---

        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

         Wednesday, September 19, 2018, Vol. 19, No. 186


                            Headlines


G E R M A N Y

H&K AG: S&P Downgrades ICR to 'CCC+' Then Withdraws Rating


I R E L A N D

CVC CORDATUS VII: Moody's Assigns B2 Rating to Class F-R Notes
CVC CORDATUS VII: Fitch Assigns B- Rating to Class F-R Debt
HOLLAND PARK: Moody's Affirms B2 Rating on Class E Debt


I T A L Y

FIRE BC: S&P Assigns Preliminary 'B' ICR, Outlook Stable


K A Z A K H S T A N

TSESNABANK: S&P Lowers Long-Term Issuer Credit Rating to 'B'


N E T H E R L A N D S

NATWEST MARKETS: S&P Cuts Seven Subordinated Debt Ratings to 'BB'


R U S S I A

O1 PROPERTIES: S&P Keeps B- Issuer Credit Rating on Watch Neg.
CB AKSONBANK: Put on Provisional Administration, License Revoked
EXIMBANK OF RUSSIA: Moody's Hikes Long-Term Deposit Rating to Ba1


S P A I N

ABANCA CORPORACION: Fitch Rates Planned AT1 Capital Notes B(EXP)
ABENGOA SA: Seeks to Renegotiate EUR5 Billion of Debt


T U R K E Y

YESIL KUNDURA: Obtains Bankruptcy Protection After Financial Woes


U N I T E D   K I N G D O M

BRACKEN MIDCO1: Fitch Rates GBP350MM PIK Toggle Notes 'B(EXP)'
DEBENHAMS PLC: Belfast Needs Clarity on Future of Business
DEBENHAMS PLC: S&P Affirms 'B' Issuer Credit Rating, Outlook Neg.
INTERNATIONAL GAME: Moody's Assigns Ba2 Rating to $500MM Notes
INTERNATIONAL GAME: S&P Rates $500MM Secured Notes Due 2027 'BB+'

TRIBECA: New Owners Rescue Business From Liquidation


U Z B E K I S T A N

IPAK YULI: Moody's Alters Outlook on B2 Deposit Ratings to Stable


                            *********



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


H&K AG: S&P Downgrades ICR to 'CCC+' Then Withdraws Rating
-----------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating to 'CCC+'
from 'B-' on Germany-based defense contractor H&K AG.

S&P subsequently withdrew the ratings at H&K's request.

The outlook was negative at the time of withdrawal.

S&P said, "At the time of withdrawal, we had lowered the rating
on H&K to 'CCC+' because of tightening liquidity and covenant
headroom on the back of a weaker operating performance than we
had anticipated in our base case. In 2017, sales declined by 10%
to EUR182 million on delays in product deliveries and the slower-
than-planned reorganization of existing production and assembly
lines. H&K also faced weaker demand in the U.S. commercial market
combined with the ramping up of a new production facility to
cover that market. These factors also led to EBITDA declining
ahead of sales, by 37.9% year-on year, which translated into
EBITDA margins of 15.4% on an S&P Global Ratings-adjusted basis
compared to 22.5% in 2016.

"We do not expect the company to recover its operating
performance in the near term because its operational issues still
persist. In second-quarter 2018, sales improved to EUR63.4
million from EUR46.7 million compared to the same period in 2017.
EBITDA was EUR5.8 million, down 41.4% compared to second-quarter
2017. Operating cash flow remained negative. We expect EBITDA
margins to remain under pressure and free operating cash flows to
be negative for the year: that is, H&K will continue to burn
cash. We also believe that with leverage currently standing at
10x, and no prospects of improvement in 2018, the company's
financial position is vulnerable. Recovery depends on favorable
business, financial, and economic conditions. We view the group's
capital structure as unsustainable in the long term unless it
achieves an operational turnaround and significantly improves its
operating performance.

"We assess H&K's liquidity as weak over the next 12 months.
Overall, its liquidity needs will outweigh its sources. We
estimate cash balances currently at around EUR33 million,
declining in the next 12 months. The company does not have a
revolving credit facility and we don't see cash flow generation
being a reliable source of liquidity in the short term. Our
liquidity calculation includes EUR30 million shareholder loan
maturity in July 2019. We also think that H&K's ability to curb
its capital expenditure in the short term is limited because it
continues to ramp up its facilities in the U.S.

"We understand the company received a EUR30 million interest-free
bridge loan due in July 2019 from its shareholders. In addition,
we understand that an amendment to the senior facilities
agreement was agreed in terms of covenants with a higher leverage
threshold (undisclosed) and minimum cash of EUR10 million. This
should provide temporary relief; however, we still expect
liquidity to keep deteriorating in the absence of a near-term
recovery. We also acknowledge that third-party debt has long-
dated maturities: the EUR130 million loan matures in August 2022
and the EUR60 million bond in April 2023. We assume that the July
2019 maturity of the shareholder loan will be extended."

Ongoing challenges could result in a near-term financial covenant
breach, unless the company receives further shareholder support
in the form of a cash injection. We also see heightened risks
from weakening liquidity, as H&K does not have a revolving credit
facility and operations currently do not provide positive and
predicable cash flow to support third-party debt service with
recurring interest cash payments.

The outlook was negative at the time of withdrawal.

S&P said, "The negative outlook signaled that we would have
lowered the rating in the short term if performance and liquidity
had not recovered and the company continued to burn cash, further
weakening liquidity or breaching covenants. For us to have
considered a revision to stable, the company would have needed to
resolve its operational issues, as well as shown an ability to
generate positive FOCF to improve its liquidity position."


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


CVC CORDATUS VII: Moody's Assigns B2 Rating to Class F-R Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by CVC
Cordatus Loan Fund VII Designated Activity Company:

EUR 2,500,000 Class X Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 270,600,000 Class A-R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aaa (sf)

EUR 26,200,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 20,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
2031, Definitive Rating Assigned Aa2 (sf)

EUR 30,800,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned A2 (sf)

EUR 20,900,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Baa3 (sf)

EUR 27,500,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned Ba2 (sf)

EUR 13,200,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the notes address the expected loss
posed to noteholders. The definitive ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets, the 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, CVC Credit Partners Group Limited has sufficient
experience and operational capacity and is capable of managing
this CLO.

The Issuer will issue the refinancing notes in connection with
the refinancing of the following classes of notes: the Class A-1
Notes, Class A-2 Notes, Class B-1 Notes, Class B-2 Notes, Class C
Notes, Class D Notes, Class E Notes and the Class F Notes due
August 15, 2016 previously issued on August 31, 2016. On the
Original Closing Date, the Issuer also issued EUR45M of
Subordinated Notes. These will remain outstanding and their
maturity will be extended to match the maturity date of the
refinancing notes.

CVC Cordatus VII is a managed cash flow CLO. At least 70% of the
portfolio must consist of senior secured loans and up to 10% of
the portfolio may consist of unsecured senior loans, second-lien
loans, mezzanine obligations and high yield bonds. The underlying
portfolio is expected to be 100% ramped as of the refinancing
date.

CVC Credit Partners Group Limited 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 4.5-
year reinvestment period. Thereafter, purchases are permitted
using principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk and credit improved
obligations, and are subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. CVC Credit Partners Group
Limited'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 modelling assumptions:

Par Amount: EUR 440,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2735

Weighted Average Spread (WAS): 3.70%

Weighted Average Coupon (WAC): 4.40%

Weighted Average Recovery Rate (WARR): 42.5%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum of 10% of the pool would be domiciled in
countries with local or foreign currency country ceiling of A1 to
A3. The remainder of the pool will be domiciled in countries
which currently have a local or foreign currency country ceiling
of Aaa or Aa1 to Aa3. Given this portfolio composition, the model
was run without sovereign risk haircut on target par amounts as
further described in the methodology.


CVC CORDATUS VII: Fitch Assigns B- Rating to Class F-R Debt
-----------------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund VII DAC final
ratings, as follows:

Class X: 'AAAsf'; Outlook Stable

Class A-R: 'AAAsf'; Outlook Stable

Class B-1-R: 'AAsf'; Outlook Stable

Class B-2-R: 'AAsf'; Outlook Stable

Class C-R: 'Asf'; Outlook Stable

Class D-R: 'BBB-sf'; Outlook Stable

Class E-R: 'BBsf'; Outlook Stable

Class F-R: 'B-sf'; Outlook Stable

Subordinated notes: 'NRsf'

CVC Cordatus Loan Fund VII DAC is a securitisation of mainly
senior secured loans (at least 90%) with a component of senior
unsecured, mezzanine, and second-lien loans. Net proceeds of
EUR410.6 million from the notes are being used to redeem the
existing notes (excluding subordinated notes), with a new
identified portfolio comprising the existing portfolio, as
modified by sales and purchases conducted by the manager.

The subordinated notes were issued on the original issue date and
are not being offered again. The portfolio is actively managed by
CVC Credit Partners Group Limited. The CLO envisages a further
4.5-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
portfolio in the 'B' range. The Fitch-weighted average rating
factor (WARF) of the current portfolio is 32.06.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate of the current
portfolio is 64.36.

Diversified Asset Portfolio

The transaction includes two Fitch matrices the manager may
choose from, corresponding to the top 10 obligors, limited at 16%
and 23%. 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 39% with 15% for the top industry, 12%
for the second top industry and 12% for the third top industry.
These covenants ensure that the asset portfolio is not exposed to
excessive concentration.

Portfolio Management

The transaction features a 4.5-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch 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 four notches for 'BB'-rated notes and two
notches for other 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.


HOLLAND PARK: Moody's Affirms B2 Rating on Class E Debt
-------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by Holland Park CLO Designated Activity
Company:

EUR 58,750,000 Class A-2-R Senior Secured Floating Rate Notes due
2027, Upgraded to Aa1 (sf); previously on May 15, 2017 Assigned
Aa2 (sf)

EUR 30,000,000 Class B-R Senior Secured Deferrable Floating Rate
Notes due 2027, Upgraded to A1 (sf); previously on May 15, 2017
Assigned A2 (sf)

EUR 23,750,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2027, Upgraded to Baa1 (sf); previously on May 15, 2017
Assigned Baa2 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR 291,875,000 (current outstanding amount EUR 275.0 M) Class A-
1-R Senior Secured Floating Rate Notes due 2027, Affirmed Aaa
(sf); previously on May 15, 2017 Assigned Aaa (sf)

EUR 37,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2027, Affirmed Ba2 (sf); previously on Apr 29, 2014
Definitive Rating Assigned Ba2 (sf)

EUR 17,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2027, Affirmed B2 (sf); previously on Apr 29, 2014
Definitive Rating Assigned B2 (sf)

Holland Park CLO Designated Activity Company, issued in April
2014, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly European broadly syndicated first lien senior
secured corporate loans. The portfolio is managed by Blackstone /
GSO Debt Funds Management Europe Limited. The transaction's
reinvestment period ended in May 2018.

RATINGS RATIONALE

The rating action on the notes is primarily a result of the
transaction having reached the end of its reinvestment period in
May 2018. In light of reinvestment restrictions during the
amortisation period, and therefore the limited ability to effect
significant changes to the current collateral pool, Moody's
analysed the deal assuming a higher likelihood that the
collateral pool characteristics would maintain an adequate buffer
relative to certain covenant requirements. In particular Moody's
has put more weight on the actual portfolio metrics rather than
the portfolio covenants.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par of EUR 473.5 million and no principal proceeds
balance, defaulted par of EUR 5.6 million, a weighted average
default probability of 20.88% (consistent with a WARF of 2726
over a weighted average life of 5.06 years), a weighted average
recovery rate upon default of 46.17% for a Aaa liability target
rating, a diversity score of 44 and a weighted average spread of
3.83%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analysing.

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.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in July 2017. Moody's
concluded the ratings of the notes are not constrained by these
risks.

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

  -- Portfolio amortisation: The main source of uncertainty in
this transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager
or be delayed by an increase in loan amend-and-extend
restructurings. Fast amortisation would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

  -- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralisation levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analysed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


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


FIRE BC: S&P Assigns Preliminary 'B' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings said that it had assigned its 'B' preliminary
long-term issuer credit rating to Fire (BC) S.a.r.l., the parent
and owner of Italmatch Chemicals S.p.A., a specialty chemicals
manufacturer headquartered in Italy (together Italmatch). The
outlook is stable.

S&P said, "At the same time, we assigned our 'B' preliminary
long-term issue rating to the group's proposed EUR410 million
senior secured floating rate notes due 2024, to be issued by Fire
(BC) S.p.A. The preliminary recovery rating on the facilities is
'3', reflecting our expectation of 50%-70% recovery (rounded
estimate: 50%) 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. We understand that the proposed structure
does not, at this stage, include any shareholder loans, preferred
equity certificates or other debt-like instruments 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 private equity firm Bain Capital is acquiring Italmatch from
Ardian, and is refinancing its debt. The contemplated financing
for this acquisition comprises a EUR70 million revolving credit
facility and EUR410 million senior secured floating rate notes.
The transaction will be further supported by equity provided by
the private equity sponsor.

The rating on Italmatch primarily reflects S&P's view of the
group's strong niche positions and its longstanding relationships
with key customers, but also its relatively small size and highly
leveraged financial profile.

Headquartered in Genoa, Italy, Italmatch is specialized in the
manufacturing of performance additives mainly for the lubricant,
plastics, and water and oil markets. The products are used as
additives, or intermediates for additives to enhance the
performance of certain finished products, such as water or oil
solutions for industrial processes, industrial lubricants, and
electrical equipment. Italmatch was founded in 1997 through a
management buy-out of the phosphorus derivatives business of the
Saffa Group, based in Spoleto, Italy. The group gradually
expanded, notably through external growth, into a global chemical
specialty group in lubricant performance additives, flame
retardants, plastic additives, and performance products.

Over the years, Italmatch has developed niche market positions as
a leading player in the manufacturing of phosphonate-based water
antiscalants and corrosion inhibitors, with an estimated 25%
global market share. The group also displays a strong position in
the production of intermediates for engine oil antiwear and
antioxidant additives. This has enabled the group to establish
longstanding customer relationships, with which it can co-develop
products. S&P furthermore acknowledges Italmatch's exposure to
several end markets, like cleaning and industrial water
treatment, oil and gas, automotive, and mining industries.

The group's expansion over recent years has been possible through
external growth, with 10 mergers and acquisitions (M&A) in the
past six years. S&P believes that this activity has played an
integral part of the group's strategy and that it could undertake
further M&A activity in the future. As a result of this
expansion, the group now operates 17 manufacturing plants across
Europe, U.S., and Asia Pacific, as well as five research and
development centers. Mitigating our business risk assessment is
Italmatch's relatively small size compared with global specialty
chemicals leaders and some product concentration on phosphorus
derivatives.

S&P said, "In our view, after the buy-out, Italmatch will exhibit
a highly leveraged financial risk profile, and we expect adjusted
leverage to be more than 5x in the fiscal year ending Dec. 31,
2018. Italmatch is involved in expansionary projects, mainly in
China, to increase its production capacity and improve production
processes. We note that these additional capital expenditures
will weigh on free cash flow generation over the coming years.
Our financial risk assessment is also constrained by the group's
private equity ownership, which could result in an aggressive
financial policy. We adjust debt for the nonrecourse factoring
facility, with a utilized balance of around EUR15 million as of
Dec. 31, 2017.

"The stable outlook reflects our expectation that Italmatch will
continue to grow and post solid EBITDA margins while progressing
on its expansion plans. This could result in a moderate
deleveraging with adjusted debt to EBITDA of 5x-6x in 2019, which
is commensurate with the current rating.

"In our view, the probability of an upgrade over our 12-month
rating horizon is limited, given the group's high leverage and
potentially aggressive financial policy from the private equity
sponsor. We could raise the rating if the group were to post
adjusted debt to EBITDA sustainably below 5x and funds from
operations to debt consistently above 12%. In addition, a strong
commitment from the private equity sponsor to maintain leverage
at a level commensurate with a higher rating would be important
in any upgrade considerations.

"We could lower the rating if the group experienced severe margin
pressure or significant operational issues, resulting in adjusted
debt to EBITDA consistently above 6.5x and EBITDA interest
coverage below 3.0x. These credit metrics could worsen due to
large debt-funded acquisitions or unexpected shareholder returns.
A weakening in the liquidity position could also put pressure on
the company's creditworthiness."


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


TSESNABANK: S&P Lowers Long-Term Issuer Credit Rating to 'B'
------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Kazakhstan-based Tsesnabank to 'B' from 'B+'. The outlook is
negative. S&P also affirmed its 'B' short-term rating on the
bank.

Furthermore, S&P lowered its Kazakh national scale rating on the
bank to 'kzBB+' from 'kzBBB'.

S&P said, "We also lowered our long-term global scale and
Kazakhstan national scale issue ratings on the bank's senior
unsecured notes in line with the issuer credit ratings.

"The downgrade reflects our view that Tsesnabank is currently
facing liquidity pressures, driven by the outflow of clients'
funds at the end of August, that it compensated with Kazakhstani
tenge (KZT) 150 billion (about $400 million) from an emergency
funding from National Bank of Kazakhstan (NBK). Although the bank
has announced that the loan was partially repaid ahead of the
schedule and will be fully repaid in the near future, we believe
that the bank's liquidity position has structurally deteriorated
and is now weaker than peer banks' in Kazakhstan. We are
therefore revising our liquidity assessment downward to moderate
from adequate. We have also revised our assessment of the bank's
stand-alone credit profile (SACP) to 'b-' from 'b'.

"We consider the current level of liquidity makes the bank
vulnerable to negative market sentiments. Over the first seven
months of 2018, the bank's cash and interbank placements drop to
KZT81 billion from KZT135 billion, which we view as substantial
deterioration. Broad liquid assets covered short-term wholesale
funding by 1.3x as of June 30, 2018.

"We also consider that it will be increasingly difficult for
Tsesnabank to revert negative trends in profitability and asset
quality without additional support from the owners or from the
government. We see that the pressure on the bank's asset quality
has increased due to the recent tenge depreciation and the high
proportion of foreign-currency denominated loans in its loan book
(around 48%). At the same, we note that the share of foreign-
currency loans has significantly decreased over the past two
years (from 67% at end-2016). Another indication of portfolio
quality deterioration is the reduction in interest income
received in cash. The figure dropped to 67% for the first half of
2018 from 68% in 2017 and 83% the year before. We believe that
the bank will need to create additional provisions that will put
pressure on its profitability.

"At the same time, we acknowledge that the owners' recent
announcement of a KZT40 billion capital injection, the
government's intention to buyout a share of Tsesnabank's loan
book as part of the government's program to support the
agricultural sector, and more favorable conditions for the bank
regarding credit-linked funding sources could be supportive for
the stabilization of the bank's capital and liquidity positions.
However, the prospects of long-term viability of the bank's
business model still remains questionable, in our view.
The negative outlook reflects our concerns regarding potential
further pressures on Tsesnabank's liquidity and business position
in the next 12-18 months. We may downgrade the bank if we believe
that it will be unable to restore its liquidity and earnings
generation capacity over that period. A negative rating action
might also follow if we see that support from the owners or from
the government is not as forthcoming as we currently expect.

"We could revise the outlook to stable if the see that the
pressures on the bank's liquidity and asset quality have eased.
An outlook revision could follow an orderly clean-up of the
bank's balance sheet, or if we believe that the bank were able to
reset its business model in a way that allows for consistent
revenue generation and capital build-up."


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


NATWEST MARKETS: S&P Cuts Seven Subordinated Debt Ratings to 'BB'
-----------------------------------------------------------------
S&P Global Ratings corrected by lowering to 'BB' from 'BB+' seven
issue ratings on the dated subordinated debt issued by NatWest
Markets Plc (BBB+/Positive/A-2) and NatWest Markets N.V.
(BBB+/Positive/A-2). S&P also corrected by lowering to 'BB-' from
'BB' four issue ratings on the junior subordinated debt (upper
tier 2) issued by NatWest Markets Plc. NatWest Markets Plc is the
non-ring fenced bank of the Royal Bank of Scotland Group (RBSG),
and NatWest Markets N.V. is its European subsidiary.

S&P said, "We are lowering these 11 issue ratings to correct an
error, which occurred at the time of our most recent rating
action on RBSG and its subsidiaries on May 31, 2018. At that
time, we correctly affirmed the issuer credit ratings (ICR) on
NatWest Markets Plc and NatWest Markets N.V. and revised our
assessment of their status to RBSG as highly strategic from core,
but we failed to lower the issue ratings on their subordinated
and junior subordinated instruments." The rating action just
corrects this error. The creditworthiness of the two issuing
banks is unchanged.

For subsidiaries of a group, S&P rates nondeferrable subordinated
debt by subtracting from the ICR ('BBB+' in this case):

-- One notch for subordination (step 1a of our bank hybrid
    criteria);

-- One notch from the existence of a mandatory contingent
    capital clause, leading to common-equity conversion or a
    principal write-down, or both (step 1c); and

-- Two notches as per step 2b (removal of the notches for
    additional loss-absorbing capacity).

This leads to a 'BB' issue credit rating on the nondeferrable
subordinated debts (lower tier 2) issued by both banks.

For junior subordinated debt (which in this case consists solely
of legacy upper tier 2 instruments), the same rationale applies,
but S&P subtracts another notch (step 1b) as the security is a
regulatory capital instrument. This leads to a 'BB-' issue rating
on such debts issued by NatWest Markets Plc.

Only the debt listed below was affected.

NatWest Markets Plc:

-- GBP30.441 million variable-rate junior subordinated notes
   (ISIN: XS0116447599);

-- GBP18.813 mil variable-rate callable junior subordinated
    notes (ISIN: XS0138939854);

-- GBP21.175 million 6.20% junior subordinated callable notes
    (ISIN: XS0144810529);

-- GBP15.867 million 5.625% callable junior subordinated notes
   (ISIN: XS0154144132);

-- EUR300 million floating-rate subordinated notes (ISIN:
    XS0305575572); and

-- EUR144.4 million floating-rate index-linked medium-term
    subordinated notes (ISIN: XS0357281046).

NatWest Markets N.V.:

-- EUR250 million 4.70% subordinated bonds due June 10, 2019
    (ISIN: NL0000122505);

-- $165 million subordinated notes due Dec. 15,2019;

-- $71.832 million subordinated notes due Dec. 16, 2019;

-- $250 million 7.75% subordinated notes due May 15, 2023 (ISIN:
    US00077TAA25); and

-- $150 million 7.125% subordinated notes due 10/15/2093 (ISIN:
    US00077TAB08).

  Ratings List
  Downgraded
                                 To                 From
  NatWest Markets N.V.
   Subordinated                  BB                 BB+

  NatWest Markets Plc
   Subordinated                  BB                 BB+
   Junior Subordinated           BB-                BB


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


O1 PROPERTIES: S&P Keeps B- Issuer Credit Rating on Watch Neg.
--------------------------------------------------------------
S&P Global Ratings said that it was keeping its 'B-' long-term
issuer credit rating on Russian real estate investment company O1
Properties Ltd. on CreditWatch with negative implications.

S&P said, "Our 'CCC+' issue ratings on the senior unsecured notes
issued by O1 Properties Finance plc and O1 Properties Finance
JSC, and guaranteed by O1 Properties Ltd., also remain on
CreditWatch negative.

"In our view, O1 Properties remains exposed to significant
liquidity and refinancing risks. These risks have increased after
the ownership change announced in August 2018, which has
triggered a put option for O1 Properties' debt, including a $350
million Eurobond maturing in 2021. The controlling stake in O1
Properties, currently owned by Cyprus-based Riverstretch Trading
and Investments (RT&I), was previously pledged under a Russian
ruble (RUB) 25 billion (around $360 million) loan, originally
taken by the previous shareholder O1 Group from Credit Bank of
Moscow."

O1 Properties is seeking the bondholders' consent to waive the
change of ownership clause that triggers early redemption of the
Eurobond, and it expects to receive their decision by Oct. 22,
2018. S&P understands that if O1 Properties fails to obtain
consent, this may lead to a call for the immediate repayment of
the debt and a cross default of O1 Properties' other obligations.

S&P said, "We are also mindful of the negative impact of the
ruble's depreciation on O1 Properties' financial position. Since
June 1, 2018, the ruble has lost over 10% of its value. This has
resulted in an increasing currency mismatch between rental
income, part of which includes a ruble-U.S. dollar exchange rate
cap, and liabilities denominated in hard currency, which
represent around 93% of the company's portfolio (totaling around
$3.10 billion, including a $180 million liability related to a
loan, which was transferred in the first half of 2018 to O1
Properties', as a guarantor, from the former shareholder's
books). Furthermore, we expect the weakening of the ruble could
reduce the value of O1 Properties' asset portfolio, which was
worth around $3.7 billion at the end of 2017. These factors are
increasing the pressure on the company's already weak credit
metrics: The debt-to-debt-plus-equity ratio is about 85% and
EBITDA interest coverage is about 1x.

"In addition, we factor in that the absolute size of the
company's portfolio has reduced. In June this year, O1 Properties
sold two office buildings located in the Central Business
District of Moscow -- Avrasis and Zarechie -- valued at around
$200 million at year-end 2017. We understand that the decrease of
the portfolio's value due to the asset disposal has been partly
balanced by debt repayment. Nevertheless, we believe that having
a smaller portfolio restricts the company's cash generation
capacity and financial flexibility.

"Additionally, we have as yet no clarity on the new shareholder's
financial policy and creditworthiness. In our view, O1 Properties
does not currently have the capacity for shareholder
distributions, given its highly leveraged financial profile.

"We continue to rate O1 Properties' senior unsecured bonds one
notch below the issuer credit rating, since they rank behind a
significant amount of secured debt (more than 70% of total debt
as per our estimates). O1 Properties' capital structure consisted
of $2,133 million of secured debt and $930 million of unsecured
debt as of Dec. 31, 2017.

"We expect to resolve the CreditWatch within the next two months,
after obtaining more clarity on whether lenders will waive the
change of control clause, as well as information about the new
shareholder's strategy and financial policy.

"We would downgrade O1 Properties if it fails to obtain the
waiver by Oct. 22, and is required to repay its debt immediately
and in full. In addition, we may consider a downgrade if the new
shareholder adopts an aggressive financial policy or if
unfavorable market conditions further weaken the company's credit
metrics to levels no longer commensurate with the current rating.

"We would likely affirm our rating on O1 Properties if we receive
confirmation that the change of ownership will not trigger
acceleration of debt repayment and we are confident that the new
shareholder will implement a supportive financial policy
targeting deleveraging. An affirmation would be contingent on
there being no residual legal risks related to the previous
shareholder. For the rating to remain at 'B-', we would expect
the debt-to-debt-plus-equity ratio to be no higher than 75%."


CB AKSONBANK: Put on Provisional Administration, License Revoked
----------------------------------------------------------------
The Bank of Russia, by Order No. OD-2423, dated September 17,
2018, revoked the banking license of the Kostroma-based credit
institution Limited Liability Company Commercial Bank Aksonbank,
or CB Aksonbank LLC (Registration No. 680) from September 17,
2018.  According to its financial statements, as of September 1,
2018, the credit institution ranked 285th by assets in the
Russian banking system.

The business model of CB Aksonbank LLC was that of a captive
bank, with its key business line being financing of retail and
wholesale organizations associated with the bank owner's
business.  Currently, outstanding loans to these companies make
roughly 80% of the corporate loan portfolio of CB Aksonbank LLC;
given the nature of economic relations with the credit
institution, this resulted in a considerable share of dubious
assets on the bank's balance sheet.  The only source of funding
for these placements of the credit institution was funds
attracted from households. The due diligence check of credit risk
at the regulator's request established a substantial loss of
capital and entailed the need for action to prevent the credit
institution's insolvency (bankruptcy).  In these circumstances,
the bank's owner stayed away from solving the financial
organization's problems and declared no intention to take
measures to bring its operations back to normal.  The said
circumstances pointed to a real threat to creditors' and
depositors' interests from the operations of CB Aksonbank LLC.

The Bank of Russia had repeatedly (7 times over the last 12
months) applied supervisory measures against CB Aksonbank LLC
including two impositions of restrictions and one ban on
household deposit taking.

Under these circumstances, the Bank of Russia took the decision
to revoke the banking license of CB Aksonbank LLC.

The Bank of Russia takes this extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)", considering a real threat
to the creditors' and depositors' interests.

The Bank of Russia, by its Order No. OD-2424, dated September 17,
2018, appointed a provisional administration to CB Aksonbank LLC
for the period until the appointment of a receiver pursuant to
the Federal Law "On Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

CB Aksonbank LLC is a member of the deposit insurance system.
The revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by law.  The said Federal
Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but no more than a total of RUR1.4
million per depositor.

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


EXIMBANK OF RUSSIA: Moody's Hikes Long-Term Deposit Rating to Ba1
-----------------------------------------------------------------
Moody's Investors Service upgraded the long-term local-currency
deposit rating of Eximbank of Russia to Ba1 from Ba2, its
baseline credit assessment and adjusted BCA to b1 from b2.
Following the upgrade, Moody's changed the outlook on the local
currency deposit rating to stable from positive. In addition,
Moody's affirmed Eximbank of Russia's Ba2 long-term foreign
currency deposit rating, its Ba1 long-term local and foreign
currency Counterparty Risk Ratings, Ba1(cr) long-term
Counterparty Risk Assessment, short-term deposit and CRR ratings
of Not Prime, and the short-term CRA of Not Prime(cr).

RATINGS RATIONALE

The upgrade of the bank's local currency deposit rating to Ba1
from Ba2 is driven by the upgrade of its BCA to b1 from b2 and
reflects material improvements of the bank's key credit
indicators in recent years, in particular: asset quality,
profitability and funding profile. The bank's BCA is also
underpinned by historically strong capital buffers, but remains
constrained by its undiversified and highly concentrated business
franchise.

Eximbank of Russia 's status as the government owned and
specialised lender is essential to the bank's credit profile.
Since YE2015, Eximbank of Russia has gradually reduced its
problem loan ratio to around 7.0% as of June 30, 2018 from around
20% as of year-end 2015 and maintained sufficient level of
problem loans coverage by loan loss reserves of around 114% in H1
2018.

Moody's expect the bank's asset quality to remain solid and
broadly stable over the next 12-18 months because its development
strategy envisages lending to selective Russian non-commodity
exporters in different sectors. In addition, the substantial part
of Eximbank of Russia's loan portfolio (55% of gross loans as of
H1 2018) is insured by EXIAR (The Russian Agency for Export
Credit and Investment Insurance) and around 13% of gross loans
are guaranteed by the government of Russia ( Ba1, positive).

Eximbank of Russia's profitability has materially improved in
2017-H12018 and will remain robust over the next 12-18 months due
to increasing lending growth, strengthened net interest margin
and reduced credit cost. The bank posted a net profit of RUB1.3
billion for the first six months of 2018 (translated to
annualized RoAA of 2.6%) up from RUB502.0 million reported for
the whole 2017 (RoAA: 0.64%).

Eximbank of Russia's capital position will remain strong over the
next 12-18 months as it has been in the recent years, supported
by internal capital generation and external capital support in
case of need. The bank's most recently reported regulatory Tier 1
capital ratio (N1.2) and total capital adequacy ratio (N1.0)
stood high at around 21% and 27.5% respectively at August 1,
2018.

Since 2015, the bank has also improved its funding profile,
reducing reliance on market funding and maintained a solid buffer
of liquid assets -- around 30%. As of the end of June 2018, the
bank's funding base largely comprised of customer account (56% of
total liabilities), government funds and interbank loans (16% of
total liabilities ), and debt issued (18% of total liabilities).

GOVERNMENT SUPPORT

Eximbank of Russia's global local-currency deposit rating of Ba1
incorporates a very high probability of government support, which
is based on (1) the Russian government's ultimate control over
Eximbank of Russia executed via Vnesheconombank (VEB; Ba1,
positive) and EXIAR, (2) the bank's strategic importance to the
Russian government, and (3) a track record of the government's
strong capital and funding support already provided to the bank
in previous years. Moody's expects that Eximbank of Russia, in
case of need, will receive support directly from the Russian
government or via VEB and EXIAR. This support consideration
results in a three notches of uplift from its BCA of b1.

STABLE OUTLOOK

The stable outlook on Eximbank of Russia ratings reflects Moody's
expectations of the bank's stable performance over the next 12-18
months.

WHAT COULD MOVE THE RATINGS UP / DOWN

Foreign currency deposit rating of Ba2 will be upgraded if
country's ceiling is raised. The BCA could be upgraded if the
bank continues its conservative growth strategy, maintains strong
solvency, liquidity and funding profiles and reduces reliance on
external support. Eximbank of Russia's deposit ratings could be
downgraded in the event of any negative action on the
government's rating, as well as reassessment of the current
probability of government support. Its BCA could be downgraded in
case of material deterioration of the bank's solvency or
liquidity profiles.

LIST OF AFFECTED RATINGS

Issuer: Eximbank of Russia

Upgrades:

Adjusted Baseline Credit Assessment, upgraded to b1 from b2

Baseline Credit Assessment, upgraded to b1 from b2

Long-term Bank Deposits (Local Currency), upgraded to Ba1 Stable
from Ba2 Positive

Affirmations:

Long-term Counterparty Risk Assessment, affirmed Ba1(cr)

Short-term Counterparty Risk Assessment, affirmed NP(cr)
Long-term Counterparty Risk Ratings (Local and Foreign Currency),
affirmed Ba1

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

Long-term Bank Deposits (Foreign Currency), affirmed Ba2 Stable

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

Outlook Actions:

Outlook changed to Stable from Positive(m)

PRINCIPAL METHODOLOGY

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


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


ABANCA CORPORACION: Fitch Rates Planned AT1 Capital Notes B(EXP)
----------------------------------------------------------------
Fitch Ratings has assigned ABANCA Corporacion Bancaria, S.A.'s
(Abanca, BB+/Positive/bb+) planned additional Tier 1 (AT1)
capital notes an expected rating of 'B(EXP)'.

The assignment of the final rating is contingent upon final
documents conforming to the information already received.

KEY RATING DRIVERS

The notes are CRD IV-compliant perpetual, deeply subordinated,
fixed-rate resettable AT1 debt securities. The notes have fully
discretionary non-cumulative interest payments and are subject to
partial or full write-down if any of the bank's standalone or
consolidated, or ABANCA Holding Financiero, S.A's (AHF; topco)
common equity Tier 1 (CET1) ratios fall below 5.125%. The
principal write-down can be reversed and written up at full
discretion of the issuer if a positive consolidated net income is
recorded.

The rating assigned to the securities is four notches below
Abanca's 'bb+' Viability Rating (VR), in accordance with Fitch's
criteria for assigning ratings to hybrid instruments. This
notching comprises two notches for loss severity in light of the
notes' deep subordination, and two notches for additional non-
performance risk relative to the VR given fully discretionary
coupons and a high write-down trigger.

Fitch expects the non-payment of interest on this instrument will
occur before any of the bank, the group, or the topco breaches
the notes' 5.125% CET1 write-down trigger, most probably when
Abanca's or AHF's capital ratios approach their supervisory
review and evaluation process requirement set at 11.375% for
2018. Abanca's consolidated phased-in CET1 ratio was 14.66% at
end-June 2018, providing the bank with a buffer from the write-
down trigger. Given this, and Fitch's expectations for each
entity's capital ratios, Fitch has limited the notching for non-
performance to two notches.

RATING SENSITIVITIES

[The AT1 notes' expected rating is primarily sensitive to changes
in Abanca's VR. The rating is also sensitive to changes in their
notching from Abanca's VR, which could arise if Fitch changes its
assessment of the probability of their non-performance relative
to the risk captured in the VR. This may reflect a change in
capital management in the group or an unexpected shift in
regulatory buffer requirements, for example.

Under Fitch's criteria, a one-notch upgrade of the AT1 instrument
would be conditional upon a two-notch upgrade of Abanca's VR.


ABENGOA SA: Seeks to Renegotiate EUR5 Billion of Debt
-----------------------------------------------------
Katie Linsell and Antonio Vanuzzo at Bloomberg News report that
Abengoa SA is seeking to renegotiate its debt less than two years
after signing a deal with creditors to fend off bankruptcy.

According to Bloomberg, a person familiar with the matter said
the Spanish renewable energy company has hired Lazard as its
financial adviser and a group of its creditors have appointed
Houlihan Lokey.

The company is seeking to restructure about EUR5 billion (US$5.8
billion) of debt, said the people, who asked not to be identified
because it's private, Bloomberg relates.

The Seville, Spain-based company avoided becoming the country's
largest corporate insolvency in 2016 when it reached
an agreement to restructure about EUR9 billion of debt, Bloomberg
recounts.  Abengoa filed for preliminary protection from
creditors a year earlier after failing to raise capital and
struggling under debt built up through years of overseas
expansion, Bloomberg notes.

Lenders who didn't accept the previous arrangement and suffered
97% losses, brought a successful legal case against Abengoa last
year, Bloomberg discloses.  The demands from those disgruntled
creditors amount to EUR142 million, Bloomberg relays, citing El
Confidencial.

Following Abengoa's first restructuring, a group of investors
including Elliott Management Corp., Centerbridge Partners and
Varde Partners became the company's largest shareholders after
providing more than EUR1 billion of new capital, according to
Bloomberg.

As part of the earlier agreement and viability plan, Abengoa is
repaying those investors with proceeds from selling stakes in
Atlantica Yield Plc, a holding company that operates wind and
solar farms, Bloomberg states.  According to Bloomberg, it has
raised US$953 million in two stake sales since last year and is
also seeking to sell a power plant in Mexico, according to its
earnings reports.



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


YESIL KUNDURA: Obtains Bankruptcy Protection After Financial Woes
-----------------------------------------------------------------
Ahval, citing Hurriyet newspaper, reports that Yesil Kundura, one
of Turkey's oldest shoe brands, has been granted bankruptcy
protection on Sept. 17.

According to Ahval, Huseyin Kizanlikli, the CEO of Yesil Kundura,
said that they had been having problems in short-term payments
due to recent interest rate hikes and the Turkish lira's slide
against foreign currencies.

Yesil Kundura is also known for selling foreign shoe brands like
Caterpillar, Harley Davidson, Hummel, and Hush Puppies,
Ahval discloses.


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


BRACKEN MIDCO1: Fitch Rates GBP350MM PIK Toggle Notes 'B(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned Bracken Midco1 plc's (Midco1) GBP350
million of new PIK Toggle notes an expected rating of 'B(EXP)'.
At the same time, the agency has affirmed Midco1's Long-Term
Issuer Default Rating (IDR) at 'BB-', Together Financial Services
Ltd's (Together) Long-Term IDR at 'BB', Together's Short-Term IDR
at 'B' and Jerrold Finco plc's (Finco) senior secured debt rating
at 'BB'. The Outlook on the Long-Term IDRs is Stable.

The final rating of the PIK Toggle notes is contingent on the
receipt of final documents conforming to information already
received.

Together is a UK specialist mortgage provider, offering both
retail and commercial purpose loans to market segments under-
served by mainstream lenders. Midco1 is a holding company,
established as part of Together's 2016 buyout of former minority
shareholders. The rating actions follow Together's announcement
of plans to refinance debt relating to the buyout. The
transaction replaces Midco1's existing GBP220 million of PIK
Toggle notes (rated 'B') and GBP100 million of unrated PIK notes,
which are currently above Midco1 in the group ownership
structure, with GBP350 million of PIK Toggle notes at the Midco1
level. The net GBP30 million increase in funding allows for
payment of fees, accumulated PIK interest and a small shareholder
dividend.

KEY RATING DRIVERS

IDRS - TOGETHER AND MIDCO1

When calculating Together's leverage, Fitch adds Midco1's debt to
that on Together's own balance sheet, regarding it as effectively
a contingent obligation of Together. Midco1 has no separate
financial resources of its own with which to service it, and
failure to do so would have considerable negative implications
for Together's own creditworthiness. However, Fitch excludes the
current GBP100 million of PIK notes from the leverage of both
companies in the light of their non-cash payment features and
deeper structural and contractual subordination. As the full
GBP350 million of new notes will be issued by Midco1, this
increases the total debt within its leverage calculations for
both Together and Midco1 by GBP130 million from the GBP220
million held previously. However, it also extends debt maturity,
and is expected to yield coupon savings.

Together has traded profitably over a long period while paying
negligible dividends to its owner (beyond the need since 2016 to
service Midco1's interest) and its reported equity at end-FY18
therefore constitutes principally retained earnings. Fitch
includes subordinated shareholder funding of GBP43 million, but
deducts intangibles of GBP8.3 million in arriving at tangible
equity of GBP703.6 million. In conjunction with end-FY18 debt
(inclusive of Midco1) of GBP2.4 billion, this gives a debt-to-
tangible equity ratio of 3.5x, rising to 3.6x on a pro forma
basis when taking into account the pending GBP130 million debt
increase. When assessing leverage, Fitch has revised the way it
has calculated leverage compared to prior years where it both
added Midco1's debt to Together's borrowings and deducted it from
equity, which the agency now views as overly conservative.

At the Midco1 level, where a full accounting consolidation would
result in the value of its notes being offset against equity, a
debt-to-tangible equity ratio of around 4.8x at end-FY18 rises to
around 6.8x on a pro forma basis for the planned issuance. This
weaker position is reflected in Fitch's notching of Midco1's IDR
from Together's, to whose creditors its own are structurally
subordinated. The current sound profitability and headroom within
Together's restricted payment basket under the terms of Finco's
senior secured notes limits the IDR differential between the two
companies to one notch.

The IDRs also continue to reflect Together's concentration of
activities within UK specialist mortgage lending, a segment
characterised by higher arrears and loan servicing requirements
relative to high street lenders, and the progress made by the
group in recent years in diversifying its funding sources and
maturities, and in strengthening senior management resources
within an improved governance structure.

The Stable Outlook on Together's Long-Term IDR reflects Fitch's
view that Together should continue to report adequate
profitability without substantially increasing leverage further.

FINCO - SENIOR DEBT

Finco's senior secured notes are guaranteed by Together, and
Fitch equalises their rating with Together's IDR as Fitch expects
average recoveries.

MIDCO1 - PIK TOGGLE NOTES

The notching between Midco1's IDR and the rating of the PIK
Toggle notes reflects Fitch's view of the likely recoveries in
the event of Midco1 defaulting. While sensitive to a number of
assumptions, this scenario would only be likely to occur in a
situation where Together is also in a much weakened financial
condition, as otherwise its upstreaming of dividends for Midco1
debt service would have been maintained. The subordinated rank of
the PIK Toggle notes would then place their holders in a weaker
position than Together's senior secured creditors for available
recoveries from the group's assets.

RATING SENSITIVITIES

TOGETHER - IDR

An upgrade would be likely to require upward re-evaluation of
Together's company profile. A significant increase in leverage,
or a fall in profitability, for example due to a deteriorating
operating environment adversely affecting asset quality and
liquidity, could prompt a downgrade.

FINCO - SENIOR DEBT

The rating of Finco's senior secured notes is primarily sensitive
to a movement in Together's IDR, with which Fitch equalises their
rating.

MIDCO1 - IDR AND PIK TOGGLE NOTES

Midco1's Long-Term IDR is primarily sensitive to changes in
Together's Long-Term IDR. Equalisation of the IDRs is unlikely in
view of Midco1's structural subordination.

The rating of the PIK Toggle notes is sensitive primarily to
changes in Midco1's IDR, from which it is notched, as well as to
Fitch's assumptions regarding recoveries in a default scenario.
Lower asset encumbrance by senior secured creditors could lead to
higher recovery assumptions and therefore narrower notching from
Midco1's IDR.


DEBENHAMS PLC: Belfast Needs Clarity on Future of Business
----------------------------------------------------------
Margaret Canning at Belfast Telegraph reports that it's been
claimed Belfast needs clarity on the future of department store
chain Debenhams and whether it will remain as anchor at Castle-
Court Shopping Centre.

According to at Belfast Telegraph, sportswear tycoon Mike Ashley,
a 30% shareholder in Debenhams and the owner of rival chain House
of Fraser, is reported to be blocking a cash-raising sale of its
Danish Magasin du Nord retail business.

Glyn Roberts, the chief executive of trade organization Retail
NI, urged Mr. Ashley to provide clarity on his long-term plans
for both House of Fraser in Belfast and the Debenhams chain,
Belfast Telegraph relates.

There are five Debenhams stores in Northern Ireland, Belfast
Telegraph discloses.

"We have a very unstable situation in Belfast already with
Primark and the last thing we need is more uncertainty," Belfast
Telegraph quotes Mr. Roberts as saying.  "Both stores do play an
important role as a driver of footfall.  It would be a huge loss
if Debenhams was to close but I think we are a long way off that
happening."

The Sports Direct boss is interested in forcing Debenhams into
administration so that he can buy it cheaply and merge it with
House of Fraser, Belfast Telegraph relays, citing the Sunday
Times.

Last week, it emerged that business advisory firm KPMG is now
advising Debenhams on how it could cut its rent bill and debt,
Belfast Telegraph notes.

The Sunday Times, as cited by Belfast Telegraph, said that a sale
of Magasin du Nord would help its finances in the short term.

According to Belfast Telegraph, an analyst told the newspaper:
"He will either want Debenhams to improve its performance
significantly or go bust so that he can buy it."


DEBENHAMS PLC: S&P Affirms 'B' Issuer Credit Rating, Outlook Neg.
-----------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'B' long-term issuer
credit rating on U.K. department store retailer Debenhams PLC.
The outlook remains negative.

S&P said, "At the same time, we affirmed our 'B' long-term issue
rating on the GBP225 million senior unsecured notes (of which
GBP200 million remain outstanding), in line with the issuer
credit rating. The recovery rating on these notes is unchanged at
'3', reflecting our expectation of average recovery (50%-70%;
rounded estimate: 60%) in the event of default.

Debenhams recently reiterated its liquidity position and earnings
guidance for the financial year ending Sept. 1, 2018 (FY2018),
while confirming it has no immediate plans to close stores,
despite challenging market conditions. S&P understands from
management that the company has not materially revised payment
terms with its suppliers so far, which it sees as supportive of
the group's liquidity position and its forecast of free operating
cash flow (FOCF) generation of at least GBP40 million from FY2019
onward.

S&P said, "That said, we think that Debenhams' operating
performance and cash flow generation remain weak and volatile in
the context of the company's very high lease-adjusted leverage. A
weakening of sentiment among the industry's suppliers and
consumers following the recent administration filing of one of
Debenhams' main competitors -- House of Fraser -- compounds these
risks, in our opinion.

"We believe there is an elevated risk of future earnings falling
short of our previous forecast and pressure building on working
capital, constraining reported FOCF generation. We now see the
company's headroom under the current rating level as very
limited, and any downward revision to our cash flow
expectations -- we currently forecast at least GBP40 million of
FOCF in FY2019 and FY2020 -- could lead us to downgrade
Debenhams. This could be due not only to weak operating
performance but also to potentially larger working capital
outflows in the next 12-24 months than we had previously
expected. In our forecast, we incorporate the supportive impact
on cash generation from Debenhams' commitment to a significant
reduction in capital expenditure (capex) and our expectation that
it will cease to pay dividends over the medium term.

"Given the above, we will review our expectations for FY2019 in
light of the company's full-year results publication in October
2018. Any further downward movement in our forecast could put
pressure on the current rating.

"Taking into account Debenhams' affirmation of its pre-
exceptional EBITDA guidance for FY2018 of about GBP157 million,
its meaningful undrawn capacity under its revolving credit
facility (RCF), and few loss-making stores, we do not expect
Debenhams to launch a company voluntary arrangement (CVA) process
imminently." However, further weakening of earnings and cash
flows could reduce the group's liquidity cushion. In contrast,
New Look and House of Fraser--rated peers, both of whom have
conducted CVAs in the last 12 months--both had significantly
higher leverage and much more acute liquidity concerns on account
of a lack of FOCF generation.

The long-term rating remains constrained by the fiercely
competitive nature of Debenhams' markets; the seasonality of its
cash flows; its high operational gearing and large store estate;
its exposure to changing fashion trends and consumer preferences;
and its high lease-adjusted leverage.

S&P said, "We believe that trading conditions for discretionary
goods retailers in the U.K. will remain extremely challenging
through the second half of 2018 and into early 2019 as consumer
confidence remains low. At the same time, significant discounting
from competitors -- including House of Fraser and John Lewis --
has weighed heavily on Debenhams' margins. Although not central
to our current forecast, we would likely view a sustained
reduction in capex as potentially harmful to the group's future
competitive standing, despite its significant investment in
recent years.

"We also note that if the group is not able to restore its
earnings to historical levels, it may find it difficult to
refinance its bank facilities in June 2020 -- ahead of its bond
maturities in the summer of 2021 -- on terms comparable to those
on the current instruments.

The long-term rating is supported by Debenhams' mid-market
position as a leading U.K. department store retailer, with an
established and fast-growing presence online. Debenhams' overall
credit profile also benefits from its modest financial debt,
which affords it additional financial flexibility such that it
can match both capex and dividends to earnings expectations. S&P
also views Debenhams' meaningful undrawn capacity under its RCF--
even through its peak borrowing periods--low cash interest
burden, and medium-term debt maturities as supportive of the
current rating.

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

-- Macroeconomic factors that influence discretionary goods
    retailers' performance, including real GDP growth, consumer
    confidence and consumption patterns, inflation, discretionary
    income, and the unemployment rate. S&P's assumptions for
    Debenhams reflect economic scenarios for the U.K., Ireland,
    and Denmark, the countries from which the group generates the
    vast majority of its earnings.

-- Moderate U.K. real GDP growth of 1.2% in calendar year 2018
    and 1.4% in calendar year 2019, along with lower consumer
    price inflation of 2.5% in 2018 and 1.9% in 2019 -- compared
     with 2.7% last year. We also expect a modest reduction in
     real consumption growth--to 1.0% in both 2018 and 2019 -- as
    households continue to reduce their spending in light of the
    uncertain economic outlook.

-- Continued overall underperformance in the U.K. discretionary
     retail sector in 2018 and 2019 relative to nominal
     consumption growth, reflecting the continued weakness in
     consumer confidence and the ongoing shift in shopping habits.

-- Further modest 1%-3% declines in statutory revenues in FY2018
    as growth in online and international sales fails to offset
    the decline in U.K. store sales. S&P said, "We expect the
    company's topline will level off from FY2019. A substantial
    reduction in absolute EBITDA in FY2018 as strategy-related
    exceptional expenses compound gross margin pressures. We
    expect reported EBITDA margins of 5%-6% in FY2018, compared
    with 8.1% last year. We expect margins will pick up in FY2019
    as the group's strategic and cost-saving initiatives bear
    fruit and exceptional expenses reduce."

-- Capex of up to GBP125 million-GBP135 million in FY2018, as
     per management's guidance. We expect a substantial reduction
     in capex to GBP65 million-GBP75 million in FY2019, as
     management looks to preserve cash in light of recent
     competitive pressures.

-- S&P said, "No further dividends in our forecast horizon
    beyond the GBP36 million already paid this year. We do not
     include the potential sale of Magasin du Nord in our
     forecast."

-- No material repurchases of the group's own debt in the
    capital markets.

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

-- Adjusted EBITDA of GBP330 million-GBP350 million in FY2018,
    increasing to GBP365 million-GBP385 million in FY2019
    (compared with GBP400 million in FY2017). These figures
    correspond to reported EBITDA, after exceptional expenses, of
    about GBP120 million-GBP130 million in FY2018 and GBP145
    million-GBP165 million in FY2019.

-- Adjusted debt to EBITDA of 7.5x-8.0x in FY2018, up from about
    6.5x in FY2017. We expect earnings growth in FY2019 will
    result in modest deleveraging toward 7.0x.

-- Adjusted funds from operations (FFO) to debt of 4%-7% in both
    FY2018 and FY2019.

-- Negative reported FOCF of up to GBP10 million in FY2018,
    before returning to positive levels of about GBP40 million-
    GBP50 million in FY2019 and FY2020. This reflects the group's
    commitment to a significant cut in capex and our expectation
    of no further dividends. Adjusted FOCF to debt of 2%-4% in
     FY2018 and 3%-5% in FY2019, before picking up to about 5%
     from FY2020.

-- Materially negative reported discretionary cash flow in
     FY2018 of up to GBP40 million, improving thereafter as FOCF
     grows and dividends are cut.

S&P Global Ratings-adjusted EBITDAR coverage (defined as reported
EBITDA after exceptional expenses and before rent, over cash
interest plus rent) of about 1.5x in FY2018, improving to about
1.6x in FY2019.

S&P said, "The negative outlook reflects our opinion that extreme
competitive pressures will continue to suppress Debenhams'
earnings and lead to higher volatility in its cash flows and
liquidity. It also reflects diminished headroom under the current
rating given the decreasing probability that the company will be
able to deliver material reported FOCF from FY2019, given that
the company's operating performance remains weak and volatile.

"We will be revisiting our expectations for FY2019 following the
company's full-year results announcement in October 2018. We
could lower the rating if we thought that Debenhams' liquidity
position had weakened due to, for example, an inability to
improve its earnings or a material change in payment terms with
its suppliers.

"We could also lower the rating in the next 12 months if
Debenhams' profitability failed to improve, calling into question
the group's ability to generate at least GBP40 million reported
FOCF annually.

"We would also consider a negative rating action if Debenhams'
leverage persistently crept up or its EBITDAR coverage weakened
further to below 1.5x. Likewise, we could downgrade Debenhams if
we thought the likelihood of the company closing a significant
number of stores, or launching a CVA, had increased.

"We could revise the outlook back to stable in the next 12 months
if Debenhams restored its reported FOCF such that it were
substantially and consistently positive, thereby enhancing
liquidity or allowing for debt reduction."

Any positive rating action would also be contingent on Debenhams
maintaining a robust competitive standing, sustainably
deleveraging from its currently elevated levels, and keeping its
EBITDAR coverage ratio above 1.5x.

S&P would also expect Debenhams' financial policy to remain
focused on maintaining a sustainably lower level of leverage,
supporting both future cash generation and a full and orderly
refinancing well in advance of its 2020 and 2021 debt maturities.


INTERNATIONAL GAME: Moody's Assigns Ba2 Rating to $500MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to International
Game Technology PLC's proposed $500 million senior secured notes
due 2027. The company's existing ratings, including the senior
secured notes rated Ba2, Ba2 Corporate Family Rating, Ba2-PD
Probability of Default Rating and SGL-2 Speculative Grade
Liquidity rating, are unchanged. The rating outlook is unchanged
at stable.

Proceeds from the proposed $500 million senior secured notes,
which will be pari passu with the company's existing debt, as
well as a draw on the company's revolving credit facility, will
be used to refinance the company's $600 million 5.625% notes due
2020, as well as pay related fees, expenses and premiums. The
transaction extends IGT's maturity profile and improves overall
financial flexibility, providing funds to facilitate the
refinancing of a significant part of its remaining 2020
maturities, while maintaining a good liquidity profile.

Assignments:

Issuer: International Game Technology PLC

Senior Secured Global Notes Assigned Ba2 (LGD3)

RATINGS RATIONALE

International Game Technology PLC's Ba2 Corporate Family Rating
benefits from its large and relatively stable revenue base, with
more than 80% achieved on a recurring basis, and high barriers to
entry. Further support is provided by the company's vast gaming-
related software library and multiple delivery platforms, as well
as potential growth opportunities in their digital, mobile
gaming, sports betting, and lottery products. IGT is also the
sole concessionaire of the world's largest instant lottery
(Italy), and holds facility management contracts with some of the
largest lotteries in the US. IGT is constrained by its material
exposure to less than favorable slot replacement demand trends in
the US as well as significant revenue concentration (about one-
third) coming from its Italian operations.

The stable rating outlook incorporates IGT's large recurring
revenue base and high barriers to entry, with the expectation for
revenue and EBITDA growth over the next 12-18 months. The outlook
also considers that free cash flow generation in 2018 will be
constrained due to the upfront fees associated with its Italy
contract renewal and that the company will continue to maintain
good liquidity.

A higher rating would require that IGT demonstrate sustainable
earnings growth through a combination of revenue and expense
improvements, as well as maintain a positive free cash flow
profile and debt/EBITDA below 4.0 times. Ratings could be
downgraded if it appears that IGT will fail to maintain
debt/EBITDA below 5.0 times.

International Game Technology PLC is a global leader in gaming,
from Gaming Machines and Lotteries to Interactive Gaming and
Sports Betting. The company operates under four business
segments: North America Gaming & Interactive, North America
Lottery; International, and Italy. The company's consolidated
revenue for the last twelve-month period ended June 30, 2018 was
approximately $5 billion. International Game Technology has
corporate headquarters in London, and operating headquarters in
Rome, Italy; Providence, Rhode Island; and Las Vegas, Nevada.

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


INTERNATIONAL GAME: S&P Rates $500MM Secured Notes Due 2027 'BB+'
-----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '3'
recovery rating to International Game Technology PLC's (IGT) new
$500 million senior secured notes due 2027. The '3' recovery
rating indicates S&P's expectation for meaningful recovery (50%-
70%; rounded estimate: 65%) for noteholders in the event of a
payment default.

The company plans to use the proceeds from these notes, along
with borrowings from its revolving credit facilities, to redeem
its $600 million 5.625% senior secured notes due 2020 and pay
accrued interest, tender premiums, and transaction fees and
expenses.

All of S&P's other ratings on IGT, including its 'BB+' issuer
credit rating, remain unchanged.

The proposed transaction does not change S&P's forecast for IGT's
leverage since it is largely a debt-for-debt refinancing.
However, the transaction will modestly improve the company's
maturity profile by extending a portion of its 2020 debt
maturities.

ISSUE RATINGS--RECOVERY ANALYSIS

Key analytical factors

Our simulated default scenario contemplates a default occurring
in 2023 because of a significant decline in the installed base of
the company's gaming machines due to a significant loss in market
share, the loss of one or more major lottery management
contracts, and/or a severe and sustained economic decline that
leads to a substantial drop in gaming machine yield and purchases
of new machines.

IGT's capital structure consists of $1.2 billion and EUR725
million in total revolving credit commitments, a EUR1.5 billion
term loan, and several secured notes tranches issued at IGT. In
addition, there are also three tranches of notes issued at IGT's
subsidiary, International Game Technology. All of the debt share
the same guarantors and the notes issued at International Game
Technology are also guaranteed by IGT. In addition, the
collateral for the debt is a pledge of stock in International
Game Technology and Lottomatica Holding S.r.l., a subsidiary of
IGT, and any intercompany loans in excess of $10 million. S&P
said, "Although the notes issued by International Game Technology
only benefit from its and its subsidiaries' stock and
intercompany notes, we do not view this limitation in the
collateral relative to the rest of the capital structure as
significant enough to warrant a distinction in recovery prospects
between the International Game Technology notes and the remaining
debt at IGT. We therefore assume that recovery prospects are
aligned for all of the debt in the capital structure."

S&P assumes the total revolving credit facility commitment is 85%
drawn at default.

Simplified waterfall

-- Emergence EBITDA: $1 billion
-- EBITDA multiple: 6.5x
-- Gross recovery value: $6.5 billion
-- Net recovery value after administrative expenses (5%): $6.2
    billion
-- Value available for secured debt: $6.2 billion
-- Secured debt: $9.2 billion
    --Recovery expectation: 50%-70% (rounded estimate: 65%)
Note: All debt amounts include six months of prepetition
interest.

  RATINGS LIST

  International Game Technology PLC
   Issuer Credit Rating          BB+/Stable/--

  New Rating

  International Game Technology PLC
   Senior Secured
    $500M Notes Due 2027         BB+
     Recovery Rating             3(65%)


TRIBECA: New Owners Rescue Business From Liquidation
----------------------------------------------------
Gillian Loney at insider.co.uk reports that new owners have
stepped in to save Glasgow and Edinburgh restaurant chain TriBeCa
from liquidation.

Puneet Gupta, Navdeep Basi and Suj Legha are investing GBP1
million in the existing restaurants, and hope to expand TriBeCa
into a nationwide franchise, insider.co.uk discloses.

According to insider.co.uk, Mr. Gupta told Glasgow Live: "We are
delighted to have kept TriBeCa's doors open and look forward to
supporting our existing franchisees, alongside growing the brand
nationally.  We plan to open another 15 units across Scotland
within the next couple of years."

The four Glasgow restaurants -- Dumbarton Road in Partick, Park
Road in Woodlands, Fenwick Road in Giffnock and Bell Street in
the Merchant City -- will continue to operate as TriBeCa,
insider.co.uk states.


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


IPAK YULI: Moody's Alters Outlook on B2 Deposit Ratings to Stable
-----------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on its B2 long-term local and foreign currency deposit
ratings on Uzbekistan-based Ipak Yuli Bank (IYB) and affirmed
these ratings. Concurrently, the rating agency affirmed IYB'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.
IYB's long-term and short-term Counterparty Risk Assessments (CR
Assessments) of B1(cr)/Not Prime(cr) were also affirmed.

RATINGS RATIONALE

The change in IYB's rating outlook to stable from negative
reflects the resilience of the bank's solvency metrics,
specifically its asset quality, profitability and capital, in the
context of the volatile operating conditions in Uzbekistan
following the depreciation of about 50% in the local currency
(Uzbek soum) against the US dollar in September 2017. Moody's
expects IYB's financial metrics to remain robust amid a growing
economy and a stabilized exchange rate.

IYB's problem loan ratio increased to 1.8% as of June 30, 2018
according to management data, up from 1.5% reported at the end of
2017 under International Financial Reporting Standards (IFRS).
The problem loan coverage by provisions at mid-2018 exceeded
200%. In addition, 10.2% of gross loans at year-end 2017 were
restructured, but not past due or impaired.

Moody's believes that the resilience of IYB's asset quality was
driven by several factors: (1) the granular composition of the
bank's loan portfolio, mainly formed by loans to small and
medium-sized entities (SME) and individual entrepreneurs, that
often relied on the parallel market exchange rate which was close
to the official exchange rate after the dramatic soum
depreciation; (2) the close match of loan currencies with the
currency of the borrower's revenues; as well as (3) IYB's strong
risk management and corporate governance, supported by
consultancy, technical assistance and oversight from its
institutional shareholders, in particular, Asian Development Bank
(ADB, issuer rating Aaa stable), which holds a 11.1% stake in
IYB. The rating agency expects that the bank's asset-quality
metrics will remain broadly flat over the next 12 to 18 months.

In 2017, IYB reported strong net income of UZS106 billion, which
translated into solid return on average assets of 3.8% and return
on average equity of 39%, much stronger metrics than those
expected by Moody's in September 2017, thanks to more resilient
asset quality. The rating agency expects elevated credit costs
through 2018 given the time lag effect from the soum depreciation
on the borrowers. However, robust pre-provision income will
outweigh the adverse impact from higher credit costs and result
in strong profitability over the next 12-18 months.

As of year-end 2017, IYB's tangible common equity (TCE) to total
risk-weighted assets (RWA) ratio was 12.3%, and Moody's expects
the bank's capital metrics to improve over the next 12 to 18
months thanks to strong internal capital generation along with
further business expansion. Although as of June 30, 2018, IYB
reported regulatory Tier 1 ratio and Total capital adequacy
ratios of 10.6% and 13.4%, respectively, which were close to the
minimum thresholds, Moody's considers IYB's solvency to be
relatively strong.

IYB's funding and liquidity positions will remain robust, as they
have historically been, supported by a stable customer funding
base, the bank's access to long-term funding from a diversified
number of international financial institutions, as well as
sufficient liquidity cushion of around 25% 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 IYB'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 change the outlook on bank deposit ratings to
positive or upgrade IYB's BCA and local currency deposit rating
in the next 12 to 18 months, if it observes improvements in the
bank's capital adequacy and asset quality, despite the seasoning
of its rapidly expanded loan book.

IYB'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 negative, if 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: Ipak Yuli Bank

Affirmations:

Adjusted Baseline Credit Assessment, Affirmed b2

Baseline Credit Assessment, Affirmed b2

Counterparty Risk Assessment, Affirmed B1(cr)

Counterparty Risk Assessment, Affirmed NP(cr)

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Affirmed B1

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

Short-term Deposit Rating (Local and Foreign Currency), Affirmed
NP

Long-term Deposit Rating (Local and Foreign Currency), Affirmed
B2 Changed To Stable From Negative

Outlook Actions:

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

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



                            *********

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 * * *