/raid1/www/Hosts/bankrupt/TCREUR_Public/180705.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, July 5, 2018, Vol. 19, No. 132


                            Headlines


C Y P R U S

HELLENIC BANK: Fitch Puts 'B' Long-Term IDR on Watch Positive


F R A N C E

DELACHAUX SA: S&P Affirms 'B+' Long-Term Issuer Credit Rating


G E O R G I A

BANK OF GEORGIA: Moody's Assigns Ba2 LT Counterparty Risk Rating


G E R M A N Y

SPRINGER NATURE: Moody's Confirms B2 CFR, Outlook Stable
SPRINGER NATURE: S&P Assigns 'B' Long-Term Issuer Credit Rating


I R E L A N D

DORCHESTER PARK: Moody's Assigns B3 Rating to Class F-R Notes
DORCHESTER PARK: S&P Assigns B- Rating to Class F-R Notes
SAMMON CONTRACTING: Gets 98% of Payments for School Building Work


I T A L Y

ASR MEDIA: S&P Lowers Loan Rating to 'BB', Outlook Stable


K A Z A K H S T A N

NURBANK JSC: S&P Affirms B-/B Issuer Credit Ratings, Outlook Neg.


N E T H E R L A N D S

IGM RESINS: S&P Assigned Prelim. 'B' ICR, Outlook Stable


P O R T U G A L

NOVO BANCO: Winterbrook Capital Files Claim Over Bond Default


R U S S I A

PETROPAVLOVSK PLC: S&P Lowers LT Issuer Credit Rating to 'B-'
SAFMAR FINANCIAL: S&P Assigns 'B+/B' Issuer Credit Ratings
URALKALI: S&P Alters Outlook to Stable & Affirms 'BB-' ICR


S P A I N

BBVA RMBS 14: S&P Raises Class B Notes Rating to BB(sf)


U N I T E D   K I N G D O M

AMIGO LOANS: S&P Affirms B+ Issuer Credit Rating, Outlook Stable
BHS GROUP: Accounting Watchdog Urged to Publish Audit Report
BOPARAN HOLDINGS: S&P Lowers ICR to 'CCC+', Outlook Negative
CARILLION PLC: Unite Launches Legal Action Over Redundancies
CARLUCCIO'S: Shuts Down Chelmsford Restaurant Following CVA

HIKMA PHARMACEUTICALS: S&P Affirms 'BB+' ICR, Outlook Stable
IPH-BRAMMER HOLDINGS: S&P Alters Outlook to Neg. & Affirms B ICR
INOVYN LTD: S&P Affirms 'BB-' Rating, Outlook Stable
LEHMAN BROTHERS EUROPE: Scheme of Arrangement Takes Effect
LEHMAN BROTHERS HOLDINGS: July 27 Proofs of Debt Deadline Set

MABEL TOPCO: S&P Alters Outlook to Negative & Affirms 'B' ICR
TP ICAP: Moody's Affirms Ba1 Corp. Family Rating, Outlook Stable


X X X X X X X X

* S&P Assigns Various RCRs on 24 European Banking Groups


                            *********



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C Y P R U S
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HELLENIC BANK: Fitch Puts 'B' Long-Term IDR on Watch Positive
-------------------------------------------------------------
Fitch Ratings has placed Hellenic Bank Public Company Limited's
(HB) Long-Term Issuer Default Rating (IDR) of 'B' and Viability
Rating (VR) of 'b' on Rating Watch Positive (RWP). Fitch has also
affirmed HB's Short-Term IDR at 'B'. Other ratings of HB are
unaffected.

The rating action follows the announcement on June 25, 2018 that
HB signed an agreement with Cyprus Cooperative Bank Ltd (CCB) to
acquire certain assets and liabilities of CCB. HB will acquire
total assets of EUR10.3 billion comprising mainly loans (EUR4.6
billion net), Cyprus government bonds (EUR4.1 billion) and cash
(EUR1.6 billion), as well as customer deposits of EUR9.7 billion.

KEY RATING DRIVERS

The RWP reflects Fitch's views that the acquisition will overall
be positive for HB's credit profile through a significantly
strengthened franchise in Cyprus, improved asset quality and
better longer-term profitability prospects. The still weak quality
of the combined loan book and high capital encumbrance by
unreserved problem loans by international standards, as well as
significant execution risks related to the integration of a
balance sheet that is roughly 1.5x HB's current size, mean that
any upgrade at this stage is likely to be limited to one notch.

The combined entity will become the second-largest bank in Cyprus
after Bank of Cyprus Public Company Limited (BoC, B-/Stable/b-)
with estimated market shares in performing loans and deposits of
over 20% and over 30% respectively. Fitch believes that this will
improve HB's pricing power and would be positive for the bank's
profitability over the longer term. In the shorter term, HB could
benefit from a repricing of the acquired deposit base (which is on
average 80bp more expensive than HB's) but any repricing is likely
to be gradual to manage potential deposit outflows. Overall the
bank's business mix will shift towards servicing retail clients as
opposed to the more corporate and SME focused franchise that HB
has at present.

The transaction will improve the quality of HB's loan book. The
ratio of non-performing exposures (NPEs, EBA definition) to gross
loans in the acquired loan book (14%) was significantly below HB's
52% at end-March 2018. The NPE ratio for the combined entity would
be about 33%. In addition, the transaction will include an asset
protection scheme (APS), ultimately backed by the Republic of
Cyprus (BB+/Positive), whereby HB will be protected against 90% of
losses on the covered loan portfolio.

The APS is expected to include all NPEs (EUR0.5 billion net),
performing exposures that HB views as higher-risk (about EUR1
billion) and some other performing loans (EUR1.1 billion). In
total EUR2.6 billion or 56% of the acquired net loans will be
within the scope of the APS. Excluding the part of the acquired
NPEs covered by the APS, the NPE ratio for the combined entity
would be around 25%, which is however still high compared with
international peers.

HB's ratings are supported by the high quality of the bank's other
earning assets, in particular a large placement with the ECB
(EUR2.2 billion at end-March 2018 or around 30% of total assets).
In the combined entity, the share of cash and equivalents will
reduce to below 25% of assets, while exposure to Cypriot
government bonds will increase to 27% of assets (from 7% at HB at
end-March 2018), although about a third of the bonds will mature
before end-2019. Fitch believes that the reduction of risk in the
loan book offsets the slight weakening of the quality of HB's
other earning assets.

As part of the transaction HB will be required to raise EUR150
million of equity (about a third of end-March 2018 total equity).
The bank has reportedly secured EUR100 million split equally
between one of the existing shareholders and an external investor.
The capital increase is expected to take place in 4Q18. In
addition, HB's capital could benefit from the difference between
the EUR74 million purchase price and EUR247 million estimated net
asset value of the acquired balance sheet. HB expects that post-
transaction, its phased-in common equity Tier 1 (CET1) ratio will
be above its medium-term target of 14% (end-March 2018: 13.9%).

Despite the capital increase, capital encumbrance by unreserved
NPEs and foreclosed real estate is likely to remain high by
international standards, limiting upside for the ratings. Fitch
expects that excluding the portion of NPEs backed by the APS,
unreserved NPEs and foreclosed real estate will remain above 100%
of the fully-loaded CET1 capital, and are likely to be close to
about 140%, depending on the final net value of acquired assets
(end-March 2018: about 220% of fully-loaded CET1 capital).

Post-acquisition, the gross loans/deposits ratio for HB will fall
to below 60%, from about 70% at end-March 2018. The quality of the
deposit base will likely improve as the share of domestic retail
deposits will increase, and the share of more confidence-sensitive
non-resident deposits will decrease to below 20% of total deposits
(from around half at end-2017). Fitch expects that liquidity will
remain a rating strength as about 25% of assets will be in the
form of cash and central bank placements.

RATING SENSITIVITIES

Fitch will likely resolve the RWP and upgrade HB's Long-Term IDR
and VR upon the completion of the transaction, including the
completion of the capital increase by HB (expected no earlier than
4Q18), provided that the final terms do not materially deviate
from what has been disclosed so far. If the acquisition does not
go through, the ratings are likely to be affirmed.


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


DELACHAUX SA: S&P Affirms 'B+' Long-Term Issuer Credit Rating
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term issuer credit
rating on France-based Delachaux S.A.

S&P said, "We also affirmed our 'B+' rating on the company's
senior secured term loan and revolving credit facility (RCF). The
recovery rating is '4', indicating our expectation of average
recovery (rounded estimate: 40%) for debtholders in the event of a
default.

"At the same time, we removed the ratings from CreditWatch where
we had placed them with positive implications on June 12, 2018."

The rating affirmation follows Delachaux's recent announcement
that it has suspended its planned IPO and refinancing. CVC Capital
Partners (CVC) and Caisse de dÇpìt et placement du QuÇbec (CDPQ;
AAA/Stable/A-1+) have announced that the Delachaux family and CDPQ
have entered into an exclusivity agreement to acquire CVC Capital
Partners Fund V's stake in the Delachaux Group. S&P understands
that the Delachaux family may buy some residual shares from CVC to
allow the family to increase its controlling stake to at least
50.1%. At deal completion, CVC will exit completely Delachaux's
share capital and will not be subject to any lockup period.

S&P said, "Because of the IPO and refinancing cancellation, we no
longer expect the company to reduce debt and smooth its debt
maturity profile. We believe that, at year-end 2018, Delachaux's
debt to EBITDA will be around 6x and FFO to debt will remain at
8.5%-9.5%. In these figures, we no longer include in our debt
calculation the preferred equity certificates (PEC) at Financiäre
Danube, Delachaux's shareholder, which is ultimately owned by CVC,
and we do not include the company's cash in hand. This compares
with our former expectation of stronger debt metrics after the
IPO, with pro forma funds from operations (FFO) to debt increasing
to 13%-15% at year-end 2018 from 6%-8% in 2017, and pro forma the
IPO debt to EBITDA falling below 4x, compared with 7x-9x the year
before.

"Moreover, the change of the ownership structure, at this stage,
doesn't necessarily imply more clarity on the company's future
strategy, financial policy, and governance. We expect these
elements will be addressed over the coming months among the
Delachaux family and CDPQ. For the time being, we're incorporating
in our base case a dividend payout of 40%, and small bolt-on
acquisitions in line with the IPO documentation offer, but we
could reverse our assumptions when the new shareholders clarify
the group's strategy.

"Under our base case, we forecast Delachaux will maintain adjusted
EBITDA margins of 14%-15% in 2018, compared with 14.8% reported in
2017.

"The stable outlook reflects our expectation that Delachaux's
adjusted EBITDA margin will remain at 14%-15%, supported by mild
revenue improvements, while FFO to debt will remain around 10%
over the coming 12 months. The stable outlook is also predicated
on Delachaux maintaining a well-balanced financial policy and
governance.

"We could envisage a positive rating action if Delachaux redefined
its capital structure, such that debt to EBITDA moved sustainably
below 5x while FFO to debt was firmly above 12%. An upgrade would
also be contingent on a track record of prudent financial policy
and governance under the new ownership structure.

"We could lower the ratings if Delachaux's EBITDA margin declined
to about 12%, free operating cash flow (FOCF) dropped below EUR20
million, and cash interest coverage weakened to less than 2.5x.
Significant debt-funded acquisitions and increased dividends or
other shareholder distributions that put pressure on FOCF could
also trigger a downgrade."



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G E O R G I A
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BANK OF GEORGIA: Moody's Assigns Ba2 LT Counterparty Risk Rating
----------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
(CRR) to JSC Bank of Georgia, JSC TBC Bank and Liberty Bank JSC.

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

RATINGS RATIONALE

In assigning CRRs to the banks subject to this rating action,
Moody's starts with the banks' adjusted Baseline Credit Assessment
(BCA) and uses the agency's basic Loss-Given-Failure (LGF)
approach which is applied to banks in jurisdictions without
operational resolution regimes. For these banks Moody's believes
that CRR liabilities have a lower probability of default than the
bank's deposits and any senior unsecured debt, where applicable,
as they will more likely be preserved in order to minimize banking
system contagion, minimize losses and avoid disruption of critical
functions. For this reason, Moody's assigns the CRR, prior to
government support, one notch above the adjusted BCA.

Furthermore for these banks, Moody's considers the likelihood of
government support for CRR liabilities to be in line with Moody's
support assumptions on deposits and any senior unsecured debt,
where applicable, that can potentially result in additional
notches of uplift from their respective adjusted BCAs, reflecting
each bank's importance to the domestic banking system. The CRR
liabilities will not benefit from government support uplift if the
CRR, prior to government support, is already at or above the
rating level of the Government of Georgia (Ba2 stable).

What Could Change the Rating Up/Down

The CRR may be upgraded if there is a strengthening in banks'
operating environment or financial fundamentals in a way that will
lead to an upgrade of their adjusted BCA, or, if Moody's revises
upwards its assessment of authorities' willingness to provide
support, or, if Moody's revises upwards its assessment of the
government's capacity to provide support, captured by an upgrade
in the sovereign rating.

The CRR may be downgraded if there is a weakening in banks'
operating environment or financial fundamentals in a way that will
lead to a downgrade of their adjusted BCA, or, if Moody's revises
downwards its assessment of authorities' willingness to provide
support, or, if Moody's revises downwards its assessment of the
government's capacity to provide support, captured by a downgrade
in the sovereign rating or related ceilings.

The CRR may also be impacted if Georgia, where the banks operate
in, implements an operational resolution regime.

LIST OF AFFECTED RATINGS

Issuer: JSC Bank of Georgia

Assignments:

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

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

Issuer: JSC TBC Bank

Assignments:

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

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

Issuer: Liberty Bank JSC

Assignments:

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

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



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G E R M A N Y
=============


SPRINGER NATURE: Moody's Confirms B2 CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service, has confirmed the B2 corporate family
rating (CFR) and B2-PD probability of default ratings (PDR) of
Springer Nature One GmbH as well as the B2 ratings on the senior
secured facilities at both Springer Nature Deutschland GmbH
(formerly Springer Science+Business Media Deutschland Gmb) and
Springer Nature Three GmbH (formerly Springer Science+Business
Media GmbH). The outlook on the ratings is stable.

The rating confirmation concludes the review for upgrade that had
been initiated on April 27, 2018.

"We are confirming Springer Nature's B2 ratings with a stable
outlook given that the company has postponed its IPO plans
indefinitely due to market conditions," says Christian Azzi, a
Moody's Assistant Vice President and lead analyst for Springer
Nature. "Without the expected deleveraging from the IPO proceeds,
Springer Nature's adjusted debt/EBITDA will remain at around 5.5x
for 2018, broadly flat when compared with 2017".

RATINGS RATIONALE

The ratings confirmation follows Springer Nature's announcement
that it had postponed its IPO due to market conditions. The
company had planned on using part of the IPO proceeds to reduce
the amount of outstanding bank loans to EUR2.01 billion from
EUR3.01 billion. This would have led to a Moody's adjusted
leverage for 2017 (pro-forma) falling to around 4x from 5.5x. In
the absence of a clear indication as to when the IPO could occur,
Moody's has concluded the review for upgrade initiated at the time
of the initial announcement and confirmed Springer Nature's
ratings at B2 with a stable outlook.

Springer Nature's B2 CFR reflects the company's (1) solid and
defensible market positions; (2) steady historical organic revenue
growth and the must-have nature of the company's core product
offering; (3) high portion of predictable subscription-based
revenue, with high renewal rates; (4) strong growth in Open Access
journals business.

The B2 CFR also reflects the company's (1) high Moody's adjusted
leverage of 5.5x at year end 2017; (2) exposure to emerging
markets, which are more prone to volatility in academic spending;
(3) limited free cash flow generation; and (4) smaller scale
relative to other global publishing peers.

Moody's notes that in preparation for the IPO, the company changed
its reporting entity to Springer Nature AG & Co KGaA, the ultimate
100% parent of the previous reporting entity, Springer SBM One
GmbH, the top company within the restricted group and the entity
at which the CFR is assigned. Given consolidated accounts for
Springer Nature One GmbH will no longer be produced, the
maintenance of the CFR at that entity assumes that Moody's will
receive adequate reconciliatory information to continue monitoring
that entity's financial performance.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on Springer's ratings reflects Moody's
expectations that the company's 2018 performance will remain
broadly stable and that Springer's Gross debt/EBITDA (as adjusted
by Moody's) will remain within the guidance for the rating
category of below 6.0x.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure could be exerted on the rating if Springer Nature
(1) fully realizes its synergies such that it achieves sustained
revenue growth in mid-single-digit percentage terms; (2) reduces
its leverage to below 5.0x gross debt to EBITDA (as adjusted by
Moody's) on a sustainable basis; and (3) generates improved free
cash flow (as adjusted by Moody's after capital expenditure and
dividends) on a sustainable basis.

Downward pressure could be exerted on the rating should (1) the
company's leverage remain sustainably above 6.0x gross debt to
EBITDA (as adjusted by Moody's); (2) a material deterioration
occur in its operating performance; (3) the company generate weak
free cash flows on a sustainable basis; and/or (4) any factors
that can have a negative impact on the company's liquidity emerge.

LIST OF AFFECTED RATINGS

Confirmations:

Issuer: Springer Nature One GmbH

Corporate Family Rating, Confirmed at B2

Probability of Default Rating, Confirmed at B2-PD

Affirmations:

Issuer: Springer Nature Deutschland GmbH

Senior Secured Bank Credit Facility, Affirmed B2

BACKED Senior Secured Bank Credit Facility, Affirmed B2

Issuer: Springer Nature Three GmbH

Senior Secured Bank Credit Facility, Affirmed B2

Outlook Actions:

Issuer: Springer Nature One GmbH

Outlook, Changed To Stable From Rating Under Review

Issuer: Springer Nature Deutschland GmbH

Outlook, Remains Stable

Issuer: Springer Nature Three GmbH

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Berlin, Springer Nature is a leading global
research, educational and professional publisher formed in May
2015 as a result of the merger of Springer Science+Business Media
(owned by funds advised by BC Partners) and the majority of
Holtzbrinck-owned MSE, namely Nature Publishing Group, Palgrave
Macmillan and the global businesses of Macmillan Education. The
company is 53% owned by Holtzbrinck, a leading well-established
global media business, and 47% by funds advised by BC Partners. In
2017, the company reported revenue of EUR1.64 billion and EBITDA
of EUR521 million.


SPRINGER NATURE: S&P Assigns 'B' Long-Term Issuer Credit Rating
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to German based Springer Nature AG & Co. KGaA, parent of the
Springer Nature group. The outlook is positive.

S&P is withdrawing its long-term issuer ratings on the former
parent entity, Springer SBM One Gmbh.

S&P said, "At the same time, we are affirming our 'B' issue rating
on Springer's senior credit facilities (issued by Springer Nature
Deutschland GmbH; formerly Springer Science+Business Media
Deutschland GmbH). The recovery rating on the facilities is
unchanged at '3', reflecting our expectation of meaningful
recovery (50%-70%; rounded estimate 65%) in the event of a
default.

"The rating reflects our view of Springer's leading market
position in global academic publishing. Our assessment is also
supported by the group's high proportion of stable and recurring
subscription revenues, solid profitability with adjusted margins
above 30%, and exposure to growth in global spending on academic
research. The highly leveraged capital structure of the group is a
limiting factor in our rating assessment. The positive outlook
reflects that, under our forecast, the group is on a deleveraging
path. Combined with continued sustainable increases in free
operating cash flow (FOCF), this will lead to a sustainable
improvement in credit metrics."

Springer, with revenue of EUR1.64 billion in FY17, is a global
publishing group with primary interests in the academic publishing
market (research) including additional operations in professional
and educational publishing markets. In FY17, the research division
of Springer contributed approximately 71% of group revenues and
83% of EBITDA. Springer is geographically diversified with global
exposures including revenue contribution of 34% from EMEA (ex-
Germany), 31% from Americas, 19% from Asia Pacific, and 16% from
Germany.

S&P said, "Of the nearly EUR1.2 billion in research division
revenues, we understand nearly two-thirds is considered
subscription or recurring. The remainder is about 11% open access
revenue and about 26% transactional revenue. The subscription
revenues component is made up of approximately 80% journals and
20% ebooks. Under the journals subscription model, customers
usually sign up to three-year subscriptions, with price increases
built in up front and with contract expiries diversified by expiry
year (with no contract renewal cliff).

"We view favorably its strong market positions in academic
publishing and geographical diversification. Springer is the
world's second-largest academic publisher by revenues. The group
is one of the four largest publishers globally, with the others
including Elsevier (division of RELX PLC), Wiley-Blackwell (John
Wiley & Son's Inc.), and Taylor and Francis (a division of Informa
PLC). Together these publishers enjoy an estimated 60% market
share in academic content publishing. We estimate Springers'
market shares are 15% in subscription journals, 18% in books, and
approximately one-third in the open-access journal market.

"We believe scale advantages and established processes, combined
with an extensive back library and brand reputation, are
competitive strengths for the group. In open access, we understand
that the group is enjoying similar economics to traditional
published journals. By Springers estimate, this market grew by
more than 20% per year in 2012-2016 and is currently taking about
1% market share per year from the overall academic publishing
market.

"In our view, risks to the group include: e-piracy; more
advantageous deals negotiated by the university consortium,
decline in print books; and/or a loss of brand reputation. We
understand piracy affects all of the major players in the industry
and is not currently considered significant enough, or a viable
alternative for content purchasers such as institutional
libraries, to materially threaten the group.

"We understand there are some recent market examples of consortium
negotiating with publishers, including Springer, for offset deals
(such as the right to publish a given amount of excess articles
under a flat fee) and/or more advantageous terms on subscription
licenses. We note that Springer has negotiated some similar
arrangements in the past, has a competitive article processing
charge (APC), has a leading position in open access, and has
established brands with must-have content. Lastly, despite having
some exposure to the declining print academic books market, we
understand that Springer employs print to order and print to
demand models, which minimizes inventory holding and overprinting
risk.

"In our view, the group's professional and educational segments
have more susceptibility to weakness in macroeconomic conditions
and professional and corporate budgets. We understand some of the
businesses in these portfolios have some entrenched market
positions in chosen market segments or countries, however as a
whole they do not enjoy the market positioning of the academic
research operation. At less than 20% of EBITDA, we do not expect
any weakness in particular segments to materially impact group
performance. There is a high proportion of print exposure in the
education segment, however this is somewhat due to preferences in
those markets, particularly emerging regions such as Africa. The
group has a low exposure to government contracts in this segment,
at about 10% or less of education division revenue, which we view
positively.

"We note that the group's restructuring, integration, and
exceptional costs have been falling. It reported EUR37 million of
exceptionals in FY16 and EUR29 million in FY17. We expect the long
run restructuring costs to trend toward EUR15 million yearly.

"We forecast Springer's adjusted EBITDA to be EUR520 million-
EUR550 million in FY18; EUR530 million-EUR560 million in FY19; and
EUR560 million-EUR590 million in FY20. This results in S&P Global
Ratings-adjusted debt to EBITDA of 8.0x-8.5x in FY18, 7.8x-8.3x in
FY19, and 7.5x-8.0x in FY20 (including shareholder loans). This
translates to adjusted debt to EBITDA, excluding shareholder loan
instruments of 6.1x-6.6x in FY18, 5.8x-6.3x in FY19, and 5.4x-5.9x
in FY20. We treat as debt, in our adjusted metrics, the group's
preference shares issued to entities associated with Holtzbrink
Publishing Group; the BC Partners shareholder loan; and GvH
shareholder loans."

In S&P's base case, it assumes:

-- Moderate GDP increases of about 2.9%, 2.6%, and 2.0% in the
    U.S. for FY18, FY19, and FY20. GDP increases of about 2.3%,
    1.9%, and 1.7% in the eurozone in FY18, FY19, and FY20.

-- The publishing business is somewhat linked to regional GDP
    growth rates but is perhaps driven more by the global spend
    on academic research as well as academic budgets of public
    institutions, including libraries as well as other
    professional and corporate bodies. S&P's estimates in this
    regard are not dissimilar to GDP growth and are around 2%.

-- S&P forecasts Springer's reported revenue to be between
    EUR1.63 billion-EUR1.68 billion in FY18, EUR1.66 billion to
    EUR1.71 billion in FY19, and EUR1.73 billion-EUR1.78 billion
    in FY20.

-- S&P forecasts the group's adjusted EBITDA margin to be around
    32.5% in FY18-FY20, resulting in EBITDA estimates of EUR520
    million-EUR550 million in FY18, EUR530 million-EUR560 million
    in FY19, and EUR560 million-EUR590 million in FY20.

-- S&P's EBITDA includes implied restructuring costs of around
    EUR15 million per year.

-- Capital expenditure (capex; including content investment of
    around 11% of revenues, equating to around EUR180 million-
    EUR190 million per year). S&P's assumption for annual M&A of
    about EUR25 million.

-- EUR:USD foreign exchange rates of 1.265 in FY18, 1.295 in
    FY19, 1.253 in FY20.

-- No dividends forecast.

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

-- Adjusted debt to EBITDA of 8.0x-8.5x in FY18, 7.8x-8.3x in
    FY19, 7.5x-8.0x in FY20 (including shareholder loans). This
    translates to adjusted debt to EBITDA, excluding shareholder
    loan instruments of 6.1x-6.6x in FY18, 5.8x-6.3x in FY19,
    5.4x-5.9x in FY20.

-- FFO to cash interest coverage of 2.7x-3.2x in FY18-FY20.

-- FOCF of EUR100 million-EUR125 million in FY18 and FY19 and
    EUR110 million-EUR135 million in FY20.

S&P said, "The positive outlook reflects our view that over the
next 12 months, Springers' EBITDA will steadily grow and the group
will sustainably improve its credit metrics and grow its FOCF. Our
base case forecast is that the group will deleverage below 8.5x
S&P Global Ratings-adjusted leverage in FY18 including shareholder
loans (or around 6.5x excluding shareholder loans). The outlook
also factors in our forecast for the group to maintain adjusted
FFO cash interest above 2.5x.

"We could raise the ratings if Springer Nature showed sustained
improvement in credit metrics and FOCF. This would include a
deleveraging path below adjusted leverage -- including shareholder
loans -- of 8.5x or lower in FY18 (which equates to around 6.5x
excluding shareholder loans). It would also require adjusted FFO
to cash interest coverage to be maintained above 2.5x on a
sustainable basis, with continuing generation of growing FOCF and
financial policy consistent with not releveraging the group.

"We could revise the outlook if Springer underperforms our base-
case scenario, resulting in higher-than-anticipated adjusted
leverage, weaker FFO to cash interest cover, or if FOCF started to
weaken. We could also take a negative rating action if the group
entered into sizable acquisitions or releveraged resulting in
credit metrics below our base case."



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


DORCHESTER PARK: Moody's Assigns B3 Rating to Class F-R Notes
-------------------------------------------------------------
Moody's Investors Service has assigned ratings to six classes of
refinancing notes issued by Dorchester Park CLO DAC:

Moody's rating action is as follows:

US$324,500,000 Class A-R Senior Secured Floating Rate Notes due
2028 (the "Class A-R Notes"), Assigned Aaa (sf)

US$57,250,000 Class B-R Senior Secured Floating Rate Notes due
2028 (the "Class B-R Notes"), Assigned Aa2 (sf)

US$25,000,000 Class C-R Secured Deferrable Floating Rate Notes due
2028 (the "Class C-R Notes"), Assigned A2 (sf)

US$27,500,000 Class D-R Secured Deferrable Floating Rate Notes due
2028 (the "Class D-R Notes"), Assigned Baa3 (sf)

US$24,750,000 Class E-R Secured Deferrable Floating Rate Notes due
2028 (the "Class E-R Notes"), Assigned Ba3 (sf)

US$8,000,000 Class F-R Secured Deferrable Floating Rate Notes due
2028 (the "Class F-R Notes"), Assigned B3 (sf)

The Issuer is a managed cash flow collateralized loan obligation
(CLO). The issued notes are collateralized primarily by a
portfolio of broadly syndicated senior secured corporate loans.

GSO / Blackstone Debt Funds Management LLC manages the CLO. It
directs the selection, acquisition, and disposition of collateral
on behalf of the Issuer.

RATINGS RATIONALE

Moody's ratings on the Refinancing Notes address the expected
losses posed to noteholders. The ratings reflect the risks due to
defaults on the underlying portfolio of assets, the transaction's
legal structure, and the characteristics of the underlying assets.

The Issuer has issued the Refinancing Notes and additional
subordinated notes on June 20, 2018  in connection with the
refinancing of all classes of the secured notes previously issued
on February 26, 2015. On the Refinancing Date, the Issuer used
proceeds from the issuance of the Refinancing Notes and additional
subordinated notes to redeem in full the Refinanced Original
Notes.

In addition to the issuance of the Refinancing Notes, a variety of
other changes to transaction features will occur in connection
with the refinancing. These include: issuance of additional
subordinated notes; extension of the reinvestment period;
extensions of the stated maturity and non-call period; changes to
certain collateral quality tests; and changes to the
overcollateralization test levels.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par and principal proceeds balance: $498,900,000

Defaulted par: $2,714,757

Diversity Score: 70

Weighted Average Rating Factor (WARF): 2979

Weighted Average Spread (WAS): 3.10%

Weighted Average Coupon (WAC): 7.00

Weighted Average Recovery Rate (WARR): 47.5%

Weighted Average Life (WAL): 6 years

Methodology Underlying the Rating Action:

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

Factors That Would Lead to an Upgrade or Downgrade of the Ratings:

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


DORCHESTER PARK: S&P Assigns B- Rating to Class F-R Notes
---------------------------------------------------------
S&P Global Ratings assigned its ratings to Dorchester Park CLO
DAC/Dorchester Park CLO LLC's $467.00 million floating-rate notes.

The note issuance is a collateralized loan obligation (CLO)
transaction backed primarily by broadly syndicated senior secured
term loans.

The ratings reflect:

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

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

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

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

  RATINGS ASSIGNED

  Dorchester Park CLO DAC/Dorchester Park CLO LLC

  Class                       Rating          Amount
                                             (mil. $)
  A-R                         AAA (sf)         324.50
  B-R                         AA (sf)           57.25
  C-R (deferrable)            A (sf)            25.00
  D-R (deferrable)            BBB- (sf)         27.50
  E-R (deferrable)            BB- (sf)          24.75
  F-R (deferrable)            B- (sf)            8.00
  Subordinated notes          NR                66.44

  NR--Not rated.


SAMMON CONTRACTING: Gets 98% of Payments for School Building Work
-----------------------------------------------------------------
Jack Power at The Irish Times reports that an Oireachtas committee
has heard Sammon Contracting received 98% of payments for their
work on school building project that stalled after the firm
entered liquidation in June.

The EUR100-million contract to build five schools, and an
institute of education was jointly run by UK firm Carillion, who
sub-contracted the construction to Kildare firm Sammon, The Irish
Times discloses.

The liquidation of Carillion in January, and then Sammon in June,
has delayed the school projects by several months, The Irish Times
notes.  Sammon entered examinership in April, citing the
"devastating collapse" of Carillion as the main cause in its High
Court application, The Irish Times recounts.

According to The Irish Times, Gerard Cahillane, deputy director of
the National Development Finance Agency (NDFA), told the Joint
Committee on Finance that Sammon received 98%of payments it was
owed under the Public Private Partnership (PPP) contract.

The committee heard that Sammon had been subcontracted by
Carillion for the building works, and in turn, they employed
around 160 subcontractors, The Irish Times states.

Sinn Fein finance spokesman Pearse Doherty said some
subcontractors who worked for Sammon were left with thousands in
unpaid invoices, and some would have to close their businesses,
The Irish Times relates.



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


ASR MEDIA: S&P Lowers Loan Rating to 'BB', Outlook Stable
---------------------------------------------------------
S&P Global Ratings lowered its long-term issue rating on the loan
facility owed by Italy-based ASR Media and Sponsorship S.r.l.
(MediaCo) to 'BB' from 'BB+'. The outlook is stable.

S&P said, "We have also revised the recovery rating on the loan
from '2' to '3', indicating our expectation of recovery in the
50%-70% range (rounded estimate 55%) in the event of a payment
default.

"The downgrade follows the revision of our base-case assumptions
underpinning our long-term cash flow forecasts from MediaCo's
contracts. We now assume lower cash flow available for debt
service, primarily because we anticipate weaker inflows from
revenues that depend solely on TeamCo's sporting performance and
on future Serie A broadcasting contracts."

TeamCo, which generates the broadcasting and sponsorship revenues
that service MediaCo's debt, showed a strong performance in both
the domestic and European leagues in the 2017-2018 season. As a
result, MediaCo's financial profile will benefit from TeamCo's
success in the current season, which will also drive expected
revenues for the next season. This is because TeamCo has already
secured its participation in the Union of European Football
Associations (UEFA) Champions League tournament for next season,
thereby ensuring about EUR40 million-EUR50 million of UEFA
broadcasting revenues, which we include in our base case for the
next financial year.

S&P said, "Despite TeamCo's recent onfield performance, we
consider football match results to be inherently volatile and, to
a significant degree, dependent on TeamCo's economic resources and
investment in players. Therefore, we believe the current
broadcasting revenues, based on TeamCo's onfield performance, may
not be sustainable. In our view, in the long term, there is no
certainty that TeamCo's economic resources will be sufficient to
continue operating a high-performing football team in a market
where competition, players' transfer fees, and wage inflation are
constantly rising. As a result, we have revised our long-term
assumptions to include weakening of sporting performance.

"Unlike the Serie A broadcasting revenues, those distributed from
UEFA are fully dependent on TeamCo's onfield performance in Serie
A and its progress through the UEFA competitions. Therefore, our
assumption of a weaker onfield performance translates into
projections of substantially lower UEFA revenues in our revised
base case. We now assume what we consider to be more sustainable
growth of Serie A broadcasting revenues. After large revenue
increases upon each three-year contract renegotiation since the
Serie A began selling broadcasting rights on behalf of clubs, we
expect broadcasting revenue growth will flatten. This is because,
in the competitive environment among broadcasters and,
potentially, emerging bidders, we expect future contracts will be
renegotiated on similar terms as those for the 2018-2021 seasons.
As a result, after expiry of the current contract, we now forecast
MediaCo will receive lower Serie A cash flow than we previously
anticipated."

This decrease will only be partly compensated by revenues from the
three-year sponsorship contract TeamCo signed with Qatar Airways
Group and whose receivables are secured for MediaCo's benefit. The
contract grants the sponsor visibility on the front of the first
team's jersey for a fixed compensation of EUR11 million per annum,
and a signing bonus of EUR6 million, which TeamCo has already
received. S&P said, "The contract includes additional bonuses
linked to TeamCo's sporting performance that are not reflected in
our base case, consistent with our analytical approach, which aims
to reflect the effect of a weakening of TeamCo's onfield
performance on MediaCo's cash flows."

MediaCo needs to refinance approximately 75% of the original loan
principal in 2022. S&P's base case looks beyond the current
maturity date of the loan and assumes refinancing via a fully
amortizing debt instrument maturing five years before the
termination date of the contractual arrangements granting MediaCo
access to TeamCo's media and sponsorship revenues. Over this
horizon, which extends to 2037, S&P now expects that MediaCo can
achieve a minimum annual debt-service coverage ratio (ADSCR) of
approximately 3x and an average ADSCR of 4.11x. This is consistent
with a preliminary operations phase stand-alone credit profile
(SACP) of 'bb-'.

S&P said, "In our downside scenario, we consider the risk of
TeamCo being temporarily relegated from Serie A. This could reduce
MediaCo's revenues substantially, owing primarily to the marginal
media contract revenues available to clubs competing in Serie B,
the second highest division in Italian football. We also expect
that, while in Serie B, sponsors may exercise their rights to
reduce contracted payments where possible, and that they would not
renegotiate expiring contracts. Under such assumptions, MediaCo is
able to service its debt with the support of its available
liquidity sources, resulting in a one-notch positive adjustment
from the preliminary operations phase SACP.

"The stable outlook reflects our expectation that TeamCo will
continue playing in the Serie A championship, and that MediaCo
will renegotiate its broadcasting rights and sponsorship
contracts, generating sustainable long-term cash flows capable of
supporting a minimum ADSCR above 3x.

"We could lower the rating if MediaCo's minimum ADSCR under our
base case declines below 3x. This could result from a change to
the rules for the distribution of Serie A media rights, which
increase the revenues' sensitivity to sporting performance, or if
MediaCo were unable to renew any of its sponsorship contracts
under the same terms. We could also lower the rating if a change
in Serie A revenue allocation results in a lower parachute payment
to relegated teams.

"An upgrade is unlikely, due to uncertainty related to the short-
term nature of the contracts, their periodic renegotiation, and
their terms over the extended horizon of our analysis."



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


NURBANK JSC: S&P Affirms B-/B Issuer Credit Ratings, Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B-/B' long- and short-term issuer
credit ratings on Kazakhstan-based Nurbank JSC. The outlook
remains negative.

S&P said, "We also raised our national scale rating on Nurbank to
'kzBB-' from 'kzB+', following the revision of our national scale
mapping for Kazakhstan.

"The affirmation reflects our view that the support Nurbank's
majority shareholder has already provided, as well as the
possibility of additional support, to some extent mitigate ongoing
pressures on the bank. Nurbank's funding profile is under pressure
from the withdrawal of deposits by government-related entities
over the past 18 months, and the bank's capital base is hampered
by weak profitability and asset quality. We believe that Nurbank's
credit standing and continuation of its business are dependent on
the owner's willingness and ability to support the bank.
Positively, our base-case assumptions are that the controlling
shareholder will remain supportive toward the bank, including
through provision of capital and funding support, over the next 18
months."

The rating action also takes into account signs in the second
quarter of 2018 that Nurbank's funding pressures have been
gradually subsiding. Although there were significant deposit
outflows of government-related entities (GREs) in 2017 and the
start of 2018, similar to the overall flight-to-quality trend we
have observed in other small Kazakh banks, the controlling
shareholder provided substantial support for the bank's
operations. This compensated for the loss of around 65% of GRE
deposits in 2017 and 26% in the first four months of 2018. As of
May 1, 2018, GRE funding accounted for only 15% of Nurbank's total
deposits, versus 40% 18 months earlier, which means that potential
vulnerability of Nurbank to these deposits outflows has reduced
significantly.

S&P said, "We believe that the controlling shareholder's continued
willingness and ability to support the bank are vital for its
credit standing. As of May 1, 2018, the controlling shareholder
had a significant amount of deposits at Nurbank. Under our base
case, we expect the shareholder to provide capital and funding if
needed. We understand that the owner and affiliated companies are
committed to providing substantial extraordinary liquidity support
should the bank experience further deposit outflows.

"Despite significant deposit outflows over the past 18 months,
Nurbank has adequate liquidity, in our view. We assess that liquid
assets (net of short-term wholesale funds) cover about 18% of
total deposits as of June 11, 2018. Potential liquidity support
from the controlling shareholder should help the bank support its
liquidity metrics.

"Given its limited earnings capacity, we believe that Nurbank's
business model is unsustainable and vulnerable to adverse
developments of the banking environment in Kazakhstan, which adds
further uncertainty to the bank's overall long-term viability.
Nurbank's profits are pressured by the ongoing asset quality
clean-up, and its net interest margin (NIM) is low compared with
peers'; the NIM was 1.4% in 2017 and we expect it to remain at 1%-
2% over the next two years. In addition, Nurbank's large network
of branches results in significant administrative expenses,
further impairing profits. We do not expect Nurbank's core
profitability to improve significantly in 2018-2019. We forecast
its risk-adjusted capital (RAC) ratio at 5.0%-5.5% over the next
12 months."

The negative outlook reflects ongoing pressure on Nurbank's
funding profile and franchise, as well as its reliance on
continued support from the majority shareholder to maintain
creditworthiness over the next 12 months.

S&P said, "We could lower the ratings if we saw further
significant funding outflows and deteriorating liquidity, not
adequately balanced by sufficient and timely support from the
controlling shareholder. Negative regulatory intervention, if the
bank breaches prudential liquidity or capital ratios, might also
trigger a downgrade. We could also lower the rating in the event
of a significant deterioration of the bank's capital position, as
indicated by our projected RAC ratio decreasing below 5% over the
next 12 months.

"We could consider revising the outlook to stable if we concluded
that risks of further funding and liquidity pressures have
sustainably reduced and the funding profile has stabilized. In
addition, to consider revising the outlook to stable we would need
to see an improvement of the bank's profit generation and
stabilization of its capital position."



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


IGM RESINS: S&P Assigned Prelim. 'B' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings assigned its 'B' preliminary long-term issuer
credit rating to Ignition Topco BV (Topco), the parent and owner
of IGM Resins (IGM), a Netherlands-headquartered producer of
ultraviolet (UV) curable materials, with a focus on high-value
photo-initiators (PI). The outlook is stable.

S&P said, "At the same time, we assigned our 'B' preliminary long-
term issue rating to IGM's proposed first-lien senior secured
facilities, including a EUR260 million term loan B (TLB) due 2025
and EUR50 million revolving credit facility (RCF) due 2024, to be
issued by Ignition Midco BV, a finance subsidiary of Topco. The
preliminary recovery rating on the first-lien senior secured
facilities is '3', reflecting our expectation of 50%-70% recovery
(rounded estimate: 55%) in the event of a payment default.

"The final ratings will depend on our receipt and satisfactory
review of all final documentation and final terms of the
transaction. The preliminary ratings should therefore not be
construed as evidence of final ratings. If we do not receive final
documentation within a reasonable time, or if the final
documentation and final terms of the transaction depart from the
materials and terms reviewed, we reserve the right to withdraw or
revise the ratings. Potential changes include, but are not limited
to, utilization of the proceeds, maturity, size and conditions of
the facilities, financial and other covenants, security, and
ranking."

The private equity firm Astorg is acquiring IGM from Arsenal
Capital Partners and the transaction is scheduled to close early
third-quarter this year. The contemplated financing for this
acquisition comprises a EUR260 million first-lien TLB due 2025,
EUR65 million second-lien term loan due 2026 (not rated), and
EUR50 million first-lien RCF due 2024 (to be split into EUR25
million working capital line and EUR25 million capex/acquisition
line). The transaction will be further supported by equity
provided by the private equity sponsor.

The preliminary ratings reflect the high debt at closing of the
transaction, which primarily includes the EUR325 million proposed
term loans, translating into about 6.1x S&P Global Ratings-
adjusted debt to EBITDA in 2018. However, S&P anticipates moderate
deleveraging in coming years, with debt to EBITDA ratio improving
to below 6x in 2019 and below 5.5x in 2020.

Headquartered in the Netherlands and founded in 1999 as a
specialty chemicals distribution company, IGM is a leading
manufacturer and supplier of UV curable materials with a focus on
high value PI to the high growth UV coatings and inks market. It
also provides acrylates and additives as complementary UV curing
material solution, as well as specialty intermediates to the
pharmaceutical and agricultural industries.

S&P said, "We anticipate that IGM will increase its revenues by
6%-8% in the next two years, benefiting from its leading market
position in PI production and the favorable growth trend in the
global UV curing materials market, especially in the high-value
specialty PI segment supported by new product launches. We expect
adjusted EBITDA margins will remain at about 20% in 2018-2019,
supported by IGM's topline growth, positive product mix effect due
to increasing shift toward high-value specialty PI, and cost
efficiencies from re-insourcing of PI production post BASF
acquisition. Together, we expect these factors will offset cost
inflation and ongoing pricing pressure, especially for non-PI
products. Helped by healthy margins and relatively low capital
expenditures (capex), due to its asset-light business model and
moderate working capital requirements, we expect IGM to sustain a
fair level of free operating cash flow (FOCF) generation in the
coming years. Despite the improving trend, debt to EBITDA is
likely to remain above 5.0x debt to EBITDA and funds from
operations (FFO) to debt below 12% in the next couple of years.

"The main constraints on our assessment of IGM's business profile
include its relatively small size, with our forecast of adjusted
EBITDA of greater than EUR50 million in 2018, as well as a
relatively narrow product focus, with PI products accounting for
the majority of sales and gross profit in 2017. This is somewhat
mitigated by a broad offering of tailor-made PI solutions, with
complementary UV curable materials including acrylates and
additives. Despite demonstrating a high growth rate, the company's
main PI market is relatively niche, in our view, with a total
market size of about EUR400 million in 2017."

At the same time, the business risk profile is supported by IGM's
global leading position in the high-growth UV curing materials
market, its strong technology capability with a large patent
portfolio covering over 100 active patent families, and long-term
relationships with a diversified customer base. In addition, S&P
views IGM's revenue base as geographically well diversified,
albeit with some concentration in mature markets with Europe and
the U.S. accounting for 46% and 20% of total sales in 2017,
respectively. Remaining sales are generated in Asia (32%, mainly
China and Japan) and South America (2%, mainly Brazil).

Since the acquisition of BASF's PI business in 2016, IGM is the
No. 1 producer of UV PI globally, with a market share of above
40%. Moreover, IGM has a clear focus on high-value-added specialty
PI products, and only a minor portion from merchant products. In
comparison, most of other PI players are Chinese companies selling
outside China through distributors of merchant products. As a
result, IGM generates leading margins in the PI industry. S&P
estimates IGM will achieve an adjusted EBITDA margin of around 20%
from 2018, further supported by its integrated position in the
value chain.

S&P said, "We anticipate the UV curing materials market will grow
5%-6% per year on average over 2018-2022. We expect the PI segment
to grow at a faster rate than the overall market, driven by a push
for safer (low migration) and greener products, and technical
developments. We think IGM is well positioned to benefit from
favorable growth outlook and increasing penetration of UV curing,
given the integration of BASF's PI business, its planned new
product launches, and improved production capacity across
factories."

In addition, IGM benefits from long-term relationships with large
customers like 3M and Akzo Nobel, with average relationship of
over 15 years. It has shown a track record of maintaining
customers with retention rates above 95%. This is mainly driven by
the company's tailor-made solutions, which are critical components
specified into customers' products and relatively difficult to
replicate with high switching costs for customers. IGM serves a
reasonably diverse set of end markets, including the packaging and
printing (47% of sales), wood, plastic, and metal coatings (25%),
electronics (12%), adhesives (5%), and other (11%).

Besides having highly leveraged financial metrics, IGM's financial
risk profile is also constrained by its private equity ownership,
which could result in more aggressive financial policies, notably
in terms of leverage tolerance and incentives to maximize
shareholder returns. S&P said, "However, we understand that Astorg
does not intend to make regular dividend payment following the
transaction. Despite an acquisitive growth path in the past few
years, as shown by the acquisition of BASF's PI business in 2016
and Caffaro assets in 2017, we understand that IGM will focus more
on organic growth, with potential for smaller bolt-on
acquisitions."

S&P said, "The stable outlook reflects our expectation that IGM
will continue to increase EBITDA and generate positive free cash
flow. This should result in a moderate deleveraging with adjusted
debt to EBITDA of 5x-6x from 2019, which is commensurate with the
current rating. The stable outlook also factors in our expectation
that EBITDA interest coverage will be consistently above 3x.

"We could lower the rating if leverage increased as a result of a
prolonged weakening of the company's EBITDA due to a severe
downturn across its key markets, loss of key customers, or other
significant operational issues. Under our base-case scenario, this
would lead to adjusted debt to EBITDA remaining above 6.0x, EBITDA
interest coverage below 3.0x, or FOCF remaining negative for a
prolonged period without prospects of a swift recovery. We could
lower the rating in the event of material deterioration in
liquidity, a large debt-funded acquisition, or a significant
dividend payment, which would signal a change to the financial
policy as we currently understand it.

"We could raise the rating if the company demonstrated a track
record of revenue growth above the market average, improved and
sustained its adjusted EBITDA margin above 20%. This should result
in adjusted debt to EBITDA sustainably below 5x and FFO to debt
consistently above 12%. In addition, a strong commitment from the
private equity sponsor to maintain leverage at a level
commensurate with a higher rating would be important in any
upgrade considerations."



===============
P O R T U G A L
===============


NOVO BANCO: Winterbrook Capital Files Claim Over Bond Default
-------------------------------------------------------------
Robert Smith at The Financial Times reports that
Winterbrook Capital has filed a claim in the English high court
against Novo Banco, escalating the London hedge fund's tussle with
the Portuguese lender over bonds it says are in default.

Winterbrook Capital sent letters to the board of Novo Banco last
month outlining several events of default that the fund believes
have been triggered on the bank's senior bonds, the FT relates.
The London-based firm publicly announced its claim last week, as
the Portuguese bank was in the middle of raising EUR400 million of
risky subordinated bonds, the FT recounts.

According to the FT, court filings show that Winterbrook filed a
claim against the issuer of Novo Banco's senior bonds in the
English high court on June 27.

"Upon learning of the offer of the new notes, Winterbrook issued a
claim in the English courts alleging the occurrence of events of
default under the notes it claims to hold," a spokesperson for the
bank told the FT.  "Novo Banco believes that the claims asserted
are without merit and intends to defend them vigorously."

Novo Banco was created out of the failure of Portugal's Banco
Esp°rito Santo (BES) in 2014 and is already the subject of long-
running litigation from international investors including
BlackRock and Pimco, which lost money due to a controversial debt
transfer at the end of 2015, the FT discloses.

Winterbrook is arguing that the bonds are in default due to
unintended consequences of the Bank of Portugal's rescue of BES,
which saw the central bank carve up its assets into a surviving
good bank and a run-off bad bank in 2014 and 2015, the FT states.



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


PETROPAVLOVSK PLC: S&P Lowers LT Issuer Credit Rating to 'B-'
-------------------------------------------------------------
S&P Global Ratings said that it lowered its long-term issuer
credit rating on Russia-based gold exploration and production
company Petropavlovsk PLC to 'B-' from 'B'.

S&P said, "We also lowered to 'B-' from 'B' our issue ratings on
the $500 million senior unsecured Eurobond due 2022, issued by
Petropavlovsk 2016 Limited, a finance vehicle wholly owned by
Petropavlovsk PLC.

"We placed all the ratings on CreditWatch with negative
implications."

The downgrade reflects S&P's view that the latest corporate
governance developments are distracting management from day-to-day
operations in a year that is key for the company's two strategic
projects: the pressure oxidation (POX) facility and ramp-up of
underground operations. If the company is unable to launch the
projects on time and achieve the expected cost reduction, the
capital structure could become unsustainable. On May 8, 2018, the
company received a requisition from two shareholders, CABS
Platform Ltd. and Slevin Ltd., which together hold about 9.1% of
the issued share capital. These shareholders requested the
proposal of ordinary resolutions at Petropavlovsk's forthcoming
annual general meeting (AGM) to remove all existing directors, and
to appoint three former directors to the board: Dr. Pavel
Maslovskiy, Sir Roderic Lyne, and Mr. Robert Jenkins. The proposal
also includes the reinstatement of Dr. Maslovskiy as CEO of the
company. Fincraft Holdings Ltd., the largest shareholder on
record, has publicly stated its support for this motion. The
second-largest shareholder, Sothic Capital, has publicly stated it
is against the motion. Furthermore, the chief financial officer
resigned at the end of March and Petropavlovsk has yet to announce
a permanent replacement.

Over the past few months, management seems to have been focusing
on two main areas: managing the IRC debt situation to avoid a
cross-default of Petropavlovsk debt, and arguing its case against
the aforementioned AGM proposal from some shareholders. Managing
the IRC debt has included securing covenant waivers from the
Industrial and Commercial Bank of China (ICBC), engaging in a
process of refinance of the IRC debt with a Russian lender, and
securing financing to support IRC in repaying maturities of about
$30 million on the $234 million project finance debt, which is
100% guaranteed by Petropavlovsk.

S&P said, "We understand that the company's strategy and financial
policy could change depending on the outcome of the AGM. The
largest shareholder, Fincraft Holding, has previously publicly
supported the possibility of acquisitions. If not funded
prudently, such transactions could increase leverage and, in turn,
weigh on the rating.

"In the absence of a full performance update in the first half of
2018, we maintain our base case for now. This assumes S&P Global
Ratings-adjusted EBITDA of $180 million-$220 million in 2018 and
$250 million-$300 million in 2019, compared with $170 million in
2017. We plan to reassess our base case after the release of
first-half results around end-August, with a focus on volumes and
total cash costs (TCC) achieved compared with guidance and our
base-case assumptions."

First-quarter 2018 production results showed total gold produced
of 112.6 thousand ounces (oz), which is within the yearly guidance
of 420,000 oz-460,000 oz on an annualized basis (about 450,000
oz). The company reported an average realized gold price of
$1,295/oz, including a negative $35/oz effect from hedging, up 4%
year-on-year. S&P anticipates that production in 2019 will remain
highly sensitive to the delivery of the POX facility and
underground operations, which we assume will cumulatively
contribute about one-half of production that year.

In addition, S&P continues to assume a gold price of $1,250/oz for
the remainder of 2018 and in 2019. Gold was among the least
volatile metals and mining commodities last year, trading between
$1,200/oz and $1,300/oz, in line with our expectations (current
spot price is $1,270/oz). As of March 27, 2018, Petropavlovsk had
hedges outstanding for 350,000 oz -- with delivery in 2018 and
2019 -- at an average gold price of $1,252/oz, which S&P has
considered in its forecast.

The 'B-' rating reflects Petropavlovsk's position as a relatively
small gold producer with strong asset concentration and relatively
short proved reserve life of less than two years based on last
year's production. About one-half of the company's reserves and
resources come from refractory ore--rock that is resistant to
recovery by standard cyanidation and carbon absorption methods and
therefore has not yet been exploited by the company. The POX hub
is scheduled for commissioning in the fourth quarter of 2018 and
will likely enable Petropavlovsk to unlock this half of its
existing reserve base. The company expects that about one-third of
its production will come from refractory ore in 2019, supporting
an increase in production to 550,000 oz-600,000 oz in 2019-2021
from 440,000 oz in 2017.

Although construction on the POX plant is 80% complete, the
project remains exposed to execution risks related to cost
overruns or delays in ramping up. There are uncertainties
surrounding future production costs, which is typical for this
kind of project. Additional execution risks are associated with
the current development of underground mining at Pioneer and
Malomir, where last year's unexpected delays led to increased
operating costs.

S&P said, "We think that the inherent volatility of the gold
mining industry, and our view that operating in Russia implies
high country risk, constrains Petropavlovsk's business risk
profile, which we assess as weak. We also note the increasing
trajectory of TCC, from a low $600/oz in 2016, thanks to the ruble
depreciation and cost-cutting measures, to $700/oz in 2017 and
$700/oz-$750/oz guided for 2018.

"Our assessment of the company's highly leveraged financial risk
profile balances our expectation of improving leverage metrics in
2019 against high capital expenditure (capex) outlays that are
largely related to the completion of the POX plant, resulting in
limited free operating cash flow. We also take into account the
inherent volatility of cash flows, which is only partly offset by
the company's hedging of about 40% of production over 2018-2019."

Petropavlovsk's $858 million adjusted debt currently includes:

-- $4 million in outstanding bank debt;
-- $100 million nominal value of the 2020 convertible notes;
-- $500 million nominal value of the 2022 notes; and
-- $204 million outstanding principal of iron ore producer IRC's
    project finance facility, which Petropavlovsk guarantees.

S&P also makes adjustments for asset retirement obligations,
unamortized capitalized borrowing costs, operating leases, and the
gold forward sales agreements. The company has a 31.1% equity
interest in IRC, with a mark-to-market value of approximately $40
million as of June 25, 2018.

The following assumptions underpin S&P's base-case forecast:

-- Gold price of $1,250/oz for the remainder of 2018 and in
    2019, and expected realized gold prices after hedging of
    $1,260/oz over the same forecast period;

-- Russian ruble/U.S. dollar average exchange rate of 59.0 in
    2018 and 61.0 in 2019;

-- About 430,000 oz of gold production in 2018 and about 570,000
    oz in 2019, compared with 440,000 oz in 2017;

-- Minimal contribution to production volumes from the POX
    facility in 2018 and about one-third of total production in
    2019;

-- Capex of about $105 million in 2018 and about $45 million in
    2018, in line with company guidance, reflecting the POX hub
    planned finalization this year; and

-- No dividends.

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

-- Adjusted EBITDA of $180 million-$220 million in 2018 and $250
    million-$300 million in 2019, compared with $170 million in
    2017;

-- Funds from operations (FFO) to debt of about 12% in 2018, and
    about 23% in 2019; and

-- Adjusted debt to EBITDA of 4.5x-5.0x in 2018, versus 5.3x in
    2017, and below 3x in 2019.

The CreditWatch placement reflects the possibility that S&P might
lower the rating further in the next three-to-six months if the
company is unable to achieve targeted EBITDA growth (making the
capital structure unsustainable), or if liquidity deteriorates.

S&P aims to resolve the CreditWatch after:

-- reviewing financial results for the first half of 2018 and
    any revised guidance for the full year and next year;

-- assessing progress on the refinancing of the IRC debt;

-- understanding the progress on the POX facility and the ramp-
    up of underground production; and

-- reassessing the corporate governance situation.


SAFMAR FINANCIAL: S&P Assigns 'B+/B' Issuer Credit Ratings
----------------------------------------------------------
S&P Global Ratings assigned its 'B+/B' long- and short-term issuer
credit ratings to Russia-based Safmar Financial Investments PJSC
(SFI), an investment holding company. The outlook on the long-term
rating is positive.

The ratings reflect SFI's limited portfolio size (about $1.3
billion) and diversification, as well as its sole exposure to the
economic and business development in the Russia (foreign currency
BBB-/Stable/A-3; local currency BBB/Stable/A-2). S&P said, "We
expect Safmar will continue to operate without any meaningful debt
amounts, meaning its loan to value (LTV) ratio will remain well
below 10%. However, we note that SFI has a limited track record of
operations, including portfolio turnover, given that the holding
was established in 2017, and that this currently weighs on our
credit profile assessment."

S&P said, "In our view, SFI's vulnerable business risk profile is
constrained by the substantial portfolio concentration of its
assets in Russia. Its portfolio contains only three holdings,
which is less than most peers, and these show significant
concentration in Russia's financial sector. Furthermore, all
investments are unlisted, which is atypical for investment holding
companies. We expect that, because of this, it will take a longer
time for SFI to dispose of assets if needed. The fact that SFI
holds controlling stakes in two out of three companies also weighs
on its business risk profile. In addition, we believe the company
has a still-limited track of turning over assets and investing in
new ones. We understand, however, from SFI's recent strategy
update, that management intends to broaden its investment
portfolio, and we therefore expect diversification to increase. In
our view, the weighted credit profile of assets is in line with
our 'B' rating category, but we see scope for gradual improvement
over 2018 and 2019."

SFI's three investments are in the leasing, obligatory and
voluntary pension insurance, and property/casualty (P/C) and life
insurance in Russia.

SFI's investee companies largely operate on a stand-alone basis.
That said, S&P believes that SFI is somewhat involved in the
operations of Safmar, owing to the evolving regulation landscape
and ongoing merger with Doverie.

S&P said, "We assess SFI's financial risk as minimal, given the
company's lack of debt and its strong liquidity position. We also
view SFI's announced investment strategy, which is not envisaging
debt, as positive for the rating, since it supports our view of
minimal financial risk profile going forward."

SFI is ultimately controlled by Mikhail Guceriev and Said
Guceriev, Russian businessmen with investments in oil and gas,
coal mining, chemical fertilizers, construction, commercial and
residential real estate, hotels, retail, and media. S&P said, "We
understand that the shareholders are not involved in the day-to-
day management of the company. We do not include their other
businesses in our analysis, since they are not controlled by SFI."

S&P said, "We continue to believe that the group's investment
activities are critical in assessing SFI's underlying credit
quality, given that SFI is not directly operational. We believe
none of the investees are core to SFI, and we therefore expect SFI
would dispose of assets to meet debt obligations if needed.

"We assess SFI's liquidity as strong, due to the absence of debt.
We estimate that its sources of liquidity cover sources by 2.4x-
3.9x in 2018-2019.

"The positive outlook reflects that we could upgrade SFI within
the next 12-18 months if it builds a track record of limited
leverage, the credit quality of its investments improves in line
with our expectations, and dividend inflows easily cover dividends
to shareholders.

"We could raise our ratings on SFI in the next 12-18 months if we
see improvements in the credit quality of its material
subsidiaries while the company maintains minimal leverage and
demonstrates a steady cash flow. A strong commitment of SFI to
maintaining the credit quality of its subsidiaries, including
moderation of their risk appetite and clean-up of the pension
funds portfolio, would be required for a positive action, along
with firm adherence to the stated investment and financial
policy."

S&P said would likely revise the outlook to stable, or take a
negative rating action if: S&P sees a sizable increase in leverage
at SFI, with the LTV ratio increasing. S&P sees deterioration in
the credit quality of subsidiaries, leading to restricted capacity
to upstream dividends to SFI. SFI sells any of the portfolio
companies, without an imminent investment in an entity with
similar characteristics.


URALKALI: S&P Alters Outlook to Stable & Affirms 'BB-' ICR
----------------------------------------------------------
S&P Global Ratings said that it revised its outlook on Russian
agrochemicals producer Uralkali to stable from negative and
affirmed the 'BB-' long-term issuer credit rating.

S&P said, "The outlook revision reflects our view that Uralkali is
on track to achieve stronger metrics, supported by improved potash
prices and moderate capital expenditure (capex). We expect that
Uralkali will generate positive free operating cash flow (FOCF) of
around US$400 million-$500 million annually, which it will use for
gross deleveraging. As a result, we expect that Uralkali's
adjusted debt to EBITDA will decrease from 4.2x at the end of 2017
to around 4.0x in 2018, falling further to about 3.5x in 2019. We
forecast its FFO to debt will improve from around 15.7% in 2017 to
17%-19% in 2018-2019.

"Our rating on Uralkali reflects its leading market share (by
sales volume) in the global potash market together with another
leading producer, Belaruskali. Uralkali's cash cost position
(below $50 per metric ton [mt] in 2017) is better than peers',
supported by its large scale, vertically-integrated business model
and rich reserves. Uralkali's operations are diversified across
five mines, six potash plants, and one carnallite plant, all
located in Russia's Perm region. This to some extent mitigates the
operating risks inherent in the mining industry. The company also
uses its own fleet of mineral wagons (7.8 thousand) and operates
its own transshipment capacity at the Baltic Bulk Terminal.

"We expect that Uralkali's financial metrics will be supported by
some potash price recovery after the protracted price downturn in
2014-2017. Potash prices bottomed out in first-quarter 2017, and
have since demonstrated slow but, in our view, largely sustainable
growth. We expect global demand for potash to remain robust,
supporting the upwards price momentum. We expect this to be
balanced by additional supply coming from the new potash projects
of Eurochem and K+S, in particular.

"That said, greenfield shipments in the next one or two years will
be moderate, in our view. In Russia, we expect that EuroChem's new
potash capacity will not materially affect the market in 2018-
2019, as EuroChem's volumes are not yet significant. Additionally,
we expect Uralkali to sell more potash to export markets. We also
factor in the expected curtailment of high-cost global potash
capacity.

"We note Uralkali's high sensitivity to the ruble (RUB) exchange
rate, as most of its costs are in rubles but over 85% of revenues
in 2017 came from exports to over 60 countries in Europe, Asia,
the Americas, and others. Our assessment of Uralkali's business
risk profile is also constrained by the high country risk of
Russia and the high cyclicality in the fertilizer industry."

Uralkali's FOCF ($400 million-$500 million) is solid for the
rating, which should enable the company to gradually strengthen
its balance sheet, which was overloaded after share buybacks in
2015-2016 worth $3.9 billion and further weakened by low cycle
industry conditions in 2016-2017. S&P expects Uralkali to decrease
its adjusted debt from $5.8 billion at end-2017 to around $5.5
billion at end-2018 and $5.1 billion at end-2019. This is likely
to be underpinned by supportive financial policies and a moderate
capex program.

Under S&P's base case, it assumes:

-- Top-line growth of around 1%-3% in 2018-2020, supported by
    around 10%-15% of potash cost and freight price improvements
    in 2018. S&P does not expect further potash price growth as
    it expects that the launch of greenfield projects in the
    industry should balance increasing demand witnessed recently.

-- The potash price for the Russian offtakers is calculated
    based on a minimum export price (the weighted-average price
    on the export market with the lowest price before transport
    and logistics cost).

-- Dollar-to-ruble exchange rate of around 1:62 at year-end 2018
    and 1:63 at year-end 2019, compared with the spot exchange
    rate of around 62.9.

-- Moderate annual capital spending in 2018-2019, slightly
    higher than $270 million in 2017, 61% of which was related to
    capacity expansion. No material mergers or acquisitions.

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

-- Adjusted EBITDA of around $1.4 billion in 2018 (compared with
    around $1.36 billion in 2017) and around $1.45 billion in
    2019, translating into an adjusted EBITDA margin of close to
    50%. FFO to debt of 17%-19% in 2018-2019, compared with 15.7%
    in 2017.

-- Adjusted debt to EBITDA of about 4.0x in 2018 and 3.5x in
    2019, compared with 4.2x in 2017.

-- Positive discretionary flow of around $400 million-$500
    million in 2018-2019, compared with $415 million in 2018.

S&P said, "The stable outlook on Uralkali reflects our view that
it will generate adjusted EBITDA of at least $1.4 billion in 2018-
2019 leading to robust cash flows of around $400 million-$500
million that will support its gross deleveraging. The outlook also
factors in our view that Uralkali's S&P Global Ratings-adjusted
debt to EBITDA will be around 4.0x and FFO to debt at about 17% in
2018. These figures are well within the 4.0x-5.0x and 12%-20%
ranges that we view as commensurate with the rating. We also
expect that Uralkali will comply with its maintenance covenants
and refinance its sizable near-term bank maturities of around $2.6
billion in the next 12 months.

"We may lower our rating on Uralkali if any combination of price
weakening, ruble strengthening, or aggressive financial policies
cause its FFO-to-debt ratio to drop below 12% or adjusted debt to
rise above 5.0x. In addition, we may take a negative rating action
if Uralkali's debt maturities are not refinanced well ahead of
time, or if headroom under maintenance covenants tightens further
and is not addressed by the company in a timely manner.

"We view a positive rating action as unlikely at this stage given
Uralkali's tight headroom under its financial covenants. Over the
medium term, we could raise the rating on Uralkali if its adjusted
debt to EBITDA remains below 4.0x over the next 24 months and its
adjusted FFO to debt is above 20% and we are confident that these
ratios will be maintained over the cycle. An upgrade would hinge
on the absence of refinancing or liquidity risks."



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


BBVA RMBS 14: S&P Raises Class B Notes Rating to BB(sf)
-------------------------------------------------------
S&P Global Ratings raised to 'BB (sf)' from 'B- (sf)' and removed
from CreditWatch positive its credit rating on BBVA RMBS 14, Fondo
de Titulizacion de Activos' class B notes. At the same time, S&P
affirmed its rating on the class A 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 received, and reflect the
transaction's current structural features. We 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.

"We consider that the transaction's documented replacement
mechanisms adequately mitigate its counterparty risk exposure to
Banco Bilbao Vizcaya Argentaria S.A. (BBVA; A-/Stable/A-2), as
issuer account bank provider, up to an 'A' rating under our
current counterparty criteria. Therefore, our ratings on the notes
are capped at 'A (sf)' by 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 is
a decrease in the required credit coverage for each rating level
compared with our previous review, mainly driven by our revised
foreclosure frequency assumptions."

  Rating level     WAFF (%)    WALS (%)
  AAA                 12.79       25.47
  AA                   8.58       18.43
  A                    6.44        6.84
  BBB                  4.73        2.05
  BB                   3.04        2.00
  B                    1.76        2.00

WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.

The class A notes' credit enhancement (considering current loans
and up to six month in arrears) has increased to 18.8%, from 15.8%
at our previous full review in October 2015, owing to the
amortization of the notes, which is sequential. Similarly, the
class B notes' credit enhancement has increased to 6.7% from 5.7%.
In line with other "Viviendas de Proteccion Oficial" (VPO)
transactions, delinquencies and defaults have remained low, stable
since our last full review.

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

"Under our European residential loans criteria, the class A notes
can support 'AAA' stresses. Also, when we apply our stresses under
our RAS criteria, the class A notes are able to withstand the
extreme stresses. In addition, the class A notes meet all
conditions listed in our criteria to achieve up to six notches
above the rating on Spain. As a result, we could rate the A notes
up to six notches above the long-term sovereign rating (or 'AAA').
However, in this transaction, our rating on the class A notes is
constrained at 'A (sf)' by our current counterparty criteria. As
such, we have affirmed our 'A (sf)' rating on the class A notes.

"Under our cash flow analysis, the class B notes could only
withstand our stresses at lower rating levels than those we
assigned today. This is mainly driven to the limited credit we
give to the spread between the notes and the collateral resulting
in negative carry in most of our runs. However, in our opinion,
additional factors, such as the level of credit enhancement and
the impeccable track record of VPO related transactions, supports
the rating on this class of notes. Taking all of these factors
into consideration, we have raised the rating on the class B notes
to 'BB (sf)' from 'B- (sf)' and removed it from CreditWatch
positive."

BBVA RMBS 14 is a Spanish residential mortgage-backed securities
(RMBS) transaction, which closed in November 2014. The pool
comprises solely mortgage loans for the acquisition of protected
properties or VPOs originated by BBVA. A VPO loan is a Spanish
mortgage loan granted as part of a government sponsored program
aimed at assisting lower-income households. The securitized loans
in this transaction are part of the "Plan Estatal de Vivienda
2005-2008" and "Plan de Vivienda y Rehabilitaci¢n 2009-2012"
programs. At closing, approximately 40.7% of the borrowers benefit
from available subsidies through monthly payments from national
and local authorities; as of March 2018 only five loans benefited
from a subsidy.

  RATINGS LIST
  Class              Rating
               To               From

  BBVA RMBS 14, Fondo de Titulizacion de Activos
  EUR700 Million Residential Mortgage-Backed Floating-Rate Notes

  Rating Raised And Removed From CreditWatch Positive

  B            BB (sf)           B- (sf)/Watch Pos

  Rating Affirmed

  A            A (sf)



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


AMIGO LOANS: S&P Affirms B+ Issuer Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'B+' long-term issuer
credit rating on U.K.-based guarantor lender Amigo Loans Ltd.
(Amigo). The outlook is stable.

S&P said, "At the same time, we affirmed our 'B+' issue rating on
the senior secured notes issued by wholly owned subsidiary Amigo
Luxembourg S.A. The recovery rating is unchanged at '4'. This
indicates our expectation of average recovery (30%-50%; rounded
estimate: 40%) in the event of payment default."

The rating affirmation follows the pricing of Amigo's IPO. The
transaction leads to a noteworthy improvement in Amigo's credit
ratios and, in our view, improves the group's financial
flexibility. S&P also believes that the premium listing will lead
to further improvements in Amigo's management and governance, and
a more predictable financial policy.

However, the transaction does not affect S&P's view of Amigo's
business profile, which remains constrained by its relatively
small scale, niche and concentrated focus, and high pace of
growth, which could lead to potential asset quality or operational
issues.

The Richmond Group currently owns just over 80% of Amigo. Based on
a free float of 25.0%-27.5% (and a 10% over-allotment option), and
the IPO structure comprising a secondary sell-down of existing
shares, the Richmond Group will remain the majority shareholder.
S&P said, "Our base-case scenario is that this will also remain
the case within our rating outlook horizon, which extends beyond
the initial lock-up period of 180 days. Amigo Holdings Ltd. is the
listed nonoperating holding company consolidating the activities
of the group. We rate the operating company Amigo Loans Ltd.,
which guarantees the group's senior secured debt.

"As part of the transaction, we understand that the group's
shareholder loan notes, which amounted to GBP201 million at year-
end March 31, 2018, will be capitalized. Given that we currently
consolidate the loan notes within our adjusted debt figure, we
recognize that, post-IPO, Amigo's key credit ratios will improve.
We anticipate that Amigo will continue to expand quickly, and we
forecast revenue and EBITDA growth of 20%-25% over the next 12
months. The cash generative nature of Amigo's activities means
that we expect internal capital generation will fund much of its
credit growth, with modest use of external debt funding. Our
expectation of a full-year dividend payout of 35% for the
financial year ending March 31, 2019, which we expect will
progressively increase beyond these levels, could increase Amigo's
reliance on debt funding if its growth rates remain particularly
high." However, its current cash generation supports the stability
of its credit ratios, which S&P expects will trend at the
following levels:

-- Gross debt to S&P Global Ratings-adjusted EBITDA of 3x-4x;
-- Funds from operations (FFO) to total debt of 12%-20%;
-- Gross debt to tangible equity of 2.0x-2.5x; and
-- Adjusted EBITDA coverage of interest expense of 3x-6x.

S&P said, "Our view of Amigo's business profile and overall rating
continues to be constrained by its narrow focus on a niche part of
the U.K. non-standard lending market. We think its monoline
business model and lack of diversification leads to ongoing
regulatory, conduct, and operational risks, as well as potential
adverse changes in its operating environment. The group's high
pace of credit growth and concentrated funding profile also
constrain the rating. This is partly offset by its above average
profitability, good market position in its chosen segment, and
consistent simple strategy, which is factored into our overall
'B+' rating.

"The stable outlook reflects our expectation that the company will
maintain its good earnings performance and consistent strategic
focus, and will slow down its pace of loan growth, which will
support the stability of its credit ratios.

"We could raise the ratings if Amigo were to successfully increase
its revenue diversification, reducing its reliance on a specific
end-customer base and supporting the stability of its through-the-
cycle earnings. Alternatively, we could raise the rating if
Amigo's credit ratios improved substantially beyond our existing
expectations.

"We could lower the rating if its internal cash generation
capacity weakened, or if the group pursued a more aggressive
growth strategy that put pressure on its credit ratios." For
example, if credit metrics started to trend in the following:

-- Gross debt/adjusted EBITDA above 4x;
-- FFO/gross debt below 12%;
-- Gross debt to tangible equity above 3x; and Adjusted EBITDA to
    interest coverage below 3x.

S&P could also lower the rating if it saw a material increase in
impairments, or a rise in regulatory or operational risks,
damaging Amigo's debt-servicing capability or current business
model.


BHS GROUP: Accounting Watchdog Urged to Publish Audit Report
------------------------------------------------------------
Naomi Rovnick at The Financial Times reports that an influential
parliamentary committee is pressuring Britain's accounting
watchdog to publish its long-awaited report on big four accountant
PwC's audit of collapsed department store chain BHS.

BHS' former owner, Sir Philip Green's holding company Taveta
Investments, lost a legal bid last week to stop the FRC releasing
the full report, having claimed that it could harm Taveta's
directors and employees, the FT relates.

Sir Philip was not a party to the court proceedings, the FT notes.

                             About BHS

BHS Group was a high street retailer offering fashion for the
whole family, furniture and home accessories.

BHS was put into administration in April 2016 in one of the
U.K.'s largest ever corporate failures, according to The Am Law
Daily.  More than 11,000 jobs were lost and 20,000 pensions (the
U.K. equivalent of a 401k) put at risk after it emerged that the
company, which had more than 160 stores across the U.K., had a
pension deficit of GBP571 million (US$703 million), The Am Law
Daily disclosed.

Sir Philip Green, a retail magnate with a net worth of more than
US$5 billion, has been heavily criticized for his role in the
collapse of BHS, The Am Law Daily said.  Mr. Green and other
shareholders had taken around GBP580 million (US$714 million) out
of the business before selling it for just GBP1 (US$1.23), The Am
Law Daily noted.

Linklaters acted for Green's Arcadia Group on the sale of the
company to Retail Acquisitions, which was advised by London-based
technology, media and telecoms specialist Olswang, The Am Law
Daily added.

Weil Gotshal & Manges and DLA then took the lead roles on the
administration, acting for the company and administrators Duff &
Phelps, respectively, while Jones Day was appointed by the
administrators to investigate the actions of the company's former
directors, The Am Law Daily related.


BOPARAN HOLDINGS: S&P Lowers ICR to 'CCC+', Outlook Negative
------------------------------------------------------------
S&P Global Ratings said lowered its long-term issuer credit rating
on Boparan Holdings Ltd. to 'CCC+' from 'B-'. The outlook is
negative.

S&P said, "At the same time, we lowered our issue rating on the
company's GBP250 million senior unsecured notes due in 2019,
GBP330 million senior unsecured notes due in 2021, and EUR300
million senior unsecured notes due in 2021 to 'CCC+' from 'B-'.
The '4' recovery rating on these instruments is unchanged,
indicating that we expect average (30%-50%; rounded estimate 45%)
recovery prospects in the event of a payment default."

The downgrade follows the Boparan group's recent quarterly results
in which it reported continued operating underperformance. This
was because it was unable to secure price uplifts in its protein
segment to recover increases in commodity prices, including some
feed cost components and ancillary inputs including packaging.
This, combined with exchange rate fluctuations, disruption in the
transition of its manufacturing facility in Scunthorpe, and
closure of its West Bromwich site following public allegations of
hygiene and food safety breaches, has seen its core protein
business' reported EBITDA margins falling to about 1.25%. The
chilled and branded segments account for the majority of group
earnings. However, these delivered mixed performances so far this
year, with the retailer's branded offerings in the chilled segment
realizing some price recovery while the branded segment margins
continue to contract. Despite modest growth in year-to-date
revenue compared with the previous year, at about 2.5%, the
reported EBITDA margin has fallen by about 0.8% to 3.4%, which
leads us to revise our expectation for the group's adjusted EBITDA
to about GBP120 million-GBP130 million in 2018 from GBP155
million-GBP165 million.

Following the announced sale of the frozen pizza business within
Green Isle Foods in January 2018, Boparan has now outlined how it
intends to allocate the proceeds in its operating activities. The
group intends to repay GBP125 million of the GBP250 million senior
unsecured notes due in July 2019, which supports its aggregate
debt burden profile. S&P said, "However, we also note that the
lost earnings contribution from this business will significantly
hamper the continuing business' ability to comfortably meet its
interest obligations and generate positive free operating cash
flow. The turnaround strategy for the core protein business will
take longer than previously envisaged and even with the prospect
of further divestitures of non-core business, we see maintaining
the long-term capital structure as increasingly difficult because
of the lower group profitability."

S&P said, "We anticipate continued pressure on gross margins in
the coming year as Boparan continues its negotiations with its
major customers. Although pricing models that cover feed inflation
account for the majority of the group's poultry operations, it has
to manage some residual exposure, particularly in the chilled and
branded segments. The group uses many other raw materials in its
product ranges (including mozzarella, sugar, and cocoa), which
have seen price increases that had to be absorbed in previous
quarters. Boparan's productive efficiency requires a substantial
improvement, in our view, as despite its significant scale and
retail relationships it has not been able to convert these
strengths into superior long-term profits. We note the relative
bargaining power of the group's large retail customers including
Marks & Spencer, Aldi, and Tesco and that its less differentiated
protein product offerings also limits the group's pricing power
against more value-added products. These weaknesses, combined with
the single country focus and exposure to exogenous factors such as
disease outbreaks, are all main factors captured in our assessment
of business risk.

"We expect that Boparan will record adjusted debt to EBITDA of
9.5x-10.5x over the next 12-18 months. Our adjusted debt estimate
includes the unsecured notes totaling about GBP730 million
reflecting the intended repayment of 50% of the 2019 maturities,
factoring lines of about GBP100 million, and operating lease and
pension obligations totaling more than GBP340 million. We also
include a subordinated shareholder loan note with a carrying value
of about GBP100 million as of the end of fiscal year 2017 (ending
July 30)."

In S&P's revised base case, it assumes:

-- Revenues increasing by 2.0%-2.5% in fiscal 2018, affected
    primarily by modest volume growth in the poultry business
    following operational disruptions in the first half of the
    fiscal year. S&P expects growth rates in the poultry segment
    to improve to 2.5%-4.0% in fiscal 2019, driven by some
    pricing recovery following a challenging 18 months of
    commodity price inflation. Overall top-line sales growth is
    expected to fall by 2%-4% however following the sale of the
    frozen pizza business agreed in January 2018. This is
    supported by modest organic growth in the chilled, ready-to-
    to-cook, and meal solutions segments.

-- Falling reported EBITDA margins in fiscal 2018 to about 3.8%
    (FY2017: 4.7%) following operational disruptions and
    challenges in price recovery in the poultry and branded
    businesses. S&P said, "We are less optimistic in our
    expectations for enhanced profitability given the recent sale
    of the higher margin business from which the group benefits
    from some brand equity and pricing power. We have therefore
    revised our adjusted EBITDA margin expectation to about 4.0%-
    4.5% in fiscal years 2019 and 2020, thanks to enhanced
    productivity, price recovery and cost-focus in operations
    from about 5.5% previously."

-- Modest working capital inflows in fiscal 2017 with neutral
    movements thereafter.

-- Cash pension obligation payments of about GBP22 million
    annually.

-- Capital expenditure (capex) of GBP50 million-GBP70 million in
    fiscal years 2018 and 2019.

-- No shareholder remuneration in the form of cash dividends or
    share buybacks.

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

-- S&P Global Ratings-adjusted debt to EBITDA of 9.5x-10.5x in
    fiscal years 2018 and 2019, from 9.0x in fiscal 2017;

-- Funds from operations (FFO) cash interest coverage of above
    2.0x in fiscal years 2018 and 2019; and

-- Negative reported free operating cash flow (FOCF) generation
    in fiscal years 2018 and 2019 of GBP10 million-GBP22 million.

S&P said, "The existing bond indenture only has a springing
covenant linked to the RCF, tested once 25% is drawn and
conditional on group EBITDA being at least GBP100 million. We
don't capture any breaches in our forecast given the group's use
of supplier financing, however we anticipate that if the testing
level were reached at quarter end, it should be able to satisfy
the covenant test if performance is at least as robust as the past
12 months.

"The negative outlook reflects our view that Boparan's operating
performance will not improve substantially in the coming quarters
resulting in negative FOCF generation and heightened refinancing
risks. The company's efforts to divest business segments to
support debt reduction will leave the remaining business
substantially weaker in our view, as the segments being divested
are more profitable. We expect the existing debt ratios and
interest obligations to be unsustainable in the long term and,
given the near term maturities faced by the company, tangibly
heightened refinancing risks.

"We could lower the ratings if Boparan fails to outline clearer
plans for the 2019 debt tranche to be repaid, in line with the
bond indenture, within a reasonable time period. We will also
closely monitor the group's interest coverage metrics and would
consider FFO-cash-interest coverage approaching 1.5x as an
indication that they group may not be able to comfortably meet its
continuing operational costs, including its pension obligations
and capex commitments. We also note that the group's RCF, which
matures in July 2019, includes a minimum EBITDA generation clause
once 25% drawn and note that this may limit Boparan's access to
liquidity if not properly managed.

"We could revise the outlook to stable or raise the rating if
Boparan manages to present a credible plan to refinance its
capital structure or redeem the 2019 maturities with no risk of
debt restructuring or a distressed exchange. The group's ability
to lower refinancing risk also depends on it substantially
improving its profitability and FOCF generation. We would expect
to see FFO cash interest maintained comfortably above 3.0x in
these circumstances. This would most likely occur if Boparan
successfully executes its plans of improved pricing agreements,
operating efficiency, and cash conversion significantly above our
existing base case, while also keeping its market-leading
positions in the poultry segment."


CARILLION PLC: Unite Launches Legal Action Over Redundancies
------------------------------------------------------------
Justin George Varghese at Reuters reports that Unite, Britain's
biggest labor union, said on July 3 it has launched legal action
against Carillion on behalf of former workers of the company whose
jobs were made redundant following the collapse of the British
outsourcer in January.

The members were employed by Carillion's group company Planned
Maintenance Engineering Ltd on a contract at Britain's GCHQ spy
agency headquarters in Cheltenham, Gloucestershire, Reuters
discloses.

Carillion collapsed in January when its banks pulled the plug,
triggering Britain's biggest corporate failure in a decade and
intensifying uncertainty about the future of the outsourcing
sector, Reuters recounts.

According to Reuters, Unite said the workers were dismissed on
Feb. 6 without consultation and were told to claim their pay from
the government's redundancy payments office.

Unite, as cited by Reuters, said the original claim was against
Carillion, but the tribunal judge has added the Secretary of State
for Business, Energy and Industrial Strategy (BEIS) as an
additional respondent to the claim.

The union said if the claim is successful, the workers can each be
awarded up to 90 days' pay, Reuters relays.  It said as Carillion
is in liquidation, the amount would be paid by the Insolvency
Service in the form of unpaid wages and would be capped at 8 weeks
and a maximum of GBP489 (US$644.75) per week, Reuters notes.


CARLUCCIO'S: Shuts Down Chelmsford Restaurant Following CVA
-----------------------------------------------------------
Clare Youell at Essex Live reports that bosses at Carluccio's
recently announced that they would be closing around 30
restaurants and that Chelmsford would almost certainly be one of
them.

It has been revealed that the Italian chain will close in
Chelmsford, with the final day of trading being Wednesday, July 4,
Essex Live discloses.

The Bishop's Stortford eatery is also set to close, but branches
in Colchester and Bluewater will remain open, Essex Live states.

According to Essex Live, a spokeswoman for Carluccio's said:
"Following the announcement that Carluccio's has entered a CVA
(Company Voluntary Arrangement), it is confirmed that the
Chelmsford restaurant will close.

"This is due to rising business costs and unsustainable rental
levels and in no way reflects the passion and commitment displayed
by our team."

The company revealed in May that it was going through a
restructuring process due to financial difficulties.

Carluccio's has said that it will relocate staff to remaining
outlets where possible and try to keep job losses to a minimum,
Essex Live relates.

Carluccio's was founded in 1999 by the late Antonio Carluccio and
it has 103 restaurants around the UK.  It's known for serving a
range of pasta, salads and meat dishes as well as sharing boards
and antipasti.


HIKMA PHARMACEUTICALS: S&P Affirms 'BB+' ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term issuer credit
rating on Hikma Pharmaceuticals PLC. The outlook is stable.

S&P said, "We also affirmed a 'BB+' issue rating on the group's
$500 million bond. The recovery rating is '3', reflecting our
expectation of meaningful recovery (50%-70%; rounded estimate 65%)
in the event of default."

The affirmation balances that Hikma currently has headroom in its
financial risk profile with the uncertainty S&P sees stemming from
the impact of possible sizable acquisitions over the longer term.

S&P said, "Although we now regard Hikma's financial risk profile
as moderate, stronger than our previous assessment of
intermediate, our current forecasts do not capture any sizable
acquisition that could eventually affect the group's balance
sheet. We understand that there are no acquisitions in the
pipeline and we do not contemplate the possibility in the very
near term. However, over the longer term, we cannot exclude that
Hikma's balance sheet would not be affected by the group's
external growth policy, as Hikma is not committed to a leverage of
below 2x. We also note that there could be shifts in the group's
strategy given the recent appointment of a new CEO and other
changes in top management over the past months."

Over 2017, Hikma's S&P Global Ratings-adjusted debt to EBITDA has
reduced to 1.5x in 2017 from around 2.0x in 2016. This reflects
lower financial debt thanks to the repayment of short-term
borrowing as well as higher cash on the balance-sheet. The
company's cash position reached $231 million at year-end 2017. The
improvement in cash conversion is the result of the focus on
working capital management. The company registered a positive
inflow of $39 million.

Over the past years, Hikma reinforced its position in the
injectables business, becoming the current No. 3 player behind
Fresenius and Pfizer in terms of volumes. Regarding value, Hikma
ranks No. 5 behind TEVA, Mylan, Fresenius, and Pfizer. The company
is expanding its manufacturing capabilities, including in the more
complex products, and it continues to optimize the assets it
acquired from Bedford labs. Hikma also benefits from a highly-
diversified portfolio, which we think increases the resilience of
the group's profitability. Although competitors have been
investing in injectables, profitability remained strong in 2017,
at around 40.6% (compared with 43.5% in 2016). Also in 2017, Hikma
launched 34 new compounds in 88 dosage forms.

Additional rating support stems from the strong performance of
Hikma's branded products, marketed in the Middle East and North
Africa (MENA) region only. This reflected lower foreign exchange
headwinds. The core margin increased to 21.3% from 20.1%.
Furthermore, the group launched six new compounds in 113 dosage
forms. Moreover, the group renewed its partnership with Takeda.
Overall, revenue from in-licensed products represented 37% of
branded revenue in 2017.

The generics division is still Himka's main operating challenge.
The group recognized an impairment charge of $1,084 million in
2017 related to West Ward Columbus. The margin was 3.5%, 220 basis
points lower than in 2016. Only four new compounds were launched
in nine dosage forms. Furthermore, uncertainties around the launch
of generic Advair linger, since obtaining the U.S. FDA's approval
was more challenging than expected for all competitors, including
Mylan and Novartis, which have yet to be successful.

S&P said, "In our forecasts, we expect the group's leverage to
increase in 2018 to 1.7x from 1.5x last year. This is due to lower
EBITDA because of continued pricing pressure in the generics
division, where the profitability will continue to deteriorate,
since we do not anticipate material successful launches in the
short term. We also expect some profitability to weaken in the
injectables, but the margin for this division would remain round
35% under our base case."

Amid continued pricing pressure, Hikma is focusing on cost
management to rationalize capital expenditures (capex). Capex and
intangible assets were lower than 8% of sales, compared with 9% in
2016. Hikma has reduced its investments in research and
development to 6% of sales from 7% in 2016 following a review of
pipeline, reprioritizing high-value products and identified
opportunities. In 2018, Hikma intends to complete the
consolidation of its manufacturing facilities in the U.S.,
transferring products from Eatontown to Columbus and to Jordan.

S&P said, "In our view, Hikma benefits from a good geographical
balance between the U.S. (62% of sales) and MENA (33%), with the
remaining sales generated in Europe and other countries around the
world. Hikma also benefits from a strong manufacturing footprint,
with 29 facilities in 11 countries, with 12 FDA-approved
facilities in five countries. Leveraging on these facilities to
sell in the U.S. at a lower cost of production is one of Hikma's
competitive advantages. Another important competitive advantage is
the group's strong position in the injectables; It is currently
No. 3 in terms of volumes in the U.S. generic injectables market.
Hikma is a smaller player than Teva or Mylan. Although we have
seen less benefit from generic scale than we expected over the
past few years, the larger size in our view is still reflective of
boarder and more diversified portfolio across therapeutic areas,
and of better ability to invest in the largest first-to-file
opportunities. Moreover, the injectables division represents 70%
of the group's profit, while the generics division (non-injectable
and non-branded) has a low profitability, and the company still
needs to build a track record of successful launches. These
factors lead us to continue assessing Hikma's business risk
profile as fair.

"The stable outlook reflects our view that, thanks to Hikma's
resilient earnings, the group will likely report adjusted debt to
EBITDA comfortably below 3x and FFO to debt above 30%. We forecast
price erosion to continue over the next 12 months, although at a
slower pace. In this context, Hikma will maintain its
profitability in the range of 21%-22%, supported by costs
efficiency measures as well as the injectables division, which
will remain strong in our view despite some profitability
deterioration due to increased competition.

"We would take a positive rating action if we believed that
adjusted debt to EBITDA would sustainably remain below 2x, with
strong levels of discretionary cash flows. Alternatively, an
upgrade could occur if we observed a strengthening of the group's
competitive position on the back of success of the non-injectable
non-branded generics division. This would translate into stronger
earnings and better diversification of the profitability base.

"Although unlikely in the near term, we could lower the rating if
performance materially deteriorated because of difficulties
obtaining approvals, challenging product launches, continued price
erosion, and increased competition leading to fall down in volume
and profitability prospects. This would translate into debt to
EBITDA reaching 3x and limited FOCF cushion."


IPH-BRAMMER HOLDINGS: S&P Alters Outlook to Neg. & Affirms B ICR
----------------------------------------------------------------
S&P Global Ratings said that it has revised its outlooks, to
negative from stable, on U.K.-based IPH-Brammer Holdings Ltd.
(formerly AI Robin TopCo Ltd.) and its two subsidiaries, IPH-
Brammer Finco Ltd. (formerly AI Robin Finco Ltd.) and IPH-Brammer
Midco 3 Ltd. (formerly AI Robin Ltd.).

S&P said, "At the same time, we affirmed our 'B' long-term issuer
credit ratings on all three entities.

"We also affirmed our 'B' issue ratings on the secured EUR765
million first-lien term loan maturing in 2024, and the EUR135
million revolving credit facility (RCF) due 2023. The recovery
rating is unchanged at '3', reflecting our expectation of
meaningful recovery prospects (rounded estimate: 50%) in the event
of a payment default.

"The outlook revision stems from our view that the 2017 merger
between France-based IPH and U.K.-based Brammer has not yet
yielded the financial performance we expected. We also see a risk
that further debt-funded acquisitions could erode EBITDA and cash
generation in 2018. We believe rating pressure could build up over
the coming 6-12 months if the company fails to restore its FFO
interest coverage ratio to 2.5x or higher, and its S&P Global
Ratings-adjusted cash flow after capital expenditure (capex) and
dividends stays below EUR20 million.

"That said, we still believe IPH-Brammer can implement cost
curtailment initiatives to achieve the expected synergies from the
merger, although slower than previously anticipated. Moreover, the
new leadership team could materially revise the company's key
priorities and strategy, leading to leverage commensurate with the
current ratings.

"In our view, the company's ability to deleverage in 2018 could be
compromised if it embarks on debt-funded acquisitions, and if
execution risks in completing the integration of IPH and Brammer
were to dampen the company's financial performance through
additional costs.

"At present, those negative aspects are balanced by the company's
adequate liquidity and by our understanding that the rationale and
fundamentals for the combined entity created last year are still
valid.

"In 2017, the company reported about EUR125 million of EBITDA
(excluding one-off cash costs), which was materially weaker than
our forecast of about EUR155 million. This was due to higher
operating costs than envisaged. Moreover, the company incurred
additional one-off integration cash costs of more than EUR40
million against our projection of EUR30 million. This not only
affected the company's financial performance, but also our view of
the company's ability to generate synergies over the next 12
months.

"For 2018, we now expect reported EBITDA before exceptional one-
off costs will stand at EUR160 million-EUR170 million (reflecting
an unadjusted EBITDA margin of 7%). Moreover, we expect one-off
cash costs in 2018 will total about EUR50 million, which is 60%
higher than we forecast last year.

"Within this scenario, excluding potential cost-curtailment
initiatives and about EUR100 million of additional debt-funded
acquisitions, we foresee absolute adjusted debt increasing
slightly from EUR1.6 billion in 2017 (including the preference
shares as debt). This would lead to an adjusted debt-to-EBITDA
ratio higher than 10.0x, which could trigger a downgrade over the
coming 6-12 months.

"We understand the company could undertake additional material
acquisitions, funded with debt-like instruments, which could
restrict its adjusted free operating cash flow and leverage this
year.

"We still think that IPH-Brammer's business risk profile is
constrained by the group's operations in a highly fragmented
market, subject to high price competition. Moreover, about 20% of
the group's sales are subject to online competition. There are no
significant lead times or contracted volumes that would enable the
group to predict future revenues, so any decline in the top line
usually results in material margin declines, as we have seen in
previous cycles.

"In our opinion, these weaknesses are offset to some extent by the
group's diverse product range, including maintenance, repair, and
overhaul parts used in equipment for manufacturing across many
sectors, such as pulp, paper, and packaging; aerospace;
automotive; food and drink; industrial machinery and metals; and
several types of construction. Typical products are critical
replacement parts to production lines, and include motors,
bearings, and associated products such as cutting tools and
consumables. We view as positive that approximately 75% of sales
are to the aftermarket, because this activity is less cyclical
than the assembly of new production equipment.

"The negative outlook indicates that we could downgrade IPH-
Brammer by one notch over the coming 6-12 months if FFO cash
interest cover does not improve beyond 2.5x, or if an aggressive
acquisition policy affected leverage metrics and cash flow
generation. Adjusted debt to EBITDA above 8x, when including the
preference shares as debt, or FOCF below EUR20 million could also
lead to a downgrade. We see very limited headroom in the rating
for any deviation from our base case.

"We could lower the ratings after material debt- or debt-like-
funded acquisitions that we would perceive as aggressive, given
the current integration phase, or if cash costs in 2018 related to
the integration between IPH and Brammer were to erode cash and
EBITDA, resulting in adjusted FOCF lower than EUR20 million. This
implies FFO interest coverage below 2.5x, leverage materially
higher than 8.0x (including the preference shares as debt), and
cash generation that is insufficient to allow for deleveraging."

Additional pressure could stem from a deterioration of liquidity
from the current adequate level.

Near-term rating upside is unlikely at this stage. S&P said, "We
could revise the outlook to stable if the company were to restore
FFO cash interest coverage to more than 2.5x in 2018. This would
imply higher EBITDA than in our base case, no acquisitions, and no
payments on the preference shares that we would see as interest.
Moreover, the company would need to show a sustained deleveraging
path, allowing leverage to move toward 8.0x."

This might be achieved if IPH-Brammer was able to realize greater
synergies and cost savings from the recent merger than we
currently expect, as well as forego other debt-funded
acquisitions.


INOVYN LTD: S&P Affirms 'BB-' Rating, Outlook Stable
----------------------------------------------------
S&P Global Ratings affirmed its 'BB-' rating on U.K.-based PVC
producer Inovyn Ltd. The outlook is stable.

S&P said, "At the same time, we affirmed our 'BB-' issue ratings
on the company's term loan B. The recovery rating is unchanged at
'3', indicating our expectation of 65% recovery prospects in the
event of a payment default.

"In addition, we withdrew our 'BB-' issue rating, with a recovery
rating of '3', on the term loan A that Inovyn repaid earlier this
month.

"Our assessment of Inovyn's stand-alone credit profile (SACP) as
'bb-', versus 'b+' previously, reflects the company's improved
EBITDA forecast for 2018 at about EUR650 million-EUR700 million.
This results in S&P Global Ratings-adjusted debt to EBITDA of
below 2x -- strong for the 'BB-' issuer credit rating. This takes
into account ongoing robust operating performance, alongside a
conservative financial policy and meaningful deleveraging over the
past few years. Inovyn has repaid its EUR88 million term loan A
from available cash on hand, and we note that management has
tightened its leverage targets on the back of improved EBITDA base
-- with estimated EUR400 million bottom-of-cycle EBITDA -- and
continued voluntary debt repayments out of strong free cash flow."

Inovyn's operating performance continues to be supported by sound
margins in its PVC division, although not as strong as in 2017,
and very favorable market conditions in its caustic soda segment.
The European caustic soda market continues to benefit from fairly
tight supply/demand balance as a result of the phasing-out of the
mercury-based technology. Subsequent shortage in European
capacities continues to result in robust caustic soda margins
realized in the first and second quarters of 2018. PVC margins,
although high, are subject to moderate increases in imports and
low-margin exports. Demand remains favorable, in S&P's view,
although at a portion -- 80% per our estimates -- of its 2007
level.

S&P said, "We believe Inovyn's performance this year will benefit
from continued structural improvement in the company's
profitability, pointing to cost efficiencies and synergies of
EUR200 million since the company was formed in 2015 (from the
combination of Solvay's and Kerling's PVC assets). Although we
believe that further cost savings may emerge, we expect three
turnarounds in 2018, compared with none last year, to contract
EBITDA by EUR15 million-EUR20 million.

"The company's capital structure has been increasingly supportive
of its creditworthiness, in our view, including our projections of
very strong ratios over the next few years. We do not exclude,
however, that Inovyn's markets could soften, notably in caustic
soda, with possible return to mid-cycle margins. We therefore
factor in extra leeway for volatility to the strong core ratios,
taking a prudent approach to our forecast for less than 2x
adjusted debt to EBITDA and above 35% funds from operations (FFO)
to debt.

"Free cash flow will remain fairly strong in our updated base
case, despite possibly increased investments. We do not expect any
material increase in dividends.

"We continue to view Inovyn as a moderately strategic subsidiary
of the Ineos group, and our assessment has no direct rating impact
on the rating on Inovyn at the current SACP level.

"The stable outlook reflects our expectations that the company
should continue reporting very strong profit, cash flows, and
credit metrics amid current favorable cycle conditions. This
results in adjusted debt to EBITDA of 2x or below. There is
headroom in the rating for potentially less favorable markets, as
long as adjusted debt to EBITDA remained below 3x throughout the
cycle.

"Rating pressure could stem from abrupt deterioration in PVC and
caustic soda margins, either from depressed European demand or
from significant new capacities or imports. We would consider a
downgrade if, in these circumstances, we saw adjusted debt to
EBITDA exceed 3x without clear prospects of recovery."

Ratings upside could come from additional deleveraging alongside
sustained profitability and cash flows even in less favorable
conditions than currently. Resilience to volatile and cyclical PVC
markets and a continued conservative financial policy could also
prompt an upgrade.


LEHMAN BROTHERS EUROPE: Scheme of Arrangement Takes Effect
----------------------------------------------------------
In the matter of Lehman Brothers International (Europe) (In
Administration) and in the matter of the Companies Act 2006, an
Order dated June 18, 2018, the Chancery division of the High Court
of Justice (in England and Wales) sanctioned the scheme of
arrangement made pursuant to Part 26 of the Companies Act 2006
between Lehman Brothers International (Europe) and its Scheme
Creditors, and the Scheme became effective on June 20, 2018.

The terms of the Scheme, together with other documents and
information relevant to the Scheme, can be downloaded from the
Company's website at https://is.gd/cCQU0e

Further information in respect of the Scheme and the Scheme
Meetings can be obtained from the website or by contacting the
Company as follows:

By Post: Lehman Brothers International (Europe)
         (in administration)
         Level 23, 25 Canada Square, London, E14-5LQ

By email: schemequeries@lbia-eu.com


LEHMAN BROTHERS HOLDINGS: July 27 Proofs of Debt Deadline Set
-------------------------------------------------------------
Pursuant to Rules 14.29 and 14.31 of the Insolvency (England and
Wales) Rules 2016 (the "Rules"), Derek Anthony Howell,
Anthony Victor Lomas, Steven Anthony Pearson, Julian Guy Parr,
Gillian Eleanor Bruce, all of PricewaterhouseCoopers LLP, the
joint administrators of Lehman Brothers Holdings Plc, intend to
declare a fourth interim dividend to unsubordinated unsecured
creditors within two months from the last date of proving, being
July 27, 2018.

Such creditors are required on or before that date to submit their
proofs of debt to the joint administrators, PricewaterhouseCoopers
LLP, 7 More London Riverside, London SE1 2RT, United Kingdom,
marked for the attention of Diane Adebowale or by email to
lehman.affiliates@uk.pwc.com

Persons so proving are required, if so requested, to provide such
further details or produce such documents or other evidence as may
appear to the joint administrators to be necessary.

The joint administrators will not be obliged to deal with proofs
lodged after the last date for proving but they may do so if they
think fit.

For further information, contact details, and proof of debt
forms, please visit https://is.gd/8GX9cc

Alternatively, please call Diane Adebowale on +44(0)207-212-
3515.

The Joint Administrators were appointed on September 15, 2008.


MABEL TOPCO: S&P Alters Outlook to Negative & Affirms 'B' ICR
-------------------------------------------------------------
S&P Global Ratings said that it revised its outlook on Mabel Topco
Ltd., the parent of U.K.-based restaurant chain Wagamama, to
negative from stable. S&P also affirmed its 'B' long-term issuer
credit rating on Mabel Topco.

S&P said, "At the same time, we affirmed our 'B' issue rating on
the GBP225 million 4.125% senior secured notes due July 2022,
issued by Wagamama Finance PLC, a financing subsidiary of Mabel
Topco. The recovery rating remains unchanged at '4', indicating
our expectation of average (30%-50%) recovery prospects in the
event of a payment default. However, we have revised upward our
rounded estimate to 40% from 35% previously.

"Our outlook revision reflects the continued margin pressure that
Wagamama is experiencing in the context of continuous rising cost
pressures in the U.K. casual dining segment, primarily due to
increasing National Living Wage, food and drinks costs, and
utilities expenses. The cost increases are weighing on the group's
EBITDA growth and free operating cash flow (FOCF) generation that
underpin our current ratings.

"We consider that the U.K. casual dining segment, which has seen
many new entrants and strong growth over the past few years, is
now overcrowded, making inflationary costs increasingly difficult
to pass on to customers. The rising costs and severe competition
have resulted in certain well-known and smaller-scale competitors,
such as Prezzo, Byron, Jamie's Italian, and Carluccios, entering
into Company Voluntary Arrangements with sizable store closures.

"We now forecast that Wagamama's FOCF could turn negative in the
financial year (FY) ending in April 2018 and remain under
continued pressure thereafter. Relative to our previous forecasts,
this reduces the headroom under the current ratings.

"We forecast that S&P Global Ratings-adjusted debt to EBITDA will
reach 9.5x in FY2018 (or 7.2x excluding the unsecured loan notes),
after deducting exceptional costs in relation to the departure of
the group's former CEO and pre-opening costs for new restaurants.
In 2019, adjusted debt to EBITDA could improve marginally toward
8.5x-9.0x (or 6.2x-6.7x excluding the unsecured loan notes).

"Nonetheless, we expect that Wagamama will maintain EBITDAR cash
interest coverage (defined as reported EBITDA before deducting
rent costs over cash interest and rent costs) at 1.7x-1.8x in
FY2018 and 1.8x-1.9x in FY2019. This is owing to the low coupon
rate of 4.125% on Wagamama's GBP225 million senior secured notes
due July 2022, which keeps cash interest expenses low at about
GBP9 million-GBP10 million per year."

Wagamama is primarily based in the U.K. and operates in the highly
fragmented eating-out market. The group manages about 130
restaurants specializing in fresh pan-Asian cuisine under its own
brand name in prime locations across the country. In addition,
there are about 57 franchised restaurants located in Europe and
Middle East.

S&P said, "We foresee a moderating growth trend for Wagamama after
a period of strong performance, as reflected by like-for-like
sales growth of 10% in FY2015, 13% in FY2016, and 8.2% in FY2017.
Given the group's high leverage, we believe that the challenge for
management is to defend EBITDA margins while controlling capital
expenditure (capex) in order to maintain FOCF generation. This
could be difficult due to the U.K.'s rising input costs with
respect to labor, utilities, and food and drinks. We forecast that
Wagamama's adjusted EBITDA margins will gradually decline toward
21% in FY2019 from 23.5% in FY2017 (or toward 13% in FY2019 from
around 15.5% in FY2017 on our reported basis).

"We understand that financial sponsor owners Duke Street and
Hutton Collins are currently exploring exit options. Accordingly,
we see a potential early redemption on the group's GBP225 million
4.125% senior secured notes due July 2022 and unsecured loan
notes, which we continue to treat as debt-like."

S&P's base-case assumptions for Wagamama are:

-- U.K. real GDP growth of 1.3% in 2018 and 1.5% in 2019,
    compared to 1.7% in 2017. U.K. consumer price index inflation
    of 2.3% in 2018 and 1.9% in 2019, compared to 2.7% in 2017.
    S&P considers that the U.K. casual dining segment, which has
    seen many new entrants and strong growth over the past few
    years, is now overcrowded, making inflationary costs
    increasingly difficult to pass on to customers.

-- Sales growth of about 11%-12% in FY2018 and 9%-10% in FY2019,
    supported by moderating yet healthy like-for-like sales
    growth in the U.K., restaurant refurbishments, and around
    five net new restaurant openings in 2018 and around eight in
    2019.

-- A decline in the adjusted EBITDA margin to about 20% in
    FY2018 from 23.5% in FY2017, owing to continued input cost
    pressure and high exceptional costs in relation to the
    departure of the group's former CEO and pre-opening costs for
    new restaurants. The margin could improve to 21% in FY2019
    after exceptional costs moderate.

-- Cash interest expense of GBP9 million-GBP10 million per year,
    thanks to the low coupon rate of 4.125% on Wagamama's GBP225
    million senior secured notes due July 2022.

-- Capex of about GBP32 million-GBP33 million in FY2018,
    reducing to about GBP29 million-GBP30 million in FY2019.

-- Increasing operating lease obligations in line with new
    restaurant openings.

-- No shareholder returns or refinancing.

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

-- Adjusted debt to EBITDA of 9.5x (or 7.2x excluding the
    unsecured loan notes) in FY2018, after deducting exceptional
    costs in relation to the departure of the group's former CEO
    and pre-opening costs for new restaurants. In FY2019, this
    ratio would remain in the range of 8.5x-9.0x (or 6.2x-6.7x
    excluding the unsecured loan notes), on the back of modest
    EBITDA growth and moderated exceptional costs.

-- EBITDAR interest coverage of around 1.7x-1.8x in FY2018 and
    1.8x-1.9x in FY2019. Negative FOCF in FY2018.

S&P said, "We view Wagamama's liquidity as adequate, reflecting
the group's healthy cash balance and undrawn super senior RCF. We
expect the group's available liquidity sources to comfortably
cover its liquidity uses by over 2.5x over the next 12 months. We
forecast that liquidity sources could exceed uses by about GBP40
million even if forecast EBITDA declines by 15%.

"However, we do not assess liquidity as strong as we expect some
level of refinancing would be required in order to absorb high-
impact, low-probability events. We also consider that the group
has satisfactory standing in the credit market."

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

-- Cash on balance sheet of about GBP25 million-GBP30 million;

-- A committed and available RCF of GBP15 million;

-- Forecast cash funds from operations of about GBP25 million-
    GBP30 million; and

-- Working capital inflow of up to GBP5 million.

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

-- Capex of about GBP30 million, of which about GBP8 million-
    GBP10 million is maintenance capex and about GBP6 million-
    GBP8 million is long lead-time capex that S&P sees Wagamama
    as likely to incur even in a downturn; and

-- Seasonal working capital requirements of up to GBP10 million.

Wagamama has a financial covenant that requires it to maintain a
minimum level of EBITDA. S&P forecasts that the group will exhibit
about 35%-40% covenant headroom over the next 12 months.

S&P said, "Our negative outlook reflects our view that there is at
least one-in-three chance that we could lower the ratings on Mabel
Topco over the next 12 months. This could occur if we see a risk
of EBITDA growth prospects weakening or if FOCF remains negative
in FY2019. Our outlook also factors in the competitive pressures
in the U.K. casual dining market, combined with evolving consumer
spending behaviors, which are obliging restaurants to adapt their
business models in order to defend their market positions and
profitability.

"We would lower the ratings if Wagamama's FOCF turns sustainably
negative in FY2019. This could arise if higher input costs
continue to depress margins, and exceptional costs remain high
while the group does not sufficiently reduce capex to retain at
least neutral FOCF. Rating pressure could also develop if margin
pressure led to EBITDAR interest coverage falling toward 1.5x."

Ratings downside pressure could also arise if the financial
sponsor owners increase leverage by adopting a more aggressive
financial policy with respect to growth, investments, or
shareholder returns.

S&P said, "We could consider revising the outlook to stable if
Wagamama demonstrated strong EBITDA growth and low exceptional
costs and capex, resulting in sustainably positive FOCF
generation. This would be accompanied by adjusted EBITDAR interest
coverage improving toward 1.9x, and our view of a more
conservative financial policy with respect to growth and
investments."


TP ICAP: Moody's Affirms Ba1 Corp. Family Rating, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service affirmed the Ba1 Corporate Family Rating
of TP ICAP plc (TP ICAP). The outlook remains stable.

RATINGS RATIONALE

The ratings affirmation reflects Moody's expectation that
acquisition-related cost savings as well as savings from cost
improvement programmes, together with a reduction in the related
costs to achieve these, should support improved levels of cash
available to service the firm's debt notwithstanding continued
revenue pressures from both cyclical and secular factors which
have affected the entire inter-dealer broker industry.

Following the acquisition of the ICAP voice broking unit (IGBB) in
late 2016, TP ICAP is now the largest voice broker globally, a
position which is a positive for creditors as the combined
business has a broader, more diverse revenue base with continued
opportunity for margin improvement through further cost savings.
However, Moody's expects the business to continue to be challenged
by cyclical and structural pressures that have negatively affected
voice broking activity across the sector in recent years.

Moody's said these cyclical and structural pressures were
reflected in TP ICAP's very modest revenue growth in FY2017
compared with FY2016 pro forma combined revenues. However, TP ICAP
nonetheless reported a 10% improvement in average revenue per
broker in FY2017 to GBP579,000. This was the result of significant
headcount reductions implemented as part of a three year cost
improvement programme, which contributed GBP27 million of cost
savings in FY2017. While this programme also incurred GBP32
million in implementation costs in FY2017 (on top of GBP88 million
in integration and acquisition-related costs), Moody's expects
these costs to recede over the remainder of the programme. While
Moody's also expects TP ICAP to continue to invest in its
business, particularly in energy and commodities products that may
be less susceptible to secular pressures, the rating agency
expects the level of acquisition and integration costs to be
appreciably lower going forward.

The stable outlook reflects Moody's expectation that TP ICAP's
gross debt/EBITDA (including Moody's adjustment for operating
leases) should delever to below 2.5x within the next 12 to 18
months through a combination of improved EBITDA generation and
optimised cash levels, allowing for some potential debt reduction
with the maturity of GBP80 million in sterling notes due in June
2019.

Moody's has also withdrawn the instrument-level outlook on the
Corporate Family Rating for business reasons. This has no effect
on the Issuer outlook for TP ICAP which remains stable.

WHAT COULD CHANGE THE RATING - UP

Moody's expects TP ICAP's financial metrics to improve as it
continues to focus on the integration of the IGBB franchise and
achievement of the identified cost synergies. Should further
potential for cost reductions also be realized, leading to further
improvements in the firm's debt service and coverage metrics, the
rating could be upgraded, provided earnings levels are maintained
and shareholder distribution polices are not materially modified.
A rating upgrade could occur should performance in the business
improve materially, such that gross debt/EBITDA falls below 2x on
a sustainable basis.

WHAT COULD CHANGE THE RATING -- DOWN

The rating could be downgraded if cost measures and synergies from
the integration of the IGBB business fail to materialise, if
industry revenues come under further pressure, or if the costs to
re-organize and run TP ICAP's business following the UK's planned
exit from the European Union result in a significant deteriorating
in the firm's EBITDA, weakening leverage beyond 3x with little
prospect for a near-term recovery. Moody's current expectation is
that the integration will present opportunities that will allow
management to stay ahead of these potential challenges. Moody's
also said TP ICAP's rating could be downgraded should it use debt
to materially increase shareholder distributions.

Outlook Actions:

Issuer: TP ICAP plc

-- Outlook, Remains Stable

Affirmations:

Issuer: TP ICAP plc

-- Corporate Family Rating, Affirmed Ba1



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


* S&P Assigns Various RCRs on 24 European Banking Groups
--------------------------------------------------------
S&P Global Ratings that it has assigned long- and short-term
resolution counterparty ratings (RCRs) to the lead operating banks
of 24 banking groups in 10 European countries, and to their 18
branches and subsidiaries. These actions follow the publication of
S&P's RCR methodology on April 19, 2018, the completion of its RCR
jurisdiction assessments on these 10 countries, and its review of
the impact on rated financial institutions.

An RCR is a forward-looking opinion of the relative default risk
of certain senior liabilities that may be protected from default
with an effective bail-in resolution process for the issuing
financial institution. RCRs apply to issuers in jurisdictions
where we assess the resolution regime to be effective, and the
issuer is likely to be subject to a resolution that entails a
bail-in if it reaches nonviability. S&P typically positions the
long-term RCR up to one notch above the long-term issuer credit
rating (ICR) when the ICR ranges from 'BBB-' to 'A+', and up to
two notches when the ICR ranges from 'B-' to 'BB+'. RCR uplift
does not apply to institutions with ICRs of 'AA-' or higher.

The rating actions cover eligible banking groups headquartered in
Germany, Austria, Liechtenstein, Portugal, Malta, Cyprus, Sweden,
Denmark, Norway, and Finland. S&P intends to assign RCRs to banks
in the remaining European countries (Hungary, Greece, Slovenia,
Croatia, and Poland) in the coming weeks. The 10 countries have
each implemented resolution regimes based on the EU Bank Recovery
and Resolution Directive (BRRD). S&P has published detailed
jurisdiction assessments that identify the categories of
liabilities that, in its view, are protected from default risk
under each country's bank resolution framework because they are
identified in the regulation as exempt from bail-in.

S&P said, "We have assigned RCRs only to entities incorporated in
jurisdictions where we assess the resolution regime as effective.
Outside Europe, the only such jurisdiction at present is the U.S.
As a result, our RCRs on U.S. subsidiaries of European groups are
at the same level as the ICRs on those subsidiaries. This outcome
is consistent with the U.S. jurisdiction assessment, which
concluded that there is insufficient visibility on whether certain
senior liabilities have lower default risk than others in a bail-
in resolution."

In particular, in the rating actions:

S&P said, "We have not assigned RCRs to entities unlikely to hold
a material amount of RCR liabilities, which are explicitly
excluded from a bail-in. Examples include nonoperating holding
companies, financing vehicles that issue only senior unsecured or
subordinated debt, and service companies. We have also not
assigned RCRs to entities, for instance second-tier ones in Nordic
countries, for which there is no clearly defined resolution path
or the resolution plan will likely be the sale or partial transfer
of the bank to a stronger institution, rather than a bail-in. Our
criteria make it possible to assign a long-term RCR that exceeds
the foreign currency long-term sovereign rating on the country of
domicile, generally by one notch. This indicates that we see a
considerable likelihood that a sovereign default would not
immediately trigger a default on those banks' RCR liabilities.

"Contrary to our approach for certain banks in Spain and Italy, we
have not assigned RCRs exceeding the foreign currency sovereign
rating to banks in Portugal. In a hypothetical stress scenario, we
believe those banks do not currently have sufficient bail-in-able
liabilities or, in the case of local subsidiaries of stronger
foreign companies, that they may not receive sufficient and timely
support from highly rated parents, to absorb the impact of such an
adverse scenario on their liquidity and capital position.
Therefore, our RCRs on rated Portuguese banks are capped, at best,
at the level of the foreign currency sovereign rating.

"We have assigned a 'B+' long-term RCR to Bank of Cyprus, implying
an uplift of only one notch above the 'B' long-term ICR, as
opposed to the two-notch uplift we can apply. Like all Cypriot
banks, Bank of Cyprus has limited capital market access. Although
it will have to comply with the minimum requirement for own funds
and eligible liabilities, it holds a marginal amount of such
instruments on its balance sheet and we believe issuing such new
instruments in the very short term may be complicated. Hence, we
have little visibility at this stage on resolution authorities'
ability to carry out an orderly resolution plan through a bail in.
Therefore, we position the long-term RCR on Bank of Cyprus only
one notch above the long-term ICR. Once the Bank of Cyprus has
regained full capital market access, we may raise the long-term
RCR on Bank of Cyprus by a second notch, all other factors
remaining unchanged. RCR uplift does not apply to highly rated
institutions with ICRs of 'AA-' or above, such as OP Corporate
Bank in Finland, and Nordea, Swedbank, Skandinaviska Enskilda
Banken, and Svenska Handelsbanken in Sweden. In Germany, we do not
assign RCRs to the individual banks forming the cooperative
banking sector, or to the savings banks forming the Sparkassen-
Finanzgruppe Hessen-Thueringen (SFHT). We believe the regulators
would apply a resolution framework to individual institutions
rather than to the group as a whole. It is unlikely that
individual savings banks in SFHT, or the individual banks in the
cooperative sector, would be subject to a well-defined bail-in
resolution process, given their small size, limited complexity,
and low systemic importance as stand-alone entities. We believe
that group support is the strongest external support element for
member institutions of the cooperative banking sector and those of
the SFHT, including the central institution Landesbank Hessen-
Thueringen Girozentrale (Helaba)."

A list of Affected Ratings can be viewed at:

              https://bit.ly/2Ko0T5n



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


                 * * * End of Transmission * * *