/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/181114.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, November 14, 2018, Vol. 19, No. 226 Headlines B E L G I U M NYRSTAR NV: Analyst Says Debt Restructuring Process Inevitable C R O A T I A TEHNIKA: Zagreb Court OKs Request for Pre-Insolvency Proceedings G E R M A N Y * GERMANY: Business Insolvencies Down 5.6% in August 2018 I R E L A N D ORANJE NO. 32: DBRS Assigns Provisional BB Rating to Cl. E Notes I T A L Y BANCA CARIGE: Italian Banks to Inject Funds to Boost Capital K A Z A K H S T A N NOMAD LIFE: A.M. Best Affirms B- (Fair) Financial Strength Rating P O R T U G A L HEFESTO STC: DBRS Confirms B (low) Rating on Class B Notes U N I T E D K I N G D O M BHS GROUP: WPC Chairman to Continue Probe Into 2016 Collapse FLOWGROUP PLC: Board Appoints Joint Administrators MOCA 2017-1: DBRS Hikes Class E Notes Rating to B (high) NEWDAY FUNDING 2018-2: DBRS Finalizes B Rating on Class F Notes ********* ============= B E L G I U M ============= NYRSTAR NV: Analyst Says Debt Restructuring Process Inevitable -------------------------------------------------------------- Neil Hume at The Financial Times reports that shares in Europe's biggest zinc smelting company Nyrstar crashed to a record low on Nov. 12 after ABN Amro said they were virtually worthless and advised clients to "abandon ship". "Given Nyrstar's liquidity position and the company's large debt and interest burden, we believe a debt restructuring process is inevitable," the FT quotes ABN analyst Philip Ngotho in a report as saying, reiterating his sell rating and setting a 1 cent target price, down from EUR1. "In our view, the most likely scenario is a debt-for-equity swap, possibly in combination with a private share placement to Trafigura, which would come at the cost of a full wipeout of the current equity". Nyrstar slumped almost 50% to 63 cents, leaving the Swiss- headquartered company valued at just EUR85 million -- a fraction of EUR1.2 billion net debt pile, the FT discloses. Its EUR340 million 2019 bond dropped 59 cents on the dollar, down 10 cents, a level that traders said was pricing in a debt restructuring, the FT states. Analysts and investors are increasingly worried about Nyrstar's ability to repay or refinance the 2019 bond when it matures September, the FT notes. According to the FT, the company has been battling tough market conditions in zinc markets as well as record low processing fees and issued a huge profits warning at the end of September. Headquartered in Belgium, Nyrstar N.V. is a global multi-metals business, with a market leading position in zinc and lead and growing positions in other base and precious metals, such as copper, gold and silver. ============= C R O A T I A ============= TEHNIKA: Zagreb Court OKs Request for Pre-Insolvency Proceedings ---------------------------------------------------------------- SeeNews reports that Croatian construction company Tehnika said the commercial court in Zagreb on Nov. 9 approved its request for the launch of pre-insolvency proceedings. Tehnika filed for the launch of pre-insolvency proceedings last month after the previous bankruptcy request submitted by Tehnika in August was rejected, SeeNews relates. The commercial court in Zagreb said at the time it rejected the request because it was yet to rule on a similar application filed by local company Zagorje-Tehnobeton, SeeNews notes. On Sept. 28, Zagorje-Tehnobeton, however, withdrew its request, SeeNews recounts. Tehnika said in August it meets the preconditions for the initiation of bankruptcy proceedings after an Algerian investor cancelled a project on which it had partnered with the Croatian company, as a result of which Tehnika's bank accounts were frozen, SeeNews discloses. ============= G E R M A N Y ============= * GERMANY: Business Insolvencies Down 5.6% in August 2018 --------------------------------------------------------- The Federal Statistical Office (Destatis) on Nov. 13 disclosed that in August 2018, German local courts reported 1,616 business insolvencies. Destatis reports that this was a decline of 5.6% on August 2017. The local courts reported that, in relation to the business insolvency requests, the prospective debts owed to creditors amounted to approximately EUR2.3 billion in August 2018. ============= I R E L A N D ============= ORANJE NO. 32: DBRS Assigns Provisional BB Rating to Cl. E Notes ---------------------------------------------------------------- DBRS Ratings Limited assigned provisional ratings to the following classes of notes to be issued by Oranje (European Loan Conduit No. 32) DAC (the Issuer): -- Class A at AAA (sf) -- Class B at AA (low) (sf) -- Class C at A (low) (sf) -- Class D at BBB (low) (sf) -- Class E at BB (sf) All trends are Stable. The Issuer is a five-loan conduit securitization arranged by Morgan Stanley & Co. International plc (Morgan Stanley). The transaction comprises five Dutch commercial real estate loans (the Cygnet, Cheetah, Phoenix, Desert and Legion loans) advanced by Morgan Stanley Principal Funding, Inc. (the Loan Seller or Morgan Stanley) and sourced in cooperation with Unifore DMC to the relevant Dutch borrowers between October 2017 and September 2018. The Cygnet, Cheetah and Phoenix loans were advanced as refinancing facilities whereas the Desert and Legion loans were advanced as acquisition facilities. None of the loans have mezzanine debt or have been syndicated. The five loans, totalling EUR [210.8]million at the time of the securitization (excluding one Cygnet property that is in the process of being sold) and backed by [78] properties with an aggregated market value (MV) of EUR [344.0] million, can be further divided into two groups: four loans are five-year partially amortizing loans with higher margins (over 3.0%) and a higher leverage (over 64.8% loan-to-value, LTV). In contrast, the Phoenix loan has a lower margin (1.9%), lower leverage (56.1% LTV), but is interest only. The Phoenix loan has a three-year loan term with two one-year extension options. The EUR 99.5 million Phoenix loan is the largest loan in the transaction, representing [51.5]% of the MV and, because of the relatively lower LTV ratio, [47.2]% of the securitized debt amount. The Phoenix portfolio comprises 18 office properties across 11 towns and cities in the Netherlands. Approximately 49.4% of the MV is concentrated in Amsterdam (including Hoofddorp), the Hague, Rotterdam and Utrecht. Note worthily, two of the three office buildings in Rotterdam -- one located in the Rotterdam city center and the second one located east of the city -- are barely occupied, thus bringing the overall occupancy down to 82.8%. The sponsor of the Phoenix loan is Marathon Asset Management; the company has planned to lease up the portfolio following some capital expenditure investments in one of the vacant Rotterdam assets. The Cheetah loan is the second largest loan in the transaction, with a EUR 48.2 million initial loan balance ([22.2]% of the securitized debt) and EUR 70.1 million MV ([20.4]% of the transaction MV). The Cheetah portfolio comprises 43 properties, of which 26 are retail properties and 17 are multi-family residential properties. The properties are geographically diversified across the Netherlands and have a historical occupancy rate averaging over 90% for the past ten years. However, DBRS noted that several out-of-town retail assets have remained vacant for a prolonged period of time, and as such DBRS has underwritten a higher vacancy rate for the retail assets (13.2%). The sponsor for the Cheetah loan is Woon Winkel Fonds, a real estate fund with a team of seven. The fund solely focuses on managing the Cheetah properties. The Cygnet loan is secured by [12] assets (excluding the asset to be disposed, eight office and four industrial assets) representing [11.5]% debt balance and [10.8]% MV of the transaction. The assets are, as of 30 June 2018 (the Cut-Off Date), 83.0% occupied, slightly above the historical average of roughly 80%. The sponsor of the loan is Annexum Beheer B.V., the largest retail fund in the Netherlands with about EUR 500 million in office assets. The asset manager has adopted the flexible office concept to effectively lease up the vacant spaces with shorter leases. This strategy was successful in converting one large short-term lease to a long-term lease. DBRS was informed that a property disposal is currently underway and that, if completed, the whole sales proceeds would be used to pay down the loan. The fourth-largest loan of the transaction, the Desert loan, makes up [11.3]% of the securitized balance and [10.2]% of the total MV. The acquisition financing was provided to assist Highbrook's purchase of the Le Mirage office building in Utrecht from Rockspring. Since the cut-off date, the new sponsor has successfully completed some new leases, taking the current overall occupancy up to 89% from 80%. The property is located in the southwest of Utrecht where rental demand is increasing. Highbrook's business plan involves increasing rental income through a combination of leasing up the existing vacant space and adjusting existing rents to market levels, which are currently approximately 20% above the current in-place levels. The smallest loan in the transaction is the Legion loan, which makes up the remaining [7.8]% of securitized balance and [7.1]% of the transaction MV. The EUR 16.5 million loans were advanced to Aventicum in connection with their acquisition of four office assets all located in the Randstad region. The Utrecht asset is completely vacant. The sponsor is planning to convert the building into a multi-let building, which is different from the strategy adopted by the previous owner. As such, the loan features a leasing trigger set at 65% occupancy of the current vacant building. If the targeted occupancy were not met by the first interest payment date, more conservative loan covenants will apply: (1) such as a 1.0% increase in annual amortization after 12 months from utilization; (2) a cash trap if a weighted- average-lease-to-break falls below two years and (3) an increased 35% release premium based on allocated loan amount. The loan will amortize from the second year after utilization. All five loans feature tightening LTV and debt yield (DY) covenants for cash trap and event of default. Each borrower has procured hedging facilities with Cygnet covering 70.0% of the loan amount and the remaining loans covering the full loan amount with various cap strike rates. The weighted-average cap strike rate is approximately 1.8%. For the Cygnet, Cheetah and Desert loans, a step-down amortization rate would apply should the LTV and DY improve significantly, i.e. if the loan's LTV falls below 60%. The proceeds from scheduled amortization, partial prepayment or repayment will be distributed to the note holders pro rata for all loans except for the Phoenix loan. As the Phoenix loan represents nearly half of the securitized debt, has a lower leverage and is a shorter loan term with extension options, the repayment proceeds of the loan will be distributed 70% pro rata and then 30% sequentially to the note holders in order to offset the likely increased average LTV of the transaction following the Phoenix loan pre/repayment. Finally, for the Cygnet and Cheetah loans, the facility agreement also requires the borrowers to use all property disposal proceeds to prepay the respective loan. To originate the securitized loans, Morgan Stanley has worked together with Unifore DMC, which is a specialized Dutch real estate investment and asset management company. Unifore DMC helps Morgan Stanley source commercial real estate loans. All investment-grade notes will benefit from a liquidity facility of EUR [9.0] million, which equals to [4.4] % of the total outstanding balance of the covered notes and vertical risk retention loan interest and will be provided by [Wells Fargo Bank, N.A., London Branch]. The liquidity facility can be used to cover interest shortfalls on the Class A, B, C and D. According to DBRS's analysis, the commitment amount, as at closing, could provide interest payment on the covered notes up to [16] months and [8] months based on the interest rate cap strike rate of circa 1.8% and the Euribor cap of 5% (in respect of the pro rata share of any loan which has passed its maturity), respectively. DBRS has analyzed several scenarios where a particular loan pre/repays and the impact of scheduled amortization on the assigned ratings. DBRS concluded the assigned ratings would still apply in such scenarios. The transaction is expected to repay on or before [15 November 2023], [seven] days after the latest senior loan maturity. Should a loan default before the expected note maturity, a special servicing transfer event will occur in respect of the defaulted loan and the proceeds from the defaulted loan will be applied sequentially to the notes. Should the notes fail to be redeemed in full by the expected note maturity, the issuer will make principal payments on a sequential basis. The transaction will be structured with a five-year tail period to allow the special servicer to work out loans not repaid at maturity by [15 November 2028] at the latest, which is the final legal maturity of the notes. The Class E notes are subject to an available funds cap where the shortfall is attributable to an increase in the weighted-average margin of the notes. The transaction includes a Class X diversion trigger event over two levels, which are depending on the percentage of defaulted outstanding loan amount in the transaction. If between 25% and 50% of the outstanding loan balance is in default, 25% of the excess spread will be diverted into the Issuer transaction account and credited to the Class X diversion ledger. Should the defaulted loan amount increase to over 50% of the then total outstanding loan amount, all excess spreads will be diverted and credited to Class X diversion ledger. No excess spread will be diverted after expected note maturity, as excess spread will then be fully subordinated to principal due on the notes on a sequential basis. However, if the trigger is cured for two consecutive interest payment dates, the held amount will be released back to the Class X note holders. Should the Class X diversion trigger event continue for two consecutive note payment dates (excluding the note payment day on which the trigger was activated), any amount standing to the credit of the Class X diversion ledger for the same period will be swept to form part of the principal available funds. Morgan Stanley will retain a 5% material interest in the transaction through the vertical risk retention loan interest. Notes: All figures are in euros unless otherwise noted. ========= I T A L Y ========= BANCA CARIGE: Italian Banks to Inject Funds to Boost Capital ------------------------------------------------------------ Reuters reports that Italy's Banca Carige confirmed on Nov. 12 it will get up to EUR400 million (US$451 million) from the country's biggest banks and private investors to meet a European Central Bank year-end deadline to boost its capital. Carige, which has fallen behind in the clean-up that has seen rivals shed bad debts, said in a statement that it would issue a subordinated convertible bond for between EUR320 million and EUR400 million, Reuters relates. According to Reuters, Carige said Italian banks had guaranteed they would buy bonds worth EUR320 million, with a further EUR80 million earmarked for private investors, possibly including existing shareholders. The Genoa-based bank, which is heavily exposed to the economy of the northwestern Liguria region, has twice this year failed to issue subordinated debt due to the high yields demanded by investors, Reuters discloses. The ECB has given it until Nov. 30 to detail how it will fill its capital gap, Reuters notes. The process will be carried out through a section of Italy's depositors' guarantee fund dubbed "Voluntary Scheme", to which all the main banks contribute to avoid falling foul of European state aid rules, Reuters states. * * * As reported by the Troubled Company Reporter-Europe on Oct. 12, 2018, Fitch Ratings downgraded Banca Carige's Long-Term Issuer Default Rating to 'CCC+' from 'B-' and the bank's Viability Rating to 'ccc+' from 'b-'. The ratings have been placed on Rating Watch Negative. The downgrade reflects Fitch's view that the bank's failure is a real possibility because Fitch believes that it will be challenging for the bank to strengthen its capital, which could ultimately lead to regulatory intervention. The bank currently does not meet its Pillar 2 requirement for total capital and plans to issue Tier 2 debt to reach it, which is likely to be difficult in the changed market conditions for Italian banks. Carige's largest shareholder has stated it would support the bank but has not made a firm commitment to subscribe to the entire EUR200 million of Tier 2 debt the bank plans to issue. =================== K A Z A K H S T A N =================== NOMAD LIFE: A.M. Best Affirms B- (Fair) Financial Strength Rating ----------------------------------------------------------------- A.M. Best has affirmed the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of "bb-" of Nomad Life Insurance Company JSC (Nomad Life) (Kazakhstan). The outlook of these Credit Ratings (ratings) remains stable. The ratings reflect Nomad Life's balance sheet strength, which A.M. Best categorizes as strong, as well as its strong operating performance, limited business profile and weak enterprise risk management. Nomad Life's balance sheet strength benefits from risk-adjusted capitalization being at the strong level, as measured by Best's Capital Adequacy Ratio. However, risk-adjusted capitalisation is subject to volatility due to reserve movements in the company's workers' compensation account (approximately 40% of the net premium written). Furthermore, the company's asset base is highly exposed to the high financial system risk in Kazakhstan. Nomad Life's operating performance is strong, albeit volatile, as demonstrated by a weighted five-year average return on equity of 70.7% (2013-2017), which has ranged between 13.4% and 158.1% over this period. The company's performance generally benefits from a high level of investment income, reflective of the high interest and inflation rate environment in Kazakhstan. Prospective performance is likely to remain volatile due to fluctuating levels of reserves and investment earnings, as well as uncertainty regarding the profitability of the company's expanding life book. Nomad Life has an established business profile in Kazakhstan, with a 23% share of the local life market, measured by gross written premium in 2017. A.M. Best expects moderate growth going forward, driven by savings business and pension annuities following changes in regulation that will create opportunities for these products. An offsetting factor for business profile is the company's exposure to sudden changes in the operating or regulatory environment, which are typical in the Kazakh insurance market. In addition, the principal line of business written is compulsory workers' compensation business, which A.M. Best considers high risk. =============== P O R T U G A L =============== HEFESTO STC: DBRS Confirms B (low) Rating on Class B Notes ---------------------------------------------------------- DBRS Ratings Limited confirmed its ratings assigned of Hefesto, STC, S.A. (the Issuer) as follows: -- Class A at BBB (sf) -- Class B at B (low) (sf) The notes are backed by a portfolio of secured and unsecured Portuguese non-performing loans originated by Caixa Economica Montepio Geral (CEMG). The CEMG Group is part of the Montepio Group. The majority of loans in the portfolio defaulted between 2011 and 2017 and is in various stages of the resolution process. The secured loans are serviced by Whitestar Asset Solutions S.A. (Whitestar). The unsecured loans are serviced by HG PT, Unipessoal, Lda (Hipoges). Where a borrower has both secured and unsecured loans, the servicing is undertaken by Whitestar. Given the nature of the collateral and the defaulted status of all loans included in the portfolio, the collections received will be the primary source of payment under the notes. As a result, there is a significant reliance on Whitestar and Hipoges' ability and performance as servicers in executing their respective business plans. DBRS views the granularity of the portfolio, the presence of a cash reserve and the experience of the servicers as mitigating factors with regard to this risk. The ratings are based on DBRS's analysis of the projected recoveries of the underlying collateral, the historical performance, expertise of the servicers, the availability of liquidity to fund interest shortfalls and special-purpose vehicle expenses, the cap agreement with J.P. Morgan AG and the transaction's legal and structural features. In its analysis, DBRS assumed that all loans are disposed through both a judicial and an extra-judicial resolution strategy. Both DBRS's timing and value stresses are based on the historical repossessions data of the servicers, Whitestar and Hipoges. DBRS's BBB and B (low) initial ratings assumed a haircut of 23.6% and of 4.9%, respectively, to the servicer's business plans for the portfolio. As of the May 2018 investor report, the principal amount outstanding of the Class A and Class B notes was equal to EUR 104.1 million and EUR 19.5 million, respectively. The balance of the Class A notes amortized by approximately 16% since issuance. The Class B notes will not be repaid until the Class A notes are repaid in full. The Class J notes do not receive any issuer available funds until the Class A and Class B notes are repaid in full. The current aggregated transaction balance is equal to EUR 157.4 million. As per the investor report of May 2018, the actual cumulative gross disposition proceeds (GDP) accounted for EUR 22.6 million in the first seven months after closing. The servicers' initial business plan assumed cumulative net GDP equal to EUR 6.5 million, which is lower than the actual amount collected to date. The transaction cash flow structure was analyzed in Intex DealMaker. Notes: All figures are in euros unless otherwise noted. =========================== U N I T E D K I N G D O M =========================== BHS GROUP: WPC Chairman to Continue Probe Into 2016 Collapse ------------------------------------------------------------ Holly Roach at Professional Pensions reports that Work and Pensions Committee chairman Frank Field will continue his probe of former BHS owner Sir Philip Green as he prepares to meet Insolvency Service chief executive Sarah Albon later this month. According to Professional Pensions, Mr. Field is seeking to obtain, in private, "further details" of the Insolvency Service's investigation around the 2016 collapse of BHS, including learning more about a pre-sale audit of the high street giant. It comes after details emerged in June of a GBP6.5 million fine levied by the Financial Reporting Council (FRC) against auditor PwC for its 2014 audit of Green's Taveta Group accounts, Professional Pensions relates. The accounts, which included BHS, were signed off as a "going concern" five days prior to the GBP1 sale of the high street store in 2015 -- and a year before the company's collapse, which saw thousands of members' pension benefits facing cuts, Professional Pensions discloses. PwC accepted the FRC's initial findings and the penalty levied against it, Professional Pensions recounts. In correspondence published on Nov. 11 by the WPC, Mr. Field, as cited by Professional Pensions, said it was "difficult to believe" that the incident was an "isolated case". FLOWGROUP PLC: Board Appoints Joint Administrators -------------------------------------------------- Further to its previous announcements regarding ongoing negotiation with creditors, Flowgroup plc on Nov. 9 provided the following update: Flowgroup sold its principal subsidiary Flow Energy Limited on May 1, 2018. Since that time, the Company has explored the possibility of a reverse takeover but has been unable to identify any viable opportunities. The board on Nov. 9 appointed Geoff Rowley -- geoff.rowley@frpadvisory.com -- and Philip Armstrong -- phil.armstrong@frpadvisory.com -- of FRP Advisory LLP as joint administrators of the Company. Cenkos Securities plc, the Company's nominated adviser, has resigned with immediate effect. Trading in the Company's shares is currently suspended. In accordance with AIM Rule 1, unless the Company appoints another nominated adviser within one month from Nov. 9, the admission of its securities to trading on AIM will be cancelled ("Cancellation"). Given the circumstances, the Company believes that it is unlikely to appoint another nominated adviser and therefore expects that Cancellation will occur. The joint administrators will correspond with the Company's creditors and shareholders regarding the administration process in accordance with their duties. The Company reiterates that it does not expect any value to be distributed to shareholders in any event. MOCA 2017-1: DBRS Hikes Class E Notes Rating to B (high) -------------------------------------------------------- DBRS Ratings Limited upgraded the ratings of the following bonds issued by Marketplace Originated Consumer Assets 2017-1 PLC (MOCA or the Issuer): -- Class A Notes upgraded to AA (sf) from AA (low) (sf) -- Class B Notes upgraded to A (high) (sf) from A (sf) -- Class C Notes upgraded to A (sf) from BBB (sf) -- Class D Notes upgraded to BBB (low) (sf) from BB (sf) -- Class E Notes upgraded to B (high) (sf) from B (sf) The ratings address the timely payment of interest and ultimate payment of principal on or before the legal final maturity date. The rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults and losses as of the October 2018 payment date. -- Probability of default (PD), loss given default (LGD) and expected loss assumptions on the remaining receivables. -- Current available credit enhancement (CE) to the notes to cover the expected losses at their respective rating levels. MOCA is a securitization of receivables related to unsecured consumers loans granted by P2P Global Investments PLC via a marketplace lending platform operated by Zopa Limited (Zopa) to borrowers in the United Kingdom. Zopa acts as the platform servicer with Target Servicing Limited appointed as a backup servicer. The loans are all amortizing, unsecured in nature, pay fixed installments, and are assigned to specific risk markets. The loans are typically used for home improvements, debt consolidation or for the purchase of a vehicle. PORTFOLIO PERFORMANCE As of October 2018 payment date, loans that were one- to two- months in arrears represented 0.6% of the outstanding portfolio balance, whereas the two- to three-month arrear ratio was 0.4%. The cumulative default ratio was 2.5%. PORTFOLIO ASSUMPTIONS DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and has maintained its base case PD and LGD assumptions at 6.2% and 85.0% respectively. CREDIT ENHANCEMENT As of the October 2018 payment date, credit enhancement increased since the DBRS initial rating: -- For the Class A Notes, CE was 36.7%, up from 20.2% -- For the Class B Notes, CE was 30.2%, up from 16.2% -- For the Class C Notes, CE was 23.7%, up from 12.2% -- For the Class D Notes, CE was 17.2%, up from 8.2% -- For the Class E Notes, CE was 12.3%, up from 5.2% The transaction benefits from a liquidity reserve of currently GBP 1.2 million, equal to 1% of the outstanding balance of the rated notes. It is available to cover senior fees, expenses and interest shortfall on the most senior class of notes. The transaction benefits also from a cash reserve of currently GBP 1.2 million, equal to 1% of the outstanding balance of the rated notes. It is available to cover senior fees, expenses and interest shortfall on any class of notes, top up the liquidity reserve and clear the principal deficiency ledgers. Citibank, N.A. London Branch acts as the account bank for the transaction. The DBRS private rating of Citibank, N.A. London Branch is consistent with the Minimum Institution Rating, given the rating assigned to the Class A Notes, as described in DBRS's "Legal Criteria for European Structured Finance Transactions" methodology. The Royal Bank of Scotland plc (RBS) acts as the interest rate cap counterparty for the transaction. The DBRS Long Term Critical Obligations Rating of RBS stands at "A" and the transaction downgrade provisions are consistent with DBRS's "Derivative Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in British pound sterling unless otherwise noted. NEWDAY FUNDING 2018-2: DBRS Finalizes B Rating on Class F Notes --------------------------------------------------------------- DBRS Ratings Limited finalized provisional ratings of the Class A1, Class A2, Class B, Class C, Class D, Class E and Class F Notes (collectively, the Notes) issued by NewDay Funding 2018-2 plc (the Issuer) as follows: -- AAA (sf) of the Class A1 Notes -- AAA (sf) of the Class A2 Notes -- AA (high) (sf) of the Class B Notes -- A (sf) of the Class C Notes -- BBB (sf) of the Class D Notes -- BB (low) (sf) of the Class E Notes -- B (high) (sf) of the Class F Notes The ratings of the Notes address the timely payment of interest and ultimate repayment of principal by the legal maturity date. The ratings are based on the considerations listed below: -- The transaction capital structure including the form and sufficiency of available credit enhancement. -- Credit enhancement levels are sufficient to support DBRS's expected charge-off, payment and yield rates under various stress scenarios. -- The ability of the transaction to withstand stressed cash flow assumptions and repays the Notes according to the terms under which the Notes have been issued. -- NewDay Ltd (the Seller) and its delegates' capabilities with respect to originations, underwriting, servicing, data processing and cash management. -- DBRS conducted an operational risk review of the Seller and deems it to be an acceptable servicer. -- The transaction parties' financial strength with regard to their respective roles. -- The credit quality of the collateral and diversification of the collateral and historical and projected performance of the Seller's portfolio. -- The sovereign rating of the United Kingdom, currently rated AAA by DBRS. -- The general consistency of the transaction's legal structure with DBRS's "Legal Criteria for European Structured Finance Transactions" methodology, and the presence of legal opinions that address the true sale of the assets to the Issuer and non-consolidation of the Issuer with the Seller or transferor. Notes: All figures are in British pound sterling unless otherwise noted. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2018. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *