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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

          Friday, September 7, 2018, Vol. 19, No. 178


                            Headlines


C R O A T I A

AGROKOR DD: Creditors Lodge 92 Complaints Against Settlement Deal


H U N G A R Y

IKARUS EGYEDI: Fails to Reach Agreement with Creditors


I R E L A N D

BLACKROCK EUROPEAN VI: Fitch Assigns B- Rating to Class F Debt


L U X E M B O U R G

INTELSAT JACKSON: Moody's Rates $2BB Sr. Unsec. Notes Caa2
INTELSAT JACKSON: S&P Rates $2BB Sr. Unsec. Notes 'CCC+'
SIG COMBIBLOC: S&P Places 'B+' ICR on CreditWatch Positive


N E T H E R L A N D S

BNPP AM 2018: Moody's Assigns B2 Rating to Class F Notes
BNPP AM 2018: Fitch Assigns B- Rating to Class F Debt
STARFRUIT FINCO: Moody's Assigns B2 CFR, Outlook Stable
STARFRUIT TOPCO: Fitch Assigns B+(EXP) LT IDR, Outlook Stable
STARFRUIT TOPCO: S&P Assigns Prelim 'B+' ICR, Outlook Stable


R O M A N I A

ORADEA SHOPPING: Lotus Shareholders Acquire Business


S L O V E N I A

VLM AIRLINES: Put Into Liquidation, Halts Operations


T U R K E Y

DERINDERE TURIZM: S&P Downgrades Issuer Credit Rating to 'SD'


U N I T E D   K I N G D O M

MOORGATE FUNDING 2014-1: S&P Raises E1 Notes Rating to BB+ (sf)
RANGERS FC: Court Hearing Should Take Place in Oldco Dispute
THOMSON REUTERS: Moody's Assigns B3 CFR, Outlook Stable


U Z B E K I S T A N

HAMKORBANK: Moody's Affirms B2 LT Deposit Rating, Outlook Pos.


X X X X X X X X

* Kevin Heverin Joins V&E's Restructuring Practice in London
* BOOK REVIEW: Long-Term Care in Transition


                            *********



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


AGROKOR DD: Creditors Lodge 92 Complaints Against Settlement Deal
-----------------------------------------------------------------
SeeNews reports that creditors have lodged 92 complaints against
the debt settlement deal in Croatia's Agrokor which was upheld on
June 4 by creditors holding 80.20% of total claims against the
troubled concern.

Agrokor said on Sept. 5 the company has asked the High Commercial
Court to reject all complaints as unfounded or inadmissible, and
to confirm its first instance decision on the settlement, SeeNews
relates.

On June 6, the High Commercial Court in Zagreb endorsed the
settlement agreement, which envisages the establishment of a new
Agrokor concern held by the creditors, in which the largest
individual shareholder will be Russia's Sberbank with a 39.2%
stake, SeeNews recounts.

Complaints were submitted by diversified conglomerate Adris
Grupa, food group Vindija, lender Addiko Banka, Raiffeisenbank
Austria, mobile telecommunications company Tele2, insurer Triglav
and others, SeeNews relays, citing news portal Poslovni.hr.

Agrokor, which employs some 60,000 people in the region, has been
undergoing restructuring led by a court-appointed crisis manager
under Croatia's special law on companies of systemic importance
passed in April last year with the aim of shielding the Croatian
economy from big corporate bankruptcies, according to SeeNews.



=============
H U N G A R Y
=============


IKARUS EGYEDI: Fails to Reach Agreement with Creditors
------------------------------------------------------
MTI-ECONEWS reports that troubled Hungarian bus manufacturer
Ikarus Egyedi has failed to reach agreement with creditors.

According to MTI-ECONEWS, Ikarus Egyedi said Csaba Meszaros, the
company's main owner, has offered his 99% holding to creditors
but MKB Bank as biggest creditor rejected the offer.

Last month Ikarus Egyedi said it was offering a deal to
creditors, pledging to repay its debts by September 30, 2025, if
it is allowed to continue production, MTI-ECONEWS recounts.  It
filed for bankruptcy protection on July 9 and the government
declared the company a strategically important enterprise the
following day, MTI-ECONEWS relates.



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


BLACKROCK EUROPEAN VI: Fitch Assigns B- Rating to Class F Debt
--------------------------------------------------------------
Fitch Ratings has assigned BlackRock European CLO VI Designated
Activity Company final ratings, as follows:

EUR235,600,000 Class A-1: 'AAAsf'; Outlook Stable

EUR12,400,000 Class A-2: 'AAAsf'; Outlook Stable

EUR25,150,000 Class B-1: 'AAsf'; Outlook Stable

EUR11,850,000 Class B-2: 'AAsf'; Outlook Stable

EUR28,500,000 Class C: 'Asf'; Outlook Stable

EUR24,000,000 Class D: 'BBB-sf'; Outlook Stable

EUR22,500,000 Class E: 'BB-sf'; Outlook Stable

EUR12,000,000 Class F: 'B-sf'; Outlook Stable

EUR40,100,000 subordinated notes: not rated

BlackRock European CLO VI Designated Activity Company is a cash
flow collateralised loan obligation (CLO). Net proceeds from the
notes have been used to purchase a EUR400 million portfolio of
mainly euro-denominated leveraged loans and bonds. The
transaction has a 4.5- year reinvestment period, scheduled to end
on April 15, 2023 and a weighted average life of 8.5 years. The
portfolio of assets is managed by BlackRock Investment Management
(UK) Limited.

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors at the 'B'
category. The Fitch-calculated weighted average rating factor
(WARF) of the underlying portfolio is 32.09.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-calculated weighted average recovery rate
(WARR) of the identified portfolio is 67.67%.

Diversified Asset Portfolio

The transaction contains a covenant that limits the top 10
obligors in the portfolio to 16% or 24% of the portfolio balance,
depending on the matrix chosen by the asset manager. This
covenant ensures that the asset portfolio will not be exposed to
excessive obligor concentration. The transaction also includes
limits on maximum industry exposure based on Fitch's industry
definitions. The maximum exposure to the three-largest Fitch-
defined industries in the portfolio is covenanted at 40%.

Limited Interest Rate Risk

Unhedged fixed-rate assets cannot exceed 12.5% of the portfolio
while there are 5% fixed-rate liabilities. Fitch modelled both 0%
and 12.5% fixed-rate buckets and found that the rated notes can
withstand the interest rate mismatch associated with each
scenario. Therefore the interest rate risk is partially hedged.

Adverse Selection and Portfolio Management

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

Limited FX Risk

The transaction is allowed to invest up to 30% of the portfolio
in non-euro-denominated assets, provided these are hedged with
perfect asset swaps at settlement.

RATING SENSITIVITIES

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

A 25% reduction in recovery rates would lead to a downgrade of up
to five notches for the class E notes and up to two notches for
the remaining rated notes.

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

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

DATA ADEQUACY

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

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


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


INTELSAT JACKSON: Moody's Rates $2BB Sr. Unsec. Notes Caa2
----------------------------------------------------------
Moody's Investors Service assigned a Caa2 rating to Intelsat
Jackson Holdings S.A. new $2 billion senior unsecured notes
issue. Since the proceeds will refinance a portion of the
company's existing $2.2 billion senior unsecured notes due
October 2020, pay call premia and related fees and expenses, the
transaction is credit metric neutral and has no impact on
Intelsat S.A. ratings. The new notes are rated at the same Caa2
level as the notes they refinance, and are contingent upon
Moody's review of final documentation and no material change in
previously advised terms and conditions.

The following summarizes Moody's ratings and the rating actions
for Intelsat:

Issuer: Intelsat Jackson Holdings S.A.

Assignments:

Gtd Senior Unsecured Regular Bond/Debenture, assigned Caa2 (LGD3)

Existing Ratings and Outlook:

Issuer: Intelsat Jackson Holdings S.A

Gtd Senior Secured Bank Credit Facility, Unchanged at B1 (LGD1)

Gtd Senior Secured Regular Bond/Debenture, Unchanged at B1 (LGD1)

Gtd Senior Unsecured Regular Bond/Debenture, Unchanged at Caa2
(LGD3)

Issuer: Intelsat (Luxembourg) S.A.

Corporate Family Rating, Unchanged at Caa2

Probability of Default Rating, Unchanged at Caa3-PD

Speculative Grade Liquidity Rating, Unchanged at SGL-3

Outlook, Unchanged at Stable

Gtd Senior Unsecured Regular Bond/Debenture, Unchanged at Ca
(LGD5)

Issuer: Intelsat Connect Finance S.A.

Gtd Senior Unsecured Regular Bond/Debenture, Unchanged at Ca
(LGD4)

RATINGS RATIONALE

Intelsat's (Luxembourg) S.A. (Caa2 stable) credit profile is
based primarily on Moody's assessment that the company's capital
structure is not sustainable, with elevated leverage and the
potential of excess supply and sustained cash flow pressure
stemming from evolving industry fundamentals combining to
increase the potential of debt restructurings, that may be
assessed as constituting distressed exchanges and limited
defaults. Moody's-adjusted debt/ EBITDA exceeds 9x, and evolving
fundamentals cause cash flow visibility beyond the next year or
so to be poor. Intelsat's rating benefits from the company's good
scale, large revenue backlog, and sufficient liquidity to
navigate through the next year.

Rating Outlook

The stable outlook is based on Moody's assessment that there is a
limited potential of near term material liability management
transactions which could be assessed as limited defaults.

What Could Change the Rating - Up

The rating could be considered for upgrade if, along with
expectations of solid industry fundamentals, good liquidity, and
clarity on capital structure planning, Moody's anticipated:

  - Leverage of debt/EBITDA normalizing below 6x on a sustained
basis;

  - Cash flow self-sustainability over the life cycle of the
company's satellite fleet.

What Could Change the Rating - Down

The rating could be considered for downgrade if, Moody's
expected:

  - Near-term defaults; or

  - Substantial and sustained free cash flow deficits; or

  - Less than adequate liquidity arrangements.

The principal methodology used in this rating was Communications
Infrastructure Industry published in September 2017.

Headquartered in Luxembourg, and with administrative offices in
McLean, VA, Intelsat S.A. (Intelsat) is one of the three largest
fixed satellite services operators in the world. Annual revenues
are expected to be approximately $2.2 billion with EBITDA of
approximately $1.6 billion.

Intelsat S.A. is the senior-most entity in the Intelsat group of
companies and is the only company in the family issuing financial
statements. Since Intelsat guarantees debts at its subsidiary,
Intelsat (Luxembourg) S.A. and there is a sequential flow of
guarantees via the various other holding companies through to
Intelsat Jackson Holdings S.A. (Jackson), Moody's relies on
Intelsat S.A.'s financial statements.


INTELSAT JACKSON: S&P Rates $2BB Sr. Unsec. Notes 'CCC+'
--------------------------------------------------------
S&P Global Ratings assigned its 'CCC+' issue-level rating and '3'
recovery rating to Luxembourg-based fixed satellite service
provider Intelsat S.A. subsidiary Intelsat Jackson Holdings
S.A.'s proposed $2 billion senior unsecured notes due in 2024.
The '3' recovery rating indicates S&P's expectation of meaningful
(50%-70%; rounded estimate: 50%) recovery for lenders in the
event of a payment default. The company plans to use the proceeds
from the proposed notes to repurchase Intelsat Jackson's 7.25%
senior notes due 2020 and repay a portion of Intelsat Jackson's
7.5% senior notes due 2021.

S&P said, "The issuer credit rating on Intelsat S.A. remains
'CCC+', reflecting our view that Intelsat's capital structure
appears unsustainable over the long term because it depends on
favorable business and financial conditions to meet its financial
commitments. We expect Intelsat's leverage will remain elevated
in the mid-8x area on modest EBITDA growth over the next few
years, with minimal free operating cash flow relative to its
heavy debt burden of about $14 billion. We do not incorporate any
potential benefit from the company's C-band spectrum proposal in
our rating due to significant uncertainty around the timing and
nature of a FCC ruling, the potential revenue opportunity, and
the associated cost to clear the spectrum."

  RATINGS LIST
  Intelsat S.A.
  Issuer credit rating                    CCC+/Negative/--

  New Rating
  Intelsat Jackson Holdings S.A.
   Senior Unsecured
    $2 bil notes due 2024                 CCC+
     Recovery rating                      3(50%)


SIG COMBIBLOC: S&P Places 'B+' ICR on CreditWatch Positive
----------------------------------------------------------
S&P Global Ratings said that it placed its ratings on SIG
Combibloc Holdings S.C.A. (SIG), including the 'B+' long-term
issuer credit rating, on CreditWatch with positive implications.

S&P said, "We also assigned our 'BB+' issue rating to SIG
Combibloc Purchase Co S.a.r.l's proposed EUR1.9 billion senior
secured facilities (comprising a EUR1.25 billion term loan A, a
EUR350 million term loan B, and a EUR300 million revolving credit
facility [RCF]). The recovery rating on the proposed senior
secured facilities is '3', indicating our expectation of
meaningful recovery (50%-70%; rounded estimate: 55%) in the event
of a payment default."

The CreditWatch positive placement follows SIG's announcement
that it intends to launch an IPO and use the net proceeds from
the offering to repay a significant portion of its current debt.
SIG's private equity owner Onex will retain majority ownership in
the company after the IPO, but we expect Onex to reduce its stake
further in the coming years.

SIG will refinance its existing debt facilities upon completion
of the IPO. It will replace its EUR260 million RCF, EUR1.6
billion term loan B, and EUR675 million senior unsecured notes.
SIG will raise EUR1.9 billion of senior secured debt (that is,
the proposed debt facilities).

S&P said, "We estimate S&P Global Ratings-adjusted debt to EBITDA
(including adjustments for factoring arrangements and other debt-
like items) to be around 3.9x after the transaction, down from
about 6.0x before the IPO.

"Given the substantial improvement in credit metrics, we expect
to raise the long-term issuer credit rating on SIG by three
notches upon completion of the IPO. SIG's leverage excluding S&P
Global Ratings' adjustments is expected to be around 3.0x-3.25x.

"We expect the new senior secured facilities to be borrowed by
SIG Combibloc PurchaseCo S.a.r.l, a subsidiary of SIG Combibloc
Holdings S.C.A. Our ratings on SIG Combibloc Holdings S.C.A
reflect the company's solid market position in aseptic-carton
packaging, strong EBITDA margins, technical expertise, high
customer retention rates, and relatively stable end-markets.
We plan to resolve the CreditWatch after the IPO is complete and
SIG has reduced the leverage within its capital structure.

"Given the significant reduction in total leverage, and our
expectation that the company will maintain a conservative
financial policy and prioritize further deleveraging, we expect
to raise our issuer credit rating on SIG Combibloc by three
notches to 'BB+.'

"Upon completion of the IPO and the debt refinancing transaction,
we will remove our ratings on the outstanding senior secured
facilities (EUR260 million RCF and around EUR1.9 billion term
loan B) and EUR675 million unsecured notes.

"Alternatively, if the IPO does not materialize, S&P would expect
to affirm our ratings and assign a stable outlook."


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


BNPP AM 2018: Moody's Assigns B2 Rating to Class F Notes
--------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by BNPP AM EURO CLO
2018 B.V.:

EUR 248,000,000 Class A Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 36,500,000 Class B Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 29,500,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

EUR 24,250,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Baa3 (sf)

EUR 21,750,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Ba2 (sf)

EUR 12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. The definitive ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, BNP PARIBAS ASSET
MANAGEMENT France SAS, has sufficient experience and operational
capacity and is capable of managing this CLO.

BNPP AM EURO CLO 2018 B.V is a managed cash flow CLO. At least
90.0% of the portfolio must consist of senior secured loans and
senior secured bonds and up to 10.0% of the portfolio may consist
of unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The portfolio is expected to be approximately
70% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

BNPP AM 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 six classes of notes rated by Moody's, the
Issuer issued EUR 7.25M of M-1 Subordinated Notes and EUR 32.0M
of M-2 Subordinated Notes, which are not rated. On top of any
residual amounts distributed as interest and principal according
to the priority of payments, M-2 Subordinated Notes will accrue
additional interest in an amount equal to a certain proportion of
both the senior and subordinated management fees. The senior
management fee component of such additional interest payment to
M-2 notes is ranking senior to interest on the Class B, C, D, E
and F notes.

Given that certain portions of the senior and junior management
fees are redirected to subordinated noteholders, the aggregate
compensation of the collateral manager can be lower than for
other CLOs Moody's rates. In case a removal and subsequent
replacement of the current collateral manager should become
relevant, this CLO may be exposed -- in relative terms -- to a
higher risk of finding a suitable replacement collateral manager
due to the prevailing management fee scheme being perceived as
less adequate by potential succession candidates.

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. BNPP AM's investment decisions
and management of the transaction will also affect the notes'
performance.

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.

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

Par amount: EUR 400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.50%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 8.75 years

8.75 years WAL was modelled instead of 8.5 years as (i) pursuant
to the WAL definition only full quarters are counted for the
purpose of calculating the WAL and (ii) the determination date is
almost always prior to a payment date such that the current
quarter would not be taken into account.

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


BNPP AM 2018: Fitch Assigns B- Rating to Class F Debt
-----------------------------------------------------
Fitch Ratings has assigned BNPP AM Euro CLO 2018 B.V. final
ratings, as follows:

Class A: 'AAAsf'; Outlook Stable

Class B: 'AAsf'; Outlook Stable

Class C: 'Asf'; Outlook Stable

Class D: 'BBB-sf'; Outlook Stable

Class E: 'BB-sf'; Outlook Stable

Class F: 'B-sf'; Outlook Stable

M-1 Sub Notes: not rated

M-2 Sub Notes: not rated

BNPP AM Euro CLO 2018 B.V. is a securitisation of mainly senior
secured loans (at least 90%) with a component of senior
unsecured, mezzanine, and second-lien loans. A total note
issuance of EUR411.25 million has been used to fund a portfolio
with a target par of EUR400 million. The portfolio is actively
managed by BNP Paribas Asset Management France SAS. The CLO
envisages a further four-year reinvestment period and an 8.5-year
weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 33.66.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rating (WARR) of the
identified portfolio is 63.59%.

Diversified Asset Portfolio

The transaction includes four Fitch matrices the manager may
choose from, corresponding to the top 10 obligors, limited at 17%
and 24% and fixed rate concentration at 0% and 5%. The
transaction also includes limits on maximum industry exposure
based on Fitch industry definitions. The maximum exposure to the
three largest (Fitch-defined) industries in the portfolio is
covenanted at 40%. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction features a four-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests.

RATING SENSITIVITIES

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

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

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


STARFRUIT FINCO: Moody's Assigns B2 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned new ratings to Netherlands
based specialty chemicals manufacturer Starfruit Finco BV,
including a B2 Corporate Family Rating and a B2-PD Probability of
Default Rating. Concurrently, Moody's assigned a B1 rating to the
company's proposed EUR5,115 million senior secured first lien
term loan facilities maturing in 2025 and a B1 rating to the
proposed EUR750 million senior secured revolving credit facility
maturing in 2024. The borrowers of the senior secured term loan
facilities are Starfruit Finco BV, Starfruit US Holdco LLC and
Starfruit Swedish Bidco AB. The ratings outlook is stable.

RATINGS RATIONALE

The B2 CFR reflects Starfruit's (1) strong business profile
underpinned by a well-balanced product portfolio of specialty
chemicals and geographical diversification; (2) leading global
market share and well diversified end markets providing the
company with some protection against market cycle; (3) positive
momentum in its end markets supporting top line and EBITDA growth
forecast; (4) global manufacturing footprint with largely
backward integrated facilities into feedstocks along the value
chains leading to a low cost base and (5) solid and stable
operating profitability and cash flows, with EBITDA margin
fluctuating within a mid- to high-teens range in percentage
terms, which should be further supported by cost reduction
measures identified by the new owner.

However the CFR is constrained by (1) high Moody's adjusted
leverage of 6.5x at closing of Starfruit's acquisition by Carlyle
and is expected to deleverage modestly over the next 18 months on
a gross debt basis; (2) a degree of cyclicality in certain value
chains like chlor alkali, bleaching (sodium chlorates) and
ethylene amines; (3) exposure to raw material price fluctuations
that the company cannot always pass through to its customers or
with a lag time of up to three months.

Moody's expects that over the next 18 months Starfruit's
financial performance should benefit from a positive operating
leverage effect driven by expected higher volumes with the launch
of new innovative products, increased capacity following
debottlenecking program and cost reduction program. This should
support the new owner expectation of EBITDA margin expansion to
25.3% in 2022 from 20.4% in 2017.

Despite a modest step-up in capital expenditure in 2018 and a
high interest charge, Moody's expects that the company will be
free cash flow (FCF) positive around EUR120 million in 2018,
incorporating Moody's adjustments. Moody's expects the company to
continue to generate solid FCF around EUR185 million in 2019
supported by the growing EBITDA, lower capital expenditures as
maintenance capex should normalize to 3.5% of sales compared to
5.5% over the last three years.

Starfruit's liquidity is strong and supported by cash on balance
sheet of EUR350 million at closing and a large committed and
undrawn revolving credit facility of EUR750 million. Moody's
expects the company to remain free cash flow positive this year
and cash in hands should increase to close to EUR410 million. The
company will not have any maturities before 2024 (RCF) and 2025
(senior secured term loan).

STRUCTURAL CONSIDERATIONS

In accordance with Moody's Loss Given Default (LGD) Methodology,
the notching of the senior secured debt at B1 is one notch above
the B2 CFR, reflecting the large amount of unsecured debt ranking
behind the senior secured debt in case of insolvency proceedings.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectations that Starfruit
will maintain its Moody's adjusted EBITDA margin in the high
teens to low twenties over the next 18 months, supported by cost
improvements, and that gross leverage, as adjusted by Moody's,
will not materially reduce from the opening 6.5x. It also
reflects the rating agency's expectation that the company will
maintain its strong liquidity and not engage in an aggressive
dividend policy.

WHAT COULD CHANGE THE RATING UP/DOWN

Starfruit's ratings could be upgraded if the company (1) reduces
its Moody's adjusted debt/EBITDA sustainably under 6x; (2)
retained cash flow/debt above 10% on sustainable basis and (3)
free cash flow is sustainably positive.

Conversely, downward ratings pressure could develop if the
company's (1) Moody's adjusted leverage increases sustainably
above 7x; and (2) retained cash flow/debt below 5% on sustainable
basis or (3) free cash flow becomes negative and the liquidity
profile deteriorates.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemical
Industry published in January 2018.

Assignments:

Issuer: Starfruit Finco BV

Corporate Family Rating , Assigned B2

Probability of Default Rating, Assigned B2-PD

Backed Senior Secured Bank Credit Facility, Assigned B1

Outlook Actions:

Issuer: Starfruit Finco BV

Outlook, Assigned Stable

COMPANY PROFILE

Starfruit (ex Akzo Nobel Specialty Chemicals) is a leading global
specialty chemicals business serving well-structured, resilient
and growing end markets. The company's market position is
supported by its advanced technologies and industry know-how from
hazardous to high purity chemicals, with more than 5,000 active
patents and a world scale manufacturing footprint.

The company is comprised of 5 business units of Industrial
Chemicals (28% of 2017 reported EBITDA), Pulp and Performance
Chemicals (26%), Ethylene & Sulfur Derivatives (18%), Surface
Chemistry (17%), and Polymer Chemistry (12%). In 2017, Starfruit
generated EUR5 billion of sales and EUR1,009 million of pro forma
adjusted EBITDA (20.3% margin).

On March 27, 2018, affiliates of The Carlyle Group (Carlyle)
signed a definitive agreement to acquire the Akzo Nobel Specialty
Chemicals business from Akzo Nobel N.V. (Baa1, stable) at an
enterprise value of EUR9.86 billion.


STARFRUIT TOPCO: Fitch Assigns B+(EXP) LT IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned Starfruit Topco Cooperatief U.A.
(AkzoNobel Specialty Chemicals or ANSC) an expected Long-Term
Issuer Default Rating (IDR) of 'B+(EXP)' with a Stable Outlook.
Fitch has also assigned expected issue ratings to Starfruit Finco
BV for the senior secured term loans of 'BB-(EXP)'/'RR3'/66% and
the senior unsecured debt of 'B-(EXP)'/'RR6'/0%.

The assignment of final ratings is contingent upon the completion
of the leveraged buyout of ANSC by The Carlyle Group and GIC with
terms and conditions in line with its current assumptions. The
assignment of final ratings to the debt is contingent upon
receipt of final documents conforming to the draft information
already received.

The IDR reflects the robust business model of ANSC but is
constrained by its elevated financial risk. The company benefits
from leading market positions with high geographic diversity and
exposure to a broad range of end-markets. The market position is
supported by high barriers to entry due to the specialised nature
of the company's portfolio with a history of collaboration with
OEMs, a valuable portfolio of proprietary and patented products
and a sizable invested base.

ANSC's exposure to commodity chemicals and potential resulting
cash flow volatility are partly offset by a flexible pass-through
cost structure. Its base case forecasts some moderate margin
improvement on cost savings after the leveraged buyout, which
leads to long-term positive free cash flows (FCF). However,
ANSC's elevated financial risk with FFO adjusted gross leverage
above 8x at the close of the buyout provides limited headroom.

The Stable Outlook reflects its expectation of a slow
deleveraging toward 7.0x by 2021 on the back of low single-digit
revenue growth, gradually improving margins and reduced capex.

KEY RATING DRIVERS

Leading Market Position: ANSC's focus on technological leadership
and recurring revenue helps reduce cash flow volatility. ANSC
maintains a leading position in a majority of its markets,
supported by strong customer relationships and advanced research
and development. It is not only diversified internationally
across EMEA, APAC, and the Americas, but the company also
maintains exposure to a range of end-markets. However, while the
business units predominantly produce specialty chemicals, each
has a commodity chemical element.

High Leverage despite Strong Profitability: The company has
elevated financial risk with FFO adjusted gross leverage
projected to stay close to 8.0x over the next three years. This
is partly counterbalanced by positive FCF generation, underpinned
by strong and stable EBITDA margins of around 20% under its
rating case. Expected efficiencies from somewhat reduced capex
and operating expenses should improve cash flows while being
offset by increased expenses from operating as a standalone
business from AkzoNobel NV its former parent company. Fitch
anticipates a slow deleveraging towards 7.0x on FFO gross
adjusted basis by 2021. However, this level of leverage is
elevated relative to chemicals peers.

High Barriers to Entry: High barriers to entry are reflected in
the specialised nature of the products, technological know-how
requirement, physical connection to clients, high switching
costs, and protected patents, all of which result in lower
competition and pricing pressure than in commodity chemicals and
support margin stability. Speciality chemicals are typically less
capital-intensive and benefit from innovations such as chemical
islands that co-locate production facilities near clients.

Regulatory Risk: Regulatory risk on the global specialty
chemicals industry is especially high as governments are
increasingly outlawing the more environmentally harmful
manufacturing methods. Also included are the expensive and time-
intensive requirements to remain in compliance with highly
detailed regulations.

Exposure to Cyclical End-markets: ANSC manufactures a wide range
of specialty chemicals, yet certain business units (industrial
and ethylene & sulfur) tend to have more cyclical end-market
customers. On the other hand, it is the pulp & performance,
surface chemical, and polymer business units that are expected to
be less affected by a cyclical downturn. Total cyclical end-
market exposure across the whole business is approximately 30%-
40% and composed of oil & gas, construction, and agrochemicals.

Favourable Pass-Through Cost Structure: The company has a cost
advantage due to long-term supplier contracts with customers that
adjust for increases in raw material prices. Also built into the
contracts are periodic price renegotiations, often in ANSC's
favour due to the company's pricing power. Key input costs and
feedstock include electricity, natural gas, natural gas
derivatives, and natural fats. To further support this pass-
through cost structure and control costs, ANSC has rolled out
integrated electricity plants and hedges 75% of volume demand
within a three-to-five year window.

DERIVATION SUMMARY

ANSC's business profile compares favourably against a peer
universe including Solvay SA (BBB/Positive), Ineos Group Holdings
SA (BB+/Stable) and Westlake Chemical (BBB/Stable). It is
particularly well-placed across business and financial factors
such as diversification/scale, product leadership, and
profitability. However, it is constrained by a highly leveraged
capital structure and by the resulting reduced financial
flexibility. In addition, ANSC is exposed to cyclical end-
markets. Nevertheless, the company has demonstrated the ability
to manage this cyclical exposure through the previous market
downturn in 2008 to 2009.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer

  - Revenue CAGR of 2.1% led by the industrial and surface
chemicals business units

  - Adjusted EBITDA margins expanding to 21.5% by 2021 from 18.6%
currently, driven by market share gain and cost savings

  - 25% tax rate

  - Capex of EUR300 million-EUR330 million per annum; no M&A

  - Annual operating lease expense of EUR70 million capitalised
at 8x

  - No common dividends

Fitch's Key Assumptions within its Recovery Analysis

  - Going concern approach

  - Distressed enterprise value-to-EBITDA multiple of 5.5x

  - Post-recovery EBITDA discounted 30% from LTM EBITDA

  - Administrative cost of 10%

  - EUR750 million revolving credit facility (RCF) fully drawn

RATING SENSITIVITIES

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

  - FFO adjusted gross leverage below 5.5x on a sustained basis

  - FFO fixed charge cover sustainably above 2.5x

  - Expanded EBITDA margins sustained above 23%, and FCF margins
above 5% through achieved synergies and cost savings

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

  - FFO adjusted gross leverage above 8.0x on a sustained basis

  - FFO fixed charge cover sustainably below 2.0x

  - Weakening EBITDA & FCF margins, for example as a result of
lost market share or regulatory changes

LIQUIDITY

Comfortable Liquidity: ANSC's liquidity is comfortable given
expectations of strong 2018 cash on balance sheet of EUR389
million and an undrawn EUR750 million RCF. Historically, ANSC has
generated positive FCF, and Fitch expects this to grow between
2019 and 2021. While Fitch expects a nominal amount of
amortisation of the USD term loan, there are no near tern
maturities as all other debt facilities will be repaid by this
transaction. Fitch believes that ANSC's strong asset base will
allow the company to access capital markets even under stressed
conditions.


STARFRUIT TOPCO: S&P Assigns Prelim 'B+' ICR, Outlook Stable
------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B+' long-term issuer
credit rating to Netherlands-headquartered Starfruit Topco
Cooperatief U.A. The outlook is stable.

S&P said, "In addition, we assigned our preliminary 'B+' long-
term issue rating to Starfruit's proposed first-lien senior
secured facilities, including EUR5.1 billion euro- and dollar-
denominated term loans due 2025, and a EUR750 million revolving
credit facility (RCF) due 2024, to be issued by co-borrowers
Starfruit Finco B.V., Starfruit US Holdco LLC, and Swedish Finco
(to be incorporated). The preliminary recovery rating on the
first-lien senior secured facilities is '3', reflecting our
expectation of meaningful recovery of 50%-70% (rounded estimate:
60%) in the event of a payment default.

"The final ratings will depend on our receipt and satisfactory
review of all final documentation and final terms of the
transaction. The preliminary ratings should therefore not be
construed as evidence of the final ratings. If we do not receive
the final documentation within a reasonable time, or if the final
documentation and final terms of the transaction depart from the
materials and terms reviewed, we reserve the right to withdraw or
revise the ratings. Potential changes include, but are not
limited to, utilization of the proceeds, maturity, size and
conditions of the facilities, financial and other covenants,
security, and ranking. The proposed structure does not, at this
stage, include any shareholder loans, PECS or preference stock
through the entire corporate group structure (all the way to the
shareholders, sponsor, and fund). Were any such instruments be
included in the final structure and we included them in our
financial analysis, including in our leverage and coverage
calculations, we could revise the ratings."

The rating follows private equity firm Carlyle's acquisition of
AkzoNobel's specialty chemicals business through holding company
Starfruit. The transaction is due to close before year-end 2018,
subject to regulatory approvals. The proposed financing for this
carve-out comprises:

-- A EUR1.8 billion senior secured first-lien term loan due
2025;

-- A EUR3.3 billion U.S. dollar-denominated senior secured
first-
    lien term loan due 2025 ($3.4 billion equivalent);

-- EUR485 million senior unsecured debt;

-- EUR900 million U.S. dollar-denominated senior unsecured debt
    ($1.1 billion equivalent); and

-- A EUR750 million multicurrency RCF due 2024, undrawn at
close.

The transaction will be further supported by about EUR3.2 billion
of common equity provided by the private equity sponsor.

S&P said, "The preliminary ratings primarily reflect Starfruit's
highly leveraged capital structure pro forma the transaction,
since we forecast S&P Global Ratings-adjusted debt to EBITDA of
7.0x-7.5x in 2018 and 6.5x-7.0x in 2019. At the same time, we
view Starfruit's adjusted EBITDA interest coverage of 2.5x-3.0x
as supportive for the rating, as well as the positive free
operating cash flow (FOCF) of EUR150 million-EUR250 million we
forecast for 2018-2019."

Headquartered in the Netherlands, Starfruit is a midsize producer
of specialty and commodity chemicals, with either No. 1 or No. 2
global or regional market positions (either by capacity or
volumes sold) representing about 80% of its revenues.

Starfruit comprises 21 segments consolidated into five business
units:

-- Industrial chemicals, accounting for about 26% of sales over
    the 12 months ending June 30, 2018;
-- Ethylene and sulfur derivatives (22%);
-- Surface chemistry (20%); Pulp and performance chemicals
    (17%); and
-- Polymer chemistry (14%).

Through these units, Starfruit manufactures and sells a diverse
mix of products, such as performance additives, sulfur
derivatives, monochloroacetic acid, and chelates and
micronutrients. S&P said, "We view these products as specialty
chemicals and estimate that they account for about 60% of the
portfolio. Starfruit's products also include chlor-alkali,
peroxides, sodium chlorate, and ethylene amines, which we view as
commodity chemicals and estimate that they account for about 40%
of the portfolio. Starfruit's end-markets are well diversified
across various sectors including pulp, consumer goods,
construction, agrochemicals, infrastructure, and cleaning, as
well as other industries. Starfruit exhibits no particular
reliance on a single product, customer, or manufacturing site."

S&P said, "Our business risk assessment is supported by
Starfruit's long-term customer relationships of 15-25 years, with
over 98% retention of its 250 customers over the past three
years. We view favorably Starfruit's close relationships with
customers, supported by shared sites, collaboration in product
development -- for example through testing facilities, or
"Chemical Islands", for pulp mill customers -- tailor-made
solutions, and the decisive role of Starfruit's chemicals in the
properties of the final product. At the same time, we note that
about 40% of Starfruit's products have relatively low value-added
properties, with a lag in raw materials costs pass-through of
between one quarter and one year.

"We consider Starfruit's profitability healthy for its specialty
and commodity products mix. Support comes from Starfruit's
partial self-sufficiency in the production of some raw materials
and energy thanks to its own co-generation units, and low
logistic costs thanks to its integration into its customers'
manufacturing processes, for example, for Industrial Chemicals'
chloralkali. Starfruit's reported EBITDA increased steadily to
reach about EUR914 million in 2017, with a margin of 18.4%, up
from EUR713 million in 2014 with a 14.6% margin, benefiting from
operating efficiencies and low-cost feedstock.

"Business constraints include, in our view, potential volatility
stemming from the relatively commoditized nature of a significant
portion of Starfruit's product portfolio, and above-average
exposure to macroeconomic growth in Europe, with about 48% of
2017 revenues derived from this region. This is notwithstanding
Starfruit's overall diversified footprint in both developed and
emerging markets, with the balance of revenues derived from North
America (24%), Asia Pacific (16%), Latin America (10%), and the
rest of the world (2%). Further constraints include some end-
market and geographical concentration within individual business
units. For example, about 90% of Starfruit's industrial chemicals
business unit sales are derived from Europe, while 84% of its
pulp and performance chemicals business unit sales are exposed to
more cyclical industrial end-markets."

Aside from its highly leveraged credit metrics, Starfruit's
financial risk profile is constrained by its private equity
ownership and the potential for the sponsor's high tolerance for
leverage. However, we understand from Carlyle that it does not
intend to pay dividends in the near term. Nevertheless, the
credit documentation allows for dividend pay-outs as long as the
total leverage ratio (calculated including the synergies
reasonably expected to be realised based on actions taken in the
next 24 months) is below 5.25x.

In S&P's base-case for 2018-2019, it assumes:

-- Revenue growth of about 3% in 2018-2019 on average,
    considering strong end-market demand stemming from the need
     for lightweight products, reductions in emissions,
     replacement of phosphates, an expanding middle class, and a
     growing market for specialty chemicals products. S&P said,
     "We also factor in steady demand from construction,
     infrastructure, and industrial end-markets for commodity
     chemicals products. Our revenue growth assumptions for
     Starfruit are moderated by our macroeconomic forecasts, with
     projected GDP growth of about 2.1%-2.3% in Europe and 2.9%-
     2.5% in North America in 2018-2019 (where Starfruit generated
     about 70% of its sales in 2017). This is notwithstanding
     projected GDP growth of about 5.6% in Asia (16%)."

-- An adjusted EBITDA margin of about 20%-21% in 2018 and 2019,
    benefiting from sponsor- and management-initiated efficiency
    improvements stemming from debottlenecking, rationalization,
     and complexity reductions at production sites; efficiencies
     in procurement; and streamlining of functions in individual
    business units. At the same time, S&P factors in its
    assumption of an inflationary cost environment for raw
    materials, notably due to the indirect effect of rising
    natural gas prices in Europe, which is partly mitigated by
    Starfruit's track record of efficient pass-through of three-
    to-six months of raw material price increases on average for
    specialty chemicals products.

-- Research and development expenses at about 2% of sales.

-- Pension deficit of about EUR0.55 billion (net of tax).

-- Tax rate of about 27%.

-- Capital expenditure (capex) of about EUR370 million in 2018
    and EUR280 million in 2019, of which about EUR190 million
    relates to maintenance.

-- Broadly neutral working capital at year end.

-- No acquisitions and no dividends.

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

-- Adjusted gross debt to EBITDA of about 7x-7.5x in 2018,
    improving to about 6.5x-7x in 2019;
-- EBITDA interest coverage of about 3x in 2018 (pro forma the
     full-year impact of the proposed capital structure), and
     about 2.5x-3x in 2019; and

-- Cash FOCF of EUR150 million-EUR250 million in 2018 and 2019.

S&P said, "We assess Starfruit's liquidity as strong, based on
our expectation that sources will exceed uses of liquidity by
more than 4x in the next 24 months. We assume that Starfruit will
maintain comfortable headroom under the first-lien leverage
financial covenant incorporated in the RCF agreement which
becomes active when the facility is 35% drawn."

S&P anticipates the following liquidity sources over the next 12
months:

-- Cash balance of about EUR353 million pro forma the
    transaction.
-- FFO of about EUR520 million-EUR540 million; and
-- Undrawn committed RCF of EUR750 million maturing 2024.

S&P anticipates the following liquidity uses over the same
period:

-- Capital expenditure of about EUR300 million, of which about
    EUR190 million relates to maintenance;
-- No dividends or acquisitions; and
-- Broadly neutral working capital at year-end, with minimal
    seasonality of up to EUR50 million during the year.

S&P said, "The stable outlook reflects our view that Starfruit
will report a solid operating performance in 2018 and 2019, with
adjusted EBITDA of EUR1.0 billion-EUR1.1 billion, and that its
adjusted EBITDA margin will remain at about 19%-20%, benefiting
from operating efficiencies and notwithstanding our expectation
of an inflationary environment for raw materials.

"Under our base-case scenario, Starfruit should generate FOCF of
about EUR230 million on average in 2018-2019. We view adjusted
gross debt to EBITDA in the 5.5x-7.0x range and EBITDA cash
interest coverage of about 3x as commensurate with the 'B+'
rating. The stable outlook also factors in our view that
Starfruit's liquidity will remain adequate, and that it will
maintain comfortable headroom under the leverage covenant
incorporated in its RCF.

"We could lower the rating on Starfruit if its adjusted gross
debt to EBITDA ratio approached 7.0x and EBITDA cash interest
approached about 2.5x with no prospects of recovery. This could
happen, we believe, if Starfruit increased its capex, dividends,
or engaged in debt-financed acquisitions, or if it's reported
EBITDA margin declined below 18%, notwithstanding the efficiency
improvements initiated by the private equity sponsor."

Upside rating potential could arise if Starfruit's adjusted
EBITDA margins grew durably above 21%-22%, leading to sustainable
deleveraging below 5.5x on gross adjusted basis. S&P said,
"Upside potential would also depend on Starfruit's growth
strategy and our confidence in the commitment of its private
equity sponsor to support a higher rating and keep adjusted
leverage below 5.5x. We view this scenario as unlikely in 2018-
2019, given our forecast of adjusted debt to EBITDA well above
5.5x."


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


ORADEA SHOPPING: Lotus Shareholders Acquire Business
----------------------------------------------------
Razvan Zamfir at Business Review reports that Oradea Shopping
City, the second biggest mall in the city, built in 2010, going
through a second bankruptcy, was just purchased by the
shareholders of Lotus Center Mall in Oradea, the biggest one in
the city.

The project was sold by Expert Insolvency SPRL liquidator which
took over the building after the company Shopping City Oradea
(former Shopping Center Holding) went bankrupt, Business Review
relates.

The first sale of the mall (named back then Tiago Mall) took
place in 2010 when the Irish developer Mivan sold it for EUR30.5
million to Shopping Center Holding, owned by Cyprus off shores
with Puiu Popoviciu behind them, Business Review recounts.

In 2016, Shopping Center Holding put the mall again on sale for
EUR15 million, but obtained only EUR8 million in august 2018,
Business Review states.  The purchase of Oradea Shopping City was
made by Sapient Center, owned by Lotus Center (70% of shares),
Business Review discloses.


===============
S L O V E N I A
===============


VLM AIRLINES: Put Into Liquidation, Halts Operations
----------------------------------------------------
SeeNews reports that SHS Antwerp Aviation NV, trading under the
brand name VLM Airlines, which has a Belgian and a Slovenian air
operator's certificate, said it was put into liquidation on
Aug. 31.

VLM Airlines said in a statement on its website the activities
were stopped with immediate effect, with no flights carried out
after Sept. 3, SeeNews relates.

SHS Aviation B.V., the majority shareholder of the SHS Antwerp
Aviation NV (VLM), decided at an extraordinary general assembly
on Aug. 31 to dissolve the airline and to liquidate it, SeeNews
discloses.

In August, it was announced that VLM would discontinue
connections to Slovenia's Maribor airport, leaving the airport
without any flights, SeeNews recounts.

At the same time, VLM suspended flights to Aberdeen, Birmingham,
Cologne-Bonn, Munich and Rostock, SeeNews notes.  Later, it also
cancelled the Antwerp to London City and Zurich services, SeeNews
states.

SHS Antwerp Aviation N.V. is a subsidiary of the Dutch investment
company SHS Aviation B.V., which is owned 60% by Dutch investors
and 40% by Chinese investors. SHS Antwerp Aviation N.V. is
developing airline activities under the trading name "VLM". VLM
employs 85 people.



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


DERINDERE TURIZM: S&P Downgrades Issuer Credit Rating to 'SD'
-------------------------------------------------------------
S&P Global Ratings said that it lowered to 'SD' (selective
default) from 'CCC+/C' its long- and short-term issuer credit
ratings on Turkey-based fleet leasing company Derindere Turizm
Otomotiv Sanayi ve Ticaret A.S.

S&P also lowered the Turkey national scale ratings on Derindere
to 'SD' from 'trB+/trB'.

The downgrade follows Derindere's failure to redeem its Turkish
Lira (TRY) 50 million short-term bond on the Aug. 31, 2018 due
date.

S&P said, "In line with our criteria, we consider it a default
scenario when payments on a short-term financial obligation are
not made on the due date, unless we believe that such payments
will be made during the next five business days--the maximum
acceptable grace period for short-term debt.

"We understand that Derindere's bond contractual terms do not
envisage a grace period. That said, we view it as highly unlikely
that the company will pay the bond principal amount within five
business days of the due date."

This is because Derindere's profitability and cash flow
generation capacity has been badly hit by the severe
deterioration of the economic environment in Turkey and by the
unfavorable business and operating conditions in the Turkish
fleet leasing sector.

Specifically, the steady weakening of the Turkish lira against
hard currencies -- with more than 50% depreciation against the
U.S. dollar since the beginning of the year -- has put pressure
on the indebted corporate sector, but also players such as
Derindere. At the same, increasing domestic interest rates,
coupled with Turkish banks' unwillingness to lend after
Fleetcorp's (another large Turkish leasing operator) selective
default, has increased the refinancing risk in the sector.

Based on data for the first half of 2018 -- the latest financial
information available -- upcoming redemptions in the second half
of 2018 are about TRY903 million, compared with cash and cash
equivalents of TRY90 million. The overall amount of funds
borrowed is around TRY3.4 billion, with bank borrowings
constituting the largest part (TRY3.2 billion).

As of September 5, the company has two bonds outstanding: one of
TRY46 million maturing in March 2019 and the other TRY 50 million
(Sukuk) maturing in June 2019. S&P said, "We understand that the
first upcoming coupon date is on Sept. 10, 2018. S&P Global
Ratings assigns an 'SD' rating when we believe that the obligor
has selectively defaulted on a specific issue or class of
obligations, but it will continue to meet its payment obligations
on other issues or classes of obligations in a timely manner. We
may lower the rating to 'D' if we believe that the default will
be a general default and that the obligor will fail to pay all or
substantially all of its obligations as they come due."



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


MOORGATE FUNDING 2014-1: S&P Raises E1 Notes Rating to BB+ (sf)
---------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Moorgate
Funding 2014-1 PLC's class A1 and B1 notes. At the same time, S&P
has raised its ratings on the class C1, D1, and E1 notes.

S&P said, "The rating actions follow our credit and cash flow
analysis of the transaction and reflect the application of our
European residential loans criteria and our current counterparty
criteria.

"In our opinion, the performance of the loans in the collateral
pool has remained stable since our last review in May 2017. Total
delinquencies have slightly increased to 7.6% from 7.5%, whereas
90+ days delinquencies decreased to 3.7% from 4.1% since our
previous review.

"Prepayments have decreased to 7.9% from 9.9% since our previous
review, which is higher than the 6.8% observed in our U.K.
nonconforming residential mortgage-backed securities (RMBS)
index.

"The greater proportion of the loans in the pool receiving the
maximum seasoning credit benefitted our weighted-average
foreclosure frequency (WAFF) calculations. Our weighted-average
loss severity (WALS) assumptions have decreased at all rating
levels as a result of a lower weighted-average current loan-to-
value ratio."

  Rating        WAFF     WALS
                 (%)      (%)
  AAA          39.47    46.80
  AA           30.14    39.72
  A            24.69    27.75
  BBB          19.44    20.74
  BB           14.07    15.97
  B            12.38    12.02

Credit enhancement levels have increased for all rated classes of
notes since closing. The notes benefit from two liquidity reserve
funds (A1 and B1) and a principal reserve fund. These reserve
funds are currently not amortizing.

S&P said, "Our credit and cash flow analysis indicates that the
available credit enhancement for the class A1 and B1 notes is
commensurate with the currently assigned ratings. We have
therefore affirmed our ratings on these classes of notes.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class C1 notes is commensurate with a
higher rating than the one currently assigned. We have therefore
raised to 'A+ (sf)' from 'A (sf)' our rating on this class of
notes.

"Our credit and cash flow analysis indicates that the available
credit enhancement for the class D1 and E1 notes is commensurate
with higher ratings than those currently assigned. However, the
collateral pool comprises legacy nonconforming loans, a
significant percentage of which are interest-only loans (86.9%),
with maturity concentrations in 2027 and 2032. This, in our view,
exposes both the class D1 and E1 notes to back-end losses. We
have therefore diverged from our cash flow results and raised to
'BBB+ (sf)' from 'BBB (sf)', and to 'BB+ (sf)' from 'BB (sf)' our
ratings on the class D1 and E1 notes, respectively."

Moorgate Funding 2014-1 is a U.K. nonconforming RMBS transaction
with collateral comprising a pool of first-ranking mortgages over
owner-occupied and buy-to-let properties.

  RATINGS AFFIRMED

  Moorgate Funding 2014-1 PLC
  Class       Rating
  A1          AAA (sf)
  B1          AA (sf)

  RATINGS RAISED

  Class       To              From
  C1          A+ (sf)         A (sf)
  D1          BBB+ (sf)       BBB (sf)
  E1          BB+ (sf)        BB (sf)


RANGERS FC: Court Hearing Should Take Place in Oldco Dispute
------------------------------------------------------------
James Mulholland at The Scottish Sun reports that a senior judge
has ruled that a court hearing should take place to decide
whether Scots law chiefs breached the legal rights of a former
administrator of Rangers.

Lord Malcolm ruled on Sept. 6 that judges at the Court of Session
in Edinburgh should decide on whether Police Scotland and
prosecutors should pay compensation to businessman David
Whitehouse, The Scottish Sun relates.

The businessman and his colleague Paul Clark are suing the former
chief constable Philip Gormley and Lord Advocate James Wolffe QC
for GBP9 million, The Scottish Sun discloses.

The two men, who worked for financial services firm Duff &
Phelps, faced criminal proceedings following the takeover of
Rangers by Craig Whyte, The Scottish Sun recounts.

However, charges against the duo were later dismissed following a
hearing at the High Court in Glasgow in June 2016, The Scottish
Sun relays.

Both Mr. Whitehouse and Mr. Clark claim that prosecutors
initiated and pursued a wrongful prosecution against them and
there was no evidential basis for the charges brought against
them, The Scottish Sun states.

Lawyers acting for the Lord Advocate claimed that he has absolute
immunity from being sued in a civil court, The Scottish Sun
notes.

The matters were discussed earlier this year during a debate at
the Court of Session, The Scottish Sun recounts.  Lawyers for
Mr. Whitehouse claimed their client's human rights were breached
and that the police should pay their client compensation,
according to The Scottish Sun.

On Sept. 6, in a written judgment issued at the Court of Session,
Lord Malcolm ruled that the Lord Advocate did enjoy immunity from
being sued in a civil court, The Scottish Sun discloses.

However, he ruled that a hearing should take place some time in
the near future into the claims that Mr. Whitehouse's human
rights were breached by prosecutors when he was arrested, The
Scottish Sun notes.

According to The Scottish Sun, Lord Malcolm also ruled that the
hearing should also consider whether the police exceeded their
powers and acted maliciously in their investigation into
Mr. Whitehouse.

The hearing will take place alongside another set of proceedings
dealing with Mr. Clark's claims, The Scottish Sun states.

The club later went into liquidation before being sold to a
consortium led by Charles Green, The Scottish Sun recounts.


THOMSON REUTERS: Moody's Assigns B3 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a first-time B3 Corporate
Family Rating and B3-PD Probability of Default Rating to
Financial & Risk US Holdings, Inc., a US-based second-tier
holding company that will own the assets of Thomson Reuters
Corporation's (Baa2 review for downgrade) Financial & Risk (F&R)
unit. In connection with this rating action, Moody's assigned a
B2 rating to Refinitiv's proposed senior secured credit
facilities, B2 rating to the proposed senior secured notes and
Caa2 rating to the proposed senior unsecured notes. The rating
outlook is stable.

Thomson Reuters Corporation's ("TRI" or the "parent") plans to
carve out F&R, its largest division comprising the financial
information, analysis and risk businesses. The parent will retain
a 45% ownership interest in the company while private equity
funds managed by The Blackstone Group, CPP Investment Board
(CPPIB) and GIC (collectively the "Blackstone Consortium" or
"sponsors") will purchase 55% of the company via a leveraged
buyout (LBO) valuing F&R at approximately $20 billion. Proceeds
from the issuance of $13.5 billion of US dollar denominated and
euro denominated debt plus $3.025 billion of cash equity from the
Blackstone Consortium, $2.475 billion of rollover equity from TRI
and $1 billion of perpetual PIK preferred equity (with a 14.5%
annual dividend) will be used to finance the transaction plus
estimated transaction fees, expenses and opening cash to
Refinitiv's balance sheet. Following the 55% majority stake sale,
TRI will receive gross cash proceeds in the form of a dividend
totaling approximately $17 billion (subject to purchase price
adjustments) from Refinitiv.

Following is a summary of the rating actions:

Ratings Assigned:

Issuer: Financial & Risk US Holdings, Inc.

Corporate Family Rating -- B3

Probability of Default Rating -- B3-PD

$ 750 Million Senior Secured Revolving Credit Facility due 2023 -
- B2 (LGD3)

$5,500 Million Senior Secured Term Loan B (USD) due 2025 -- B2
(LGD3)

$2,500 Million Senior Secured Term Loan B (EUR) due 2025 -- B2
(LGD3)

Up to $2,000 Million Senior Secured Notes (USD) due 2026 -- B2
(LGD3)

Up to $1,000 Million Senior Secured Notes (EUR) due 2026 -- B2
(LGD3)

Up to $1,800 Million Senior Unsecured Notes (USD) due 2026 --
Caa2 (LGD6)

Up to $ 700 Million Senior Unsecured Notes (EUR) due 2026 -- Caa2
(LGD6)

Outlook Actions:

Outlook, Stable

The assigned ratings are subject to review of final documentation
and no material change to the size, terms and conditions of the
transaction as advised to Moody's.

RATINGS RATIONALE

The B3 CFR reflects Refinitiv's: (i) elevated pro forma financial
leverage; (ii) competitive challenges that historically produced
flat to low-single digit organic revenue growth; (iii) debt-heavy
balance sheet at a time when business risk is increasing; (iv)
and limited EBITDA growth prospects near-term. The B3 rating also
considers Refinitiv's: (i) leading global market positions across
its financial information, analysis and risk market segments;
(ii) meaningful recurring revenue base; (iii) relatively high
customer retention levels; and (iv) good geographic diversity.
The rating also takes into account minimal execution risk to the
cost savings plan offset by near-term costs to achieve future
savings.

Pro forma total debt to EBITDA of approximately 7.6x on a GAAP
basis as of June 30, 2018 (incorporating Moody's standard and
non-standard adjustments that exclude certain one-time expenses
and non-recurring costs to normalize EBITDA) or 7.2x pro forma on
a non-GAAP basis (Moody's adjusted, including its estimate for
net cost savings to be realized in the first year after
transaction close) is high for the rating category compared to
median leverage of 6.6x for B3-rated issuers. Nevertheless,
Moody's believes the business model can accommodate a more
leveraged capital structure due to Refinitiv's good revenue
visibility, solid EBITDA margins and its expectation for positive
free cash flow generation.

The rating reflects the historical sub-par organic revenue growth
that ranged from -1% to +1% compared to Refinitiv's principal
competitors who consistently produced higher organic revenue
growth in the 5-10% range. Refinitiv's growth has been impacted
by pricing pressures from European bank customers' cost reduction
measures and retrenchment, the rise of passive investing at the
expense of active investing and a fast evolving technology
landscape prompting clients to increasingly transition to lower-
cost cloud based applications. Refinitiv's EBITDA margins are
below peers, suggesting the absence of pricing power and limited
ability to achieve meaningful share gains.

Moody's believes the parent's historical capital allocation
strategy resulted in Refinitiv's under-investment in new
industry-leading products relative to peers and late entry into
or absence from growing market segments. This caused Refinitiv to
fall behind and experience market share losses to competitors who
invested much earlier in technology and product innovation.
Moody's expects Blackstone will help facilitate better investment
allocation and focus, however Moody's believes Refinitiv will
trail its competitors for at least the foreseeable future.
Moreover, the sizable debt load and interest expense burden will
constrain Refinitiv's ability to make R&D investments comparable
to peers, in its opinion. Targeted growth areas include data
platform (cloud-enabled non-real-time data), venues &
transactions (wealth management and brokerage processing
solutions) and risk (know-your-customer as a service). While the
data platform unit is sizable and growing in the mid-single
digits, growth is offset by continuing weakness in desktops.
Further, venues & transactions and risk collectively account for
only 22% of revenue and Moody's does not project growth in these
areas to meaningfully contribute to companywide growth over the
rating horizon given the need to invest in and develop next
generation products and services to upsell to clients.

The rating is further constrained by increasing competitive
challenges from industry players amassing scale via consolidation
and entrants offering new technology solutions and niche content,
that have gradually chipped away at Refinitiv's number one and
number two market positions. According to Moody's analysis,
Refinitiv has lost share in desktops (Eikon), data platform and
electronic trading. The desktop business, which represents around
36% of Refinitiv's revenue (albeit declining), is susceptible to
economic downturns as clients are more likely to reduce their
Eikon terminal count or renew subscriptions at lower price points
due to budget constraints. Moody's also notes Refinitiv's
transaction-based business (~17% of revenue) is dependent on
capital markets activity and can fluctuate from quarter to
quarter between positive and negative growth, influencing
Refinitiv's overall organic revenue growth rates.

Moody's understands that Refinitiv's new owners have developed a
robust cost reduction strategy. Moody's notes that the full
impact of planned cost synergies is not instantaneous, requiring
up to three years for full realization. One-time cumulative
carve-out costs to achieve future cost savings will be sizable
and nearly offset realized savings over the near-term, thus
impacting EBITDA growth and Refinitiv's ability to de-lever
swiftly over the rating horizon.

Since the $8 billion in term loans will be structured with 1%
annual amortization and an excess cash flow sweep that first
becomes applicable in fiscal 2020, near-term de-leveraging via
meaningful debt reduction is unlikely. As such, Refinitiv will
need growth to de-lever. However, Moody's expects growth
prospects over the short-term to be lackluster due to the absence
of focused investment in prior years. Further, well-intended R&D
investments and M&A under Blackstone's stewardship will consume
cash flow and require several years to produce organic revenue
growth comparable to peers.

The rating further reflects the substantial intangible assets
following the company's separation and LBO, and lack of operating
history as a standalone entity. It also captures event risks,
such as M&A or a potential dividend recapitalization (though
negligible over the near-term) related to ownership by its
sponsors.

Support for the B3 rating is bolstered by Refinitiv's leading
global market positions across its financial information,
analysis and risk market segments, where it maintains #1 or #2
market positions. This includes #1 positions in real-time data,
non-real-time financial data, FX dealer-to-client (D2C) trading,
fixed income D2C trading via its 54% owned Tradeweb platform and
risk solutions; and #2 positions in desktop services, FX dealer-
to-dealer trading and brokerage processing solutions.

The B3 CFR also considers Refinitiv's good revenue visibility
arising from a high percentage of subscription-based recurring
revenue (~85% of total) and relatively high customer retention
rates at ~89% (~93% for top 32 accounts). According to
management, 100% of relationships have been retained over the
past five years with customers spending $6 million or more per
annum. Good geographic diversification is also reflected in the
B3 rating (Americas -- 41%, EMEA -- 40% and Asia-Pacific -- 19%)
combined with good customer diversification (no single customer
accounts for more than 3% of revenue; top 25 customers account
for 27% of revenue). Increasing buy-side penetration (~44% of
revenue compared to 37% in 2012) and growth in the data platform
business, which is integrated into financial institutions'
systems and work flows, have created a loyal customer base.

Refinitiv's Eikon per terminal cost is lower than Bloomberg's,
however this is likely due to its less extensive data sets and
analytical features, in Moody's opinion. Eikon "lite" offers
lower price points for specific use cases, allowing Refinitiv to
compete against lower-priced players like Money.net, retain
customers and provide opportunities to upsell new services and
products.

An additional positive attribute includes current EBITDA margins
in the 28-31% range (Moody's adjusted) with visible margin
improvement expected through cost savings. The sponsors are
stepping into an existing strategic plan that they have refined
and enhanced with minimal execution risk to Refinitiv's $650
million cost saving program, which will target previously
identified operational improvements. Cumulative cost savings of
$315 million are expected to be achieved in the first year after
transaction close given that affected cost areas have been fully
scoped out and execution is already underway. Management believes
it can reduce centralized corporate expenses from nearly $2
billion/annum that TRI currently allocates to F&R, to $1.7
billion/annum. Moody's also notes the Transition Services
Agreement (TSA) with the parent should be a net cash flow benefit
to Refinitiv, a credit positive.

Moody's believes that Blackstone's scale across its numerous
portfolio companies will enable Refinitiv to negotiate better
vendor pricing and help reduce capex by approximately $70
million/annum. Because Blackstone, CPPIB and GIC are key
participants in the financial community, Refinitiv's management
team believes it will be able to leverage relationships with
major exchanges and accelerate sales to sell-side clients and
hedge funds. Management also believes Blackstone can help
accelerate revenue growth and margin expansion via restructuring
programs that include technology optimization, product
improvements, go-to-market optimization and alternative data
offerings that cater to investors' growing demand for unique data
sources.

Despite a sizable interest expense burden, positive free cash
flow generation and good liquidity are expected (cash
distributions to the sponsors are not planned), supported by
access to a $750 million revolver. Moody's projects free cash
flow to adjusted debt of roughly 2.5% in 2019 and 4% in 2020.
While there is an ability to voluntarily reduce debt with free
cash flow, the company faces the need to quickly deploy cash
resources towards growth areas and M&A in order to remain
relevant in a rapidly changing industry that is increasingly
technology driven and more competitive.

Other Considerations

Financial & Risk (Cayman) Parent Ltd. will be the audited entity
issuing future annual and quarterly financial statements and will
guarantee the debt issued by Financial & Risk US Holdings, Inc.
The $13.5 billion of external debt issued by Financial & Risk US
Holdings, Inc. will be on-lent internally to several Refinitiv
subsidiaries via numerous inter-company debt obligations to
acquire TRI's intellectual property, assets and subsidiaries
under terms, rates and tenors closely matching the external debt.

Rating Outlook

In view of the high leverage, the stable rating outlook reflects
its expectation that Refinitiv will experience modest organic
revenue growth and timely execute its current restructuring plan,
with a focus on reducing operating costs to drive EBITDA and
margins higher thus decreasing financial leverage to 6.8x on a
GAAP basis (or 6.5x on a non-GAAP basis) by year end 2020 based
on its projections, barring additional debt incurrence. The
stable outlook also embeds its view that Refinitiv will cultivate
more focused capital spending, R&D and go-to-market strategies
under new ownership to maintain stable customer relationships
with the potential for deeper penetration into existing accounts
and new client wins over the long term.

What Could Change the Rating - Up

Ratings could be upgraded if Refinitiv demonstrates sustained
organic revenue growth in the mid-single digit range and EBITDA
expansion that leads to consistent and growing free cash flow
generation of at least 4% of total debt (Moody's adjusted) and a
sustained reduction in total debt to EBITDA leverage on a GAAP
basis to a level approaching 6x (Moody's adjusted). Refinitiv
would also need to exhibit prudent financial policies and a good
liquidity position to be considered for an upgrade.

What Could Change the Rating - Down

Ratings could be downgraded if Refinitiv's total debt to EBITDA
leverage on a GAAP basis is expected to be sustained above 8x
(Moody's adjusted) or free cash flow were to be sustained below
1% of total debt (Moody's adjusted). Ratings pressure could also
occur if the company is unable to achieve standalone cost savings
in a timely manner, market share erodes, liquidity deteriorates,
Refinitiv experiences sustained client losses or the company
engages in debt-financed acquisitions or shareholder
distributions resulting in leverage sustained above its downgrade
threshold.

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

With corporate offices in New York, NY, and London, UK, Financial
& Risk US Holdings, Inc. (to be renamed "Refinitiv US Holdings
Inc." upon transaction closing) is a US-based holding company
that will own the assets of Thomson Reuters Corporation's
Financial & Risk unit following its carve-out and subsequent sale
of a 55% majority stake to The Blackstone Group, CPP Investment
Board and GIC. TRI will continue to own 45% of Refinitiv. The
company provides financial information, security pricing,
analytics, risk management and compliance support tools that
enable financial market professionals to conduct research,
perform pricing and valuation, execute transactions and address
third-party risk. Pro forma revenue totaled $6.2 billion for the
twelve months ended June 30, 2018.


===================
U Z B E K I S T A N
===================


HAMKORBANK: Moody's Affirms B2 LT Deposit Rating, Outlook Pos.
--------------------------------------------------------------
Moody's Investors Service affirmed the B2 long-term local
currency deposit rating of Uzbekistan-based Hamkorbank and
changed the outlook to positive from negative. Concurrently, the
rating agency affirmed Hamkorbank's B2 long-term foreign currency
deposit rating and changed the outlook on this rating to stable
from negative. Moody's also affirmed Hamkorbank's Baseline Credit
Assessment (BCA) and adjusted BCA of b2, the bank's long-term and
short-term local and foreign currency Counterparty Risk Ratings
of B1/Not Prime, as well as its Not Prime short-term local and
foreign currency deposit ratings. Hamkorbank's long-term and
short-term Counterparty Risk Assessments (CR Assessments) of
B1(cr)/Not Prime(cr) were also affirmed.

RATINGS RATIONALE

According to Moody's, the change of Hamkorbank's ratings outlooks
reflects the fact that the bank's solvency metrics, specifically
its asset quality, profitability and capital, proved more
resilient to volatile operating conditions in Uzbekistan in the
aftermath of an almost 50% devaluation of the Uzbek soum against
US dollar in September 2017 compared to the rating agency's
expectations when changing the outlook on the bank's deposit
ratings to negative a year ago. Furthermore, now that the
country's macroeconomic environment gradually stabilizes, the
rating agency expects Hamkorbank's profitability to improve in
the next 12 to 18 months owing to the bank's recently increased
business volumes, its established relationships with
international financial institutions that provide the bank with
relatively cheap funding facilities, as well as the still low
expected credit losses. Overall, Moody's now expects Hamkorbank's
financial metrics to remain robust and better than those reported
by Uzbekistan's banking sector on average.

Over the next 12 to 18 months, Moody's expects Hamkorbank to
sustain good asset performance. This expectation holds despite
the past rapid growth of the bank's loan book, which may
temporarily mask a moderate degree of asset-quality
deterioration. In 2015-17, Hamkorbank reported average annual
loan growth of 40%, broadly in line with the sector average.
Nevertheless, several factors have shielded Hamkorbank's asset
quality from any substantial and/or abrupt deterioration after
the Uzbek soum devaluation and will continue to support the
bank's sound asset quality. These factors include the granular
composition of the bank's loan portfolio manly formed by micro-
loans, loans to small and medium-sized entities (SMEs) and loans
to individual entrepreneurs, that are relatively well-performing
in Uzbekistan; the bank's close match of loan currency with the
currency of the borrower's revenues; as well as Hamkorbank's long
track record and experience in its key lending products,
supported by consultancy, technical assistance and oversight from
its institutional shareholders, International Finance Corporation
(IFC, issuer rating Aaa stable) and the Dutch development bank
FMO, each of which holds a 15.32% stake in Hamkorbank.

As of year-end 2017, Hamkorbank's loans that are impaired or past
due by at least one day together accounted for less than 1% of
total gross loans, according to the bank's report prepared under
International Financial Reporting Standards (IFRS), whereas the
sector average problem loan ratio as of the same reporting date
was 2.6%. Hamkorbank's loan-loss reserves at 1.8% of gross loans
reported as of year-end 2017 under IFRS appear sufficient at the
moment.

In 2017, Hamkorbank reported strong IFRS net income of UZS132
billion, which translated into solid return on average assets of
2.8% and return on average equity of 28%, much stronger metrics
than those expected by Moody's in September 2017, thanks to
better asset quality. Some weakening in 2017 profitability
metrics was attributable to one-off foreign currency translation
losses stemming from Hamkorbank's short foreign currency
position, however, this effect will not repeat in 2018-19.

Moody's now expects Hamkorbank's revenue generation to improve in
the next 12 to 18 months and remain one of the strongest in
Uzbekistan. This will result from the bank's focus on high-
yielding retail, microfinance and SME lending financed either by
cheap customer deposits or by relatively cheap financing
facilities from international financial institutions provided to
Hamkorbank under numerous programmes targeting SMEs, individual
entrepreneurs and agri-business. In addition to an ample net
interest margin, Hamkorbank's profitability will benefit from
strengthening fee-generating capacity (with fee-and-commission
income expected to exceed 25% of total revenues in both 2018 and
2019) and low credit losses. As of year-end 2017, Hamkorbank's
ratio of tangible common equity (TCE) to total risk-weighted
assets was 14.0%, and Moody's expects the bank's capital metrics
to remain stable over the next 12 to 18 months, against a
backdrop of strong profit generation and some further business
expansion.

Hamkorbank's funding and liquidity positions will remain robust,
as they have historically been, supported by a stable and
committed core customer funding base, the bank's access to long-
term funding from a diversified number of international financial
institutions, as well as its ample liquidity cushion of around
30% of total assets and the quick turnover of the bank's granular
loan book.

OUTLOOK ON LONG-TERM FOREIGN CURRENCY DEPOSIT RATING

The outlook on Hamkorbank's B2 long-term foreign currency deposit
rating was changed to stable from negative. All Uzbek banks'
long-term foreign currency deposit ratings are capped at B2,
reflecting the foreign currency transfer and convertibility risks
in Uzbekistan.

WHAT COULD MOVE THE RATINGS UP / DOWN

Moody's could upgrade Hamkorbank's BCA and local currency deposit
rating in the next 12 to 18 months if the bank's asset quality
metrics remained strong, despite the seasoning of its rapidly
expanded loan book, while its profitability improved in line with
the rating agency's expectations, and the business expansion were
matched by a similar or higher pace of growth of the bank's
capital levels.

Hamkorbank's BCA and local currency deposit rating could be
downgraded, or the outlook on its long-term local currency
deposit rating might be revised to stable from positive, in case
the bank fails to sustain its strong solvency and liquidity
metrics in the medium- to long-term, in contrast with Moody's
current expectations.

LIST OF AFFECTED RATINGS

Issuer: Hamkorbank

Affirmations:

Adjusted Baseline Credit Assessment, affirmed b2

Baseline Credit Assessment, affirmed b2

Long-term Counterparty Risk Assessment, affirmed B1(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)

Long-term Counterparty Risk Ratings (Local and Foreign Currency),
affirmed B1

Short-term Counterparty Risk Ratings (Local and Foreign
Currency), affirmed NP

Long-term Bank Deposits (Local Currency), affirmed B2, outlook
changed to Positive from Negative

Long-term Bank Deposits (Foreign Currency), affirmed B2, outlook
changed to Stable from Negative

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

Outlook Action:

Outlook changed to Positive(m) from Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in August 2018.

Headquartered in the City of Andijan, Republic of Uzbekistan,
Hamkorbank reported -- as of the end of 2017 - total assets of
UZS5.4 trillion and total equity of UZS540 billion under audited
IFRS. Net IFRS profit earned in 2017 was UZS132 billion.


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


* Kevin Heverin Joins V&E's Restructuring Practice in London
------------------------------------------------------------
Kevin Heverin has joined Vinson & Elkins LLP as counsel in the
Restructuring and Reorganization practice.  He will reside in the
firm's London office.

Mr. Heverin joins V&E from White & Case LLP, where he gained
broad experience representing a range of stakeholders on all
aspects of complex restructurings, workouts, debt financings,
special situations investing and insolvency matters.  He has
completed secondments to the European Special Situations Group at
Goldman Sachs International and to the restructuring advisory
team at Morgan Stanley.

"Kevin has demonstrated a pragmatic approach to developing
creative strategies to address clients' complex legal issues,"
said Jeff Eldredge, Co-Head of V&E's Corporate Department. "His
broad range of experience is a great complement to the firm's
existing strengths in London, and we look forward to the role he
will play in the continued expansion of our global restructuring
capabilities."

Among his notable representations, Mr. Heverin was part of a team
acting for an ad hoc committee of bondholders on the
restructuring of an oil and gas group with interests in North
Africa, as well as a group of lenders on the restructuring of a
Danish shipping company.

"V&E's stellar corporate practice and strong client relationships
across a variety of sectors provide the perfect platform for me
to continue to grow my practice," Mr. Heverin said.  "The team's
strength across several key practice areas provides great
opportunity, including assisting clients with complex cross-
border restructurings and special situations investments.  I am
thrilled to join such a dynamic team."

V&E's Restructuring and Reorganization practice counsels debtors,
creditors, equity-sponsors and investors in all aspects of
complex corporate restructurings.  The team serves company
clients across multiple industries, including energy, shipping,
retail and health care, and works with practitioners across the
firm to address issues that may arise in the course of an in- or
out-of-court restructuring.

Vinson & Elkins LLP -- http://www.velaw.com-- is an
international law firm with approximately 700 lawyers across 15
offices worldwide.


* BOOK REVIEW: Long-Term Care in Transition
-------------------------------------------
Author: David B. Smith
Publisher: Beard Books
Paperback: 170 pages
List Price: US$34.95
Order your personal copy at
http://www.beardbooks.com/beardbooks/long-
term_care_in_transition.html
This book is an invaluable reading for health care professionals
139
involved in the management of nursing homes. It includes lessons
learned from the regulatory experience for the health sector as a
whole.
Long-Term Care in Transition is a carefully documented case study
of the changes that took place in the regulation of nursing homes
in New York between 1975 and 1980.
It covers the history of the regulatory offensive in New York and
strategies of control and their effectiveness, touching on such
subjects as professional standards, rate setting, reimbursement,
criminal prosecution, and consumers.



                            *********

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 * * *