---

        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

          Tuesday, August 28, 2018, Vol. 19, No. 170


                            Headlines


C R O A T I A

TEHNIKA: Zagreb Court Rejects Bankruptcy Procedure Request

G E O R G I A

GEORGIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Positive

I R E L A N D

RIVOLI - PAN: Fitch Cuts 2 Tranches to 'Dsf', Withdraws Ratings

L U X E M B O U R G

ARMACELL HOLDCO: S&P Affirms 'B' Long-Term ICR, Outlook Stable

R U S S I A

SOVCOMBANK PJSC: Fitch Raises IDR to 'BB', Outlook Stable

T A J I K I S T A N

TAJIKISTAN: S&P Affirms 'B-/B' Long-Term Sovereign Credit Ratings

U N I T E D   K I N G D O M

HOMEBASE: Over 70% of Stores Losing Money, CVA Vote Looms
JD CLASSICS: Seeks New Funding After Financial Irregularities
MCERLAIN'S BAKERY: Paul Allen Buys Business Out of Administration
OPENHYDRO: JCU Asset Identified as Potential White Knight
POUNDWORLD: Iceland to Take Over 19 Former Stores


                            *********



=============
C R O A T I A
=============


TEHNIKA: Zagreb Court Rejects Bankruptcy Procedure Request
----------------------------------------------------------
SeeNews reports that the Commercial Court in Zagreb has rejected
a request for the launch of bankruptcy proceedings submitted by
Croatian construction company Tehnika.

According to SeeNews, Tehnika said in a filing with the Zagreb
stock Exchange that the court's decision was based on the fact
that it is yet to rule on a similar request filed by local
company Zagorje-Tehnobeton.

Earlier, Zagorje-Tehnobeton appealed a decision of the court
which said the company's request for the launch of bankruptcy
proceedings in Tehnika was unfounded, SeeNews recounts.

Tehnika noted on Aug. 23 that it will appeal the court's denial
of its request at the High Commercial Court, SeeNews relays.

Earlier this month, Tehnika said it meets the preconditions for
the initiation of bankruptcy proceedings after an Algerian
investor cancelled a project the company had partnered on, which
resulted in its bank accounts being blocked, SeeNews recounts.
The company noted that it can no longer perform its regular
operations, according to SeeNews.

Tehnika swung to a consolidated net loss of HRK141.8 million in
2017 from a profit of HRK926,300 in the prior year, partially due
to the crisis in Croatia's ailing Agrokor concern which saw
Tehnika's claims in the company written off, SeeNews discloses.



=============
G E O R G I A
=============


GEORGIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Positive
------------------------------------------------------------
Fitch Ratings has affirmed Georgia's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) at 'BB-'. The Outlook
is Positive.

KEY RATING DRIVERS

Georgia's ratings are supported by governance and business
environment indicators that are above the current medians of 'BB'
category peers, and a track record of macroeconomic resilience
against regional shocks. Confidence in the authorities' economic
strategy is also anchored by an IMF Extended Fund Facility (EFF)
programme. Georgia's external finances remain significantly
weaker than the majority of 'BB' category peers.

The Positive Outlook on Georgia's rating reflects favourable
growth prospects and a steady improvement in the public finances.
However, escalating negative developments in Turkey and risk of
further US sanctions against Russia represent downside risks to
Georgia's economic outlook. Russia and Turkey are Georgia's
second- and third-largest trading partners, accounting for 14.5%
and 7.9% of total exports in 2017, respectively. Both countries
are also important sources of remittances, foreign direct
investment (FDI), and tourism revenues.

So far Georgia's economy has been resilient against recent
regional volatility. Estimates from national statistics (GeoStat)
show the economy to have grown 6.0% in real terms year-on-year
(yoy) in 1H18, above Fitch's expectations. Growth was broad-
based; led by domestic demand through a strong pick-up in
investment activity and robust export growth. Fitch projects real
GDP growth to average 4.8% in 2019-2020, compared with 3.5%
across 'BB' category sovereigns. Risks are on the downside due to
the less favourable external environment.

Large current account deficits (CAD) and low external liquidity
leaves Georgia's highly open economy vulnerable to external
shocks. At 8.9% of GDP in 2017, Georgia's CAD is substantially
wider than the current 'BB' peer median of 2.4% of GDP. Wide CADs
reflect the country's low level of domestic savings, as well as
narrow export base and high import dependency. Fitch projects
Georgia's CAD to widen to 10.2% of GDP by 2020, covered largely
by net inflows of FDI close to 8% of GDP.

Vulnerabilities in external finances are also reflected by high
net external debt to GDP (67% of GDP at end 2017), which is more
than four times the current 'BB' median peer ratio. Gross
external financing requirement as a share of international
reserves is high (estimated at 127.3% in 2018). Level of gross
international reserves increased to USD3 billion in 2017,
equivalent to 3.2 months of current account payments. This is
below the current 'BB' median of 4.2 months. .

Despite stronger domestic activity, inflationary pressures have
remained contained, reflecting a larger fading out of high base
effect, as well as appreciation of Georgia's nominal effective
exchange rate on imported inflation. In July, the National Bank
of Georgia (NBG) cut its benchmark (refinancing) rate by 25bp to
7.00%, its first rate adjustment since December 2017, after three
rate hikes in 2017 responding to the impact of lari depreciation.
For 2018, Fitch forecasts average inflation of 3%, in line with
the NBG's target.

Georgia's public finances continue to improve. The cyclical
upturn has helped boost tax revenue growth, while expenditures
remain contained on the back of government priorities to reduce
current expenditure in order to meet capital spending needs. For
2018 and 2019, Fitch is forecasting Georgia's general government
fiscal deficit to average 2.6% of GDP, down from 2.9% of GDP in
2017, and in line with the projected median deficit of 'BB'
peers.

The government's fiscal strategy, anchored by quantitative
targets agreed with the IMF, will help stabilise government debt
in the medium term, in its view. Georgia's general government
debt ratio (44.6% of GDP end 2017) is above the current median
debt ratio (39% of GDP) of 'BB' category peers, but Fitch
projects it will decline towards 41.3% of GDP by 2020. The
composition of Georgia's government debt is largely external,
with a high share of concessional and multilateral debt
(approx.72% of total debt). However, the foreign currency share
of total debt is high (79.8%), exposing it to exchange rate
volatility. There are also fiscal risks in the form of contingent
liabilities from state-owned enterprises and budget on-lending
activities.

Developments in the banking sector remain stable, with the
authorities making gradual progress towards meetings structural
benchmarks set out under the IMF's EEF to strengthen the sector's
financial stability framework, and regulations on capital and
liquidity requirements. Georgia scores a 2* on Fitch's Macro-
Prudential Indicator, indicating moderate vulnerability from
strong credit growth. In 1H18, annual credit growth averaged 21%,
picking up slightly from an average of 19% in 1H17 year-on-year.
The average capital adequacy ratio of the sector is high at 18.9%
(2Q18), while the share of non-performing loans is low at 2.4%
(2Q18).

Presidential elections are scheduled for 28 October this year.
The ruling Georgian Dream-Democratic Georgia (GDDG) has yet to
nominate a candidate. At present, Fitch does not expect the
outcome of the presidential elections to materially change
Georgia's economic strategy. In addition, Fitch continues to
expect that Georgia will make good progress with the IMF's EFF,
having successfully completed a second review back in June.

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

Fitch's proprietary SRM assigns Georgia's a score equivalent to a
rating of 'BB+' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final Long-Term IDR by applying its QO,
relative to peers, as follows:

  - Macroeconomics: -1 notch to reflect the potential downside
risks arising from Turkey's currency crisis and risks of a
further escalation of US sanctions against Russia which may hurt
Georgia's economic growth prospects.

  - External finances: -1 notch, to reflect that Georgia relative
to its peer group has higher net external debt, structurally
larger current account deficits, and a large negative net
international investment position.


Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three-year
centred averages, including one year of forecasts, to produce a
score equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES

The main risk factors that, individually or collectively, could
trigger positive rating action:

  - Strong and sustainable GDP growth consistent with
macroeconomic stability

  -A reduction in external vulnerability

  -Shrinkage in budget deficits and public sector indebtedness

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

  - An increase in external vulnerability, for example a widening
of the CAD not financed by FDI

  - Worsening of the budget deficit, leading to further rise in
public indebtedness

  - Deterioration in either the domestic or regional political
environment that affects economic policymaking or regional growth
and stability

KEY ASSUMPTIONS

The global economy performs in line with Fitch's Global Economic
Outlook.

The full list of rating actions is as follows:

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

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

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

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

Country Ceiling affirmed at 'BB'

Issue ratings on long-term senior unsecured foreign-currency
bonds affirmed at 'BB-'

Issue ratings on long-term senior unsecured local-currency bonds
affirmed at 'BB-'

Issue ratings on short-term senior unsecured local-currency bonds
affirmed at 'B'



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


RIVOLI - PAN: Fitch Cuts 2 Tranches to 'Dsf', Withdraws Ratings
---------------------------------------------------------------
Fitch Ratings has downgraded and withdrawn Rivoli - Pan Europe 1
plc's overdue floating-rate notes as follows:

EUR34.0 million Class B (XS0278739874) downgraded to 'Dsf' from
'CCsf'; Recovery Estimate (RE) 100%

EUR23.6 million Class C (XS0278741771) downgraded to 'Dsf' from
'CCsf'; RE 10%

The notes are secured on a 50% syndication of the EUR115.2
million Rive Defense loan, which remains in workout proceedings
(now led by the senior lenders, rather than the French courts).
The loan is secured on a secondary office property located in the
suburbs of the La Defense region of Paris. The asset has been
vacant since the sole tenant surrendered its lease in January
2016, although quarterly indemnity payments were paid until April
2018.

KEY RATING DRIVERS

The downgrade reflects a Note Event of Default as Rivoli - Pan
Europe 1 plc had failed to repay the outstanding notes by its
legal final maturity on August 3, 2018. As a result, Fitch has
downgraded both Class B and C notes to 'Dsf' and withdrawn the
ratings.

In the absence of updated financial reports, Fitch maintains its
view from its February 2018 rating action that the Class B notes
will ultimately be fully recovered from the sale of the Rive
Defense asset. Fitch understands that a one-year extension to the
underlying financing was implemented to maintain the issuer's
claim against the asset over the course of a liquidation, which
Fitch understands is anticipated in the coming months. However,
the Class C notes will likely suffer a significant loss, as
reflected in the 10% RE.

RATING SENSITIVITIES

Rating sensitivities are no longer relevant for any of the
ratings given Fitch's rating withdrawal.

USE OF THIRD-PART 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.

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall and together with the assumptions referred, 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.



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


ARMACELL HOLDCO: S&P Affirms 'B' Long-Term ICR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit
rating on Armacell Holdco Luxembourg Sarl (Armacell Holdco), the
holding company of the Armacell group (Armacell), a producer of
flexible foam insulation products, and the group's debt-issuing
subsidiary, Armacell Bidco Luxembourg S.a.r.l. (Armacell Bidco).
The outlook on both entities is stable.

S&P said, "At the same time, we affirmed our 'B' issue ratings on
Armacell's senior secured debt, including its first-lien EUR100
million revolving credit facility (RCF) and its EUR622 million
first-lien term loan, both issued by Armacell Bidco. The '4'
recovery rating on these instruments remains unchanged,
indicating our expectation of average recovery (30%-50%; rounded
estimate: 40%) in the event of a payment default.

"The affirmation reflects our view that the Armacell should be
able to gradually strengthen its profitability and bring down its
leverage, with adjusted debt to EBITDA falling toward 6.5x in
2018 and below 6.0x in 2019 from about 7.1x at year-end 2017. We
expect the improvement in credit metrics will stem from moderate
revenue growth in most regions, Armacell's ability to pass on
higher input costs to customers, synergies being unlocked from
recent acquisitions, and a continued focus on cost control and
productivity improvement.

"We note that Armacell's operating performance has been below our
expectations in 2017 (EBITDA lower by high-single-digit
millions). This underperformance is driven by negative foreign
exchange effects, as well as lower organic revenue growth and a
slower improvement in profit margins than we expected, mainly due
to the delay of oil- and gas-related project business and lower
volumes generated in the U.S. component foams market. In the
first half of 2018, the group's EBITDA was slightly lower than
last year, driven by significant foreign exchange headwind,
especially the U.S. dollar weakening against the euro, a sudden
and sharp increase in freight costs in North America, and
negative product and country mix effects. As a result, Armacell's
EBITDA growth and deleveraging has been much slower than we
expected, and we project that the leverage ratio will be at the
weak end of the 5.0x-6.5x range that is commensurate with the
rating at year-end 2018, implying minimal headroom for further
operating underperformance.

"We expect the improving trend in credit metrics will continue,
but at a slower pace than we previously expected. The healthy
volume growth trend in advanced insulation products and
polyethylene terephthalate (PET) foams in most regions and price
increases implemented in third-quarter 2018 should lead to higher
EBITDA in the second half of this year, supported by
contributions from small bolt-on acquisitions carried out in the
second and third quarters of 2018. Armacell is planning to invest
about EUR30 million in 2018 and EUR25 million in 2019 into
expansion projects (including in Bahrain and China), footprint
optimization, and the joint-venture AJA in South Korea to address
attractive growth opportunities, which we expect will result in
at least EUR10 million of additional annual cost savings from
2019. We anticipate EBITDA will be slightly higher in 2018 than
last year and increase by EUR10 million-EUR15 million in 2019.

"In addition, the repricing of debt in the first quarter of 2017
and resulting lower interest costs have contributed to stronger
operating cash flows and better interest coverage ratios. We
expect the adjusted EBITDA interest coverage ratio will increase
to nearly 4.0x in 2018 and to above 4.5x in 2019 from 3.1x in
2017. We also foresee improvement in the adjusted operating cash
flow-to-debt ratio to above 9% in 2018 and around 11% in 2019
from 7.4% in 2017. In addition, we expect Armacell will maintain
its track record of healthy free operating cash flow (FOCF)
generation on the back of resilient profitability and efforts
targeting more efficient working-capital management, which will
be sufficient to cover increased capital expenditures (capex) in
2018-2019 to finance growth initiatives and small sized bolt-on
acquisitions.

"The ratings on Armacell continue to reflect our view of its
relatively limited scale and scope of operations compared with
global building materials producing peers, the fragmented nature
of the equipment insulation market, and its exposure to the
cyclical construction industry, which accounts for more than 50%
of total revenues. These risks are mitigated by the group's
leading positions in the niche market of flexible foams, with
strong market shares of above 30% in its key regions of
operation. Armacell also benefits from the geographic diversity
of its business, with a balanced presence in Europe, the Middle
East, and Africa (35% of group sales in 2017), the Americas
(above 40%), and Asia-Pacific (nearly 20%). Its relatively asset-
light business model and flexible cost base -- combined with its
exposure to a diverse set of end-markets and the ability to pass
on the majority of raw material price fluctuations to customers,
although with a time lag -- support its relatively resilient
profitability in the building materials industry, as seen over
the past five years.

"The stable outlook reflects our view that, over the next 12
months, Armacell's profitability will continue to gradually
improve due to moderate revenue growth in most regions, synergies
being realized from recent acquisitions, and a continued focus on
cost control. This should enable debt to EBITDA to improve toward
6.5x in 2018 and to below 6.0x in 2019. However, EBITDA growth
and deleveraging is much slower than we expected. We consider
that the leverage ratio will be at the weak end of the 5.0x-6.5x
range that is commensurate with the rating in the next 12 months,
resulting in minimal headroom for further underperformance. We
also anticipate that Armacell will generate FOCF of EUR20
million-EUR30 million in the next 12 months and maintain a
healthy EBITDA interest coverage ratio of at least 3.5x.

"We could lower our rating if Armacell's EBITDA declined, for
example due to margin erosion or weaker end-market demand, or a
material adverse foreign-exchange impact. We could also consider
a downgrade if Armacell were to adopt a more aggressive financial
policy than we expect through large debt-funded acquisitions or
distributions to shareholders. Under such a scenario, leverage
would remain above 6.5x in 2019 on a gross-adjusted basis and
EBITDA interest coverage ratio would fall below 3.5x. Rating
pressure could also emerge if Armacell failed to generate
positive FOCF for a prolonged period.

"In our view, the potential for an upgrade is currently limited,
given the group's high leverage and aggressive financial policy,
owing to its private equity ownership. Strong recurring free cash
flow and adjusted debt to EBITDA improving to below 5.0x, on a
consistent basis, could be positive for the rating over the long
run."



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


SOVCOMBANK PJSC: Fitch Raises IDR to 'BB', Outlook Stable
---------------------------------------------------------
Fitch Ratings has upgraded Russia-based PJSC Sovcombank's (SCB)
and its subsidiary Rosevrobank's (REB) Long-Term Issuer-Default
Ratings (IDRs) to 'BB' from 'BB-'. The Outlooks are Stable.

KEY RATING DRIVERS

SOVCOMBANK

The upgrade of SCB's ratings reflects the completion of the
acquisition of REB without a significant weakening of SCB's
regulatory capital position or realisation of any contingent
risks. This is in line with Fitch's expectation in March 2018,
when Fitch revised the Outlook on the bank's ratings to Positive.
More generally, the upgrade reflects the bank's extended track
record of sound financial metrics, and the more balanced business
mix and improved funding profile resulting from the acquisition
of REB.

At the same time, the ratings remain constrained by SCB's
exposure to the difficult Russian operating environment, its high
appetite for non-organic growth and exposure to interest rate
risk stemming from the bank's sizable securities portfolio.

SCB completed the acquisition of REB in April 2018 and currently
owns 100% of its ordinary shares. Some of REB's founders
exchanged their REB shares into those of SCB. SCB is planning to
legally merge with REB in 4Q18, after which the latter will cease
to exist as a separate legal entity. SCB aims to integrate REB's
well-performing corporate business (including management team)
with its own operations, mainly focused on retail lending and
treasury/investment banking.

Fitch views SCB's asset quality as a relative rating strength.
This reflects its low credit impairment levels compared with
peers, confirmed by recent IFRS9 disclosures, which indicated a
Stage 3 (S3) ratio of 2.4% at end-1H18, one of the lowest among
larger Russian banks. S3 loans at SCB comprise NPLs rather than
impaired restructured or other risky exposures, and were 166%
covered by loan loss allowances at end-1H18. Impairment charges
have also been relatively low, at 2% of average loans in 2017-
2016, despite a sizable share of consumer lending. All figures at
end-1H18 are based on SCB's financial statements consolidating
REB.

As a result of the REB acquisition, SCB's Fitch Core Capital
(FCC) fell to 12.2% of Basel I risk-weighted assets (RWAs) at
end-1H18 from 14% at end-2017. This is still commensurate with
the 'bb' rating category, especially considering the bank's good
asset quality and strong performance. SCB's regulatory capital
ratios based on non-consolidated accounts were tighter (core Tier
1 of 8.5% at end-7M18, adjusted for unaudited profits, compared
with regulatory minimum of 4.5% plus 1.875% capital buffers),
mostly due to the deduction of the equity investment in REB,
higher loan loss allowances in regulatory accounts and the non-
recognised capital surplus from the bank's investments into
Express-Volga Bank. The bank's regulatory Tier 1 (9.6%, minimum
6% + 1.875% buffers) and total (12.7%, minimum 8% + 1.875%
buffers) capital ratios are supported by a number of subordinated
instruments, including the recently placed USD100 million Tier 1
eligible perpetual subordinated bonds and USD150 million Tier 2
eligible subordinated bonds.

The bank's capital ratios should have increased by at least 40bp-
50bp in August after a consortium of sovereign investment funds
(led by the Russia-China Investment Fund) made an equity
injection. Following the legal merger with REB, SCB's regulatory
capital ratios should further improve by about 1pp.

SCB's consolidated profitability slightly deteriorated in 1H18
due to a one-off securities loss recognised by the bank in April
2018 following market volatility shortly after the imposition of
US sanctions on some Russian individuals and corporates. However,
net of this loss the bank's core operating profitability remained
strong, with an adjusted operating profit to equity ratio of over
25%. The bottom line in 1H18 was additionally supported by one-
off negative goodwill from the acquisition of REB.

SCB's funding has improved since the last review, following the
acquisition of REB with its granular and cheap funding base.
SCB's consolidated cost of funding decreased by almost 1pp in
2Q18 compared with 1Q18, while the share of current accounts rose
to 16% of total liabilities. Liquidity is supported by a sizable
liquidity cushion, consisting of cash and unpledged securities
(covering 47% of end-1H18 total liabilities) and part of the loan
book (5% of liabilities), which could be pledged to raise funding
from the Central Bank of Russia.

SCB's senior unsecured debt rating is aligned with the bank's
Long-Term Local-Currency IDR, reflecting Fitch's view of average
recovery prospects, in case of default.

The '5' Support Rating and 'No Floor' Support Rating Floor (SRF)
reflect Fitch's view that support from either the bank's
shareholders or the Russian authorities, although possible, could
not be relied upon, in all circumstances.

ROSEVROBANK

The upgrade of REB's Long-Term IDRs to 'BB' and Support Rating to
'3' reflects potential support from SCB given the latter's
majority ownership, significant operational integration and the
plans to legally merge the banks in 4Q18.

The upgrade of REB's Viability Rating to 'bb' reflects the now
reduced risks from the acquisition by SCB and the fact that REB's
credit profile is becoming more aligned with that of SCB as they
move to a full merger.

REB's credit profile remains robust, as reflected by an extended
record of good performance (a ROA of over 3% in 1H18 and 2017)
supported by relatively low funding costs and strong asset
quality (S3 ratio of 1.5% at end-1H18), a solid capital buffer
(FCC ratio at 18%) and ample liquidity sufficient to cover 43% of
its standalone liabilities at end-1H18.

The withdrawal of REB's SRF reflects the fact that institutional
(shareholder) support has now become the primary source of
potential support for the bank, in Fitch's view.

RATING SENSITIVITIES

An upgrade of SCB's ratings would require further improvement of
the merged bank's franchise based on more balanced growth and
without a weakening of underwriting/asset quality, a longer track
record of good performance, stronger capital position and a
reduced appetite for market risk.

A downgrade could result from a sharp deterioration in asset
quality or aggressive growth above its expectations leading to
material capital erosion, or mismanagement of liquidity and
market risks arising from the bank's trading activities.

If SCB becomes designated as a domestic systemically important
bank (D-SIB), Fitch could revise its SRF to 'B', similar to the
other two privately-owned D-SIBs, Alfa-Bank (BB+/Stable) and
Credit Bank of Moscow (BB-/Stable).

REB's ratings are likely to move in tandem with those of SCB
until they are merged and REB ceases to exist as a separate legal
entity. At that time Fitch will withdraw its ratings.

The rating actions are as follows:

PJSC Sovcombank

Long-Term Foreign- and Local-Currency IDRs: upgraded to 'BB' from
'BB-'; Outlooks Stable

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

Viability Rating: upgraded to 'bb' from 'bb-'

Support Rating: affirmed at '5'

Support Rating Floor: affirmed at 'No Floor'

Senior unsecured debt: upgraded to 'BB' from 'BB-'

Rosevrobank

Long-Term Foreign- and Local-Currency IDRs: upgraded to 'BB' from
'BB-'; Outlooks Stable

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

Viability Rating: upgraded to 'bb' from 'bb-'

Support Rating: upgraded to '3' from '5'; removed from Rating
Watch Positive

Support Rating Floor: affirmed at 'No Floor'; withdrawn



===================
T A J I K I S T A N
===================


TAJIKISTAN: S&P Affirms 'B-/B' Long-Term Sovereign Credit Ratings
-----------------------------------------------------------------
On Aug. 24, 2018, S&P Global Ratings affirmed its 'B-/B' long-
and short-term foreign and local currency sovereign credit
ratings on the Republic of Tajikistan. The outlook remains
stable.

S&P also affirmed the 'B-' long-term issue rating on the senior
unsecured debt.

OUTLOOK

S&P said, "The stable outlook reflects our view that public
investments will continue to support Tajikistan's economic growth
and the government's net debt burden will remain modest.

"We could take a negative rating action in the next 12 months if
pressure on Tajikistan's debt profile were to increase, for
example as a result of widening general government deficits or
much deeper currency devaluation than we currently project.
Downward pressure on the rating may also build if remittances
drop and/or imports increase sharply, leading to significantly
wider current account deficits (CADs) than we currently
anticipate.

"Conversely, we could consider an upgrade in the next 12 months
if we observed a significant improvement in Tajikistan's external
balances that would translate into noticeably higher
international reserves. Stronger economic growth, resulting in
higher wealth levels as measured by GDP per capita, could also
result in a positive rating action."

RATIONALE

The ratings on Tajikistan are supported by S&P's opinion of its
resilient growth prospects, underpinned by public investments.
S&P thinks these growth prospects will outlast the series of
large shocks the economy has suffered since 2013.

The ratings are constrained by Tajikistan's narrow export base
(primarily cotton, processed alumina, and electricity) and its
weak external position due to a trade deficit and a remaining
reliance on workers' remittances, largely coming from the Russian
Federation. At $800 in 2017, Tajikistan's per capita GDP is among
the lowest of all the sovereigns S&P rates.

Institutional and Economic Profile: Amid relative political
stability, per capita GDP remains low despite strong economic
growth

-- The decision-making process remains highly centralized, which
    reduces policymaking predictability.

-- Political stability has endured under the long-serving
    president.

-- Despite strong real GDP growth in 2017 and in the first half
    of 2018, GDP per capita remains low due to population growth.

Tajikistan has been politically stable since the late 1990s, when
it ended a long civil war and recovered from a substantial
economic decline following the collapse of the Soviet Union. S&P
sees this stability as centered on President Emomali Rahmon, who
has ultimate decision-making power. President Rahmon is currently
serving his fourth consecutive term, which ends in 2020.

Decision-making remains highly centralized, which can reduce
policymaking predictability. S&P said, "The president's
administration controls strategic decisions and sets the policy
agenda. Given the centralized nature of political power in the
country, we view accountability and checks and balances as weak.
We do not currently see immediate risks to domestic political
stability that would undermine policy predictability." Relations
with Russia are constructive; the border with Afghanistan is
secure; and trade and financial links with China are increasing.

S&P said, "We project strong real GDP reported growth of 7% to
continue in 2018-2021. In our view, the two main drivers of the
growth will likely be public investments and economic growth in
Russia (and subsequent increase of remittances supporting
internal demand). At the same time, we note that reliability of
economic data might be an issue and the actual growth rate might
be lower. Tajikistan's GDP per capita is projected to remain low,
at $850 on average in 2018-2021 due to high population growth and
the ongoing depreciation of the local currency."

Flexibility and Performance Profile: The current account deficit
is widening and debt will likely continue to grow

S&P said, "We expect the CAD to widen in 2018-2021 due to
increased imports related to the construction of the Rogun
Hydropower Plant (HPP).

"We now project the fiscal deficit to average 4.6% of GDP in
2018-2021 (compared with our previous expectations of 4.0%), due
to overall high infrastructure spending needs, plus the Rogun
HPP.
We expect net general government debt to reach 50% of GDP by the
end of 2021, which is still moderate by international standards.

"The combination of rising aluminum prices and a continuous
decrease in imports in 2017 has helped Tajikistan to post only
0.5% CAD (against 3.8% in 2016). We project an increase in
imports (mostly related to Rogun HPP) and a subsequent
deterioration in the CAD between 2018-2021 to 3.2% of GDP, close
to the 2014-2017 average of 3.3%. After a $500 million Eurobond
placement in September 2017 and the National Bank of Tajikistan
(NBT) buying gold, we project usable reserves have nearly doubled
to four months of current account payments (CAPs), compared with
two months previously. This is the highest over the past several
years. We assume another $500 million bond issuance in 2019, and
that the government will spend about $200 million annually on the
Rogun HPP project. Therefore, usable reserves might decline to
three and a half months of CAPs by the end of 2021. We estimate
Tajikistan's narrow net external debt net of liquid assets to
average 81% of current account receipts (CARs) in 2018-2021,
which is relatively high for a developing economy. At the same
time, we project gross external financing needs will consistently
exceed 100% of CARs plus usable reserves over the same period.
Our external analysis of Tajikistan is complicated by some
inconsistencies between the stocks and flows.

"We believe that the CAD will be financed primarily by foreign
direct investment (FDI). In 2018-2021, net FDI should average
about 2% of GDP, given ongoing Chinese investments in a broad
array of products, including in materials, aluminum, metallurgy,
and retail. We assume Tajikistan will continue raising debt with
official lenders, particularly to finance infrastructure needs,
and also might consider another commercial borrowing for the
Rogun HPP project."

Monetary policy effectiveness remains constrained by the weak
domestic banking system, underdeveloped capital markets, high
dollarization, and lack of operational independence by the NBT,
in our view. However, there have been some positive developments
with regard to monetary policy of late, with the NBT introducing
new monetary policy instruments, including overnight and intraday
lending facilities, overnight deposits, and credit and
certificates of deposit auctions. S&P understands that the NBT
intends to implement inflation targeting and a fully flexible
exchange rate by 2023. In preparation for this, it has introduced
a medium-term inflation goal of 7% +/-2 percentage points.

In 2017, consumer price inflation stood at 6.7% (compared with
6.1% in 2016) according to official statistics. Tajikistan's
economy is reliant on agriculture, mineral resources, remittances
from abroad, and key export prices. Given low incomes,
consumption is also highly sensitive to key import prices,
particularly of food and fuel. We project that inflation will
stay within the NBT's target of 7% over the next few years, due
to the gradual rise of the oil price, especially in somoni terms,
as well as ongoing increases in regulated electricity tariffs.

S&P said, "We expect that budget deficits and moderate currency
depreciation (as over 80% of debt stock is denominated in foreign
currency) will drive the annual change in net general government
debt to 8.2% of GDP over 2018-2021 (contrary to our previous
expectations of a 6.4% change). Our projected 4%-5% fiscal
deficit and another potential Eurobond placement will likely
contribute to this increase. As a result, Tajikistan's general
government debt net of liquid assets will climb to 50% of GDP in
2021, against just 22% in 2014."

Nevertheless, S&P's assessment of the government's fiscal profile
includes contingent liabilities from state-owned enterprises
(SOEs). SOEs account for 30% of employment and more than 40% of
GDP, and they are regularly involved in quasi-fiscal activities.
By the Tajikistan government's estimate, debt of the 24 largest
SOEs (including the Talco aluminum plant and the main power
company Barqi Tojik) amounted to approximately 19% of GDP in
2017. Although nonperforming loans (NPLs, overdue by more than 30
days according to NBT's reporting standards) declined over the
past year, NPLs to total loans remained high, at 35.8% of total
loans in the banking system on Dec. 31, 2017. NPLs stemmed
largely from the unfavorable economic and financial situation in
the region, which in turn led to a decrease in purchasing power
of the population and to a decrease of private sector income.

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

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

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

  RATINGS LIST
  Ratings Affirmed

  Tajikistan
   Sovereign Credit Rating
   Local Currency                         B-/Stable/B
   Foreign  Currency                      B-/Stable/B
   Transfer & Convertibility Assessment   B-
   Senior Unsecured                       B-



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


HOMEBASE: Over 70% of Stores Losing Money, CVA Vote Looms
---------------------------------------------------------
Jonathan Eley at The Financial Times reports that DIY chain
Homebase will go back to popular products and brands dropped by
its previous owner Wesfarmers, as part of a three-year turnround
plan designed to address "extremely challenging" market
conditions and excess store space.

According to a document prepared for the group's creditors and
seen by the FT, "over 70%" of Homebase stores are currently
losing money.   Total sales fell more than 10%" in the year to
June 2018, the FT discloses.

Creditors will vote at the end of August on a "company voluntary
arrangement", an agreement with creditors that aims to keep
struggling businesses afloat, the FT states.  The Homebase CVA
proposes the closure of 42 stores by next year and big rent
reductions on others, the FT notes.

Proposed new funding for the group -- GBP25 million of equity
from new owner Hilco, which bought the business for GBP1 in June,
plus up to GBP116 million of debt -- is conditional on the
arrangement being approved, according to the FT.

The document warned "If the CVA is not approved, then it is very
likely Homebase will go into administration or liquidation," the
FT relays.

Homebase, which has already shed 300 jobs at its Milton Keynes
headquarters, is asking for rent reductions of between 25 and 90%
at 70 stores, in addition to closing 42 stores, the FT states.

Several landlords said they were unlikely to back the proposals,
the FT notes.


JD CLASSICS: Seeks New Funding After Financial Irregularities
-------------------------------------------------------------
Robert Miller at The Times reports that JD Classics, one of the
world's leading dealers in classic cars, is racing to secure new
funding within days after the discovery of alleged "financial
irregularities" left its lenders facing a multimillion-pound
write-off.

According to The Times, the company, which is based in Essex and
boasts of its links to the Goodwood Revival and Le Mans Classic
events, was put up for sale recently, The Times relates.

The auction raises doubts over the future of the owner of classic
racing cars, including vehicles made by Aston Martin, Ferrari,
Jaguar and Maserati, The Times discloses.

Lenders are said to be facing a GBP25 million loss, The Times
relays, citing Sky News.

The company, which is now under new management, was founded in
1987 and trades in Essex, Mayfair and Newport Beach, California.


MCERLAIN'S BAKERY: Paul Allen Buys Business Out of Administration
-----------------------------------------------------------------
Andy Coyne at just-food.com reports that McErlain's Bakery in
Northern Ireland has been sold to local businessman Paul Allen,
the CEO of local crisps company Tayto Group, in a deal which will
save around 260 jobs.

The company has experienced trading difficulties in the past
year, which resulted in Andrew Dolliver and Luke Charleton of
accountancy and advisory firm EY being appointed as
administrators to the company on Aug. 21, just-food.com relates.

The administrators worked with the business to identify a buyer
in advance of this process, with the sale -- for an undisclosed
sum -- concluding shortly after their appointment, just-food.com
discloses.  The business continued to trade as normal throughout
the process, just-food.com notes.

The Magherafelt-based bakery is best known for its Genesis Crafty
range of bread, pancakes, cakes and scones but it also makes
cakes and bread on a private label basis and supplies major
retailers including Tesco, Waitrose and Marks and Spencer.


OPENHYDRO: JCU Asset Identified as Potential White Knight
---------------------------------------------------------
Gavin Daly at The Sunday Times reports that a Chinese group is
interested in rescuing OpenHydro, a troubled tidal energy turbine
developer that was put into provisional liquidation last month
with the loss of more than 100 jobs.

According to The Sunday Times, JCU Asset Management, a subsidiary
of Jiangxi Copper Corporation, one of China's biggest copper
producers, has been identified as a potential white knight for
OpenHydro by a group of minority shareholders challenging the
Dublin company's liquidation.

The shareholder group, including OpenHydro founders
Brendan Gilmore and Donal O'Flynn, owns just over 12% of
OpenHydro and has secured the appointment of an interim examiner
to try to revive the company, The Sunday Times relates.


POUNDWORLD: Iceland to Take Over 19 Former Stores
-------------------------------------------------
Alys Key at City A.M. reports that Iceland Foods Ltd. is to take
over a handful of former Poundworld stores, but a deal to save
another chunk of the chain's estate has now fallen through.

The retailer closed the last of its 335 stores earlier this
month, after crashing into administration in June, City A.M.
recounts.

The Henderson family announced two weeks ago that they would take
up as many as 50 units and the brand name, but the deal was not
closed, City A.M. discloses.  The leases on many of the stores
have now been returned to the landlords, City A.M. notes.

A spokesperson for Deloitte, as cited by City A.M., said: "We had
an agreement in principle, but the sale didn't go through.
Following the closure of all stores, the administrators are
actively seeking offers for the sale of the Poundworld brand and
related intellectual property."

Meanwhile frozen food retailer Iceland has agreed in principle to
take on 19 of the empty Poundworld stores, City A.M. relates.
Four have been earmarked to become larger format stores called
The Food Warehouse, while 15 will be regular Iceland stores, City
A.M. states.

Although the new Iceland stores are expected to open next year,
the deal has not yet been completed, according to City A.M.



                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *