovery (70%-90%,
rounded estimate 80%) in the event of a payment default."

S&P said, "On June 13, 2018, we revised our outlook on Europcar
to positive, indicating the potential for an upgrade over the
next 12 months if Europcar can smoothly and successfully
integrate its recent acquisitions (Buchbinder and Goldcar), while
at least maintaining its credit metrics at the current levels."

The updated waterfall is as follows:

-- Net enterprise value at default (after 5% administrative
    costs): EUR1,707 million
-- Priority debt claims: EUR857 million
-- Senior secured RCF claims: EUR441 million*
    --Recovery expectations: 90%-100% (rounded estimate: 95%)
-- Senior secured claims: EUR506 million
    --Recovery expectations: 70%-90% (rounded estimate: 80%)
-- Senior notes claims: EUR1,230 million*
    --Recovery expectations: 0%-10% (rounded estimate: 0%)

*All debt amounts include six months of prepetition interest and
S&P assumes 85% of the RCF to be drawn at default.



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G E R M A N Y
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CTC BONDCO: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings said that it assigned its 'B' long-term issuer
credit rating to CTC BondCo GmbH, a holding company of German
industrial ceramics group CeramTec Service GmbH (CeramTec). The
outlook is stable.

S&P said, "At the same time, we assigned our 'B' issue rating to
the senior secured term loan B of EUR1,116.5 million issued by
CTC AcquiCo GmbH. The recovery rating on this term loan is '3',
indicating our expectation of average recovery (50%-70%; rounded
estimate: 50%) in the event of a payment default.

"We assigned our 'CCC+' issue rating to the EUR406 million senior
notes issued by CTC BondCo GmbH. The recovery rating is '6' (0%-
10%; rounded estimate: 0%).

"Finally, we withdrew all our ratings on CeramTec. All the debt
at CeramTec has been redeemed following the completion of the
buyout.

"The ratings are in line with the preliminary ratings we assigned
on Nov. 27, 2017. The final documentation does not depart
materially from what we reviewed in November 2017. The EUR1,116.5
million senior secured term loan was broken down into two
tranches of EUR970 million and $175 million. The issue amount was
in line with the figure proposed. The interest rate achieved on
the unsecured notes was slightly lower than we expected, albeit
in line with our assessment of the group's financial risk profile
and the current rating.

"The ratings on CTC BondCo reflect our view of the group's
relatively aggressive capital structure following the leveraged
buyout by funds advised by private equity group BC Partners in
March 2018.

"We assess the financial risk profile as highly leveraged. Based
on the final capital structure after the buyout, we estimate that
the group's S&P Global Ratings-adjusted debt-to-EBITDA ratio will
be about 7.3x-7.5x for the first year of transition into new
ownership, 2018. However, we estimate that leverage will decline
toward 6.8-7.0x in 2019, which is consistent with the rating.
Additionally, we project that funds from operations (FFO) cash
interest coverage will remain strong at about 3.0x-3.3x in 2018-
2019.

"The financial risk profile is supported by strong cash
generation, positive free operating cash flow (FOCF) resulting
from EBITDA margins above 30%, and low capital intensity. We
understand that the group will not be paying ongoing dividends to
its owners or providing any other cash compensation relating to
shareholder financing.

"Our business risk profile is supported by CeramTec's leading
market position in the niche ceramic hip implant components
market and its presence in diversified industrial markets.
CeramTec has a demonstrated track record of solid profitability,
which is supported by its flexible cost structure and focus on
cost management. CeramTec has consistently delivered stable
reported EBITDA margins of above 30%, which we view as average
compared to industry peers.

"In our opinion, the main factor supporting the business risk
profile is CeramTec's market position in its hip implant
components product group, which accounts for a significant
portion of the group's EBITDA and operating cash flow. We expect
more pricing pressures in the industrial segment, in particular
in the automotive end-market. However, this is mitigated by
CeramTec's proven ability to deliver high-quality components in
large volumes, as one of the few market players globally for
ceramic components.

"Our base case assumes that CeramTec will deliver about 3%-5%
growth in sales in 2018, on the back of stronger volumes in the
medical segment, recovering momentum in the industrial division,
and the acquisition of the Morgan Electro Ceramics business in
2017.

"In the long term, for the health care equipment sub-sector we
expect revenue growth to be supported by favorable demographic
trends--increasing emerging market penetration--and a steady pace
of technological innovation.

"We consider CTC BondCo's pro forma liquidity to be adequate,
with sources of liquidity comfortably exceeding uses by more than
1.2x over the next 12 months. The group has long-term debt
maturities with limited contracted amortization, with the
earliest bullet maturity in 2023. We do not think that CTC BondCo
meets the qualitative measures for a stronger assessment. We
forecast that the group should maintain adequate headroom under
its financial covenant, which is only applicable if the amount
drawn under the revolving credit facility (RCF) exceeds 40%."

S&P estimates that the group's principal liquidity sources during
the next 12 months will comprise:

-- Cash FFO of about EUR115 million; and
-- Undrawn committed credit lines of EUR75 million maturing
    beyond 12 months.

S&P estimates that the group's principal liquidity uses during
the same period will comprise:

-- Working capital outflow of about EUR5 million-EUR6 million;
    and

-- Capital expenditure (capex) of EUR40 million-EUR45 million.

S&P said, "The stable outlook reflects our view that the group
will maintain credit measures commensurate with the 'B' rating
over the coming 12 months, including debt to EBITDA moving toward
7.0x, reflecting gradual deleveraging, and FFO cash interest
coverage continuously above 2.5x. The stable outlook incorporates
our view that the group will maintain stable margins and generate
positive FOCF.

"We could lower the rating if the group's adjusted FFO to cash
interest coverage dropped to less than 2.5x, or if, in our view,
the group is not able to deleverage below 7x or did not generate
positive FOCF. This could occur if the group's operating
performance deteriorated or if it increased leverage through
acquisitions or shareholder remuneration.

"We believe that the likelihood of an upgrade is limited given
the current highly leveraged capital structure. We could raise
the rating if the group sustainably reduced adjusted debt to
EBITDA below 5x and increased adjusted FFO to debt above 12%."


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H U N G A R Y
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BUDAPEST BANK: Moody's Assigns Ba1 LT Counterparty Risk Rating
--------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
to 33 banks in Central and Eastern Europe (CEE): Ceska
Sporitelna, a.s., Komercni banka, a.s., Ceskoslovenska Obchodni
Banka, a.s., MONETA Money Bank, a.s., Raiffeisenbank, a.s., ING
Bank Slaski S.A., Bank BGZ BNP Paribas S.A., Getin Noble Bank
S.A., PKO Bank Hipoteczny S.A., Powszechna Kasa Oszczednosci Bank
Polski S.A., Bank Polska Kasa Opieki S.A., Bank Zachodni WBK
S.A., Bank Millennium S.A., Credit Agricole Bank Polska S.A.,
mBank S.A., Ceskoslovenska obchodna banka (Slovakia), Tatra
banka, a.s., Vseobecna uverova banka, a.s., Slovenska sporitelna,
a.s., Budapest Bank Rt., Erste Bank Hungary Zrt., FHB Mortgage
Bank Co. Plc., Kereskedelmi & Hitel Bank Rt., MKB Bank Zrt., OTP
Bank NyRt, OTP Jelzalogbank Zrt. (OTP Mortgage Bank), Abanka
d.d., Nova Kreditna banka Maribor d.d., Nova Ljubljanska banka
d.d., Alpha Bank Romania S.A., Banca Comerciala Romana S.A., BRD
- Groupe Societe Generale and Raiffeisen Bank SA.

Moody's Counterparty Risk Ratings (CRR) are opinions of the
ability of entities to honor the uncollateralized portion of non-
debt counterparty financial liabilities (CRR liabilities) and
also reflect the expected financial losses in the event such
liabilities are not honored. CRR liabilities typically relate to
transactions with unrelated parties. Examples of CRR liabilities
include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of
liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated
with covered bonds, letters of credit, guarantees, servicer and
trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.

RATINGS RATIONALE

In assigning CRRs to the banks subject to this rating action,
Moody's starts with the banks' adjusted Baseline Credit
Assessment (BCA) and uses the agency's existing advanced Loss-
Given-Failure (LGF) approach that takes into account the level of
subordination to CRR liabilities in the bank's balance sheet and
assumes a nominal volume of such liabilities. In addition, where
applicable, Moody's has incorporated the likelihood of government
support for CRR liabilities.

As a result, of the CRRs assigned to the CEE banks, the CRRs of
29 banks are three notches higher than their respective adjusted
BCAs, the CRRs for two banks (Tatra banka, a.s. and Nova
Ljubljanska banka d.d.) are four notches higher, including one
notch from government support. The CRRs for two banks receive
lower uplifts from their adjusted BCAs due to smaller volume of
liabilities subordinate to CRR liabilities at these banks -- one
notch for MONETA Money Bank, a.s. and two notches for FHB
Mortgage Bank Co. Plc., including one notch from government
support.

Although most if not all of the banks whose CRRs receive three or
four notches of uplift from their adjusted BCAs are likely to
have more than a nominal volume of CRR liabilities at failure,
this has no impact on the ratings because the significant level
of subordination below the CRR liabilities at each of these banks
already provides the maximum amount of uplift allowed under
Moody's rating methodology. For the mortgage subsidiaries of two
banks, the rating agency has assigned CRRs that are closely
aligned with the level of the CRRs of their parent bank because
of the parental guarantees provided for these subsidiaries.

In all cases the CRRs assigned are higher than or equal to the
rated banks' deposit and senior unsecured debt ratings. This
reflects Moody's view that secured counterparties to banks
typically benefit from greater protections under insolvency laws
and bank resolution regimes than do senior unsecured creditors,
and that this benefit is likely to extend to the unsecured
portion of such secured transactions in most bank resolution
regimes. Moody's believes that in many cases regulators will use
their discretion to allow a bank in resolution to continue to
honor its CRR liabilities or to transfer those liabilities to
another party who will honor them, in part because of the greater
complexity of bailing in obligations that fluctuate with market
prices, and also because the regulator will typically seek to
preserve much of the bank's operations as a going concern in
order to maximize the value of the bank in resolution, stabilize
the bank quickly, and avoid contagion within the banking system.
CRR liabilities at these banking groups therefore benefit from
the subordination provided by more junior liabilities, with the
extent of the uplift of the CRR from the adjusted BCA depending
on the amount of subordination.

FACTORS THAT COULD LEAD TO AN UPGRADE

As the banks' CRRs are based on their adjusted BCA and the
results of Moody's advanced LGF analysis, any upward change to
the adjusted BCA and rating uplift under the advanced LGF
analysis would likely also affect these ratings. The CRR of the
two mortgage subsidiary banks would experience upward pressure
because the ratings are closely aligned with the CRR of their
parents.

The banks' adjusted BCAs could be upgraded as a consequence of a
strengthening of their standalone financial fundamentals, and
overall credit profile, as well as higher rating uplift from
affiliate support, where applicable, following a re-assessment of
affiliate support assumptions and/or a strengthening of parent
banks' standalone financial fundamentals.

The banks' CRRs could also experience upward pressure from
movements in the loss-given-failure faced by these liabilities.
Changes in the banks' liability structure which would indicate a
lower loss severity for senior creditors could result in higher
ratings uplift, except for those banks whose CRR's are positioned
three or four notches above their adjusted BCA. The significant
level of subordination below the CRR liabilities at each of these
banks already provides the maximum amount of uplift from Advanced
LGF allowed under Moody's rating methodology.

Further, under Moody's methodology, a bank's CRR will typically
not exceed the sovereign rating by more than two notches, nor
exceed the applicable country bond ceiling. This limit will
constrain the upward potential for five Hungarian and Romanian
banks with a CRR of Baa1 given their respective governments' Baa3
ratings and Hungary's bond ceiling of Baa1.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Likewise, as the banks' CRRs are based on their adjusted BCA and
the results of Moody's advanced LGF analysis, any deterioration
of the adjusted BCA and lower rating uplift under the LGF
analysis would likely also affect these ratings. The CRR of the
two mortgage subsidiary banks would experience downward pressure
if their parents' CRR was lowered and/or the strength of parental
guarantees was to weaken.

Downward pressure on the banks' adjusted BCAs could develop as a
result of a weakening of the banks' and/or their parent banks'
standalone financial fundamentals and/or lower rating uplift from
affiliate support.

The banks' CRRs could also experience downward pressure from
movements in the loss-given-failure faced by these liabilities.
Sustained lower volumes of subordinated, senior debt instruments
or junior deposits could result in fewer notches of rating uplift
under the Advanced LGF analysis.

Furthermore, where applicable, Moody's re-assessment of the
likelihood of systemic support from the respective governments
could reduce rating uplift and lead to downgrades of CRR.

LIST OF AFFECTED RATINGS

Issuer: Abanka d.d.

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned
Baa3

Short-term Counterparty Risk Rating (Local Currency), assigned P-
3

Issuer: Alpha Bank Romania S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Ba2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned NP

Issuer: Banca Comerciala Romana S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Bank BGZ BNP Paribas S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Bank Millennium S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Bank Polska Kasa Opieki S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: Bank Zachodni WBK S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: BRD - Groupe Societe Generale

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Budapest Bank Rt.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Ba1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned NP

Issuer: Ceska Sporitelna, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: Ceskoslovenska obchodna banka (Slovakia)

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned A3

Short-term Counterparty Risk Rating (Local Currency), assigned P-
2

Issuer: Ceskoslovenska Obchodni Banka, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: Credit Agricole Bank Polska S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Erste Bank Hungary Zrt.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: FHB Mortgage Bank Co. Plc.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Ba3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned NP

Issuer: Getin Noble Bank S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Ba2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned NP

Issuer: ING Bank Slaski S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: Kereskedelmi & Hitel Bank Rt.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Komercni Banka, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: mBank S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: MKB Bank Zrt.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned B1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned NP

Issuer: MONETA Money Bank, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Nova Kreditna banka Maribor d.d.

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned
Baa3

Short-term Counterparty Risk Rating (Local Currency), assigned P-
3

Issuer: Nova Ljubljanska banka d.d.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa3, placed on review for downgrade

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-3, placed on review for downgrade

Issuer: OTP Bank NyRt

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: OTP Jelzalogbank Zrt. (OTP Mortgage Bank)

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: PKO Bank Hipoteczny S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Powszechna Kasa Oszczednosci Bank Polski S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A2

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-1

Issuer: Raiffeisenbank, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned A3

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Raiffeisen Bank SA

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
assigned Baa1

Short-term Counterparty Risk Rating (Local and Foreign Currency),
assigned P-2

Issuer: Slovenska sporitelna, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned A1

Short-term Counterparty Risk Rating (Local Currency), assigned P-
1

Issuer: Tatra banka, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned A2

Short-term Counterparty Risk Rating (Local Currency), assigned P-
1

Issuer: Vseobecna uverova banka, a.s.

Assignments:

Long-term Counterparty Risk Rating (Local Currency), assigned A2

Short-term Counterparty Risk Rating (Local Currency), assigned P-
1

PRINCIPAL METHODOLOGY

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


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


CARLYLE GLOBAL 2014-1: Moody's Rates Class F-R Notes (P)B2
----------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Carlyle
Global Market Strategies Euro CLO 2014-1 Designated Activity
Company:

EUR 300,000,000 Class A-R Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 16,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 23,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 6,000,000 Class B-3-R Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 21,000,000 Class C-1-R Senior Secured Deferrable Floating
Rate Notes due 2031, Assigned (P)A2 (sf)

EUR 12,000,000 Class C-2-R Senior Secured Deferrable Floating
Rate Notes due 2031, Assigned (P)A2 (sf)

EUR 24,500,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa2 (sf)

EUR 33,500,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR 14,500,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

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

The Issuer will issue the Class A-R Notes, Class B-1-R Notes,
Class B-2-R Notes, Class B-3-R Notes, the Class C-1-R Notes,
Class C-2-R Notes, the Class D-R Notes, the Class E-R Notes and
the Class F-R Notes in connection with the refinancing of the
Refinancing Class A Senior Secured Floating Rate Notes due 2027,
the Refinancing Class B Senior Secured Floating Rate Notes due
2027, the Refinancing Class C Senior Secured Deferrable Floating
Rate Notes due 2027, previously issued on January 2017, and Class
D Senior Secured Deferrable Floating Rate Notes due 2027, the
Class E Senior Secured Deferrable Floating Rate Notes due 2027
and the Class F Senior Secured Deferrable Floating Rate Notes due
2027 and together with the Subordinated Notes due 2027,
previously issued in March 2014.

The Issuer will use the proceeds from the issuance of the
Refinancing Notes to redeem in full the Original Notes that will
be refinanced. On the Original Issue Date, the Issuer also issued
EUR 37,900,000 of unrated Subordinated Notes, which will remain
outstanding and unrated along with the newly issued EUR
19,600,000 additional Subordinated Notes. Following the issuance
of the Refinancing Notes, the minimum target par amount of the
portfolio will increase from EUR 363,800,000 to EUR 485,000,000.

Carlyle Euro CLO 2014-1 DAC is a managed cash flow CLO. At least
96.0% of the portfolio must consist of senior secured loans and
senior secured bonds and up to 4.0% of the portfolio may consist
of unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to
Carlyle Euro CLO 2014-1 DAC to hold bonds. The portfolio is
expected to be approximately 100% ramped up as of the closing
date and to be comprised predominantly of corporate loans to
obligors domiciled in Western Europe.

CELF Advisors will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's 4.25-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations, and are subject to certain restrictions.

In addition to the nine classes of notes rated by Moody's, the
Issuer will have issued a total of EUR57.5.0M of subordinated
notes, which will not be rated.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

Par amount: EUR 485,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2950

Weighted Average Spread (WAS): 3.35%

Weighted Average Recovery Rate (WARR): 44%

Weighted Average Life (WAL): 8.5 years.

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

Stress Scenarios:

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

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

Ratings Impact in Rating Notches:

Class A-R Senior Secured Floating Rate Notes: 0

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

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

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

Class C-1-R Senior Secured Deferrable Floating Rate Notes: -2

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

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

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

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

Percentage Change in WARF: WARF +30% (to 3835 from 2950)

Ratings Impact in Rating Notches:

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

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

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

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

Class C-1-R Senior Secured Deferrable Floating Rate Notes: -3

Class C-2-R Senior Secured Deferrable Floating Rate Notes: -3

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

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

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


CARLYLE GLOBAL 2014-1: Fitch Rates Class F Debt 'B-(EXP)sf'
-----------------------------------------------------------
Fitch Ratings has assigned Carlyle Global Market Strategies Euro
CLO 2014-1 D.A.C. expected ratings, as follows:

EUR300 million Class A: 'AAA(EXP)sf'; Outlook Stable

EUR16 million Class B-1: 'AA(EXP)sf'; Outlook Stable

EUR23 million Class B-2: 'AA(EXP)sf'; Outlook Stable

EUR6 million Class B-3: 'AA(EXP)sf'; Outlook Stable

EUR21million Class C-1: 'A(EXP)sf'; Outlook Stable

EUR12million Class C-2: 'A(EXP)sf'; Outlook Stable

EUR24.5million Class D: 'BBB(EXP)sf'; Outlook Stable

EUR33.5 million Class E: 'BB(EXP)sf'; Outlook Stable

EUR14.5 million Class F: 'B-(EXP)sf'; Outlook Stable

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Carlyle Global Market Strategies Euro CLO 2014-1 D.A.C. is a
securitisation of mainly senior secured loans and bonds (at least
96%) with a component of senior unsecured, mezzanine, and second-
lien loans. A total expected note issuance of EUR508 million will
be used to redeem the refinanced notes and to purchase additional
collateral. The portfolio will be managed by CELF Advisors LLP.
The CLO envisages a 4.25-year reinvestment period and an 8.5-year
weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
current portfolio is 34.95.

High Recovery Expectations

At least 96% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rating (WARR) of the
current portfolio is 65.6%.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the expected ratings is 20% of the portfolio balance.
The transaction also includes limits on maximum industry exposure
based on Fitch industry definitions. The maximum exposure to the
three largest (Fitch-defined) industries in the portfolio is
covenanted at 40%. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction features a 4.25-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate, and with this increase added to all rating default levels,
would lead to a downgrade of up to two notches for the rated
notes. A 25% reduction in recovery rates would lead to a
downgrade of up to five notches for the rated notes.

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

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other
Nationally Recognised Statistical Rating Organisations and/or
European Securities and Markets Authority-registered rating
agencies. Fitch has relied on the practices of the relevant
groups within Fitch and/or other rating agencies to assess the
asset portfolio information.

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


HALCYON LOAN 2018-1: Fitch Rates Class F Notes 'B-(EXP)sf'
----------------------------------------------------------
Fitch Ratings has assigned Halcyon Loan Advisors European Funding
2018-1 Designated Activity Company expected ratings, as follows:

EUR206.5 million Class A-1: 'AAA(EXP)sf'; Outlook Stable

EUR9.5 million Class A-2: 'AAA(EXP)sf'; Outlook Stable

EUR16.5 million Class B-1: 'AA(EXP)sf'; Outlook Stable

EUR15 million Class B-2: 'AA(EXP)sf'; Outlook Stable

EUR25.25 million Class C: 'A(EXP)sf'; Outlook Stable

EUR22 million Class D: 'BBB-(EXP)sf'; Outlook Stable

EUR20.25 million Class E: 'BB-(EXP)sf'; Outlook Stable

EUR10.5 million Class F: 'B-(EXP)sf'; Outlook Stable

EUR35.9 million subordinated notes: not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Halcyon Loan Advisors European Funding 2018-1 Designated Activity
Company is a cash flow collateralised loan obligation (CLO). Net
proceeds from the issuance of the notes will be used to purchase
a portfolio of EUR350 million of mostly European leveraged loans
and bonds. The portfolio is actively managed by Halcyon Loan
Advisors (UK) LLP. The CLO envisages a four-year reinvestment
period and an 8.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of the obligors in the
'B' range. The Fitch weighted average rating factor (WARF) of the
identified portfolio is 32.6, below the indicative maximum
covenant of 34.

High Recovery Expectations

At least 90% of the portfolio will consist of senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate (WARR) of the
identified portfolio is 63.5%, above the minimum covenant of 61%.

Stress Portfolio

For the analysis, Fitch created a stress portfolio based on the
transaction's portfolio profile tests and collateral quality
tests. These included a top 10 obligor limit at 18%, an 8.5-year
weighted average life, top industry limit at 17.5% with the top
three industries at 40%, and a maximum 'CCC' bucket at 7.5%.

Limited Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 4.3% of the target par.
Fitch modelled both 0% and 10% fixed rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate, and with this increase added to all rating default levels,
would lead to a downgrade of up to two notches for the rated
notes. A 25% reduction in recovery rates would lead to a
downgrade of up to four notches for the rated notes.

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

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other
Nationally Recognised Statistical Rating Organisations and/or
European Securities and Markets Authority-registered rating
agencies. Fitch has relied on the practices of the relevant
groups within Fitch and/or other rating agencies to assess the
asset portfolio information.

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


TAURUS CMBS 2007-1: Fitch Cuts Ratings on 3 Note Classes to 'Dsf'
-----------------------------------------------------------------
Fitch Ratings has downgraded Taurus CMBS (Pan-Europe) 2007-1
Limited's class B, C and D notes and affirmed the class E and F
notes due 2020, as follows:

EUR15.2 million class B (XS0305744608) downgraded to 'Dsf' from
'CCsf'; Recovery Estimate (RE) 100%

EUR23.3 million class C (XS0305745597) downgraded to 'Dsf' from
'CCsf'; RE100%

EUR18.5 million class D (XS0305746215) downgraded to 'Dsf' from
'Csf'; RE revised to 70% from 50%

EUR100,000 class E (XS0309195567) affirmed at 'Dsf'; RE0%

EUR0 million class F (XS0309195997) affirmed at 'Dsf'; RE0%

Taurus CMBS (Pan-Europe) 2007-1 was originally a securitisation
of 13 loans originated by Merrill Lynch. The loans comprised both
tranched and whole facilities secured on collateral located in
Switzerland, France and Germany. Only one loan remains, the
EUR57.1 million Fishman JEC loan.

KEY RATING DRIVERS

Since the last rating action in June 2017, a total of EUR87.5
million has been repaid leading to the full repayment of the
class A1 and A2 notes and the partial repayment of the class B
notes. The Hutley loan was repaid in full in August 2017,
contributing EUR22.9 million to principal proceeds. The remaining
EUR64.6 million was the result of four property sales by the
Fishman JEC borrower and the application of EUR3.2 million of
previously retained funds.

Due to a spike in issuer costs (which cannot be covered by
redirected principal), the issuer is unable to pay its mandatory
expenses and notes interest this quarter. While the missed senior
interest was only around EUR1,000, the risk of ongoing payment
interruption arising from volatile costs and sales has driven
Fitch's downgrade of the notes to 'Dsf'. At the same time
strengthening French real estate investment conditions translate
into better prospects for near- term sales, leading to an upward
revision of the Recovery Estimate for the class D notes.

The Fishman JEC loan entered safeguard proceedings in July 2014.
In September 2015, a safeguard plan was agreed, which set out a
formal debt service and repayment schedule, effectively
restructuring the loan. Technically, the loan became re-
performing, and remains in this state. Resumption in interest
payments initially led to repayment of the (now cancelled)
liquidity facility drawings and also allowed the issuer to clear
accrued and unpaid senior interest.

In the last quarter, however, loan interest was not enough to
cover senior transaction costs, the bulk of which consist of
special servicing fees. The loan appears to be in special
servicing despite being current on its restructured obligations
and despite the borrower being responsible for property sales.
Fitch has no insight on the nature of costs incurred by the
special servicer being passed onto the issuer, either to date or
going forward.

Fishman JEC's property sales have accelerated substantially over
the last 12 months, with 11 assets left collateralising the loan.
Four additional sales have been completed and EUR5.85 million
will reportedly be applied against the notes at the next interest
payment date. The sale of the Encelia (Paris) property in
December 2017 resulted in EUR54.9 million repayment of the
Fishman JEC loan balance and an additional EUR17 million being
withheld in escrow to cover future tax liabilities of the
borrower group (with any unused amounts to be distributed to the
issuer after completion of the process). In light of uncertainty
around the final tax position of the borrower, Fitch gives no
credit to this amount.

RATING SENSITIVITIES

The ratings will be withdrawn within 11 months.

Fitch estimates 'Bsf' recoveries of EUR51.2 million.

DUE DILIGENCE USAGE

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
pool and the transaction. 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 pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
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.


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


NG BIDCO: Fitch Assigns B(EXP) Long-Term IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has assigned NG BidCo AS an expected Long-Term
Issuer Default Rating of 'B(EXP)' with a Stable Outlook and an
expected senior secured rating of 'B+(EXP) with a Recovery Rating
of 'RR3' (59%). NG BidCo AS is a special purpose vehicle company
incorporated in Norway and sole owner of Norsk Gjenvinning Norge
AS (NG).

The rating is supported by a sustainable business model
characterised by a diversified customer base, strong domestic
infrastructure, customer loyalty and neutral-to-positive free
cash flow (FCF) generation, which in the medium term should lead
to deleveraging.

Fitch expects 2018 funds from operations (FFO) adjusted net
leverage to be 7.0x, which is higher than similarly rated peers
but the company's deleveraging path is faster, with 2020 FFO
adjusted net leverage forecast to reach 5.5x. Should the strategy
be implemented successfully Fitch may consider a positive rating
action once a track record is established.

The final ratings are contingent upon successful issuance of the
proposed bond in line with the terms already received, and upon
receipt of final documents conforming to information already
received.

KEY RATING DRIVERS

Sustainable Business Mix: NG holds about 20%-25% of the waste
collection market in Norway, with about 1.8mt of waste processed
each year and about 40,000 customers. It benefits from good
geographic presence in Norway and a diversified range of waste
management services. About 70% of NG's EBITDA is driven by the
total waste management division. These activities involve
collection, sorting and treatment, recycling and operation of
municipal recycling stations. The remaining activities are
represented by metals collection and recycling, project-based
businesses such as industrial services, demolition or emergency
services and household collection.

Focus on Gross Margin: Even though NG is exposed to metal and
commodity prices the company focuses on gross margins and hedging
through the value chain. The business is split into upstream and
downstream activities. The first is focused on collection and
sorting/pre-treatment operations, while the latter focuses on
logistics and raw material sales. NG seeks to match collections
with final sales, both in terms of contract length but also for
processes. The focus then becomes the gross margin and cost
minimisation.

Diversified Customer Base: NG has a diversified customer base
with over 40,000 customers ranging from large companies to
households. In 2017 the top 10 customers accounted for 10%-15% of
total revenue. Churn rates have been about 7% over the last three
years and about 67% of revenue was linked to customer
relationships of five years or more. On the downstream the
customer base consists of international commodity producers with
about 50% of revenue contracted with one-year duration, and
recurring customers accounting for about 85% of revenue.

Challenging Sector Dynamics: Mature waste management markets,
especially collection and sorting sub-sectors, are typically very
fragmented and characterised by intense competition. In Norway,
the correlation of waste volumes and GDP is high, and the
slowdown of the economy in 2015-2016 has tightened price
competition, which has put pressure on margins. In the medium
term, ongoing consolidation should bring some relief.

Shareholders Focus on Deleveraging: In February 2018 Summa
Equity, a fund established in 2016, acquired NG from Altor funds.
Summa's stated financial policy is to use any available cash for
deleveraging as the bond terms do not allow any dividends if
leverage is above 3.0x. Summa has a 4-6 year exit horizon for its
investments; however, an earlier exit may be pursued under
favorable market conditions. Fitch's forecasts assume leverage
will be reduced to 4.9x in 2022 from 7.0x in 2018.

Deleveraging Path: Fitch expects NG to remain FCF-neutral to-
positive throughout the forecast horizon (until 2022), driven by
limited capital requirements and improving EBITDA margins through
cost and operating efficiencies. Deleveraging is taking place at
a faster pace than similar rated peers and if achieved in line
with forecasts, Fitch may consider upgrading the rating.

DERIVATION SUMMARY

NG's credit profile is supported by growth expectations driven by
volumes and efficiencies, which in the medium term should lead to
significant de-leveraging, at a faster pace than most 'B rated'
issuers. Compared with other waste management peers NG is only
active in waste collection, sorting and disposal of waste but not
in the energy from waste segment, which generates more visible
revenue and higher margins. Compared with Veolia Environnement
S.A. (BBB/Positive) NG is a smaller domestic player with a
different scale of operations as reflected in the two rating
category differential.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for NG include:

  - GDP growth and CPI according to Fitch forecast for Norway of
about 2.4% and 2% respectively for 2018

  - Top line CAGR of 2.6 %, slightly above GDP, through 2017-
2022, driven by growing market share, increasing prices due to
consolidation, and increasing sales in value added services

  - Gross margin improvement to 51% by 2022, driven by increasing
prices and sales of value added services

  - Fixed costs inflated by CPI through forecast period

  - Additional positive EBITDA impact from planned efficiency
measures

  - Maintenance capex as per management guidance of about NOK140
million on average

  - No dividends as per restrictions

Key Recovery Rating Assumptions:

Fitch's recovery analysis assumes that NG would be considered a
going concern in bankruptcy and that the company would be
reorganised rather than liquidated.

  - An administrative claim of 10%.

  - A multiple of 5.5x and a 25 % discount to forecasted average
EBITDA, broadly in line with peers in the 'B' category

  - The waterfall results in a 100% recovery corresponding to
'RR1' recovery for the super senior revolving credit facility
(RCF) of NOK540 million, which includes a NOK300 million leasing
facility and a NOK50 million guarantee facility. The waterfall
also indicates a 59% recovery, corresponding to 'RR3' for the
expected NOK2 billion senior secured notes.

RATING SENSITIVITIES

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

  - Sustainable track record of deleveraging in line with
forecasts

  - FFO adjusted gross leverage consistently below 5.0x (2017:
6.7x)

  - FFO fixed charge cover above 2.5x (2017: 1.5x)

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

  - FFO adjusted gross leverage consistently above 7.0x;

  - Negative FCF throughout the economic cycle

  - FFO fixed charge cover below 1.5x

LIQUIDITY

Sufficient Liquidity: NG will maintain a NOK190 million facility
for financing daily working capital needs and activities, it will
also use a leasing facility of NOK300 million to support primary
new collection vehicles for the household division, and will
maintain a flexible capital structure with a bullet maturity
profile. FCF is neutral to positive in Fitch's medium-term
projections. NG has a full committed back-up loan package from
banks to refinance its NOK2.15 billion bond due in July 2019
should the proposed bond issue not proceed as planned.


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R U S S I A
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ALFASTRAKHOVANIE: Fitch Affirms 'BB' IFS Rating, Outlook Positive
-----------------------------------------------------------------
Fitch Ratings has revised AlfaStrakhovanie PLC (Russia)'s
(AlfaStrakhovanie) Outlook to Positive from Stable and affirmed
the Insurer Financial Strength (IFS) Rating at 'BB'.

KEY RATING DRIVERS

The revision of the Outlook reflects the significant improvement
in AlfaStrakhovanie's risk-adjusted capital position in 2017 and
Fitch's expectation that the company will further improve its
capital position in 2018. The affirmation of the rating reflects
the thin capitalisation of AlfaStrakhovanie, which is however
offset by its solid position in the domestic market, its good
profitability, as well as better-than-peers' quality of
investments.

Under Fitch's Prism Factor-Based model AlfaStrakhovanie's capital
score remained below 'Somewhat Weak' in 2017, though
significantly improved on the 2016 score. Strong profit
generation, coupled with an absence of capital withdrawal by the
shareholder, strengthened the company's available capital.
However, the level of target capital also increased due to
significant net premium growth of 21% in the non-life segment in
2017. For the same reasons AlfaStrakhovanie's regulatory solvency
margin increased to 155% at end-2017 from 103% at end-2016.

AlfaStrakhovanie has gradually strengthened its market position
in recent years to being the seventh-largest non-life insurer by
gross premiums in Russia, based on 2017 regulatory data. However,
the company remains a modest player by international standards
with gross written premiums of EUR1.9 billion at the average
exchange rate in 2017.

In 2017, AlfaStrakhovanie reported a strong net profit of RUB5.4
billion, with a return on equity (ROE) of 37% (2016: 29%) and a
three-year average ROE of 34%. A robust non-life underwriting
result, an improved life underwriting result (including the
associated investment income) and a strong non-life investment
result were the main contributors to the much improved
profitability in 2017.

Non-life underwriting profit of RUB3.9billion was notably higher
compared to 2016's RUB2.8 billion. AlfaStrakhovanie's combined
ratio of 93% was underpinned by the robustness of all the
components (2016: 95%). In 2017 AlfaStrakhovanie's life
subsidiary was profitable and contributed an increased share of
group net income. A strong investment result was another
contributor to solid profitability of the company in 2017.

AlfaStrakhovanie's net profit for 3M18, based on statutory
reporting, was RUB2.5 billion (3M17: RUB1 billion). This result
supports Fitch's expectations that the company will continue to
report a strong net profit for the full year.

Fitch assesses AlfaStrakhovanie's investment portfolio to be of
moderate credit quality, albeit better then peers'. The liquidity
position of the company is adequate. AlfaStrakhovanie increased
the share of fixed-income instruments to 47% of total investments
at end-2017 from 41% at end-2016, maintaining its strong credit
quality compared with other domestic insurers. The remaining 53%
is represented by cash held with banks of good credit quality.

RATING SENSITIVITIES

The ratings could be upgraded if AlfaStrakhovanie strengthens its
risk-adjusted capital position to at least a 'Somewhat Weak'
score under Fitch's Prism FBM, and maintains a positive non-life
underwriting result and healthy regulatory solvency margin on a
sustained basis.

The Outlook could be revised back to Stable if AlfaStrakhovanie
does not improve its capitalisation as measured by Prism FBM or
if its profitability weakens substantially.


BANK VORONEZH: Put on Provisional Administration, License Revoked
-----------------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-1480, dated
June 15, 2018, revoked the banking license of Voronezh-based
credit institution Joint-stock company Bank Voronezh, or JSC Bank
Voronezh (Registration No. 654) from June 15, 2018.  According to
the financial statements, as of June 1, 2018, the credit
institution ranked 211th by assets in the Russian banking system.

JSC Bank Voronezh was a settlement centre of several payment
systems; however, the Bank of Russia did not categorise it as an
important credit institution in the payment services market.

JSC Bank Voronezh carried out scheme transactions to replace
assets, aimed at concealing the bank's real financial standing
and formal compliance with prudential regulations; this resulted
in a significant amount of dubious assets on the bank's balance
sheet.  This June, JSC Bank Voronezh conducted operations with
property aimed at siphoning assets to the detriment of creditors'
and depositors' interests.

The supervisory action against the bank's activities established
"shadow" currency exchange operations which were not recorded in
its accounting records and statements submitted to the Bank of
Russia.

The Bank of Russia repeatedly applied supervisory measures
against JSC Bank Voronezh, which included restrictions to carry
out certain transactions, including household deposit taking.

The management and owners of the credit institution failed to
take effective measures to normalise its activities.  Moreover,
their actions were identified as bearing signs of a criminal
offence, of which the Bank of Russia will submit information to
law enforcement agencies.

Under the circumstances, the Bank of Russia took the decision to
withdraw JSC Bank Voronezh from the banking services market.

The Bank of Russia takes this extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application of measures envisaged by
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)", considering a real threat to the creditors'
and depositors' interests.

Following banking license revocation, in accordance with Bank of
Russia Order No. OD-1480, dated  June 15, 2018, the credit
institution's professional securities market participant licence
was cancelled.

The Bank of Russia, by virtue of its Order No. OD-1481, dated
June 15, 2018, has appointed a provisional administration to JSC
Bank Voronezh 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 were suspended.

JSC Bank Voronezh is a member of the deposit insurance system.
The revocation of the banking licence 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.


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S E R B I A
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SERBIA: S&P Affirms BB/B Sovereign Credit Ratings, Outlook Stable
-----------------------------------------------------------------
On June 15, 2018, S&P Global Ratings affirmed its 'BB/B' long-
and short-term foreign and local currency sovereign credit
ratings on Serbia. The outlook is stable.

OUTLOOK

The stable outlook balances the potential for further improvement
in Serbia's external position and continued reduction of the
public debt burden against contingent risks from the country's
large public sector and potential volatility related to monetary
policy normalization in advanced markets.

S&P might take a positive rating action if:

-- Alongside strong exports growth, Serbia's resilience to
    external shock increased, signaled, for example, by lower
    external leverage or by a continuing drop in risks of sudden
    shifts in foreign direct investment (FDI) or portfolio
    investments, potentially as a result of continued reform
    momentum; or

-- Serbia built a strong track record of keeping inflation in
    line with that of trading partners and the central bank's
    target.

Conversely, S&P could take a negative rating action if, contrary
to its expectations, fiscal performance deteriorated, due, for
example, to stalled restructuring of public enterprises putting
Serbia's public debt on the upward path; or if balance of
payments pressure re-emerged.

RATIONALE

The sovereign ratings on Serbia are constrained by its relatively
low wealth levels; its large net external liability position,
resulting from persistent current account deficits; still
relatively high general government debt burden, a major part of
which is denominated in foreign currency; and limited monetary
policy flexibility, owing to the banking sector's euroization,
which, although decreasing, is still substantial. At the same
time, the ratings are supported by the favorable outlook for FDI
and the government's improved budgetary position, which is
buttressed by a demonstrated commitment to fiscal discipline.


Institutional and Economic Profile: Despite low wealth levels and
weak institutions, we see potential for further reform.

-- Serbia's investments, consumption, and exports will likely
    support economic growth of about 3% in 2018-2019.

-- That said, wealth levels remain low, with structural
    bottlenecks constraining faster income convergence.

-- The EU accession process as well as a prospective new
    arrangement with the International Monetary Fund (IMF) could
    help advance reforms in Serbia, while locking in
    macroeconomic stability.

After almost a decade of lackluster performance, the Serbian
economy's growth prospects look positive in the medium term. For
2018-2019, we expect real GDP growth will average 3% or higher.
S&P said, "We consider that economic performance will be
supported by healthy investment growth (highlighted by strong
investment activity in the last few years and first-quarter
2018), driven by the pick-up of investment lending and improving
investor confidence in light of macroeconomic stabilization. We
expect private consumption will also boost growth as employment
levels increase, wage growth accelerates, lending to households
recovers, and the inflow of worker remittances benefits from a
strong cyclical economic upturn in Europe. This is despite the
temporary slowdown of Serbian growth in 2017 to just 1.9%, due to
the one-off impact from adverse weather conditions, which hurt
the agriculture, construction, and energy sectors."

That said, Serbia's longer-term growth prospects are challenging
and remain hampered by: unfavorable demographic trends, with the
population shrinking by 0.5% per year--one of the fastest paces
in the Western Balkans; relatively low labor participation; a
large and only modestly reformed public sector; and material
infrastructure gaps. Moreover, the effectiveness of Serbia's
public institutions remains constrained by a weak judiciary,
relatively high levels of perceived corruption, and low public
governance standards (especially if compared with the EU
average).

S&P said, "In this context, policy action -- namely toward
educational and pension systems, corporate governance in state-
owned enterprises (SOEs ), public administration, and the court
system -- if taken, could remove existing hurdles to economic
development, leading to GDP growth rates well above our base-case
forecast. From that perspective, the new policy-coordination
arrangement with the IMF that the government is currently
discussing could help to spur growth of Serbia's private sector
and ensure sustainable income convergence. We believe that the
presently strong global growth momentum and favorable credit
conditions could present Serbia with a window of opportunity to
address these long-standing issues. Absent growth acceleration,
Serbia's U.S. dollar GDP per capita (our preferred income
measure) will fluctuate around its pre-2008 crisis levels of a
modest $6,700-$6,800 -- well below than that of the country's EU
neighbors.

"At the same time, we note the ongoing centralization of power,
which gathered pace ahead of the presidential elections in 2017,
accompanied by the increasing control of and restrictive actions
toward independent mass media. The ruling party -- the Serbian
Progressive Party -- currently controls the parliament, the
presidency, and the majority of local councils (including in the
capital city of Belgrade), and benefits from relatively high
public support. Although the resulting political stability has
supported commitment to fiscal consolidation and could amplify
reform efforts, weaker checks and balances between key
institutions might undermine policy predictability, resulting in
weaker investor confidence going forward.

"We anticipate, however, that Serbia's EU aspirations will likely
constrain further power consolidation, even though the accession
process might be lengthy and complex. Serbia was granted EU
candidate status in 2012, and since then has opened 12 out of 35
chapters of the Acquis Communautaire, with two already
temporarily closed. Meeting the conditions of some chapters will
likely require difficult political decisions. On top of the
typical areas of concern for EU candidates, such as weaknesses
with respect to the rule of law, Serbia will face some unique
issues regarding its relations with Kosovo and trade agreements
with Russia, which might trigger a public referendum and/or an
early parliamentary election.

Flexibility and Performance Profile: Macroeconomic policy
flexibility remains constrained, even with impressive fiscal
effort and lower external imbalances.

-- Serbia's external position has improved on the back of
    expanding export capacity, but vulnerabilities remain.

-- Public finances are now at a more sustainable level, but S&P
    considers that further public debt reduction might require
    deeper reforms.

-- S&P believes Serbia's national bank will likely maintain
    credible inflation control, but high euroization will
    continue to limit monetary policy effectiveness.

Serbia remains exposed to balance of payments risks, given its
large net external liability position and persistent current
account deficits. Yet, S&P notes a positive trend, with external
imbalances shrinking and the composition of current account
financing improving. Strong FDI-induced merchandise and service
exports has been the key driver behind this: between 2010 and
2017, in U.S. dollar terms, total exports almost doubled to about
$22 billion (52% of 2017 GDP) -- one of the strongest
performances in the region.

S&P said, "Buoyant exports should mitigate pressures coming from
expanding domestic demand, wide primary income account deficits,
and higher global energy prices, in our view. Serbia's cost
competitiveness is high, with the average wage at just one-
quarter of the EU average. With a deepening integration into the
European automotive industry's supply chains, Serbia's exports-
oriented manufacturing sector will likely continue to enjoy high
levels of FDIs. Additionally, we note solid performance of the
country's information and communication technology (ICT) sector,
which could also bolster Serbia's export capacity. The value of
ICT exports has been expanding annually by over 20% on average in
recent years and exceeded a sizable $1 billion in 2017 (some 2.4%
of GDP).

For this reason, and despite wider current account deficits
reported in 2017 (due to one-off weather-related factors and
investment-related imports), we project Serbia will solidify its
progress in reducing external imbalances, with current account
deficits stabilizing at slightly above 4% of GDP in coming years.
This is in stark contrast to a much weaker 8.7% of GDP reported
on average in 2011-2014.

"In line with the track record observed in 2015-2017, we expect
that FDI net inflows will fully finance the current account
deficits throughout the next 12 months. Under this assumption,
external debt net of public and financial sector external assets
(narrow net external debt) will decline gradually and stabilize
at a moderate 52% of current account receipts (CARs) in 2018
compared with above 80% in 2012. With external debt now dominated
by the public sector following years of private-sector
deleveraging, we expect that gross external financing needs
(annual payments to nonresidents) should remain roughly equal to
CARs plus usable reserves.

"At the same time, Serbia's net external liability position is
quite large, owing to the accumulated stock of inward FDI (over
130% of CARs). Although FDI generally presents a much smaller
risk than external debt, it still exposes the economy to
potential swings in investor confidence, resulting in balance of
payments pressure."

Serbia's fiscal outlook is now stronger than it was a few years
ago, on the back of multiyear decisive consolidation efforts.
These were framed by the precautionary stand-by agreement with
the IMF, which was successfully completed in February 2018. The
government reduced structural fiscal imbalances, and reversed the
upward trajectory of public debt (in 2017 alone debt dropped by
some 10% of GDP). The benign growth outlook as well as recovery
in consumption-related tax receipts should support budget
revenues and, provided costs are controlled, allow the general
government deficit to average around 1% of GDP this year and
next, compared with 6.6% of GDP in 2014.

That said, public debt net of liquid assets remains relatively
high (56% of GDP at end-2017), especially considering Serbia's
income levels. Reported debt includes government guarantees to
SOEs (amounting to about 4.7% of GDP), some of which are self-
supporting. Serbia's policy challenge is to rebuild fiscal
buffers by reducing debt further, while improving the quality of
public spending to support growth.

S&P said, "We consider this task a difficult undertaking for
numerous reasons. Firstly, given a widening infrastructure gap
and chronically anemic capital spending, pressures on the public
investment budget will build and require control of recurrent
costs through sensitive reforms of the pension system,
healthcare, and public sector pay. Secondly, the relatively
inefficient public sector might continue to pose moderate
contingent fiscal risks. Large SOEs--namely Elektroprivreda
Srbije, Srbijagas, and enterprises in the mining and
petrochemical industries--still suffer from weak corporate
governance, persistent energy arrears, and redundant employment.
Progress in restructuring these SOEs has been relatively modest,
with the privatization of Serbia's copper smelter (RTB Bor)
planned for 2018 testing the government's commitment to reforming
the sector. Thirdly, with almost 75% of general government debt
denominated in foreign currency, principally euros and U.S.
dollars, Serbia's public debt is sensitive to exchange rate
shocks. Although the recent appreciation of the Serbian dinar has
been beneficial for the debt metrics, monetary normalization in
the eurozone will most likely put pressure on the currency and
inflate government debt as well as its interest bill.

"We find Serbia's monetary flexibility limited in several
respects. Foreign exchange movements have a pronounced impact on
the government's debt trajectory, on inflation pass-through, and
on banks' asset quality. Such vulnerabilities have prompted the
central bank, National Bank of Serbia (NBS), to intervene
occasionally in the foreign exchange market to smooth the short-
term exchange rate volatility. Pronounced appreciation pressures
led the NBS to intervene by purchasing some EUR725 million (on a
net basis) in 2017."

Furthermore, shallow local currency capital markets and the
banking system's high euroization continue to constrain the NBS'
ability to influence domestic economic conditions, given that
nearly 60% of deposits and loans are denominated in foreign
currency. At the same time, banks' profitability is recovering,
and bank lending started to accelerate throughout 2017 and early
2018. This has been supported by sustained progress in the
reduction of nonperforming loans (NPLs). Their nominal stock has
halved, dropping to below 9% of total loans in April 2018 from
more than 23% in 2015, reflecting the government's and the NBS'
concentrated regulatory efforts and accelerated NPL write-offs.
Despite notable improvements in 2017, the asset quality of state-
owned banks' remains slightly weaker. At the same time, based on
the NBS' data, S&P considers that the banking sector, otherwise
predominantly foreign-owned, remains adequately capitalized and
has sufficient liquidity.

The NBS has proved its operational independence and earned
credibility over the past few years. Inflation declined to
historical lows in 2014-2016, despite high exchange rate pass-
through, with inflation expectations now well anchored. Rising
food and energy prices will likely spur headline inflation
through 2021, after a temporary slowdown in 2018, yet we expect
it to stay within the NBS' target of 3Ò1.5%.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  RATINGS LIST
  Ratings Affirmed

  Serbia
   Sovereign Credit Rating                BB/Stable/B
   Transfer & Convertibility Assessment   BB+
  Serbia
   Senior Unsecured                       BB


SERBIA: Fitch Affirms 'BB' Long-Term IDRs, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Serbia's Long-Term Foreign- and Local-
Currency Issuer Default Ratings (IDR) at 'BB'. The Outlook is
Stable.

KEY RATING DRIVERS

Serbia's ratings are supported by strong governance, human
development and ease of doing business indicators, as well as a
strengthened economic policy framework, which has increased
confidence that macroeconomic fundamentals have improved. The
ratings are constrained by a track record of low growth,
reflecting various structural bottlenecks, and high public and
net external debt ratios to GDP.

Headline fiscal indicators continue to improve. A large and
stable tax base, combined with contained government expenditure,
will support modest fiscal surpluses in 2018-2019 averaging 0.3%
of GDP. A decline in the surplus from 1.2% of GDP in 2017
reflects Serbia's fiscal strategy to increase living standards
and stimulate economic growth by maintaining a low tax rate
environment (which is contributing to a declining revenue-to-GDP
ratio), while increasing government spending in priority areas.
Measures for 2018 include an increase in the non-taxable
threshold on personal earnings, increases in minimum salaries,
public sector wages, pensions, as well as higher capital
expenditure.

The general government debt-to-GDP ratio, at 62.5%, remains
significantly above the 'BB' median of 49.0%. Progress in fiscal
consolidation, leading to primary fiscal surpluses, has helped
put debt on a firm downward trajectory, but fiscal risks remain.
The sovereign's refinancing needs are high, with debt maturities
estimated by Fitch at 9.4% of GDP in 2018 and 7.3% of GDP in
2019, above the forecast 'BB' median of 5.4% and 6.6%,
respectively. Serbia's debt structure is also more exposed to FX
risk than its peers; with the share of FX denominated debt to
total debt at 75%, compared with a 'BB' median of 53.5%.
Contingent liabilities from state-owned enterprises (4.8% of GDP)
are incorporated in the general government debt number and
regularly crystallise onto the budget.

Serbia is experiencing a cyclical growth recovery, boosted by
stronger domestic demand and a favourable external environment.
After real GDP growth of 1.9% in 2017, Serbia is projected to
grow by 3.5% in 2018 and 3.3% in 2019. Five-year average growth
to 2017, at 1.2%, is well below the peer median of 3.4%,
reflecting strong fiscal consolidation, adverse weather-related
shocks and structural weaknesses in economy. Investment,
household consumption and exports, supported by positive
developments in the labour market, are expected to be the main
drivers of growth for 2018-2019.

Net external debt (21.9% of GDP in 2017) is above the 'BB' median
(13.1% of GDP). The majority of external debt is owed by the
sovereign, and by the non-bank private sector, where risks are
mitigated by a large proportion of intercompany lending (around
75% of total non-bank private sector liabilities). Fitch expects
a stabilisation in the net external debt ratio in 2018-2019. In
both years, net inflows of FDI are projected to cover current
account deficits forecast at 6.3% of GDP and 5.2% of GDP,
respectively.

An improved macroeconomic environment and portfolio inflows have
strengthened the RSD/EUR exchange rate. The pace of appreciation
has slowed in 2018 (0.2% year-to-date vs 4.2% in 2017), but net
FX purchases by the National Bank of Serbia (NBS) up to May 2018
reached EUR825 million, compared with a total of EUR725 million
in 2017. The stronger dinar has helped dampen inflation. Fitch
forecasts inflation in 2018 to stay within the lower band of the
NBS's inflation target (3.0% +/- 1.5pp), also reflecting fading
base effects from higher food prices in 2017. Inflation
expectations remain well anchored at close to 3.0%, allowing the
NBS to cut its key policy rate (3% as of mid-June 2018) twice
this year.

Banking sector asset quality and capitalisation are improving.
Non-performing loans were 8.8% in April 2018, compared with a
peak of 23.2% in May 2015. The average capital adequacy ratio was
22.6% end-2017, above the median 15.3% ratio of 'BB' peers.
Credit growth has picked up driven by housing and retail loans.
While headline corporate lending performance is weighed down by
NPL resolution, underlying growth has also gained pace. A planned
restructuring of state-owned banks (SOBs), which account for
14.6% of total banking sector assets (12.2% of GDP), should
further strengthen the banking sector. However, progress in
addressing weaknesses in SOBs has been slow. Deposit
dollarisation is high, at 68.0% at end-2017, but falling, from
69.3% at end-2016.

There is broad political consensus towards further EU
integration. However, progress towards the 2025 target for
membership remains constrained by delays in the implementation of
institutional reform, most notably in the area of anti-
corruption, and poor relations with regional neighbours. The
government has expressed commitment towards anchoring gains
achieved under the previous IMF SBA. While not yet finalised, a
new non-financing arrangement with the IMF (through a Policy
Coordination Instrument) will serve an important anchor for
maintaining fiscal and macro-economic stability.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Serbia a score equivalent to a
rating of 'BB+' on the Long-Term 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:

  - Macroeconomics: -1 notch, to reflect relatively weak medium-
term growth potential due to structural rigidities (including
high unemployment, large informal economy and adverse
demographics and the large and inefficient public sector).

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 its
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES

The main factors that could, individually or collectively, could
lead to positive rating action are:

  - An improvement in medium-term growth prospects without
creating macro-economic imbalances.

  - Sustained fiscal consolidation resulting in a further
reduction in the government debt-to-GDP ratio.

  - Sustained reduction in external vulnerabilities.

The main factors that could, individually or collectively, could
lead to negative rating action are:

  - A reversal of fiscal consolidation, or materialisation of
large contingent liabilities on the government's balance sheet,
that put general government debt-to-GDP ratio on an upward path.

  - A recurrence of exchange rate pressures leading to a fall in
reserves and a sharp rise in debt levels and interest burden.

  - Worsening of external imbalances, for example, from
significant widening of the current account deficit leading to
increased external liabilities.

KEY ASSUMPTIONS

  - Fitch assumes that EU accession talks will remain an
important policy anchor.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR affirmed at 'BB'; Outlook Stable

Long-Term Local-Currency IDR affirmed at 'BB'; Outlook Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Short-Term Local-Currency IDR affirmed at 'B'

Country Ceiling affirmed at 'BB+'

Issue ratings on long-term senior unsecured debt affirmed at 'BB'

Issue ratings on short-term senior unsecured debt affirmed at 'B'



===========
T U R K E Y
===========


TURKIYE SISE: Fitch Assigns 'BB+' Long-Term IDR, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned Turkish building materials and
chemicals company Turkiye Sise ve Cam Fabrikalari A.S. (Sisecam)
a first-time Long-Term Issuer Default Rating (IDR) of 'BB+' with
Stable Outlook. Fitch has also assigned Sisecam's existing USD500
million notes a senior unsecured 'BB+'.

The ratings reflect the solid business profile of Sisecam that
benefits from strong market shares in the glass industry in its
domestic market and in certain export markets in Eastern Europe.
The ratings further reflect the company's broad end-market
diversification, with an exposure to various markets with
different cycles. The financial profile of Sisecam is sound,
characterised by high profitability, solid funds from operations
(FFO) and conservative leverage metrics. Although Fitch expects
current expansion plans to stress free cash flow (FCF)
generation, FFO gross leverage should remain commensurate with
the 'BBB' rating median.

On the other hand, limited geographic diversification, a
concentrated manufacturing base and the company's vulnerability
to energy price volatility constrain the ratings.

The senior unsecured rating and bond rating are in line with
Sisecam's IDR as they constitute direct, unconditional and
unsubordinated obligations of the company. The bonds rank pari
passu with other senior unsecured debt instruments.. Fitch sees
no subordination issue for Sisecam's bond, which is guaranteed by
three of the main subsidiaries. Debt at operating subsidiaries
remains below 2x consolidated group EBITDA.

KEY RATING DRIVERS

Strong End-Market Diversification: Sisecam supplies products to a
variety of end-markets that are affected by different macro
drivers and have different cyclicality. This product
diversification reduces volatility in both revenue and
profitability margins. Sisecam has exposure to both cyclical
(autos/construction/white goods) and defensive sectors (food &
beverage/consumer goods). Thus, the diversification allows the
group to reduce earnings volatility and to optimise capital
allocation by moving cash from cash-generative businesses into
other divisions where capex needs are higher.

Solid Financial Profile: Fitch views Sisecam's financial profile
as solid, with high EBITDA margins and sound FFO generation,
driven by a vertically integrated business profile. Historical
FFO-adjusted gross leverage of around 3x and FFO-adjusted net
leverage of below 2x are in line with investment-grade
expectations under its Building Materials Ratings Navigator.
Fitch expects that Sisecam will continue operating with similar
leverage metrics in the medium term, despite its more
conservative profitability assumptions and expectation of a
continued expansion programme.

Negative Free Cash Flow Expectations: Fitch projects that
Sisecam's FCF margins will remain negative over the medium-term,
driven by higher capex needs and dividend payments in line with
historical averages. Fitch believes that deleveraging will slow
in the next four years, although leverage metrics will remain
commensurate with an investment-grade median. Fitch also assumes
that Sisecam's maintenance capex will remain around TRY500
million, and believes that the company's substantial expansionary
capex plans could be partially postponed under a severe economic
downturn.

Limited Geographic Diversification: Sisecam's
investment/expansion plans for Eastern Europe and Russia are a
step towards reducing the company's exposure to the Turkish
economy, which is a rating constraint. Sisecam has become a more
geographically diverse manufacturer in the past 10 years, with
revenue from the domestic market declining to 40% in 2017 from
47% in 2012, backed by solid market share gains in Russia and
expansion into new emerging markets. However, Sisecam's emerging-
market presence is still high compared with peers such as
Compagnie de Saint Gobain.

Sensitivity to Energy Costs: Similar to most Turkish corporates,
Sisecam's profitability could be impacted by rising energy prices
in the country. Turkish energy prices can be prone to significant
volatility, driven by FX rates and the country's constant need
for energy/gas purchases. Historically Sisecam has generally been
able to pass through the price increases to end-customers;
however, in a severe downturn scenario, the ability to increase
prices could be limited and profitability could be impacted.

Profit Margins Lower: Fitch forecasts EBIT margins around 12.5%
in the medium term versus 14.3% in 2017, driven by its
expectations that energy prices will stress flat glass and glass
packaging profitability. However, Fitch forecasts FFO margins to
be above 16% in the medium term, despite lower profitability and
increased financial costs, which is commensurate with a 'BBB'
rating median.

FX Exposure: Although FX exposure on Sisecam's balance sheet is
limited the company's income statement has moderate exposure to
FX movements. Fitch believes that this risk is mitigated by
increasing export revenue, international sales, hard currency
cash balances and derivatives. Nevertheless, Fitch forecasts that
Sisecam's income statement and leverage metrics could be modestly
impacted by the current weaker TRY rates. However, the leverage
metrics should remain commensurate with current ratings.

Standalone Assessment: In applying its Parent and Subsidiary
Rating methodology Fitch concluded that the legal, operational
and strategic ties between Sisecam and owner Turkiye Is Bankasi
A.S. (BB+/RWN) are weak enough to rate the former on a standalone
basis. This reflects Fitch's general approach towards Turkish
banks and their industrial subsidiaries.

DERIVATION SUMMARY

Sisecam's financial profile is solid. Its conservative FFO gross
leverage metric of around 3x is commensurate with a 'BBB' rating
median, and is in line with investment-grade peers such as
Compagnie de Saint Gobain (BBB/Stable). This is despite the
recent expansion pipeline stressing FCF metrics, and challenging
market conditions in some sub-sectors.

Sisecam's conservative leverage profile is driven by strong
profitability and FFO generation, which is supported by the
company's market-leading positions within Turkey, Russia and
Eastern Europe and low cost base compared with peers. Sisecam
remains the market leader in all of its sub-segments in Turkey,
dominating more than 60% of the domestic market, but remains a
smaller company globally compared with investment-grade peers.

Compared with Saint Gobain and Owens Corning (BBB-/Positive),
Sisecam's manufacturing base remains in low-cost, emerging
markets. Although this drives superior profitability compared
with its peers, limited geographic diversification remains a key
rating constraint. Fitch views Sisecam's end-market
diversification as healthy, having exposure to a number of
industries such as autos, construction, white goods, food&
beverage, and chemicals. However, compared with some of its
peers, exposure to less cyclical businesses such as pharma,
healthcare and infrastructure is more limited, but this is not
considered a rating constraint.

Sisecam's geographic diversification is limited compared with
Turkish white goods manufacturer and exporter, Arcelik A.S.
(BB+/Stable). However, the company's wider end-market exposure
balances out the differences in business profile and reduces
volatility in Sisecam's financial profile compared with its local
peer.

No country-ceiling, parent/subsidiary or operating environment
aspects has an impact on the rating.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer

  - Low single-digit organic growth driven by Fitch's
conservative forecasts of Turkish construction market demand

  - Marginally decreasing EBITDA margins driven by increasing
energy prices

  - Higher capex driven by investment plans

  - Dividend pay-out ratio at 50% of net income

  - No sizeable M&A, nor divestments in investment portfolio

  - Increasing interest costs over the medium term


RATING SENSITIVITIES

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

  - Improvement in business profile, including a more balanced
geographic exposure, combined with positive FCF generation.

  - FFO net leverage below 1.5x (2017:0.7x) on a sustained basis

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

  - FFO margin below 14% (2017: 23%)

  - FFO net leverage above 2.5x on a sustained basis

  - Significant reduction in ownership in consolidated
subsidiaries

LIQUIDITY

ST Maturities Covered: Similar to most Turkish blue chips
Sisecam's liquidity score is slightly above 1x. Although Sisecam
uses short-term bank financing for short-term working capital
needs, Fitch-adjusted cash-on-balance sheet (TRY3.9 billion)
comfortably covers short-term debt repayments of TRY1.9 billion
and its negative FCF expectations of TRY1.6 billion for 2018.

Sisecam's liquidity profile is further supported by available
undrawn credit facilities from Turkish banks totalling TRY900
million but as per Turkish practice these lines are not committed
and not incorporated in Fitch's liquidity analysis.

FULL LIST OF RATING ACTIONS

Turkiye Sise ve Cam Fabrikalari A.S.

  - Long-Term IDR: 'BB+'; Stable Outlook

  - Senior unsecured rating: 'BB+'

  - USD500 million bond maturing 2020: 'BB+'


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


EAT: Shuts Down Cardiff Branch, CVA Among Rescue Options
--------------------------------------------------------
Joshua Knapman at Wales Online reports that sandwich shop chain
EAT. has shut down its Cardiff branch and closed its doors for
good.

EAT. has confirmed that its Welsh capital branch is among "a
small number" closing around the country, Wales Online relates.

It comes as part of a small restructuring to the business, which
is seeing the brand focus on London and key transport hubs, Wales
Online states.

The store in Cardiff, which was located in the food quarter of
St David's Shopping Centre officially closed down on Thursday,
June 14, Wales Online discloses.

EAT. has drafted in professional services firm KPMG to help with
the restructuring, according to the Birmingham Mail, with a
Company Voluntary Arrangement (CVA) reported to be among the
options, Wales Online relays.

EAT. is owned by the private equity firm Lyceum Capital and the
brand has seen its store estate increase to more than 100 since
it was founded more than 22 years ago, Wales Online notes.


HOUSE OF FRASER: S&P Places 'CCC+' ICR on CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings placed its 'CCC+' long-term issuer credit
rating on U.K. department store retailer House of Fraser (UK &
Ireland) Ltd. on CreditWatch with negative implications.

S&P said, "At the same time, we placed our 'CCC+' long-term issue
rating on the group's GBP175 million senior secured floating-rate
notes (of which GBP164.9 million remain outstanding) on
CreditWatch negative. We revised down our recovery rating on
these notes to '4' from '3', reflecting our expectation of
average recovery prospects (30%-50%; rounded estimate: 35%) in
the event of default."

The CreditWatch placement follows the launch of House of Fraser's
Company Voluntary Arrangement (CVA), and the release of
preliminary results for the group's first quarter ending April
28, 2018. According to management, the company is very likely to
enter into administration or liquidation if the CVA is not
approved. The proposed restructuring covers nearly half the
company's existing store estate and the decline in operating
performance during the first quarter of 2018 is more severe than
we previously thought. S&P estimates that reported EBITDA for the
past 12 months has declined to about GBP20 million, implying that
reported net leverage has climbed to 20x.

A CVA is a form of insolvency proceeding in the U.K. House of
Fraser is undertaking a CVA to modify the terms or cancel
operating leases through which it rents its existing stores.
House of Fraser will need the approval of 75% its unsecured
creditors by value to successfully implement the CVA. If the CVA
is not successful, House of Fraser is very likely to enter into
administration or liquidation.

Conditional upon approval of the CVA is Chinese retailer
C.banner's purchase of a majority stake in House of Fraser.
C.banner will acquire existing shares and subscribe for new
shares, thus providing new capital to the group.

House of Fraser's high leverage, and the low visibility over its
sustainable level of future earnings, calls into question the
group's ability to orderly refinance its existing capital
structure if lenders do not agree to extend the maturity of its
bank facilities, which currently mature in July 2019. If
unsuccessful, this could leave House of Fraser exposed to a near-
term liquidity crisis or lead it to refinance its capital
structure on distressed terms.

S&P said, "We understand that House of Fraser remains current on
its payment obligations and has sufficient funds to meet its
near-term liquidity needs, including approximately GBP3 million
of note interest payable on July 15, 2018.

"We still consider House of Fraser's liquidity position to be
under pressure. We understand that the group has retained access
to the RCF for the duration of the sale process, and that current
negotiations with lenders will, if successful, include more
permanent covenant relief. House of Fraser has received liquidity
support from its ultimate parent in the form of GBP25 million of
subordinated shareholder funding and from the group's lenders
through a short-term GBP10 million overdraft facility.
However, if House of Fraser fails to reach an agreement with its
lenders, it could face a liquidity crisis should those lenders
exercise their right to accelerate repayment, leading to a
payment default.

"Should the CVA, change in ownership, and lender negotiations all
prove successful, we would expect House of Fraser's liquidity
pressures to abate somewhat, aided by GBP70 million of new equity
capital and continued access to the RCF for at least the next 12
months. We note that the eventual proceeds from the change in
ownership could change depending on the final transaction
structure.

"The CreditWatch placement reflects the possibility that we could
lower the rating on House of Fraser, potentially by several
notches, if it is unable to complete its proposed CVA process and
files for administration. We could also lower the ratings if
House of Fraser undertakes a financial restructuring that we view
as akin to a distressed exchange, if current trading conditions
worsen, or liquidity comes under further pressure. We expect to
resolve the CreditWatch placement when the outcome of the CVA
becomes clearer and we have assessed the implications of the
resolution on House of Fraser's sustainable earnings base,
capital structure, and liquidity. We could keep the ratings on
CreditWatch for longer than our typical three-month horizon.

"We could affirm the rating if House of Fraser secures approval
for the CVA, its change in ownership progresses as planned, and
it successfully extends the maturities and renegotiates the
maintenance covenants on its bank facilities.

"If the CVA and change in ownership are successful, but the
group's debt maturity profile or covenant structure remain
unchanged, we could lower the rating by one notch. Such an
outcome would further weaken House of Fraser's liquidity position
and call into question the group's ability to conduct a full and
orderly refinancing of its existing capital structure."


INTERNATIONAL GAME: Moody's Rates EUR500M Sr. Sec. Notes 'Ba2'
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to International
Game Technology PLC's ("IGT") proposed EUR500 million senior
secured notes due 2024. The company's existing ratings, including
the senior secured notes rated Ba2, Ba2 Corporate Family Rating,
Ba2-PD Probability of Default Rating and SGL-2 Speculative Grade
Liquidity rating, are unchanged. The rating outlook is unchanged
at stable.

Proceeds from the proposed EUR500 million senior secured notes,
which will be pari passu with the company's existing debt, will
be used to refinance EUR500 million across the company's existing
Euro notes due 2020, as well as pay related fees, expenses and
premiums. The transaction extends IGT's maturity profile and
improves overall financial flexibility, providing funds to
facilitate the partial refinancing of its 2020 maturities, while
maintaining a good liquidity profile.

Assignments:

Issuer: International Game Technology PLC

Senior Secured Regular Bond/Debenture, Assigned Ba2(LGD3)

RATINGS RATIONALE

International Game Technology PLC's Ba2 Corporate Family Rating
benefits from its large and relatively stable revenue base, with
more than 80% achieved on a recurring basis, and high barriers to
entry. Further support is provided by the company's vast gaming-
related software library and multiple delivery platforms, as well
as potential growth opportunities in their digital, mobile
gaming, sports betting, and lottery products. IGT is also the
sole concessionaire of the world's largest instant lottery
(Italy), and holds facility management contracts with some of the
largest lotteries in the US. IGT is constrained by its material
exposure to less than favorable slot replacement demand trends in
the US as well as significant revenue concentration (about one-
third) coming from its Italian operations.

The stable rating outlook incorporates IGT's large recurring
revenue base and high barriers to entry, with the expectation for
revenue and EBITDA growth over the next 12-18 months. The outlook
also considers that free cash flow generation in 2018 will be
constrained due to the upfront fees associated with its Italy
contract renewal and that the company will continue to maintain
good liquidity.

A higher rating would require that IGT demonstrate sustainable
earnings growth through a combination of revenue and expense
improvements, as well as maintain a positive free cash flow
profile and debt/EBITDA below 4.0 times. Ratings could be lowered
if it appears that IGT will fail to maintain debt/EBITDA below
5.0 times.

International Game Technology PLC is a global leader in gaming,
from Gaming Machines and Lotteries to Interactive Gaming and
Sports Betting. The company operates under four business
segments: North America Gaming & Interactive, North American
Lottery; International, and Italy. The company's consolidated
revenue for the last twelve month period ended March 31, 2018 was
approximately $5 billion. International Game Technology has
corporate headquarters in London, and operating headquarters in
Rome, Italy; Providence, Rhode Island; and Las Vegas, Nevada.

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


NEW LOOK: To Cut Prices Across Stores to Attract Customers
----------------------------------------------------------
Ashley Franklin at LincolnshireLive reports that New Look is
dramatically reducing its prices across its stores in a bid to
attract more customers.

The clothes retailer, which has stores in Lincoln, Boston and
Stamford, has entered a Company Voluntary Arrangement (CVA) after
a difficult year which has seen profits drop, LincolnshireLive
relates.

According to LincolnshireLive, that will allow the firm to
continue trading while debts are cleared, but in the meantime a
decision has been made to close 60 stores, while a further 393
chains will stay open but will have their rents reduced.

Lincolnshire's shops have avoided the chop -- but will be part of
a new initiative that will see 80% of stock reduced so it's GBP20
or less, LincolnshireLive states.

It comes after the company announced an operating loss of GBP74.3
million in the last 12 months, LincolnshireLive notes.

New Look's sales in the UK fell by 11.7% on a like-for-like basis
-- while total revenue was GBP1.34 billion, down from GBP1.45
billion year on year, LincolnshireLive discloses.

The business said it was hit with a GBP34.2 million one-off cost,
which included an exceptional charge from stock clearances,
LincolnshireLive relays.


NUMILL: Northern Tooling Acquires Business Out of Liquidation
-------------------------------------------------------------
David Walsh at The Star reports that Numill, a liquidated
Sheffield tool repair company, has been rescued -- and the
employees are returning to work.

According to The Star, Wetherby firm Northern Tooling Reclamation
and two family investors snapped up Numill -- acquiring assets
and taking out a lease on the premises on Balaclava Road,
Philadelphia.

It is a stunning turnaround after the lossmaking 10-strong
business called in liquidators at the beginning of the month, The
Star notes.  It went bust owing GBP642,000 to 109 creditors, The
Star discloses.

Adrian Graham, of Graywoods insolvency practitioners, said the
firm had been in a company voluntary arrangement with creditors
and was running at a loss, The Star relates.

Payouts to unsecured creditors would be "minimal", The Star says.


PILOT TRAINING: Carval Pursues Director Following Collapse
----------------------------------------------------------
Philip Connolly at The Sunday Times reports that CarVal, the
investment fund manager, is pursuing Mike Edgeworth, the
businessman who left pupils in the lurch when his pilot training
company went bust, over debts.

Gulland, a CarVal special purpose vehicle, filed papers seeking
summary judgment against Mr. Edgeworth, The Sunday Times relates.
It has retained legal practice OSM Partners to act for it, The
Sunday Times notes.

Mr. Edgeworth was behind the Pilot Training College of Ireland
(PTCI), which operated for 10 years in Waterford and Florida
before collapsing in 2012 owing EUR5 million in fees paid by
students, The Sunday Times discloses.

PTCI was put into examinership after it lost about EUR5 million
during the preceding 18 months, The Sunday Times recounts.


VIVA BLACKPOOL: Financial Woes Spark Loan Debate
------------------------------------------------
The Gazette reports that the leader of the opposition on
Blackpool Council has questioned the wisdom of lending public
money to private businesses after a high profile resort firm hit
money problems.

According to The Gazette, Conservative councillor Tony Williams
said the council should look closely at how it is using the
council's Business Loan Fund and at the underlying difficulties
business in the resort are facing.

He was speaking after entertainment business Viva Blackpool was
forced to go into a Company Voluntary Arrangement to manage its
debts earlier this year when it hit cash flow problems, The
Gazette relates.

Bosses at Viva said its trade was hit by the town centre
roadworks and bridge repairs putting off customers, together with
teething trouble with its diner after one of its contractors
itself hit trouble delaying the refurbishment work, The Gazette
notes.

Among the creditors is the council which is owed GBP224,762 in
rates and HMRC which is owed GBP131,287 but Viva bosses say the
business is set for a good summer season with a raft of new
shows, The Gazette states.

The council also gave Viva a loan of around GBP100,000 to help
grow the business and create jobs, according to The Gazette.  It
is not linked to the CVA, The Gazette says.

Martin Heywood from Viva Blackpool said the CVA allowed the
business to continue and pay off its debts gradually, The Gazette
recounts.



                            *********

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
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historical cost net of depreciation may understate the true value
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balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
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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-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

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

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