/raid1/www/Hosts/bankrupt/TCREUR_Public/180719.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 19, 2018, Vol. 19, No. 142


                            Headlines


I R E L A N D

AURIUM CLO II: Moody's Assigns B2 Rating to Class F Notes
FORTRESS CREDIT VI: Moody's Gives (P)Ba3 Rating to E-R Notes
LIBRA 31 DAC'S: S&P Assigns BB- Rating to Class E Notes
RICHMOND PARK: Fitch Assigns 'B-sf' Final Rating to Class F Notes


L U X E M B O U R G

AKITA MIDCO: S&P Assigns Preliminary 'B' ICR, Outlook Stable


N E T H E R L A N D S

BARINGS EURO 2014-1: Fitch Rates Class F-RR Notes 'B-sf'
CAIRN CLO VI: Moody's Assigns (P)B2 Rating on Class F-R Notes
DRYDEN 44: S&P Assigns B-(sf) Rating on Class F-R Notes
KANTOOR FINANCE 2018: DBRS Finalizes BB(low) Rating on E Notes


P O L A N D

PFLEIDERER GROUP: Moody's Cuts CFR to B1, Outlook Remain Stable


P O R T U G A L

SAGRES 1: DBRS Raises Rating on Class C Notes to BB


R U S S I A

MKB-LEASING: S&P Lowers Credit Rating to 'B-', Outlook Stable


S W I T Z E R L A N D

LECLANCHE: Negotiates Debt Restructuring with Shareholders


U N I T E D   K I N G D O M

AMPHORA INTERMEDIATE: S&P Assigns 'B' ICR, Outlook Stable
BEALES: Drops Plan to Buy Two More Department Stores
GAUCHO: On Brink of Administration, Hopes to Secure Rescue Deal
GEMGARTO PLC 2018-1: DBRS Assigns Prov. C Rating on Class X Notes
MCLAREN GROUP: S&P Alters Outlook to Negative & Affirms 'B' ICR

NEWDAY FUNDING 2018-1: DBRS Finalizes B(high) Rating to F Notes
POUNDWORLD: To Close Further 40 Stores, 531 Jobs Affected
RG SPILLER: Insufficient Funds Prompt Administration
TRINIDAD MORTGAGE 2018-1: DBRS Finalizes BB Rating on Cl. E Notes
TURBO FINANCE 6: Moody's Affirms Ba1 Rating on Class C Notes

TWIN BRIDGES 2018-1: Moody's Assigns B2 Rating to Class X2 Notes


X X X X X X X X

* S&P Assigns Resolution Counterparty Ratings to Six EU Banks


                            *********



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


AURIUM CLO II: Moody's Assigns B2 Rating to Class F Notes
---------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Aurium CLO II
Designated Activity Company:

EUR210,000,000 Class A Senior Secured Floating Rate Notes due
2029, Definitive Rating Assigned Aaa (sf)

EUR45,500,000 Class B Senior Secured Floating Rate Notes due 2029,
Definitive Rating Assigned Aa2 (sf)

EUR24,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2029, Definitive Rating Assigned A2 (sf)

EUR18,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2029, Definitive Rating Assigned Baa2 (sf)

EUR17,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2029, Definitive Rating Assigned Ba2 (sf)

EUR10,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2029, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the rated notes address the expected
loss posed to noteholders by the legal final maturity of the notes
in 2029. The definitive ratings reflect the risks due to defaults
on the underlying portfolio of loans given the characteristics and
eligibility criteria of the constituent assets, the relevant
portfolio tests and covenants as well as the transaction's capital
and legal structure. Furthermore, Moody's is of the opinion that
the collateral manager, Spire Management Limited, has sufficient
experience and operational capacity and is capable of managing
this CLO.

The Issuer has issued the 2018 Notes in connection with the
refinancing of the following classes of notes: Class A Notes,
Class B Notes, Class C Notes, Class D Notes, Class E Notes and
Class F Notes all due 2029, previously issued on June 22, 2016. On
the refinancing date, the Issuer will use the proceeds from the
issuance of the Refinancing Notes to redeem in full its respective
Original Notes. On the Original Closing Date, the Issuer also
issued EUR 35 million of Subordinated Notes, which remain
outstanding. However, the terms and conditions of the Subordinated
Notes were amended in accordance with the Refinancing Notes'
conditions.

Aurium CLO II Designated Activity Company is a managed cash flow
CLO. At least 90.0% of the portfolio must consist of senior
secured loans and senior secured bonds and up to 10.0% of the
portfolio may consist of unsecured obligations, second-lien loans,
mezzanine loans and high yield bonds. The portfolio is expected to
be fully ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

Spire Management will manage the CLO. It will direct the
selection, acquisition and disposition of collateral on behalf of
the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's 2-year
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk and credit improved
obligations, and are subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

Par amount: EUR 350,000,000

Diversity Score: 48

Weighted Average Rating Factor (WARF): 2780

Weighted Average Spread (WAS): 3.4%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 7.25 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with a local currency
country risk ceiling of A1 or below. Given the portfolio
constraints and the current sovereign ratings in Europe, such
exposure may not exceed 10% of the total portfolio with exposures
to countries with local currency country risk ceiling of Baa1 to
Baa3 further limited to 5%. As a worst case scenario, a maximum 5%
of the pool would be domiciled in countries with A3 and a maximum
of 5% of the pool would be domiciled in countries with Baa3 local
currency country ceiling each. The remainder of the pool will be
domiciled in countries which currently have a local currency
country ceiling of Aaa or Aa1 to Aa3. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class as further described
in the methodology. The portfolio haircuts are a function of the
exposure size to peripheral countries and the target ratings of
the rated notes and amount to 0.75% for the Class A Notes, 0.50%
for the Class B Notes, 0.38% for the Class C Notes and 0% for
classes D, E and F.

Stress Scenarios:

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

Change in WARF: WARF + 15% (to 3197 from 2780)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B Senior Secured Floating Rate Notes: -1

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3614 from 2780)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B Senior Secured Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -2


FORTRESS CREDIT VI: Moody's Gives (P)Ba3 Rating to E-R Notes
------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to two
classes of notes to be issued by Fortress Credit BSL VI Limited.

Moody's rating action is as follows:

USD315,000,000 Class A-R Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

USD29,750,000 Class E-R Deferrable Junior Floating Rate Notes due
2031, Assigned (P)Ba3 (sf)

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

RATINGS RATIONALE

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

Fortress Credit BSL VI is a managed cash flow CLO. The issued
notes will be collateralized primarily by broadly syndicated
senior secured corporate loans. At least 92.5% of the portfolio
must consist of senior secured loans and eligible investments, and
up to 7.5% of the portfolio may consist of first lien last out
loans, second lien loans or senior unsecured loans. Moody's
expects the portfolio to be 100% ramped as of the closing date.

FC BSL VI Management LLC will direct the selection, acquisition
and disposition of the assets on behalf of the Issuer and may
engage in trading activity, including discretionary trading,
during the transaction's 5 year reinvestment period. Thereafter,
the Manager may reinvest unscheduled principal payments and
proceeds from sales of credit risk assets, subject to certain
restrictions.

In addition to the Class A Notes and Class E notes, the Issuer
will issue four other classes of secured notes and one class of
subordinated notes.

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

Methodology Underlying the Rating Action:

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

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

The performance of the notes is subject to uncertainty. The
performance of the 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 notes.

Loss and Cash Flow Analysis:

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 cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders. Therefore,
the expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario and (ii)
the loss derived from the cash flow model in each default scenario
for each tranche. As such, Moody's encompasses the assessment of
stressed scenarios.

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

Par amount: $560,000,000

Diversity Score: 50

Weighted Average Rating Factor (WARF): 3100

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 7.00%

Weighted Average Recovery Rate (WARR): 46.25%

Weighted Average Life (WAL): 9.0 years

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
an additional sensitivity analysis, which was a component in
determining the ratings assigned to the notes. This sensitivity
analysis includes increased default probability relative to the
base case.

Here is a summary of the impact of an increase in default
probability (expressed in terms of WARF level) on the Class A
Notes and Class E Notes (shown in terms of the number of notch
difference versus the current model output, whereby a negative
difference corresponds to higher expected losses), assuming that
all other factors are held equal:

Percentage Change in WARF -- increase of 15% (from 3100 to 3565)

Rating Impact in Rating Notches

Class A Notes: 0

Class E Notes: -1

Percentage Change in WARF -- increase of 30% (from 3100 to 4030)

Rating Impact in Rating Notches

Class A Notes: -1

Class E Notes: -3


LIBRA 31 DAC'S: S&P Assigns BB- Rating to Class E Notes
-------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Libra (European
Loan Conduit No. 31) DAC's class A1, A2, B, C, D, and E notes. At
closing Libra also issued unrated class X notes.

The transaction is backed by one senior loan, which Morgan Stanley
& Co. International PLC (Morgan Stanley) originated in January
2018 to facilitate the refinancing of the light industrial
portfolio initially acquired by MStar Europe L.P. (95%-owned by
Starwood Fund IX and 5%-owned by M7 Real Estate Ltd.).

The senior loan backing this true sale transaction equals EUR282.5
million and is secured by 49 light industrial properties and one
office building in Germany and in the Netherlands (these assets
provided the collateral for the Bilux loan securitised in TAURUS
2015-3 EU DAC CMBS and for the MStar Europe loan securitised in
DECO 2015 CHARLEMAGNE S.A).

The securitized loan balance is 82% of the senior loan (EUR282.5
million) with Morgan Stanley holding a EUR50 million interest that
will rank pari passu with the securitized loan. The issuer has
created a EUR11.63 million (representing 5% of the securitized
senior loan) vertical risk retention loan interest (VRR loan) in
favour of Morgan Stanley to satisfy E.U. and U.S. risk retention
requirements.

LOAN OVERVIEW

Morgan Stanley arranged and underwrote the single loan to
facilitate the refinance of a portfolio of 50 assets located in
major cities across Germany and the Netherlands.

The loan, which matures in January 2021 and has two one-year
extension options amortizes at 0.125% quarterly during years two
and three and at 0.250% quarterly during years four and five. Its
event of default covenants are triggered at an 80% LTV ratio or at
a 7.25% debt yield ratio during years one and two and at 7.75%
during years three to five. An 8.33% debt yield ratio would
trigger a mandatory cash trap event in years one and two while an
8.89% ratio would trigger it during years three to five. An LTV
ratio higher than 74.25% would also trigger a mandatory cash trap.

CREDIT OVERVIEW

S&P said, "We consider that the portfolio can sustain a net cash
flow of EUR28.0 million, which would imply a debt yield of 8.25%.
Our net recovery value for the portfolio is EUR322.5 million,
which represents a 23% haircut (discount) to the open market
valuation.

"In our analysis, we evaluated the underlying real estate
collateral securing the loan to generate an expected case value.
Our analysis focused on sustainable property cash flows and
capitalization rates. We assumed that a real estate workout would
be required throughout the five-year tail period (the period
between the maturity date of the loan that matures last and the
transaction's final maturity date) needed to repay noteholders, if
the respective borrowers defaulted. We then determined the loan
recovery proceeds applying a recovery proceeds rate at each rating
level. This analysis begins with the adoption of base market value
declines and recovery rate assumptions for different rating
levels. At each rating category, we adjusted the base recovery
rates to reflect specific property, loan, and transaction
characteristics.

"We aggregated the derived recovery proceeds above for each loan
at each rating level, and compared them with the proposed capital
structure. Following our credit analysis, we consider the
available credit enhancement for each class of notes to be
commensurate with our ratings on the notes."

  Ratings Assigned

  Libra (European Loan Conduit No. 31) DAC
  EUR221 Million Commercial Mortgage-Backed Floating-Rate Notes

  Class           Rating      Amount

  A1              AAA (sf)     113.7
  A2              AA (sf)       23.7
  B               AA- (sf)      12.4
  C               A- (sf)       28.5
  D               BBB- (sf)     22.9
  E               BB- (sf)      19.7
  X               NR             0.1

  NR--Not rated.


RICHMOND PARK: Fitch Assigns 'B-sf' Final Rating to Class F Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Richmond Park CLO Designated Activity
Company final ratings, as follows:

EUR1.6 million Class X: 'AAAsf'; Outlook Stable

EUR321.9 million Class A: 'AAAsf'; Outlook Stable

EUR18.5 million Class B-1: 'AAsf'; Outlook Stable

EUR15 million Class B-2: 'AAsf'; Outlook Stable

EUR23.1 million Class B-3: 'AAsf'; Outlook Stable

EUR13 million Class C-1: 'Asf'; Outlook Stable

EUR21 million Class C-2: 'Asf'; Outlook Stable

EUR22.8 million Class D: 'BBBsf'; Outlook Stable

EUR31 million Class E: 'BBsf'; Outlook Stable

EUR14.3 million Class F: 'B-sf'; Outlook Stable

EUR67.55 million subordinated notes: not rated

Richmond Park CLO Designated Activity Company is a cash flow
collateralised loan obligation (CLO). Net proceeds from the
issuance of the notes are being used to reset a portfolio of
EUR515 million of mostly European leveraged loans and bonds. The
portfolio is actively managed by Blackstone/GSO Debt Funds
Management Europe Limited. The CLO envisages a three-year
reinvestment period and a seven-year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of the obligors in the 'B'
range. The Fitch weighted average rating factor (WARF) of the
identified portfolio is 32, below the indicative maximum covenant
of 33.

High Recovery Expectations

At least 90% of the portfolio will consist of senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch weighted average recovery rate (WARR) of the
identified portfolio is 67.1%, above the minimum covenant of 64.6%

Stress Portfolio

For the analysis, Fitch created a stress portfolio based on the
transaction's portfolio profile tests and collateral quality
tests. These included a top 10 obligor limit at 20%, a seven-year
weighted average life, a top industry limit at 17.5% with the top
three industries at 40%, and a maximum 'CCC' bucket at 7.5%.

Limited Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 2.9% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

RATING SENSITIVITIES

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

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

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



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


AKITA MIDCO: S&P Assigns Preliminary 'B' ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B' long-
term issuer credit rating to Akita MidCo Sarl, the new parent and
owner of Luxembourg-based chemicals distributor Azelis
Finance S.A. The outlook is stable.

S&P said, "At the same time, we affirmed our 'B' long-term issuer
credit rating on Azelis. The outlook is stable.

"We also assigned our preliminary 'B' long-term issue rating to
the proposed first-lien debt, including EUR765 million of euro-
and British pound sterling-denominated senior secured term loans
and a senior secured revolving credit facility (RCF) to be issued
by Akita BidCo Sarl, fully owned by Akita Midco and parent of
Azelis. The recovery rating is '3', indicating our expectation of
recovery prospects in the 50%-70% range (rounded estimate: 50%).

"We also affirmed our 'B' long-term issue and '3' recovery ratings
(rounded estimate: 50%) on the company's existing first-lien
debts. We will withdraw these ratings when the debt is repaid.

"Our preliminary ratings are subject to our review of the final
terms and conditions of the proposed instruments, including for
the preferred equity instrument to be set up as part of the
financing structure."

The ratings reflect the capital structure being set up as part of
the acquisition of Azelis by EQT and PSP, combined with the
business' continued favorable and modestly improving operating
performance. The transaction is expected to close in October or
November 2018. S&P said, "Our base case for Azelis for 2018
estimates adjusted EBITDA of about EUR139 million, or a margin of
about 7.5%, translating to about 8x adjusted debt to EBITDA. We
view the structure as highly leveraged at closing, although we
expect the company's recurring positive free cash flow and growth
prospects will result in leverage reduction over time. Key
positives for the ratings are also the business' relative
resilience as a fairly diversified chemical products distributor,
and favorable interest coverage ratios for forecast EBITDA and
funds from operations (FFO). This is despite potential continued
bolt-on acquisitions, as per Azelis' track record, which will
likely weigh on cash available for debt service."

S&P said, "Our view of Azelis' business risk profile as fair takes
into account the company's pan-European and North American
positions as a top player in the specialty chemicals distribution
business. Although we view relatively thin margins as inherent to
the industry, we consider that Azelis' profitability is fairly
resilient, reflecting diversity of the business by product type,
end uses, and end markets, and favorable market positions. We also
view the company's acquisitive strategy as sound growth
management. Nevertheless, despite bolt-on mergers and
acquisitions, we continue to view Azelis' size and scope as
relative weaknesses. In addition, we think some cyclical end-
market exposures, as well moderate concentration toward the
principals could generate earnings volatility. These factors
constrain our business risk assessment.

"With adjusted debt to EBITDA of about 8x in 2018, we view the
financing structure as highly leveraged and more aggressive. We
therefore consider that headroom at the 'B' rating level has
deteriorated, as reflected in weaker leverage, interest coverage,
and free cash flows. Nevertheless, our assessment factors in
continued positive free cash flow, although lessened, and
favorable coverage ratios as compared with the leverage level. Our
assessment is also constrained by the company's current and
planned private equity ownership."

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

-- Growth of 3%-5% per year from 2018, factoring in bolt-on
    acquisitions. An S&P Global Ratings' unadjusted EBITDA margin
    of about 7% in 2018 and 2019.

-- Volatile, seasonal, and modestly increasing working capital
    needs.

-- Capital expenditures (capex) of about EUR7 million per year.
    EUR15 million-EUR30 million in acquisitions per year.

-- No dividends.

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

-- Positive free cash flows of EUR25 million-EUR50 million per
    year, depending on working capital swings.

-- Adjusted debt to EBITDA of 8x in 2018, modestly improving
    toward 7x in 2019 mostly from EBITDA growth.

-- Adjusted FFO to cash interest of 2.4x in 2018.

S&P said, "We assess Azelis' liquidity as adequate, both before
and after the takeover transaction, since we expect sources to
exceed uses by more than 1.3x over the next 12 months. We expect
comfortable leeway under the expected maintenance and springing
covenants, to be set with 40% headroom. We don't believe Azelis
meets enough quantitative factors for a higher assessment."

Principal liquidity sources for the 12 months following the
transaction include:

-- Cash on the balance sheet at closing.
-- EUR100 million available under the RCF at closing.
-- Cash FFO of about EUR50 million-EUR60 million.
-- Proceeds from the debt issuance, net of debt repaid and
    transaction fees.

Principal liquidity uses during the same period include:

-- Minimal contractual debt maturities.
-- EUR7 million in capex.
-- Potentially large working capital swings of up to EUR30
    million.
-- Acquisitions assumed at EUR15 million-EUR30 million per year.

S&P said, "The stable outlook on both the parent and Azelis
reflects our expectation of Azelis' resilient operating
performance, supported by business diversity and operational
efficiencies. This should translate into modest EBITDA growth and
a margin sustained at or above 7%, in our view, and positive free
cash flow generation. We expect modest deleveraging in the coming
years, and FFO to amply cover cash interests by at least 2x."

Pressure on the ratings may arise, either from adverse market
developments weighing on EBITDA or FFO, or a rising interest rate
environment resulting in less than 2x FFO cash interest coverage.
Any deterioration in margin or free cash flow, or an unexpected
acquisition that would increase leverage would likely trigger a
downgrade.

Rating upside is limited at the current level given the high
amount of debt in the proposed capital structure. But it could
result from adjusted debt to EBITDA improving to below 5x with a
commitment from the sponsor to maintain lower leverage.



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


BARINGS EURO 2014-1: Fitch Rates Class F-RR Notes 'B-sf'
--------------------------------------------------------
Fitch Ratings has assigned Barings Euro CLO 2014-1 B.V. reissuance
notes final ratings, as follows:

EUR1,500,000 Class X: 'AAAsf'; Outlook Stable

EUR232,000,000 Class A-RR: 'AAAsf'; Outlook Stable

EUR15,700,000 Class B-1-RR: 'AAsf'; Outlook Stable

EUR30,000,000 Class B-2-RR: 'AAsf'; Outlook Stable

EUR24,700,000 Class C-RR: 'Asf'; Outlook Stable

EUR20,900,000 Class D-RR: 'BBBsf'; Outlook Stable

EUR31,500,000 Class E-RR: 'BBsf'; Outlook Stable

EUR13,900,000 Class F-RR: 'B-sf'; Outlook Stable

EUR43,750,000 subordinated notes: not rated

Barings Euro CLO 2014-1 B.V., formerly Babson Euro CLO 2014-1
B.V., is a cash flow collateralised loan obligation (CLO). On the
issue date, assets in the existing transaction have been
liquidated and the proceeds were used to redeem the existing
notes. Net proceeds from the new notes were then used to purchase
back the portfolio. The new eligibility criteria are required to
be satisfied only in respect of the assets purchased after the
issue date. The portfolio is managed by Barings (U.K.) Limited The
refinanced CLO envisages a reinvestment period ending July 15,
2022 and a 8.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B/B-' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors at the
'B'/'B-' categories. The Fitch- calculated weighted average rating
factor (WARF) of the underlying portfolio is 33.96, below the
maximum covenanted WARF of 35.5.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-calculated weighted average recovery rate (WARR)
of the identified portfolio is 63.37%, above the minimum
covenanted WARR of 62%.

Diversified Asset Portfolio

The transaction contains two covenants that limit the top 10
obligors in the portfolio to 18% and 26.5%, respectively, of the
portfolio balance. This covenant ensures that the asset portfolio
will not be exposed to excessive obligor concentration. The
transaction also includes limits on maximum industry exposure
based on Fitch's industry definitions. The maximum exposure to the
three largest Fitch-defined industries in the portfolio is
covenanted at 40%.

Limited Interest Rate Risk

Unhedged fixed-rate assets must be within 10% and 17.5% of the
portfolio while there are 7.5% fixed-rate liabilities. Therefore
the interest rate risk is partially hedged.

Adverse Selection and Portfolio Management

The transaction is governed by collateral quality and portfolio
profile tests, which limit potential adverse selection by the
manager. These limitations are based, among others, on Fitch
ratings and recovery ratings.

Limited FX Risk

The transaction is allowed to invest up to 20% of the portfolio in
non-euro-denominated assets, provided these are hedged with
perfect asset swaps within six months at settlement.

TRANSACTION SUMMARY

The issuer amended the capital structure and reset the maturity of
the notes as well as the reinvestment period. The four0-year
reinvestment period is scheduled to end in 2022. The issuer
introduced the new class X notes, the interest payment of which
rank pari passu and pro-rata to the class A-RR notes. Principal on
these notes is scheduled to amortise in four equal instalments
starting from the first payment date. Class X notional is excluded
from the over-collateralisation test calculation, but a breach of
this test will divert interest and principal proceeds to the
repayment of the class X notes.

RATING SENSITIVITIES

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

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

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


CAIRN CLO VI: Moody's Assigns (P)B2 Rating on Class F-R Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to refinancing notes to be issued by
Cairn CLO VI B.V.:

EUR212,000,000 Class A-R Senior Secured Floating Rate Notes due
2029, Assigned (P)Aaa (sf)

EUR42,100,000 Class B-R Senior Secured Floating Rate Notes due
2029, Assigned (P)Aa2 (sf)

EUR19,600,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2029, Assigned (P)A2 (sf)

EUR17,150,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2029, Assigned (P)Baa2 (sf)

EUR24,000,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2029, Assigned (P)Ba2 (sf)

EUR8,700,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2029, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the notes address the expected loss
posed to noteholders by the legal final maturity of the notes in
2029. The provisional 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.
Furthermore, Moody's is of the opinion that the collateral
manager, Cairn Loan Investments LLP, has sufficient experience and
operational capacity and is capable of managing this CLO.

The Issuer will issue the Refinancing Notes in connection with the
refinancing of the following classes of notes: Class A Notes,
Class B Notes, Class C Notes, Class D Notes, Class E Notes and
Class F Notes due 2029, previously issued July 2016. On the
Refinancing Date, the Issuer will use the proceeds from the
issuance of the Refinancing Notes to redeem in full the Original
Notes. On the Original Closing Date the Issuer also issued two
classes of Subordinated Notes, which will remain outstanding.

The main change to the terms and conditions occurring in
connection to the refinancing is the extension of the Weighted
Average Life Test by 12 months to a total of 7 years from the
refinancing date. Furthermore, for provisional ratings the base
case WARF covenant has been increased to 2880; in line with this,
it is expected that the Manager is able to choose from a new set
of collateral quality test covenants for reinvestment purposes.

Cairn CLO VI B.V. is a managed cash flow CLO with a target
portfolio made up of EUR 350,000,000 par value of mainly European
corporate leveraged loans. At least 90% of the portfolio must
consist of senior secured loans and senior secured bonds and up to
10% of the portfolio may consist of unsecured senior loans,
second-lien loans or, mezzanine loans. The portfolio is expected
to be 100% ramped up as of the Refinancing Date and to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe.

Cairn will actively manage the collateral pool of the CLO. It will
direct the selection, acquisition and disposition of collateral on
behalf of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's remaining 2-year
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk and credit improved
obligations, and are subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

The performance of the notes is subject to uncertainty. The
performance of the 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 notes.

Loss and Cash Flow Analysis:

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 cash
flow model evaluates all default scenarios that are then weighted
considering the probabilities of the binomial distribution assumed
for the portfolio default rate. In each default scenario, the
corresponding loss for each class of notes is calculated given the
incoming cash flows from the assets and the outgoing payments to
third parties and noteholders. Therefore, the expected loss or EL
for each tranche is the sum product of (i) the probability of
occurrence of each default scenario and (ii) the loss derived from
the cash flow model in each default scenario for each tranche. As
such, Moody's encompasses the assessment of stressed scenarios.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the 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: EUR 350,000,000

Defaulted par: EUR 0

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2880

Weighted Average Spread (WAS): 3.70%

Weighted Average Recovery Rate (WARR): 43.0%

Weighted Average Life (WAL): 7 years

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

Stress Scenarios:

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

Percentage Change in WARF -- increase of 15% (from 2880 to 3312)

Rating Impact in Rating Notches:

Class A-R Senior Secured Floating Rate Notes: 0

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

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

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

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

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

Percentage Change in WARF -- increase of 30% (from 2880 to 3744)

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

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

Class C-R Senior Secured Deferrable Floating Rate Notes: -4

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

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

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


DRYDEN 44: S&P Assigns B-(sf) Rating on Class F-R Notes
-------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Dryden 44 Euro
CLO 2015 B.V.'s class A-1-R, A-2-R, B-1-R, B-2-R, C-R, D-R, E-R,
and F-R refinancing notes. At the same time, we have withdrawn our
ratings on the original classes of notes.

The transaction is a collateralized loan obligation (CLO) managed
by PGIM Ltd.

On July 16, 2018, the issuer refinanced the original class A-1 to
F notes by issuing replacement notes of the same notional for each
class. The replacement notes are largely subject to the same terms
and conditions as the original notes, except for the following:

-- The replacement notes have a lower spread over Euro Interbank
    Offered Rate (EURIBOR) than the original notes.

-- The portfolio's maximum weighted-average life has been
    extended by 15 months to Oct. 15, 2025.

-- The portfolio manager no longer has to comply with any
    minimum portfolio weighted-average recovery rate test.
    However, the manager still has to test its compliance with
    our CDO Monitor test during the reinvestment period.

S&P said, "We have analyzed the portfolio by applying our "Global
Methodologies And Assumptions For Corporate Cash Flow And
Synthetic CDOs" criteria, published on Aug. 8, 2016. In our credit
and cash flow analysis, we have taken into account the fact that
the transaction allows the collateral manager to reinvest for a
further two years and change the credit risk profile of the
transaction. We have therefore capped the ratings on the
liabilities to the ratings originally assigned in June 2016.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that the replacement
notes have adequate credit enhancement available at the current
rating levels."

           Notional        Replacement notes    Original notes
  Class   (mil. EUR)       interest rate (%)    interest rate (%)
  A-1-R      232.40            6mE+0.72              6mE+1.45
  A-2-R      12.30             0.884                 1.66
  B-1-R      17.20             6mE+1.35              6mE+2.15
  B-2-R      26.00             2.00                  2.52
  C-R        23.00             6mE+1.90              6mE+3.20
  D-R        18.70             6mE+2.95              6mE+4.30
  E-R        28.10             6mE+5.60              6mE+6.50
  F-R        11.80             6mE+7.60              6mE+8.55

  6mE--Six-month EURIBOR.

  Ratings Assigned
  Replacement     Rating              Amount class
                                       (mil. EUR)

  A-1-R           AAA (sf)              232.4
  A-2-R           AAA (sf)               12.3
  B-1-R           AA (sf)                17.2
  B-2-R           AA (sf)                26.0
  C-R             A (sf)                 23.0
  D-R             BBB (sf)               18.7
  E-R             BB- (sf)               28.1
  F-R             B- (sf)                11.8
  Sub             NR                     43.4

  Ratings Withdrawn

  Class              Rating
                  To            From

  A-1             NR            AAA (sf)
  A-2             NR            AAA (sf)
  B-1             NR            AA (sf)
  B-2             NR            AA (sf)
  C               NR            A (sf)
  D               NR            BBB (sf)
  E               NR            BB- (sf)
  F               NR            B- (sf)

  NR--Not rated.


KANTOOR FINANCE 2018: DBRS Finalizes BB(low) Rating on E Notes
--------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of the
following classes of notes issued by Kantoor Finance 2018 DAC (the
Issuer):

-- Class A at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (low) (sf)

All trends are Stable.

Kantor Finance 2018 DAC is a EUR 247.8 million securitization (the
Transaction) of two Dutch senior commercial real estate loans (the
PPF loan and the Iron loan) including the pari passu capex
facility associated with the Iron loan, all advanced by Goldman
Sachs Bank USA (together with Goldman Sachs International, GS).
The loans are secured against 18 predominantly office assets
located in the Netherlands (the Portfolio) owned by PPF Group and
Aventicum Capital Management (the Sponsors).

The PPF Loan served to refinance an existing portfolio of seven
office properties, one office/leased hotel and one retail property
across the Netherlands and owned by PPF since 2014. The allocated
loan amount of the portfolio is EUR 184.97 million, which results
in a day-one loan-to-value (LTV) of 61.0% based on CB Richard
Ellis's (CBRE) valuation of EUR 302.99 million and dated 27
February 2018. As at 1 June 2018 (the PPF cut-off date), the
properties were 77.3% occupied (or 84.1% when excluding the vacant
property located at Hofplein 19, Rotterdam, which is currently
under refurbishment) by 91 different tenants and PPF has projected
a 2018 net operating income (NOI) of EUR 20.08 million, which
implies a net initial yield (NIY) of 6.6% and a conservative day-
one debt yield (DY) of 10.9%. DBRS's net cash flow assumption is
EUR 16.2 million. The loan carries a floating interest rate equal
to the three-month Euribor (subject to zero floors) plus a margin
of 2.4% and is fully hedged with an interest rate cap strike of
1.5% purchased from HSBC Bank Plc. The expected loan maturity is
in May 2023, and the loan amortizes by 1.0% p.a. in Years 2 to 4
and 2.0% p.a. in Year 5.

The Iron loan served to fund the acquisition of nine office
properties also located in the Netherlands. The properties were
acquired through a couple of transactions: the first six-office
portfolio (Iron I) was purchased in October 2017 from Kildare
Partners (the Graafsebaan 67 was sold after acquisition), and the
second four-office portfolio (Iron II) was acquired in March and
April 2018 from Angelo Gordon and ASR Real Estate. GS provided the
Sponsor with EUR 58.4 million of acquisition financing and a EUR
4.5 million pari passu-ranking capex facility through two
different tranches for the Iron I and Iron II portfolios. The LTV
of the loan is 71.1% based on total loan amount and EUR 88.4
million current market value (MV) or 66.0% based on term loan
only. As at June 1, 2018 (the Iron loan cut-off date, together
with the PPF loan cut-off date, the cut-off date), the portfolio
is 85.7% occupied by 70 tenants, with the largest five tenants
accounting for 41.9% of the EUR 8.5 million gross rental income
(GRI). Based on a sponsor-projected 12-month NOI of EUR 5.9
million, the loan benefits from a moderate day-one DY of 10.2% and
the NIY is 6.7%. DBRS's net cash flow assumption is EUR 4.8
million. The loan bears interest at a floating interest rate equal
to the three-month Euribor (subject to zero floor) plus a margin
of 3.40% and 3.50% for the Iron I and Iron II tranches,
respectively. The loan is also fully hedged with an interest rate
cap strike of 0.5% provided by Natixis, London Branch. The
expected loan maturity is five years from the first utilization
date, in October 2022, and the loan structure includes
amortization of 1.0% p.a. in Years 2 to 4 and 2.0% p.a. in Year 5.

The transaction benefits from a liquidity facility of EUR 14.3
million, or 6.1% of the total outstanding balance of the notes,
provided by ING Bank NV (the Liquidity Facility Provider). The
liquidity facility can be used to cover interest shortfalls on the
class A, class B, class C and class D notes. According to DBRS's
analysis, the commitment amount, as at closing, will be equivalent
to approximately 29 months and 19 months' coverage for the covered
notes, based on the weighted-average interest rate cap strike rate
of 1.25% p.a. and the Euribor cap after loan maturity of 5% p.a.,
respectively.

The Iron loan will mature on November 15, 2022 while the PPF loan
will mature six months later on May 15, 2023. Neither loan has an
extension option. Meanwhile, the Transaction is expected to repay
by May 22, 2023, one week after the maturity of PPF loan. Should
the notes fail to be repaid by then, this will constitute, among
others, a special servicing transfer event and the Transaction has
envisaged a five-year tail period to allow the special servicer to
work out the loan(s) by May 2028 the latest.

Class E is subjected to an available funds cap where the shortfall
is attributable to an increase in the weighted-average margin of
the notes.

The Transaction includes a Class X diversion trigger event,
meaning that if the loans' financial covenants are breached, any
interest and prepayment fees due the Class X note holders will be,
instead, paid directly in the Issuer transaction account and
credited to the Class X diversion ledger. However, only following
the expected note maturity or the delivery of a note acceleration
notice, such funds can potentially be used to amortize the notes.

To maintain compliance with applicable regulatory requirements, GS
has retained an ongoing material economic interest of not less
than 5% of the securitization via an issuer loan that was advanced
by Goldman Sachs Bank USA.

Notes: All figures are in euros unless otherwise noted.



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


PFLEIDERER GROUP: Moody's Cuts CFR to B1, Outlook Remain Stable
---------------------------------------------------------------
Moody's Investors Service has downgraded to B1 from Ba3 the
corporate family rating (CFR) and to B1-PD from Ba3-PD the
probability of default rating (PDR) of Poland-based engineered
wood manufacturer Pfleiderer Group S.A. Concurrently, Moody's
downgraded to B1 from Ba3 the instrument ratings on the planned
increased EUR480 million senior secured term loan B (TLB, maturing
2024) and the EUR100 million equivalent senior secured revolving
credit facility (RCF, maturing 2022), raised by PCF GmbH, a direct
subsidiary of Pfleiderer. The outlooks on Pfleiderer Group S.A.
and PCF GmbH remain stable.

The rating action follows the group' proposed amendments of its
senior secured credit facilities, including a EUR130 million
upsize of the senior secured TLB to EUR480 million from EUR350
million, with the proceeds being available for a potential up to
EUR130 million return to shareholders via share repurchases and to
pay transaction related fees and expenses.

RATINGS RATIONALE

The downgrade to B1 primarily considers Pfleiderer's increasing
indebtedness post the proposed EUR130 million upsize of its term
loan B commitments to EUR480 million, which will lift its leverage
ratio by about one EBITDA turn. On a pro forma basis as of March
31, 2018, Pfleiderer's leverage as adjusted by Moody's increases
to around 4.7x gross debt/EBITDA (from 3.7x), which compares very
weakly to Moody's maximum leverage guidance of 3.5x for a Ba3
rating. Moreover, given the higher debt levels, Moody's expects
the group's interest costs to increase by around EUR5 million per
annum, which will constrain interest cover and cash flow metrics.
In particular, Moody's forecasts Pfleiderer's free cash flow to
turn slightly negative over the next 12-18 months, which, besides
higher interest payments, also reflects substantial maintenance
and project-related capital expenditures for capacity extensions
and strategic projects (e.g. new lacquering line in Leutkirch) of
close to EUR80 million in total per annum this and next year.

The stable outlook reflects that the rating positioning of
Pfleiderer in the B1 rating category should gradually improve over
the next few years, recognizing the currently benign economic
environment and consumer confidence in the group's core western
and eastern European regions (mainly Germany and Poland), which
should facilitate ongoing moderate topline and profit growth
through 2018 and 2019. Expecting competition in the industry to
remain fierce though, Moody's projects profit margins to modestly
expand, supported by a gradual growth in higher value-added
products, selling price increases to at least compensate recent
input cost inflation, and ongoing cost cutting measures. Base case
EBITDA on a Moody's-adjusted basis is forecast to exceed EUR160
million (14.5% margin) by 2019 and thereby support steady de-
leveraging towards 4x debt/EBITDA by year-end 2019 (assuming no
voluntary debt prepayments), thus positioning the rating more
strongly within the B1 rating. In addition, the stable outlook is
predicated on the ability of Pfleiderer to return to positive free
cash flow (Moody's defined) generation by 2020, while expected
negative in 2018 and around breakeven next year. While this should
be supported by no exceptional shareholder remuneration following
the proposed share buy-back this year, the downgrade primarily
reflects the group's increasingly aggressive financial policy,
also demonstrated by more than EUR54 million of share repurchases
over the last 18 months and its dividend policy, which allows for
profit distributions of up to 70% of consolidated net income. That
said, any additional exceptional shareholder returns, which would
further stretch credit metrics would exert negative pressure on
the stable outlook and/or the B1 rating.

LIQUIDITY

Pfleiderer's liquidity is solid. As of March 31, 2018, the group
had about EUR57 million of cash on the balance sheet, which,
together with expected funds from operations of more than EUR100
million per annum, should be sufficient to cover its basic cash
needs over the next 12-18 months. Main cash uses comprise capex of
close to EUR80 million (including expansion capex for strategic
projects), working capital consumption of EUR5-10 million and
regular dividends of around EUR20 million p.a.

Liquidity further benefits from the group's EUR100 million dual-
currency (EUR and PLN) RCF, which was largely undrawn (no cash
drawings) as of March 31, 2018, while it may be occasionally
utilized for working capital spending and/or acquisitions. There
is one springing covenant (net leverage ratio) attached to the
RCF, which needs to be tested if the facility is drawn (cash
drawings) by more than 30%. As part of the facilities amendment,
the group has proposed to temporarily increase the covenant level
to 3.75x from 3.5x (stepping down to 3.5x by March-end 2020),
which Moody's expects Pfleiderer to comply with at all times.

Given Pfleiderer's non-amortizing debt, there will be no debt
maturing before the expiry of the term loan in 2024.

STRUCTURAL CONSIDERATIONS

Following the transaction, Pfleiderer's capital structure will
consist of the proposed EUR480 million senior secured TLB
(maturing 2024) and the existing EUR100 million equivalent senior
secured revolving credit facility (RCF, maturing 2022). Both
instruments rank pari passu in terms of priority of claims, share
the same security interest, including pledges over certain assets
of the group and material subsidiaries, and are guaranteed by
group entities accounting for at least 85% of consolidated EBITDA
and gross assets. Moody's assumes a standard 50% recovery rate
assumption, given the covenant-lite language of the loan
documentation. The facilities are rated B1 (LGD3) in line with the
CFR.

OUTLOOK

The stable outlook assumes modest organic topline and earnings
growth with margins around current levels (e.g. Moody's-adjusted
EBITDA margin over 14%), supporting de-levering towards 4x
Moody's-adjusted debt/EBITDA over the next 18 months. The outlook
also reflects Moody's expectation of a return to modestly positive
free cash flow generation by 2020 at the latest and no additional
excessive shareholder distributions.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings would build, if (1) Moody's-
adjusted EBITDA margins sustainably improve towards 15%, (2)
leverage declines below 3.5x Moody's-adjusted debt/EBITDA, and (3)
free cash flow turns sustainably positive with high single-digit
Moody's-adjusted FCF/Debt metrics. Moreover, an upgrade would
require the group to establish a more balanced financial policy.

Downward pressure on the ratings would build, if (1) Moody's-
adjusted EBITDA margin drops sustainably below 13%, (2) or
leverage increases towards 5x Moody's-adjusted Debt/EBITDA, in
particular due to further shareholder-friendly measures, and (3)
free cash flow turns consistently negative.

PRINCIPAL METHODOLOGY

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

Pfleiderer Group S.A., headquartered in Wroclaw, Poland, is one of
the leading European manufactures of ecological wood-based
products and solutions. The group serves customers in the
furniture and construction industry, employs approximately more
than 3,6500 people and operates nine production facilities across
Germany and Poland. For the 12 months ended March 31, 2018,
Pfleiderer reported group net sales of EUR1,023 million and EBITDA
of around EUR126 million.

Pfleiderer is majority-owned by investment firms Strategic Value
Partners LLC and Atlantik S.A. (together holding approximately 49%
of the share capital) and has been listed as Pfleiderer Group S.A.
on the Warsaw Stock Exchange since January 2016.



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


SAGRES 1: DBRS Raises Rating on Class C Notes to BB
---------------------------------------------------
DBRS Ratings Limited took the following rating actions on the
Class A Notes, Class B Notes and Class C Notes (together, the
Rated Notes) issued by SAGRES - Sociedade de Titularizacao de
Creditos, S.A. (Ulisses Finance No. 1) (the Issuer):

-- Class A Notes confirmed at A (sf)
-- Class B Notes upgraded to BBB (high) (sf) from BBB (sf)
-- Class C Notes upgraded to BB (sf) from BB (low) (sf)

Additionally, DBRS removed the Under Review with Positive
Implications (UR-Pos.) status on the Rated Notes, where they were
placed on May 11, 2018 following the upgrade of the Republic of
Portugal's Long-Term Foreign and Local Currency -- Issuer Ratings
to BBB from BBB (low).
The rating actions follow an annual review of the transaction and
are based on the following analytical considerations:

-- The updated default rates and expected loss assumptions,
    reflecting the upgrade of the Portuguese sovereign rating;

-- The overall portfolio performance as of the June 2018 payment
    date, particularly with regard to delinquencies and defaults;
    and

-- The current level of credit enhancement (CE) available to the
    Rated Notes to cover the expected losses assumed in line with
    their respective rating levels.

The ratings on the Rated Notes address the timely payment of
interest and ultimate payment of principal on or before the Final
Legal Maturity Date in March 2033.

The Issuer is a Portuguese securitization of auto loan receivables
granted and serviced by 321 Credito - Instituicao Financeira de
Credito, S.A. (321C). The transaction closed in July 2017 and has
a 12-month revolving period scheduled to end on the July 2018
payment date.

As at June 20, 2018, the balance of the Class A Notes was EUR
120.1 million, the balance of the Class B Notes was EUR 7.0
million and the balance of the Class C Notes and Class D Notes was
EUR 7.1 million each. The EUR 141.2 million portfolio (excluding
defaulted receivables) includes loans granted to finance the
purchase of mainly used vehicles (over 99% of the pool). The
structure also includes the EUR 3.5 million Class E Notes, which
were issued to fund the Cash Reserve Account and to pay the up-
front premium to the Cap Counterparty and other expenses.

PORTFOLIO PERFORMANCE

As at the June 2018 payment date, total delinquencies represented
1.5% of the outstanding principal balance of the portfolio; the
gross cumulative defaults were EUR 174,154.6.

PORTFOLIO ASSUMPTIONS

DBRS kept its expected probability of default (PD) and its base
case recovery rate (RR) assumptions at 6.1% and 26.0%,
respectively. However, the sovereign-adjusted PD and RR
assumptions were updated to 7.3% and 25.4%, reflecting DBRS's
upgrade of Portugal's Long-Term Foreign Currency rating to BBB
with a Stable trend on 20 April 2018.

CREDIT ENHANCEMENT

CE is provided by the subordination of the junior obligations and
the Cash Reserve Account. As at the June 2018 payment date, the
Class A Notes' CE was 16.4%, the Class B Notes' CE was 11.4% and
the Class C Notes' CE was 6.4%.

The Cash Reserve Account is available to cover senior expenses and
interest shortfalls on the Rated Notes. It also provides credit
support to the Rated Notes through the subordination to the Class
A, Class B and Class C Principal Deficiency Ledgers. Since
closing, this account has been funded with EUR 2.0 million and its
target level is set at 1.5% of the Rated Notes balance, subject to
a EUR 1.3 million floors.

Citibank N.A., London branch (Citibank London) is the Accounts
Bank for the transaction. On the basis of the DBRS private ratings
of Citibank London and the mitigants outlined in the transaction
documents, DBRS considers the risk arising from the exposure to
the Accounts Bank to be consistent with the ratings assigned to
the Rated Notes, as described in DBRS's "Legal Criteria for
European Structured Finance Transactions" methodology.

The transaction is exposed to interest rate risk as the Rated
Notes are indexed to one-month Euribor and the majority of the
securitized loans (89.9% of the portfolio by loan balance) pay
fixed interest rates. In order to mitigate this interest rate
mismatch, the Issuer entered into an interest rate cap agreement
with Deutsche Bank AG, London branch (DB London). The DBRS private
rating of DB London is consistent with the ratings assigned to the
Rated Notes, as described in DBRS's "Derivative Criteria for
European Structured Finance Transactions".

Notes: All figures are in euros unless otherwise noted.



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


MKB-LEASING: S&P Lowers Credit Rating to 'B-', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on Russia-based
MKB-Leasing to 'B-' from 'B+'. The outlook is stable. S&P affirmed
its 'B' short-term rating on the company.

The downgrade reflects Credit Bank of Moscow's (CBoM) announced
sale of MKB-Leasing to Region-Leasing, a subsidiary of Region
Investment Co. OA (B-/Stable/B). S&P said, "Following this, we now
base our ratings on MKB-Leasing on its stand-alone
characteristics, since we no longer consider it to be a core
subsidiary of CBoM and view it as a nonstrategic subsidiary of
Region Investment, given that its strategic role and development
within the new group is not yet clear. We consider a merger of
MKB-Leasing and Region-Leasing likely in the medium term. At the
same time, we believe it is unlikely that MKB-Leasing will
experience severe stress from business, financial, or operating
conditions that could lead us to lower our ratings on MKB-Leasing
to 'CCC+', given Region Investment's commitment of support and
funding, if needed. Following this, we view MKB-Leasing's funding
and liquidity as adequate and comparable to regional peers."

S&P said, "The ratings incorporate the 'b' anchor that we assign
to Russian nonbank financial institutions, reflecting the
continued tough operating environment for leasing companies in
Russia. The ratings also reflect the company's modest business
volumes compared with peers, moderate capital position based on
our risk-adjusted capital ratio of above 5%, and existing single-
name concentrations in the lease portfolio (top-20 exposures
comprising 54% of the portfolio)."

Despite its relatively small size (assets of Russian ruble 10.6
billion or $183 million on Dec. 31, 2017), MKB-Leasing has a
moderate market position with some diversification across business
segments. Its top-3 sectors are trucks and commercial vehicles
(16% of leasing), real estate property (14%), and rolling stock
and traction equipment (14%). The company was a top-20 leasing
company among its domestic peers in terms of its lease portfolio
at end-2017, with a market share of 0.6%.

S&P said, "We do not insulate the ratings on MKB-Leasing from that
on Region Investments because regulatory restrictions with regards
to liquidity, capital, or funding of leasing companies in Russia
are not sufficient for this. Additionally, we view as negative for
the ratings that there are no regulatory restrictions preventing
the subsidiary from supporting the group to an extent that would
impair the subsidiary's stand-alone creditworthiness.

"The stable outlook reflects our view that the company is unlikely
to experience severe stress from business, financial, or operating
conditions during its integration into Region-Leasing and the
wider group.

"If we lower our rating on Region Investment, we will take a
similar rating action on MKB-Leasing. If, contrary to our
expectations, unfavorable business, financial, and economic
conditions arise that put MKB-Leasing at risk of not meeting its
financial commitments, we could lower the ratings to 'CCC+' or
below.

"We see limited potential for upside currently, given our rating
on the parent. If our assessment of MKB-Leasing's stand-alone
creditworthiness improves together with that of Region
Investment's, this could trigger an upgrade. A change in the group
status would have no immediate impact on the ratings, even if we
were to upgrade on Region Investment, which view as unlikely."



=====================
S W I T Z E R L A N D
=====================


LECLANCHE: Negotiates Debt Restructuring with Shareholders
----------------------------------------------------------
Max Hall at PV Magazine reports that Swiss battery manufacturer
and energy storage company Leclanche has negotiated a debt
restructuring with its shareholders and, in a press release issued
on July 17, warned further measures may be required to shore up
its balance sheet.

The 109-year company announced its major shareholder FEFAM -- a
coalition of four investment funds -- has purchased an unspecified
amount of debt that was due on June 30 and postponed its maturity
date for two years, until March 31, 2020, PV Magazine relates.

According to PV Magazine, the July 17 official statement said
FEFAM, which has reportedly pumped around CHF75 million (US$75.4
million) into Leclanche, has also agreed to exchange CHF24 million
owed to it by the manufacturer for equity with both measures taken
to "help strengthen the balance sheet of the company".



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


AMPHORA INTERMEDIATE: S&P Assigns 'B' ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Amphora Intermediate II Limited, parent of Accolade Wines
group, an Australia-based wine producer and distributor. The
outlook is stable.

S&P said, "At the same time, we assigned our 'B' issue rating to
the GBP301 million (A$550 million equivalent) senior secured term
loan B due 2025, with a recovery rating of '3', indicating our
expectation of meaningful recovery (50%-70%; rounded estimate 55%)
in the event of default.

"These ratings are in line with the preliminary ratings we
assigned to the company on May 16, 2018."

Accolade Wines is the fifth largest wine company in the world by
volume. By value, the company is the No. 1 player in U.K. and No.
2 in Australia, with a market share of about 8% in both regions.
S&P expects Accolade Wines to report total annual sales of about
A$950 million-A$1,000 million (including non-core activities) and
reported EBITDA of A$85 million-A$90 million for the year-end
2017/2018 (fiscal year ending June 30, 2018).

Accolade Wines outsources nearly all of its wine production, with
about 97% of volume sold coming from purchased grapes and bulk
wine, whereas the remainder (about 3%) is from Accolade Wines-
owned or leased vineyards. About 48% of total wine sourced is from
the Riverland Grape Producers Co-operative (comprising more than
500 Australian growers). Finally, S&P notes that the company has
several trading arrangements to buy and sell wine in bulk in order
to manage its inventory level.

The company's business risk profile is supported by the good brand
equity power of its main wine brands (such as Hardys, Echo Falls,
Kumala, and Grant Burge). The company has about 50 brands across
multiple varieties and price points, of which three are within the
top 10 brands by volume, both in the U.K. and Australia.

Accolade Wines is repositioning itself toward a more premium
segment (retail price higher than A$10 per bottle) considering
that the premium segment is outperforming the more
commercial/mainstream categories (retail price below A$10 per
bottle). However, we note that this change will be gradual
considering that the company is still predominately focused on the
mainstream segment (about 65%-70% of total company sales). We
therefore expect Accolade Wines to invest more in marketing
activities compared with the past few years. Additionally, the
company is reducing its exposure to its residual private label
business and other lower margin contracts.

In order to accelerate the premiumization strategy, in January
2017, Accolade Wines acquired Fine Wine Partners, an Australia-
based premium wine producer (including six brands and four
Australian wineries).

S&P said, "Furthermore, we evaluate positively Accolade Wines'
long-term relationships with its main clients such as with Tesco,
Asda (for the U.K. market), and Woolworths and Coles (in
Australia). These relationships span for more than 25 years.

"In our view, Accolade Wines' business risk profile is constrained
by the challenging dynamics in the U.K. wine industry (core market
for the company) due to the relatively strong bargaining power of
major retailers, the changing in consumer preference (driven by
the premiumization trend), and the maturity of the market with
limited potential for volume upside. In addition, we think that
some temporary disruptions could arise from the recent
administration procedures entered by one of company's U.K.
distributors, Conviviality PLC.

"Furthermore, we notice that there is some customer and brand
concentration, which constrains our assessment of the company's
business risk profile, with the top three customers accounting for
about 35% of annual sales, whereas the top five brands account for
about 50%. In terms of geographical diversification, Accolade
Wines' main markets are the U.K. and Australia, which account for
45%-50% and 30%-35%, respectively, of total sales for the fiscal
year 2017/2018."

Accolade Wines is committed to penetrating the Chinese market
(currently representing less than 5% of company' sales) in order
to benefit from robust growth that the Chinese wine industry is
continuing to experience (+5.3% value compound annual growth rate
in 2011-2016 according to Euromonitor). The growth potential for
international players is also supported by local Chinese wine
producers losing market share to imported wine. However, S&P
recognizes some execution risks in penetrating the Chinese market,
mainly related to the construction of an effective distribution
network.

S&P said, "Looking at the profitability level, under our base case
we assume a reported EBITDA margin in the high single-digits,
below the industry average for the alcoholic beverage sector. This
is explained by company's focus on commercial/mainstream wine
categories, strong price competition in U.K. (compared with other
markets in the world), and by margin dilutive effects coming from
the company's "non-core" business activities (such as private
labels and bulk wine trading).

"Our assessment of the group's financial risk profile reflects our
estimate of its S&P Global Ratings-adjusted debt to EBITDA staying
within 6.0x-5.5x over the next 18-24 months. Under our base case,
we forecast gradual deleveraging, mainly owing to moderate
strengthening in absolute EBITDA value.

"At the same time, we expect Accolade Wines to have a good EBITDA
interest coverage ratio close to 3.0x and we assume the company
will post neutral free operating cash flow (FOCF) in 2019 (to
support the capital investments), and positive FOCF -- although
limited -- starting from 2019/2020. The company plans to invest
significant capital expenditure (capex) in the fiscal year
2018/2019 in order to bring the Australian bottling operations in-
house (ending the outsourcing deal agreements with other third
parties). In this way, Accolade Wines will deliver cost savings,
while taking control of its operation activities (bottling and
warehousing)."

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

-- For the full fiscal year 2017/2018, total revenues of about
    A$950 million-A$1,000 million, including the six-month
    consolidation effect of Fine Wine Partners. For the next
    three years, S&P expects a low-single digit average growth
    rate with more challenging volume growth in the core markets,
    offset by expansion in China and generally higher average
    selling prices.

-- Relatively stable reported EBITDA margin in the high single-
    digits over the next 18-24 months, assuming positive effects
    coming from premiumization strategy and insourcing of
    bottling operations in Australia.

-- Total annual capex of about A$35 million for the full-year 2
    2018/2019, and about A$25 million in 2019/2020. In relation
    to the expansionary capex, S&P notices that A$25 million is
    equity pre-funded with the proposed transaction.

-- No dividend payment and acquisitions.

Based on these assumptions, S&P arrives at the following credit
measures for the next two years:

-- S&P Global Ratings-adjusted debt to EBITDA of 6.0x-5.5x; and
-- EBITDA interest coverage close to 3.0x.

S&P said, "The stable outlook reflects our view that Accolade
Wines' operational performance should be resilient and the company
will be able to generate a reported EBITDA margin in the high
single-digits during the next 12 months. In our view, the
company's performance should be mainly supported by a more
favorable product mix and higher penetration in China offsetting
some volume pressures in the U.K. and Australia. Under our base-
case scenario, we assume that Accolade Wines will post S&P Global
Ratings-adjusted debt-to-EBITDA of 5.5x-6.0x over 2018-2019. At
the same time, we expect the company to be able to post positive
cash flow generation and EBITDA interest coverage close to 3.0x.

"We could lower the ratings if Accolade Wines' ability to generate
positive cash flow becomes significantly weaker than we currently
anticipate or if the EBITDA interest coverage ratio fell below
2.0x. This could result from a worsening operating environment in
the core markets, for example owing to a loss of a key client, or
stronger competition than anticipated. Furthermore, we could lower
the ratings if the company's liquidity comes under pressure.

"We could consider raising the ratings if the company is able to
significantly increase its profitability and to post a track
record of healthy positive cash flow generation. For an upside
scenario we would also need to see the company maintain an S&P
Global Ratings-adjusted debt to EBITDA sustainably below 5.0x,
with a financial policy commitment to a permanently less leverage
capital structure."


BEALES: Drops Plan to Buy Two More Department Stores
----------------------------------------------------
Daily Echo reports that Beales has called off its plan to buy two
more department stores, citing the "challenging retail
environment".

The Bournemouth-based department store chain said in May it was in
"advanced talks" to buy Palmers stores in Great Yarmouth and
Lowestoft, Daily Echo recounts.

But in a statement, the company, as cited by Daily Echo, said:
"Due to the current challenging retail environment, Beales will
not be pursuing the acquisition of Palmers Department Stores in
Great Yarmouth and Lowestoft."

Beales has 21 department stores across the country. It more than
doubled in size from 2008 to 2013 but ran into difficulties and
was heavily in debt when it was bought by investor Andrew Perloff
in 2015, for just GBP1.2 million, Daily Echo relays. It
subsequently closed several loss-making stores under a company
voluntary arrangement (CVA), Daily Echo recounts.


GAUCHO: On Brink of Administration, Hopes to Secure Rescue Deal
---------------------------------------------------------------
Business Sale reports that Gaucho restaurant group faces going
into administration as it struggles to meet the obligations of a
GBP1 million tax bill.

The chain is on the race to secure a rescue deal as its Cau
restaurant in Bristol, a burger and steak franchise with an
Argentinean theme, risks closure, Business Sale discloses.

The restaurant group has been struggling for some months and is
understood to be looking at three potential rescue deals to meet a
deadline by HM Revenue & Customs, Business Sale relates.

The chain appointed KPMG in May to assess the potential options
for its future and particularly the viability of Cau, which has 22
restaurants around the country and has experienced double digit
declines in the last year, Business Sale recounts.

According to Business Sale, Gauncho's advisers hope to secure a
deal this week with proposals being filed on July 13 by a number
of investors including Gaucho's existing management team backed by
equity firm Core Capital; Hugh Osmond, the former Pizza Express
backer; as well as by Limerston Capital, an investor in companies
including Spark Energy.

However, if a rescue deal is secured, sources say that only the
brand's 16 Gaucho restaurants will be secured, Business Sale
notes.  Its Cau chain, including its Bristol restaurant will
close, Business Sale states.

Gaucho joins the number of casual dining groups having suffered to
keep afloat in the UK market due to heavy competition, rising
operating costs and a decline in consumer spending, Business Sale
relays.


GEMGARTO PLC 2018-1: DBRS Assigns Prov. C Rating on Class X Notes
-----------------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the notes
expected to be issued by Gemgarto 2018-1 PLC as follows:

-- Class A Notes rated AAA (sf)
-- Class B Notes rated AA (sf)
-- Class C Notes rated A (high) (sf)
-- Class D Notes rated A (low) (sf)
-- Class E Notes rated BB (high) (sf)
-- Class X Notes rated C (sf) (together, the Rated Notes)

The ratings assigned to the Class A to E Notes address the timely
payment of interest and ultimate payment of principal on or before
the legal final maturity date. The rating assigned to the Class X
Notes addresses the ultimate payment of interest and principal.
The Class F Notes and Class Z Notes are not rated by DBRS.

Gemgarto 2018-1 PLC (the Issuer) is a bankruptcy-remote special-
purpose vehicle incorporated in the United Kingdom. The notes will
be used to fund (i) the purchase of a U.K. owner-occupied mortgage
portfolio, originated by Kensington Mortgage Company Limited
(KMC), and (ii) a credit entry to a pre-funding principal ledger.
KMC, a North View Group company, is an established lender and
servicer in the U.K. KMC is owned by funds managed by The
Blackstone Group and TPG.

The mortgage portfolio will be serviced by KMC, which will also
act as the cash/bond administrator, with CSC Capital Markets UK
Limited in place as the back-up servicer facilitator. Wells Fargo
Bank is expected to be engaged as the standby cash/bond
administrative counterparty at closing and will be delegated
certain cash admin duties.

At closing, the Issuer is expected to credit part of the initial
Class A to F Note proceeds to the pre-funding principal ledger and
part of the Class X Note proceeds to the pre-funding revenue
ledger, which can subsequently be applied to purchase additional
loans prior to the first payment date. The additional loans must
conform to portfolio-wide covenants, which mitigate additional
credit risk. Negative carry is partially mitigated by a partial
reserve fund release on the first payment date, providing that
0.1% of the Class A to F Notes at closing will flow through the
revenue priority of payments on the first payment date.

The transaction structure is designed to permit replenishment of
the collateral portfolio prior to the step-up date provided that
the Class A Notes is amortized in line with the target notional
amount. DBRS notes that the target notional should be viewed as a
soft target; accordingly, if the Issuer is unable to amortize the
Class A Notes in line with the expectation, then no replenishment
period ending event or an event of default on the Class A Notes is
triggered.

During the replenishment period, the Issuer will first allocate
principal funds toward the amortization of the Class A Notes until
principal funds are sufficient to amortize the Class A Notes to
the target notional before applying principal proceeds to purchase
additional loans. DBRS has analyzed a stressed collateral
portfolio to represent potential deterioration in the
characteristics that can impact the transaction, subject to
portfolio-wide covenants.

As of June 15, 2018, the provisional portfolio, which is to be
sold on the closing date, consisted of 1,210 mortgage loans with a
total portfolio balance of GBP 214.9 million. The average loan per
borrower was GBP 177,020. The weighted-average (WA) seasoning of
the portfolio was 0.2 years with a WA remaining term of 26.8
years. The portfolio includes 14.6% of help-to-buy (HTB) loans,
which are standard mortgages, but the HTB borrowers are supported
by government loans (the equity loans, which rank in a
subordinated position to the mortgages). HTB loans are used to
fund the purchase of new-build properties with a minimum deposit
of 5% from the borrowers. The WA current loan-to-value of the
portfolio is 75.8%, which increased to 78.9% in DBRS's analysis to
include the HTB equity loan balances.

The entire portfolio is currently paying fixed interest rates,
which will become floating rates upon completion of the initial
fixed period. Interest rate risk is expected to be hedged through
an interest rate swap. Approximately 9.8% of the portfolio by loan
balance comprises loans originated to borrowers with at least one
prior County Court Judgment and 4.8% are either interest-only-
loans for-life or loans that pay on a part-and-part basis. DBRS
notes that affordability for these loans is assessed on a capital-
plus-interest basis. All loans in the portfolio are owner-
occupied.

Credit enhancement for the Class A Notes is expected to be
[18.00%] at closing and will be provided by the subordination of
the Class B Notes to the Class F Notes (excluding the Class X
Notes). The credit enhancement includes a cash reserve fund that
is available to support the Class A to Class E Notes (and Class X
Notes upon redemption of the Class E Notes). The cash reserve will
be fully funded at closing to [2.10] % and is required to be
funded to [2.00]% of the initial balance of the Class A to the
Class F Notes (excluding the Class X Notes) following the first
payment date. The [0.10]% release amount is intended to mitigate
negative carry from pre-funding period.

The Class A Notes and the Class B Notes benefit from further
liquidity support provided by a liquidity reserve fund, which can
support the payment of senior fees and interest on the Class A and
Class B Notes once it is funded (subject to a 10% Class B
principal deficiency ledger condition). The liquidity reserve will
not be funded on the closing date but will be funded from
principal receipts to [2.00]% of the outstanding balance of the
Class A and Class B Notes on subsequent payment dates if the
general reserve fund falls below [1.50]% of the outstanding Class
A to F Notes. Additionally, principal receipts may be used to
provide liquidity support to payments of senior fees and interest
on the Class A to E Notes subject to principal deficiency ledger
conditions when a class is not the senior-most outstanding.

The Class X Notes are primarily intended to amortize using revenue
funds. However, if excess spread is insufficient to fully redeem
the Class X Notes when the Class E Notes are paid-down, principal
funds will be used to amortize the Class X Notes in priority to
the Class F Notes. In DBRS's cash flow analysis, the Class F Notes
are rendered partially collateralized as principal funds are
diverted to amortize the Class X Notes. Such an event leads to a
PDL debit; however, DBRS's analysis finds there is insufficient
excess spread to reduce the PDL balances and ensure the Class F
Notes are fully collateralized. DBRS concludes that full repayment
of the Class F Notes is considered unlikely in extreme scenarios
such as large-scale redemptions or repurchase events.

The Issuer is expected to enter into a fixed-floating swap with
BNP Paribas, London Branch to mitigate the fixed interest rate
risk from the mortgage loans and the three-month LIBOR payable on
the notes. The fixed-floating swap documents reflect DBRS's
"Derivative Criteria for European Structured Finance Transactions"
methodology.

The Account Bank, Cash Manager, Principal Paying Agent, Agent Bank
and Registrar is Citibank N.A., London Branch. The DBRS private
rating of the Account Bank is consistent with the threshold for
the Account Bank outlined in DBRS's "Legal Criteria for European
Structured Finance Transactions" methodology, given the rating
assigned to the Class A Notes.

DBRS based its ratings primarily on the following analytical
considerations:

-- The transaction's capital structure, form and sufficiency of
    available credit enhancement and liquidity provisions.

-- The credit quality of the mortgage loan portfolio and the
    ability of the servicer to perform collection activities. DBRS
    calculated portfolio default rate (PD), loss given default
    (LGD) and expected loss (EL) outputs on the mortgage loan
    portfolio.

-- The ability of the transaction to withstand stressed cash flow
    assumptions and repay the Rated Notes according to the terms
    of the transaction documents. The transaction cash flows were
    analyzed using PD and LGD outputs provided by the European
    RMBS Insight Model and using Intex DealMaker.

-- The structural mitigants in place to avoid potential payment
    disruptions caused by operational risk, such as downgrade and
    replacement language in the transaction documents.

-- The transaction's ability to withstand stressed cash flow
    assumptions and repay investors in accordance with the terms
    and conditions of the notes.

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

Notes: All figures are in British pounds sterling unless otherwise
noted.


MCLAREN GROUP: S&P Alters Outlook to Negative & Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K.-based automaker and
Formula One (F1) racing team McLaren Group Ltd. to negative from
stable. At the same time, S&P affirmed its 'B' long-term issuer
credit rating on McLaren.

S&P said, "We also affirmed our 'BB-' issue rating and '1'
recovery rating on the GBP90 million super senior revolving credit
facility (RCF) borrowed by McLaren Holdings Ltd. and McLaren
Finance PLC. The recovery rating reflects our expectation of very
high recovery (90%-100%; rounded estimate: 95%) in the event of a
payment default.

"At the same time, we affirmed our 'B' issue rating and '3'
recovery rating on the GBP370 million and $250 million senior
secured notes due 2022, issued by McLaren Finance. The recovery
rating reflects our expectation of meaningful recovery (50%-70%;
rounded estimate: 60%) in the event of a payment default.

"The outlook revision reflects our expectation that McLaren faces
continued losses (on an S&P Global Ratings-adjusted basis) and
negative free operating cash flow (FOCF) for longer than we
previously expected. This is due to high ongoing capital
expenditures (capex), as well as weak results in the F1 racing
business. There is limited headroom to accommodate further
weakness in cash flow below our expectations, and we see a
possibility of a downgrade if our expectations are not met.
However, the ratings affirmation reflects our expectations that
profitability and cash flows will improve over the next one-to-two
years, with positive FOCF by 2020. We also note favorably a cash
injection in May 2018 from a new share issue of GBP100 million,
with McLaren due to receive a further GBP104 million by May 2019,
which supports liquidity.

"Based on our updated forecasts, we continue to envisage healthy
revenue growth in 2018, supported by higher volumes in car sales
to over 4,300 units (compared to 3,340 in 2017), thanks to
continued successful model roll-outs, strong market demand, and
importantly, a ramp-up in production rates. We expect additional
year-on-year volumes from the full-year contribution from the 720S
super series model launched in June 2017; a new ultimate series
car, the McLaren Senna (and the track-only version, the McLaren
Senna GTR); and a new sports series car, the 600LT, just
announced. However, we expect lower revenues in the racing
business in 2018 due to reduced F1 prize money in respect of
McLaren coming ninth in the constructor's championship in 2017,
lower sponsorship income, and lower income from a previous engine
contract with Honda."

For McLaren Racing, track performance in F1 so far this year has
been disappointing. Half way through the 2018 season and after 10
races, McLaren has 48 points, which is seventh in the
constructor's standings, albeit ahead of the 30 points it earned
during the whole of the 2017 season. Should results not improve
this year, the prize money McLaren receives in 2019 could be lower
than S&P currently forecasts.

S&P said, "On a reported basis, we envisage group EBITDA in 2018
to be around GBP160 million, with profits in the automotive
business being partly offset by greater-than-expected losses in
the racing business. We factor in continued profits from heritage
car sales in 2018 -- at a similar level to GBP27 million in
2017 -- and regard these sales as being part of McLaren's
operating business.

"We expect McLaren to continue to spend heavily on new model
development to support the rollout of 18 new car models and
derivatives, as stated in its latest business plan for the
automotive segment. A key element is GBP1.2 billion of investment
spending during 2018-2025, which implies an average of about
GBP170 million of capex per year. We forecast capex above this
level at about GBP200 million in 2018, due to the timing of
spending on new models. (Note that this figure is net of expected
cash deposits from customers, which are reported in working
capital and not disclosed, but are a source of funding). We
forecast negative FOCF to continue in 2018 and 2019, only becoming
positive in 2020, helped by improving profitability and lower
yearly capex."

In 2017, McLaren reported group revenues of GBP871 million, of
which 69% came from the automotive business, 24% from racing, and
7% from the applied technologies segment, which uses in-house
technology for sectors such as transportation and health care.
S&P said, "Group results in 2017 were far weaker than we expected,
with reported EBITDA of only GBP45 million, due to longer-than-
expected production delays, and costs to introduce a new IT
system. On an adjusted basis, EBITDA was a negative GBP136
million, whereas we had expected it to be positive. In our
adjustments to reported EBITDA, we deducted GBP172 million of
capitalized development costs. We keep in EBITDA profits from the
sale of heritage cars. Funds from operations (FFO) were negative
at GBP162 million in 2017 and FOCF was also negative at GBP37
million."

S&P said, "Our business risk assessment continues to be supported
by McLaren's established market position as a manufacturer of
high-performance sports cars and a rich heritage as a F1 racing
car constructor. That said, the need for heavy spending on new
model development significantly depresses adjusted profitability
(EBITDA and FFO), as we expense all R&D costs while the company
largely capitalizes them.

"Our financial risk assessment is constrained by the need for
heavy capex on the development of new car models in McLaren's
automotive business, and negative FOCF, which we expect to
continue until 2020. Supportive factors include the cash injection
of GBP204 million from the issuance of new shares and
strengthening liquidity.

"The negative outlook reflects the possibility that we may lower
the ratings on McLaren within the next year.

"We could lower the ratings if our expectations of improving
profitability and positive FOCF by 2020 are not met. This could
occur, for example, if there are widening losses in the racing
business, or if capex increases further. Weaker liquidity could
also be a factor in a downgrade.

"We could revise the outlook to stable during the next year if
McLaren performs in line with our base case, and thereby eases
downward rating pressure over time. A stronger recovery in
adjusted EBITDA and FOCF than we expect would also be positive.
This could materialize, for example, if the company spent less on
capex or if the F1 team performed more strongly."


NEWDAY FUNDING 2018-1: DBRS Finalizes B(high) Rating to F Notes
---------------------------------------------------------------
DBRS Ratings Limited (DBRS) finalized its provisional ratings on
the Class A1, Class A2, Class B, Class C, Class D, Class E and
Class F Notes (collectively, the Notes) issued by NewDay Funding
2018-1 plc as follows:

-- AAA (sf) on the Class A1 Notes
-- AAA (sf) on the Class A2 Notes
-- AA (high) (sf) on the Class B Notes
-- A (high) (sf) on the Class C Notes
-- BBB (low) (sf) on the Class D Notes
-- BB (low) (sf) on the Class E Notes
-- B (high) (sf) on the Class F Notes

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

The ratings are based on the considerations listed below:

-- The transaction capital structure including the form and
sufficiency of available credit enhancement.

-- Credit enhancement levels are sufficient to support DBRS's
expected charge-off, payment and yield rates under various stress
scenarios.

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

-- NewDay Ltd (the Seller) and its delegates' capabilities with
respect to originations, underwriting, servicing, data processing
and cash management.

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

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

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

-- The sovereign rating of the United Kingdom, currently rated
AAA with a Stable trend by DBRS.

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


POUNDWORLD: To Close Further 40 Stores, 531 Jobs Affected
---------------------------------------------------------
BBC News reports that Poundworld has said it will close a further
40 stores, resulting in 531 more job losses.

The discount goods retailer, which went into administration in
June, said the stores would close on July 24, BBC discloses.

Poundworld had already announced plans to close 105 of its 335
stores, having failed to strike a rescue deal, BBC notes.

Its administrators, Deloitte, said they were still looking for
buyers for all, or parts, of the remaining business, BBC relates.

According to BBC, at least two potential rescue deals have failed
so far, including one from the chain's founder Chris Edwards, who
was offering to buy around half of the stores.

Poundworld went bust in early June after struggling with tough
competition on the High Street from rivals including Poundland and
Poundstretcher, BBC recounts.

It was also hit by the fall in the value of the pound after the
2016 Brexit referendum, which has pushed up the price of imported
goods, BBC relays.

Poundworld employed about 5,100 people before it went into
administration and around 1,800 redundancies have been announced
since then, BBC notes.

Deloitte has also made 100 people redundant at Poundworld's head
office in Normanton, West Yorkshire, according to BBC.


RG SPILLER: Insufficient Funds Prompt Administration
----------------------------------------------------
Business Sale reports that RG Spiller, a well-established
construction firm that is said to have a 150-year history, has
fallen into administration due to insufficient funds.

According to Business Sale, the Chard-based business, and its
parent company Howard Construction, have both ceased trading as a
result.

Chartered accountancy firm Bishop Fleming was called in by
RG Spiller's managing director and Howard Construction's owner
Andrew Howard, Business Sale relates.  Partner Jonathan Williams
has since been appointed as the administrator of both businesses,
Business Sale notes.

Howard Construction has previously specialised in national housing
infrastructure, having worked with developers like Taylor Wimpey,
Bellway Homes and Bovis Homes, amongst many others.

Accounts, however, showed that its turnover was down to GBP15
million by June 2017, in comparison to GBP20 million in the
previous year, Business Sale discloses.

Mr. Williams, as cited by Business Sale, said: "Their cashflow
forecast projections showed they were close to running out of
funds.

"We looked at the possibilities of a creditors voluntary
arrangement and trading for a short period to complete current
contracts, but the cash requirements for this were too great.

"Accordingly, we advised the director there was no alternative but
to stop trading because there were insufficient funds to make any
further payments to creditors and the workforce."

The two firms have stopped trading and are currently valuing their
assets for the businesses' creditors, Business Sale relays.


TRINIDAD MORTGAGE 2018-1: DBRS Finalizes BB Rating on Cl. E Notes
-----------------------------------------------------------------
DBRS Ratings Limited finalized the following provisional ratings
to the notes issued by Trinidad Mortgage Securities 2018-1 PLC
(TMS18 or the Issuer):

-- Class A notes at AAA (sf)
-- Class B notes at AA (sf)
-- Class C notes at A (low) (sf)
-- Class D notes at BBB (low) (sf)
-- Class E notes at BB (sf)
-- Class F notes at B (high) (sf)

The ratings assigned to the Class A notes addresses the timely
payment of interest to the note holders and the ultimate payment
of principal on or before the legal final maturity date. The
ratings on the Class B, C, D, E and F notes address the ultimate
payment of both principal and interest on or before the legal
final maturity date. Deferral of interest is permitted on the
Class B to F notes, as per the transaction documents, provided
that any deferred interest is repaid in full, plus an interest
accrued thereon by the legal final maturity date. However,
deferral of interest is not permitted when a class of notes is the
senior-most outstanding. DBRS does not rate the Class G, H, X or Z
notes that were issued.

DBRS's final ratings on the Class B, E and F notes are higher than
the provisional ratings assigned on June 12, 2018 because of lower
than anticipated spreads on the notes, a later step-up date and a
larger reserve fund. There is higher excess spread modeled for the
final ratings, positively supporting the notes.

TMS18 is a securitization of three distinct residential mortgage
loan portfolios, each originated by a different lender. The sub-
portfolios each have different loan, borrower and/or property
characteristics. The mortgage portfolio, which includes both buy-
to-let (BTL) and owner-occupied loans, aggregates to GBP 276.4
million (as of May 2018).

The largest subset (62.0% of the total portfolio by outstanding
balance) was originated by Magellan Home loans Limited (MHL) and
is a newly originated owner-occupied collection of loans,
including credit repair loans. Credit repair loans (19.4% of the
portfolio) are granted to borrowers with heavy adverse features
due to impaired credit histories, including past bankruptcies,
individual voluntary agreements (IVAs) and/or county court
judgments (CCJs). Alongside the credit repair loans, MHL has
included complex-prime products in the transaction. These products
are more aligned with typical U.K. non-conforming mortgage loans,
albeit without interest-only loans or those granted to borrowers
who self-certify income.

Thrones 2013-1 Plc (T13) -- a mixed BTL and owner-occupied
portfolio -- originated between 2003 and 2008 by Heritable Bank
PLC (29.6% of the pool) will also be included in the transaction.
Heritable Bank went into administration in October 2008, and the
T13 asset portfolio was purchased by funds managed by Mars Capital
Finance Limited (MCFL) in May 2013. DBRS currently rates the T13
securitization transaction, which is to be called on the first
optional redemption date falling in July 2018. Any funds that are
not applied to purchase the T13 loans will be applied as available
principal funds, in a sequential manner.

The remainder of the collateral is the Camael portfolio (8.4% of
the pool). Camael was originated by Cyprus Popular Bank Public Co
Ltd (formerly Marfin Popular Bank Public Co. Ltd and trading as
Laiki Bank or Marfin Popular Bank). The portfolio consists of
mortgage loans backed by residential and commercial properties,
which are both BTL and owner-occupied. All mortgages are British-
pounds-sterling denominated and secured by one or more properties
located in the United Kingdom. The originator collapsed in 2012
and was rescued by the government of Cyprus. In March 2013 the
'good' assets of the originator (including Camael loans) were
transferred to Bank of Cyprus before being acquired by MCFL in
2014.

The transaction structure allows the Issuer to purchase further
MHL-originated mortgage loans before the first interest payment
date (the pre-funded loans). These assets are expected to be
purchased using funds standing to the credit of the pre-funding
ledger, which was funded at closing by an over-issuance of notes.
DBRS has assumed a worst-case pre-funding portfolio given the
conditions and has stressed the negative carry arising from the
pre-funding reserve. Any funds that are not applied to purchase
additional loans will be applied to amortize the rated notes, pro-
rata.

As of May 31, 2018, the provisional portfolio consisted of 1,842
loans with an average outstanding balance of GBP 152,207,
aggregating to GBP 271.1 million. Approximately 20.6% of the loans
by outstanding balance are BTL mortgage loans; as is common in the
U.K. mortgage market, the BTL loans are largely scheduled to pay
interest only on a monthly basis, with principal repayment
concentrated in the form of a bullet payment at the maturity date
of the mortgage. In total, 28.1% of the portfolio by loan amount
is interest only, all of which are either T13 or Camael loans.

The mortgage loans are relatively high yielding, with a weighted-
average coupon of 5.0% and a weighted-average reversionary margin
of 3.5%, assuming the standard variable rate (SVR) is set at the
floor of 2.5% over LIBOR. Approximately 14.4% of the mortgage
loans have prior CCJs and 14.3% have either a prior bankruptcy or
IVAs amongst other features. The Camael loans have no information
provided regarding borrower characteristics (including adverse
credit history, employment status and income amongst others). DBRS
has assumed the worst-case scenarios for the missing Camael
portfolio borrower characteristics. The weighted-average current
loan-to-value ratio of the portfolio is 64.8% (including DBRS
haircuts to valuations for commercial properties and/or non-
surveyor valuations).

The transaction is structured to initially provide 25.6% of credit
enhancement (represented as a percentage asset portfolio) to the
Class A notes. This includes subordination of the Class B to H
notes (the Class X and Z notes are not collateralized by mortgage
loans) as well as the non-amortizing general reserve fund (GRF),
which is funded to 3.65% of the mortgage-backed notes at issuance.
The GRF can be applied to cover shortfalls in senior fees,
interest on the senior-most outstanding class of notes and to
clear principal deficiency ledger (PDL) balances on the rated
notes' sub-ledgers. Further liquidity support is provided by the
liquidity reserve fund (LRF), which is not initially funded but
will be funded from closing in a senior position atop the pre-
enforcement principal priority of payments to 4% of the Class A
notes if the GRF falls below 2% of the outstanding balance of the
Class A to H notes. The LRF only provides liquidity support to the
Class A notes and is applied after revenue collections and the
GRF. If drawn from, the LRF is replenished from the pre-
enforcement revenue priority of payments and release amount from
available principal funds.

Principal funds can be diverted to pay revenue liabilities,
insofar as a shortfall in senior fees, and interest due on the
senior-most outstanding class of notes persist after applying
revenue collections and exhausting both reserve funds.

If principal funds are diverted to pay revenue liabilities, the
amount will subsequently be debited to the PDL. The PDL comprises
eight sub-ledgers that will track principal used to pay interest,
as well as realized losses, in a reverse sequential order that
starts with the Class H sub-ledger.

The fixed-rate assets and the floating-rate liabilities give rise
to interest rate risk. This is partially hedged using an interest
rate cap (IRC), provided by NatWest Markets PLC. The IRC is struck
at 2% with a pre-determined notional of the outstanding balance of
the fixed-rate loans, assuming no prepayments. There is also basis
risk in the transaction that arises as there are loans linked to
the SVR that is set by the legal-title holders. This basis risk is
mitigated through a transaction floor on the SVR. The floor, which
has been analyzed by DBRS, is three-month LIBOR plus 2.5%.

Receipts from the mortgage loans are deposited into the
collections account at Barclays Bank PLC and held in accordance
with the collection account declaration of trust. The funds
credited to the collection account are swept on a weekly basis to
the Issuer's account. The collection account declaration of trust
provides that interest in the collection account is in favor of
the Issuer over the seller. Commingling risk is considered
mitigated by the collection account declaration of trust and the
regular sweep of funds. The collection account bank is subject to
a DBRS investment-grade downgrade trigger. Citibank, N.A., London
branch is the Issuer's account provider. The transaction documents
include account bank rating triggers and downgrade provisions that
lead DBRS to conclude that both account banks satisfy DBRS's
"Legal Criteria for European Structured Finance Transactions"
methodology.

At closing, the Issuer purchased the beneficial title to the
mortgage loan portfolio from the beneficial-title seller (BTS).
Legal title remains with the two legal-title holders -- MHL for
Magellan loans and MCFL for Camael and T13. The legal-title
holders will continue to hold the title to the mortgages on trust
for the Issuer. Certain perfection events will trigger the Issuer
to acquire the title to the mortgages.

The mortgage sale agreement includes various asset warranties,
which are considered in line with U.K. RMBS transaction standard,
albeit with certain awareness limitations. However, DBRS considers
the remedial action following a breach of asset warranty to be
weaker than standard. The asset warranties are time limited (no
claims can be made following 60 months from the closing date),
which is atypical for a newly originated U.K. mortgage portfolio.
Furthermore, the repurchase obligation is primarily held with the
BTS (Magellan Funding No. 2 DAC), a special-purpose vehicle. As
such, no guarantee is provided that the BTS has sufficient
resources to either indemnify or repurchase loans, as applicable.
No quantitative adjustment has been made by DBRS in the analysis
of TMS18 because of the asset warranty review. DBRS has observed
similar time limitation and awareness clauses in other U.K, RMBS
transactions, however, these are typically seasoned portfolios.
The seasoning is a risk mitigant for the Camael and T13 portfolios
(ten and 11 years for Camael and T13, respectively); however, as
the Magellan portfolio consists of recent originations, there is a
limited track record, and no Magellan loan has been repossessed to
date.

DBRS reviewed the transaction opinion, financial regulation
opinion (review of the lender's standard form documentation) and
an additional third-party report (including a platform review and
sample re-underwriting review) to understand the possibility of
asset warranty breaches in this transaction. DBRS will monitor the
transaction and will be notified of asset warranty breaches

As part of its cash flow assessment, DBRS applied two default
timing curves (front-ended and back-ended), prepayment curves
(low, medium and high assumptions) and interest rate stresses as
per the DBRS "Interest Rate Stresses for European Structured
Finance Transactions" methodology. DBRS applied an additional 0%
constant principal repayment stress. The cash flows were analyzed
using Intex DealMaker.


TURBO FINANCE 6: Moody's Affirms Ba1 Rating on Class C Notes
------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of four Notes
and affirmed the ratings of seven other Notes in four UK auto ABS
deals.

Issuer: Turbo Finance 6 plc

GBP352.8M Class A Notes, Affirmed Aaa (sf); previously on Feb 16,
2016 Definitive Rating Assigned Aaa (sf)

GBP29.4M Class B Notes, Upgraded to Aa1 (sf); previously on Feb
16, 2016 Definitive Rating Assigned Aa2 (sf)

GBP9.83M Class C Notes, Affirmed Ba1 (sf); previously on Feb 16,
2016 Definitive Rating Assigned Ba1 (sf)

Issuer: Turbo Finance 7 plc

GBP385M Class A1 Notes, Affirmed Aaa (sf); previously on Nov 30,
2016 Definitive Rating Assigned Aaa (sf)

EUR125M Class A2 Notes, Affirmed Aaa (sf); previously on Nov 30,
2016 Definitive Rating Assigned Aaa (sf)

GBP58.4M Class B Notes, Upgraded to A1 (sf); previously on Nov 30,
2016 Definitive Rating Assigned A2 (sf)

GBP8.5M Class C Notes, Affirmed Baa3 (sf); previously on Nov 30,
2016 Definitive Rating Assigned Baa3 (sf)

Issuer: Driver UK Multi-Compartment S.A., Compartment four

GBP579M Class A Notes, Affirmed Aaa (sf); previously on Nov 25,
2016 Definitive Rating Assigned Aaa (sf)

GBP51.8M Class B Notes, Upgraded to Aa2 (sf); previously on Nov
25, 2016 Definitive Rating Assigned A1 (sf)

Issuer: Driver UK Multi-Compartment S.A., Compartment Driver UK
five

GBP340M Class A Notes, Affirmed Aaa (sf); previously on Mar 27,
2017 Definitive Rating Assigned Aaa (sf)

GBP28.5M Class B Notes, Upgraded to Aa2 (sf); previously on Mar
27, 2017 Definitive Rating Assigned A1 (sf)

Turbo Finance 6 plc is a cash securitization of receivables
arising from hire purchase contracts extended to obligors located
in the United Kingdom by FirstRand Bank Limited (London Branch).

Turbo Finance 7 plc is a cash securitization of receivables
arising from Hire Purchase and Personal Contract Purchase
agreements extended to mainly private obligors in the United
Kingdom by FirstRand Bank Limited (London Branch).

Driver UK Multi-Compartment S.A., Compartment four and Driver UK
Multi-Compartment S.A., Compartment Driver UK five are cash
securitizations of Hire Purchase and Personal Contract Purchase
agreements receivables extended by Volkswagen Financial Services
(UK) Limited to obligors located in the UK.

RATINGS RATIONALE

The rating action reflects the increased levels of credit
enhancement for the affected Notes, as well as better than
expected collateral performance. Moody's affirmed the ratings of
the tranches that had sufficient credit enhancement to maintain
their current ratings.

  -- Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its default
probability and expected loss assumptions for the securitized
portfolios reflecting the collateral performance to date.

In Turbo Finance 6 plc, 60+ days delinquencies are at 0.81% of
current balance and cumulative defaults are 2.47% of original
balance plus replenishments as of June 2018, with pool factor at
27.05%. Moody's assumed a mean default probability of 4.75% of the
current portfolio balance, translating into a lower DP assumption
of 3.76% of original balance, from 4.75% at closing. Moody's left
the assumption for the fixed recovery rate and portfolio credit
enhancement unchanged at 45% and 15% respectively.

In Turbo Finance 7 plc, 60+ days delinquencies are at 0.55% of
current balance and cumulative defaults are 1.57% of original
balance plus replenishments as of June 2017, with pool factor at
41.99%. Moody's assumed a mean default probability of 5% of the
current portfolio balance, translating into a lower DP assumption
of 3.67% of original balance, from 5% at closing. Moody's left the
assumption for the fixed recovery rate and portfolio credit
enhancement unchanged at 45% and 16% respectively.

In Driver UK Multi-Compartment S.A., Compartment four, 90+ days
delinquencies are at 0.15% of current balance and cumulative
losses are 0.29% of original balance plus replenishments as of
June 2017, with pool factor at 58.17%. Moody's assumed a EL
assumption of 1.35% of the current portfolio balance, translating
into a lower EL assumption of 1.07% of original balance, from
1.35% at closing. Moody's left the assumption portfolio credit
enhancement unchanged at 8.5%.

In Driver UK Multi-Compartment S.A., Compartment Driver UK five,
90+ days delinquencies are at 0.11% of current balance and
cumulative losses are 0.16% of original balance plus
replenishments as of June 2017, with pool factor at 69.33%.
Moody's assumed a EL assumption of 1.35% of the current portfolio
balance, translating into a lower EL assumption of 1.10% of
original balance, from 1.35% at closing. Moody's left the
assumption for portfolio credit enhancement unchanged at 8.5%.

  -- Increase in Available Credit Enhancement:

Sequential amortization led to the increase in the credit
enhancement available in these transactions.

Credit enhancement available under Class B Notes in Turbo Finance
6 plc increased to 7.75% from 3.21% at closing.

Credit enhancement available under Class B Notes in Turbo Finance
7 plc increased to 7.49% from 3.91% at closing. At the same time
the residual value exposure increased from 9% at closing to 9.71%
as of the June 2018 IPD.

Credit enhancement available under Class B Notes in Driver UK
Multi-Compartment S.A., Compartment four and Driver UK Multi-
Compartment S.A., Compartment Driver UK five increased to 22.59%
and 22.40% from the levels at closing of 17.09% and 17.11%
respectively. At the same time the residual value exposure in both
transactions increased since issuance: in Driver UK Multi-
Compartment S.A., Compartment four from 48% at closing to 62.59%
as of the end of April 2018 and in Driver UK Multi-Compartment
S.A., Compartment Driver UK five from 48% at closing to 58.53% as
of the the end of April 2018 .

  -- Exposure to Counterparty Risk:

Moody's has reviewed the counterparty risk in both deals and
concluded that the ratings on all Notes are not constrained by
counterparty exposure in any of those transactions.

  -- Residual Value Loss and Cash Flow Analysis:

Moody's loss and cash flow analysis for auto lease transactions
with residual value risk consists of a two-step process in which
Moody's first analyses the credit risk due to borrower defaults
and in the second stage analyses the residual value risk as
described.

Moody's rating approach for assessing residual value risk in EMEA
and Asia-Pacific consists of five main steps: (1) defining the
baseline Aaa haircut for the market; (2) determining the
transaction Aaa haircut; (3) deriving haircuts for non-Aaa or
mezzanine tranches; (4) calculating tranche specific residual
value credit enhancement based on the residual value haircut
appropriate for the tranche; and (5) adjusting the residual value
credit enhancement to account for guarantees or the benefit of
dealer buy-back agreements.

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Auto Loan- and Lease-Backed ABS"
published in October 2016.

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

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

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


TWIN BRIDGES 2018-1: Moody's Assigns B2 Rating to Class X2 Notes
----------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term credit
ratings to the following classes of Notes issued by Twin Bridges
2018-1 Plc:

GBP246.0 million of Class A Mortgage Backed Floating Rate Notes
due September 2050, Definitive Rating Assigned Aaa (sf)

GBP15.0 million of Class B Mortgage Backed Floating Rate Notes due
September 2050, Definitive Rating Assigned Aa1 (sf)

GBP16.5 million of Class C Mortgage Backed Floating Rate Notes due
September 2050, Definitive Rating Assigned Aa2 (sf)

GBP13.5 million of Class D Mortgage Backed Floating Rate Notes due
September 2050, Definitive Rating Assigned A1 (sf)

GBP6.0 million of Class X1 Mortgage Backed Floating Rate Notes due
September 2050, Definitive Rating Assigned B1 (sf)

GBP3.0 million of Class X2 Mortgage Backed Floating Rate Notes due
September 2050, Definitive Rating Assigned B2 (sf)

This transaction represents the second securitisation transaction
rated by us, that is backed by buy-to-let mortgage loans
originated by Paratus AMC Limited. The portfolio consists of loans
secured by mortgages on properties located in the UK extended to
1,053 prime borrowers and the current pool balance is
approximately equal to GBP 290 million as of June 2018.

RATINGS RATIONALE

The ratings take into account the credit quality of the underlying
mortgage loan pool, from which Moody's determined the MILAN Credit
Enhancement ("Milan CE") and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 2.5% and the MILAN required credit
enhancement of 14.5%, serve as input parameters for Moody's cash
flow model and tranching model.

The expected loss is 2.5%, which is in line with other UK BTL RMBS
transactions owing to: (i) the Weighted Average (WA) Current LTV
of around 70.71%; (ii) the performance of comparable originators;
(iii) the current macroeconomic environment in the UK; (iv) the
lack of historical information and (v) benchmarking with similar
UK buy-to-let transactions.

MILAN CE for this pool is 14.5%, which is in line with other UK
BTL RMBS transactions, owing to: (i) the WA Current LTV for the
pool of 70.71%, which is in line with comparable transactions;
(ii) top 20 borrowers accounting for approx. 11% of current
balance, which is somewhat more concentrated than the comparable
transactions; (iii) prefunding representing up to 3.7% of the
initial pool, subject to certain conditions, which can lead to
some collateral deterioration; (iv) the lack of historical
information and (v) benchmarking with similar UK buy-to-let
transactions.

At closing, the general reserve fund will be equal to 2.0% of the
closing principal balance of mortgage loans in the pool (including
retained commitment), i.e. GBP6.0 million. The general reserve
fund will be replenished after the PDL cure of the Class D Notes
and can be used to pay senior fees and costs, and interest on the
Class A - D Notes and clear Class A - D PDL. The liquidity reserve
fund will be equal to 1.5% of the outstanding Class A and B Notes
and will stop amortising on the step-up date or when cumulative
defaults reach 6.0% of original balance. The liquidity reserve
fund will be available to cover senior fees and cost and Class A
and B interest.

Operational Risk Analysis: Paratus is servicer in the transaction
while Elavon Financial Services DAC (Aa2/P-1), acting through its
UK Branch, is acting as a cash manager. In order to mitigate the
operational risk, Intertrust Management Limited (Not rated) acts
as back-up servicer facilitator. To ensure payment continuity over
the transaction's lifetime, the transaction documents incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation, in
case no servicer report is available. The transaction also
benefits from approx. 1 quarter of liquidity assuming 5.7% 3-month
LIBOR. Finally, there is principal to pay interest as an
additional source of liquidity for the Class A Notes and in
certain scenarios for the Class B Notes.

Interest Rate Risk Analysis: 99.8% of the loans in the pool are
fixed rate loans reverting to three months Libor with the
remaining proportion linked to three months Libor. To mitigate the
fixed-floating mismatch, there is a fixed-floating schedule swap
provided by Natixis (A1/P-1 & Aa3(cr)/P-1(cr)), acting through its
London Branch.

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the Class A, Class B, Class C
and Class D Notes by the legal final maturity. In Moody's opinion,
the structure allows for ultimate payment of interest and
principal with respect to the Class X1 and Class X2 Notes by the
legal final maturity. Moody's ratings only address the credit risk
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to
investors.

Stress Scenarios:

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 2.5% to 3.75% of current balance, and the MILAN
CE was increased from 14.5% to 20.3%, the model output indicates
that the class A Notes would still achieve Aaa (sf) assuming that
all other factors remained equal.

Moody's Parameter Sensitivities quantify the potential rating
impact on a structured finance security from changing certain
input parameters used in the initial rating. The analysis assumes
that the deal has not aged and is not intended to measure how the
rating of the security might change over time, but instead what
the initial rating of the security might have been under different
key rating inputs.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

The analysis undertaken by Moody's at the initial assignment of
the ratings for an RMBS security may focus on aspects that become
less relevant or typically remain unchanged during the
surveillance stage. Please see Moody's Approach to Rating RMBS
Using the MILAN Framework for further information on Moody's
analysis at the initial rating assignment and the on-going
surveillance in RMBS.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Significantly different loss assumptions compared with its
expectations at close due to either a change in economic
conditions from its central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the Notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.



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


* S&P Assigns Resolution Counterparty Ratings to Six EU Banks
-------------------------------------------------------------
S&P Global Ratings said that it has assigned long- and short-term
resolution counterparty ratings (RCRs) to six banks in four CEE
countries. S&P said, "These actions follow the publication of our
RCR methodology on April 19, 2018, the completion of our RCR
jurisdiction assessments on these four countries, and our 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.

S&P said, "The rating actions cover eligible banks headquartered
in Poland, Slovenia, Croatia, and Hungary. These four countries
have each implemented resolution regimes based on the EU Bank
Recovery and Resolution Directive (BRRD). We have published
detailed jurisdiction assessments that identify the categories of
liabilities that, in our 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. On May 11,
2018, we published a similar jurisdiction assessment on Czech
Republic and, since then, we have assigned 'A+/A-1' RCRs to the
three largest banks in the country (Ceska Sporitelna A.S.,
Ceskoslovenska Obchodni Banka A.S., and Komercni Banka A.S.),
together with their Austrian, Belgian, and French parents."

In particular, the rating actions:

-- S&P has not assigned RCRs to those 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.

-- S&P has not assigned RCRs to entities like small second-tier
   banks 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.

-- S&P said, "Contrary to our approach for certain banks in
    Spain and Italy, we have not assigned RCRs exceeding the
    foreign currency (FC) sovereign rating for OTP Bank in
    Hungary, Bank Polska Kasa Opieki S.A. (Pekao) and mBank in
    Poland, or Z Zagrebacka Banka (ZB) in Croatia. In a
    hypothetical stress scenario, we doubt that these banks would
    have sufficient bail-in-able liabilities to absorb the impact
    on their capitalization. This possible lack of resilience is
    amplified by three factors. First, the banks' substantial
    domestic sovereign securities and loan exposure lead to a
    severe erosion of equity under our standardized assumptions,
    likely pushing the banks into a nonviability scenario.
    Second, the banks' limited historical use of capital
    instruments and other term debt means that the resolution
    authority would need to rely heavily on a bail-in of other
    senior liabilities, notably corporate and other uninsured
    deposits, to recapitalize the banks. While these liabilities
    comprise a substantial portion of the banks' balance sheets,
    we are cautious about the extent to which these deposits
    would be withdrawn in a stress situation, and also about the
    financial stability and systemic risks that could result from
    bailing in these liabilities. Third, for ZB and mBank, the
    banks might not receive sufficient and timely support from
    their higher-rated parents. We therefore cap our RCRs on
    these banks at the level of the respective FC sovereign
    credit rating."

-- For Pekao and mBank, we additionally reflected on whether
    local currency (LC) RCR liabilities would demonstrate a lower
    probability of default than the banks' FC RCR liabilities.
    Since S&P sees no support in the Polish banking law to allow
    a selective default on FC liabilities while a bank continues
    to service LC liabilities, S&P aligns its LC RCR on these
    banks with the 'BBB+' FC RCR.

-- In Slovenia, S&P has assigned 'BBB/A-2' long- and short-term
    RCRs to the largest bank in the country, Nova Ljubljanska
    Banka D.D., which is consistent with its general approach for
    banks with speculative-grade ICRs but for which it has
    reasonable visibility on the bail-in process.

-- S&P said, "In Hungary, we do not assign RCRs to the
    individual banks forming the savings cooperative group or to
    its central organ Magyar Takarekszovetkezeti Bank
    Zrt.(Takarekbank). We believe the regulators would apply a
    resolution framework to individual institutions rather than
    to the group as a whole. It is unlikely, however, that
    individual cooperative member banks, including the central
    institution Takarekbank, 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 cooperative institutions,
    including Takarekbank.

A list of Affected Ratings can be reached through:

          https://bit.ly/2zK60YZ



                            *********

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

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

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


                            *********


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

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

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

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