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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, October 19, 2018, Vol. 19, No. 208


                            Headlines


I R E L A N D

ADAGIO CLO V: Fitch Assigns B- Rating to Class F Debt
CARLYLE GLOBAL 2014-2: Fitch Gives B-(EXP) Rating to E-R Debt
HARVEST CLO XX: Moody's Gives (P)B2 Rating to EUR12MM F Notes
HARVEST CLO XX: Fitch Assigns B-(EXP) Rating to Class F Debt
HARVEST CLO XVI: Fitch Assigns B- Rating to Class F-R Debt

TORO EUROPEAN 2: Moody's Assigns B2 Rating to Class F Notes
TORO EUROPEAN 2: Fitch Assigns B- Rating to Class F-R Debt


I T A L Y

ASTALDI SPA: Rome Court Accepts Creditor Protection Filing
ITALY: European Commission Likely to Reject 2019 Budget Plan


K A Z A K H S T A N

ASIACREDIT BANK: S&P Withdraws CCC+ LT Issuer Credit Rating


M A L T A

VISTAJET MALTA: S&P Raises LT Issuer Credit Rating to 'B'


N E T H E R L A N D S

JUBILEE CLO 2016-XVII: Moody's Assigns B2 Rating to Cl. F Notes
JUBILEE CLO 2016-XVII: Fitch Assigns B- Rating to Class F-R Debt
STEINHOFF INT'L: Investors Agree to Suspend Litigation Until 2019


P O R T U G A L

AZORES: Moody's Raises LT Issuer Rating to Ba1, Outlook Stable
COMBOIOS DE PORTUGAL: Moody's Raises CFR to Ba1, Outlook Stable
INFRAESTRUTURAS DE PORTUGAL: Moody's Hikes CFR to Ba1


R U S S I A

INTERNATIONAL BANK: S&P Lowers Issuer Credit Ratings to 'D/D'
SOLLERS-FINANCE LLC: Fitch Hikes LT IDR to BB-, Outlook Stable
UGI INTERNATIONAL: Fitch Assigns BB+ IDR, Outlook Stable


U N I T E D   K I N G D O M

PATISSERIE VALERIE: Nov. 1 Meeting to Approve Share Issue Set
* UK: Growth in Risky Corporate Debt Splurge Echoes 2008 Crisis


X X X X X X X X

* EUROPE: Increased Competition to Spur Airline Bankruptcies
* BOOK REVIEW: Crafting Solutions for Troubled Businesses


                            *********



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I R E L A N D
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ADAGIO CLO V: Fitch Assigns B- Rating to Class F Debt
-----------------------------------------------------
Fitch Ratings has assigned Adagio V CLO DAC ratings, as follows:

Class X: 'AAAsf'; Outlook Stable

Class A: 'AAAsf'; Outlook Stable

Class B-1: 'AAsf'; Outlook Stable

Class B-2: 'AAsf'; Outlook Stable

Class C-1: 'Asf'; Outlook Stable

Class C-2: 'Asf'; Outlook Stable

Class D: 'BBB-sf'; Outlook Stable

Class E: 'BBsf'; Outlook Stable

Class F: 'B-sf'; Outlook Stable

Subordinated notes: 'NRsf'

Adagio V CLO DAC is the refinancing of a securitisation of mainly
senior secured obligations (at least 90%) with a component of
senior unsecured, mezzanine, and second-lien loans issued in
September 2016. Net proceeds from the notes are being used to
redeem the original notes, with a new identified portfolio
comprising the existing portfolio, as modified by sales and
purchases conducted by the manager. The portfolio is managed by
AXA Investment Managers Inc. The CLO envisages a 4.25-year
reinvestment period and an 8.5-year weighted average life (WAL).

Prior to the refinancing of the notes the transaction was below
par. There is no effective date rating event language in the
refinancing offering circular. Fitch received written
confirmation from the asset manager on the closing date that the
aggregate collateral balance including cash is at or above target
par and all portfolio profile tests, collateral quality tests and
overcollateralisation tests have been satisfied.

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 32.6.

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 65.9%.

Diversified Asset Portfolio

The transaction includes two Fitch matrices that the manager may
choose from, corresponding to top 10 obligors limited at 18% and
26.5%. These two matrices apply from the first payment date and
the manager is allowed to interpolate between these matrices.
Between closing and the first payment date a different matrix
applies, in which an additional fee of EUR750,000 is modelled, in
line with the transaction documentation. 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%.
These covenants ensure that the asset portfolio will not be
exposed to excessive concentration.

Portfolio Management

The transaction features a 4.25-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 four notches for the rated notes.

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

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

DATA ADEQUACY

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

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


CARLYLE GLOBAL 2014-2: Fitch Gives B-(EXP) Rating to E-R Debt
-------------------------------------------------------------
Fitch Ratings has assigned Carlyle Global Market Strategies Euro
CLO 2014-2 Designated Activity Company expected ratings as
follows:

EUR4 million Class X: 'AAA(EXP)sf'; Outlook Stable

EUR239.4 million Class A-1-R: 'AAA(EXP)sf'; Outlook Stable

EUR10.4 million Class A-2A-R: 'AA(EXP)sf'; Outlook Stable

EUR26.4 million Class A-2B-R: 'AA(EXP)sf'; Outlook Stable

EUR13.8 million Class B-1-R: 'A(EXP)sf'; Outlook Stable

EUR10 million Class B-2-R: 'A(EXP)sf'; Outlook Stable

EUR19.5 million Class C-R: 'BBB(EXP)sf'; Outlook Stable

EUR29 million Class D-R: 'BB(EXP)sf'; Outlook Stable

EUR11.7 million Class E-R: 'B-(EXP)sf'; Outlook Stable

EUR39.1 million subordinated notes: 'not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

The transaction is a cash flow collateralised loan obligation
(CLO) of mainly European senior secured obligations. Net proceeds
from the issuance of the notes will be used to redeem existing
notes, except the subordinated notes which will not be re-
offered, and whose maturity will be extended to 2031, in line
with refinancing notes. The portfolio, which consists of the
existing portfolio that is further modified by sales and
purchases managed by CELF Advisors LLP, will have a target par of
EUR389.3 million. The CLO features a 4.5-year reinvestment period
and an 8.5-year weighted average life.

The transaction's collateral balance, including cash, currently
is above the target par. There is no effective date rating event
language in the refinancing offering circular. The assignment of
final ratings will therefore be contingent to the aggregate
collateral balance including cash being at or above target par
and all portfolio profile tests, collateral quality tests and
overcollateralisation tests being satisfied on the closing date.
Otherwise Fitch may assign final ratings below the expected
ratings.

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch calculates the average credit quality of obligors in the
'B'/'B-' category. The weighted average rating factor (WARF) of
the current portfolio is 33.4, below the indicative covenanted
maximum 35.

High Recovery Expectations

At least 96% 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 weighted average recovery rating (WARR) of the
identified portfolio is 67.2%, above the minimum covenant at
64.9%.

Diversified Asset Portfolio

The transaction will include two Fitch test matrices
corresponding to the top 10 obligors limit at 18% and 26.5%. The
transaction also includes various concentration limits, including
the maximum exposure to the three largest Fitch-defined
industries in the portfolio at 40%. These covenants ensure that
the asset portfolio will not be 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'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, as well as to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par value and interest
coverage tests.

Different Waterfall Structure

The transaction has a slightly different waterfall structure than
the market standard waterfall. In the interest waterfall, the
deferred interest is being paid after the coverage tests. Fitch
has tested the impact of this feature and found the impact on the
notes to be negligible.

RATING SENSITIVITIES

A 25% 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 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 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.


HARVEST CLO XX: Moody's Gives (P)B2 Rating to EUR12MM F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Harvest
CLO XX DAC by:

EUR1,500,000 Class X Senior Secured Floating Rate Notes due 2031,
Assigned (P)Aaa (sf)

EUR246,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR12,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR30,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR27,500,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR20,900,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa3 (sf)

EUR24,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

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

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. The provisional 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, Investcorp Credit
Management EU Limited, has sufficient experience and operational
capacity and is capable of managing this CLO.

Harvest CLO XX DAC 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
80% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

Investcorp 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.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 36.5M of subordinated notes, which will not
be rated.

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

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. Investcorp'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: 44

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.55%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 44.00%

Weighted Average Life (WAL): 8.5 years


HARVEST CLO XX: Fitch Assigns B-(EXP) Rating to Class F Debt
------------------------------------------------------------
Fitch Ratings has assigned Harvest CLO XX DAC expected ratings as
follows:

Class X: 'AAA(EXP)sf'; Outlook Stable

Class A: 'AAA(EXP)sf'; Outlook Stable

Class B-1: 'AA(EXP)sf'; Outlook Stable

Class B-2: 'AA(EXP)sf'; Outlook Stable

Class C: 'A(EXP)sf'; Outlook Stable

Class D: 'BBB(EXP)sf'; Outlook Stable

Class E: 'BB(EXP)sf'; Outlook Stable

Class F: 'B-(EXP)sf'; Outlook Stable

Subordinated notes: 'NR(EXP)sf'

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Harvest CLO XX DAC is a cash flow collateralised loan obligation.
Net proceeds from the expected issuance of the notes will be used
to purchase a EUR400 million portfolio of mostly European
leveraged loans and bonds. The portfolio is actively managed by
Investcorp Credit Management EU Limited. The CLO envisages a 4.5-
year reinvestment period and an 8.5-year weighted average life.

KEY RATING DRIVERS

'B+/B' Portfolio Credit Quality

Fitch places the average credit quality of the obligors in the
'B+'/'B' range. The Fitch-weighted average rating factor (WARF)
of the identified portfolio is 31.6.

High Recovery Expectations

At least 96% of the portfolio will consist of senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
identified portfolio is 64.3%.

Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 7.5% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the notes can withstand the interest rate mismatch associated
with each scenario.

Limited Foreign-Exchange Risk

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

Adverse Selection and Portfolio Management

The transaction features a 4.5-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 five notches for the rated notes.

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

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

DATA ADEQUACY

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

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


HARVEST CLO XVI: Fitch Assigns B- Rating to Class F-R Debt
----------------------------------------------------------
Fitch Ratings has assigned Harvest CLO XVI DAC ratings as
follows:

EUR3 million Class X: 'AAAsf'; Outlook Stable

EUR273 million Class A-R: 'AAAsf'; Outlook Stable

EUR22 million Class B-1R: 'AAsf'; Outlook Stable

EUR20 million Class B-2R: 'AAsf'; Outlook Stable

EUR31 million Class C-R: 'Asf'; Outlook Stable

EUR27 million Class D-R: 'BBB-sf'; Outlook Stable

EUR24 million Class E-R: 'BB-sf'; Outlook Stable

EUR12.5 million Class F-R: 'B-sf'; Outlook Stable

EUR45 million subordinated notes: 'NRsf'

The transaction is a cash flow collateralised loan obligation
(CLO). Net proceeds of around EUR411 million from the refinancing
notes have been used to redeem the old notes (excluding
subordinated notes) with a new identified portfolio comprising
the existing portfolio, as modified by sales and purchases
conducted by the manager. The portfolio is primarily made up of
European senior secured loans (at least 96%) with a component of
senior unsecured, mezzanine, and second-lien loans.

The subordinated notes were issued on the original issue date and
are not being offered again. The portfolio is actively managed by
Investcorp Credit Management EU Limited. The CLO envisages a 4.5-
year reinvestment period and an 8.5-year weighted average life
(WAL).

There is no effective date rating event language in the
refinancing offering circular. Fitch received written
confirmation from the asset manager on the closing date that the
aggregate collateral balance including cash is at or above target
par and all portfolio profile tests, collateral quality tests and
overcollateralisation tests have been satisfied.

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
category. The weighted average rating factor (WARF) of the
identified portfolio is 32.

High Recovery Expectations

At least 96% 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 weighted average recovery rate (WARR) of the
identified portfolio is 65%.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors is 20% of
the portfolio balance. The transaction also includes various
concentration limits, including the maximum exposure to the three
largest (Fitch-defined) industries in the portfolio at 40%. These
covenants ensure that the asset portfolio will not be exposed to
excessive concentration.

Adverse Selection and Portfolio Management

The transaction features a 4.5-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.

Limited Interest-Rate Risk

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 4.5% of the target par.
This fixed-rate bucket covenant partially mitigates interest rate
risk. Fitch modelled both 0% and 10% fixed-rate buckets and found
that the rated notes can withstand the interest rate mismatch
associated with each scenario.

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.

No Unhedged Non-Euro Exposure

The transaction is permitted to invest up to 20% of the portfolio
in non-euro assets, provided perfect swaps are entered into as of
the settlement date for each of them.

Different Waterfall Structure

The transaction has a slightly different interest waterfall
structure than the market standard waterfall. Deferred interest
is paid after the coverage tests have been met. Fitch has tested
the impact of this feature and found the impact on the notes to
be negligible.

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

The majority of the underlying assets 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.


TORO EUROPEAN 2: Moody's Assigns B2 Rating to Class F Notes
-----------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by Toro
European CLO 2 Designated Activity Company :

EUR2,500,000 Class X Secured Floating Rate Notes due 2030,
Definitive Rating Assigned Aaa (sf)

EUR248,000,000 Class A Secured Floating Rate Notes due 2030,
Definitive Rating Assigned Aaa (sf)

EUR17,500,000 Class B-1 Secured Floating Rate Notes due 2030,
Definitive Rating Assigned Aa2 (sf)

EUR17,000,000 Class B-2 Secured Fixed Rate Notes due 2030,
Definitive Rating Assigned Aa2 (sf)

EUR26,500,000 Class C Secured Deferrable Floating Rate Notes due
2030, Definitive Rating Assigned A2 (sf)

EUR27,400,000 Class D Secured Deferrable Floating Rate Notes due
2030, Definitive Rating Assigned Baa3 (sf)

EUR22,750,000 Class E Secured Deferrable Floating Rate Notes due
2030, Definitive Rating Assigned Ba2 (sf)

EUR11,300,000 Class F Secured Deferrable Floating Rate Notes due
2030, Definitive Rating Assigned B2 (sf)

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

RATINGS RATIONALE

Moody's definitive ratings of the rated notes reflect the risks
from 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 considers that the collateral manager, Chenavari Credit
Partners LLP, has sufficient experience and operational capacity
and is capable of managing this CLO.

The Issuer will issue the refinancing notes in connection with
the refinancing of the following classes of notes: Class A Notes,
Class B Notes, Class C Notes, Class D Notes, Class E Notes and
Class F Notes due 2028, previously issued on September 28, 2016.
On the refinancing date, the Issuer will use the proceeds from
the issuance of the refinancing notes to redeem in full the
Original Notes. On the Original Closing Date, the Issuer also
issued EUR 39.55 million of subordinated notes, which will remain
outstanding.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A Notes. The
Class X Notes amortise by EUR 312,500 over the first 8 payment
dates, starting on the 1st payment date.

As part of this reset, the Issuer has increased the target par
amount by EUR 50 million to EUR 400 million, has set the
reinvestment period to 2 years and the weighted average life to 7
years. In addition, the Issuer will amend the base matrix and
modifiers that Moody's will take into account for the assignment
of the definitive ratings.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans. The underlying portfolio is approximately 88% ramped as of
the closing date. The transaction does not include an Effective
Date concept upon which the pool would have to be fully ramped up
and meet the base case covenant at a specified date. However the
current characteristics of the portfolio, the reinvestment
criteria to maintain or improve its quality and the limited
increase in the pool size, mitigate this absence.

Chenavari will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's 2 year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations 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. The collateral manager'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:

Target Par Amount: EUR 400 million

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2940

Weighted Average Spread (WAS): 3.6%

Weighted Average Coupon (WAC): 5%

Weighted Average Recovery Rate (WARR): 43.25%

Weighted Average Life (WAL): 7 years

Moody's has addressed the potential exposure to obligors
domiciled in countries with local currency ceiling (LCC) of A1 or
below. As per the portfolio constraints and eligibility criteria,
exposures to countries with LCC of A1 to A3 cannot exceed 10% and
obligors cannot be domiciled in countries with LCC below A3.


TORO EUROPEAN 2: Fitch Assigns B- Rating to Class F-R Debt
----------------------------------------------------------
Fitch Ratings has assigned Toro European CLO 2 DAC (Reset) 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: 'BB-sf'; Outlook Stable

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

Toro European CLO 2 DAC is a cash flow CLO that closed in
September 2016. The portfolio is actively managed by Chenavari
Credit Partners LLP, and the asset portfolio mostly comprises
European leveraged loans and bonds. Net proceeds from the notes
are being used to redeem the old notes, with a new identified
portfolio comprising the existing portfolio, as modified by sales
and purchases conducted by the manager.

Class X notes have been added on the top of the structure, and
will be repaid over the first eight interest payment dates (IPDs)
out of available interest funds.

The reset CLO, which has its target par amount upsized to EUR400
million from EUR350 million at the original closing, features a
two-year reinvestment period (ending October 2020), compared with
a four-year period at the original closing. The current 6.7-year
weighted average life (WAL), compares with an eight-years WAL at
the original closing, while the maturity of the refinancing notes
has been extended to October 2030, compared with October 2028 for
the original notes issued in 2016.

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
current portfolio is 32.79.

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 (WARR) of the
current portfolio is 64.95%.

Interest Rate Exposure

Fixed-rate liabilities represent 4.25% of the target par, while
fixed-rate assets can represent between 0% and 10% of the
portfolio. At closing in September 2016 the issuer purchased an
interest rate cap to hedge the transaction against rising
interest rates. The cap is still in place and will expire in
October 2021. The notional of the cap is EUR10 million
(representing 2.5% of the target par amount); the strike rate is
2%.

Diversified Asset Portfolio

The transaction features different Fitch test matrices with
different allowances for exposure to the 10 largest obligors
(maximum 17% and 24%). The manager can interpolate between these
matrices.

The transaction also includes limits on the exposure to Fitch-
defined industries. The largest industry exposure is limited to a
maximum of 17.5%, the second- largest 15% and the third-largest
12%, for an overall exposure to the three largest Fitch-defined
industries of up to 44.5%. Exposures to the remaining Fitch-
defined industries may not exceed 10%. These covenants are higher
than in comparable transactions, implying lower diversification.
In constructing the stressed portfolio, Fitch considered these
increased industry concentration limits.

Limited Foreign-Exchange 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.

Adverse Selection and Portfolio Management

The transaction features a two-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 four notches for the rated notes.

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

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

DATA ADEQUACY

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

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



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


ASTALDI SPA: Rome Court Accepts Creditor Protection Filing
----------------------------------------------------------
Domenico Lusi and Stefano Bernabei at Reuters report that a court
in Rome has accepted a filing by troubled Italian builder Astaldi
for protection from creditors, the company said on Oct. 17,
confirming what sources had said.

Astaldi, hit by delays to plans to sell a bridge in Turkey, filed
for court protection from creditors in September to allow it to
continue business while restructuring its debt, Reuters relates.

"The court of Rome has admitted the company to the creditor
protection procedure," Reuters quotes Astaldi as saying in a
statement.

The statement added the court has set Dec. 16 as the deadline for
Astaldi to submit a final restructuring plan related to the
arrangement with creditors, Reuters notes.

Shares in Astaldi have lost almost half of their value since the
group reported on Sept. 28 that it had filed for Chapter 11-like
creditor protection, Reuters recounts.

According to Reuters, Astaldi, one of Italy's leading contractors
with more than 10,500 employees, had been hoping to sell its
33.3% stake in the Third Bosphorus Bridge in Turkey to boost
liquidity and reduce debt, which stood at EUR1.9 billion (US$2.2
billion) at the end of June.


ITALY: European Commission Likely to Reject 2019 Budget Plan
------------------------------------------------------------
Alessandra Migliaccio at Bloomberg News reports that the European
Commission is "very likely" to reject Italy's 2019 budget plan
because it's not compatible with the bloc's rules, Commissioner
Guenther Oettinger said.

Italy's populist coalition submitted its draft budget to the
European Union earlier this week, and is waiting for an initial
assessment from the EU's Brussels-based executive, Bloomberg
relates.   The government is forecasting a deficit of 2.4% next
year, three times the previous government's projection, Bloomberg
discloses.  The extra deficit will help pay for tax cuts, a lower
retirement age and new benefits for the poor, Bloomberg states.

"It is my personal opinion that based on the figures it is very
likely that we have to ask Italy to correct the draft budget,"
Bloomberg quotes Mr. Oettinger as saying on Twitter.

Italian Finance Minister Giovanni Tria said he expects "continued
dialogue" with the Commission over country's plans, Bloomberg
relays.

According to Bloomberg, Mr. Tria has said the deficit was already
trending toward 2% of GDP because of slowing growth and the
government's new spending plans will help boost the economy.

Italy's Parliamentary Budget Office refused to endorse the budget
saying its economic assumptions weren't acceptable, Bloomberg
notes.

While Italy's deficit is well within the 3% limit laid out in
treaties, the Commission has demanded smaller deficits for Italy
to bring down its debt load, Bloomberg says.



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


ASIACREDIT BANK: S&P Withdraws CCC+ LT Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings withdrew its ratings on Kazakhstan-based
AsiaCredit Bank JSC at the bank's request. At the time of the
withdrawal, the long- and short-term issuer credit ratings on the
bank were 'CCC+' and 'C' respectively, the national scale rating
was 'kzB', and the outlook on the 'CCC+' long-term rating was
negative.

  RATINGS LIST

  Ratings Withdrawn                   To         From

  AsiaCredit Bank JSC
   Issuer Credit Rating               NR/NR      CCC+/Negative/C
   Kazakhstan National Scale Rating   NR/--/--   kzB/--/--

  NR--Not rated.



=========
M A L T A
=========


VISTAJET MALTA: S&P Raises LT Issuer Credit Rating to 'B'
---------------------------------------------------------
S&P Global Ratings said that it assigned its 'B' long-term issuer
credit rating to Vista Global Holdings Ltd. (Vista Global), the
Dubai International Financial Centre (DIFC)-based holding company
of VistaJet and XOJet, and to its core subsidiary XO Management
Holding Inc.

S&P said, "At the same time, we raised to 'B' from 'B-' our long-
term issuer credit rating on private jet services provider
VistaJet Group Holding Ltd. (VistaJet), and its core subsidiaries
VistaJet Malta Finance P.L.C. and VistaJet Co Finance LLC. The
outlook on all the ratings is stable.

"We also assigned our 'B' issue rating to the proposed $280
million senior secured term loan to be issued by XO Management
Holding Inc. and guaranteed by Vista Global. The '4' recovery
rating indicates our expectation of average recovery (30%-50%;
rounded estimate: 35%) in the event of a payment default.

"Finally, we raised to 'B-' from 'CCC+' our issue rating on the
existing $300 million senior unsecured notes issued by VistaJet
Malta Finance P.L.C. and VistaJet Co Finance LLC, guaranteed by
VistaJet.

"The rating actions follow Vista Global's announced acquisition
of XOJet, one of the largest business aviation companies in North
America, in a partly equity-funded transaction. We expect the
acquisition to close by the end of 2018, pending regulatory
approvals.

"We understand that VistaJet and XOJet will be consolidated at
the level of Vista Global, a newly created DIFC-based holding
company in which VistaJet's founder holds the majority stake
while the financial investors, Rhone Capital and Mubadala
Investment Co., hold the remainder. We view both VistaJet and
XOJet as core to Vista Global's strategy and operations and
assess the group's creditworthiness on a consolidated basis.

"We believe the acquisition of XOJet expands the Vista group's
scale, underpinned by a larger combined fleet of 115 aircraft
(compared with 72 at VistaJet on a stand-alone basis). We expect
the group will generate $300 million-$310 million of EBITDA in
2018 on a pro forma basis (of which around 85% will stem from
VistaJet's and 15% from XOJet's operations). The combined entity
will benefit from an enhanced service offering and customer
reach, covering both the guaranteed availability through
VistaJet's aircraft with high luxury features and the related
services, and on-demand charters through XOJet's high quality and
branded offering. Together, this should enable the group to
capture the increasing demand for asset-light business aviation
solutions worldwide and, in particular, to capitalize on XOJet's
leading position and efficient business model in the largest, but
highly fragmented business aviation market in North America.

"We expect VistaJet will continue to drive the group's
profitability assessment and support the business profile, while
accounting for about 85% of the combined EBITDA. VistaJet's
absolute EBITDA margins of more than 35% stand out when compared
with peers in the general aviation industry, while the company's
relative stability of profitability stems from its wealthy
customer base, whose spending habits tend to be less affected by
economic conditions than those of the general public. We note
that VistaJet is making good progress in ramping up its customer
base now that it has reached the critical mass necessary to more
efficiently operate the fleet network (the company expanded from
31 aircraft in 2013 to 72, by the end of last year), and can
focus on significantly boosting aircraft utilization rates. We
forecast that VistaJet will continue its growth trajectory and
gradually increase EBITDA margins, potentially achieving 40% in
the next two-to-three years. XOJet's lower profitability than
VistaJet's is  due to a number of factors including a different
product offering and generally more price sensitive customer
group, and will dilute the group's consolidated EBITDA margin to
about 30%, which is still strong for the aviation sector. At this
stage, we do not incorporate synergies into our base case because
their timing and magnitude are uncertain. We believe synergies
could originate from joint procurement, use of a common IT
platform, and better utilization of excess capacity.

"As we previously expected, VistaJet's financial profile is
continuing to improve as the company's business enters a more
mature phase having achieved critical mass after a heavy
investment phase; its cash flows get more stable and predictable;
and it focuses on reducing leverage on its balance sheet from
positive cash flow. We expect the acquisition to bolster the
group's credit measures because the transaction will be partly
equity-funded. The group will incur new acquisition-related debt
of $280 million at the XOJet level, but this will be
counterbalanced by the EBITDA contribution from XOJet.
Additionally, $200 million of preferred shares--held by the
minority shareholder Rhone Capital and which we viewed as debt
for the ratio calculation purposes--were converted by Rhone
Capital into common equity in the process of setting up the new
group structure. This conversion will reduce adjusted debt and
boost credit ratios. We forecast that the combined group will
achieve a ratio of S&P Global Ratings-adjusted funds from
operations (FFO) to debt of close to 10% and adjusted debt to
EBITDA of about 6.0x in 2018 (on a pro-forma basis consolidating
XOJet from Jan. 1, 2018), improving to 14%-15% and below 5.0x,
respectively, in 2019. These ratios in aggregate are consistent
with the lower end of the financial profile of aggressive.

"We understand the group has a well-invested asset base and no
aircraft on order, and that it will focus on carefully managing
its aggressive finance lease-related debt amortization schedule,
and reducing leverage on the balance sheet. We forecast the group
will generate free operating cash flows of at least $200 million
in 2019 and 2020."

S&P's base case for the combined group assumes:

-- GDP growth in Europe of 2.4% in 2018 and 2.1% in 2019, and
    growth in the U.S. of 2.8% in 2018 and 2.6% in 2019.

-- Consolidated annual revenues of $1 billion-$1.2 billion in
     2018-2019, and reported EBITDA of $300 million-$310 million
     in 2018, increasing to $350 million-$360 million in 2019.
     This is based on a stable fleet of about 115 aircraft and
     improving asset utilization rates. Largely stable fixed
     costs, and variable costs increasing in line with growth in
     the total number of hours flown.

-- S&P continues to incorporate its assumption that any increase
    in fuel prices will be passed on to customers, in line with
    the historical track record.

-- Annual combined capital expenditure (capex) of $25 million-
     $30 million, largely for fleet maintenance and growth at
     XOJet.

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

-- Pro forma weighted-average adjusted debt to EBITDA of 5.0x-
    5.5x in 2018-2019, from about 10.0x in 2017 on a VistaJet
    stand-alone basis;

-- Pro forma weighted-average adjusted FFO to debt of 12%-13%,
    from about 5% in 2017 on VistaJet stand-alone basis; and

-- Pro forma weighted average adjusted EBITDA interest cover of
    about 3.0x, from about 2.0x in 2017 on VistaJet stand-alone
    basis.

S&P said, "The stable outlook reflects our view that the group
will be able to efficiently integrate XOJet's operations,
continue on its EBITDA growth trajectory, and generate sufficient
free operating cash flow to meet VistaJet's mandatory debt
amortization and reduce financial leverage to below 5.0x over the
next 12 months. We consider the group's uninterrupted access to
bank funding to refinance VistaJet's maturing bullet debt on time
as a key stabilizing rating factor."

A higher rating would depend on the group's ability to continue
to improve the distribution of its debt maturities and to
strengthen its adjusted FFO-to-debt ratio to more than 16%, with
a limited risk of it dropping significantly. This could be a
result of expansionary business diversification. Such an
improvement in ratios could occur if utilization rates increase,
revenue expands by low double-digit rates, EBITDA margin remains
at about 30%, and debt reduces in line with the mandatory
amortization.

S&P said, "We could lower the rating if EBITDA growth does not
meet our base-case expectations. This could be because
utilization of the fleet does not improve as expected or yields
soften significantly, or if the group's liquidity position
weakens such that cash flow generation seems to be insufficient
to cover mandatory debt amortizations. We could also take this
action if it appears the group will fail to refinance its large
maturities on time."



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


JUBILEE CLO 2016-XVII: Moody's Assigns B2 Rating to Cl. F Notes
---------------------------------------------------------------
Moody's Investors Service has assigned ratings to eight classes
of refinancing notes issued by Jubilee CLO 2016-XVII B.V.

Moody's rating action is as follows:

EUR198,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031 (the "Class A-1 Notes"), Assigned Aaa (sf)

EUR50,000,000 Class A-2 Senior Secured Floating Rate Notes due
2031 (the "Class A-2 Notes"), Assigned Aaa (sf)

EUR31,184,000 Class B-1 Senior Secured Floating Rate Notes due
2031 (the "Class B-1 Notes"), Assigned Aa2 (sf)

EUR6,316,000 Class B-2 Senior Secured Fixed Rate Notes due 2031
(the "Class B-2 Notes"), Assigned Aa2 (sf)

EUR28,000,000 Class C Deferrable Mezzanine Floating Rate Notes
due 2031 (the "Class C Notes"), Assigned A2 (sf)

EUR25,000,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2031 (the "Class D Notes"), Assigned Baa3 (sf)

EUR21,500,000 Class E Deferrable Junior Floating Rate Notes due
2031 (the "Class E Notes"), Assigned Ba2 (sf)

EUR11,500,000 Class F Deferrable Junior Floating Rate Notes due
2031 (the "Class F Notes"), Assigned B2 (sf)

The Class A-1 Notes, the Class A-2 Notes, the Class B-1 Notes,
the Class B-2 Notes, the Class C Notes, the Class D Notes, the
Class E Notes and the Class F Notes are referred to herein,
collectively, as the "Rated Notes".

RATINGS RATIONALE

The 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 Issuer will issue the refinancing notes in connection with
the refinancing of the following classes of notes: Class A Notes,
Class A Notes, Class B Notes, Class C Notes, Class D Notes, Class
E Notes and Class F Notes due 2030, previously issued on
September 8, 2016. On the refinancing date, the Issuer will use
the proceeds from the issuance of the refinancing notes to redeem
in full the Original Notes.

Jubilee CLO XVII is a managed cash flow CLO. The issued notes
will be collateralized primarily by broadly syndicated first lien
senior secured corporate loans. At least 90% of the portfolio
must consist of senior secured loans, cash, and eligible
investments, and up to 10% of the portfolio may consist of second
lien loans and unsecured loans.

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

In addition to the Rated Notes, there will be subordinated notes
issued on the original closing date. 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.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017.

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

Par amount: EUR 400,000,000

Diversity Score: 43

Weighted Average Rating Factor (WARF): 2875

Weighted Average Spread (WAS): 3.50%

Weighted Average Recovery Rate (WARR): 44.25%

Weighted Average Life (WAL): 8.5 years

Methodology Underlying the Rating Action:

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

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

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

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


JUBILEE CLO 2016-XVII: Fitch Assigns B- Rating to Class F-R Debt
----------------------------------------------------------------
Fitch Ratings has assigned Jubilee CLO 2016-XVII B.V notes final
ratings, as follows:

EUR198 million Class A-1-R: 'AAAsf'; Outlook Stable

EUR50 million Class A-2-R: 'AAAsf'; Outlook Stable

EUR31.184 million Class B-1-R: 'AAsf'; Outlook Stable

EUR6.316 million Class B-2-R: 'AAsf'; Outlook Stable

EUR28 million Class C-R: 'Asf'; Outlook Stable

EUR25 million Class D-R: 'BBB-sf'; Outlook Stable

EUR21.5 million Class E-R: 'BB-sf'; Outlook Stable

EUR11.5 million Class F-R: 'B-sf'; Outlook Stable

Jubilee CLO 2016-XVII B.V. is a cash flow collateralised loan
obligation. Proceeds from the issue of new refinancing notes are
being used to refinance the existing notes. The issuer has
amended the capital structure and extended the maturity of the
notes. The subordinated notes are not refinanced.

The collateral portfolio comprises mostly European leveraged
loans and bonds and is managed by Alcentra Limited. The CLO
envisages a 4-year reinvestment period and a 8.5-year weighted
average life.

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 of the current
portfolio is 32.8.

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 (WARR) of the
current portfolio is 65.8.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the ratings is 20% of the portfolio balance. 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%. These covenants ensure that the asset
portfolio is not exposed to excessive concentration.

Adverse Selection and Portfolio Management

The transaction features a 4-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.

Limited Interest Rate Risk

Up to 7.5% of the portfolio can be invested in unhedged fixed-
rate assets, while fixed-rate liabilities represent 1.6% of the
target par. Fitch modelled both 0% and 7.5% fixed-rate buckets
and found that the rated notes can withstand the interest rate
mismatch associated with each scenario.

RATING SENSITIVITIES

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

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

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

DATA ADEQUACY

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

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


STEINHOFF INT'L: Investors Agree to Suspend Litigation Until 2019
-----------------------------------------------------------------
Tanisha Heiberg at Reuters reports that Steinhoff International
said on Oct. 17 investors who are suing the crisis-hit firm had
agreed to suspend litigation until next year, allowing the
retailer time to focus on its recovery.

According to Reuters, the lawsuit brought in the Netherlands was
aimed at compensating investors for the more than EUR14 billion
(US$16 billion) wiped off Steinhoff's market value since the
retailer uncovered accounting irregularities last year.

Steinhoff said the suspension of legal proceedings would be until
April 3, 2019, Reuters relates.

"This agreement allows us time to focus on completing these tasks
in the interests of all stakeholders," Reuters quotes Steinhoff's
acting CEO Danie van der Merwe as saying in a statement.

Steinhoff has been working on a deal to restructure the debt of
some subsidiaries with its creditors after revealing multi-
billion euro holes in its balance sheet in December that wiped
more than 90% off its market value and forced it to sell assets
to fund working capital, Reuters discloses.

Steinhoff International Holdings NV's registered office is
located in Amsterdam, Netherlands.



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


AZORES: Moody's Raises LT Issuer Rating to Ba1, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has upgraded by one notch the long-term
issuer ratings of the Autonomous regions of Azores (to Ba1 from
Ba2) and Madeira (to Ba3 from B1) in Portugal. At the same time,
the outlooks on both regions' ratings have been changed to stable
from positive.

The rating actions on the Portuguese sub-sovereigns were
triggered by: (1) the strengthening of Portugal's sovereign
credit profile as captured by the upgrade of Portugal's ratings
to Baa3 from Ba1 on October 12, 2018, reducing the systemic risk;
(2) the improving resilience of Portugal's economic growth and
ongoing fiscal improvement, which will also help strengthen the
credit profile of both autonomous regions given the strong
correlation between the Portuguese sovereign and sub-sovereign
credit risks; and (3) a high likelihood of support from the
central government towards these two autonomous regions.

RATINGS RATIONALE

RATIONALE FOR THE RATINGS UPGRADES

Moody's believes that the improvement of the sovereign's
creditworthiness -- captured by the one notch upgrade on
Portugal's rating to Baa3 from Ba1 -- is also reflected at the
regional level given the strong correlation between the credit
risks of the autonomous regions of Azores and Madeira and the
Government of Portugal, reflected in macroeconomic linkages,
institutional factors and financial market conditions.

Moody's also notes that the revenue base for both autonomous
regions will increase as the country's improving economic
prospects will gradually result in higher shared tax revenue and
growing state transfers for these two Portuguese regional
governments. This will assist the regions' efforts to improve
their fiscal outcomes and reduce deficit levels. In addition,
although regional debt levels should continue to increase in the
following two to three years, Moody's believes that the net
direct and indirect debt-to-operating revenue ratio for these
regions is likely to decrease, as Portugal's economy continues to
improve.

Furthermore, the ratings for both regions benefit from Moody's
assumption of a high likelihood of support from the central
government.

  -- AUTONOMOUS REGION OF AZORES

Moody's decision to upgrade the long-term issuer rating of the
autonomous region of Azores by one notch to Ba1 from Ba2 reflects
the rating agency's expectations that the region's high net
direct and indirect debt level is going to decrease in 2018
(around 205% of operating revenue vs. 215% in 2017), as Moody's
expects the region's operating revenue to increase.

In addition, Moody's believes that Azores's positive gross
operating balance will increase in 2018 and will continue to grow
in the following years, helping the region's finances to reduce
its financing deficit of -7% of operating revenue in 2017.

  -- AUTONOMOUS REGION OF MADEIRA

The upgrade of Madeira's long-term issuer rating reflects the
strong linkage between Madeira and the Government of Portugal,
given that 86% of Madeira's debt is either through or guaranteed
by the Government of Portugal. Hence the improvement of
Portugal's creditworthiness is reflected in Madeira's Ba3 rating
despite the continued intrinsic credit weakness of Madeira, as
represented in its Baseline Credit Assessment of caa2.

Moody's notes that in 2017, the region posted a negative gross
operating performance of -12% of operating revenue, a sizeable
deficit of -25% of operating revenues, and very high debt metrics
of 431% of operating revenue at year-end 2017.

However, Moody's also notes that the region continues to work
with the central government on a long-term plan to reduce its
high debt levels of 108% of regional GDP in 2017 and commercial
debt stock. Moody's views the region's debt as unsustainable
without central government support. Although commercial debt
levels are still high, Moody's recognises the efforts that the
region has taken to reduce its accumulated commercial debt to
EUR547 million at year-end 2017 from close to EUR3 billion in
2012 (around EUR300 million forecasted at year-end 2018).

RATIONALE FOR STABLE OUTLOOK

Moody's decision to change the outlook to stable from positive on
the autonomous regions of Azores and Madeira reflects the rating
agency's view that these two Portuguese regional governments will
benefit from higher tax revenue and more transfers from the
central government, as the Portuguese economy improves, as well
as Moody's expectation that both regions' debt stocks will
continue to be very high. At the same time, the stable outlook
mirrors the outlook for the government of Portugal (Baa3 stable).

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward pressure would develop on Azores and Madeira if their
fiscal and financial performance were to improve. In addition,
the strengthening of Portugal's credit profile, as reflected by
an upgrade of the sovereign rating, could have credit
implications, reducing the systemic risk, for the Portuguese sub-
sovereigns in general.

A downgrade of Portugal's sovereign rating, leading to
indications of weakening government support for the regions, or a
deterioration in their fiscal performance, would likely lead to a
downgrade of the sub-sovereign entities.

The specific economic indicators, as required by EU regulation,
are not available for these entities. The following national
economic indicators are relevant to the sovereign rating, which
was used as an input to this credit rating action.

Sovereign Issuer: Portugal, Government of

GDP per capita (PPP basis, US$): 30,487 (2017 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 2.8% (2017 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.6% (2017 Actual)

Gen. Gov. Financial Balance/GDP: -3% (2017 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: 0.5% (2017 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: High level of economic resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On October 11, 2018, a rating committee was called to discuss the
rating of the Azores, Autonomous Region of; Madeira, Autonomous
Region of. The main points raised during the discussion were: The
systemic risk in which the issuer operates has materially
decreased.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.


COMBOIOS DE PORTUGAL: Moody's Raises CFR to Ba1, Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the
corporate family rating and to Ba1-PD from Ba2-PD the probability
of default rating of Portuguese state-owned rail operator
Comboios de Portugal. Concurrently, Moody's has changed the
outlook on the ratings to stable from positive. The baseline
credit assessment of CP is affirmed at caa1.

The rating action follows Moody's upgrade of the rating of the
Government of Portugal to Baa3, with a stable outlook, from Ba1
on October 12, 2018.

"The upgrade takes into account the strong linkages between
Comboios de Portugal and the Government of Portugal, from which
it receives considerable financial support," says Francesco
Bozzano - Analyst at Moody's and lead analyst for CP.

RATINGS RATIONALE

The change in CP's ratings reflects the upgrade on the 12th of
October of the Government of Portugal's sovereign rating to Baa3
from Ba1.

In accordance with Moody's GRI rating methodology, CP's Ba1
rating reflects the combination of the following inputs: (1) a
BCA, which is a measure of the company's standalone financial
strength without the assumed benefit of government support, of
caa1; (2) the Baa3 stable outlook local currency rating of
Portugal; (3) a very high probability of government support; and
(4) a very high default dependence.

The Ba1 CFR assumes that, in the future, the Portuguese
government will continue to provide CP with funds, either in the
form of loans or capital increases, enabling it to meet its debt
obligations in full and on a timely basis.

In 2017, the state provided CP with EUR516.4 million of new
equity (EUR98 million in cash and EUR418.3 million by converting
part of a state loan into equity). Moody's expects that the
government will continue to fund (either by injecting new capital
or providing additional lending) CP's financial requirements for
2018 and 2019, including around EUR69 million of interest cost in
2018 and EUR64 million in 2019 and around EUR409 million of debt
maturities in 2018 and EUR902 million in 2019.

This significant financial support is reflected in Moody's
assessment of a very high probability of support, that is also
based on (1) CP being a 100% state-owned company, and (2) its
special Entidade Publica Empresarial (EPE) legal status.

CP's caa1 BCA reflects the company's weak standalone financial
profile. Despite some improvements in the financial performance
and the reduction in the total amount of debt from EUR4.1 billion
in 2014 to EUR2.6 billion in 2017, owing to new equity provided
by the Government of Portugal, CP's financial structure remains
unsustainable. Moody's expects the company's operating cash flows
(before interest) to remain neutral or only modestly positive in
2017-18, thus being largely insufficient to cover CP's financial
needs (such as debt service and capex).

WHAT COULD CHANGE THE RATINGS UP/DOWN

An upgrade of the Portuguese sovereign rating would likely result
in an upgrade of CP's ratings, with the one-notch differential in
respect of the company's CFR expected to be maintained. An
upgrade in the BCA is unlikely given CP's current financial
structure. Moody's could consider upgrading the BCA if (1)
Moody's adjusted EBITA margin would turn positive; (2) the
company would be able to at least fund interest payments through
internally generated cash flow; and (3) have sufficient liquidity
to cover its cash requirements.

Downward pressure on the rating could result from a deterioration
in sovereign creditworthiness. Furthermore, any evidence that the
provision of financial support from Portugal would not be
forthcoming if required would result in a downgrade of CP's
rating.

LIST OF AFFECTED RATINGS

Issuer: Comboios de Portugal

Upgrades:

LT Corporate Family Rating, Upgraded to Ba1 from Ba2

Probability of Default Rating, Upgraded to Ba1-PD from Ba2-PD

Outlook Actions:

Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGIES

The methodologies used in these ratings were Global Passenger
Railway Companies published in June 2017, and Government-Related
Issuers published in June 2018.

CP is the main railway operator in Portugal, controlling 90% of
the passenger market. The company is 100% owned by the Portuguese
government though the Ministry of Finance and the Ministry of
Economy. In 2017 transported around 122 million of passengers and
reported revenues of EUR286.7 million.


INFRAESTRUTURAS DE PORTUGAL: Moody's Hikes CFR to Ba1
-----------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating and the senior unsecured rating of Infraestruturas de
Portugal, S.A. to Ba1 from Ba2, and the rating of the EUR3
billion euro medium-term notes (EMTN) programme to (P)Ba1 from
(P)Ba2. Concurrently, Moody's upgraded the probability of default
rating to Ba1-PD from Ba2-PD.

At the same time, Moody's has upgraded the rating of IP's EUR3
billion EMTN programme, which provides for the issuance of
government-guaranteed notes, to (P)Baa3 from (P)Ba1 and the
senior unsecured rating of government-guaranteed notes issued
thereunder to Baa3 from Ba1. The outlook has changed to stable
from positive.

The rating action follows Moody's decision to upgrade Portugal's
government bond rating to Baa3, with a stable outlook, from Ba1
on October 12, 2018.

RATINGS RATIONALE

The upgrade of IP's unguaranteed ratings to Ba1 reflects Moody's
view that the government's ability to support IP has
strengthened. This recognises the strong linkages between IP and
the Government of Portugal, which has provided significant
support in the form of capital injections to the company over the
years since the financial crisis started. Without this support,
IP would be unable to fully cover its operating and financing
requirements. Moody's expects these capital injections to
continue, thus enabling IP to cover its ongoing investment
programme as well as upcoming debt repayments.

Moody's considers the credit quality of IP to be closely linked
with that of the sovereign given (1) its critical role in the
management of the railway and road networks in Portugal and its
strategic importance to the national economy as the provider of
an essential public service; (2) its limited financial autonomy
and close oversight by the government, with the company currently
included in the National State Budget; and (3) the expectation
that the Government of Portugal will continue to step in with
timely financial support if required, considering that according
to the general principles applicable under the Portuguese
Companies Code, the Government of Portugal would remain
indirectly liable for IP's obligations as long as the company is
100% state-owned.

Moody's continues to make a one-notch rating distinction between
IP and the Government of Portugal, recognising the residual risk,
albeit small, that the sovereign, in potential stress case
scenarios that simultaneously affected various issuers requiring
support, may not be able to provide timely support, or that IP's
unguaranteed debt may not be treated as part of government debt
in a potential restructuring process. Absent such payments, IP
would likely have minimal value as a standalone enterprise given
its high indebtedness and very weak financial profile.

IP's government-guaranteed debt continues to be rated at the same
level as the Government of Portugal. This reflects the
unconditional and irrevocable guarantee provided by the
government and the application of Moody's cross-sector
methodology Rating Transactions Based on the Credit Substitution
Approach: Letter of Credit-backed, Insured and Guaranteed Debts,
published in May 2017.

The outlook on IP's ratings is stable, in line with the outlook
on the Government of Portugal's rating.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade of the rating of the Government of Portugal would
likely result in an upgrade of the ratings of IP, with the one-
notch differential between the company's unguaranteed debt
ratings and the government rating maintained.

Conversely, a downgrade of the rating of the Government of
Portugal would likely result in a downgrade of the rating of IP.
Furthermore, any evidence that the provision of financial support
from the government would not be forthcoming to IP if required
would result in a downgrade of the ratings of IP.

The principal methodology used in these ratings was Government-
Related Issuers published in June 2018.

COMPANY PROFILE

Infraestruturas de Portugal, S.A. is responsible for the design,
construction, financing, maintenance, operation, restoration,
widening and modernisation of the national road and rail networks
in Portugal. The company is 100% owned by the Government of
Portugal.



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


INTERNATIONAL BANK: S&P Lowers Issuer Credit Ratings to 'D/D'
-------------------------------------------------------------
S&P Global Ratings lowered its long- and short-term issuer credit
ratings on International Bank of Saint-Petersburg (IBSP) to 'D/D'
(default) from 'B-/B'.

S&P said, "The downgrade of IBSP reflects our view of the Central
Bank of Russia's (CBR's) regulatory intervention and its
appointment of a temporary administration at IBSP on Oct. 15,
2018, based on IBSP's unstable financial position and a threat to
its creditors' interests. We note that the CBR imposed a payment
moratorium on IBSP for the duration of three months, which will
prevent IBSP from meeting its obligations when they come due, and
result in a general default."

Any further rating actions on IBSP will depend on whether
financial rehabilitation procedures take place at some point. S&P
currently has no information on the probability or scope of such
procedures.


SOLLERS-FINANCE LLC: Fitch Hikes LT IDR to BB-, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded Russia-based Sollers-Finance LLC's
(SF) Long-Term Issuer Default Ratings to 'BB-' from 'B+', with a
Stable Outlook.

KEY RATING DRIVERS

The upgrade of SF's support-driven IDRs to 'BB-' from 'B+' and
Support Rating to '3' from '4' follows the recent upgrade of PJSC
Sovcombank (SCB; BB/Stable/bb), a key shareholder, as it implies
the bank's higher ability to support SF, if needed. SCB's ratings
were upgraded after the successful acquisition of Rosevrobank
(REB), which, in Fitch's view, is positive for the consolidated
bank's franchise and credit profile.

SF's ratings reflect Fitch's view of the moderate probability of
potential support SF may receive from SCB. This view is based on
(i) high integration between the leasing company and the bank,
with SF issuing 15%-30% of new leases on a monthly basis through
the bank's branches since 4Q17; ii) the significant volume of
funding provided by SCB (70% of SF's liabilities at end-2Q18);
(iii) SF's record of strong performance in auto leasing niche,
which is core for SCB; and iv) SF's small size relative to SCB
(equal to less than 1% of assets), making any potential support
manageable for the shareholder.

At the same time, SF's Long-Term IDRs remain one notch below
SCB's, reflecting only 50% ownership, containable reputational
risk for SCB in case of SF's potential default, different
branding and the bank's intention to gradually decrease its share
of SF's funding, which makes support somewhat less certain, in
Fitch's view.

Fitch understands SF will remain the bank's core leasing vehicle,
while two other leasing companies inherited from REB to be
gradually unwound.

SF's standalone profile is decent, underpinned by healthy
performance though the cycle (average return on assets (ROA) of
9% in 2014-6M18), low leverage (debt/tangible equity of 3.3x at
end-2Q18) and limited refinancing risk. The main constraints are
the company's narrow franchise and concentrated lease book.

SF's rouble-denominated senior unsecured debt ratings are aligned
with the company's Long-Term Local-Currency IDR.

RATING SENSITIVITIES

SF's Long-Term IDR and senior debt ratings could be upgraded
following a further upgrade of SCB. Conversely, SF's ratings
could be downgraded should SCB's ratings be downgraded or its
propensity to provide support to SF weaken.

The senior unsecured debt ratings are likely to move in tandem
with the SF's Long-Term Local-Currency IDR.

The rating actions are as follows:

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

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

Support Rating: upgraded to '3' from '4'

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


UGI INTERNATIONAL: Fitch Assigns BB+ IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has assigned UGI International, LLC (UGII) a
Long-Term Issuer Default Rating (IDR) of 'BB+' with a Stable
Outlook, and for the prospective EUR300 million bond (maximum) an
expected senior unsecured rating of 'BB+(EXP)'.

The expected bond will be guaranteed by UGII's subsidiaries and
ranks pari passu with the company's unsecured EUR300 million loan
and EUR300 million revolving credit facility (RCF), which share
the same guarantors. The final rating is contingent upon the
receipt of final documentation conforming materially to
information already received.

The IDR is underpinned by UGII's leading market position as a
liquefied petroleum gas (LPG) distributor in the European market,
with a solid business profile, good record of managing unit
margin under various operating conditions, adequate financial
profile with financial flexibility, positive free cash flow
generation and comfortable liquidity. UGII's credit profile is
constrained by the limited organic growth potential reflecting
its concentration of operations in the EU and its scale compared
with investment grade rated corporates.

KEY RATING DRIVERS

Leading European LPG Distributor: UGII is a leading distributor
of LPG in Europe with an advantage of scale compared with many
competitors and a moderate degree of geographic diversification.
However, France represents approximately 65% of revenue (for the
year ended September 30, 2017) as UGII is the leading LPG
provider in that country. Growth was mostly achieved through
acquisitions of oil majors' (BP, Shell, Total in 2015) LPG
businesses. The company expects additional acquisitions and those
could further enhance UGI's scale and operating profile. However
debt financed transactions could adversely affect the credit
profile.

Fitch views Europe's less volatile operating and stronger
governance environment compared with that of emerging markets, as
mitigating the weak demand trend there.

Further Expansion Plans: UGII's strategy envisages further market
consolidation in the LPG industry as key to achieve growth. This
would enable cost savings by acquiring and optimising supply and
distribution channels in existing markets. LPG is a by-product
and not a focus market of the major energy companies, which
continue to divest their LPG marketing operations. Further
expansion opportunities are also considered in markets currently
not served by UGII.

Acquisition Funding: Fitch does not incorporate any acquisitions
into its rating case since none are currently clearly identified
and agreed, though the ratings recognise UGII's potential to be
acquisitive. The company tends to fund acquisitions with a
combination of cash on hand and debt. For large transactions,
equity contribution from parent UGI Corp have kept net
debt/EBITDA to about 2.0x-2.5x. Fitch assumes this approach will
continue. However, credit metrics would weaken towards Fitch's
guidelines for negative rating action if the company executes
debt funded expansion without offsetting contribution to
earnings.

Stable Margins Despite Volatility: Propane price volatility can
have an impact on short-term margins and thus the company's
profitability. Fitch views UGII's management as experienced and
focused on cost efficiency which helps to pass through input
price changes. Long-term segment margins have been fairly stable
despite volume and pricing volatility with higher margins in
retail and tighter mark-up for bulk customers. The majority of
UGII's customers are contracted under pricing arrangements where
prices fluctuate with changes in the propane spot price.
Approximately 10% of UGII's profits are derived from fixed-for
price contracts, for which the company hedges the sold volumes
using forward contracts.

Credit Positive Characteristics:  UGII has good security of
supply, strong brand recognition, well established distribution
network and a low customer churn rate (average 3%-4% in Europe).
UGII has a higher percentage of longer-term customer contracts in
most of its markets than its competitors including AmeriGas
Partners, L.P. (APU, BB/Stable).

Business Risks: Fitch views the retail LPG industry as generally
possessing a fair amount of business risk due to concerns demand
destruction -- due to fuel switching prompted by price
competition -- and conservation. Additionally, propane and butane
prices can be volatile, given their strong correlation to crude
prices; retail propane prices could spike, and margins could
contract from current levels. Demand can be volatile and heavily
influenced by weather. Customer conservation and increased
efficiency of appliances or heating equipment can also have a
negative impact on demand.

Moderate Capex, Solid Credit Metrics: UGII's ratings are
underpinned by the company's adequate credit metrics, solid
financial profile with flexible capex and dividends. Fitch
expects the company to remain well placed relative to its Fitch-
rated peers based on funds from operations (FFO) net adjusted
leverage of below 2.0x (2.1x in 2017) and FFO fixed charge
coverage above 6.0x (9.1x) over 2018-2022. Given UGII's moderate
capex, Fitch estimates the company to generate steady cash from
operations (CFO) above USD200 million per year (USD253 million
for 2017), and a post-dividends free cash flow (FCF) of around
USD45 million annually over 2018-2022. In addition, UGII does not
have set dividend policy, which adds to the financial
flexibility.

Rating on Standalone Basis: The IDR reflects UGII's standalone
credit profile as Fitch assesses the legal, operational and
strategic ties between the company and its ultimate majority
shareholder UGI Corp to be moderate in accordance with Fitch's
"Parent and Subsidiary Linkage" methodology. While UGI Corp has a
strong operational control over UGII, the legal ties are limited
as the expected new financing of EUR300 million notes and EUR300
million term loan are non-recourse to ultimate parent UGI Corp,
with no guarantees or cross default provisions. Although UGII
raises debt independently, the parent has in the past supported
its growth funding.

UGI Corp contributed EUR140 million equity (USD165 million out of
USD500 million total deal price) to UGII's largest acquisition --
of Totalgaz in France in 2015 --  which doubled the company's
presence in its key market. For most recent acquisitions in 2017
including of DVEP in the Netherlands and Italian Univergaz, UGI
Corp allowed UGII to skip a dividend payment of EUR115 million.
It also contributed USD38 million in equity in September 2017.
Fitch understands from the company that further equity funding
may be provided if needed for large acquisitions.

DERIVATION SUMMARY

Fitch considers Fitch-rated fuel retail operators such as Vivo
Energy plc (Vivo, BB+/Stable), Puma Energy Holdings Pte Ltd
(Puma, BB/Negative) and EG Group Limited (EG Group, B/Stable) as
UGII's peers. Vivo and Puma have more diversified businesses with
integrated downstream and midstream operations. Puma is more
geographically diversified, if in emerging markets. EG Group is a
leading independent petrol station operator in Europe.

UGII has a stronger financial profile with lower FFO net adjusted
leverage of around 2.0x compared with Puma's average of around
5.0x and EG Group's average of around 6.0x. Vivo Energy has
slightly lower leverage than UGII with around 1.0x for 2017-
2021F. All three peers are less capital intensive than UGII, but
Fitch expects Puma to incur higher capex in its midstream
infrastructure. UGII has strong cash-generative profile with
neutral to positive FCF (after dividends) and higher average
EBITDA margin of around 16% compared with peers' average of
around 4.5% for 2017-2021F, which is justified by higher margin
associated with retail propane/LPG sales (for home heating and
cooking as well as industrial use) versus Puma's and Vivo's
primarily focused on highly competitive and low margin retail
motor fuel sales.

UGII is also better positioned compared with its sister company
APU, which is also a large propane retailer, however operates in
a highly fragmented US market with about 15% market share. APU
has negative FCF, higher Fitch-estimated leverage of around 5.0x
for 2017-2021F, but stronger EBITDA margin of above 20% for the
same period. APU's margin benefits from its ability to roll up
small retail propane distributors in the US and use its size and
scale to lower or eliminate overhead costs while maintaining
sales. Additionally, APU has become very adept at managing EBITDA
margins and gross margins, even in a contracting sales and
volatile propane price environment. Wholesale propane prices in
the US have generally been low given increased US natural gas
liquids production and APU has been able to keep retail prices
high and markedly grow its gross margin per gallon as a result.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for UGII

  - Eurozone GDP growth of 1.8% in 2019 and 1.6% in 2020;
    inflation of 1.7% in 2019, 1.9% in 2020

  - EUR/USD and GBP/USD rates of 1.10 and 1.30 for 2018-2020,
    respectively

  - LPG volumes decline at CAGR of around 1% over 2018-2022,
    which is in line with management's forecasts

  - Net sales by unit decline at CAGR of around 3% over 2018-2022

  - Dividends of average USD108 million annually over 2018-2022,
    lower than the management's forecasts

  - Annual average capex of less than USD97 million on over 2018-
    2022, lower than management's forecast

  - Interest rate of 4.5% for all new debt to be raised over
    2018-2022.

RATING SENSITIVITIES

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

  - Increased scale of business while maintaining solid market
    shares within the countries it operates in, and without
    impairing group profitability.

  - Maintenance of FFO net adjusted leverage below 2.0x on a
    sustained basis.

  - Maintenance of FFO fixed charge cover above 6x.

  - Sustainable positive FCF generation with FCF margin of above
    5%.

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

  - Sharp deterioration in sales volume, signaling heightened
    competition, leading to sustained EBITDA erosion below USD300
    million and negative FCF.

  - Weaker-than-expected financial performance or aggressive
    mostly debt funded M&A, leading to FFO net adjusted leverage
    persistently higher than 3.0x and FFO fixed charge coverage
    below 4.0x.

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: As of June 2018, UGII held cash and cash
equivalent balances of USD246 million and undrawn committed
credit lines of USD456 million, that are available until April
2020 and October 2020. This compares with 2018 maturities of
USD0.3 million and USD71 million for 2019, as well as Fitch
expected positive FCF of USD137 million for 2018.

Extended Maturities, Simplified Group Structure: The rating case
assumes a new debt structure with repayment of the existing loans
at operating companies of USD754 million maturing in 2020 from
new debt proceeds to be raised directly by UGII, extending the
debt repayment schedule.

UGII plans to issue EUR300 million senior unsecured notes due in
2025. The notes are expected to rank equally with expected new
unsecured EUR300 million loan with a bullet repayment in 2023. In
addition, liquidity would be supported by a new EUR300 million
RCF due in 2023.

Debt Guarantees: All three instruments are expected to share the
same guarantors, UGII's subsidiaries representing 77% of
consolidated adjusted EBITDA for the LTM period ending June 30,
2018 with the two main French guarantors making-up around 66%.
There will be no significant prior-ranking debt at the operating
companies or UGII, with an exception of EUR17.5 million note
payable due in August 2022.

Manageable FX Exposure: The expected bond placement will be
EUR-denominated -- same currency as most of its revenues is
generated. However UGII is facing FX translation risk, as its
subsidiaries financials are translated into US-dollars. In order
to reduce the volatility in net income associated with UGII
operations, resulting in FX changes between US dollars, pound
sterling and euros, UGII has entered into forward foreign
currency exchange contracts from 2016.



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


PATISSERIE VALERIE: Nov. 1 Meeting to Approve Share Issue Set
-------------------------------------------------------------
Jonathan Eley at The Financial Times reports that
shares in the parent company of cafe chain Patisserie Valerie
will remain suspended until it can give more details about
accounting irregularities it uncovered last week and its
financial reporting is "appropriate for a quoted company".

According to the FT, the company said a Patisserie Holdings
shareholder meeting to approve an emergency share issue will take
place on Nov. 1, but dealings in the new shares will only begin
"once the company's ordinary shares cease to be suspended from
trading".

Patisserie Holdings halted trading in its stock last week, after
it uncovered accounting irregularities and suspended its finance
director, Chris Marsh, the FT recounts.

In a circular convening the meeting, Patisserie Valerie warned
that failure to agree the share issue would be likely to result
in the company entering administration, the FT relates.

It also defended a rescue package announced on Oct. 12, which
combined GBP20 million of interest-free loans from executive
chairman Luke Johnson, and a GBP15.7 million fundraising from
external shareholders, saying this was "the only available course
of action open to the directors in the circumstances", the FT
notes.

The company gave no new details of the accounting problems, but
warned that investigations were "at a very early stage" and that
their outcome "cannot be predicted with any degree of certainty",
the FT relays.

Its main lenders have agreed not to enforce the recovery of their
debts for a year, unless the group enters administration, the FT
discloses.  In return, Patisserie Holdings must within 45 days
agree new borrowing facilities, secured against its assets, the
FT states.


* UK: Growth in Risky Corporate Debt Splurge Echoes 2008 Crisis
---------------------------------------------------------------
Anna Isaac and Tim Wallace at The Telegraph report that a risky
corporate debt splurge is raising echoes of the financial crisis,
the Bank of England fears, as officials scour the market for
signs that a debt crunch could hurt banks and the wider economy.

According to The Telegraph, growth in borrowing by heavily-
indebted companies and those with "junk" credit status is rising
at levels seen in sub-prime mortgages before the financial crisis
and now stands at more than US$1 trillion globally.

The Bank's Financial Policy Committee (FPC) is "concerned" the
surging debts could build new vulnerabilities in the financial
system, The Telegraph states.

The debts, known as leveraged or covenant-lite loans, are
typically packaged up and sold on, The Telegraph notes.

Sir Jon Cunliffe, deputy governor at the Bank, said this shows
similarities with the credit crunch, The Telegraph relates.

"The things that are similar [to the sub-prime crisis] are the
size and the fast rate of growth," The Telegraph quotes as
saying, adding that this type of lending has hit GBP30 billion
this year.

"Secondly, we're seeing a weakening in underwriting standards.
The other similarity is the packaging and distribution [of the
bonds]."

He was speaking after ratings agency Moody's warned that
companies are piling on debt and making themselves vulnerable to
the next downturn, The Telegraph relays.

"A tight covenant structure is good for lenders.  Because it
inhibits the company from taking certain actions to the detriment
of lenders.  A loose covenant structure is generally credit
negative," Peter Firth of Moody's, as cited by The Telegraph,
said.

Loose covenants can worsen the position of a company from a
lender's perspective, either by allowing weaker corporate
performance or by making it easier to layer debt upon existing
creditors, according to The Telegraph.  This leaves the door open
to firms becoming over indebted, The Telegraph states.

"The higher proportion of vulnerable leveraged companies is
sowing the seeds for a spike in the default rate when the next
credit downturn strikes," The Telegraph quotes Moody's as saying.

According to The Telegraph, Sir Jon said the Bank of England will
include these bonds in future stress tests, which examine the
impact of a recession on banks' financial stability.



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


* EUROPE: Increased Competition to Spur Airline Bankruptcies
------------------------------------------------------------
Reuters reports that increasing competitive pressures inside and
outside Europe could lead to additional airline restructurings
and bankruptcies, the German government said in a response to a
parliamentary query that was published by the Handelsblatt
newspaper.

The government did not comment on whether it would offer other
airlines help such as the EUR150 million ridging credit it
provided to Air Berlin, Germany's second largest airline, when it
ran into trouble last year, Reuters notes.

Nordic budget airline Primera Air, which began in 2003, this
month became the latest European carrier to go bust, telling
staff that all flights were being halted and leaving thousands of
passengers stranded, Reuters recounts.

The collapse came exactly a year after Britain's Monarch Airlines
went under after falling victim to intense competition for
flights and a weaker pound, Reuters relates.  Air Berlin filed
for bankruptcy protection in August 2017, Reuters discloses.

According to Reuters, Reinhard Houben, economic spokesman for the
FDP, told the newspaper that a solution was needed to ensure that
passengers did not get stranded but taxpayers did not get stuck
with the bill.


* BOOK REVIEW: Crafting Solutions for Troubled Businesses
---------------------------------------------------------
Authors: Stephen J. Hopkins and S. Douglas Hopkins
Publisher: Beard Books
Hardcover: 316 pages
List Price: US$74.95
Own your personal copy at
http://www.amazon.com/exec/obidos/ASIN/1587982870/internetbankrup
t
Crafting Solutions for Troubled Businesses: A Disciplined
Approach to Diagnosing and Confronting Management Challenges, by
Stephen J. Hopkins and S. Douglas Hopkins, will change the way
you think about the problems of businesses in distress.

The book will be of great value to turnaround management
practitioners, lenders facing loan covenant defaults, Board
Members of struggling companies who need a basis for evaluating
and assisting their management to realistically confront
problems, and private equity firm management facing problems with
portfolio companies or seeking to identify turnaround investment
opportunities.



                            *********

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.


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