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

                           E U R O P E

           Wednesday, July 4, 2018, Vol. 19, No. 131


                            Headlines


G E R M A N Y

ATLAS RIGID: S&P Assigns Prelim. 'B' ICR, Outlook Stable
BLITZ F18-674: Moody's Assigns B2 CFR, Outlook Stable
BLITZ F18-674: S&P Assigns Prelim. 'B+' ICR, Outlook Stable
BLITZ F18-674: Fitch Assigns 'B(EXP)' LT IDR, Outlook Stable
SCOUT24 AG: Moody's Withdraws Ba3 CFR for Business Reasons


G R E E C E

GREECE: Unlikely to Sustain Market Access in Long Run, IMF Says


I R E L A N D

PERMANENT TSB: Moody's Assigns Ba1 LT Counterparty Risk Rating


K A Z A K H S T A N

EURASIAN BANK: S&P Affirms 'B/B' ICRs, Outlook Still Negative


L U X E M B O U R G

INTEROUTE COMMUNICATIONS: Moody's Withdraws B1 CFR on Acquisition


N E T H E R L A N D S

EURO-GALAXY III: S&P Affirms B-(sf) Rating on Class F-R Notes
KBC GROUP: Moody's Rates EUR1-BB AT1 Securities 'Ba1(hyb)'
STEINHOFF INT'L: New Figures Show Restated Shareholders' Equity


R O M A N I A

* ROMANIA: Insolvencies Up 11.97% in First Five Months of 2018


R U S S I A

INTERNATIONAL FINANCIAL: Moody's Withdraws Caa1 Deposit Ratings


S P A I N

AYT GENOVA VI: S&P Raises Rating on Class D Notes to 'BB-(sf)'
GRIFOLS SA: S&P Affirms 'BB' Long-Term ICR, Outlook Stable


T U R K E Y

DOGUS HOLDING: S&P Retains 'B+' Issuer Credit Rating
NUROL INVESTMENT: Moody's Assigns B3 Global LT Issuer Rating


U N I T E D   K I N G D O M

ATLAS RIGID: Moody's Assigns B2 CFR, Outlook Stable
CONVIVIALITY: FRC to Probe KPMG's Audit of Financial Statements
POUNDWORLD: Founder Frustrated Over Administration
RUNWILD MEDIA: Goes Into Administration After 13 Years
TESCO PLC: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR

WEST BROMWICH BUILDING: Moody's Assigns 'Ba2' CCR
* UNITED KINGDOM: Retail Industry Faces "Make or Break Moment"


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G E R M A N Y
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ATLAS RIGID: S&P Assigns Prelim. 'B' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit ratings to Germany-based rigid plastic packaging
manufacturer Atlas Rigid GmbH and to its subsidiaries Atlas
Packaging GmbH and Atlas Rigid North America Inc. The outlook is
stable.

S&P said, "We also assigned our preliminary 'B' issue and '3'
recovery ratings to the proposed EUR50 million senior secured
revolving credit facility (RCF) and EUR317 million senior secured
term loan B. The recovery rating indicates our expectation of
meaningful (50%-70%; rounded estimate: 55%) recovery of principal
in the event of a payment default.

"Finally, we assigned our preliminary 'CCC+' issue and '6'
recovery ratings to the proposed EUR70 million second-lien
facility. The recovery rating indicates our expectation of
negligible (0%-10%; rounded estimate: 0%) recovery of principal
in the event of a payment default.

"The final ratings will depend on our receipt and satisfactory
review of all final transaction documentation. Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, we reserve the
right to withdraw or revise our ratings. Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
security, and ranking."

The preliminary rating on Atlas primarily reflects the group's
strong niche positions in the fragmented rigid plastic segment.
Atlas' products are mostly sold to blue-chip food manufacturers
and include a broad range of mainly thermoformed but also
injection molded packaging solutions.

Atlas' products relate to the dairy products and spreads (48% of
2017 sales), processed and finished foods (20%), foodservice
(14%), and other segments (18%). In the financial year (FY)
ending December 2017, the group generated sales of around EUR558
million and S&P Global Ratings-adjusted EBITDA of EUR74 million,
resulting in an adjusted EBITDA margin of 13.2%.

S&P assesses Atlas' business risk profile as weak. The rigid
plastics industry is very competitive and there is limited
product differentiation. Atlas' ability to produce standardized
products at low cost and in large volumes, and its ability to
serve customers in multiple locations and on a timely basis, are
key competitive advantages. Atlas' business risk profile is also
underpinned by its technical expertise, and design and innovation
ability. The group's competitive cost model reflects its low-cost
manufacturing footprint and ongoing cost improvement efforts. The
group also benefits from longstanding customer relationships,
mainly with blue-chip customers.

The group has a well-invested asset base. It has 18 manufacturing
sites, mostly located in Central and Western Europe. Atlas'
customer base is somewhat concentrated and partly mirrors the
concentrated nature of the food industry. Its largest customer
accounts for over 7% of revenues and its top 10 customers
generate 39% of sales. Most of its products are sold in Western
Europe, with the U.S. and Turkey jointly accounting for less than
10% of revenues.

In terms of distribution, 80% of Atlas' sales are made directly
to fast-moving consumer food groups (for example, Danone SA,
Unilever PLC, and Arla Foods); 15% to the food services industry
(including Bunzl PLC and McDonald's Corp.); and 5% to retailers
(such as Carrefour SA, Tesco PLC, Coop Group, and Lidl Stiftung &
Co. KG).

The rigid plastic manufacturing industry is very competitive and
challenging. Atlas is exposed to continuous pricing pressures
from customers, which it is largely able to offset with ongoing
cost improvements and a continuous shift toward higher-margin
products and customers. In 2017, profitability was negatively
impacted by unusually sudden and large resin price increases.
Atlas is typically able to pass such increases on to its
customers with a three-to-four month delay, as 66% of its
contracts include contractual pass-through mechanisms. However,
the contractual adjustment mechanism (an average price
calculation) does not guarantee full insulation.

The group also has some exposure to foreign-currency movements --
particularly fluctuations in the Turkish lira and pound sterling
against the euro -- due to its manufacturing operations in Turkey
and the U.K.

S&P said, "We assess Atlas' financial risk profile as highly
leveraged. Our assessment reflects our expectation that adjusted
leverage will amount to 5.9x in December 2018. In 2018 and 2019,
we expect free operating cash flow (FOCF) to debt to remain
modest and close to 5% of debt."

S&P's base case assumes:

-- Eurozone GDP growth of 2% in 2018 and 1.7% in 2019, supported
    by domestic demand, exports, and low unemployment.

-- GDP growth of 2.6% in 2018 in the U.S., underpinned by low
    borrowing costs, anticipated fiscal stimulus, low
    unemployment rates, a weaker dollar, and sound business and
    consumer confidence.

-- A slight revenue increase of 2% in FY2018 and FY2019 to
    reflect additional sales to existing customers, particularly
    in the dairy and detergent segments. S&P expects that
    revenues will increase modestly thereafter.

-- Stable adjusted EBITDA margins at 13.2% in FY2018 and FY2019.
    S&P expects that the group will achieve this by offsetting
    continued pricing pressures with cost-cutting initiatives and
    favorable changes in its client and product mix.

-- Adjusted EBITDA of EUR75.3 million for FY2018, reflecting
    reported EBITDA of EUR70.4 million, adjusted for EUR4.9
    million of added operating leases.

-- Capital expenditure (capex) of approximately EUR35 million-
    EUR40 million in FY2018 and FY2019. The asset base is well-
    invested. Most of this capex will relate to growth and
    maintenance capex in Eastern Europe and France. The growth
    capex largely reflects new make-to-order contracts with
    customers.

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

-- Adjusted debt to EBITDA of 5.9x at end-2018 and 5.8x at end-
    2019.

-- Adjusted funds from operations (FFO) to debt of around 12%-
    13% in December 2018 and December 2019.

-- FOCF to debt below 5% throughout 2018 and 2019.

S&P said, "The stable outlook reflects our expectation that Atlas
will continue to capitalize on its solid client relationships and
leading niche positions. In the next 12 months, we expect
adjusted leverage to remain close to 5.9x and FFO to debt to
exceed 12%. We also expect FOCF to remain minimal.

"We could lower the rating if Atlas experienced unexpected
customer losses or margin pressures--due to raw material prices,
adverse foreign-exchange movements, or delays in the
implementation of its cost rationalizations--preventing material
deleveraging and resulting in negative cash flows, with debt to
EBITDA persistently above 7.0x. We could also lower the rating if
the group's financial policy became more aggressive, for example
through the implementation of dividend recaps.

"We view an upgrade as unlikely in the near term, given Atlas'
high leverage and financial sponsor ownership. Any upside would
most likely be caused by a material improvement in the financial
metrics, with a decline in debt to EBITDA to below 5.0x and a
commitment from the sponsor to maintain debt to EBITDA below 5.0x
on a sustainable basis."


BLITZ F18-674: Moody's Assigns B2 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR) to
Blitz F18-674 GmbH, which will become the holding company of
German sub-metering and energy management services provider
Techem Energy Metering Service GmbH & Co. KG ("Techem" or
"group"). Moody's has also assigned B1 instrument ratings to the
proposed EUR2,340 million senior secured term loan B (TLB) and
EUR275 million senior secured revolving credit facility (RCF), to
be raised by Blitz F18-675 GmbH, a direct subsidiary of Blitz
F18-674 GmbH and intermediate holding of Techem. Additionally,
Moody's has assigned a Caa1 instrument rating to the EUR465
million senior secured second lien notes to be issued by Blitz
F18-674 GmbH. The outlook on all aforementioned ratings is
stable.

Proceeds from the new TLB and notes will be used to finance the
acquisition of Techem by a consortium led by private investment
manager Partners Group via Blitz F18-675 GmbH, to refinance
Techem's existing debt and pay transaction fees and expenses.
Moody's anticipates that the indirect cash contribution from the
new shareholders will be in the form of equity instruments.

Concurrently, Moody's has withdrawn the Ba3 CFR and Ba3-PD PDR
assigned to Techem Energy Metering Service GmbH & Co. KG. At the
time of withdrawal the outlook was stable.

The existing Ba3 instrument ratings on the EUR1,600 million
senior secured TLB and EUR150 million senior secured RCF raised
by Techem GmbH remain unchanged. Moody's expects the outstanding
loans to be repaid upon closing of the acquisition and to
withdraw these instrument ratings upon repayment.

RATINGS RATIONALE

"The B2 CFR reflects the increase in Techem's indebtedness
following the proposed acquisition and refinancing, which results
in an expected leverage of 7.7x Moody's adjusted debt/EBITDA in
fiscal year 2018 on a pro forma basis", says Matthias Heck, a
Moody's Vice President -- Senior Credit Officer and Lead Analyst
for Techem. "This positions Techem initially weakly in the B2
rating category, but we anticipate that leverage will reduce
towards 7.0x over the next 12-18 months, driven by expected
EBITDA growth and debt reduction due to free cash flow
generation", adds Mr. Heck.

Techem continued to grow operating profits and margins in FY2018
(ended 31 March). Revenues decreased to EUR766 million
(reflecting the impact of the first time application of IFRS 15)
from EUR783 million in FY2017. The company-adjusted EBITDA
increased to EUR379 million (reflecting the impacts of IFRS 15
and 16) from EUR320 million, implying an EBITDA margin of 49%,
compared to 41% in FY2017. Besides the impact from the accounting
changes, the strong increase in the EBITDA margin was driven by
Techem's operations excellence program, resulting in improved
service quality and optimized processes.

The improved profitability will support Techem's EBITDA growth
and deleveraging over the next two years, when Moody's forecasts
revenues to grow in the low- to mid-single-digit percentage
range. Steady growth in domestic Energy Services will be
supported by increasing smoke detector volumes, the introduction
of new product offerings as well as a new peak in legionella
analyses expected in FY2020. Energy Services International
revenues will continue to evolve with continued sub-metering
penetration.

Techem's deleveraging will be further supported by voluntary debt
repayments. Moody's forecasts free cash flow (FCF) of EUR50-100
million per annum over the next two years, which Techem plans to
use entirely to reduce debt. Under the previous shareholder,
Techem's FCF was negative in the past three years, mainly due to
high dividend payments. The expectation of positive FCF
generation results from the financial strategy of the new
shareholders, which does not envisage any dividend distributions.

STRUCTURAL CONSIDERATIONS

In the loss-given-default (LGD) assessment for Techem, based on
the structure post refinancing, Moody's ranks pari passu the
proposed new senior secured EUR2,340 million TLB and EUR275
million RCF (both maturing 2025), which share the same security
and are guaranteed by certain subsidiaries of the group
accounting for at least 80% of consolidated EBITDA. The B1 (LGD3)
ratings on the senior secured instruments reflect their priority
position in the group's capital structure and the benefit of loss
absorption provided by the junior ranking debt.

The EUR465 million of senior secured second lien notes (due 2026)
are secured by certain holding company collateral on a first-
ranking basis, and share the same guarantors and part of the same
collateral as the senior secured credit facilities on a
subordinated basis. This is reflected in the Caa1 (LGD6) rating
assigned to the notes. Moody's has considered trade payables as
ranking at the level of the senior secured credit facilities and
pension obligations and minimum lease rejection claims at
operating subsidiaries at the level of the senior secured second
lien notes.

The group's capital structure further includes shareholder loans,
which qualify for 100% equity treatment by Moody's and is
therefore not included in the LGD assessment and debt
calculations for the group.

LIQUIDITY

Techem's short-term liquidity is good. The group's internal cash
sources comprise around EUR40 million of cash on balance sheet as
of March 2018 pro forma of the proposed transaction, as well as
cash flows from operations of around EUR230 million per annum.
Together with EUR275 million available commitments under the
group's proposed RCF these funds will cover all expected cash
needs in the next 12-18 months. Cash uses mainly include Moody's-
adjusted capital expenditures, including the repayment of lease
liabilities, of around EUR150 million per annum and an assumed
minimum cash level to run day to day operations that Moody's has
estimated as being 3% of revenues.

The liquidity assessment also considers that there will be one
springing covenant (senior secured net leverage ratio) attached
to the new RCF, which is tested if the RCF is drawn by more than
40% and which Moody's expects to be set with ample headroom.

OUTLOOK

The stable outlook reflects the expectation that Techem will
continue to grow its revenues and profits in a stable supportive
regulatory environment in Germany and Europe, whilst at least
maintaining its current profitability. Moreover, Moody's expects
the group to adhere to a thoughtful and prudent financial policy,
as shown by free cash flows used for debt repayments and a
sustained sound liquidity profile. As a result, Moody's-adjusted
debt/EBITDA is forecast to reduce towards 7.0x over the next 12-
18 months.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade of Techem's ratings would require (1) leverage to
decline sustainably below 6.5x Moody's-adjusted debt/EBITDA, (2)
retained cash flow/net debt (Moody's-adjusted) to increase above
10%, and (3) a track record of a prudent financial policy,
evidenced by available cash flow being applied to debt reduction.

Downward pressure on Techem's ratings would build if (1) leverage
was not reduced below 7.5x Moody's-adjusted debt/EBITDA by the
end of FY2019, (2) retained cash flow/net debt (Moody's-adjusted)
declined to mid-single digits and (3) free cash flow (Moody's-
adjusted) turned negative.

PRINCIPAL METHODOLOGY

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

CORPORATE PROFILE

Headquartered in Eschborn, Germany, Techem is a leading provider
of energy services operating through two divisions: Energy
Services (accounting for 89% of group sales in FY2018) and Energy
Contracting (11%). Energy Services provides sub-metering of heat
and water consumption for multi-dwelling housing units, energy
cost allocation and billing services. The segment also offers
supplementary services such as smoke detector installation and
maintenance and legionella analysis in drinking water. Energy
Contracting offers a holistic management of clients' energy
consumption through the planning, financing, construction and
operation of heat stations, boilers, cooling equipment and
combined heating and power units. In FY2018, Techem generated
total revenues of around EUR766 million of which 75% were
generated in Germany. Techem's current owner Macquarie agreed to
sell the company to a consortium led by private investment
manager Partners Group for an enterprise value of EUR4.6 billion.
The transaction is expected to close in the third quarter of
2018.


BLITZ F18-674: S&P Assigns Prelim. 'B+' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B+'
long-term issuer credit rating to Germany-domiciled Blitz F18-674
GmbH (Techem) and its wholly owned subsidiary, Blitz F18-675
GmbH. The outlook on both of these entities is stable.

S&P said, "At the same time, we assigned our preliminary 'B+'
issue-level rating and '3' recovery rating to Blitz F18-675
GmbH's proposed EUR2,340 million senior secured first-lien bank
term loans and EUR275 million revolving credit facility (RCF),
and our preliminary 'B-' issue-level rating and '6' recovery
rating to the EUR465 million senior instruments to be issued by
Blitz F18-674 GmbH. The '3' recovery rating reflects our
expectations of meaningful recovery prospects of 50%-70% (rounded
estimate 50%), while the '6' recovery rating indicates our
expectation of negligible recovery (0%-5%) in the event of a
payment default."

On May 25, 2018, Macquarie Infrastructure and Real Assets
announced plans to sell Techem GmbH to a consortium of Partners
Group, Ontario Teachers' Pension Plan, Caisse de depot et
placement du Quebec, and management, for an enterprise value of
EUR4.6 billion. To finance the transaction, Blitz F18-675 GmbH,
Techem GmbH's new intermediate holding company, plans to issue
EUR2,340 million of senior secured loans. Its parent company,
Blitz F18-674 GmbH, is also proposing EUR465 million senior
instruments to fund the acquisition. In addition, the consortium
of financial sponsors will contribute EUR1.3 billion in the form
of preferred equity and another approximate EUR0.6 billion of
common equity.

Based on the initial draft documentation S&P has received, it
expects to treat the preferred shares as equity-like. The group
will also receive a EUR275 million RCF when the acquisition
closes, subject to regulatory closing.

The preliminary 'B+' rating on Techem reflects its satisfactory
business risk profile and highly leveraged financial risk
profile. Techem's satisfactory business risk profile mainly
reflects its leading market share and long-standing experience in
the stable German heat and water sub-metering market. Techem
estimates its market share in Germany -- as measured by revenue
(excluding revenue for certain products and services) -- at just
under 30% (as of March 2017). S&P said, "We also think that
Techem benefits from the favorable industry environment for
energy sub-metering in Germany, which is characterized by legal
requirements for sub-metering in multi-tenant buildings and an
increasing focus on energy efficiency. The essential nature of
energy sub-metering, and long-term customer contracts, are key
factors contributing to stable revenues and operating cash flow
over time, in our view."

Historically, Techem has renewed more than 95% of its contracts
at or before expiry. S&P said, "We expect Techem will continue to
post stable performance metrics, and we think that there is a low
likelihood that the German competition authorities' report,
issued in summer 2017 following its investigation of the sub-
metering sector, will have a significant negative impact on the
company in the near term. Most importantly, the report concluded
that there is no evidence of abuse of market power by companies
operating in the German sub-metering market. However, we think it
is likely that authorities will continue to watch the competitive
landscape in the sector."

S&P considers Techem's relatively small size, with annual
revenues of about EUR766 million in financial year 2018 (ending
March 31, 2018), and its focus on the energy sub-metering niche
market, to be constraints when compared with larger and more
diversified business service companies. This is because this
makes the company vulnerable to potential changes in regulation
or technology that can disrupt the business. Moreover, despite
Techem's expansion into other European and international markets
(partly fueled by the ongoing implementation of the European
Energy Efficiency Directive), its geographic diversification
remains limited. The domestic market still generated three-
quarters of Techem's revenues in fiscal year 2018. Furthermore,
growth prospects for energy sub-metering in the favorable German
market are constrained by a high degree of market saturation, and
Techem's operations in its energy contracting segment dilute its
margins.

S&P said, "Our assessment of the group's financial risk profile
as highly leveraged takes into account the group's aggressive
financial policy and tolerance for high leverage. Following the
acquisition, total cash-pay debt will have materially increased.
We anticipate that S&P Global Ratings-adjusted debt to EBITDA
will stand at about 8.0x when the transaction closes. This is
materially up from the approximate 4.2x that the group reported
for 2018. We expect Techem will reduce the very high leverage
because we understand the shareholders will prioritize debt
repayments over dividend distributions in the coming years."

S&P's base case assumes:

-- Revenue growth of 3%-4% in fiscals 2019 and 2020 (following
    about 1.6% like-for-like for 2018), supported by solid demand
    in its core sub-metering business and ancillary services
   (such as smoke detectors and drinking water analysis), revenue
    growth in Techem's international operations, and higher
    growth in the energy contracting segment.

-- EBITDA margins, as adjusted by S&P Global Ratings, of about
    46%-48% in fiscal 2019 and 2020, after about 47% in fiscal
    2018, which saw a large improvement supported by process-
    optimization and efficiency-improvement measures, as well as
    declining exceptional items related to implementing
    operational excellence and streamlining the cost base. For
    the coming few years, we forecast a stable expense related to
    cost-saving initiatives when compared with 2018.

-- Capital expenditure (capex) of EUR130 million-EUR140 million
    in fiscal 2019 and going down to about EUR120 million-EUR130
    million in years thereafter (following capex of about EUR134
    million in fiscal 2018). About EUR15 million to EUR20 million
    of cash outflows for working capital investments in fiscals
    2019 and 2020.

-- No shareholder distributions.

-- No acquisition payouts.

Based on these assumptions, we arrive at the following credit
measures:

-- Debt to EBITDA of about 7.5x in fiscal 2019 and decreasing to
    about 7.0x in fiscal 2020, following 4.2x in fiscal 2017.

-- Funds from operations (FFO) to debt, after our adjustments,
    of 7%-9% in fiscal years 2019 and 2020, following about 15%
    in fiscal 2018.

-- FFO cash interest coverage of more than 3x in 2019 and 2020.

-- Adjusted free operating cash flow (FOCF) to debt of about 4%,
    with healthy underlying reported FOCF generation of more than
    EUR100 million per year after the year 2019, which will be
    constrained by refinancing costs and cash effects from
    restructuring initiatives.

S&P said, "Our stable outlook reflects our expectation that
Techem is likely to post revenue growth of about 3%-5%, and post
relatively stable adjusted EBITDA margins over the next 12
months, allowing it to reduce its adjusted debt to EBITDA to
about 7.5x in fiscal 2019 from about 8.0x at the closing of the
transaction. Furthermore, we expect that the reported FOCF
generation will remain at a very healthy level (at more than
EUR100 million per year) supporting additional deleveraging.

"We could lower the rating if Techem failed to strengthen its
credit metrics as we currently expect, for example due to lower-
than-expected revenues from supplementary services or expansion
outside Germany, persistently high exceptional expenses,
difficulties with realizing efficiency gains in its operations,
or cash- or debt-funded shareholder remunerations.

"Specifically, rating pressure would result if Techem saw
significantly lower FOCF than we currently expect, or if we
observed material deviations from the company's anticipated
leverage reduction path, undermining prospects for adjusted debt
to EBITDA to progress toward 7.5x in 2019 and further to about
7.0x in 2020.

"Although not currently expected, we could raise the rating if
Techem strengthened its credit metrics more meaningfully than we
currently foresee, for example through stronger-than-expected
revenue or EBITDA growth, resulting in adjusted debt to EBITDA of
about 5x and FFO to debt sustainably near 12%. This would also
likely require private equity owners' committing to a financial
policy commensurate with these metrics."


BLITZ F18-674: Fitch Assigns 'B(EXP)' LT IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has assigned Blitz F18-674 an expected Long-Term
Issuer Default Rating (IDR) of 'B(EXP)' with a Stable Outlook. In
addition, Fitch has assigned an expected 'B+(EXP)' rating with a
Recovery Rating 'RR3' (56%) to the senior secured debt to be
issued by F18-675 and 'CCC+(EXP)'with a Recovery Rating of 'RR6'
(0%) to the senior instruments to be issued by Blitz F18-674.

The assignment of the final ratings is contingent on the
completion of the acquisition of Techem GmbH (B+/Rating Watch
Negative), of the related refinancing and the receipt of final
documents conforming to information received.

KEY RATING DRIVERS

Robust Business: Techem's core business is related to rental,
maintenance and reading/billing of heat and water sub-meters as
well as smoke detectors in the mature and highly penetrated
German market. The company, together with ISTA, holds a
leadership position in the market secured by its large installed
base. The non-cyclical nature of revenues, the absence of
exposure to underlying water and energy prices, combined with a
predictable cost base, translate into stable earnings that are
mostly contractually secured, resulting in limited churn rate.

Higher Leverage: Techem's forecast leverage, pro forma for the
transaction, is 8.6x on a gross adjusted funds from operations
(FFO) basis for 2019 and at 8.4x on a net adjusted FFO basis.
This is higher than most utility-like LBOs in Fitch's peer set.
Under Fitch's rating case, the company is in a position to reduce
leverage to 7.7x on a gross basis in 2022 and 6.6x on a net
basis. This reflects the combination of the high cash conversion
by the business and the new zero dividend policy. Fitch forecasts
FFO fixed charge and interest coverage of around 3.0x, reflecting
the low cost of debt.

Legislation Drives Long-Term Demand: Techem's business is
underpinned by the Energy Efficiency Directive in the EU driving
long-term demand for services around energy and water
consumption. Furthermore, services related to smoke detectors and
water testing benefit from supportive legislation in Germany.
Within this favourable regulatory framework, albeit in some
countries characterised by a slower adoption rate, the group has
been consolidating its position outside of Germany, achieving top
tier market shares in most of the European countries covered.

Medium-to Long-Term Regulatory Risk: Fitch believes that the cost
of sub-metering will not be part of the political agenda of the
current German legislative period. Only in the medium-to long-
term would the potential introduction of new regulation aimed at
stimulating competition, market transparency, inter-operability
and standardisation of calibration of metering devices impact
Techem's operating profitability, potentially resulting in
additional investments in product hardware and software. However,
at this stage, it's premature to quantify such impact on the
company in the absence of proposals from the regulator.

Strong Cash Flow Generation: Techem's high unleveraged cash flow
generation is the result of a utility/infrastructure- like
business model characterised by high coverage of the value chain
in a market that sees the group as one of the sector leaders in
Germany and ranking a leading operator in the other key final
markets. Fitch's rating case forecasts free cash flow (FCF)
generation of 7.3% of revenues for 2019 and 12.5% for 2020.

These figures are at the higher end of leveraged utility peers as
well as business services operators such as Evergood 4 APS --
Nets (B+/Stable) and Latino Italy S.p.A. -- Nexi (B+(EXP)/Stable)
(high single- to low double-digit) that share with Techem a
billing model on a wide portfolio of customers in a similar
competitive environment and with a low churn rate.

New Financial Policy: The new shareholders consortium, led by
Partners Group global infrastructure and private equity teams,
jointly with CDPQ and OTPP, announced a financial policy
including no dividend payments, in addition, the financial
documentation within the proposed transaction takes a more
controlled stance towards cash distribution. Fitch views the
newly outlined financial policy as supportive of its forecasts,
including steady leverage reduction from the high post-
transaction level.

DERIVATION SUMMARY

Blitz's expected IDR of 'B(EXP)' reflects a utility-like business
profile that is positioned between high non-investment and low
investment grade (BB+/BBB-) categories and the constraint of high
total gross leverage. Proximity to utility peers such as Viridian
Group Investments Limited (B+/Stable) and Melton Renewable Energy
UK PLC (BB/Stable) is underpinned by a benign regulatory
environment and a high share of contracted revenue, while
comparison with sub-metering peers highlights Techem's stronger
business profile and cash flow conversion but also the company's
higher gross total indebtedness. Highly leveraged business
services operators, such as Nets and Nexi, that share a billing
model on a wide portfolio of customers in a favourable
competitive environment are comparable to Techem. Net's unique
competitive position and Nexi's secular growth prospects are
stronger than Techem's.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

  - Low-single digit revenue growth

  - EBITDA margins at 45% - 46%

  - Capex on average at 12-13% of sales

  - No dividend paid in line with the new financial policy

  - Significant increase in gross debt post-acquisition with an
    expected new capital structure composed of EUR 2,340 million
    secured term loan, EUR465 million senior instruments and a
    for EUR275 million back-up revolving credit facility (RCF)

RECOVERY ASSUMPTIONS

Given Techem's strong cash flow generation and asset-light
operations, Fitch has applied the going concern approach, which
would lead to higher realisable recoveries as opposed to balance
sheet liquidation.

Considering Techem's stable business nature and cross-referencing
it to peers with similarly stable cash generation and
infrastructure-like operations, Fitch has applied a 7.0x distress
enterprise value (EV)/EBITDA multiple to a Fitch-estimated EBITDA
of EUR355 million as of March 2018 discounted by 35%. After
deducting 10% for administrative claims, its senior secured term
loan B of EUR2,340 million ranking pari passu with the EUR275
million RCF Fitch's analysis shows a recovery of around 56%,
resulting in an instrument rating of 'B+'/'RR3', after a notch
uplift from the IDR 'B'. Fitch's analysis shows the EUR465
million senior instruments yielding zero recoveries, resulting in
an instrument rating of 'CCC+'/'RR6' after a two-notch downward
adjustment from the IDR.

RATING SENSITIVITIES

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

  - Reduction of FFO adjusted gross leverage to below 7.0x on a
    sustained basis

  - FFO interest coverage greater than 3.0x

  - Ongoing commitment to new financial policy and a stronger
    balance sheet.

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

  - FFO adjusted gross leverage sustainably at or above 8.0x
    after 2020 with no deleveraging and FFO adjusted net leverage
    above 7.0x

  - FFO interest coverage below 2.0x on a sustained basis

  - Departure from financial policy of debt reduction and zero
    dividend distribution

  - FCF approaching breakeven.

LIQUIDITY

Strong Liquidity: Strong operating performance and limited/zero
shareholder distribution will support steadily increasing FCF.
This, together with a large back-up RCF of EUR275 million, which
Fitch expects to be largely undrawn, and foreseen readily
available cash on balance sheet of EUR74 million at end-2019,
will provide a strong cushion over zero contractual maturities
over the next six years.


SCOUT24 AG: Moody's Withdraws Ba3 CFR for Business Reasons
----------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of Scout24 AG
(Scout24). At the time of withdrawal, the ratings were: corporate
family rating of Ba3 and probability of default rating of Ba3-PD.
At the time of withdrawal, these ratings had a positive outlook.

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



===========
G R E E C E
===========


GREECE: Unlikely to Sustain Market Access in Long Run, IMF Says
---------------------------------------------------------------
Reuters reports that the International Monetary Fund said on June
29 Greece exits its third international bailout in August but
without further debt relief, it may not be able to sustain market
access in the long run.

Greece and its European partners agreed on a set of debt measures
to help the country emerge smoothly from the program, Reuters
relates.  The deal significantly improved medium-term debt
sustainability but "longer prospects remain uncertain," the IMF,
as cited by Reuters, said.

According to Reuters, the IMF said that European assumptions on
Greece's future growth were "very ambitious", and those targets,
along with aim to run large primary fiscal surpluses, would make
it difficult for Greece to sustain market access over the long
run.

Euro zone finance ministers extended maturities and deferred
interest payments on EUR96 billion (US$111.87 billion) worth of
Greek debt, about a third of the country's overall debt pile,
Reuters discloses.  Greece has the highest ratio of debt to gross
domestic product in the eurozone, representing almost 180% of its
national output, Reuters notes.



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


PERMANENT TSB: Moody's Assigns Ba1 LT Counterparty Risk Rating
--------------------------------------------------------------
Moody's Investors Service assigned Counterparty Risk Ratings
(CRRs) to entities within the following six banking groups:
Allied Irish Banks, p.l.c. (AIB), Bank of Ireland (BOI), Hewlett-
Packard International Bank Plc (HPIB), KBC Bank Ireland PLC
(KBCI), Permanent tsb p.l.c. (PTSB) and Ulster Bank Ireland DAC
(UBID).

Moody's Counterparty Risk Ratings (CRR) are opinions of the
ability of entities to honour 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 honoured. 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 operating in Ireland subject to
this rating action, Moody's starts with the banks' adjusted
Baseline Credit Assessments (BCAs) 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.

Furthermore, in some cases the CRR benefits from additional
uplift from government support.

  -- UPLIFT FROM MOODY'S LOSS GIVEN FAILURE ANALYSIS

  - For four banking groups, Moody's advanced LGF approach
provides three notches of uplift to the CRRs above their
respective adjusted BCAs: AIB, BOI, PTSB, and UBID.

  - For KBCI, Moody's advanced LGF approach provides two notches
of uplift to the CRR above its adjusted BCA.

  - For HPIB, Moody's advanced LGF approach provides one notch of
uplift to the CRR above its adjusted BCA.

Although the banking groups whose CRRs receive three 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 the banking groups already
provides the maximum amount of uplift allowed under Moody's
rating methodology.

In all cases, the CRRs assigned are equal to or higher than the
rated bank's senior debt and deposit ratings where such ratings
are assigned. 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 honour its CRR liabilities or
to transfer those liabilities to another party who will honour
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
banks 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.

  -- UPLIFT FROM GOVERNMENT SUPPORT

  - For three banking groups, Moody's considers the likelihood of
government support for CRR liabilities to be moderate, resulting
in an additional one notch of uplift from their respective
adjusted BCAs, reflecting their systemic importance to the Irish
financial system: AIB, BOI and PTSB.

  - For the remaining three banking groups, due to their limited
systemic importance, Moody's believes there is a low probability
of government support for CRR liabilities, which does not result
in any further uplift: HPIB, KBCI and UBID.

OUTLOOK

CRRs do not carry outlooks.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

The CRRs assigned to the banks included in this action could be
upgraded following an upgrade of their respective adjusted BCAs;
for KBCI and HPIB, whose CRR benefits from less than three
notches of uplift from Moody's advanced LGF approach, a higher
volume of bail-in-able debt and junior deposits could also lead
to an upgrade of the CRR.

Conversely, the CRRs for the banks included in this action could
be downgraded following a downgrade of their respective adjusted
BCAs, or by a reduction in the stock of bail-in-able debt and
junior deposits.

The following ratings were assigned:

Allied Irish Banks p.l.c., EBS d.a.c. --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of A3

  Local currency and foreign currency Short-term Counterparty
  Risk Rating of Prime-2

Bank of Ireland --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of A2

  Local currency and foreign currency Short-term Counterparty
  Risk Ratings of Prime-1

Hewlett-Packard International Bank Plc --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of A3

  Local currency and foreign currency Short-term Counterparty
  Risk Ratings of Prime-2

KBC Bank Ireland PLC --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of Baa2

  Local currency and foreign currency Short-term Counterparty
  Risk Ratings of Prime-2

Permanent tsb p.l.c. --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of Ba1

  Local currency and foreign currency Short-term Counterparty
  Risk Ratings of Not Prime

Ulster Bank Ireland DAC --

  Local currency and foreign currency Long-term Counterparty Risk
  Ratings of A2

  Local currency and foreign currency Short-term Counterparty
  Risk Ratings of Prime-1



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


EURASIAN BANK: S&P Affirms 'B/B' ICRs, Outlook Still Negative
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B/B' long- and short-term issuer
credit ratings. The outlook remains negative. The national scale
rating on Eurasian Bank JSC was raised to 'kzBB+' from 'kzBB' due
to a criteria change.

S&P said, "We affirmed the ratings because, although Eurasian
Bank's asset quality in 2017 turned out to be weaker than we
previously assumed, substantial government support offset the
deterioration in the bank's asset quality. In October 2017, the
government provided Eurasian Bank with Kazakhstani tenge (KZT)
150 billion (about US$442 million as of June 26, 2018) of
subordinated debt for 15 years at a below-market interest rate.
This enabled the bank to create material provisions for its
problem loans and supported its capital base. We expect the bank
to continue to benefit from potential extraordinary government
and shareholder's support, if needed.

"In our view, Eurasian Bank is a moderately strategic bank in
Kazakhstan's banking sector. The bank is a notable market player
in retail banking, especially in retail deposits and auto
lending. Eurasian Bank accounted for 4.6% of total system retail
deposits as of May 1, 2018. According to the bank's estimates,
about 50% of all auto-lending deals for new cars in the country
was via Eurasian Bank over the past 18 months. In our view, the
KZT150 billion in state support also confirms that the regulator
considers the bank's ability to continue its activities without
disruption important for the stability of the banking sector. The
subordinated debt was provided to Eurasian Bank as part of the
state's recapitalization program, which aims to support asset
quality improvement in the large systemically important banks.
Because the debt was provided at a below market interest rate,
Eurasian Bank benefited from a capital gain of KZT107 billion,
which the bank simultaneously used to create KZT104 billion of
new loan loss provisions in 2017.

"We have revised the bank's risk position assessment to weak from
moderate. However, even after creating abnormally high provisions
in 2017, we estimate Eurasian Bank's problem loans constitute at
least 30% of total lending as of June 1, 2018. This is comparable
with our estimate for the Kazakh banking system, but materially
above Eurasian Bank's peers.

"Eurasian bank's credit costs of 15.3% in 2017 and projected
credit losses of 3%-4% in 2018-2019 are also markedly higher than
the system average of 7.7% in 2017 and our banking sector
forecast of about 2.0%-2.5% in 2018-2019. Higher cost of risk
reflects bank's commitment under the state program to clean up
its loan book. This also points to the bank's rather relaxed
underwriting standards and poor risk management practices, in our
view.

"Participation in the state's program to increase financial
stability means that Eurasian Bank has to follow a predetermined
plan assuming further capital increases and creation of
additional provisions. We understand that the bank must increase
its Tier 1 equity by KZT54 billion by year-end 2022 through
capital injections from the shareholders, through profit
retention, or a combination of these. We also understand that
Eurasian Bank is restricted from aggressive asset growth and has
to introduce tighter standards with respect to selecting
borrowers.

"We expect that our risk-adjusted capital (RAC) ratio will
marginally decrease to about 5.3% over the next 18 months, from
5.7% as of Dec. 31, 2017. In our base case, we assume a KZT4.7
billion capital build-up through earnings retentions and equity
injections in 2018 and KZT10.4 billion in 2019. These are
mandatory targets for the bank under the state recapitalization
program. The proportion of income earned versus capital injected
may vary, depending on Eurasian Bank's actual profitability (we
forecast close to break-even financial results in 2018-2019). We
also expect around 5.5%-8.0% of annual loan book growth in 2018-
2019. Finally, our base case incorporates a KZT13.9 billion one-
off equity reduction in 2018 due to the implementation of
International Financial Reporting Standard Rule No. 9 (non profit
and loss item).

"Despite receipt of the capital support, however, we consider
Eurasian Bank's capital and earnings quality as weak. Capital
gains from recognizing subordinated debt from the state provided
at below market interest rates are comparable with the size of
the bank's total adjusted capital. Eurasian Bank's earnings are
low and volatile, which, in our view, renders the bank heavily
reliant on the shareholders' providing additional capital over
the next 18 months for its development.

"The negative outlook indicates pressure on Eurasian Bank's
capitalization and asset quality over the next 12 months
exacerbated by the adverse operating environment. It also
reflects the bank's opportunistic risk-management practices.

"We could take a negative rating action if our projected RAC
ratio for the bank decreased to below 5% over the next 12-18
months, due to substantially higher-than-expected losses or loan
growth not supported by sufficient equity injections from the
bank's shareholders. Weaker systemic importance, as seen, for
example, in a pronounced deterioration of the bank's franchise or
diminished state support, might also trigger a downgrade.

"We could consider revising the outlook to stable if we saw a
lower risk of our projected RAC ratio falling below our base-case
forecast within the next 12 months. A sustainable strengthening
of asset quality and risk profile to a level more comparable with
that of peers could also prompt us to take a positive rating
action."



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


INTEROUTE COMMUNICATIONS: Moody's Withdraws B1 CFR on Acquisition
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the B1 corporate family
rating (CFR) and the B1-PD probability of default rating (PDR) of
Luxembourg-based information communication technology and cloud
computing service provider Interoute Communications Holdings SA
("Interoute"), following an announcement in May 2018 by GTT
Communications, Inc. ("GTT", B2 stable) that it has completed the
acquisition of Interoute. The rating action follows the repayment
of Interoute's rated debt.

At the time of the withdrawal, the ratings were on review for
downgrade.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings because Interoute's
debt previously rated by Moody's (issued by subsidiary Interoute
Finco plc) has been fully repaid.

COMPANY PROFILE

Interoute Communications Holdings SA is one of Europe's leading
information communication technology and cloud computing
companies, offering data transport and information communication
products and services across its fiber network and data center
platform. Interoute's network and platform encompasses over
70,000 km of lit fibre, 15 data centres, 17 Virtual Data Centres
and 33 colocation centres, with connections to 195 additional
partner data centres. For the 12 months ended December 31, 2017,
Interoute reported EUR710 million in revenue and EUR171 million
in adjusted EBITDA.



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


EURO-GALAXY III: S&P Affirms B-(sf) Rating on Class F-R Notes
-------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on all of Euro-
Galaxy III CLO B.V.'s senior secured notes.

On Jan. 17, 2017, Euro-Galaxy III CLO issued refinancing notes to
redeem the then-existing notes. The transaction was also reset to
allow for the purchase of a further EUR40.7 million of assets
over a ramp-up period of 5.5 months.

Since the reset transaction closed in January 2017, the
portfolio's weighted-average spread reported by the trustee has
decreased by 54 basis points. S&P notes however that the
weighted-average spread has started to increase again since
February 2018.

S&P said, "We have also observed negative rating migration of the
portfolio since the reset date. The proportion of assets rated
below 'B' increased to 17% from 3%.

"According to the latest trustee report, only 60% of the VFN is
currently drawn, which benefits the credit enhancement of all the
rated notes, and limits the cost of liabilities. In our opinion,
this prudent liability management helped mitigate the above
negative developments.

"We have performed a credit and cash flow analysis in line with
our "Global Methodologies And Assumptions For Corporate Cash Flow
And Synthetic CDOs". It shows that the available credit
enhancement for all classes of notes is still commensurate with
the currently assigned ratings. We have therefore affirmed our
ratings on all classes of notes."

Euro-Galaxy III CLO B.V. (Euro-Galaxy III) is a European cash
flow collateralized loan obligation (CLO), securitizing a
portfolio of primarily senior secured euro-denominated leveraged
loans and bonds issued by European borrowers. PineBridge
Investments Europe Ltd. is the collateral manager and Credit
Industriel et Commercial (CIC) is the junior collateral manager.
The non-call period ends on Jan. 17, 2019.

  RATINGS LIST

  Euro-Galaxy III CLO B.V.
  EUR381.7 mil VFN and fixed- and floating-rate notes

                                   Rating        Rating
  Class         Identifier         To            From
  A-R-R VFN                        AAA (sf)      AAA (sf)
  A-R           XS1533932221       AAA (sf)      AAA (sf)
  B-1R          XS1533929607       AA (sf)       AA (sf)
  B-2R          XS1533929862       AA (sf)       AA (sf)
  C-R           XS1533929516       A (sf)        A (sf)
  D-R           XS1533930522       BBB (sf)      BBB (sf)
  E-R           S1533930019        BB (sf)       BB (sf)
  F-R           XS1533929789       B- (sf)       B- (sf)


KBC GROUP: Moody's Rates EUR1-BB AT1 Securities 'Ba1(hyb)'
----------------------------------------------------------
Moody's Investors Service assigned a Ba1(hyb) rating to the low-
trigger EUR1 billion additional tier 1 (AT1) securities issued by
KBC Group N.V., holding company for KBC Bank N.V., on April 24,
2018.

The perpetual non-cumulative AT1 securities rank junior to Tier 2
capital, pari passu with other deeply subordinated debt
securities and senior only to common equity tier 1 (CET1).
Coupons may be cancelled in full or in part on a non-cumulative
basis at the issuer's discretion or mandatorily in case the
distributable items were not sufficient.

The principal of the securities is partially or fully written
down if KBC Group's CET1 ratio falls below 5.125%, which Moody's
considers to be a low trigger. KBC Group's phased-in CET1 ratio
was 16.5% at year-end 2017.

The proceeds of the notes will be down-streamed to KBC Bank on
the same deeply-subordinated basis through a mirror transaction.

RATINGS RATIONALE

RATING OF AT1 INCORPORATES LIKELY HIGH LOSS SEVERITY AND RISK OF
COUPON SUSPENSION ON A NON-CUMULATIVE BASIS

The Ba1(hyb) rating assigned to the low-trigger AT1 securities,
or "non-viability securities", reflects (1) KBC Bank's adjusted
baseline credit assessment (BCA) of baa1; (2) Moody's Advanced
Loss Given Failure (LGF) analysis, resulting in a position three
notches below the bank's adjusted BCA; and (3) Moody's assumption
of a low probability of government support for this instrument,
resulting in no uplift.

KBC Group is subject to the EU's Bank Recovery and Resolution
Directive (BRRD) and Moody's considers the EU to be an
Operational Resolution Regime.

As the resolution plan for the group is based on a Single Point
of Entry at the level of KBC Group, Moody's considers that KBC
Bank and KBC Group have essentially the same probabilities of
failure. Therefore, Moody's uses the probability of failure of
the bank, represented by KBC Bank's BCA of baa1, as the starting
point for rating KBC Group's AT1 securities. Moody's then applies
its Advanced LGF analysis in order to determine the loss-given-
failure of the AT1 instruments. Given the likelihood of only
modest protection in the form of residual equity, the LGF
analysis indicates likely high loss-given-failure for AT1
securities, resulting in a position one notch below the bank's
adjusted BCA. In addition, Moody's captures the risk of coupon
suspension on a non-cumulative basis by removing an additional
two notches from the adjusted BCA.

WHAT COULD CHANGE THE RATING UP/DOWN

KBC Group's AT1 rating of Ba1(hyb) would be upgraded or
downgraded together with any upgrade or downgrade of KBC Bank's
adjusted BCA.


STEINHOFF INT'L: New Figures Show Restated Shareholders' Equity
---------------------------------------------------------------
Chris Bryant at Bloomberg News reports that the most important
passage in Steinhoff International Holdings NV's regulatory
filing on June 29, was a section attesting that management still
believes the retailer is a going concern.

The acquisitive South African group's shares have lost almost all
their value and its bonds trade at a steep discount following a
warning of accounting regularities and the resignation of its
chief executive, which triggered a liquidity crisis in December,
Bloomberg relates.

According to Bloomberg, the new unaudited figures include a
shocking EUR11 billion (US$12.8 billion) back-dated restatement
of shareholders' equity, including the disclosure that much of
the EUR3 billion of cash it reported a year ago didn't exist (or
shouldn't have been consolidated) and that its profits were
overstated by about EUR1 billion.  It reported a EUR600 million
net loss in the six months to March, Bloomberg discloses.

It's a bleak picture for Steinhoff's new management team as it
tries to meet obligations on a EUR10.6 billion debt, recover some
value for shareholders and reassure customers and suppliers that
it's still a reliable partner, Bloomberg states.  As is often the
case in these types of situations, only Steinhoff's financial
advisors seem to be doing well from its implosion, according to
Bloomberg.

Equity investors are naturally furious about what's happened and
some are suing the company, Bloomberg relays.  Holders of
Steinhoff's debt are fortunate that those claims won't be
resolved quickly, so any cash penalties will only come due
later -- possibly allowing some time for the retailer to stagger
to its feet again.  The company hasn't yet made a provision for
possible litigation payouts, nor quantified the potential
liabilities, Bloomberg says.

The numbers published on June 29 are unaudited, so think of them
as a best guess, Bloomberg notes.  There's a risk of more
irregularities coming to light because of the ongoing probe of
various off-balance-sheet structures and non-arms-length
transactions, according to Bloomberg.



=============
R O M A N I A
=============


* ROMANIA: Insolvencies Up 11.97% in First Five Months of 2018
--------------------------------------------------------------
Georgeta Gheorghe at Business Review, citing data published on
the National Trade Register Office (ONRC), reports that the
number of companies and insolvency-licensed individuals increased
by 11.97% in the first five months of this year, compared with
the same period in 2017, to 3,686.

Most companies and sole traders in insolvency are in Bucharest,
respectively 737 (plus 2.50% year-on-year) and in Bihor counties
- 237 (up by 22.16% year-on-year), Iasi - 213 (up by 4.41%) and
Timis - 181 (up by 27.46%), Business Review discloses.  In May
alone, 721 firms and PFAs went into insolvency, Business Review
notes.

According to Business Review, by field of activity, the largest
number of insolvencies was recorded in wholesale and retail
trade, repair of motor vehicles and motorcycles - 1,130 (plus
13.68%).  A number of 226 insolvencies were reported in May only,
Business Review states.

Also, between January and May 2018, 8,364 companies suspended
their activity (plus 30.81%), 1,406 only in May, and 15,751 were
dissolved, up by 59.49%, according to Business Review.  In
May, 3,098 companies were dissolved, Business Review relays.

In February, Coface officials reported that insolvencies in
Romania remain at twice the level of the Central and Eastern
European (CEE) average, Business Review says.

The three major mistakes of companies that have entered
insolvency are: poor financing of investments, wrong investments,
and aggressive dividend policy, Business Review states.



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


INTERNATIONAL FINANCIAL: Moody's Withdraws Caa1 Deposit Ratings
---------------------------------------------------------------
Moody's Investors Service has withdrawn the following ratings of
International Financial Club:

  - Long-term local- and foreign-currency bank deposit ratings of
    Caa1

  - Short-term local and foreign-currency bank deposit ratings of
    Not Prime

  - Long-term Counterparty Risk Assessment of B3(cr)

  - Short-term Counterparty Risk Assessment of Not Prime(cr)

  - Baseline credit assessment (BCA) and adjusted BCA of caa1

At the time of the withdrawal, the bank's long-term deposit
ratings carried a developing outlook.

Moody's has withdrawn the ratings for its own business reasons.



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


AYT GENOVA VI: S&P Raises Rating on Class D Notes to 'BB-(sf)'
--------------------------------------------------------------
S&P Global Ratings raised and removed from CreditWatch positive
its credit ratings on AyT Genova Hipotecario VI Fondo de
Titulizacion Hipotecaria's class A2, B, C, and D notes.

S&P said, "The rating actions follow the application of our
relevant criteria and our full analysis of the most recent
transaction information that we have received, and reflect the
transaction's current structural features. We have also
considered our updated outlook assumptions for the Spanish
residential mortgage market.

"Our structured finance ratings above the sovereign (RAS)
criteria classify the sensitivity of this transaction as
moderate. Therefore, after our March 23, 2018, upgrade of Spain
to 'A-' from 'BBB+', the highest rating that we can assign to the
senior-most tranche in this transaction is six notches above the
sovereign rating on Spain, or 'AAA (sf)', if certain conditions
are met. For all the other tranches, the highest rating that we
can assign is four notches above the sovereign rating.

"Following the sovereign upgrade, on April 6, 2018, we raised to
'A' from 'A-' our long-term issuer credit rating (ICR) on Banco
Santander S.A., which is the swap provider in this transaction.

"Considering the remedial actions defined in the swap agreement,
and the current ICR on Banco Santander, the maximum rating on the
notes is not constrained according to our counterparty criteria.
"Our European residential loans criteria, as applicable to
Spanish residential loans, establish how our loan-level analysis
incorporates our current opinion of the local market outlook. Our
current outlook for the Spanish housing and mortgage markets, as
well as for the overall economy in Spain, is benign. Therefore,
we revised our expected level of losses for an archetypal Spanish
residential pool at the 'B' rating level to 0.9% from 1.6%, in
line with table 87 of our European residential loans criteria, by
lowering our foreclosure frequency assumption to 2.00% from 3.33%
for the archetypal pool at the 'B' rating level.

"After applying our European residential loans criteria to this
transaction, the overall effect in our credit analysis results,
except at the 'AAA' rating level, is a decrease in the weighted-
average foreclosure frequency (WAFF) and an increased weighted-
average loss severity (WALS).

"The decrease of the WAFF was mainly driven by our revised
foreclosure frequency assumptions. The WALS increased due to the
updated market value decline assumptions. As the pool's
attributes indicate better credit quality than the archetype, we
increased the projected loss that we modeled to meet the minimum
floor under our European residential loans criteria."

  Rating level     WAFF (%)    WALS (%)
  AAA                 7.65       47.63
  AA                  5.16       44.55
  A                   3.91       34.62
  BBB                 2.87       30.95
  BB                  1.89       21.74
  B                   1.12       24.30

AyT Genova Hipotecario VI's class A2, B, C, and D notes' credit
enhancement has increased to 9.2%, 7.2%, 5.0%, and 2.9%,
respectively, from 8.9%, 6.9%, 4.7% and 2.6%, since our previous
review, due to the reserve fund having reached its floor as the
amortization of the notes has been pro-rata since the April 2016
payment date, when the reserve fund was replenished after a small
draw of the reserve fund at the January 2016 payment date.

The transaction has performed in line with our expectations, and
arrears have always been lower than our Spanish residential
mortgage-backed securities (RMBS) index. Cumulative defaults,
which stand at 0.4% of the original pool balance, are also lower
than other Spanish RMBS transactions that we rate. The
collateral's strong quality is due to the strong underwriting
procedures for granted mortgage loans with a weighted-average
original loan-to-value ratio that is lower than other Spanish
mortgage lenders.

S&P said, "Following the application of our criteria, we have
determined that our assigned ratings on the classes of notes in
this transaction should be the lower of (i) the rating as capped
by our RAS criteria, (ii) the rating as capped by our
counterparty criteria, or (iii) the rating that the class of
notes can attain under our European residential loans criteria.

"Taking into account the results of our updated credit and cash
flow analysis, we consider the available credit enhancement for
the class A2 notes to be commensurate with a higher rating than
previously assigned. We have therefore raised to 'AAA (sf)' from
'AA+ (sf)' and removed from CreditWatch positive our rating on
the class A2 notes.

"We consider the available credit enhancement for the class B
notes to be commensurate with a higher rating than previously
assigned. We have therefore raised to 'AA (sf)' from 'AA- (sf)'
and removed from CreditWatch positive our rating on the class B
notes.

"We consider the available credit enhancement for the class C
notes to be commensurate with a higher rating than previously
assigned. However, according to our RAS criteria, the current
credit support of the class C notes is not sufficient to mitigate
a severe stress of economic conditions. Therefore, the rating on
the class C notes is capped at our 'A-' long-term sovereign
rating on Spain, under our RAS criteria. We have therefore raised
to 'A- (sf)' from 'BBB+ (sf)' and removed from CreditWatch
positive our rating on the class C notes.

"We consider the available credit enhancement for the class D
notes to be commensurate with a higher rating than previously
assigned. We have therefore raised to 'BB- (sf)' from 'B (sf)'
and removed from CreditWatch positive our rating on the class D
notes."

AyT Genova Hipotecario VI is a Spanish RMBS transaction that
closed in June 2005.

  RATINGS LIST

  Class             Rating
              To               From

  AyT Genova Hipotecario VI, Fondo de Titulizacion Hipotecaria
  EUR700 Million Mortgage-Backed Floating-Rate Bonds

  Ratings Raised And Removed From CreditWatch Positive

  A2          AAA (sf)         AA+ (sf)/Watch Pos
  B           AA (sf)          AA- (sf)/Watch Pos
  C           A- (sf)          BBB+ (sf)/Watch Pos
  D           BB- (sf)         B (sf)/Watch Pos


GRIFOLS SA: S&P Affirms 'BB' Long-Term ICR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term issuer credit
rating on Spain-based global specialty biopharmaceutical company
Grifols S.A. and simultaneously raised to 'BB+' from 'BB' its
ratings on the group's secured debt. At the same time, S&P
revised the recovery ratings on the secured debt to '2' from '3'.
S&P affirmed its ratings on the group's unsecured debt. The
outlook remains stable.

The ratings continue to reflect Grifols' position as one of the
three leading global players in the growing EUR20 billion plasma
derivatives market. As a key constituent of life-saving drugs,
the plasma industry (collection, fractionation, and purification)
is highly regulated and benefits from high barriers to entry.
This is because it requires sizable capital expenditure (capex),
and there is significant lead time before capacity is built,
certified, and operational. The risk of substitution or generic
competition is limited, given the importance of production
expertise in the industry. The alternatives to plasma-derived
products (mainly recombinants, i.e. genetically engineered
clotting factors), are very expensive, so substitution risk is
limited albeit not absent as evidenced by Roche's recent
discoveries in hemophilia. In addition to its strong growth
prospects because of new disease indications and increased uses
in emerging markets, this market is characterized by strong
profitability because end-product price increases can offset
rising prices for raw materials. A key factor to success is the
access to raw material, i.e. blood plasma, through donor centers.
Grifols is well positioned with now about 225 donor centers,
following the acquisition of German collection group Haema for
EUR220 million. The cost of plasma has substantially increased in
recent years as demand has grown quicker than the offer.
Negatively, the plasma industry is also exposed to inherent risk
of product contamination or product withdrawal, which could lead
to significant revenue loss and liabilities. However, Grifols has
a strong track record in terms of quality and is benefitting from
the quality issues that smaller competitors are currently facing.
The company's bioscience division (plasma derivatives operations)
remains the key profit driver, contributing about 80% of the
revenues in first-quarter 2018. However, through acquisitions,
the group has also built a significant presence in the profitable
diagnostic market, which provides diversification.

The group's leverage is aggressive, reflecting Grifols'
acquisitive strategy. This weighs negatively on the ratings.
Adjusted debt to EBITDA rose to 4.8x at year-end 2017, reflecting
the acquisition of diagnostic group NAT Hologic for $1.85
billion.

S&P said, "We expect the group's leverage to gradually improve,
but only modestly this year: Both because EBITDA growth will be
constrained by one-off costs and because heavy investments in
plasma derivatives (new donor centers notably) will constrain
debt reduction. We expect the deleveraging trajectory to
accelerate from 2019 or 2020 when one-off costs disappear and the
ramp up period of the new investments is completed. The group's
free operating cash flow is healthy, now approaching EUR500
million per year."

S&P said, "The stable outlook reflects our opinion that Grifols
will benefit from the solid demand for main plasma proteins and
from a significantly enhanced competitive position in
diagnostics, following the acquisition of Hologic's high-margin
blood screening expertise last year. We expect that revenues will
grow by more than 5% in 2018 but that margin improvement will
only be slight, due to high R&D and increasing plasma cost. We
expect operating margins to grow more substantially in the medium
term when the new donation centers mature. The group's adjusted
debt-to-EBITDA ratio spiked at about 4.8x in 2017, reflecting the
Hologic transaction. We expect moderate deleveraging to about
4.6x in 2018 as cash flow generation will be constrained by the
current industrial investment phase that is seeing a ramp-up of
working capital outflows, sustained capex needs, and acquisitions
that have already exceeded EUR300 million in first-half 2018.
However, our base case excludes any significant debt-funded
acquisition in the next 24 months.

"We could lower our rating if Grifols failed to maintain its
adjusted debt to EBITDA significantly below 5x. We believe this
would most likely stem from an unexpected sizable acquisition.
Strong operational setbacks, such as higher-than-expected plasma
costs, higher-than-expected costs of collection-capacity
expansion, or an unexpected slowdown in the more-competitive
diagnostics business could also negatively affect the ratings,
but we see this as a more remote scenario, given the favorable
market dynamics.

"An upgrade could occur if Grifols continues to deleverage while
committing to a tight financial policy, though we consider the
company's track record of external growth to be a constraining
factor. An upgrade would also be conditional on the company
improving its cash generation capacity following the substantial
investment plan it is committed to until 2020. Therefore, we view
an upgrade as unlikely in the next 12 months."



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


DOGUS HOLDING: S&P Retains 'B+' Issuer Credit Rating
----------------------------------------------------
S&P Global Ratings revised upward its Turkey national scale
ratings on Dogus Holding A.S. S&P said, "We had placed the
ratings under criteria observation (UCO) on June 25, 2018, after
the revision of our criteria on national scale ratings and
subsequent recalibration of the mapping table for Turkey. As a
result of our review, we have raised the national scale ratings
on Dogus Holding. At the same time, we have removed the UCO
identifier on these ratings. The ratings remain on CreditWatch
negative in line with the issuer credit rating."

These rating actions do not reflect any change in the fundamental
credit quality of the issuer or issues, which remains unchanged.
S&P's global scale issuer and issue credit ratings on Dogus
Holding are therefore not affected by the rating actions.

National scale ratings express S&P's opinion of the
creditworthiness of an issuer or a debt instrument relative to
other issuers and issues in a given country. The purpose is to
provide a rank ordering of credit risk within the country.

  Ratings List Upgraded; CreditWatch Action

                            To                 From
  Dogus Holding A.S.

   Long-Term Turkey
    National Scale Rating   trA+/Watch Neg/    trBBB+/Watch Neg/

   Short-Term Turkey
    National Scale Rating   trA-1              trA-2

  Ratings Unaffected

  Dogus Holding A.S.

   Issuer Credit Rating      B+/Watch Neg/B


NUROL INVESTMENT: Moody's Assigns B3 Global LT Issuer Rating
------------------------------------------------------------
Moody's Investors Service has assigned a first time B3 global
long-term issuer rating to Nurol Investment Bank (Nurolbank),
based in Turkey. At the same time, the rating agency also
assigned a b3 baseline credit assessment (BCA) and b3 adjusted
BCA, Counterparty Risk Assessments (CR Assessments) of B2(cr)/
NP(cr) as well as Counterparty Risk Ratings (CRR) of B2/NP.
National Scale issuer ratings (NSR) were assigned at Ba2.tr/TR-4
and CRR at Baa3.tr/TR-3. The national scale issuer and CRRs
ratings are under review for upgrade.

Nurolbank's b3 BCA and issuer ratings reflect the bank's solid
capitalisation and strong profitability. These are however
counterbalanced by: 1) the bank's young franchise with an
aggressive growth strategy, 2) lack of business diversification,
3) significant concentration risks and 4) significant dependence
on wholesale funding.

RATINGS RATIONALE

YOUNG FRANCHISE AND AGGRESSIVE GROWTH STRATEGY COMBINED WITH LACK
OF BUSINESS DIVERSIFICATION WEIGH ON THE STANDALONE PROFILE

The primary driver for Nurolbank's b3 BCA is the bank's young
franchise and aggressive growth strategy. While the bank was
established in 1999, it has only started developing its franchise
over the last four years with the appointment of the current
management team. Following their appointment, the bank has grown
significantly with a 46% average per annum loan growth during the
last three years. As such, Moody's assessment of Nurolbank
captures the short track record and the aggressive growth
strategy weighing on the standalone profile of the bank.
Additionally, the bank has a corporate focused loan book and this
high reliance (more than one-third) on a single business line for
its revenues indicates a lack of business diversification, which
could affect its ability to absorb unexpected shocks. As such,
Moody's makes a downward adjustment in the bank's standalone
profile to capture this lack of business diversification.

STRONGER THAN PEER ASSET QUALITY MODERATED BY HIGH CONCENTRATION
RISKS

The BCA assignment also captures Nurolbank's relatively strong
asset quality. The bank's gross non-performing loan (NPL) ratio
stood at around 0.3%, much lower than the Turkish banking system
average of 3%. The modest rise in NPL ratio from 0% in 2016 to
0.3% 2017 is due to exposure to a single corporate loan.
According to Moody's the relatively strong NPL ratio can be
explained by significant loan growth (46% on an average per annum
during the last 3 years) which reduces the NPL ratio (has a
denominator effect) but at the same time creates a large stock of
unseasoned loans which could add to future asset quality
challenges, particularly in a downward cycle. The rating agency
said that it expects the NPL ratio to increase over the next 12-
18 months.

Moody's assessment of the bank's strong asset quality is also
moderated by the bank's high sector concentration to financial
institutions and construction sector loans which represent around
34% and 21% of its loan book respectively, as of December 2017.
At the same time, Nurolbank has high borrower concentration, with
the top 20 borrowers representing more than 500% of the bank's
Tier 1 capital.

SOLID CAPITALISATION, SUPPORTED BY STRONG INTERNAL CAPITAL
GENERATION

The rating agency acknowledges the bank's solid capitalisation
with an adjusted tangible common equity as a percentage of risk-
weighted assets (RWAs) at 12.3% at December 2017 up from 11.1% as
of December 2016. The improvement in capitalisation was supported
by strong internal capital creation, with return on tangible
assets of 3.2% for the year 2017 combined with no dividend
payment for the last three years. Moody's expects Nurolbank
capital buffers to remain adequate despite the bank's rapid
expansion owing to strong internal capital generation. However,
because of the expanding nature of the Turkish banking market
coupled with Turkish lira volatility, Nurolbank will likely face
longer-term challenges due to higher foreign currency (primarily
US dollar) funding costs reducing internal capital creation and
the need to preserve or grow its market share.

HIGH PROFITABILITY LIKELY TO COME UNDER PRESSURE DUE TO HIGHER
FUNDING COSTS

The bank's return on average assets was strong at 3.2% for the
year 2017 when compared to 1.7% average for Turkish banking
system. Such high profitability is supported by the bank's cost-
to-income ratio of 31.8% which is lower than domestic peers.
Profitability in 2017 was also supported by an increase in net
interest income and a reduction of loan loss provisions
counterbalanced by an increase in funding costs. The rating
agency expects Nurolbank's profitability to decline over the
coming 12 to 18 months given pressure on the bank's net interest
margin due to the likely increase in funding costs and that
provisioning costs will increase owing to increase in problem
loans.

SIGNIFICANT RELIANCE ON SHORT-TERM WHOLESALE FUNDING WITH
RELATIVELY MODEST LIQUID ASSETS

Finally, the b3 BCA captures Nurolbank's significantly high
reliance on market funds, which stands at 66.2% of its tangible
banking assets. This is not entirely covered by liquid banking
assets that represent just 28.1% of tangible banking assets.
Nurolbank's high market funds ratio can be explained by its
investment-banking license, whereby it cannot collect deposits.
Moody's considers wholesale funding as potentially more volatile
and as such has higher refinancing risks. However, the bank's
significant shorter tenor loans provides some cushion over and
above the liquid assets and partially mitigates the headline
refinancing risk.

GOVERNMENT SUPPORT

The rating agency expects a low likelihood of government support
for Nurolbank, reflecting the bank's marginal market share in the
Turkish banking system, resulting in no uplift in the bank's B3
issuer ratings from the b3 BCA.

RATING OUTLOOK

The outlook on the long term global scale issuer ratings is
stable, driven by their resiliency at this rating level to the
challenging operating environment in Turkey.

However, the outlook on Nurolbank's ratings is under review for
upgrade. This reflects the bank's NSR ratings, which have been
placed under review for upgrade. This review for upgrade is
solely driven by the potential re-mapping of Turkish NSR as a
result of the review for downgrade on the ratings of Government
of Turkey.

  -- WHAT COULD MOVE THE RATINGS UP/DOWN

The global scale issuer ratings could be upgraded if the bank (1)
significantly reduces borrower and sector concentration; (2)
diversifies its business and reduces its reliance on corporate
banking business; and (3) significantly increases capital and
liquidity buffers.

The national scale ratings could be upgraded if the bank's global
scale issuer ratings (1) are upgraded while the sovereign ratings
remains stable (2) are stable while the sovereign ratings are
downgraded.

A downward pressure on Nurolbank's global scale issuer ratings
could develop as a result of (1) weakening of asset risk; (2)
deterioration of profitability; (3) a material reduction in the
bank's capitalisation; or 4) further deterioration of Turkey's
operating environment.

A downward pressure on Nurolbank's national scale ratings could
develop if the bank's global scale issuer ratings (1) are
downgraded while the sovereign ratings remain stable (2) are
stable while the sovereign ratings are upgraded.

LIST OF ASSIGNED RATINGS

Issuer: Nurol Investment Bank

Adjusted Baseline Credit Assessment, Assigned b3

Baseline Credit Assessment, Assigned b3

LT Counterparty Risk Rating, Assigned B2

ST Counterparty Risk Rating, Assigned NP

LT Counterparty Risk Assessment, Assigned B2(cr)

ST Counterparty Risk Assessment, Assigned NP(cr)

LT Global Issuer Rating, Assigned B3, Stable

ST Global Issuer Rating, Assigned NP

Assignments (placed on review for upgrade):

Issuer: Nurol Investment Bank

LT National Scale Issuer Rating, Assigned Ba2.tr

ST National Scale Issuer Rating, Assigned TR-4

LT National Scale Counterparty Risk Rating, Assigned Baa3.tr

ST National Scale Counterparty Risk Rating, Assigned TR-3

Outlook Actions:

Issuer: Nurol Investment Bank

Outlook, Rating Under Review



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


ATLAS RIGID: Moody's Assigns B2 CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family
rating (CFR) and a B2-PD probability of default rating (PDR) to
the German rigid plastic packaging manufacturer Atlas Rigid GmbH
("Coveris Rigid" or the "company"). Concurrently, Moody's has
assigned a B2 rating to the EUR317 million senior secured term
loan B due 2025 and to the EUR50 million senior secured revolving
credit facility (RCF) due 2024, and a Caa1 rating to the EUR70
million senior secured second lien term loan due 2026, all to be
issued by Atlas Packaging GmbH, a subsidiary of Atlas Rigid GmbH.
The outlook on all ratings is stable.

The proceeds from the first and second lien facilities, together
with EUR245 million of equity (EUR95 million in cash and EUR150
million in the form of a shareholder loan), will be used to
support the acquisition of Coveris Rigid by private equity firm
Lindsay Goldberg and to pay transaction fees. The capital
structure also includes a EUR50 million RCF, undrawn at close,
certain factoring arrangements and capital leases which will be
rolled over with the transaction. Coveris Rigid is currently a
division of Coveris Holdings S.A. (B3 stable).

This is the first time that Moody's has assigned a rating to
Coveris Rigid.

RATINGS RATIONALE

Moody's assignment of the B2 CFR to Coveris Rigid reflects (1)
the company's position as a leading pan European rigid plastic
converter with strong market share in dairy, but also in
foodservice with tumblers, in convenience food niches, and with a
significant involvement in the thermoformed detergent packaging
of Procter & Gamble in Europe benefitting from a well-invested
asset base of 18 sites across Western and Eastern Europe, and 1
in North America; (2) a moderately diversified customer base with
2,500 customers, the ten largest representing 39% of 2017 revenue
and long-standing relationships averaging 15 years with key
customers, although fairly concentrated within diary with Danone,
Arla and others, within spreads and in personal care with Procter
& Gamble; and (3) its presence in resilient end-markets such as
food and beverages representing 82% of 2017 revenue, although the
spreads segment is declining.

Conversely, the B2 rating is constrained by (1) Coveris Rigid's
smaller scale both by revenue and EBITDA in comparison to other
rated packaging peers such as RPC Group PLC (Baa3 stable) or
Berry Global Group Inc. (Ba3 stable) and its lower profitability
by EBITDA margin compared to peers of similar size such as Faerch
Plast Midco ApS (B3 stable); (2) its exposure to volatile raw
material and input prices, particularly plastic resins which
continue to rise, partially mitigated by pass-through clauses
present in two third of the contracted revenue albeit with a lag;
and (3) the highly fragmented and competitive nature of the
plastic packaging industry with ongoing pressure as evidenced by
historic 10-15% volume churn and customer losses, requiring
continued focus on innovation, product wins and cost control to
grow volumes and protect the profitability.

The rating is constrained by the high Moody's-adjusted leverage
of 6.8x at close pro forma for the transaction with future
deleveraging contingent on several areas of execution risk such
as the successful pass through of raw material price increases
occurred in 2017, the turnaround of the UK site and the
normalization of the North America operations, new contract wins
including short term growth projects to offset price pressure and
volume churn. Historically, projects represented a significant
growth driver for Coveris Rigid but at the same time constrained,
together with working capital swings, the free cash flow
generation of the company. The strategy remains risky because
specific customer projects in the business plan could be delayed,
cancelled or not materialize.

Moody's forecasts some EBITDA recovery in 2018 mainly from price
adjustments related to raw materials but slow growth thereafter
assuming the EU proposal will not affect the business during the
rating horizon. As a result, Moody's-adjusted leverage is
expected to fall toward 6.0x in 2018 and remain fairly stable
thereafter.

Moody's notes that there could be a potential adverse impact on
the business arising from the recent EU announcement regarding
the intention to ban the use of single use plastic containers or
reduce their consumption. The company does not have any products
in the EU banned list but around 5% by revenue are in the
consumption reduction targets list. The range of products
affected and the timing of implementation will however depend and
be determined by a EU Directive, followed by a decision in each
member state. Moody's also notes that the company has started raw
material substitution processes in order to comply with the EU
target to achieve 100% of plastic recyclability by 2030, by
focusing on a smaller amount of recyclable polymers.

Coveris Rigid is weakly positioned in the B2 category.

LIQUIDITY

Moody's considers Coveris Rigid's liquidity position to be
adequate for its near term requirements. This is underpinned by a
EUR50 million RCF, undrawn at close, positive free cash flow
albeit constrained by working capital requirements and project
based capital expenditures, and lack of debt amortisation until
2024 when the RCF matures. The company has access to certain
factoring arrangements, both on and off balance sheet, which
Moody's assumes will be renewed on an ongoing basis. The RCF has
a net leverage springing covenant tested only when drawings
exceed 35% of total commitment. Moody's anticipates large
headroom under this covenant in the next 12 to 18 months.

STRUCTURAL CONSIDERATIONS

The CFR has been assigned to Atlas Rigid GmbH, the top entity of
the restricted group which will produce the consolidated audited
accounts going forward. Using Moody's Loss Given Default (LGD)
methodology, the B2-PD PDR is aligned to the B2 CFR. This is
based on a 50% recovery rate, as is typical for transactions with
covenant-lite bank debt structure.

The B2 instrument rating assigned to the EUR317 million senior
secured term loan B due 2025 and the EUR50 million senior secured
RCF due 2024 are also in line with the CFR, reflecting relatively
limited size of the EUR70 million second lien, rated at Caa1. The
debt facilities will be secured by pledges over shares, certain
bank accounts and receivables and they will be guaranteed by all
material subsidiaries representing not less than 80% of the
EBITDA calculated on a non-consolidated basis. The first lien and
the RCF rank pari passu but ahead of the second lien upon
enforcement.

Moody's notes the presence of a EUR150 million shareholders loan,
which is treated as equity.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that the company will
recover part of the EBITDA from the exceptionally high resin
price volatility in 2017 and delever to below 6.0x over the next
12 to 18 months and it will be able to withstand the competitive
pressure and successfully replace churned volumes with new
contract wins or projects. The stable outlook also assumes that
the company will not lose any material customer, it will not
engage in material debt-funded acquisitions or shareholder
distributions and there will be no materially adverse regulatory
measures on plastic sustainability affecting the company within
the rating horizon.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure on the ratings is unlikely in the near term,
however it could develop if (1) the company improves its scale
and profitability, (2) its Moody-adjusted debt/EBITDA trends
sustainably below 5.0x; (3) its free cash flow to debt rises
above 5%; while (4) maintaining a good liquidity profile.

Negative pressure on the ratings could arise if (1) the company's
operating performance is under pressure as a result of increased
competition reflected in its EBITDA margins moving towards the
low-teens; (2) the company fails to delever below 6.0x within 12
to 18 months; or (3) the liquidity materially deteriorates.
Negative pressure will also arise in case of material debt-funded
acquisitions.

LIST OF AFFECTED RATINGS

Issuer: Atlas Rigid GmbH

Assignments:

Corporate Family Rating, Assigned B2

Probability of Default Rating, Assigned B2-PD

Outlook Actions:

Outlook, Assigned Stable

Issuer: Atlas Packaging GmbH

Assignments:

BACKED Senior Secured Bank Credit Facility, Assigned B2

BACKED Senior Secured 2nd lien Bank Credit Facility, Assigned
Caa1

Outlook Actions:

Outlook, Assigned Stable

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
May 2018.

Headquartered in Zell, Germany, Coveris Rigid is a producer of
rigid plastic packaging for food (82% of 2017 revenue) and non-
food (18%) applications within the consumer goods end markets.
The company offers an extensive range of products in a variety of
shapes and designs including containers & cups, trays, closures
and sheets. The company has a pan-European presence across 18
production sites and 3 sales offices geared towards Eastern
Europe, plus the North American operation.

In 2017, Coveris Rigid generated revenues of EUR558 million,
employing over 3,000 people with the largest sites located in
Poland and Hungary.


CONVIVIALITY: FRC to Probe KPMG's Audit of Financial Statements
---------------------------------------------------------------
Noor Zainab Hussain at Reuters reports that Britain's accounting
watchdog is investigating KPMG's audit of drinks firm
Conviviality's financial statements, weeks after highlighting an
"unacceptable deterioration" in the auditor's work with top
British firms.

According to Reuters, KPMG denied any shortcomings in its audit
of Conviviality, which entered administration in April.  The
Financial Reporting Council (FRC) is probing Conviviality's
financial statements for the year ended April 2017, Reuters
discloses.

"We believe we conducted our audit appropriately and will co-
operate fully with the investigation," a spokeswoman for KPMG
said in a statement emailed to Reuters on July 3.

The FRC also said it was looking into the preparation and
approval of Conviviality's financial statements and other
financial information, Reuters notes.

Conviviality was Britain's largest franchised off-license and
convenience chain, operating stores under the Bargain Booze and
Wine Rack brands.

The KPMG spokeswoman, as cited by Reuters, said the company had
experienced margin weakness at the start of 2018 and failed to
allow for a GBP30 million tax bill in its cash flow forecast.

It subsequently failed to raise GBP125 million in an emergency
cash call, Reuters notes.

"Our audit of the company's financial statements for the year
ended April 30, 2018, had not yet commenced at the point which
administrators were appointed," Reuters quotes KPMG as saying.

FRC said last month that KPMG, one of the world's "Big Four"
accounting firms, had shown an "unacceptable deterioration" in
how it audits top British firms and will be the first to undergo
special supervision, Reuters recounts.


POUNDWORLD: Founder Frustrated Over Administration
--------------------------------------------------
Tim Gavell at Blackpool Gazette reports that the founder of
Poundworld has ripped into the retailer's administrators, saying
his bid to save thousands of jobs has been ignored.

Chris Edwards, who founded Poundworld in 1974, wants to save
around 180 stores, safeguarding 3,000 jobs, but said "the whole
administration process has been handled badly," according to
Blackpool Gazette.

Poundworld collapsed into administration on June 11, putting
5,100 jobs at risk, the report notes.

The report relays that administrators at Deloitte have been
looking for a buyer, but have so far failed and have launched
closing-down sales in Poundworld's stores.  The firm which had
stores in Bank Hey Street and in Preston said it had been hit by
high product cost inflation, decreasing footfall, weaker consumer
confidence and an increasingly competitive discount retail
market, the report says.

The report notes that Mr. Edwards said: "I contacted the
administrator four weeks ago and was just paid lip service until
everyone else they were talking to about saving Poundworld had
walked away.  The process has taken so long that the shops are
now holding closing-down sales and stock isn't being replenished,
so, with every day, the task of saving the business becomes more
difficult."


RUNWILD MEDIA: Goes Into Administration After 13 Years
------------------------------------------------------
Press Gazette reports that luxury lifestyle magazine publisher
Runwild Media Group has gone into administration, closing six out
of seven of its London-based monthly titles.

Runwild Media Group managing director Eren Ellwood told Press
Gazette declining sales and advertising revenues were behind the
closure.

Although he would not confirm exactly how many staff are facing
redundancy as a result, Press Gazette understands it could be as
many as 80 people, of which some 20 are editorial, according to
Press Gazette.

RMG printed six free luxury titles including City magazine,
Canary Wharf, Mayfair, Belgravia, Kensington and Chelsea and the
Notting Hill and Holland Park magazines.

The majority of the titles published their last editions this
month, however Canary Wharf is expected to carry on through
another publisher.

Press Gazette understands staff were told the group would be
going into administration only two days before and were asked to
collect their belongings and leave the office in Canary Wharf,
London.

The report notes that Eren Ellwood, former RMG managing director,
said: "After almost 14 years of publishing free luxury magazines
in London, Runwild Media, the printed media arm of Runwild Media
Group, has been put into administration.

"Over the past 24 months, the printed media industry in general
has continued to struggle, both in terms of copy sales and
advertising revenue."

The report relays that he added: "Due to our financial
responsibilities and a commitment to stay relevant in these
changing times we have had to review our approach regularly.

"As of May the decision was made to cease publishing our seven
regional publications."

He confirmed there were no plans to continue publishing any of
the titles owned by Runwild Media, the report notes.

However, Mr. Ellwood said: "It is the responsibility of the
administrators to seek out potential buyers of the titles. Canary
Wharf Magazine is a contract publication and will continue to be
published."

Ellwood said he could not go into detail on staff redundancies
while the company was still in the administration process.

An NUJ spokesperson said the union had been assisting members
affected by RMG's closure, the report relays.

The report notes that they said: "Anyone owed money should
contact the administrators Chris Haggitt and Luke Wilson at FRP
Advisory LLP as soon as possible to register a claim."

Runwild Media, which launched in 2005, described itself as a
"family-run company" on its website.

Its Canary Wharf and City Magazines boasted circulation figures
of 75,000 and 74,000 respectively, with the company printing an
average of 4.1m copies of its seven luxury titles a year,
according to a 2014 Runwild Media Group readership Survey, the
report says.

In the wake of Runwild Media's closure, it has been relaunched by
Ellwood as Luxury London Media, the report notes.

The new media group incorporates the Luxury London website, which
was previously run by the company, and will also include the
launch of new print magazine Luxury London, the report adds.


TESCO PLC: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR
-----------------------------------------------------------
Moody's Investors Service changed to positive from stable the
outlook on the Ba1 corporate family rating (CFR) of the UK's
largest retailer Tesco plc. At the same time, Moody's affirmed
Tesco's CFR, as well as its Ba1-PD probability of default rating
and the Ba1 senior unsecured long-term ratings and Not Prime
short-term ratings of Tesco and its guaranteed subsidiaries.

"We've changed our outlook on Tesco's ratings to positive as we
expect further improvements in its credit metrics, driven by
continued momentum in operating performance and debt reduction,"
says David Beadle, a Moody's Vice President - Senior Credit
Officer and lead analyst for Tesco.

"However, the challenging competitive environment, not least in
respect of the planned Sainsbury's and Asda tie-up, could stall
or reverse Tesco's improving credit profile," Mr. Beadle added.

RATINGS RATIONALE

Moody's outlook change and rating affirmation primarily reflects
Tesco's improved financial profile. Tesco has recorded strong
growth in its underlying operating profit over the last two years
as well as a material reduction in adjusted debt over the course
of the last year. The company's Moody's-adjusted EBITDA increased
to GBP3,677 million in the fiscal year ended 24 February 2018
(FY17/18), a 12% increase on the prior year and 25% higher than
two years ago. Meanwhile Moody's-adjusted gross debt fell to
GBP18.7 billion from over GBP26 billion a year earlier. As such,
Moody's-adjusted gross leverage, measured as gross adjusted debt
to adjusted EBITDA, has fallen to 5.1x at the end of FY17/18,
from around 8.0x at the end of each of the two preceding fiscal
years.

Tesco's recent operational and financial progress has been
achieved in a highly challenging competitive environment for
established participants in the UK's grocery market.

In this respect, Moody's expects the expansion of the German
discounters, Aldi and Lidl, whose business model resonates with
consumers' desire for maximum value and convenience, will
continue in the years ahead. In addition, the rating agency
believes the planned tie-up between Sainsbury's and Asda will, if
approved, increase the scope for these grocers to invest in
price. In turn, this will limit the scope for further margin
improvements for Tesco as, to remain competitive, more price
investment will be necessary than would otherwise have been the
case.

However, Moody's does not expect the Sainsbury's and Asda deal to
complete for more than a year. Accordingly, it will be some time
beyond that before there is any potential for a related negative
impact on Tesco's credit quality trajectory.

In the meantime, Moody's expects that the company will continue
to record positive like-for-like sales growth and for its
earnings to continue to grow, fuelled by ongoing cost savings in
the core grocery business and a contribution from the recent
acquisition of Booker, including cost synergies. In addition, the
rating agency expects that Tesco will further reduce its funded
debt over the course of FY18/19, due to a combination of a recent
prepayment via tender offer as well as scheduled debt maturities.
As such, Moody's expects that the company's gross adjusted
leverage will fall towards 4.5x, one of the quantitative triggers
for upward rating pressure.

The rating agency states that from the publication of Tesco's
FY18/19 interims its adjustment to debt in respect of leases will
include the potential future lease commitments beyond break
clauses in certain leases. Moody's believes - pending adoption of
IFRS16 from FY19/20 - this will most accurately reflect the
company's lease liabilities. If this change had been made
retrospectively FY17/18 Moody's-adjusted gross leverage would
have been 5.4x versus 5.1x.

RATIONALE FOR THE POSITIVE OUTLOOK

The change to a positive outlook reflects improvements in Tesco's
operational performance and credit metrics achieved over recent
months and Moody's belief that further improvements are possible
over the course of the next 12-24 months, notwithstanding ongoing
challenges in the competitive environment.

WHAT COULD CHANGE THE RATING UP/DOWN

Continued momentum in operational performance such that positive
like-for-like sales continue to be recorded, and the underlying
operating profit margin is maintained at or above 3%, could lead
to an upgrade. Quantitatively this would translate to adjusted
(gross) debt/EBITDA below 4.5x on a sustained basis and an
retained cash flow (RCF)/net debt ratio sustainably in the mid-
teens. An upgrade would also be contingent on a commitment to a
conservative financial policy.

Conversely, a return to a stable outlook at Ba1, or further
negative rating pressure would be likely if the company's
operating performance and/or credit metrics do not continue to
improve. In leverage terms, the prospect of adjusted debt/EBITDA
ratio being above 5.5x beyond the next year could lead to
downward rating pressure, while the rating would also face
downgrade pressure if Tesco's strong underlying liquidity were to
weaken.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail
Industry published in May 2018.

COMPANY PROFILE

Tesco plc is a FTSE 100 company with a market capitalisation of
around GBP26 billion, as of June 2018. With GBP56.4 billion of
revenue from retail operations for the fiscal year to 24 February
2018, Tesco is Europe's second-largest rated retailer, after
Carrefour S.A. ((P)Baa1 stable), and the UK's leading food
retailer. The company's share of the UK grocery market is
approximately 28%.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Tesco Corporate Treasury Services plc

Backed Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1

Backed Other Short Term, Affirmed (P)NP

Backed Senior Unsecured Regular Bond/Debenture, Affirmed Ba1

Issuer: Tesco Plc

LT Corporate Family Rating, Affirmed Ba1

Probability of Default Rating, Affirmed Ba1-PD

Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1

Senior Unsecured Regular Bond/Debenture, Affirmed Ba1

Commercial Paper, Affirmed NP

Other Short Term, Affirmed (P)NP

Issuer: Tesco Treasury Services PLC

Backed Senior Unsecured Commercial Paper, Affirmed NP

Outlook Actions:

Issuer: Tesco Corporate Treasury Services plc

Outlook, Changed To Positive From Stable

Issuer: Tesco Plc

Outlook, Changed To Positive From Stable


WEST BROMWICH BUILDING: Moody's Assigns 'Ba2' CCR
-------------------------------------------------
Moody's Investors Service assigned Ba2 long-term local- and
foreign-currency Counterparty Risk Ratings (CRRs) to West
Bromwich Building Society (West Brom), as well as Not Prime (NP)
short-term local- and foreign-currency CRR. At the same time,
Moody's affirmed West Brom's long-term local- and foreign-
currency deposit ratings of Ba3, its short-term local- and
foreign-currency deposit ratings at NP, and the ratings on its
Permanent Interest Bearing Shares (PIBS) at Ca(hyb). The rating
agency also downgraded West Brom's Counterparty Risk Assessment
(CR Assessment) to Ba1(cr)/NP(cr) from Baa3(cr)/Prime-3(cr).

The outlook on the long-term local- and foreign-currency deposit
ratings remains positive.

RATINGS RATIONALE

Moody's Counterparty Risk Ratings (CRRs) are opinions of the
ability of entities to honour 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 honoured. 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.

The Ba2 CRR takes into account (1) West Brom's ba3 BCA; (2) low
loss-given-failure under Moody's advanced loss given failure
analysis; and (3) a low probability of government support.

The affirmation of West Brom's Ba3 long-term local- and foreign-
currency deposit rating continues to reflect (1) the Society's
BCA of ba3; (2) moderate loss-given-failure under Moody's
advanced Loss Given Failure analysis; and (3) a low probability
of government support.

West Brom's BCA of ba3 continues to reflect its (1) good and
stable capitalisation following the LME; (2) solid retail funding
base; and (3) comfortable liquidity position. The BCA also takes
into account the Society's (1) high stock of problem loans,
mainly driven by the declining legacy commercial lending
portfolio; and (2) weak but improving profitability and
efficiency levels.

Moody's also downgraded the Society's CR assessment to Ba1(cr)
from Baa3(cr), reflecting the decreased subordination protecting
West Brom's counterparty obligations following a reduction in
deposits and the redemption of 88% of its permanent interest
bearing shares (PIBS) as part of the 10 April 2018 conclusion of
West Brom's liability management exercise (LME). The deposit
reduction follows the GBP350 million Residential Mortgage-Backed
securitisation (RMBS) issuance in January 2018 and GBP461 million
total Term Funding Scheme (TFS) drawings at February 28, 2018,
the scheme closing date, of which GBP237 million was drawn in the
Society's latest fiscal year.

Based on West Brom's liability structure as of March 31, 2018,
adjusted for the outcome of the LME, bail-in-able liabilities
subordinate to counterparty obligations totalled 9.0% of tangible
banking assets, providing a cushion against default in the form
of junior deposits, Tier 2 notes, remaining PIBS, and residual
equity. This level of subordination corresponds to two notches of
uplift for the CR Assessment from the Society's baseline Credit
Assessment (BCA) of ba3.

CR Assessments are opinions of how counterparty obligations are
likely to be treated if a bank fails, and are distinct from debt
and deposit ratings in that they: (1) consider only the risk of
default rather than both the likelihood of default and the
expected financial loss suffered in the event of default; and (2)
apply to counterparty obligations and contractual commitments
rather than debt or deposit instruments. Moody's CR Assessment
captures the probability of default on certain senior
obligations, rather than expected loss. Therefore, the rating
agency focuses purely on subordination and take no account of the
volume of the instrument class.

The CR Assessment for West Brom does not benefit from any
government support, in line with Moody's support assumptions on
the deposit ratings, given its small, simple balance sheet and
lack of systemic importance.

The affirmation of the Ca(hyb) PIBS rating reflects that the
agency's view that West Brom is unlikely to pay interest to the
remaining PIBS holders over the next 12-18 months and that the
earliest the notes can be called is 2021.

WHAT COULD CHANGE THE RATINGS UP

West Brom's BCA could be upgraded as a result of (i) continued
improvements in its asset quality metrics; (ii) strengthened
capitalisation; and/or (iii) a track record of stable
profitability, demonstrating a sustainable business model. A
positive change in the Society's BCA would likely lead to an
upgrade of its deposit ratings. West Brom's deposit ratings could
also be upgraded if, after regaining access to unsecured
wholesale markets, the Society were to issue significant amounts
of senior unsecured debt and/or subordinated long-term debt,
reducing loss-given-failure for depositors.

The PIBS could be upgraded if West Brom resumed interest payments
or the prospects for recovery improved significantly.

WHAT COULD CHANGE THE RATINGS DOWN

West Brom's BCA could be downgraded if the Society's asset
quality or capital position deteriorated. A downward movement in
the BCA of the Society would result in a downgrade to its deposit
ratings. West Brom's deposit ratings could also be downgraded in
response to a reduction in the volume of debt or deposits that
could be bailed in, which would increase loss-given-failure for
depositors.

LIST OF AFFECTED RATINGS

Issuer: West Bromwich Building Society

Affirmations:

Long-term Bank Deposits (Local and Foreign Currency), affirmed
Ba3 Positive

Short-term Bank Deposits (Local and Foreign Currency), affirmed
NP

Preferred Stock Non-cumulative (Local Currency), affirmed Ca(hyb)

Downgrades:

Long-term Counterparty Risk Assessment, downgraded to Ba1(cr)
from Baa3(cr)

Short-term Counterparty Risk Assessment, downgraded to NP(cr)
from P-3(cr)

Assignments:

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

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

Outlook Action:

Outlook remains Positive


* UNITED KINGDOM: Retail Industry Faces "Make or Break Moment"
--------------------------------------------------------------
Lucy Burton at The Telegraph reports that the number of companies
going bust is expected to jump this year as the high street
crisis deepens, and other parts of the economy begin to struggle.

According to The Telegraph, turnaround specialist Alvarez and
Marsal has warned that a prolonged bout of dismal trading has
left the retail industry facing a "make or break" moment.

Poundworld, Maplin and Toys R Us have plunged into
administration, while House of Fraser, New Look, Mothercare and
Carpetright have implemented life-saving restructurings, The
Telegraph relates.

A consumer spending squeeze has also triggered a painful crunch
in the restaurant sector, forcing chains -- including
Carluccio's, Byron, Jamie's Italian, Strada and Prezzo to come up
with rescue plans, The Telegraph notes.



                            *********

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

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

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


                            *********


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

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

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

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