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

                           E U R O P E

          Thursday, July 26, 2018, Vol. 19, No. 147


                            Headlines


F R A N C E

FONCIA MANAGEMENT: Moody's Affirms B2 CFR, Outlook Stable
LOUVRE BIDCO: Moody's Assigns B2 CFR & Alters Outlook to Positive


G E R M A N Y

HETA ASSET: Moody's Withdraws Caa3 Sr. Unsecured Debt Ratings


I R E L A N D

HOUSE OF EUROPE IV: Fitch Affirms 'Csf' Ratings on 4 Note Classes


I T A L Y

MONTE DEI PASCHI: Fitch Affirms 'B' Long-Term IDR, Outlook Stable


L U X E M B O U R G

HERALD LUX: Liquidators Begin Repayments to Shareholders


N E T H E R L A N D S

ALME LOAN V: S&P Assigns B-(sf) Rating to Class F Notes
BARINGS EURO 2018-2: Moody's Assigns (P)B2 Rating to Cl. F Notes
JUBILEE CLO 2018-XX: Moody's Rates EUR10.8MM Class F Notes B2
PROMONTORIA HOLDING: Moody's Rates EUR660MM Sr. Sec. Notes 'B2'


R U S S I A

AC BANK: Liabilities Exceed Assets, Assessment Shows
BANK VVB: Liabilities Exceed Assets, Assessment Shows
INVESTTORGBANK JSCB: DIA to Participate in Bankruptcy Measures
LEADER JSC: Liabilities Exceed Assets, Assessment Shows


S W E D E N

PERSTORP HOLDING: S&P Raises ICR to 'B-', Outlook Stable


T U R K E Y

GARANTI BANK: Fitch Cuts LongTerm IDR to BB, Outlook Negative


U N I T E D   K I N G D O M

ARGON CAPITAL: Moody's Hikes Rating on Series 100 Notes to 'Ba2'
COUNTYROUTE A130: S&P Affirms 'B+' Rating on Senior Secured Loan
INTEGRATED DENTAL: S&P Alters Outlook to Neg. & Affirms B- ICR
SIGNET UK: Moody's Affirms Ba1 CFR & Alters Outlook to Negative
SP GROUP: Loss of Key Contracts Prompts Administration


                            *********



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F R A N C E
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FONCIA MANAGEMENT: Moody's Affirms B2 CFR, Outlook Stable
---------------------------------------------------------
Moody's Investors Service has affirmed B2 Corporate Family Rating
(CFR) and B2-PD Probability of Default Rating of Foncia
Management SAS, parent company of Foncia group, a leading
provider of residential real estate services primarily in France,
following the company's announcement to borrow an incremental
EUR80 million under its senior secured first-lien term loan.
Proceeds from the offering will be used to partially repay its
EUR187 million second lien facility (unrated). Concurrently,
Moody's affirmed the B2 ratings on the company's senior secured
first-lien EUR898.7 million term loan B3 (upsized by EUR80
million), EUR50 million senior secured acquisition/capex facility
and EUR150 million revolving credit facility (RCF) borrowed by
Foncia. The outlook on all ratings is stable.

RATINGS RATIONALE

The rating action reflects Foncia's revenue concentration in
France, which accounted for approximately 90% of revenues in
2017, and in residential real estate services (RRES), which is
subject to regulatory risk. Financial leverage (gross Moody's
adjusted) is at 6.4x LTM March 2018, which is considered high for
the assigned rating category. Furthermore, the acquisitive nature
of Foncia's growth strategy may slow down the deleveraging when
acquisitions are debt-financed.

Positively, the ratings reflect Foncia's leading position in the
fragmented French residential real estate services market which
provides consolidation opportunities through acquiring smaller
players. Foncia's core divisions -- Lease Management (LM), Joint
Property Management (JPM) and Renting -- benefit from inherently
recurring business (estimated at around 88% of total revenue),
providing good revenue visibility from Foncia's core operations.
The material cost reduction programme implemented in recent years
has helped to drive margin improvement while solid free cash flow
generation is expected to continue.

The stable outlook reflects its expectation of Foncia's continued
EBITDA growth driven by a combination of organic growth and
contribution from smaller bolt-on acquisitions in the absence of
a substantial change in operational or regulatory environment. It
also reflects a successful integration of the acquisitions
without negative impact on the company's leverage or liquidity.

Positive pressure could arise if Foncia's credit metrics were to
improve as a result of stronger-than-expected operational
performance, leading to (i) Moody's adjusted debt/EBITDA ratio
(proforma for acquisitions) falling sustainably below 5.0x; and
(ii) and the company's FCF/debt ratio increases towards 10%.
Negative pressure could occur as a result of (i) Moody's adjusted
debt/EBITDA ratio (proforma for acquisitions) rising above 6.5x;
or (ii) free cash flow turning negative with a negative impact on
liquidity.

Moody's expects Foncia to maintain good liquidity profile over
the next 12-18 months. As of March 31, 2018 its liquidity
consisted of EUR28 million cash on balance sheet, EUR131 million
availability under its EUR150 million RCF and fully undrawn EUR50
million acquisition/capex facility. The group has achieved
positive free cash flow for the last five years; averaging around
EUR45 million in free cash flow (before acquisitions spend) each
year. Moody's expect positive free cash flow to continue,
improved by repricings taken place in 2017 and further growth in
EBITDA. There is a single springing leverage covenant on RCF if
at least 35% of facility is drawn with ample headroom (net senior
leverage of 8.1x until 2022) and no maintenance covenants on the
loans.

The instrument ratings on the first-lien debt facilities is in
line with B2 CFR because of due to thea limited amount of second-
lien facility, which is expected to be further reduced via
proposed transaction.

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

Headquartered in France, Foncia is a leading provider of
residential real estate services through a network of
approximately 650 branches. Foncia's core services include JPM
(28% of LTM March 2018 revenues), LM and Renting (30%) and Real
Estate Brokerage (15%). During 2017 Foncia generated revenues of
around EUR844 million and a reported EBITDA of EUR163 million
resulting in EBITDA margin of 19.3%. The company is owned by a
consortium led by private equity fund Partners Group.


LOUVRE BIDCO: Moody's Assigns B2 CFR & Alters Outlook to Positive
-----------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
(CFR) with positive outlook to Louvre BidCo SAS (Louvre BidCo),
the consolidating entity of the MCS group (MCS), affirmed the B2
rating of the backed Senior Secured Notes issued by Louvre BidCo,
and changed the outlook on this to positive from stable. At the
same time, the rating agency withdrew the B2 CFR assigned to
Promontoria MCS SAS. At time of withdrawal the outlook on this
entity was stable.

RATINGS RATIONALE

The assignment of the B2 CFR reflects MCS's leadership in the
French debt purchasing market; adequate debt serviceability with
a 30-year track record mitigating model pricing risk of the
purchased portfolios; and lower than peers' leverage with
predictable cash flow. The rating also reflects the company's
monoline business model, which is both significantly smaller and
less diversified than European peers, and its ambitious organic
growth strategy. The rating further takes into account the
company's significant supplier concentration and volatility of
debt supply, as well as potential key man risk and its
unregulated status (albeit mitigated by a strong risk culture).

The positive outlook assigned to the ratings of MCS is driven by
the firm's increasing business diversification. MCS has
historically focused on acquiring secured large (i.e. above
EUR20,000 balance) non-performing loans at a deep discount, and
using in-house collection teams to collect payment, through
litigation if settlement is not achieved beforehand. In recent
years, the firm has diversified by increasing its third-party
debt servicing activity. Debt purchasing and third party
servicing are complementary businesses, requiring similar IT
investments, however debt servicing is less capital intensive and
generates more stable earnings streams. In 2017, servicing
revenues accounted for 25% of MCS' total revenues, up from 12% in
2016, mostly due to a 17-year servicing contract signed with
mortgage lender Credit Immobilier de France Developpement in
2017.

The announcement made by MCS, on June 4, 2018, that it would
acquire French third-party servicing company DSO Group (DSO),
supports the firm's ambition to diversify its income streams. The
integration of DSO would enhance MCS' servicing abilities, and
accelerate its diversification towards capital-light activities.
It would also allow MCS to service low-balance consumer
portfolios in non-banking sectors such as insurance, utilities
and telecommunications.

As part of its ongoing monitoring, Moody's will assess MCS' plans
for combining both companies' analytical models, realizing
synergies through cost reductions and sharing of best practices,
and plans for enhancing its governance and risk management
structures in light of the planned acquisition. The acquisition,
which is expected to close at or before the end of September
2018, and is still subject to approval from the anti-trust
authorities, will be 35% to 40% financed by a combination of
equity rollover by DSO's current shareholders and management and
new cash equity from funds advised or managed by BC Partners and
MCS management. The remaining funding will primarily be in the
form of committed debt financing, which is expected to be
refinanced in the high yield bond market.

The affirmation of the B2 rating of Louvre BidCo's outstanding
backed senior secured notes reflects the notes' positioning
within the group's funding structure, significant asset coverage
and level of seniority over other liabilities.

The assignment of the CFR to Louvre BidCo and the withdrawal of
the Promontoria MCS SAS CFR reflect the current group structure
following the acquisition of MCS by French Private Equity firm BC
partners in 2017, with Louvre BidCo now being the consolidated
entity of the MCS group.

WHAT COULD CHANGE THE RATING UP / DOWN

Moody's could upgrade MCS's CFR if the firm realizes the expected
cost and operational synergies following the acquisition,
translating into : (1) deleveraging, with gross debt to adjusted
EBITDA below 3.5x; (2) maintaining current profitability levels,
with the adjusted EBITDA to interest expenses above 3x; and/or
(3) greater diversification of earnings, with an accelerated
shift towards servicing, while showing a track record of
achieving projections.

Conversely, Moody's could downgrade MCS's CFR should: (1) gross
debt to adjusted EBITDA climb above 5x; (2) adjusted EBITDA to
interest expenses fall below 2x; and/or (3) the company fail to
appropriately manage its step-up in growth.



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G E R M A N Y
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HETA ASSET: Moody's Withdraws Caa3 Sr. Unsecured Debt Ratings
-------------------------------------------------------------
Moody's Investors Service has withdrawn the Caa3 backed long-term
senior unsecured debt ratings and the C backed subordinate debt
ratings of Heta Asset Resolution AG. At the time of withdrawal,
the outlook on Heta's backed long-term senior unsecured debt
ratings was positive.

The local currency rating of Heta's Aa1 backed subordinate bond
which benefits from an unconditional and irrevocable guarantee of
the Government of Austria (Aa1 stable) was unaffected by the
rating withdrawals.

RATINGS RATIONALE

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

WHAT COULD MOVE THE RATINGS UP/DOWN

An improvement of the creditworthiness of the Austrian sovereign
would exert upward pressure on the guaranteed debt rating while
any deterioration of the creditworthiness of the Austrian
sovereign would exert downward pressure.

LIST OF AFFECTED RATINGS

Issuer: Heta Asset Resolution AG

Rating Withdrawals:

Carinthian-state-guaranteed Senior Unsecured Debt (Local &
Foreign Currency), previously rated Caa3, Positive outlook

Carinthian-state-guaranteed Subordinate Debt (Local Currency),
previously rated C

Outlook Action:

Outlook, Changed to No Outlook from Positive



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I R E L A N D
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HOUSE OF EUROPE IV: Fitch Affirms 'Csf' Ratings on 4 Note Classes
-----------------------------------------------------------------
Fitch Ratings has affirmed all classes of House of Europe Funding
IV PLC as follows:

  EUR13.3 million Class A1 notes (ISIN XS0228470588): affirmed at
  'Asf'; Outlook Stable

  EUR130 million Class A2 notes (ISIN XS0228472873): affirmed at
  'CCsf'

  EUR62.5 million Class B notes (ISIN XS0228474572): affirmed at
  'Csf'

  EUR5 million Class C notes (ISIN XS022847572): affirmed at
  'Csf'

  EUR49 million Class D notes (ISIN XS0228476197): affirmed at
  'Csf'

  EUR7.6 million Class E notes (ISIN XS0228477161): affirmed at
  'Csf'

House of Europe Funding IV PLC is a managed cash arbitrage
securitisation of structured finance assets, primarily RMBS and
CMBS. The portfolio is managed by Collineo Asset Management GmbH.
The reinvestment period ended in December 2010.

Fitch has affirmed the rating on the class A1 notes despite an
increase in credit enhancement (CE), as its repayment in a rising
interest rate scenario is predicated on a timely enforcement of a
bond event of default, which Fitch views as uncertain (see Cash
Flow Analysis section).

The affirmation of the class A2 notes at 'CCsf' (significantly
under-collateralised at present) reflects the probability of full
repayment if sufficient recovery is received from the current
EUR57.4 million defaulted balance. The junior class B, C, D and E
notes have been affirmed at 'Csf' as their default is inevitable,
even assuming 100% recovery on defaulted claims.

KEY RATING DRIVERS

Increased Credit Enhancement

CE has significantly increased due to transaction's deleveraging
since July 2017. CE for the class A1 notes increased to 87.6%
from 67.7% based on the performing portfolio. Over the past year,
the class A1 notes have been paid down by around EUR30 million
through repayment of assets and some recovery from defaulted
assets. The credit quality of the portfolio has slightly
improved.

High Obligor Concentration

The portfolio is more concentrated with 22 performing assets
versus 27 last year due to the natural amortisation of the
portfolio. Consequently, the largest asset exposure is now 18.7%
of the portfolio and the 10-largest issuers represent 84.7% of
the performing portfolio.

High Defaulted Asset Concentration

The defaulted assets still contribute around 35% of the total
portfolio. Only the senior class A1 notes are fully
collateralised, which means the interest payment on the rated
noted balance of EUR267 million is supported by only a performing
portfolio of EUR106.8 million.

Cash Flow Analysis

Fitch has modelled both pre- and post-enforcement waterfalls to
consider the impact of various interest rate scenarios. The
reported weighted average spread is 1.98%, which is currently
sufficient to cover the weighted average cost of funding on
timely liabilities (0.38%). However in a rising interest rate
scenario, the transaction is exposed to interest mismatch, which
will lead to principal being diverted to cover interest payments.
The analysis shows that this scenario will trigger a missed
interest payment for at least the class C notes, which will lead
to an event of default under the transaction definitions and
possibly trigger a switch to the post-enforcement payment
waterfall.

In the post-enforcement waterfall scenario the deferral of the
class A2, B and C interest results in a best pass rating that is
significantly higher than the class A1 notes' current rating of
'Asf'. However it is not possible to predict the timing of the
event of default as it will depend on the default timing of the
collateral, prepayment rates and the interest rate increase. In a
rising interest rate scenario the longer the event of default is
delayed the more principal is diverted to cover interest due on
the more junior notes, thus eroding the benefit of the post-
enforcement waterfall. As principal is diverted CE for the senior
notes will begin to fall. Due to this uncertainty Fitch has
affirmed the rating on the senior A1 notes at 'Asf'.

VARIATIONS FROM CRITERIA

The class A1 notes pass Fitch's quantitative model at 'AAAsf'
when considering the post-enforcement waterfall in a rising
interest rate scenario. The criteria imply that in this case the
tranche could be upgraded to a higher category but the
uncertainty surrounding the timing of the event of default and
the possible erosion of the benefit as a result of the switch
limited the rating to 'Asf'. This constitutes a variation from
Fitch's Structured Finance CDOs Surveillance Rating Criteria

RATING SENSITIVITIES

Neither a 25% increase in the obligor default probability or a
25% reduction in expected recovery rates will impact the ratings
of the 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

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

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 information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.



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MONTE DEI PASCHI: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Banca Monte dei Paschi di Siena's
(MPS) Long-Term Issuer Default Rating (IDR) at 'B' and Viability
Rating (VR) at 'b'. The Outlook on the Long-Term IDR is Stable.

KEY RATING DRIVERS

IDRS, VR AND SENIOR DEBT

The ratings reflect MPS's improved asset quality and reduced
capital encumbrance by unreserved impaired loans, following the
completion of the planned doubtful loan securitisation
transaction in July 2018, and our expectation that asset quality
will improve further. The ratings also reflect our view that
funding and liquidity would not be stable without state-
guaranteed and central bank funding, which still underpin a large
part of MPS's funding and whose presence indirectly provides
stability to its deposit base. Fitch believes that further
progress is necessary for MPS to fully repair its franchise,
effectively operate in the competitive Italian landscape, keep
pace with developments in the market, and recover profitability
to sustainable levels.

MPS's pro-forma impaired loans ratio significantly reduced to
around 21% at end-March 2018 from about 36% at end-2016 through
the deconsolidation of EUR24.1 billion of securitised doubtful
loans. The ratio should reduce further by end-2018 thanks to
planned disposals, but it is likely to lag behind domestic
industry average (currently at about 13%) for some time and to
remain weak by international comparison. Fitch expects asset
quality to gradually improve in the medium term thanks to
stronger risk controls and continued economic growth. In our
opinion, lower default and danger rates combined with higher cure
rates reported during recent quarters show that this trend has
already started.

Fitch expects operating profitability to benefit from
significantly lower loan impairment charges and from a number of
initiatives being implemented, aimed at recovering revenue
generation from core businesses and improving operating
efficiency. These should generate a gradual improvement in
performance but a full turnaround will depend on management's
ability to relaunch the bank commercially and continue to achieve
planned cost reductions. However, in Fitch's view, MPS's ability
to execute its declared objectives remains highly correlated with
the economic and interest rate cycle.

State-guaranteed notes and central bank medium-term facilities
(about 20% of total funding at end-1Q18) support MPS's funding
and liquidity despite customer deposits having grown by about 30%
since end-2016. The bank issued EUR750 million Tier 2 notes in
early 2018 to institutional investors. Fitch views this as a
positive development, but Fitch does not believe the bank has yet
re-established normal market access and consider it highly
exposed to refinancing risk in the event of reduced investor
confidence or challenging market conditions. Deposit growth was
mainly from corporate clients, which Fitch views as more
opportunistic and confidence-sensitive than retail. For funding
and liquidity to be assessed more positively, the bank will need
a longer record of stability of its customer deposit base, to
increase the portion of retail funding further and to re-
establish regular and normal access to the market for its
funding.

MPS's CET1 ratio of 14.4% and total capital ratio of 15.8% at
end-1Q18 compare well with other Fitch-rated domestic banks,
although Fitch considers capital at risk of erosion from
potential losses if the bank is unable to generate sufficient
profits to absorb operating expenses. The FCC ratio declined by
almost 200bp in 1Q18 to 11.7%, following the negative EUR1.4
billion impact from IFRS9 first time adoption, which is phased-in
in five years in the capital ratios. Fitch believes that the
bank's capitalisation is still not commensurate with its risks.
Its pro-forma unreserved impaired loans excluding securitised
impaired loans accounted for over 100% of Fitch Core Capital
(FCC) at end-1Q18, albeit improving from around 390% at end-2016.
In our assessment of capital, Fitch recognises that capital
encumbrance should improve to more acceptable levels as planned
impaired loans disposals continue, and get closer to higher-rated
domestic peers. MPS's exposure to Italian sovereign debt is high,
at over 2.5x its FCC and represents a potential risk for the bank
in a volatile market environment.

The Stable Outlook reflects our expectation that the bank's
prospects remain stable provided that it continues to execute on
its restructuring and that the operating environment does not
deteriorate.

MPS's senior unsecured debt is rated in line with its IDRs. Fitch
assigns a Recovery Rating of 'RR4' the debt rating to reflect its
expectation of average recovery prospects for senior bondholders.

SUPPORT RATING (SR) AND SUPPORT RATING FLOOR (SRF)

The SR and SRF reflect Fitch's view that although external
support is possible it cannot be relied upon. Senior creditors
can no longer expect to receive full extraordinary support from
the sovereign in the event that the bank becomes non-viable. The
EU's Bank Recovery and Resolution Directive (BRRD) and the Single
Resolution Mechanism (SRM) for eurozone banks provide a framework
for the resolution of banks that requires senior creditors to
participate in losses, if necessary, instead of or ahead of a
bank receiving sovereign support.

SENIOR STATE-GUARANTEED DEBT

The notes' long-term rating is based on the Republic of Italy's
(BBB/Stable) direct, unconditional and irrevocable guarantees for
the issues, which cover the notes' payments of principal and
interest. Italy's guarantees were issued by the Ministry of
Economy and Finance under Law Decree n. 237 dated December 23,
2016, subsequently converted into Law 15/2017.

The rating reflects Fitch's expectation that Italy will honour
the guarantees provided to the noteholders in a full and timely
manner. The state guarantees rank pari passu with Italy's other
unsecured and unguaranteed senior obligations.

SUBORDINATED DEBT

The notes are rated two notches below MPS's 'b' VR to reflect our
expectations of poor recovery prospects for the notes in case of
a non-viability event. Fitch believes that should the bank fail
MPS is at risk of being placed into outright resolution and that
an intermediary solution prior to resolution (such as a debt
restructuring with distressed debt exchange or a second
precautionary recapitalisation similar to the one received in
August 2017) is less likely.

Fitch's view is supported by the thin layers of junior non-equity
capital currently present at the bank (MPS is just beginning to
rebuild its subordinated debt buffers) relative to the risks
faced, specifically the still high non-performing loan levels
after the disposal of around EUR28 billion of impaired loans
planned for 2018). The prospects of poor recoveries for
subordinated bondholders in a resolution scenario are reflected
in the 'RR6' Recovery Rating assigned to the notes.

Fitch does not notch the notes for non-performance risk as no
coupon flexibility is included in their terms.

RATING SENSITIVITIES

IDRS, VR AND SENIOR DEBT

The ratings could be downgraded if the bank fails to turn its
profitability around and normalise its funding and liquidity
profile. An increase in impaired loans would also put the ratings
under pressure, especially if it results in a significant
increase in capital encumbrance.

The ratings could be upgraded if profitability recovers to
acceptable and sustainable levels, while maintaining adequate
capitalisation and good control over new NPL generation. An
upgrade would require evidence of the bank returning to
normalised funding and liquidity levels.

SR AND SRF

An upgrade of the SR and upward revision of the SRF would be
contingent on a positive change in the sovereign's propensity to
support MPS. While not impossible, this is highly unlikely, in
Fitch's view.

SENIOR STATE-GUARANTEED DEBT

The notes' long- term rating is sensitive to changes in Italy's
Long-Term IDR. Any downgrade or upgrade of Italy's IDR would be
reflected in the notes' rating. The notes' rating is also
sensitive to any changes in the nature of the guarantee, which
Fitch does not expect.

SUBORDINATED DEBT

The notes' rating is sensitive to a change in the bank's VR, from
which it is notched. The notes' rating is also sensitive to a
change in notching should Fitch change its assessment of loss
severity (for example the notching could narrow if the amount of
outstanding junior debt buffers in relation to the risks faced
gets larger either because debt buffers are built or risks
reduce) or relative non-performance risk.

The rating actions are as follows:

Long-Term IDR: affirmed at 'B'; Outlook Stable

Short-Term IDR: affirmed at 'B'

Viability Rating: affirmed at 'b'

Support Rating: affirmed at '5'

Support Rating Floor: affirmed at ''No Floor'

Debt issuance programme (senior debt): affirmed at 'B'/'RR4'

Senior unsecured debt: affirmed at 'B'/'RR4'

Tier 2 subordinated debt: affirmed at 'CCC+'/'RR6'

State-guaranteed debt: affirmed at 'BBB'



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L U X E M B O U R G
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HERALD LUX: Liquidators Begin Repayments to Shareholders
--------------------------------------------------------
Stephanie Bodoni at Bloomberg News reports that the Luxembourg
liquidators of Herald (Lux) US Absolute Return Fund, one of the
three Luxembourg-based mutual funds that had placed assets with
fraudster Bernard Madoff, started the first repayments to
affected shareholders.

According to Bloomberg, liquidators on July 20 said their
decision follows court rulings that gave the green light to start
making the payments.

"Next payments are planned for July 26" and Aug. 23, liquidators,
as cited by Bloomberg, said, adding they want to close the first
distributions by the end of September.

                     About Bernard L. Madoff

Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff
orchestrated the largest Ponzi scheme in history, with losses
topping US$50 billion.  On Dec. 15, 2008, the Honorable Louis A.
Stanton of the U.S. District Court for the Southern District of
New York granted the application of the Securities Investor
Protection Corporation for a decree adjudicating that the
customers of BLMIS are in need of the protection afforded by the
Securities Investor Protection Act of 1970.  The District Court's
Protective Order (i) appointed Irving H. Picard, Esq., as trustee
for the liquidation of BLMIS, (ii) appointed Baker & Hostetler
LLP as his counsel, and (iii) removed the SIPA Liquidation
proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No.
08-01789) (Lifland, J.).  Mr. Picard has retained AlixPartners
LLP as claims agent.

On April 13, 2009, former BLMIS clients filed an involuntary
Chapter 7 bankruptcy petition against Bernard Madoff (Bankr.
S.D.N.Y. 09-11893).  The petitioning creditors -- Blumenthal &
Associates Florida General Partnership, Martin Rappaport
Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and
Steven Morganstern -- assert US$64 million in claims against Mr.
Madoff based on the balances contained in the last statements
they got from BLMIS.

On April 14, 2009, Grant Thornton UK LLP as receiver placed
Madoff Securities International Limited in London under
bankruptcy protection pursuant to Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D. Fla. 09-16751).  The Chapter 15 case
was later transferred to Manhattan.  In June 2009, Judge Lifland
approved the consolidation of the Madoff SIPA proceedings and the
bankruptcy case.

Judge Denny Chin of the U.S. District Court for the Southern
District of New York on June 29, 2009, sentenced Mr. Madoff to
150 years of life imprisonment for defrauding investors in United
States v. Madoff, No. 09-CR-213 (S.D.N.Y.).

From recoveries in lawsuits coupled with money advanced by SIPC,
Mr. Picard has commenced distributions to victims.  As of
June 13, 2018, the SIPA Trustee has recovered $12.98 billion,
representing 74 percent of the $17.5 billion lost by customers in
the Ponzi scheme.  Following the ninth distribution of $620.9
million in February 2018, the aggregate amount distributed to
customers will total nearly $11.4 billion.  This ninth pro rata
interim distribution, when combined with the prior distributions,
will equal 63.904 percent of each customer's allowed claim
amount, unless that claim has been fully satisfied.



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ALME LOAN V: S&P Assigns B-(sf) Rating to Class F Notes
-------------------------------------------------------
S&P Global Ratings assigned its credit ratings to ALME Loan
Funding V B.V.'s class A, B-1, B-2, C-1, C-2, D, E, and F notes.

The transaction is a European cash flow corporate cash flow
collateralized loan obligation (CLO) managed by Apollo Management
International LLP.

The original class A, B-1, B-2, C, D, E, and F notes were
redeemed with the proceeds from the issuance of the replacement
notes on the July 23, 2018 refinancing date, upon which S&P
withdrew the ratings on the original notes. The unrated
subordinated notes initially issued were not redeemed at closing
and remain outstanding. Additional unrated subordinated notes
were issued on the refinancing date.

The ratings assigned to ALME Loan Funding V's floating-rate notes
reflect S&P's assessment of:

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

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

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

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

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes permanently switch to semiannual payments. The
portfolio's reinvestment period ends approximately four years
after closing and its maximum average maturity date is 8.5 years
after closing.

The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds. Therefore, S&P has conducted its credit and cash
flow analysis by applying its criteria for corporate cash flow
collateralized debt obligations.

S&P said, "In our cash flow analysis, we used the EUR400 million
target par amount, the covenanted weighted-average spread
(3.40%), the reference weighted-average coupon (5.00%), and the
target minimum weighted-average recovery rate as indicated by the
collateral manager. We applied various cash flow stress
scenarios, using four different default patterns, in conjunction
with different interest rate stress scenarios for each liability
rating category.

"Under our structured finance ratings above the sovereign
criteria, we consider that the transaction's exposure to country
risk is sufficiently mitigated at the assigned ratings.

The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under S&P's current counterparty criteria.

The transaction's legal structure is bankruptcy remote, in line
with S&P's legal criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, it believes its ratings are
commensurate with the available credit enhancement for each class
of notes.

  RATINGS LIST

  ALME Loan Funding V B.V.
  EUR411.325 Million Senior Secured And Deferrable Floating-Rate
  Notes And Participating Term Certificates

  Ratings Assigned (Refinancing Notes)

  Class                Rating                        Amount
                                                 (mil. EUR)

  A                    AAA (sf)                     223.000
  B-1                  AA (sf)                       47.947
  B-2                  AA (sf)                       21.053
  C-1                  A (sf)                        15.526
  C-2                  A (sf)                         9.474
  D                    BBB (sf)                      19.700
  E                    BB (sf)                       22.700
  F                    B- (sf)                       10.600
  Sub. notes           NR                            41.325

  Ratings Withdrawn (Original Notes)

  Class                Rating
               To                From

  A            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.


BARINGS EURO 2018-2: Moody's Assigns (P)B2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
eleven classes of notes to be issued by Barings Euro CLO 2018-2
B.V.:

EUR229,000,000 Class A-1A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR5,000,000 Class A-1B Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aaa (sf)

EUR14,000,000 Class A-2 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR8,000,000 Class B-1A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR10,000,000 Class B-1B Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR15,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR13,300,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR15,000,000 Class C-2 Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR18,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa2 (sf)

EUR30,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR12,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in October 2031. The provisional ratings reflect the
risks due to defaults on the underlying portfolio 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, Barings (U.K.)
Limited ("Barings", the "Manager"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Barings 2018-2 is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior obligations and up to
10% of the portfolio may consist of unsecured senior loans,
unsecured senior bonds, second lien loans, mezzanine obligations
and high yield bonds. At closing, the portfolio is expected to be
70% ramped up and to be comprised predominantly of corporate
loans to obligors domiciled in Western Europe.

Barings 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 four-years reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from the sale of
credit risk obligations, and are subject to certain restrictions.

In addition to the eleven classes of notes rated by Moody's, the
Issuer will issue EUR36.7M of subordinated notes which will not
be rated.

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

Methodology Underlying the Rating Action:

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

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

The 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 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:

Target Par Amount: EUR400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.55%

Weighted Average Fixed Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 42.80%

Weighted Average Life (WAL): 8.5 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond ratings of "A1" or below. According to the
portfolio constraints, the total exposure to countries with a
local currency country risk bond ceiling ("LCC") below "Aa3"
shall not exceed 10%, the total exposure to countries with an LCC
below "A3" shall not exceed 2.5% and the total exposure to
countries with an LCC below "Baa3" shall not exceed 0%. Given
this portfolio composition, the model was run with different
target par amounts depending on the target rating of each class
of notes as further described in the methodology. The portfolio
haircuts are a function of the exposure size to countries with
LCC of "A1" or below and the target ratings of the rated notes,
and amount to 0.375% for the Class A-1A, Class A-1B and Class A-2
Notes, 0.25% for the Class B-1A, Class B-1B and Class B-2 Notes,
0.1875% for the Class C-1 and Class C-2 notes, 0% for Classes D,
E and F Notes.

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 2900 to 3335)

Rating Impact in Rating Notches:

Class A-1A Senior Secured Floating Rate Notes: 0

Class A-1B Senior Secured Fixed Rate Notes: 0

Class A-2 Senior Secured Floating Rate Notes: -1

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

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

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

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

Class C-2 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: -2

Percentage Change in WARF -- increase of 30% (from 2900 to 3770)

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

Class A-1B Senior Secured Fixed Rate Notes: -1

Class A-2 Senior Secured Floating Rate Notes: -3

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

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

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

Class C-1 Senior Secured Deferrable Floating Rate Notes: -4

Class C-2 Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -4


JUBILEE CLO 2018-XX: Moody's Rates EUR10.8MM Class F Notes B2
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Jubilee CLO
2018-XX B.V.:

EUR2,000,000 Class X Senior Secured Floating Rate Notes due 2031,
Definitive Rating Assigned Aaa (sf)

EUR236,000,000 Class A Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR16,200,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Definitive Rating Assigned Aa2 (sf)

EUR25,000,000 Class B-3 Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR12,800,000 Class C-1 Deferrable Mezzanine Floating Rate Notes
due 2031, Definitive Rating Assigned A2 (sf)

EUR15,000,000 Class C-2 Deferrable Mezzanine Floating Rate Notes
due 2031, Definitive Rating Assigned A2 (sf)

EUR20,000,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2031, Definitive Rating Assigned Baa2 (sf)

EUR26,300,000 Class E Deferrable Junior Floating Rate Notes due
2031, Definitive Rating Assigned Ba2 (sf)

EUR10,800,000 Class F Deferrable Junior Floating Rate Notes due
2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. The 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, Alcentra Limited, has
sufficient experience and operational capacity and is capable of
managing this CLO.

Jubilee CLO 2018-XX B.V. is a managed cash flow CLO. 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 obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to
Jubilee CLO 2018-XX B.V. to hold bonds if Volcker Rule is
changed. The portfolio is expected to be approximately 90% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

Alcentra 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 four-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.

In addition to the ten classes of notes rated by Moody's, the
Issuer issued EUR 37.6m of subordinated notes, which will not be
rated.

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

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. Alcentra'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 400,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2825

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
additional sensitivity analysis, which was an important component
in determining the 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:

Percentage Change in WARF: WARF + 15% (to 3249 from 2825)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A Senior Secured Floating Rate Notes: 0

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

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

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

Class C-1 Deferrable Mezzanine Floating Rate Notes: -2

Class C-2 Deferrable Mezzanine Floating Rate Notes: -2

Class D Deferrable Mezzanine Floating Rate Notes.-2

Class E Deferrable Junior Floating Rate Notes: -1

Class F Deferrable Junior Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3673 from 2825)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A Senior Secured Floating Rate Notes: -1

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

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

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

Class C-1 Deferrable Mezzanine Floating Rate Notes: -4

Class C-2 Deferrable Mezzanine Floating Rate Notes: -4

Class D Deferrable Mezzanine Floating Rate Notes.-3

Class E Deferrable Junior Floating Rate Notes: -2

Class F Deferrable Junior Floating Rate Notes: -2


PROMONTORIA HOLDING: Moody's Rates EUR660MM Sr. Sec. Notes 'B2'
---------------------------------------------------------------
Moody's Investors Service has assigned B2 ratings to the EUR660
million senior secured notes to be issued by Promontoria Holding
264 B.V. The Proceeds from the notes will be used to finance the
acquisition of WFS Global Holding S.A.S. (WFS) by funds
controlled by private equity firm Cerberus to refinance existing
debt of WFS and pay transaction fees and expenses.

Concurrently, Moody's places on review for upgrade the B3
corporate family rating (CFR), the B3-PD probability of default
rating (PDR) of WFS as well as the B3 ratings of its existing
EUR375m Senior Secured Notes and the Caa2 rating of its existing
EUR140m Senior unsecured Notes.

Moody's expects the outstanding loans and notes to be repaid upon
closing of the acquisition and to withdraw CFR, PDR and
instrument ratings upon repayment.

Based on the anticipated financing structure of the transaction
upon completion of the deal, Moody's anticipates to assign a B2
CFR and B2-PD PDR to Promontoria, at the same level than the
notes issued.

RATINGS RATIONALE

The B2 senior secured notes rating reflects Promontoria's (i)
strong position in the cargo business as the largest independent
global cargo handler, which is complemented by its trucking
network across Europe and somewhat high barriers to entry given
the limited supply of on-airport warehouses; (ii) good
geographical diversification with revenues evenly split between
Europe and the Americas; and (iii) relatively stable client base
and good track record in contract renewal, offsetting some
customer concentration to Air France and American Airlines
representing around 16% of revenues.

However, the rating also reflects the company's (i) core cargo
business' exposure to economic and international trade
cyclicality; (ii) airline customer base and competitive nature of
the industry which is causing price pressure and consolidation;
(iii) moderately high lease adjusted debt to EBITDA of around
4.5x as expected by year-end 2018 and (iv) historical non-
recurring costs.

The B2 rating to the proposed notes and the review for upgrade of
the existing B3 CFR also reflects Moody's expectation that non-
recurring costs will reduce substantially in 2018, that the new
owner will continue to focus on operational improvements
including labour related initiatives and investments in
technology and that the contribution to revenues from ground
handling activities will remain relatively unchanged with
commercial efforts targeting high volume narrow bodied dominated
airports. The rating also reflects a significantly lower cost of
debt compared to the existing capital structure with EBITA to
Interest improving to around 2x from 1.2x.

Liquidity

Moody's views WFS's liquidity as adequate. The company will
benefit from EUR70 million availability under its EUR100 million
RCF post drawdowns and letters of credit utilisation. In
addition, free cash flow generation is expected to improve due to
a lower cost of debt assumed and a reduction of non-recurring
costs. Moody's expects RCF/Debt as defined by Moody's in the 10%-
15% range. The company will also benefit from a longer debt
maturity profile pro-forma for the refinancing.

Structural Considerations

The EUR660 million senior secured notes due 2023 (rated B2) share
the same security (comprising share pledges in subsidiaries,
intragroup receivables due to subsidiaries, and cash) and
guarantees as the EUR100 million RCF (unrated), but rank behind
the RCF due to contractual subordination via the intercreditor
agreement in case of enforcement. This leads to an outcome in
which the Senior Secured Notes will be rated at the same level of
the CFR, since the senior secured debt accounts for the vast
majority of modeled debt.

The ratings also incorporate its understanding that the
shareholder funding into the restricted group is wholly via
common equity.

Promontoria is a global aviation services company principally
focused on cargo handling (71% of last twelve months revenues
ended March 31, 2018) and ground handling (25%), with a small
presence in Transport Infrastructure Management & Services (TIMS,
4%). For the twelve months ended March 31 2018, WFS reported
total revenues of EUR1,229 million and EBITDA as adjusted by the
company of EUR134 million. As of March 31, 2018, WFS operated at
198 airports in 22 countries and served over 250 airlines
worldwide.

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



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


AC BANK: Liabilities Exceed Assets, Assessment Shows
----------------------------------------------------
The provisional administration to manage JSC AC Bank, appointed
by virtue of Bank of Russia Order No. OD-774, dated March 29,
2018, following the revocation of its banking license, in the
course of examination of the bank's financial standing revealed
that its management closed transactions aimed at diverting liquid
assets through lending to borrowers of dubious creditworthiness
and not engaged in real business activity, as well as through
transfer of debt and transfer of credit claims under corporate
loan agreements.

Also, the provisional administration encountered obstruction of
its operations from the bank's management that failed to submit
evidence of ownership of the bank's assets to a total of over 1.3
billion rubles.

The provisional administration estimates the value of the bank's
assets to be not more than RUR18.7 billion compared to more than
RUR25 billion of its liabilities to creditors.

On May 21, 2018, the Arbitration Court of the Samara Region
recognized the bank as bankrupt.  The State Corporation Deposit
Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the former management and officials of JSC AC Bank
to the Prosecutor General's Office of the Russian Federation, the
Ministry of Internal Affairs of the Russian Federation and the
Investigative Committee of the Russian Federation for
consideration and procedural decision making.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.


BANK VVB: Liabilities Exceed Assets, Assessment Shows
-----------------------------------------------------
The provisional administration to manage PJSC Bank VVB
(hereinafter, the Bank) appointed by virtue of Bank of Russia
Order No. OD-893, dated April 9, 2018, due to the revocation of
its banking license, in the course of examination of the Bank's
financial standing has revealed operations aimed at diverting the
Bank's assets through transfer of credit claims to legal entities
with dubious creditworthiness and issuing loans to counterparties
to settle liabilities arising from the said transfers.  The total
value of these operations was over RUR2.4 billion.

The provisional administration, acting within its mandate,
established facts suggesting that the Bank's former management
and officials conducted operations aimed at diverting the Bank's
assets through purchasing and selling real estate.

Also, the provisional administration encountered obstruction of
its operations from the Bank's management that failed to submit
loan documentation to a total of over RUR1.2 billion.

The provisional administration estimates the value of the Bank's
assets to be not more than RUR6.5 billion, whereas its
liabilities exceed RUR12.2 billion.

On May 16, 2018, the Arbitration Court of the City of Sevastopol
recognized the bank as insolvent (bankrupt).  The State
Corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offence conducted
by the former management and owners of the Bank to the Prosecutor
General's Office of the Russian Federation, the Ministry of
Internal Affairs of the Russian Federation and the Investigative
Committee of the Russian Federation for consideration and
procedural decision making.


INVESTTORGBANK JSCB: DIA to Participate in Bankruptcy Measures
--------------------------------------------------------------
The Bank of Russia on July 12 approved amendments to the plan for
the State Corporation Deposit Insurance Agency to participate in
bankruptcy prevention measures for Joint-Stock Commercial Bank
"Investment Trade Bank" (Public Joint-Stock Company), further
referred to as the Bank.  These amendments include the updated
version of the financial resolution plan, which does not provide
for increasing the amount of funds allocated to the resolution of
the Bank.

According to the new financial resolution plan, Public Joint-
Stock Company Transkapitalbank will continue to act as the
Investor.

The Bank and the Investor aim for balanced growth of the mortgage
portfolio and development of the OFZ portfolio with the value
equal to the financial support received from the Bank of Russia
in order to create a reliable source for settling the Bank's
liabilities and receiving guaranteed interest.  Under the
financial model, outlined in the financial resolution plan, the
Bank will become profitable in 2020.

A detailed plan for repaying the bad debt was developed, together
with the measures for cutting operating costs and enhancing
operational efficiency.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.


LEADER JSC: Liabilities Exceed Assets, Assessment Shows
-------------------------------------------------------
The provisional administration to manage non-bank credit
institution LEADER (JSC) appointed by Bank of Russia Order No.
OD-939, dated April 13, 2018, due to the revocation of its
banking license, in the course of examination of the
institution's financial standing has revealed foreign exchange
operations at non-market prices aimed at concealing the theft of
funds from cash desks of the institution's internal structural
divisions.

Stocktaking conducted by the provisional administration has
revealed the lack of certain property listed on the balance sheet
of non-bank credit institution LEADER (JSC).

The provisional administration estimates the value of the
institution's assets to be no more than RUR292 billion, whereas
its liabilities exceed RUR383 billion.

On July 3, 2018, the Arbitration Court of the City of Moscow
recognized non-bank credit institution LEADER (JSC) as insolvent
(bankrupt). The State Corporation Deposit Insurance Agency was
appointed as a receiver.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offence conducted
by the former management and owners of non-bank credit
institution LEADER to the Prosecutor General's Office of the
Russian Federation, the Ministry of Internal Affairs of the
Russian Federation and the Investigative Committee of the Russian
Federation for consideration and procedural decision making.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.



===========
S W E D E N
===========


PERSTORP HOLDING: S&P Raises ICR to 'B-', Outlook Stable
--------------------------------------------------------
S&P Global Ratings said that it raised to 'B-' from 'CCC+' its
long-term issuer credit rating on Sweden-headquartered specialty
chemicals producer Perstorp Holding AB. The outlook is stable.

S&P said, "We also raised the issue rating on Perstorp's euro-
and U.S. dollar-denominated senior secured notes to 'B' from 'B-
'. The '2' recovery rating reflects our expectation of
substantial recovery (70%-90%; rounded estimate: 80%) in the
event of a payment default.

"In addition, we raised the issue rating on Perstorp's $420
million second-lien secured notes due in September 2021 to 'CCC'
from 'CCC-'. The '6' recovery rating on the notes reflects the
contractual subordination of the notes and our expectation of
negligible recovery (0%-10%; rounded estimate: 0%) in the event
of a payment default.

"Finally, we raised our issue rating on the EUR234 million
subordinated notes due December 2022 issued by the private
limited liability company Prague CE S.a.r.l to 'CCC' from 'CCC-'.
The '6' recovery rating reflects our expectation of negligible
recovery (0%-10%; rounded estimate: 0%) in the event of a payment
default.

"Our upgrade recognizes the sustained growth in Perstorp's EBITDA
and reduction in leverage that the company has delivered over the
past several quarters. This progress reflects the strong volume
growth across Perstorp's main business lines (notably
caprolactones, trimethylolpropane, and oxo chemicals), steady
pass-through of higher raw material prices to customers, and
higher sales from the Valerox project, which was successfully
delivered in 2015. Further helped by efficiencies and a focus on
margins over volume, Perstorp's adjusted EBITDA grew to about
Swedish krona (SEK) 2.4 billion in the 12 months to June 30,
2018, on an S&P Global Ratings-adjusted EBITDA margin of more
than 16.5%, from SEK1.7 billion in 2015 and SEK1.8 billion in
2016 on an average margin of 15%-16%. This improvement in EBITDA
gradually translated into a reduction in the adjusted debt-to-
EBITDA ratio to below 7x, down from elevated historical levels of
more than 8x.

"Under our base-case forecast, we assume that Perstorp's EBITDA
will be about SEK2.3 billion-SEK2.4 billion in 2018 and
SEK2.4 billion-SEK2.5 billion in 2019. We anticipate that the
company's EBITDA will benefit from the ongoing healthy demand in
its end markets (notwithstanding normalized supply/demand
balance), and that it will largely defend its margins in the
inflationary cost environment, albeit with a possible time lag.
Our forecast also captures Perstorp's organic growth strategy,
involving ongoing reinvestments of a large portion of its
operating cash flows into capital expenditure (capex) to support
capacity expansions and de-bottlenecking at existing plants.
Still, while we forecast that Perstorp will generate modest
positive free operating cash flow (FOCF) in 2018, we believe
there is a risk that this could be disrupted by higher-than-
anticipated working capital outflows -- due to exchange-rate
impact as seen in the second quarter of 2018 or a delay in
receivables -- or the decision to increase strategic investments.

"We view Perstorp's second quarter 2018 operating performance as
healthy, with sales and EBTIDA for the specialties solutions
business benefiting from higher prices and positive exchange-rate
effect, and notwithstanding negative volume effect in comparison
with the corresponding period in 2017 due to the availability of
certain product lines. The advanced chemicals and derivatives
business also performed well, helped by both prices and volumes,
even though margins declined somewhat due to higher cost of raw
materials. Still, we note that Perstorp's EBITDA was boosted by
the positive exchange-rate effect of SEK102 million in the second
quarter, which also led to higher reported debt and leverage."

S&P's 2018-2019 base case assumes:

-- High-single-digit revenue growth in 2018, thanks to improved
    pricing and a better product mix across Perstorp's portfolio.
    Growth will be supported by continued healthy global demand
    thanks to supportive macroeconomic conditions in EMEA, the
    Americas, and Asia-Pacific, and the successful pass-through
    of higher raw material prices to customers. For 2019, we
    assume normalized revenue growth of about 3%.

-- Adjusted EBITDA margins maintained at approximately 16% in
    both years. This compares well with the specialty chemicals
    industry average of 12%-20%.

-- Capital expenditure of SEK700 million-SEK750 million in 2018.

-- Year-end working capital outflows of about SEK200 million-
    SEK220 million, taking into account management's focus on
    disciplined working capital management but also capital
    requirements due to the growth of the business.

-- No acquisitions, disposals (notably of the bio business), or
    dividends.

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

-- Adjusted EBITDA of approximately SEK2.3 billion-SEK2.4
    billion in 2018, rising to approximately SEK2.4 billion-
    SEK2.5 billion in 2019.

-- Adjusted debt-to-EBITDA ratio of approximately 6.2x-6.3x in
    2018 (or 6.5x-6.7x if the currently weak Swedish krona
    continues), improving to about 6.0x-6.5x in 2019 thanks to
    growth in EBITDA. This compares to 6.4x at the end of 2017.

-- Adjusted funds from operations (FFO)-to-debt ratio of
    approximately 4.0%-6.0% in both years.

-- EBITDA cash interest coverage of approximately 2.0x.

S&P said, "The stable outlook reflects our view that Perstorp
will generate adjusted EBITDA of approximately SEK2.3 billion-
SEK2.4 billion in 2018 and maintain an adjusted debt-to-EBITDA
ratio clearly below 7x. The outlook also factors in that,
notwithstanding still-sizable investments, Perstorp will generate
at least broadly neutral FOCF and maintain adequate liquidity and
headroom under contractually tightening financial covenants.

"We could raise the rating on Perstorp if it delivers a sustained
reduction in leverage to below 6x and its EBITDA cash interest
coverage ratio improves durably to about 3x. A potential upgrade
could also hinge on Perstorp developing a track record of
recurring positive FOCF generation, which could be supported by
continued growth in EBITDA and the maintenance of adjusted EBITDA
margins at about 16%.

"We could lower the rating if Perstorp's adjusted debt to EBITDA
were to exceed 7x or its EBITDA interest coverage ratio weakened
below 2x without near-term recovery prospects, or if its
liquidity and headroom under covenants came under pressure. This
could stem from exchange-rate shocks between the Swedish krona
and either the U.S. dollar or the euro, increased input price
volatility, and an inability to pass such changes on to customers
in a timely manner. Weakening in the ratios could also result
from the company embarking on sizable debt-financed capex or
acquisitions."



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


GARANTI BANK: Fitch Cuts LongTerm IDR to BB, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has downgraded Garanti Bank S.A.'s (GBR) Long-Term
Issuer Default Rating (IDR) to 'BB', Short-Term IDR to 'B' and
Support Rating (SR) to '3'. The Outlook on the Long-Term IDR is
Negative. The Viability Rating is not affected.

The downgrade follows that of GBR's direct parent Turkiye Garanti
Bankasi A.S. (TGB) to 'BB', on the back of the recent downgrade
of the Turkish sovereign rating.

KEY RATING DRIVERS

IDRS AND SUPPORT RATING

GBR is directly fully-owned by Turkey-based TGB. The ratings of
the latter in turn, are driven by support from its controlling
shareholder Banco Bilbao Vizcaya Argentaria (BBVA; A-/Stable),
headquartered in Spain.

GBR's IDRs and Support Rating are driven by our expectation that
extraordinary support would be forthcoming from BBVA, given the
ownership link, reputational considerations and GBR's small size
in relation to BBVA. GBR's IDR is capped by TGB's because Fitch
believes that the probability of support from BBVA would not be
higher than for TGB, which is more important for the Spanish
group's strategy.

Fitch continues to view GBR as a strategic subsidiary of TGB,
which is supported by a track record of capital and liquidity
support, high management and systems integration and common
branding. However GBR's direct strategic importance to BBVA is
rather limited, as Romania does not feature prominently in the
group's strategy and is unrelated to BBVA's acquisition of a
controlling stake in TGB in 2015.

The Negative Outlook on GBR's Long-Term IDR reflects that on
TGB's, which reflects the Negative Outlook on the Turkish
sovereign Long-Term IDR.

RATING SENSITIVITIES

IDRS AND SUPPORT RATING

A further one-notch downgrade of TGB's Long-Term IDR would
trigger a downgrade of GBR's Long-Term IDR to the level of the
subsidiary's VR, because TGB's IDR acts as a cap for GBR's. A
downgrade of BBVA's Long-Term IDR is unlikely to impact GBR's
ratings, because Fitch would expect to rate GBR three notches
below BBVA if TGB's ratings allow.

An upgrade of TGB's Long-Term IDR will result in an upgrade of
GBR's. GBR's Short-Term IDR of 'B' corresponds to Long-Term IDRs
between 'BB+' and 'B-' and will only change if the Long-Term IDR
moves outside this range.

The rating actions are as follows:

Garanti Bank S.A.

Long-Term IDR downgraded to 'BB' from 'BBB-'; Outlook Negative

Short-Term IDR downgraded to 'B' from 'F3'

Support Rating downgraded to '3' from '2'

Viability Rating of 'bb-', unaffected



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


ARGON CAPITAL: Moody's Hikes Rating on Series 100 Notes to 'Ba2'
----------------------------------------------------------------
Moody's Investors Service has upgraded the rating on the
following notes issued by Argon Capital Public Limited Company:

Series 100 GBP750,000,000 Perpetual Non-Cumulative Securities
Notes, Upgraded to Ba2; previously on Jun 21, 2017 Upgraded to
Ba3

RATINGS RATIONALE

The rating action on Series 100 Notes is the result of the
upgrade to Ba2(hyb) from Ba3(hyb) on July 16, 2018 of the Pref.
Stock Non-cumulative of The Royal Bank of Scotland Group plc.

The Series 100 Notes are a repackaging of the Pref. Stock Non-
cumulative of The Royal Bank of Scotland Group plc.

Methodology Underlying the Rating Action:

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

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

This rating of the Series 100 Notes is essentially a pass-through
of the rating of the Pref. Stock Non-cumulative of The Royal Bank
of Scotland Group plc. Noteholders are exposed to the credit risk
of the preference shares of The Royal Bank of Scotland Group plc
and therefore the rating moves in lock-step.

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


COUNTYROUTE A130: S&P Affirms 'B+' Rating on Senior Secured Loan
----------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'B+' long-term issue
rating on the GBP88 million senior secured bank loan and its 'B-'
long-term rating on the GBP5.5 million junior subordinated
secured mezzanine bank loan (junior debt) issued by U.K.-based
special-purpose vehicle CountyRoute (A130) PLC (ProjectCo or the
issuer). The maturity of both debt instruments is March 2026. The
outlook is stable.

S&P said, "At the same time we revised upward the recovery rating
on the senior debt to '1+' to reflect our opinion that there is a
very high likelihood of full recovery of principal in the case of
a payment default. The recovery rating on the junior debt is
unchanged at '1', reflecting our expectation of very high
recovery (90%-100%) of principal. Recovery is supported by the
four-year residual term of the debt compared with the concession
end in 2030, as well as by reserved cash balances in excess of
the debt service reserves."

ProjectCo used the proceeds of the senior and junior debt it
issued in 2004 for the purposes of refinancing the original
project debt and re-profiling its debt-service schedule.
ProjectCo operates under a 30-year design, build, finance, and
operate concession granted by Essex County Council in 1999 for
the 15-kilometer A130 by-pass (A130), which runs from Chelmsford
to Basildon in South East England. Construction was completed in
2003. Project revenues comprise the receipt of shadow toll
payments based on both road usage and availability. The split of
these payments is approximately 45% availability and 55% road
usage, exposing the project to some traffic risk. ProjectCo is a
wholly owned subsidiary of John Laing Infrastructure Ltd.
Exposure to the credit quality of the sole shareholder, John
Laing Group PLC, constrains our rating on the senior debt.

S&P said, "The affirmation of the ratings reflects our view of
the project's robust liquidity and solid operational service
performance, which offsets the risk of the weak financial profile
at the current rating levels. ProjectCo's weak financial
performance under our base case results from relatively low
traffic volumes compared with expectations at financial close,
and from the requirement to fund a portion of the costs
associated with the rectification of embankment cracks. These
factors have led to sustained periods of junior debt and
distribution lock-up, which we forecast to continue through to
final senior debt repayment in March 2026. Under our base-case
analysis, we forecast the minimum annual senior debt service
coverage ratio (ADSCR) to dip below 1x in two forecast periods
(March 2020 and September 2020). However, we expect debt service
to be supported by liquidity reserves, which have built up as a
result of junior and distribution lock-up covenant breaches and
total close to GBP13 million at June 2018. This compares to GBP67
million of outstanding senior debt. The liquidity reserves also
underpin the project's resilience under our downside sensitivity
stress case and permit, in our opinion, the project to continue
to service senior debt even during periods of extended traffic or
operational cost stress."

The outstanding junior debt balance was GBP3.5 million as of June
2018 following the payment of all due principal and interest
payments in March 2016. The March 2016 junior debt payment was,
however, made in error and the junior debt has been in lock-up
since that date. S&P said, "We forecast that the junior debt will
remain in lock-up until its March 31, 2026 legal final maturity
date, during which time no interest or principal will be paid and
interest will accrue on both the deferred interest and
outstanding principal. We also forecast that junior debt will be
fully repaid at maturity, supported by the release of cash from
senior ranking reserves leading up to the repayment of senior
debt on March 31, 2026. Therefore we have affirmed the 'B-'
rating on the junior debt, thereby using an exception from
"Methodology: Use of 'C' and 'D' Issue Credit Ratings For hybrid
And Payment-In-Kind Instruments" published on Oct. 24, 2013.
Under this criteria, the deferral of principal repayment for more
than one year on an instrument that includes scheduled principal
payment could be an event of default, unless adequately
mitigated. In the case of CountyRoute A130, we believe that
deferral beyond 12 months should not, in itself, be considered as
a default given that we expect the delayed payments, including
accrued interest, will be repaid in full by the maturity date.
The affirmation also corrects a misapplication of the criteria
that occurred in June 2017 when we affirmed the 'B-' rating on
the junior debt despite the continuous deferral of principal."

The ratings continue to be supported by the project's relatively
straightforward operations and maintenance (O&M) risk profile and
very low market risk exposure, due to the stable shadow-toll
revenue stream. Only around 55% of revenue payments are linked to
traffic volume, with the remainder linked to road availability.
The concession contract contains a relatively benign penalty
point system associated with O&M service delivery, delivered
satisfactorily by Ringway infrastructure Services (Ringway),
supporting predictability of cashflow. Operational performance
remains strong, with no material issues reported on the day-to-
day operation of the road. The road structure is reported to be
in good condition, and no material pavement intervention is
planned before 2021. Road availability remains strong at around
99% and the project has not experienced any performance
deductions. Relationships between all project parties are strong.

The embankment slippage prevention works are now predominantly
complete and the southbound direction third lane has opened to
traffic. Remaining works are expected to be completed in the
coming weeks permitting opening of the third lane in the
northbound direction in the summer of 2018. The cracks were
caused by clay dryout and shrinking, which is becoming more
prevalent across the U.K. and is thought to be the result of
climate change. The problem areas are not as severe as the
historical embankment slippages that the project has faced. The
embankment repair works did not result in lane closures on
unavailability deductions. The rectification costs have been
completed within the initial GBP3.0 million budget, with a
proportion of these costs expected to be covered by insurance
payouts.

Actual traffic levels declined marginally by 0.8% in the
2017/2018 contractual year, reversing the relatively robust
growth experienced since 2013. The financial impact on the
project of traffic volume fluctuation is limited, however, by the
shadow toll payment mechanism. Daily average traffic on both the
northern and southern section of the route averages around 50,000
vehicles per day, albeit with seasonal fluctuation.

S&P's ratings on the debt reflect the following key assumptions:

Base Case Assumptions

-- Traffic growth assumptions: 2018, 0%; 2019, 1.8%; 2019+ 1.5%.
-- Road Availability: 99%
-- Operating costs: same as contractual levels
-- Embankment crack rectification insurance payout: GBP700,000
-- Retail price index: 2018, 3.6%; 2019, 3.3%; 2020, 3.2%; 2021,
    4.0%; 2022-2026, 3.3%; 2027-2031, 3.1%; 2031 onward, 3.0%.
-- Tax rate: 20%. Interest income: 0% (S&P excludes interest on
    deposits from our DSCR calculations).

Base Case Key Metrics

-- Senior debt: 1.09x average; 0.93x minimum (March 2020)

-- Under S&P's base case analysis, it forecasts the minimum
    ADSCR to dip below 1x in two forecast periods, but for debt
    service to be supported by liquidity reserves.

-- Given that the forecast ratio only dips below 1x in two
    periods, and the mandatory prepayment reserve account (MPRA)
    is more than adequately funded to cover the GBP1.0 million
    cash flow shortfall, S&P assesses the preliminary operations
    phase senior stand-alone credit profile (SACP) as 'b'."

-- Junior debt: the junior debt SACP reflects the lower of: i)
    the minimum junior ADSCR (0.91x), and ii) the minimum senior
    ADSCR divided by the senior distribution lock-up covenant
    ratio (0.81x). Hence, S&P assesses the preliminary operations
    phase junior debt SACP as 'b-'.

Downside Case Assumptions

-- Traffic growth rate: 2018-2019, base case growth rate minus
    3.0%; 2020-2022, base-case growth rate minus 1.5%; and from
    2023 in line with S&P's base case.
-- Operating costs: Base case +10%.
-- Embankment crack rectification insurance payout: GBP0
-- ProjectCo management costs: Base case +5%.
-- Major maintenance: Base case +10%.
-- Major maintenance timing: Cost of largest pavement
    replacement brought forward by one year.
-- Retail price index: Base case plus 1% for the first five
    years (2018-2022).

Downside Case Key Metrics

-- Senior debt: under S&P's downside scenario, the project
    generates senior DSCRs of above 1x in the majority of
    periods. During periods when the ratios fall below 1x, the
    project has adequate liquidity reserves, provided by the
    senior DSRA, to support debt service throughout the remaining
    life of the debt, supporting our downside assessment of
    'bbb'. This leads to a two-notch positive adjustment to the
    preliminary senior SACP.

-- Junior debt: The junior ADSCR falls below 1x in the majority
    of cases and the junior debt service reserve account is
    currently unfunded. Hence, S&P maintain an operations phase
    junior debt SACP of 'b-'.

Senior debt

S&P said, "The stable outlook on the senior secured debt rating
reflects that the shadow toll payment mechanism protects the
project from short-term fluctuations in traffic volume growth,
which we do not expect to outperform U.K. economic performance
indicators over the remainder of the debt repayment period. We
expect the project to be able to meet its operational costs and
senior debt service requirements in full and on schedule from
operational cash flow, with extra liquidity protection provided
by trapped cash reserves resulting from junior and distribution
lock-up covenant breaches.

"The stable outlook also reflects our view that an acceleration
of the senior debt, due to the outstanding technical event of
default resulting from the junior debt-service payment made in
error in March 2016, is unlikely.

"We could take a negative rating action on the senior debt rating
if project cash flows were to weaken materially such that our
forecast ADSCR were to decline below 1x for a sustained period
and the project's liquidity could not adequately support debt
service under either our base-case or downside case scenarios.
This could occur, for example, as a result of significantly
lower-than-forecast traffic growth or higher-than-expected
operating and major maintenance costs, driven by structural
integrity issues of the pavement or embankment.

"We could also take a negative action if, in our view, John Laing
Group's credit quality were to deteriorate. Additionally, we
would lower the rating if we saw an increased risk of senior debt
acceleration by the controlling senior creditor, in light of the
outstanding technical event of default.

"The rating on the senior debt rating is capped by our view of
the parent's credit quality. Rating upside is limited and depends
on an improvement in our view of the credit quality of John Laing
Group.

"We could revise upward our assessment of the SACP of the senior
debt if the project's forecast financial profile improved. This
could be driven, for example, by a downward revision or
reprofiling of the lifecycle expenditure profile. We could also
consider revising upward the SACP once the period of high
lifecycle expenditure in 2021 to 2024 is surpassed, at which time
we forecast that the ratios will strengthen significantly."

Junior debt

S&P said, "The stable outlook on the junior debt rating reflects
our expectation that full repayment (including interest on all
deferred payments) will occur by the debt's maturity in March
2026, predominantly from the release of cash swept into reserve
accounts. This is despite the fact that the terms of the debt
covenants are likely to prevent interest and principal payments
over the remaining life of the junior debt.

"We could take a negative rating on the junior debt if we
anticipate that project cash flows and cash reserves are not
sufficient to fully repay the junior debt and interest due at its
March 2026 maturity. This could occur, for example, if traffic
volumes are noticeably below our base-case expectations and
reserve account balances are depleted in order to support senior
debt service over the remaining life of the debt.

We currently see limited scope for rating upside. That said, we
could raise our rating on the junior debt if junior debt coverage
ratios strengthen, permitting release of junior debt lock-up and
the payment of principal and interest payments to schedule."


INTEGRATED DENTAL: S&P Alters Outlook to Neg. & Affirms B- ICR
--------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable on
the Integrated Dental Holdings group, owned by Turnstone Midco 2
Ltd. (IDH Group). At the same time, S&P affirmed its 'B-' long-
term issuer credit rating on the IDH Group.

S&P said, "In addition, we assigned our 'B-' long-term issuer
credit rating to the parent guarantor in the group, Turnstone
Midco 2, and withdrew our issuer credit rating on Turnstone Bidco
1 Ltd.

"Furthermore, we affirmed our 'B-' issue rating on the GBP425
million senior secured notes issued by IDH Finance PLC. The
recovery rating remains unchanged at '4' reflecting our
expectation of average recovery (30%-50%; rounded estimate: 30%)
in the event of a payment default.

"Finally, we affirmed our issue rating on Turnstone Bidco 1's
GBP100 million super senior revolving credit facility (RCF) at
'B+'. The '1' recovery rating reflects our expectation of very
high recovery (90%-100%; rounded estimate: 95%) in the event of a
payment default and captures the RCF's priority ranking in the
capital structure.

"The outlook revision reflects our revised expectations of the
IDH Group's future earnings growth and cash flow generation as it
pursues a turnaround strategy in its operations. The group has
faced tough competitive pressure in its two business segments.
This, together with a number of operational challenges, has
resulted in the group missing Units of Dental Activity (UDA)
targets in dental services and declining profitability in its
dental supplies business. In our view, the group's ability to
recruit new dentists at an economical rate, while minimizing
churn rates and withstanding rising overheads and competitor
merchandising in the dental supplies business, is vital for its
prospects to record reported EBITDA above GBP70 million in the
next 12-24 months.

The IDH Group is the leading provider of NHS dental services in
U.K. with about 583 NHS dentistry contracts across a network of
643 dental practices throughout England, Scotland, and Wales. The
group recently expanded its geographical footprint with the
acquisition of a dental services supplier in Northern Ireland.
The group reports under two main business units: publicly traded
under the "mydentist" and "Dental Directory" brands. These
divisions provide dental patient services and supplies dental and
other medical consumables to customers. Both account for
approximately 80% and 20% of group revenues, respectively, and
recorded reported EBITDA margins of about 10.4% and 4.7% for the
fiscal year ended March 31, 2018 (fiscal 2018).

Fiscal 2018 saw a significant fall in reported EBITDA generation
to about GBP55.1 million (GBP68.8 million in fiscal 2017), with
S&P Global Ratings-adjusted margins of 11.6% (12.9%). Performance
in the mydentist segment was affected by rising overhead costs
linked to recruitment and some less efficient staffing mixes,
inflationary pressure on dental materials and consumables, as
well as a lower level of UDA delivery at about 86% compared to
90% in the prior year. These issues resulted in reported margins
in the segment falling by about 200 basis points (bps), as
National Health Service (NHS) volumes account for the majority of
revenues and so missed targets have a substantial impact on group
earnings. The Dental Directory segment faced foreign currency
headwinds, which together with its promotional activity and
higher overheads, resulted in lower profitability, with reported
margins declining by about 230 bps to about 4.7%.

S&P said, "We see a reduced likelihood of a considerable recovery
in debt-protection metrics in the near term. This is mainly due
to our view of the macroeconomic and political environment in the
U.K., which has seen a weakening pound sterling, a slowdown in
real GDP growth, and a falling number of EU migrants following
the country's referendum vote to leave the EU. Despite the view
of some market participants that the British dental market is
underserved, these factors may weaken future demand in our view,
as consumers may delay preventative dental care if they are
forced to prioritize limited disposable income in harsher
economic times.

"That said, we note that the IDH group has managed to recruit
over 200 dentists in the past year and is looking to minimize the
number of loss-making sites within its portfolio. Qualified
dental clinicians and nurses are scarce in the U.K. market, and
so the group has to compete with other dental chains to attract
new staff. The self-employed operating model, while supportive of
the group's operating leverage, can also hinder EBITDA stability,
in our view, and so limiting churn rates is pivotal to future
cash flow generation.

"We continue to see a shift in the composition of UDA activity
across the set NHS bands. We understand from our market research
that Band three treatment types (crowns, bridges, and dentures),
which enjoy higher UDAs, continue to decline. The number of
exempt patients for these procedures has also reduced, which has
led to a fall in volumes under NHS contracts in recent years and
lower UDA delivery.

"The Dental Directory division has some potential to reverse its
fortunes in the coming quarters as the newly hired management
team implement its strategic plan. We understand that the group
is the second-largest player in the market, although there is
high competitive rivalry. This, combined with the IDH Group's
exposure to the foreign currency-denominated prices of the
inventory products it buys, which account for about 40% of costs,
rising petrol costs, and low-margin promotional activity, has
reduced profitability. If the group is able to exploit some of
its scale efficiencies and adopt an optimal merchandising
approach, we expect it will be able to achieve some margin
recovery in the coming 12-24 months to about 6.0%-7.0%.

"Considering all the aforementioned features, we now forecast
that the IDH Group's adjusted debt to EBITDA will remain above
9.0x in fiscal 2019 and 2020, and above 8.0x thereafter. The
group recorded a fixed-charge coverage ratio of about 1.2x as at
year-end 2017, which we expect to remain in the range of 1.2x-
1.4x considering interest cost obligations of about GBP40 million
annually. We project marginally negative free operating cash flow
(FOCF) for the next two years, which is notably weaker than our
previous expectations. The lower profitability, cash flow
generation, and interest coverage we expect in future are the
main drivers for our outlook revision.

The IDH Group is the largest privately-owned dental chain in the
U.K., with facilities dispersed across the country offering a
variety of treatment services to dental patients. The mydentist
segment accounts for 7% of the group's market share in fiscal
2018, with reported revenues of GBP468 million. S&P estimates the
Dental Directory business to be the No. 2 player, with a market
share of about 32% and reported revenues of about GBP143 million
in fiscal 2018.

S&P said, "The dental services market remains fragmented and
competitive, and increasingly we see the group's single country
exposure, in the absence of a more dominant market share, as
posing a greater risk to its long-term financial performance. The
group continues to invest in infrastructure, IT systems, training
programs, and support staff to make the business an attractive
proposition to dentists as well as patients. The success of these
initiatives, however, remains to be seen. In view of the group's
substantial exposure to political uncertainty and geographical
concentration in the U.K., we have revised our assessment of the
group's business strength. The recent fall in the group's
profitability also supports our revised assessment, as we see the
management of the value chain for the core business segment as
largely dependent on third-party providers, that is, dentists.
The group's concentrated industry focus, relatively small size,
and limited operational flexibility constrain our view of the
business' ability to withstand exogenous factors and innate
industry risk factors.

"We continue to assess the IDH Group as having a highly leveraged
financial risk profile because we view the owners, Carlyle Group
and Palamon Capital, as financial sponsors. This assessment is
supported by our weighted-average forecast credit metrics for the
group, including adjusted debt to EBITDA of 8.5x-9.5x and funds
from operations (FFO) to debt of less than 5%. Our estimates of
debt include senior secured debt totaling GBP425 million and the
GBP130 million second-lien notes, with adjustments for operating
leases and unamortized borrowing costs of over GBP100 million. We
assess the shareholder contribution of preference shares and
shareholder loans (issued at Turnstone Midco 1 Co. Ltd.) as
equity, as we understand that their maturity will be beyond that
of the secured notes, and acknowledge that the instruments are
subordinated in the structure and cannot receive any payment
without the consent of the restricted group lenders.

"We expect the IDH Group to record a modest improvement in S&P
adjusted EBITDA of about GBP67 million-GBP75 million in fiscal
2019 and fiscal 2020, up from GBP67.5 million in fiscal 2018. In
our view, the slower evolution of earnings growth compared to our
previous expectations results in heightened refinancing risk,
given the group's 2022 and 2023 debt maturities. We expect
reduced headroom in interest coverage metrics, with FFO cash
interest coverage of about 1.6x-2.0x and fixed-charge coverage of
about 1.2-1.4x over the next three years, supported by a modest
improvement in volumes and tariffs, as new recruits come on board
and the dental supplies business improves its cost efficiency.

S&P's base case assumes:

-- U.K. GDP growth of 1.8% in 2017, falling to 1.2% in 2018 and
    1.4% in 2019. S&P said, "We also expect government spending
    to taper steadily over the period, growing by just 1.3%,
    0.7%, and 0.9% in 2018, 2019, and 2020, respectively.
    Importantly, we note that the relative uplifts in tariffs for
    dental care, while positive, have been less than the rate of
    increase for patients' out-of-pocket spending historically."

-- Revenue growth of around 1.5%-2.5% in fiscal 2019 and 2020,
    driven by some recovery in mydentist NHS volumes and Dental
    Directory. S&P notes, however, that top-line increases will
    be offset by the planned closure of some sites across the
    portfolio. S&P expects the private segment growth rates to be
    more modest in future given the macroeconomic environment.

-- An adjusted EBITDA margin of around 11.5%-12.5% over fiscal
    2019-2020, reflecting the recent recruitment of dental
    clinicians, increased dentist productivity, and enhanced
    operating efficiency initiatives as the site-rationalization
    exercise proceeds.

-- Working capital outflow of up to GBP15 million in fiscal 2018
    and up to GBP5 million in fiscal 2019, reflecting the cash
    impact of some UDA contract handbacks this year and some i
    improvement in UDA delivery rates thereafter.

-- Annual capital expenditures (capex) of GBP19 million-GBP21
    million, equating to approximately 3% of revenues.

-- No acquisition activity in the medium term, as management
    focuses on improving the operating performance of the
    existing portfolio.

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

-- Adjusted debt to EBITDA of about 8.5x-10.0x over the next
    three years (isolating the impact of the non-common equity in
    the structure; above 20x otherwise).

-- Adjusted FFO cash interest coverage of 1.6x-2.0x in fiscal
    2018 and fiscal 2019.

-- Fixed charge coverage of about 1.2x-1.4x in fiscal 2019 and
    fiscal 2020.

-- Negative FOCF generation of up to GBP20 million in fiscal
    2018 and not surpassing GBP10 in fiscal 2019 and fiscal 2020.

S&P said, "The negative outlook reflects our view that the IDH
Group will face tangible challenges in implementing its
turnaround plan and achieving substantial EBITDA growth in the
coming years. Successful execution of the plan should improve
profitability over the next 12-24 months as the group improves
UDA volume delivery and implements some cost management and
productivity initiatives. However, we note that any further
underperformance would hinder a significant improvement in the
group's debt protection metrics and put the future refinancing of
its capital structure under threat.

"We could take a negative rating action if the group's liquidity
position weakens such that refinancing risk is heightened. This
could be driven by the group's inability to improve operating
performance such that its fixed-charge coverage approaches 1.0x
and negative FOCF is notably above our base-case estimates. This
would mean further drawings on the group's RCF and would most
likely occur if the group is unable to manage its cost base, or
if tariff increases are not commensurate with inflation for a
sustained period. We would likely revise our liquidity assessment
under these circumstances."

An upgrade depends on the strengthening of the group's operating
performance such that it achieves clear and meaningful
deleveraging toward 6.5x-7.0x. The group's FOCF generation would
most likely be positive in these circumstances, with FFO interest
coverage and fixed charge coverage of at least 2.0x and 1.5x,
respectively. This would most likely occur if the group's
recruitment and productivity plans are successful and exceed
S&P's existing estimates, while it maintains its market share in
the dental supplies business and improves profitability such that
it is able to enhance its reported EBITDA base above our existing
estimates.


SIGNET UK: Moody's Affirms Ba1 CFR & Alters Outlook to Negative
---------------------------------------------------------------
Moody's Investors Service affirmed Signet UK Finance plc's Ba1
Corporate Family Rating, affirmed its senior notes at Ba1,
affirmed its Ba1-PD Probability of Default Rating (PDR) and
affirmed its SGL-1 Speculative Grade Liquidity Rating. The
outlook has been revised to negative from stable.

The negative outlook reflects Moody's view that Signet's leverage
will remain elevated as the company works to stabilize its market
position at its existing banners and uses the net proceeds of
approximately $445 million associated with outsourcing its
subprime portfolio to repurchase stock.

"Signet is working to stabilize its sales trends and keep pace
with the jewelry industry" Moody's Vice President Christina Boni
stated. "Key changes to its marketing plan and implementation of
its transformation will be implemented to address its recent
weakness," Boni further stated.

Outlook Actions:

Issuer: Signet UK Finance plc

Outlook, Changed To Negative From Stable

Affirmations:

Issuer: Signet UK Finance plc

Probability of Default Rating, Affirmed Ba1-PD

Speculative Grade Liquidity Rating, Affirmed SGL-1

Corporate Family Rating, Affirmed Ba1

Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 (LGD4)

RATINGS RATIONALE

Signet's strong credit profile reflects the company's position as
the largest specialty retailer in the U.S., Canada and U.K., its
well-recognized brand names and solid market position. Recent
loss of market share and the increasing importance of online in
the jewelry space poses near term challenges for Signet. The
outsourcing of its credit program has also posed challenges.
Substantially reducing credit risk on balance sheet through its
outsourcing initiative has had implementation setbacks. The non-
prime portion of its portfolio is serviced by Genesis Financial
Solutions while external funding is being provided by CarVal
Investors and Castlelake, L.P as these entities purchase the
receivables that Signet underwrites.

The rating also reflects Signet's very good liquidity and its
commitment to conservative leverage despite its aggressive
financial policy. Signet has a clearly stated capital allocation
policy which includes an adjusted leverage ratio target between
3.0 to 3.5x (as defined by Signet) which Moody's expects the
company to exceed this year approaching 3.7x. The company's
narrow focus on a discretionary product with a demonstrated
sensitivity to weak economic conditions is also reflected in the
rating.

An upgrade is unlikely in the near term given the negative
outlook. Factors that could result in an upgrade over the long
term include consistent profitable sales and operating income
growth and margin expansion while maintaining very good
liquidity, conservative financial policy and a consistent track
record of success with its outsourcing arrangements.
Quantitatively, rating could be upgraded if lease-adjusted
Debt/EBITDA (including preferred stock) sustained below 2.5x and
adjusted EBIT/Interest (including preferred stock) above 5.0x.

Factors that could result in a downgrade include a material
decline in sales or operating margins, disruption to its credit
outsourcing arrangements that negatively impacts its business
profile, more aggressive financial policies or meaningful erosion
in liquidity. Quantitatively, ratings could be downgraded if
lease-adjusted Debt/EBITDA(including preferred stock) sustained
above 3.5x, or adjusted EBIT/Interest (including preferred stock)
falls below 4.0x.

Signet UK Finance plc is an indirect subsidiary of Bermuda-based
Signet Jewelers Limited. Signet is the leading specialty jewelry
retailer in the U.S., Canada, and U.K., operating over 3,500
stores and e-commerce websites. As of the first quarter of fiscal
2019, the Sterling Jewelers division operates 1,520 stores in all
50 US states principally as Kay Jewelers, Kay Jewelers Outlet,
Jared The Galleria Of Jewelry and Jared Vault. Signet acquired
100% of the outstanding shares of Zale Corporation in May 2014
for $1.46 billion, which primarily comprises Zales and Peoples
with 828 jewelry stores and Piercing Pagoda, which operates 591
mall-based kiosks. The company also operates 499 stores in the UK
in shopping malls and off-mall locations (i.e. high street)
principally as H.Samuel and Ernest Jones.

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


SP GROUP: Loss of Key Contracts Prompts Administration
------------------------------------------------------
Business Sale reports that Allan Graham and Matt Ingram of global
adviser Duff & Phelps have been appointed as administrators of SP
Group Limited as of July 24, 2018.

SP Group was recently sold by St Ives to SelmerBridge alongside
Flintshire-based field marketing agencies Tactical Solutions UK
and Flare, and large format graphics business, Service Graphics,
Business Sale relates.  These companies remain unaffected by the
administration, Business Sale notes.

According to Business Sale, Allan Graham stated: "SP Group has
suffered from a significant decline in turnover following the
loss of key customer contracts last autumn and a further decline
in customer-support since the business was acquired this spring.
This has created a challenging financial situation for SP Group
and has adversely impacted the cashflow and performance of the
business in what is already a highly competitive market.  This,
combined with the increasing uncertainty impacting both the
retail and hospitality sectors, is a contributing factor in why
SP Group has gone into administration.

"We are now actively engaging with customers to understand their
individual requirements.  We are working with management to
explore the options available to preserve as much of the business
as possible, however there may be substantial job losses as a
result of this process."

Based in Redditch in the West Midlands, SP Group Limited is a
producer of point of sale and display solutions for retailers and
top brands.



                            *********

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-
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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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