/raid1/www/Hosts/bankrupt/TCREUR_Public/190102.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, January 2, 2019, Vol. 20, No. 001


                            Headlines


B U L G A R I A

EIG RE: Fitch Assigns BB- IFS Rating, Outlook Stable


G E R M A N Y

HORNBACH BAUMARKT: Moody's Lowers CFR to Ba2, Outlook Stable
SC GERMANY 2018-1: DBRS Assigns BB(high) Rating to Class D Notes


I R E L A N D

GOLDENTREE LOAN 2: Fitch Rates EUR9.9MM Class F Debt 'B-'
PENTA CLO 5: Fitch Assigns B-sf Rating to Class F Notes
PROVIDUS CLO II: Moody's Rates EUR10.1MM Class F Notes 'B2'


I T A L Y

BANCA CARIGE: Capital Raising Fails, Mulls Rescue Options
MOBY SPA: Moody's Lowers CFR to Caa2 & Alters Outlook to Neg.
ICCREA BANCA: Fitch Lowers LT IDR to BB, Outlook Stable


N E T H E R L A N D S

BRIGHT BIDCO: S&P Affirms 'B' Long-Term ICR, Outlook Stable
SIGMA HOLDCO: Fitch Assigns B+ LT IDR, Outlook Stable


R U S S I A

BANK TRUST: In Talks with Bad Bank Over Bailout Recovery Rate
NIZHNIY NOVGOROD: Fitch Affirms BB LT IDRs, Outlook Stable
POLYUS PJSC: Fitch Raises LT IDR to BB, Outlook Stable
UC RUSAL: Appoints Jean-Pierre Thomas as New Chairman
VOZROZHDENIE BANK: S&P Affirms 'B+/B' ICRs, Outlook Positive


S P A I N

IM BCC CAPITAL 1: Fitch Rates EUR59.6MM Class D Notes 'CCC'
IM SABADELL: DBRS Confirms CCC(low) Rating on Series B Notes


S W E D E N

OREXO AB: Egan-Jones Hikes Senior Unsecured Ratings to BB


T U R K E Y

CIFT GEYIK: Applies for Creditor Protection
PETKIM PETROKIMYA: Fitch Affirms B Long-Term IDR, Outlook Stable
* TURKEY: 100+ Companies Apply for Bankruptcy Protection


U N I T E D   K I N G D O M

ALBA 2015-1: DBRS Hikes Class E Notes Rating to B(high)
BAMBINO PASTA: DBRS Confirms BB(low) Rating on Class F Notes
COLONNADE CRE 2017-1: DBRS Confirms BB(high) Rating on Tranche K
DIAMOND BANK: Fitch Lowers LT Issuer Default Rating to 'CC'
FERROGLOBE: S&P Assigns B+ Issuer Credit Rating, Outlook Negative

HMV GROUP: Enters Administration, KPMG Seeks Buyer for Business
PENTA CLO 5: Moody's Gives B2 Rating to EUR19.2MM Class F Notes
SLATE PLC 1: Moody's Affirms Ba1 Rating on Class E Notes


U Z B E K I S T A N

NATIONAL BANK: S&P Raises Long-Term Rating to BB-


                            *********



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B U L G A R I A
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EIG RE: Fitch Assigns BB- IFS Rating, Outlook Stable
----------------------------------------------------
Fitch Ratings has assigned Insurance Company EIG Re AD (EIG Re)
an Insurer Financial Strength (IFS) Rating of 'BB-'. The Outlook
is Stable.

KEY RATING DRIVERS

EIG Re's rating is aligned with its consolidated group IFS
assessment of Eurohold Bulgaria AD's core insurance subsidiaries.
This is based on its expected strategic status as a core captive
reinsurer of the Euroins Insurance Group (EIG).

EIG Re (formerly HDI Zastrahovane AD) is currently in the process
of being transformed into a captive reinsurance entity of EIG as
part of a broader strategic capital optimisation plan. In its new
function, EIG Re will be responsible for managing reinsurance for
and on behalf of all EIG insurance operating subsidiaries and act
as a central counterparty for purchasing external reinsurance.

In the proposed structure all EIG operating subsidiaries will
cede all risks to EIG Re (apart from minor exceptions), which
will be partly retained and partly ceded further to external
reinsurers. Fitch expects EIG Re's business will remain entirely
internal in the start-up phase with a gradually increasing share
of inward reinsurance in the medium-term.

If, over time, the proportion of non-internal business written
becomes materially large Fitch could cease to view EIG Re as a
captive reinsurer and instead assess it as an external facing
operating subsidiary under its group rating methodology. However,
Fitch expects the proportion of non-internal business to remain
low over the one-to-two year rating horizon.

Fitch expects that, due to its strategic importance as a captive
reinsurer, EIG will keep EIG Re sufficiently capitalised and in a
sound financial condition.

RATING SENSITIVITIES

EIG Re's rating is subject to the same sensitivities as Eurohold
Bulgaria AD's core insurance subsidiaries.



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G E R M A N Y
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HORNBACH BAUMARKT: Moody's Lowers CFR to Ba2, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded the long-term corporate
family rating of Hornbach Baumarkt AG, the German DIY-store
chain, to Ba2 from Ba1. Concurrently Moody's downgraded the
company's Probability of Default Rating to Ba2-PD from Ba1-PD and
the rating on the EUR250 million worth of senior unsecured notes
due in 2020 to Ba2 from Ba1. The outlook is stable.

"T[he] downgrade to Ba2 reflects Hornbach's weaker-than-expected
profitability and the resulting deterioration in credit metrics
to levels inconsistent with the Ba1 rating," says Francesco
Bozzano, lead analyst for Hornbach. "The stable outlook factors
in the expectation that the company will be able to gradually
improve its profitability from the current low level while
maintaining adequate liquidity", Mr. Bozzano added.

RATINGS RATIONALE

The downgrade reflects the deterioration in Hornbach's
profitability on the back of ongoing cost increases and intense
competition that has created pressure on margins, with limited
prospects of rapid recovery. On December 10, Hornbach revised its
profit guidance for the year by over 10%. As a consequence,
Moody's expects that the company's leverage, as measured by
Moody's Adjusted (gross) Debt/ EBITDA will increase to 4.1x in
the year ending February 2019 (fiscal 2018), a level which is not
consistent with the Ba1 rating, while the company's cash balance
has eroded, implying a more pronounced deterioration of the net
leverage. The rating agency anticipates that adjusted gross
leverage will not improve in the next 12-18 months. The
deteriorating performance and in turn the increase in leverage is
the result of procurement and operating costs increases which
Moody's expects will reduce fiscal 2018 EBITDA to around EUR160
million, compared to around EUR173 million in fiscal 2017.

Despite positive sales growth of around 5% in the first nine
months of fiscal 2018, the company's procurement and operating
costs have increased at a faster pace. Procurement cost increase,
mainly related to shipping costs and raw material cost inflation
intensified in Q3 of fiscal 2018 leading the company to issue a
profit warning on December 10, 2018. These add to the ongoing
pressure on margins from digitalization cost increases (mainly
customer service, personnel costs for running the e-business, IT
infrastructure/ technology) and store refurbishment costs.

Moody's expects some recovery in EBITDA in the next 12-18 months
as sales should continue to moderately grow despite more
challenging macroeconomic conditions and costs are expected to
stabilize, although this will not be sufficient to reduce
leverage below 4.0x since Moody's expects that the modest
recovery in EBITDA in the next 12-18 months will be offset by
some debt drawing necessary to compensate for the expected
negative free-cash flow and to maintain a cash balance of around
EUR 100 million in fiscal 2018.

Hornbach's liquidity profile is adequate as it benefits from
around EUR96.6 million cash on the balance sheet as of August 31,
2018 and an undrawn committed EUR350 million five-year revolving
credit facility maturing in December 2023. Moody's expects the
company to refinance the EUR250 million worth of senior unsecured
notes well in advance of their maturity in February 2020.

Hornbach's credit profile continues to reflect the company's (1)
strong position in its domestic market and good geographical
diversification across Europe; (2) positive underlying growth, as
reflected by its ability to outperform the market; and (3)
balanced financial policy with moderate funded debt on its
balance sheet, although the company's cash balance has come down
over the last few years.

However, the rating is constrained by the company's (1) weakened
profitability due to intense competition in the do-it-yourself
(DIY) industry in Germany and the high level of digitalisation
costs; (2) gross adjusted financial leverage of 4.1x, as measured
by Moody's Adjusted Debt/EBITDA, in fiscal 2018; (3) relatively
small size compared with other European retailers; and (4) high
level of capital spending associated with new store openings,
which lead to negative free cash flow generation.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook is predicated on the expectation of a slightly
improving trend in profitability over the next 12-18 months and a
broadly stable leverage around 4.1x. The stable outlook reflects
also Moody's expectation that Hornbach will maintain sufficient
liquidity and will refinance at least partly the EUR250 million
worth of senior unsecured notes well in advance of their maturity
in February 2020.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings in the medium term could be
exerted as a result of Hornbach's financial leverage decreasing
below 4.0x on a sustained basis. A higher rating would also
require the company to strengthen its Moody's Adjusted EBIT
margin above 4% on a sustained basis and to generate positive
free cash flow.

Conversely, downward pressure could be exerted on the ratings as
a result of Hornbach's financial leverage increasing above 4.5x,
or in case of further margin pressure due to adverse market
conditions. Whilst not expected, material debt-funded
acquisitions or shareholder return initiatives would also
increase downward pressure on the rating.

CORPORATE PROFILE

Hornbach Baumarkt AG is a mid-sized DIY retailer mainly operating
in Germany, with 98 stores as of the end of fiscal 2017, and
other European countries, including Austria (14), the Netherlands
(13), the Czech Republic (10), Switzerland (6), Romania (6)
Sweden (5), Slovakia (3) and Luxembourg (1). The company reported
sales of EUR3.9 billion as of the end of fiscal 2017, an increase
of 5.0% from the previous year.

Hornbach's shares are listed on the Frankfurt Stock Exchange.
Hornbach's parent company, Hornbach Holding AG & Co. KGaA, owns
76.4% of Hornbach's share capital, while independent investors
own 23.6%. In turn, the Hornbach family owns 37.5% of Hornbach
Holding's total share capital, and the remaining 62.5% are free
float.


SC GERMANY 2018-1: DBRS Assigns BB(high) Rating to Class D Notes
----------------------------------------------------------------
DBRS Ratings Limited assigned ratings to the Class A, Class B,
Class C and Class D Notes (collectively with the unrated Class E
Notes and Class F Notes, the Notes) issued by SC Germany Consumer
2018-1 UG (the Issuer) as follows:

-- AA (low) (sf) to the Class A Notes
-- A (sf) to the Class B Notes
-- BBB (sf) to the Class C Notes
-- BB (high) (sf) to the Class D Notes

The rating of the Class A Notes addresses the timely payment of
interest and ultimate repayment of principal by the legal final
maturity date. The ratings of the Class B, Class C and Class D
Notes address the ultimate payment of interest and ultimate
repayment of principal by the legal final maturity date.

The Notes are backed by a revolving pool of receivables from
general purpose consumer loans granted to individuals residing in
Germany and are originated and serviced by Santander Consumer
Bank AG (SCB), which is owned by Santander Consumer Finance S.A.

The ratings are based on the considerations listed below:

  -- The transaction capital structure including the form and
sufficiency of available credit enhancement.

  -- The ability of the transaction's structure and triggers to
withstand stressed cash flow assumptions and repays the Notes
according to the terms of the transaction documents.

-- The transaction parties' capabilities with respect to
originations, underwriting, servicing and financial strength.

-- The credit quality of the collateral and diversification of
the collateral and historical and projected performance of SCB's
portfolio.

-- The sovereign rating of the Federal Republic of Germany,
currently rated AAA with a Stable trend by DBRS.

-- The 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.

The transaction cash flow structure was analyzed in Intex
Dealmaker.

Notes: All figures are in euros unless otherwise noted.



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I R E L A N D
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GOLDENTREE LOAN 2: Fitch Rates EUR9.9MM Class F Debt 'B-'
---------------------------------------------------------
Fitch Ratings has assigned GoldenTree Loan Management EUR CLO 2
DAC final ratings, as follows:

EUR2 million Class X: 'AAAsf'; Outlook Stable

EUR240 million Class A: 'AAAsf'; Outlook Stable

EUR10.5 million Class B-1-A: 'AAsf'; Outlook Stable

EUR12 million Class B-1-B: 'AAsf'; Outlook Stable

EUR15 million Class B-2: 'AAsf'; Outlook Stable

EUR15.7 million Class C-1-A: 'Asf'; Outlook Stable

EUR12 million Class C-1-B: 'Asf'; Outlook Stable

EUR28 million Class D: 'BBB-sf'; Outlook Stable

EUR24.3 million Class E: 'BB-sf'; Outlook Stable

EUR9.9 million Class F: 'B-sf'; Outlook Stable

EUR35.47 million subordinated notes: 'NRsf'

GoldenTree Loan Management EUR CLO 2 DAC is a cash flow
collateralised loan obligation (CLO) comprising primarily
European senior secured obligations (at least 96%) with a
component of senior unsecured, mezzanine and second-lien
obligations. Net proceeds from the issue of the notes are being
used to purchase a collateral portfolio with a target par of
EUR400 million.

The collateral portfolio is actively managed by GoldenTree Loan
Management LP. The CLO envisages a 4.5-year reinvestment period
and an 8.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 32.5.

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 Fitch-weighted average recovery rating (WARR) of the
identified portfolio is 64.5%.

Diversified Asset Portfolio

The transaction features two different test matrices with
different allowances for exposure to the 10-largest obligors
(maximum 16% and 20%) The manager can interpolate between these
matrices. 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 4.5-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. The
modelled cash flow waterfall has been standardised so that both
interest and deferred interest for a given class are paid prior
to the corresponding coverage test. This differs slightly from
the transaction waterfall where deferred interests are paid after
the corresponding coverage test. However, the waterfall
difference was found to be immaterial.

Limited Interest Rate Risk

Up to 10% of the portfolio can be invested in unhedged fixed-rate
assets, while fixed-rate liabilities represent 3.75% of the
target par. 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.

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 three 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.


PENTA CLO 5: Fitch Assigns B-sf Rating to Class F Notes
-------------------------------------------------------
Fitch Ratings has assigned Penta CLO 5 Designated Activity
Company's notes final ratings, as follows:

Class X: 'AAAsf'; Outlook Stable

Class A-1: 'AAAsf'; Outlook Stable

Class A-2: 'AAAsf'; Outlook Stable

Class B-1: 'AAsf'; Outlook Stable

Class B-2: 'AAsf'; Outlook Stable

Class C: 'Asf'; Outlook Stable

Class D: 'BBBsf'; Outlook Stable

Class E: 'BBsf'; Outlook Stable

Class F: 'B-sf'; Outlook Stable

Subordinated notes: 'NRsf'

Penta CLO V DAC is a cash flow collateralised loan obligation
(CLO). Net proceeds from the notes are being used to purchase a
portfolio of EUR400 million of mostly European leveraged loans
and bonds. The portfolio is actively managed by Partners Group
(UK) Management Limited. The CLO envisages a 4.1-year
reinvestment period and an 8.5-year weighted average life (WAL)

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the
'B'/'B-' range. The Fitch-weighted average rating factor (WARF)
of the identified portfolio is 33.38.

High Recovery Expectations

At least 92.5% 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 67.77%.

Diversified Asset Portfolio

The transaction features four different Fitch test matrices with
different allowances for exposure to the 10-largest obligors
(maximum 17% and 20%), which ensures that the asset portfolio
will not be exposed to excessive obligor concentration. The
matrices also allow for different maximum fixed-rate assets
concentration. The manager can interpolate between these
matrices.

Reinvestment Criteria Similar to Peers

The transaction features a 4.1-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.

Ratings Resilient to Rate Mismatch

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. A
maximum of 5% of the portfolio can be invested in fixed-rate
assets, while fixed-rate liabilities represent 1.25% of the
target par. Fitch modelled both 0% and 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 five notches for the rated notes.


PROVIDUS CLO II: Moody's Rates EUR10.1MM Class F Notes 'B2'
-----------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Providus CLO II
Designated Activity Company:

EUR217,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned Aaa (sf)

EUR22,500,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned Aa2 (sf)

EUR9,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned Aa2 (sf)

EUR26,300,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned A2 (sf)

EUR20,100,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned Baa3 (sf)

EUR20,100,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned Ba2 (sf)

EUR10,100,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned B2 (sf)

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 Permira Debt
Managers Group Holdings Limited ("Permira") has sufficient
experience and operational capacity and is capable of managing
this CLO.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to
10% of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds.
The portfolio is expected to be 90% ramped as of the closing date
and to comprise of predominantly corporate loans to obligors
domiciled in Western Europe. The remainder of the portfolio will
be acquired during the 7-months ramp-up period in compliance with
the portfolio guidelines.

Permira will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations and/or credit improved obligations, and are
subject to certain restrictions.

In addition to the seven classes of notes rated by Moody's, the
Issuer has issued EUR 36,200,000.00 of Subordinated Notes which
are not 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.

The Credit Ratings of the notes issued by Providus CLO II
Designated Activity Company were assigned in accordance with
Moody's existing Methodology entitled "Moody's Global Approach to
Rating Collateralized Loan Obligations" dated August 31, 2017.
Please note that on November 14, 2018, Moody's released a Request
for Comment, in which it has requested market feedback on
potential revisions to its Methodology for Collateralized Loan
Obligations. If the revised Methodology is implemented as
proposed, the Credit Rating of the notes issued by Providus CLO
II Designated Activity Company may be neutrally affected.

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:

Par Amount: EUR 350,000,000.00

Diversity Score: 42(*)

Weighted Average Rating Factor (WARF): 2815

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 43.00%

Weighted Average Life (WAL): 8.5 years

(*) The covenanted base case Diversity Score is 43, however
Moody's has assumed a diversity score of 42 as the transaction
documentation allows for the diversity score to be rounded up to
the nearest whole number whereas usual convention is to round
down to the nearest whole number.

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 of below cannot exceed 10%
and obligors cannot be domiciled in countries with LCC below A3.



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I T A L Y
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BANCA CARIGE: Capital Raising Fails, Mulls Rescue Options
---------------------------------------------------------
Rachel Sanderson at The Financial Times reports that the collapse
of a capital raising at midsized bank Carige could lead it to be
put into resolution this year.

It also risks wider repercussions, adding to investor jitters
about Italy and fanning populist anger over banks and big
business, the FT states.

The Malacalza family, steel billionaires with a 27.7% stake in
Carige, abstained from voting for an emergency EUR400 million
capital increase at a shareholder vote on Dec. 22, the FT
discloses.

The family had already twice changed the management team and lost
hundreds of millions of euros in earlier attempts to shore up the
bank after a fraud scandal left a hole in its balance sheet, the
FT recounts.

But the decision was still unexpected, the FT states.  The
capital call was the third leg of a deal agreed with supervisors
to keep the bank alive, the FT notes.  A new bond and new
business plan had already been agreed, according to the FT. The
European Central Bank had given Carige until the end of 2018 to
close a capital shortfall or find an acquirer, the FT discloses.

Carige, the FT says, could suffer the fate of the Veneto banks,
unless some white knight -- the government or a buyer -- rides to
the rescue in the coming weeks.

Another possibility is that Italy's banking system, which owns
EUR320 million of Carige debt through the interbank deposit
guarantee fund, could convert that into equity, in effect taking
ownership, the FT relates.

Carige, Italy's 10th largest bank by assets, had EUR16.3 billion
of deposits at the end of September and its market value is just
EUR89 million, the FT states.


MOBY SPA: Moody's Lowers CFR to Caa2 & Alters Outlook to Neg.
-------------------------------------------------------------
Moody's Investors Service has downgraded Italian ferry operator
Moby S.p.A.'s corporate family rating (CFR) to Caa2 from Caa1 and
its probability of default rating (PDR) to Caa2-PD from Caa1-PD.
The outlook on the ratings has been changed to negative from
stable. Concurrently, Moody's has downgraded the rating assigned
to the EUR300 million worth of senior secured notes to Caa1 from
B3.

"Our rating action reflects Moby's very weak trading performance
and significant cash burn during its key third quarter period,
which translate into increased liquidity risks", says Guillaume
Leglise, a Moody's Assistant Vice President and lead analyst for
Moby. "Moby's downgrade also reflects increased likelihood of a
debt restructuring or a distressed exchange in our view, given
the potential liquidity shortfall that the company is facing over
the next 12 to 18 months" add Mr Leglise.

RATINGS RATIONALE

  - CFR DOWNGRADE TO Caa2 -

The CFR downgrade to Caa2 reflects Moby's increased business risk
resulting from Moby's very weak trading performance during its
third quarter of the year. Moby's reported EBITDA declined
significantly during the first 9 months of 2018, down by 35% to
EUR68 million from EUR104 million (excluding capital gains of
EUR10 million in 2017) during the same period last year. Despite
slightly positive growth in revenues, notably thanks to increased
volumes in the freight business, Moby's earnings were
dramatically impacted by increased fuel costs, resulting from
higher consumption and higher bunker prices in 2018, notably
during the peak Q3 period. Consequently, Moody's estimates the
company's leverage (measured as Moody's-adjusted gross
debt/EBITDA) to have increased to around 7.2x at end-September
2018, from 6.5x at year-end 2017.

In addition, Moby's liquidity has further deteriorated in 2018,
owing to lower earnings, adverse working capital movements and
sustained capital requirements. Despite a cash balance of EUR125
million at end-September 2018, Moody's estimate that Moby's
liquidity profile will rapidly deteriorate because of significant
cash outflows in the next 12 months, notably a mandatory debt
repayment of EUR50 million due in February 2019 under the
company's amortizing bank loan. Given the limited earnings
recovery prospects in 2019, sustained maintenance capital
expenditures and seasonal working capital swings, Moody's
believes that the company will potentially face a liquidity
shortfall in the next 12 to 18 months.

In addition, Moby faces a heavy investment cycle in the next 2-3
years due to the capital spending needed to comply with the
upcoming International Maritime Organisation's (IMO) 2020 lower
global sulphur cap on marine fuels. While the company has not
provided any guidance on the required investments and its
financing, Moody's estimates the total investment for installing
scrubbers to be in the range of EUR70-100 million in total, to be
spread over several years.

Besides that, there are still material uncertainties related to
the phasing of potential payments to be made under the Italian
anti-trust fine and the ongoing European Commission (EC)
investigation, which could overwhelm its financial resources
though with an undetermined timing. Moody's notes that the EUR29
million Italian antitrust fine is currently suspended during the
appeal process, which will resume from May 2019.

In addition, the ongoing EC investigation into Tirrenia-CIN's
subsidies received since 2012 carries significant uncertainties.
The timing and outcome of the EC investigation remains uncertain.
But Moody's cautions that should the EC outcome require a
reduction in the subsidies, Moby could be asked to reimburse the
excess subsidies received in the past, which could weigh on
Moby's liquidity profile, though Moody's would expect this to be
offset by a reduction in the EUR180 million deferred payments. At
the same time, even a positive outcome under the investigation
would imply a resumption of the deferred payments which are
currently suspended.

Under a possible scenario of a payment of the anti-trust fine
combined with a conclusion of the EC investigation, both
occurring within the next 18 months, Moody's believes that Moby
would not have enough financial resources to pay its obligations.
Also, Moody's notes that Moby's EUR60 million revolving credit
facility (RCF) was fully drawn as at end-September 2018, which
leaves limited financial flexibility to the company.

The rating action also factors in Moody's expectations that Moby
is at risk of breaching its net leverage covenant for the next
testing period at end-December 2018 (set at maximum 5.5x), absent
any asset disposals or material reversal of working capital
during the last quarter of this year. Moby's net leverage
threshold goes down to 3.5x for the June-2019 testing. Moody's
does not expect a material recovery of Moby's earnings and cash
flows in 2019. Consequently, the June-2019 net leverage covenant
test is very likely to be breached in Moody's view. Moby will
very likely seek to negotiate a waiver for this covenant, after
the reset already obtained this year.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects Moody's concerns over Moby's
heightened liquidity risk because of material debt repayments in
the next 12 to 18 months. The negative outlook reflects the
company's weakening profitability which leaves limited financial
flexibility to the company or capacity to access financing. The
outlook also reflects limited recovery in earnings owing to
sustained competitive pressure and because recent strategic
initiatives will take time to become profitable. As such, Moody's
views deleveraging prospects and free cash flow generation as
limited in the next few quarters.

STRUCTURAL CONSIDERATIONS

The downgrade of the rating assigned to the EUR300 million senior
secured notes to Caa1 from B3 reflects the downgrade of the CFR.
However, the notes are rated one notch above the CFR. This uplift
reflects the significant amount of obligations which are junior
to the senior notes and bank facilities in the capital structure,
notably the EUR180 million deferred payments due by Tirrenia-CIN.
These deferred payments are unsecured obligations and are
subordinated to the issuer's notes and credit facilities
instruments with respect to the collateral enforcement proceeds.
However, Moody's cautions that in case of a very adverse decision
from the EC investigation, the one-notch uplift could be removed
as the unsecured liabilities would potentially be reduced or even
disappear from the financing structure.

The notes rank pari passu with the issuer's EUR150 million worth
of secured term loan due 2021 and the EUR60 million RCF due 2021.
The notes are secured on a first-priority basis by most of the
group's assets (including mortgages over Moby and Tirrenia-CIN's
vessels) and benefit from a guarantor package including upstream
guarantees from Moby and Tirrenia-CIN, representing more than 90%
of the group's EBITDA.

The PDR of Caa2-PD reflects the use of a 50% family recovery
assumption, consistent with a capital structure including a mix
of bond and bank debt.

WHAT COULD CHANGE THE RATINGS DOWN/UP

An upgrade is unlikely at this stage in light of the action. Over
time, upward pressure on the rating could develop if Moby
restores its profitability and materially improves its free cash
flow generation, with leverage reduction to below 6.5x. Also, a
rating upgrade would require liquidity to strengthen, supported,
for instance, by more ample covenant headroom, and more
visibility over potential future cash outflows in relation to the
Italian antitrust fine and the EC investigation.

Conversely, Moody's could downgrade the ratings if Moby's free
cash flow generation deteriorates as a result of a further drop
in operating performance or higher-than-expected capital
expenditure. In addition, the ratings could be downgraded if
Moby's liquidity were to deteriorate further; for instance (1)
because of very adverse scenario under the appeal of the
antitrust court process or EC investigation, (2) if the company
is in default under its financial covenants.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Shipping
Industry published in December 2017.

Domiciled in Milan, Italy, Moby S.p.A. is a maritime
transportation operators focusing primarily on passengers and
freight transportation services in the Tyrrhenian Sea, mainly
between continental Italy and Sardinia. Through Moby and its main
subsidiary Tirrenia-CIN, the company operates a fleet of 64
ships, of which 47 are ferries and 17 tugboats. In 2017, the
company recorded revenues of EUR586 million and EBITDA of
EUR131.8 million.


ICCREA BANCA: Fitch Lowers LT IDR to BB, Outlook Stable
-------------------------------------------------------
Fitch Ratings has downgraded Iccrea Banca's and its main
subsidiary Iccrea BancaImpresa's Long-Term Issuer Default Ratings
to 'BB' from 'BB+' and Viability Ratings (VRs) to 'bb' from
'bb+'. The Outlooks on the Long-Term IDRs are Stable.

The downgrade primarily reflects Fitch's view that the group's
NPL deleveraging is significantly slower than its domestic peers,
which continues to weigh on capitalisation, while profitability
has weakened.

In 1Q19, IB will become the parent of the fourth-largest banking
group in Italy, aggregating nearly 140 mutual banks, which will
underwrite a contract of cohesion with a cross-guarantee
mechanism. Under this scheme, the parent bank ensures viability
of the affiliated banks, essentially redistributing capital and
liquidity from stronger members to support the weaker ones. Based
on the information available to Fitch to date, its base case
expectation is that the new group's credit profile will remain
commensurate with the 'BB' rating.

KEY RATING DRIVERS

IDRS, VRS AND SENIOR DEBT

IB's and IBI's ratings reflect the group's moderate franchise as
a central institution for the Italian mutual banks (BCCs or BCC
sector), which generates modest returns in the corporate and SME
space, and a business model that will soon evolve, given the new
organisational structure. Fitch considers that the BCC reform,
which will lead to the creation of two large cooperative groups
competing on a national scale (one of which will be under IB),
will strengthen a highly fragmented BCC sector, with potential to
improve corporate governance, transparency and cost-efficiency.

Over the past two years, IB has been involved in the creation of
the new group, including the design of the new organisation,
hiring of several senior executives, the set-up of a new risk
appetite framework and activities related to the Asset Quality
Review (AQR) the ECB will undertake in 1H19. Due to this
involvement, in its opinion less focus has been given to NPL
reduction and achieving core profitability improvement.

Despite the slower inflow of NPLs, IB's asset quality remains
weak. At end-1H18, the impaired loans ratio at over 20% of gross
loans (excluding securities at amortised cost) was significantly
above the approximately 12% domestic average, reflecting slower
NPL reduction compared with domestic peers. Although Fitch
expects IB to accelerate the pace of NPL deleveraging after the
establishment of the cooperative group, this process is likely to
take longer to get closer to domestic and international peers.
Fitch expects that upon creation, the new cooperative banking
group's asset quality will be roughly similar to IB's current
asset quality, although there is some uncertainty about the
results of the upcoming AQR review.

The ratings also reflect Fitch's view that profitability is below
peers' average. IB has often reported operating losses since
2015, suffering from low interest income generation, weak ability
to generate fees and high loan impairment charges (LICs). Fitch
expects the new cooperative banking group to show a stronger
pricing power, drawing upon the long-standing client relationship
of the individual mutual banks, especially towards small
businesses and households. While operating expenses should
gradually decrease thanks to the simplification of the
organisational structure, LICs could be negatively affected by
the request of higher loan provisioning requirement following the
completion of the AQR.

Capital ratios have been stable over the years and IB's CET1
ratio of 11.9% at end-1H18 maintains comfortable buffers over
regulatory minimums. However, unreserved impaired loans remain
high at nearly 78% of Fitch Core Capital at end-1H18. Fitch
expects the forthcoming cooperative banking group to maintain a
CET1 ratio above 14%, as some group members have surplus capital
and intragroup placements will become 0% risk-weighted under the
new organisation structure. However, unreserved impaired loans
continuing to weigh significantly on capitalisation.

IB's funding is generally stable, benefiting from the
contribution of the mutual banks, which rely on IB as a central
institution. Access to wholesale funding is less frequent and
robust than higher-rated domestic peers, while liquidity benefits
from ordinary support from the mutual banks, which place a large
portion of their excess funding with IB. Fitch expects the new
group to mainly rely on stable and granular customer deposits,
while issuances on the institutional markets are likely become
more frequent and diversified by source.

Fitch assigns common VRs to IB and IBI to reflect the high
integration between the two entities. IB and IBI are supervised
and regulated as a consolidated entity. Capital and liquidity are
fungible across the group and all entities share the same brand,
have high integrated management and operate in the same
jurisdiction.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor reflect Fitch's view
that although external support is possible it cannot be relied
upon. Senior creditors can no longer expect to receive full
extraordinary support from the sovereign in the event that the
bank becomes non-viable. The EU's Bank Recovery and Resolution
Directive and the Single Resolution Mechanism for eurozone banks
provide a framework for the resolution of banks that requires
senior creditors to participate in losses, if necessary, instead
of, or ahead of, a bank receiving sovereign support.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The subordinated debt issued by the bank is one notch lower than
IB's VR to reflect the below average recovery prospects for the
notes given their subordinated nature. No additional notching was
applied for incremental non-performance risk as the write-down of
the notes will only occur only after the point of non-viability
is reached and there is no prior coupon flexibility.

RATING SENSITIVITIES

IDRS, VRS AND SENIOR DEBT

Fitch expects that the new cooperative group will be formally
created in 1Q19. Upon creation, Fitch expects to assign group
ratings under Annex 4 of its Bank Rating Criteria to the group,
IB and IBI. At that point, Fitch will assign a full set of
ratings to the cooperative banking group and likely affirm IB's
and IBI's Long- and Short-Term IDRs. At the same time, Fitch will
withdraw IBs's and IBI's common VRs, Support Ratings and Support
Rating Floors.

The ratings are sensitive to a higher than anticipated impact
from the AQR that the ECB will complete in the coming months if
this results in materially higher impaired loans and/or large
LICs potentially eroding the group capitalisation. The ratings
are also sensitive to a deterioration of the Italian economic
environment, especially if this leads to a materially slower
progress in reducing the stock of impaired exposures or
accelerates the flow of new impaired exposures.

The ratings could benefit from progress in improving asset
quality while maintaining adequate capitalisation and a
sustainable return to operating profitability. Over time, the
ratings could also benefit from the successful completion of the
integration of the new banking group and creation and functioning
of the necessary governance, risk and control functions as well
as evidence of long-term competitive strengths.

Although unexpected, should the creation of the new banking group
not go ahead Fitch will continue to rate IB and IBI under the
current approach.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of the Support Rating and an upward revision of the
Support Rating Floor would be contingent on a positive change in
the sovereign's propensity to support the bank. While not
impossible, this is highly unlikely, in Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The subordinated debt rating is sensitive to a change in the
bank's VR, from which it is notched. The notes' rating is also
sensitive to a change in notching, which could be triggered if
Fitch reassesses the notes' loss severity or incremental non-
performance risk.

The rating actions are as follows:

Iccrea Banca S.p.A.

Long-Term IDR: downgraded to 'BB' from 'BB+'; Outlook Stable

Short-Term IDR affirmed at 'B'

VR: downgraded to 'bb' from 'bb+'

Support Rating: affirmed at '5'

Support Rating Floor: affirmed at 'No Floor'

Senior debt (including programme ratings): long-term rating
downgraded to 'BB' from 'BB+', short-term rating affirmed at 'B'

Subordinated debt: long-term rating downgraded to 'BB-' from 'BB'

Iccrea BancaImpresaS.p.A.

Long-Term IDR: downgraded to 'BB' from 'BB+'; Outlook Stable

Short-Term IDR affirmed at 'B'

VR: downgraded to 'bb' from 'bb+'

Support Rating: affirmed at '5'

Support Rating Floor: affirmed at 'No Floor'



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


BRIGHT BIDCO: S&P Affirms 'B' Long-Term ICR, Outlook Stable
-----------------------------------------------------------
On Dec. 24, 2018, S&P Global Ratings affirmed its 'B' long-term
issuer credit rating on Bright Bidco B.V. S&P said, "We also
affirmed the 'B' issue rating on the $1,671 million first-lien
term loan B and Bright Bidco's $200 million revolving credit
facility (RCF). The recovery rating is '3', indicating our
expectation of 50%-70% recovery prospects (rounded estimate: 55%)
in the event of a payment default."

S&P said, "The affirmation of our 'B' long-term issuer credit
rating on Bright Bidco (the holding company of the Netherlands-
based lighting manufacturer Lumileds) reflects our expectation
that Lumileds will successfully recover its profitability in the
specialty segment by adjusting its cost base to lower expected
volumes. In the first nine months of 2018, Lumileds' sales
declined in two of its three segments, largely because a large
group of key customers within its specialty segment moved to a
dual-sourcing strategy from an exclusive relationship and weaker
demand from industrial and commercial retailers in its general
illumination business.

"For 2019, we assume no further loss in volumes, given recently
strong order intakes and our expectations that underlying demand
should remain largely stable. The main risk to our current base
case (but not currently incorporated into our analysis) could
come from a deteriorating auto market with a fall in global light
vehicle production units. The auto industry is Lumileds' largest
customer end market and accounted for about 66% of total sales in
the first nine months of 2018.

"We note positively the company's relatively resilient earnings
generation in its general illumination, Auto LED, and Lamps
business, largely owing to the company's cost saving initiatives.
This helped Lumileds show a reported EBITDA margin of 22.1% in
the first nine months of 2018 (compared with 21.7% in the same
period of 2017).

"While we anticipate a continued revenue decline from
conventional lamps in the reporting period, we note that auto LED
revenues overcompensate for this effect.

"For 2019, we believe Lumileds will further extend its cost
saving initiatives in order to offset the EBITDA margin erosion
coming from the ongoing change in product mix." Traditionally,
the EBITDA margin on conventional lighting solutions has been
higher than for LED because of lower R&D costs. Moreover, the
company is successfully turning around its general illumination
business with increasing EBITDA contribution year over year."

Lumileds' free operating cash flow will likely turn negative this
year because of a combination of moderate earnings declines, a
significant build-up in inventory, and some special effects. One-
time cash outflows in 2018 related to the completed separation
from Philips, representing about $30 million and legal costs of
about $4 million. Absent additional one-off costs and given the
group's strong focus on recovering cash flow generation, S&P
assumes the group will post positive free operating cash flow in
2019 after cash interest expenses of $95 million-$100 million and
capex of $150 million-$170 million.

S&P said, "Our rating on Lumileds remains constrained by the
aggressive financial policy of its financial sponsor Apollo
Global Management LLC (Apollo). Since its acquisition by Apollo
in June 2017, the company has paid out dividends of about $500
million. We see a continued risk that the company will pay
further dividends. When Lumileds raised an add-on term loan of
$300 million in May 2018, about half of it was earmarked for
possible M&A transactions but lenders agreed that the proceeds
could be used for dividend payments if no suitable acquisitions
were made by the end of 2019.

"The stable outlook reflects our expectation that Bright Bidco
will maintain a steady operating performance, with growth in the
LED segment offset by lower demand for conventional products. We
expect healthy, above-average EBITDA margins to continue, as well
as positive FOCF despite continued R&D and capex. We see a
continued risk that further dividends will be paid, funded by
additional debt (as happened in 2017 and 2018) as well as
spending on bolt-on acquisitions. We forecast debt to EBITDA of
6x-7x and FFO cash interest coverage above 3x during 2018 and
2019.

"We could lower the ratings if the company's FOCF remains
negative or if its FFO cash interest coverage ratio falls below
2.5x. This could stem from lower margins because of weakening
market conditions or competitive position in Lumileds' auto and
smartphones end markets, or greater-than-expected restructuring.
A large debt-financed acquisition, additional dividend
recapitalizations, or a weakening of the liquidity position could
also prompt a downgrade.

"An upgrade is unlikely over the next 12 months. We could raise
the ratings if the company demonstrates a clear path to
deleveraging, with greater-than-expected growth and cash flow
generation, avoiding further dividend recapitalization payments,
or major debt-financed acquisitions. Debt to EBITDA and FFO to
debt would need to remain stronger than 5x and 12%,
respectively."


SIGMA HOLDCO: Fitch Assigns B+ LT IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned Dutch food group Sigma HoldCo BV a
final Long-Term Issuer Default Rating of 'B+' with Stable Outlook
following completion of its acquisition by private equity sponsor
KKR from Unilever plc (A+/Stable).

The 'B+' IDR of Sigma reflects the challenge of reversing the
trend of revenue declines in developed market and its elevated
initial leverage. Positively, the rating also reflects the
sustainability of Sigma's strong market shares, good geographic
diversification, historically high profit margin and its
expectation of continuing strong free cash flow generation in at
least the high single digits annually. The Stable Outlook
reflects its view of solid deleveraging towards financial metrics
consistent with the rating by 2021, and expectation of moderate
execution risks in achieving the group's planned cost savings.

Key Rating Drivers

Declining Demand for Margarine: The majority of Sigma's margarine
products have been in long-term decline in the group's core
developed markets. This is due to changing eating habits and
consumer perception of the health benefits and flavour of
margarine versus butter. However, compared with butter, margarine
continues to benefit from its lower price. Also, Fitch believes
that provided the group continues to implement its communication
strategy effectively, margarine can benefit from the recent trend
towards consumption of plant-based products.

Carve-out Execution Risks: The margarine business was acquired on
July 2, 2018 by Sigma and is in the process of being carved out
of Unilever's organisation. While immediately owning its
manufacturing operations and brands, as well as benefiting from
dedicated manufacturing and marketing expertise, the new entity
still faces further investments in its own back-office,
headquarters, IT infrastructure and a dedicated sales force. Most
of these resources are initially being provided on an interim
basis by Unilever and charged by Sigma as part of its operating
expenses. Sigma will then gradually internalise these services or
set up new agreements with third parties. Fitch believes that
execution risks are mitigated by the experience of KKR inother
carve-out transactions and by the carve-out process having
commenced before the acquisition's close.

Upside from Cost Rationalisation: The new owners believe Sigma
can re-organise operations in a more cost-effective manner than
under its previous ownership and have identified cost-savings
opportunities in each of the areas of operation. These include
achieving lower procurement costs, production efficiency
improvements, lower overheads and a more efficient allocation of
current marketing spend. Overall, management is targeting around
EUR200 million cost savings by 2021, which Fitch believes are
mostly achievable.

Haircuts to Projected EBITDA: While KKR has a strong track record
of implementing cost savings, Fitch has applied some haircuts to
management's planned figures and a mild delay to the improvement
of profitability. Nevertheless Fitch projects an EBITDA margin
uplift to 31% in 2022, from 22% in 2017. Overall Fitch believes
an increase of EBITDA to EUR840 million in 2021 (from 2017's
EUR639 million) is achievable.

Global Category Leader: The rating reflects Sigma's global number
one position in butter & margarine, with an 18% share of the
global butter & margarine retail market in 2016, which is over 4x
larger than the next two players in butter & margarine. It enjoys
strong market shares of over 50% in the key margarine markets of
the US, Germany, the UK and Netherlands and is a leader in
another 40 markets. Additionally, it sells vegetable fat-based
creams and spreadable butter to complement its offer. However,
Sigma's position has been challenged by innovative new entrants
such as St. Hubert in France and Fitch believes that continued
demonstratation of its innovation capability is key to defending
its strong position.

Revenue Stabilisation Likely: Fitch views the new owner's product
relaunch strategy as well-developed and appropriate for improving
the perception of margarine, regaining category leadership with
retailers and taking advantage of changing consumer preferences.
Fitch believes that the strategy for revenue stabilisation is not
overly ambitious given legacy under-investment in innovation,
opportunities to leverage brand and distribution capabilities in
emerging markets and planned investments in the growing food
service channel. Further launches of innovative products,
increased investments in communication, new packaging and
labelling, and widening the product portfolio to plant-based
alternatives of adjacent dairy products are all achievable
objectives. These efforts should allow Sigma to slow revenue
decline towards at worst 1% to 2% in developed markets compared
with declines in the mid- single digits suffered over 2015-2017.

Superior Cash Flow Generation: The combination of a mature
business profile with very strong market positions has enabled
Sigma to deliver EBITDA margins of approximately 22% over 2015-
2017. This is superior to many packaged food companies'. Fitch
believes the group should be able to generate EBITDA margins
towards 26% and annual FCF of up to EUR300 million in 2018,
before gradually rising to over EUR450 million in 2021. This
assumes that not all cost-saving benefits are achieved and takes
into account cash cost savings and carve-out charges, as well as
extra marketing investments needed to relaunch the business. Such
a cash flow profile is strongly supportive of Sigma's initially
high leverage and should enable the group to withstand market
shocks.

High Initial Leverage: Fitch calculates that Sigma will have
initial FFO adjusted gross leverage of approximately 8.0x in
2018, which is high and in line with weak 'B' category-rated
packaged food companies'. High initial leverage, combined with
execution risks in stabilising revenue and achieving cost savings
and efficiencies in the carve-out process, poses medium-term
risks. However, assuming the deployment of achieved cost savings,
Fitch projects that this high initial leverage should gradually
decline to 7x by 2021. There is also scope for gross leverage to
fall further in 2021 to a low 5.6x in the event that its
projected EUR1 billion accumulated cash by 2021 is applied to
early debt repayment. Interest coverage ratios are in line with
'B+' rated peers'.

Derivation Summary

Sigma's 'B+' rating is one notch higher than UK packaged food
peer Premier Foods plc's (B/Stable). While Premier Foods is more
diversified by product but less diversified by geography than
Sigma it enjoys good, but not as strong, EBITDA and FCF margins
and suffers from product portfolio maturity. Sigma also generates
significantly more internal cash flow than Premier Foods, which
it can reinvest into the business to fund its turnaround plan.

The other 'B' category-rated peer is Yasar Holding A.S. (B-
/Stable), which suffers from persistently negative FCF and also
high, albeit lower, leverage than Sigma. Yasar is much smaller,
is exposed to a currency mismatch with over 50% of its debt being
in US dollars and euros while the majority of its cash flow is
generated in Turkish lira and does not benefit from as strong
market and brand positioning as Sigma.

Key Assumptions

Fitch's Key Assumptions Within its Rating Case for the Issuer:

  - Revenue growth 0.4% CAGR 2017-2022, driven mostly by
    marketing efforts and innovation included in the business
    plan

  - No major commodity price shocks

  - EBITDA margin (post all marketing costs) improving towards
    31% in 2022 (22% in 2017), driven mostly by cost base
    rationalisation

  - Capex around EUR40 million per year

  - No changes in working capital

  - No bolt-on M&A or dividends

Recovery Assumptions

  - The recovery analysis assumes that Sigma would remain a going
    concern in restructuring and that it would be reorganised
    rather than liquidated. Fitch has assumed a 10%
    administrative claim in the recovery analysis.

  - The recovery analysis assumes a 25% discount to 2018
    forecasted EBITDA, which includes the carve-out impact,
    resulting in a post-restructuring EBITDA of around EUR547
    million. At this level of EBITDA, Fitch would expect Sigma to
    generate breakeven FCF, representing an unsustainable capital
    structure.

  - Fitch also assumes a distressed multiple of 6.0x, reflecting
    Sigma's comparative size and high inherent profitability
    versus sector peers'.

  - Fitch assumes Sigma's EUR700 million revolving credit
    facility (RCF) would be fully drawn in a restructuring
    scenario.

The rating of Sigma's unsecured notes reflects their junior
ranking to the EUR3,954 million term loan B and to the EUR700
million RCF both in contractual and structural terms. The notes
are guaranteed on a senior subordinated basis by Upfield US LLC
(formerly known as Sigma Us LLC) and Upfield Group B. (formerly
known as Sigma Midco B.V), which are also guarantors of the term
loan B and RCF facilities but on a senior unsecured basis. The
notes are also guaranteed by Upfield B.V (formerly known as Sigma
Bidco B.V), and Upfield US Corp (formerly known as Sigma US
Corp), the borrowers of the facilities, which are closer to the
operating cash flow of the business.

The unsecured notes benefit from the same security package as the
senior secured facilities. However, based on the intercreditor
agreement, bondholders would only share any proceeds received
upon distribution of any enforcement action on a subordinated
basis.

Fitch estimates that in a default scenario, term loan B creditors
would benefit from a 63% recovery rate, which is reflected in a
one-notch uplift from the IDR to 'BB-'/'RR3' assigned to the
loan. Conversely, Fitch assumes no meaningful recoveries (0%) for
unsecured creditors in an event of default. This leads to a two-
notch lower rating for the unsecured notes from the IDR to
'B-'/'RR6'.

RATING SENSITIVITIES

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

  - Reversal of revenue decline evidenced by stabilisation in
    core developed markets and mid-single digit growth in
    emerging markets

  - Evidence that the cost-savings strategy is allowing EBITDA
    margin to remain above 24% without compromising marketing
    efforts

  - FFO adjusted gross leverage below 6.0x and FFO fixed charge
    ratio above 3.0x

  - Annual FCF growing to at least EUR350 million

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

  - Persistent retail revenue decline not sufficiently
    compensated by growth in the food service and emerging
    markets channels

  - EBITDA margin deteriorating to below 20%

  - Expectation that FFO adjusted gross leverage would remain
    above 7.0x beyond 2020

  - FFO fixed charge ratio below 2.0x

  - Annual FCF below 5% of revenue

Liquidity and Debt Structure

Adequate Liquidity: Liquidity is satisfactory as high FCF
generation allows fast accumulation of cash on balance sheet (to
projected EUR1,079 million in 2021 from EUR144 million in 2018)
and supported by a EUR700 million of RCF. The latter was EUR445
million drawn at closing but Fitch expects it to be  largely paid
down by end-2018.

Post-closing of the acquisition, Sigma HoldCo's debt structure
comprises EUR3,954 million equivalent senior secured covenant-
light term loan B, EUR1,098 million-equivalent senior unsecured
notes and a EUR700 million senior secured RCF. Specifically, term
loan B is composed of four tranches in different currencies - ie
a EUR2 billion tranche, a EUR688 million-equivalent of the USD875
million tranche, a EUR790 million equivalent of the PLN2 billion
tranche, a EUR475 million-equivalent of the GBP700 million
tranche. The USD tranche is amortising 1% per annum (0.25% per
quarter).



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


BANK TRUST: In Talks with Bad Bank Over Bailout Recovery Rate
-------------------------------------------------------------
Anna Baraulina and Jake Rudnitsky at Bloomberg News report that
more than a year after Russia nationalized three leading private
lenders, the magnitude of the losses is starting to take shape
and criminal investigations are being opened against former
owners and management.

According to Bloomberg, the bad bank that took on some RUB2
trillion (US$30 billion) in non-performing assets from Bank
Otkritie FC, B&N Bank and Promsvyazbank still isn't ready to
estimate how much it will ultimately recover.  But Bank Trust
PJSC's Chief Executive Officer Alexander Sokolov is trying to
manage expectations, Bloomberg discloses.

"About half are assets that can be worked with, where you can
find a source of funding," Mr. Sokolov said in an interview in
Moscow.  That means the Bank of Russia may have a harder time
recovering much of the RUB2 trillion it has provided in the
lenders' bailout.  Trust will conclude discussions with the
central bank about the recovery target by the end of 2018,
Bloomberg quotes Mr. Sokolov as saying.

Deputy Governor Vasily Pozdyshev told journalists in December the
central bank expects a recovery rate at the lower end of the 40%
to 60% spread that it is targeting, Bloomberg relates.

The three private lenders collapsed in 2017 under a mountain of
bad debt, much of which was loaned to companies connected to
their owners, Bloomberg relays.  Mr. Sokolov, as cited by
Bloomberg, said that multiple criminal cases have been opened
against the banks' former management and shareholders, without
naming the individuals.  He said most of them are minor,
Bloomberg notes.

The rescue of these banks, treated as systemically important,
contrasted with the central bank's ongoing purge of the financial
industry as it seeks to eliminate mismanaged and undercapitalized
lenders, Bloomberg states.

Mr. Sokolov said even among the salvageable loans that Trust took
on, many involved related parties and were structured as
sweetheart deals, Bloomberg notes.  He said they often included
balloon payments due in several years without a reasonable
financial model that would allow for the debt to be serviced,
according to Bloomberg.

With Trust's negative capital as of Nov. 1 at about RUB650
billion, the central bank may face additional losses, Bloomberg
relays, citing Fitch analyst Alexander Danilov.  The Bank of
Russia has already provided about RUR1.3 trillion in subsidized
loans to Trust, in addition to the bailout package for Otkritie,
B&N and Promsvyazbank, Bloomberg discloses.


NIZHNIY NOVGOROD: Fitch Affirms BB LT IDRs, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Russia's Nizhniy Novgorod Region's
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) at 'BB' with Stable Outlooks and Short-Term Foreign-
Currency IDR at 'B'. The region's senior unsecured debt ratings
have been affirmed at 'BB'.

The affirmation reflects its unchanged rating case scenario
regarding the region's expected sound operating performance over
the medium term and moderate direct risk. The ratings also
consider the concentrated maturity profile of the region's debt.

KEY RATING DRIVERS

Institutional Framework (Weakness/Stable)

Like most Russian local and regional governments (LRGs), Nizhniy
Novgorod's credit profile remains constrained by the weak
institutional framework for sub-nationals, which has a shorter
record of stable development than many of the region's
international peers. Constant changes in fiscal regulation and
allocation of revenue sources and assignment of expenditure
responsibilities reduce the planning horizon for investment and
debt policy of Russian LRGs. This limits LRGs' predictability of
fiscal performance and thus impacts debt and liquidity.

Fiscal Performance (Neutral/Positive)

Fitch projects the region's budgetary performance to remain sound
in 2018-2020 with an operating margin at about 15%. The region
collected 90% of Fitch-projected annual operating revenue during
10M18, and expensed 92% of annual projected opex. Nizhniy
Novgorod's interim overall surplus amounted to RUB9.5 billion, or
7.3% of total revenue as of end-October 2018. In its rating case
scenario, Fitch expects close to balanced budgets in 2018-2020.

The region's prime revenue sources are taxes, which averaged 84%
of operating revenue in 2013-2017. Taxation is dominated by
corporate and personal income taxes (CIT and PIT), the actual
collection of which by end-October 2018 was 86% (PIT) and 92%
(CIT) of its projected annual figures.

Debt and Other Long-Term Liabilities (Weakness/Stable)

Fitch projects the region's direct risk will stabilise at around
50% of current revenue (2017: 56%) in 2018-2020. As of end-
November 2018 the region's direct risk decreased to RUB72.6
billion from RUB75.8 billion at end-2017. The region's debt
structure improved in 2018, with domestic bonds composing 59% of
the debt stock at end-11M18, followed by budget loans (27%).

The proportion of short-term bank loans decreased to 14% by end-
November 2018, somewhat relieving immediate refinancing risk.
Nonetheless, 62% of the region's currently outstanding direct
risk is scheduled to mature in 2019-2021. The region's interim
liquidity position remained sufficient with average monthly cash
at RUB3.5 billion at end-October 2018 (2017: RUB3.6 billion).

Economy (Neutral/Stable)

Nizhniy Novgorod's economy is fairly well-diversified, with a
historical focus on industrial sector that supports wealth
metrics near the national median. The local economy is being
driven by domestic demand and is prone to the cyclicality of
national economy. According to the regional administration, GRP
expanded by 3.0% in 2017, outperforming the wider Russian economy
(1.5%). According to the administration's base forecast, the
region's GRP growth will accelerate to 2.0%-2.5% in 2018-2020,
following the national trend. Fitch's restated forecast sees
national GDP growing 2.0% yoy in 2018, 1.5% in 2019 and 1.9% in
2020.

Management and Administration (Neutral/Stable)

The regional administration follows a relatively prudent fiscal
policy and conservative debt management. Operating balances are
maintained at a healthy level, allowing investments in
infrastructure modernisation and aiding overall economic
development. Lengthening of maturities, along with manageable
debt servicing is at the core of its debt management policy.
Fitch assumes the region's prudent policy and practices to
continue over the medium term.

RATING SENSITIVITIES

Sound operating performance with an operating margin above 10% on
a sustained basis, accompanied by a decrease in direct risk to
below 40% of current revenue and a lower reliance on short-term
bank financing, could lead to an upgrade.

An increase in direct risk to above 70% of current revenue,
accompanied by ongoing refinancing pressure or an inability to
maintain a sustainable positive current balance, could lead to a
downgrade.


POLYUS PJSC: Fitch Raises LT IDR to BB, Outlook Stable
------------------------------------------------------
Fitch Ratings has upgraded PJSC Polyus' Long Term Issuer Default
Rating (LT IDR) to 'BB' from 'BB-'. The Outlook is Stable.

The upgrade to 'BB' reflects its expectation that at end-2018
Polyus will achieve Fitch's positive rating sensitivities earlier
than previously expected. Funds from operations (FFO) adjusted
gross leverage was 3.4x at end-2017 vs. its 3.7x forecast and
Fitch believes that the ratio will be maintained at or below its
3x guidance from end-2018. This is supported by debt reduction on
the back of strong operational performance, the Natalka ramp-up
and a weak rouble exchange rate.

Polyus is Russia's leading gold producer that benefits from large
and increasing output, low production costs and a very high
reserve base.

KEY RATING DRIVERS

Natalka Ramp-Up Cements Growth: In 2017 Polyus posted a 10% gold
production increase to 2,160 thousand ounces (koz). In 9M18, the
group's production increased further to 1,800k oz, up 14% on
9M17. Higher flotation concentrate sales at Olimpiada, Polyus's
main production asset and a ramp-up at the Natalka greenfield
were mainly responsible for the increase in gold production and
sales volumes.

Natalka, the group's key development asset in the Russia's Far
East with 16 million oz proven and probable reserves, was
launched in September 2017 and increased production in 2018.
Fitch expects the operations to gradually ramp up throughout 2019
and view remaining execution risks as significantly reduced. its
base case conservatively assumes that Polyus's gold production
will reach 2,375k oz in 2018, 2,700k oz in 2019 and 2,750k oz in
2020. Management forecasts are at 2.4 million oz in 2018 and 2.8
million oz in 2019-2020, which provides upside to its rating
case. Capex is forecast to gradually decrease from its peak in
2018.

Strong Cash Generation, Deleveraging: In 2017 Polyus reduced its
debt levels on higher production and cost discipline. As a
result, its FFO gross leverage declined to 3.4x at end-2017
compared with 3.7x under its forecasts and Fitch-calculated 4.4x
at end-2016. The latter was due to Polyus's debt-funded USD3.4
billion share buyback in 1H16.

Fitch expects further deleveraging and forecast that Polyus's FFO
adjusted gross leverage will remain at or below its 3x guidance
in 2018-2021. This forecast is predicated on stable gold prices,
a weak rouble, low single-digit cost inflation, Natalka's
continuing ramp-up and cost optimisation across existing mines,
supporting strong total cash costs (TCC), as well as lower cash
balances in future period. This forecast takes into consideration
Polyus's dividend payouts of at least USD550 million in 2018 and
30% of EBITDA thereafter.

Strong Cost Position and Profitability: Polyus is a world-class
producer with large, high-grade reserves and efficient open pit
mines. The group ranks among the lowest-cost Fitch-rated gold
companies with average TCC estimated in the first quartile on the
global cash curve. Polyus's TCC declined 6% yoy to USD364/oz in
2017, In 3Q18, TCC declined further to USD355/oz, down 7% on
3Q17, despite Natalka's TCC of USD685/oz. The strong results in
9M18 are mainly due to operating efficiencies, de-bottlenecking,
a weak rouble and by-product credit from antimony-rich flotation
concentrate sales.

Large Reserve Base: In March 2018, Polyus reported proved and
probable (P&P) gold ore reserves of 68 million oz and measured,
indicated and inferred (MI&I) mineral resources of 190 million
oz. The group estimates that it ranks second globally by
attributable gold reserves and second by attributable gold
resources. Polyus puts its average life of mine at above 30
years, a very comfortable level for a gold miner. The reserves
and resources exclude Sukhoi Log that the group is currently
assessing in the pre-feasibility stage.

Improved Corporate Governance: Since 2016 PJSC Polyus has
implemented a new governance framework, including independent
director representation. Its nine-member board currently includes
four independent non-executive Directors including the Chairman.
All board committees are chaired by non-executive Directors.
Fitch positively views these actions aimed at strengthening the
group's corporate governance, which Fitch now assesses as broadly
comparable to that of its peer group of major Russian metals &
mining corporates. Fitch continues to incorporate a moderate
impact of Russia's operating environment into Polyus's ratings.

DERIVATION SUMMARY

Polyus's 'BB' rating reflects a production scale comparable to or
better than that of North American peers such as Goldcorp Inc.
(BBB/Stable), Kinross Gold Corporation (BBB-/Stable) and Yamana
Gold Inc. (BBB-/Stable).

With 2017 gold output of 2.2 million oz, Polyus is smaller than
Kinross (2.7 million oz) or Goldcorp (2.6 million oz) but has far
greater gold reserves. Polyus's forecasted FFO adjusted gross
leverage of 3.0 at end-2018 is higher than Goldcorp's 2.4x and
Kinross's 2.8x and is only partially offset by significantly
lower cash costs (USD364/oz vs. Goldcorp's USD499/oz and
Kinross's USD669/oz in 2017). Goldcorp and Kinross have a higher
proportion of mines located in more stable countries; however, a
number of their mines are in Latin America (Goldcorp) and
Russia/West Africa (Kinross). Yamana has smaller production scale
and most of its assets are located in South America.

Russian-owned Nord Gold SE (Nordgold, BB/Stable) is smaller than
Polyus by production size and its all-in sustaining costs (AISC)
are significantly higher than Polyus'. On the other hand,
Nordgold's output is more diversified geographically and its
leverage is more than 1x lower than Polyus's.

No Country Ceiling, parent/subsidiary or operating environment
aspects impact the rating. Polyus's 'BB' IDR incorporates the
higher-than-average systemic risks associated with the Russian
business and jurisdictional environment.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

  - No cash upstreamed through share buybacks over the next four
    years

  - Dividends in line with Polyus's dividend policy: the greater
    of 30% of EBITDA if net debt/EBITDA is under 2.5x or minimum
    annual dividend payments of USD550 million in 2018 and 30% of
    EBITDA thereafter

  - Average gold price of USD1,259/oz in 2018 and USD1,200/oz in
    2019-2021 (Fitch gold price deck adjusted to reflect realised
    prices in 9M18)

  - USD/RUB exchange rate of 60.3 in 2018, 62.5 in 2019 and 62
    thereafter

  - Natalka project reaching full capacity in 2019

  - Operating efficiencies at the existing mines as per
    management's expectations

RATING SENSITIVITIES

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

  - FFO gross leverage below 2.5x and FFO adjusted net leverage
    below 2.0x on a sustained basis

  - Sustained positive FCF generation

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

  - Higher-than-expected dividend payments or other shareholder
    distributions leading to weaker liquidity and sustained high
    leverage

  - FFO gross leverage above 3.5x or FFO adjusted net leverage
    above 3.0x on a sustained basis

  - Sustained negative FCF generation

LIQUIDITY

Strong Liquidity, USD Indebtedness: Polyus' liquidity position at
September 30, 2018 was strong, with cash of USD1 billion (of
which Fitch restricts USD29 million in unutilised balance of the
government grant) and RUB85 billion (USD1.3 billion at the end-
period exchange rate) of undrawn lines from Sberbank of Russia
(BBB-/Positive) becoming available in April 2019 and expiring in
2024. The group intends to repay its short-term liabilities under
the cross-currency swaps in the amount of about USD0.5 billion in
2019, in line with the current maturity schedule, thus addressing
most short-term maturities. Nearly all of Polyus's effective
(post-swap) indebtedness is in US dollar.

FULL LIST OF RATING ACTIONS

PJSC Polyus

  - Long Term Issuer Default Rating: upgraded to 'BB' from 'BB-';
    Outlook Stable

  - Short Term Issuer Default Rating: affirmed at 'B'

Polyus Finance Plc

  - Senior unsecured rating for unsecured guaranteed notes issued
    by Polyus Finance plc, an indirect 100%-owned subsidiary of
    Polyus: upgraded to 'BB' from 'BB-'


UC RUSAL: Appoints Jean-Pierre Thomas as New Chairman
-----------------------------------------------------
Polina Devitt and Donny Kwok at Reuters report that Russian
aluminum company Rusal said on Dec. 28 it has appointed
independent non-executive director Jean-Pierre Thomas as its new
chairman as part of an agreed restructuring in exchange for the
lifting of U.S. sanctions.

The previous chairman, Matthias Warnig, stepped down after six
years at the world's largest aluminum producer outside China,
Reuters discloses.  His resignation was a condition of the deal,
Reuters notes.

According to Reuters, Mr. Thomas was elected by the board as
chairman with effect from Jan. 1, Rusal said in a filing to the
Hong Kong bourse.

The U.S. Treasury said it would remove sanctions against Rusal,
its parent En+ and power firm EuroSibEnergo if they restructured
to reduce the controlling stakes of businessman Oleg Deripaska,
who is on Washington's sanctions list, Reuters relates.

The deal is subject to a 30-day review period in the U.S.
Congress, Reuters states.  The U.S. Treasury has said earlier
that after the restructuring is completed, En+ will retain the
right to nominate the producer's chief executive, Reuters
recounts.

UC Rusal is the world's second largest aluminum producer.


VOZROZHDENIE BANK: S&P Affirms 'B+/B' ICRs, Outlook Positive
------------------------------------------------------------
S&P Global Ratings affirmed its 'B+/B' long- and short-term
issuer credit ratings on Russia-based Vozrozhdenie Bank. The
outlook is positive.

The rating affirmation reflects our view that higher expected
support from the bank's parent--which has materially higher
creditworthiness than that of Vozrozhdenie Bank--will offset the
deterioration of the latter's SACP following significant credit
losses in the third quarter of 2018.

S&P said, "We revised down Vozrozhdenie Bank's SACP to 'ccc+'
from 'b'. In the third quarter of 2018, the bank reported loan
loss provisions of Russian rubles (RUB) 12.6 billion, which
equaled approximately 52% of its shareholder equity at mid-2018.
Should the bank create similar provisions under local regulatory
standards, it would be in breach of regulatory capital
requirements, in our view. This is because the bank's tier 1
capital amounted to RUB21.7 billion on Nov. 1, 2018 and its tier
1 capital adequacy ratio was only 1.34% above the regulatory
minimum of 7.875% on the same date. Our current base-case
expectation is that the regulator is unlikely to implement any
undue restrictions to Vozrozhdenie Bank's license or business,
and would likely allow it to gradually bridge material provision
requirements under local standards during the next 12-18 months.
We also expect VTB Bank would provide needed extraordinary
support to Vozrozhdenie Bank in a timely manner, should such a
need arise, to avoid any strict sanctions from the regulator.

"We raised Vozrozhdenie Bank's group status to strategically
important from moderately strategic because we view positively
the tangible progress that the bank has made in the integration
process with VTB Bank. Vozrozhdenie Bank's management team now
largely comprises executives from VTB Bank, and many of them--
including the chief executive officer, Mr. Soldatenkov--have
significant experience in the integration of newly acquired
subsidiaries. We expect that Vozrozhdenie Bank's commercial,
credit, and treasury functions will soon become closely aligned
with those of VTB Bank. We also expect that Vozrozhdenie Bank
will likely transfer management of its problem assets to VTB
Bank's special department. We anticipate Vozrozhdenie Bank will
complete its merger into VTB Bank in the second quarter of 2020.

"The positive outlook indicates that we would consider upgrading
Vozrozhdenie Bank in the next 12 months if we observed that its
importance and integration into the parent VTB Bank had further
progressed, prior to the merger in the second quarter of 2020.

"We would revise the outlook on Vozrozhdenie Bank to stable or
even downgrade the bank if we saw a weakening of VTB Bank's
commitment to support and integrate Vozrozhdenie Bank."



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


IM BCC CAPITAL 1: Fitch Rates EUR59.6MM Class D Notes 'CCC'
-----------------------------------------------------------
Fitch Ratings has assigned IM BCC Capital 1, FT the following
ratings:

EUR602.7 million Class A notes at 'AAAsf', Outlook Stable

EUR226.4 million Class B notes at 'BBB+sf', Outlook Stable

EUR64.3 million Class C notes at 'BB+sf', Outlook Stable

EUR59.6 million Class D notes at 'CCCsf'

EUR19.1 million Class E notes Not Rated

The transaction is a securitisation of loans granted to small and
medium enterprises (SMEs) and self-employed individuals,
originated by Cajamar Caja Rural, Sociedad Cooperativa de Credito
(Cajamar; BB-/Stable/B) in Spain.

KEY RATING DRIVERS

Pro-Rata Amortisation

Prior to the occurrence of a sequential trigger event, all
principal proceeds from the portfolio will be distributed pro-
rata between the class A to D notes immediately after closing.
Fitch's rating analysis is linked to the weakest pool composition
permitted during the pro-rata amortisation period, including a
principal deficiency ledger (PDL) plus reserve fund (RF)
shortfall of up to 4.5% of the outstanding portfolio balance, and
top 10 obligors' exposure of up to 10% of the outstanding
portfolio balance.

Strong Portfolio Quality

Fitch established an annual average probability of default (PD)
expectation of 1.9% for the portfolio, which is lower than its
Spanish PD country benchmark of 3.5%. The portfolio PD
expectation reflects both seller historical data analysis, and
the positive loan selection criteria that relate to the best
internal ratings assigned by Cajamar. The pool is highly granular
with no single obligor representing more than 50bp of the total
portfolio balance, and the top 10 obligors at 2.7% of portfolio
balance.

Large Credit Enhancement (CE)

CE ratios mitigate the credit and cash flow stresses commensurate
with the notes' ratings, including the portfolio migration to the
highest-risk composition permitted during the pro-rata period. CE
ratios will remain equal to those as of closing during the pro-
rata amortisation period.

Concentration Risks

The portfolio is exposed to industry concentration as around 49%
of its euro balance is linked to agriculture as of closing. Under
Fitch's asset analysis, this concentration increases the default
correlation and in turn the default rate expectation.

Migration to Secured Portfolio

Fitch expects the portfolio will gradually migrate towards a
majority secured loan portfolio, as most of unsecured loans
mature by 2025. Currently 28% of portfolio balance is secured by
residential, commercial or productive land properties.

RATING SENSITIVITIES

Rating sensitivity to a combined stress of default probability
and recovery rate: Multiplier of 125% applied to the mean rating
default rate (RDR), with the increase in mean RDR added to all
other rating level RDRs; combined with recovery rate multiplier
of 75% (ie 25% haircut) applied to rating recovery rate (RRR) for
all rating levels:

Class A

Current Rating: 'AAAsf'

125% x RDR and 75% x RRR: 'AA+sf'

Class B

Current Rating: 'BBB+sf'

125% x RDR and 75% x RRR: 'BBB-sf'

Class C

Current Rating: 'BB+sf'

125% x RDR and 75% x RRR: 'BBsf'

The class D notes' rating is already at the distressed level of
'CCCsf' but could be downgraded to 'CCsf' or 'Csf' if Fitch
determines its default to be inevitable based on the evolution of
the transaction.


IM SABADELL: DBRS Confirms CCC(low) Rating on Series B Notes
------------------------------------------------------------
DBRS Ratings GmbH confirmed its ratings of IM Sabadell PYME 11,
FT (the Issuer) as follows:

-- Series A Notes at A (high) (sf)
-- Series B Notes at CCC (low) (sf)

The rating of the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
legal final maturity date. The rating of the Series B Notes
addresses the ultimate payment of interest and principal on or
before the legal final maturity date.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

  -- Portfolio performance in terms of delinquencies and defaults
     as of the September 2018 payment date.

  -- Portfolio default rates, recovery rates and expected loss
     assumptions for the remaining collateral pools.

  -- The credit enhancement (CE) available to the rated notes to
     cover the expected losses at their respective rating levels.

The Issuer is a cash flow securitization collateralized by a
portfolio of bank loans originated and serviced by Banco de
Sabadell, S.A. (Sabadell), to self-employed individuals and small
and medium-sized enterprises (SMEs) based in Spain.

PORTFOLIO PERFORMANCE

The portfolio is performing within DBRS's expectations. As of
September 2018, the 90+ delinquency ratio was at 1.6% and the
cumulative default ratio was at 0.1%.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis on the remaining pool and
updated its default rate and recovery assumptions. The base case
probability of default (PD) has been maintained at 1.99% for
normal loans and 10.08% for refinanced loans.

CREDIT ENHANCEMENT

The CE available to all rated notes continues to increase as the
transaction deleverages. As of the September 2018 payment date,
the CE available to the Series A Notes and Series B Notes was
30.3% and 6.6%, respectively.

Sabadell acts as the Account Bank for the transaction. Based on
the reference rating of Sabadell at A (low), one notch below
DBRS's Long-Term Critical Obligations Rating of "A", the
downgrade provisions outlined in the transaction documents, and
structural mitigants, DBRS considers the risk arising from the
exposure to Sabadell to be consistent with the ratings assigned
to the Series A Notes, as described in DBRS's "Legal Criteria for
European Structured Finance Transactions" methodology.

Notes: All figures are in euros unless otherwise noted.



===========
S W E D E N
===========


OREXO AB: Egan-Jones Hikes Senior Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company, on December 17, 2018, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Orexo AB to BB from BB-.

Orexo is a pharmaceutical company based in Uppsala, Sweden
initially financed with venture capital provided by HealthCap.
The company was founded in 1995 and their first product Diabact
UBT, a breath test for diagnosing the causative agent of stomach
ulcers, was introduced in 2000.



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


CIFT GEYIK: Applies for Creditor Protection
-------------------------------------------
Ahval, citing Dunya newspaper, reports that Cift Geyik Karaca, a
leading Turkish retailer and textile producer, has applied for
protection from creditors.

According to Ahval, Dunya, citing a statement by the company,
said Karaca, which runs stores across Turkey selling its own
brand of clothing, applied to the courts after foreign currency
loans pushed its balance sheet into the red.

The Karaca brand has existed for more than a century, Ahval
notes.  Dunya said the firm runs almost 200 sales points in
Turkey and attracts nearly 10 million shoppers annually, Ahval
relates.


PETKIM PETROKIMYA: Fitch Affirms B Long-Term IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Petkim's Long-Term Issuer Default
Rating (IDR) at 'B' with a Stable Outlook.

The affirmation reflects its view that after a peak at 4.2x in
2019, Petkim's funds from operations (FFO) adjusted net leverage
will moderate to below 4x on neutral-to-positive free cash flow
(FCF). The forecast spike in leverage in 2019 is due to supply-
driven margin pressure in global polyethyelene markets, adverse
working capital effects and its debt-funded acquisition of an 18%
stake in the STAR refinery from its shareholder. Fitch also
assumes that Petkim's temporarily tight liquidity due to its
commitment to pay for the stake in STAR will normalise once it
prolongs its letters of credits and/or short-term banking debt.

The rating continues to reflect the company's small scale and
high product concentration relative to larger, diversified global
peers. Specifically, Petkim owns a single-site petrochemical
complex and is exposed to cyclical commodity polymers, which
results in inherent earnings volatility. The IDR is also
constrained by Petkim's forecast high leverage under its base
case. Support for the rating includes a well-invested asset base
and relative resilience to foreign exchange and interest rate
volatility due to the company's structure of revenues and
production costs.

KEY RATING DRIVERS

Turkish Economy Turbulence Manageable: Petkim demonstrated
relative resilience to FX and interest rate shocks in 2Q18-3Q18
when the lira sharply depreciated and Turkey's central bank
raised its key interest rate to 24% in September 2018. At least
80%-90% of Petkim's revenues and production costs are nominated
or linked to the US dollar, with most debt in euro and US dollars
priced at LIBOR and EURIBOR rates, limiting Petkim's exposure to
lira's FX and interest rate fluctuations.

Medium-term implications include the deceleration of Turkey's GDP
growth to 0.6% in 2019, down from 3.5% in 2018, before the
recovery towards 3.9% in 2020 according to Fitch's forecasts.
Fitch expects elevated domestic inflation and unemployment to hit
sales volumes and prices, particularly in construction-exposed
high-density polyethylene (PE) and PVC markets, in 2019.
Consequently, Fitch expects plastics revenues to shrink to around
USD750 million before gradually recovering back towards USD800
million by 2020. Petkim's consolidated EBITDA is expected to
shrink towards TRY1.7 billion in 2018 (2017: TRY1.8 billion)
before growing to TRY2.0 billion in 2019 as the lira depreciates,
and to TRY2.2 billion in 2020 as prices and sales volumes
recover.

Working Capital Outflows: Significant working capital outflows
and the acquisition of the 18% stake in STAR refinery are key
drivers of Petkim's substantially negative FCF in 2018-2019,
resulting in a leverage peak in 2019. Reported working capital
outflows increased to TRY0.8 billion in 9M18 from TRY0.2 billion
in 9M17 due to in part to one-off effects. Fitch expects these
trends to continue in 2019, albeit at a reduced level, due to
increasing trading activities and changes in naphtha supply days
payables. Fitch conservatively assumes cumulated working capital
outflows of TRY2.2 billion-TRY2.3 billion over 2018-2019,
moderating to below TRY0.5 billion over 2020-2021 after working
capital needs have been rebased.

Naphtha Spreads Turnaround in 2019: Fitch expects medium-term
pressure from US-based new capacity additions in PE, which
represents 65%-70% of Petkim's plastics sales, to culminate in
2019 when Fitch assumes a high single-digit global PE price
reduction. After 2019, demand growth starts absorbing
overcapacity and support mildly positive price dynamics in
constrast with Fitch's oil price deck, which assumes Brent
drifting towards USD60/bbl in 2021 from USD65/bbl in 2019.

STAR Refinery Impact Mixed: Fitch expects Petkim to fully realise
its USD65 million-USD70 million of annual savings on logistic
costs (at least TRY400 million assuming TRY/USD of 6.2 from 2019)
once the STAR refinery ramps up by mid-2019. The refinery was
inaugurated in October 2018 and will supply up to 1.6 million
tonnes (mt) of naphtha and 270 thousand tonnes of mixed xylene
feedstock to Petkim annually. The STAR refinery was constructed
by State Oil Company of the Azerbaijan Republic (SOCAR,
BB+/Stable) in Turkey, with planned annual oil refinery capacity
of 10mt.

However, Petkim's USD720 million commitment to purchase an 18%
stake in STAR from its main shareholder SOCAR Turkey Enerji A.S.
(STEAS), is offsetting the positive impact of the savings and is
one of the factors increasing leverage in 2018 and 1H19. Fitch
assesses Petkim's total payments for the stake in STAR to account
for around 40% of end-2019 debt. The last instalment,
representing one-third of the investment, is to be paid by the
end of March 2019. its base case does not assume any significant
dividends from STAR to its shareholders over the next three
years.

Leverage Peak in 2019: A combination of market pressure, elevated
capex, significant working capital outflows and the USD720
million payment towards the acquisition of the stake in STAR is
behind the sharp increase in Petkim's FFO net adjusted leverage
towards 3.5x in 2018 and peaking at 4.2x in 2019 from around 1.0x
before 2018. Fitch expects deleveraging to start from 2020 as
markets recover, capex moderates to within 5% of revenues and FCF
turns to low single-digit positive range, driving leverage back
to around 4x in 2020 and below 4x from 2021.

Small Scale Commodity Player: Petkim is a Turkish commodity
chemical producer, making plastics and intermediates from
naphtha. Petkim has benefited from a widened naphtha-ethylene
spread since 2014 when oil prices rebased. However, Fitch
forecasts that the increase in global ethylene and polymer
production, mainly in the US and Middle East on the back of cheap
gas, will pressurise the petrochemical margins for unintegrated
players including Petkim in 2019 and partly in 2020. Petkim's
small scale and significant exposure to Turkey, which accounts
for around 70% of its sales, are key factors driving its 'B'
business profile.

Petkim has a well-invested asset base and is the sole domestic
petrochemical producer in the import-dependent Turkish market.
Petkim's diversification across different plastics such as
polyethylene, polypropylene and polyvinylchloride makes it less
exposed to the price/volume variations in a single commodity.

Contingent Liabilities of STEAS: Petkim is 51% owned by STEAS,
which in turn is 87%-owned by SOCAR and 13% by Goldman Sachs.
Petlim, a container terminal in the Aegean Region operating since
4Q16, is 70%-owned by Petkim and 30%-owned by Goldman Sachs.
Goldman Sachs has put options with STEAS and SIL (subsidiary of
SOCAR) until 2021 protecting the value of its stakes in STEAS and
Petlim. Should these options be exercised, STEAS would incur
liabilities of up to USD1.0 billion in respect of STEAS, and
USD300 million in respect of Petlim, with the remaining of USD300
million to be paid by SIL. This could result in pressure on
Petkim to upstream additional resources to STEAS.

Petkim Rated on Standalone Basis: SOCAR's IDR is aligned with
that of the Republic of Azerbaijan (BB+/Stable). Fitch assesses
SOCAR's standalone credit profile in the 'B' rating category.
Under Fitch's Parent and Subsidiary Rating Linkage (PSL)
methodology, Fitch has not factored in any uplift on Petkim's
rating from SOCAR's ownership since Fitch regards support from
the Azerbaijan government as unlikely. Fitch assesses the overall
links between SOCAR and Petkim as moderate. This captures SOCAR's
standalone IDR as well as the legal ties represented by cross
default clauses to Petkim under SOCAR's bond documentation, and
an expected strengthening of operational and strategic ties after
the commissioning of the STAR refinery.

DERIVATION SUMMARY

Russia-based PJSC Kazanorgsintez (B+/Stable) is Petkim's closest
rated peer based on product mix (basic polymers) and geographical
concentration. Kazanorgsintez benefits from its more competitive
cost position, higher EBITDA margins (on average over 25%) and
from a stronger financial profile with FFO adjusted net leverage
of under 1x. Petkim, in turn, benefits from wider product
diversification while Kazanorgsintez's revenues are more
concentrated towards polyethylene.

Other Fitch-rated, commodity-focused EMEA chemical companies
include PAO SIBUR Holding (BB+/Positive), Ineos Group Holdings
S.A. (BB+/Stable), Westlake Chemical Corporation (BBB/Stable) and
NOVA Chemicals Corporation (BBB-/Negative). SIBUR, Westlake and
Nova benefit from competitively priced Russian and North American
ethane, placing them in a more advantageous position versus
producers with naphtha-based feedstock. Ineos benefits from cross
regional diversification as well as product diversification.

KEY ASSUMPTIONS

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

  - Naphtha price following the crude oil price of USD65/bbl in
    2019, USD62.5/bbl in 2020 and USD60/bbl thereafter

  - USD/TRY at 6.2 from 2019

  - Thermoplastics margin pressuring 2019 EBITDA to below USD320
    million (TRY1.7 billion) from the USD330 million (TRY1.8
    billion) in 2018 before market-driven recovery to the USD330
    million - 350 million range in 2020-2021

  - Trading operations to increase thereby partly diluting
    forecast EBITDA margin

  - EBITDA margin dipping at 14% in 2019 and from 17% in 2018,
    with recovery to 15%-16% thereafter

  - Capex-to-sales at around 6% in 2018 before moderating towards
    around 5% from 2019

  - Dividends payout suspended in 2019 and at 50% of net profits
    thereafter

  - USD500 million bond issued in January 2018 used to finance an
    18% stake purchase in the STAR refinery

The recovery analysis assumes that Petkim would be considered a
going-concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

The going-concern EBITDA is 2019 EBITDA, which better reflects
the operational profile of Petkim going forward (with benefits
from synergies with the STAR Refinery), discounted by 15%. EV
distressed multiple of 4x is applied.

The payment waterfall corresponds to a 'RR3' recovery for the
senior unsecured rating. However, in line with its methodology,
Fitch applies a soft cap of 'RR4' to reflect the fact that
Petkim's assets are located in Turkey.

RATING SENSITIVITIES

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

  - FFO adjusted net leverage consistently below 3.0x (2017:
    1.0x);

  - Significant improvement in cash flow diversification, e.g.
    higher cash flow generation at Petlim and dividends from the
    STAR refinery.

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

  - FFO net adjusted net leverage sustained above 4.0x;

  - Support provided to the parent resulting in higher leverage
    (e.g. cash outflows related to put options being called by
    Petlim and STEAS's minority shareholder);

  - Material deterioration in the outlook for petrochemical
    margins.

LIQUIDITY

Weak Liquidity: Petkim's liquidity appears limited with cash
balance of TRY3.4 billion against short-term financial debt of
same amount. Current debt is essentially used to finance working
capital including TRY2.2 billion of liabilities resulting from
letters of credit for naphtha procurement that Fitch treats as
debt. The remaining portion is related to export finance
facilities. Petkim's debt maturity profile reflects some reliance
on domestic banks. This is not uncommon among Turkish corporates
but exposes the company to systemic liquidity risk and results in
a weak liquidity ratio. The rest of total debt has remote
maturity dates including mainly a USD500 million bond due in 2023
and a loan financing Petlim's container due in 2028 (USD194.5
million at end of September 2018).

FULL LIST OF RATING ACTIONS

Petkim Petrokimya Holdings A.S.

  - Long-Term IDR: affirmed at 'B'; Outlook Stable

  - Senior unsecured rating of USD500 million notes: affirmed at
    'B'/RR4


* TURKEY: 100+ Companies Apply for Bankruptcy Protection
--------------------------------------------------------
Ahval reports that more than 100 larger Turkish firms applied for
protection from bankruptcy between Dec. 13 and Dec. 24, according
to statements by Trade Minister Ruhsar Pekcan.

The number of limited and joint stock companies who have applied
for protection from creditors increased to 979 since a currency
crisis peaked in August, Ms. Pekcan, as cited by Ahval said,
according to a report in Hurriyet newspaper on Dec. 27.  She had
put the number at 846 companies 11 days earlier, Ahval notes.

According to Ahval, Turkish companies are asking the courts to
give them stays of execution due to economic turmoil that pushed
up borrowing costs and led to a surge in the cost of imports.

Ms. Pekcan said a political crisis with the United States earlier
this year had negatively affected Turkish enterprises, as would
U.S. sanctions on Iran, Ahval relates.

Analysts are concerned that a protracted economic downturn and
currency volatility in Turkey will see many firms collapse,
hurting economic growth and the balance sheets of the nation's
banks, Ahval discloses.



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


ALBA 2015-1: DBRS Hikes Class E Notes Rating to B(high)
-------------------------------------------------------
DBRS Ratings Limited took the following rating actions on the
bonds issued by Aggregator of Loans Backed by Assets 2015-1 Plc
(ALBA 2015-1 or the Issuer):

-- Class A Notes confirmed at AAA (sf)
-- Class B Notes confirmed at AA (high) (sf)
-- Class C Notes confirmed at A (high) (sf)
-- Class D Notes confirmed at BBB (sf)
-- Class E Notes upgraded to B (high) (sf) from B (sf)

The ratings on the Class A Notes, Class B Notes, Class C Notes,
Class D Notes and Class E Notes (the Rated Notes) 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 November 2018 payment date.

  -- Portfolio default rate (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.

ALBA 2015-1 closed in April 2015 and is a securitization of U.K.
non-conforming residential mortgages originated by Edeus Mortgage
Creators Limited, GMAC-RFC Limited, Amber Home loans Limited and
Kensington Mortgage Company Limited. Pepper (UK) Limited is the
Servicer of the mortgage portfolio.

PORTFOLIO PERFORMANCE AND ASSUMPTIONS

As of the November 2018 payment date, loans more than 90 days
delinquent represented 2.8% of the outstanding collateral pool
balance, up from 2.6% 12 months prior. Cumulative repossessions
represented 4.4.% of the collateral balance at the transaction
closing and cumulative losses were at 1.1%. DBRS conducted a
loan-by-loan analysis of the remaining pool of receivables and
updated its base case PD and LGD assumptions to 21.2% and 24.0%,
respectively.

CREDIT ENHANCEMENT

As of the November 2018 payment date, CE to the Class A, B, C, D
and E Notes increased to 51.8%, 41.2%, 30.7%, 21.6% and 11.0%
from 47.1%, 37.5%, 27.8%, 19.6%, and 9.9%, respectively, 12
months prior. The sources of CE to each of the Rated Notes are
their respective subordinated notes as well as
overcollateralization. Furthermore, the Rated Notes benefit from
a Reserve Fund which provides liquidity and credit support. The
Reserve Fund is currently at its target amount of GBP 8.2
million.

Citibank N.A., London Branch acts as the account bank for the
transaction. Based on DBRS private rating of Citibank N.A.,
London Branch, the downgrade provisions outlined in the
transaction documents, and structural mitigants, DBRS considers
the risk arising from the exposure to the account bank to be
consistent with the ratings assigned to the Class A Notes, as
described in DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.

Notes: All figures are in British pound sterling unless otherwise
noted.


BAMBINO PASTA: DBRS Confirms BB(low) Rating on Class F Notes
------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings of the notes issued by
Rochester Financing No.2 Plc (the Issuer) as follows:

-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (sf)
-- Class D at BBB (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (low) (sf)

The ratings of the Class A, Class B, Class C, Class D, Class E
and Class F notes (together, the Rated Notes) 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 considerations:

  -- Portfolio performance, in terms of delinquencies, defaults
and losses, as of the September 2018 payment date.

  -- Portfolio default rate (PD), loss given default (LGD) and
expected loss assumptions on the remaining receivables.

  -- Current available credit enhancement (CE) to the Rated Notes
to cover the expected losses at their respective rating levels.

The Issuer is a securitization of U.K. non-conforming residential
mortgages originated by DB UK Bank Limited (DB U.K.), Money
Partners Limited and Edeus Mortgage Creators Limited. The
mortgage portfolio was purchased from DB U.K. and Odin Mortgages
Limited by Rochester Mortgages Limited, wholly owned by One
Savings Bank (OSB). OSB retains a material net economic interest
of no less than 5% of the transaction through holding randomly
selected mortgage loans, which would otherwise have been
securitized. OSB acts as Master Servicer. Day-to-day servicing is
delegated to Target Servicing Limited and Home Loan Management
acts as the Back-Up Servicer for the transaction.

PORTFOLIO PERFORMANCE

As of September 2018, two- to three-month arrears represented
3.0% of the outstanding portfolio balance, up from 2.4% in
September 2017. The 90+ delinquency ratio was 6.4%, up from 3.9%
in September 2017. The cumulative loss ratio was 0.2%.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis of the remaining pool of
receivables and updated its base case PD and LGD assumptions to
25.5% and 19.0% from 21.7% and 19.3%, respectively.

CREDIT ENHANCEMENT

CE is provided by subordination of the junior classes and a
General Reserve. As of the September 2018 payment date, Class A
CE was 43.6%, up from 32.0% at the DBRS initial rating; Class B
CE was 32.2%, up from 23.3%; Class C CE was 25.7%, up from 18.3%;
Class D CE was 20.2%, up from 14.0%; Class E CE was 15.7%, up
from 10.5%; and Class F CE was 12.7%, up from 8.3% at the DBRS
initial rating.

The General Reserve covers shortfalls in senior fees, interest on
the Rated Notes, and principal via the Principal Deficiency
Legers (PDLs) on the Rated Notes. The target balance of the
General Reserve is equal to 3.0% of the initial Rated Notes
balance minus the Liquidity Reserve target amount. As the
Liquidity Reserve amortizes the size of the General Reserve
increases through available excess spread. At the September 2018
payment date, the General Reserve was at its target level of GBP
5.7 million.

The Liquidity Reserve is sized at 2.0% of the outstanding balance
of the Class A to D notes. The Liquidity Reserve covers
shortfalls in senior fees and interest on the Class A to D notes.
Payment on the Class B, C and D notes is subject to the PDL for
each class of notes being less than 25.0% of the outstanding
Class balance. At the September 2018 payment date, the Liquidity
Reserve was at its target level of GBP 4.8 million.

The Class E and F notes benefit from a Junior Liquidity Reserve
equal to 0.5% of the Class A to F notes. Support to the Class F
notes is subject to the PDL being less than 75.0% of the
outstanding Class Balance. At the September 2018 payment date,
the Junior Liquidity Reserve was at its target level of GBP 1.6
million.

Elavon Financial Services DAC, U.K. Branch (Elavon) acts as the
account bank for the transaction. Based on the DBRS private
rating of Elavon, the downgrade provisions outlined in the
transaction documents, and structural mitigants, DBRS considers
the risk arising from the exposure to Elavon to be consistent
with the ratings assigned to the notes, as described in DBRS's
"Legal Criteria for European Structured Finance Transactions"
methodology.

Notes: All figures are in British pound sterling unless otherwise
noted.


COLONNADE CRE 2017-1: DBRS Confirms BB(high) Rating on Tranche K
----------------------------------------------------------------
DBRS Ratings Limited confirmed provisional ratings of 11 tranches
of an unexecuted, unfunded financial guarantee (the Senior
Guarantee) referencing a portfolio of commercial real estate
(CRE) loans (the Portfolio) originated and managed by Barclays
Bank PLC (Barclays) and its affiliates as follows:

-- GBP 2,273,108,669 Tranche A at AAA (sf)
-- GBP 51,854,094 Tranche B at AA (high) (sf)
-- GBP 49,025,689 Tranche C at AA (sf)
-- GBP 32,055,258 Tranche D at AA (low) (sf)
-- GBP 30,169,655 Tranche E at A (high) (sf)
-- GBP 29,226,853 Tranche F at A (sf)
-- GBP 43,368,879 Tranche G at A (low) (sf)
-- GBP 41,797,543 Tranche H at BBB (high) (sf)
-- GBP 37,083,534 Tranche I at BBB (sf)
-- GBP 57,825,172 Tranche J at BBB (low) (sf)
-- GBP 10,284,609 Tranche K at BB (high) (sf)

All trends are Stable.

The rating confirmations come after the stable performance of the
securitized loans between inception and Q3 2018. The notional
amount for Tranche A has been reduced to GBP 2.3 billion from GBP
2.5 billion at issuance following the repayments/removals of a
total seven securitized loans, thus improving the credit
enhancement for Tranche A.

Colonnade CRE 2017-1 SARL (the Guarantor) is a synthetic balance
sheet commercial mortgage-backed securities structured in the
form of a financial guarantee. Barclays bought protection under a
junior financial guarantee (JFG) for the first loss piece (FLP)
from Colonnade CRE 2017-1 Sarl but has not executed the contracts
relating to the senior tranches (senior financial guarantee,
SFG). Under the unexecuted guarantee agreement, Barclays has
transferred the remaining credit risk (from 8% to 100%) of the
Portfolio. DBRS only rates the SFG tranches, which were not
executed at closing, and DBRS's ratings remain provisional. The
junior tranche was sold with the JFG executed. The financial
guarantees reference 81 (88 at inception) UK loans, all fully
ring-fenced with no additional subordinated debt, and are set to
expire in May 2023 at the latest. The transaction does not
envisage any revolving period, although the referenced loans may
be subject to extension/refinancing.

With the repayment/removal of seven securitized loans, the
portfolio's total facility commitment (including undrawn
facilities) has reduced to GBP 3.3 billion from GBP 3.5 billion
at issuance. As such, the guaranteed obligation notional amount
(GONA) amortized to GBP 2.9 billion as of the August 2018
interest payment date (IPD) compared with GBP 3.1 billion at
inception. As of the last IPD, 26 borrowers have not yet fully
utilized their facilities. To reflect the possibility of further
drawings, DBRS has modelled all the loans assuming they are fully
drawn (term and revolving credit facility).

DBRS based its analysis of the syndicated loans on the pre-
syndication amount and then scaled back the debt amount to the
securitized portion when calculating transaction-level proceeds.

There are 2,932 properties securing the whole portfolio, a slight
increase since issuance. This is partially due to the renewal of
one loan that has seen a large number of residential properties
added. The renewed loan, however, still shows a low loan-to-value
as of August 2018 IPD.

The market value geographical concentration of the portfolio as
of the August 2018 IPD remains stable with the top three regions
being Greater London (59.0% versus 58.0% at issuance), South East
(8.7% versus 8.6% at issuance) and North West (5.8% versus 6.3%).
DBRS notes that although the portfolio is still concentrated in
economically strong regions, the value of CRE assets is strongly
linked to the economical performance of the UK economy, which is
highly dependent on the result of Brexit. DBRS did not apply any
additional value stress on the portfolio in this rating action;
however, additional stress might be warranted following a
stressed Brexit scenario and/or if DBRS downgrades the rating of
the UK below its current AAA level.

DBRS followed the same method as issuance in sizing the portfolio
and compared the sizing outcome with the Q3 2018 reported GONA
and concluded the rating confirmations for all classes.

The ratings assigned to the Tranche K notes materially deviate
from the rating stress levels that the notes can withstand
according to DBRS's direct sizing hurdles, which are a
substantial component of DBRS's "European CMBS Rating and
Surveillance" methodology. DBRS considers a material deviation to
be a rating differential of three or more notches between the
assigned rating and the rating stress level implied by a
substantial component of a rating methodology. In this
transaction, the assigned lower rating is because the class of
note cannot pass upgrade stress.

DBRS will maintain and monitor the provisional ratings throughout
the life of the transaction or while it continues to receive
performance information.

Notes: All figures are in British pound sterling unless otherwise
noted.


DIAMOND BANK: Fitch Lowers LT Issuer Default Rating to 'CC'
-----------------------------------------------------------
Fitch Ratings has downgraded Diamond Bank Plc's Long-Term Issuer
Default Rating to 'CC' from 'CCC' and Viability Rating (VR) to
'cc' from 'ccc' and placed its IDRs and VR on Rating Watch
Evolving. The agency has simultaneously placed Access Bank Plc on
Rating Watch Negative.

The downgrade of Diamond's ratings reflects the deterioration in
the bank's foreign-currency (FC) liquidity position since the
last review and an expected deterioration in the bank's capital
position following additional loan impairment charges (LICs) on
the announced write-offs of stage 3 loans under IFRS 9, to take
place by year-end.

The Rating Watches (RW) follows a memorandum of agreement between
the banks to merge. The merger is expected to be completed by
end-June 2019. Although the agreement is subject to regulatory
and shareholder approval, Fitch believes that the probability of
the completion of the merger is sufficiently high to take rating
action.

KEY RATING DRIVERS

IDRS and VR

The RWE on Diamond reflects Fitch's view that its standalone
creditworthiness could improve or deteriorate beyond the current
ratings, depending on the realisation of the merger and the
bank's ability to meet its upcoming FC obligations prior to it.

The upside aspect of the RWE reflects Fitch's view that should
Diamond meet its near-term obligations and the merger be
completed, it is likely to be positive for the bank's creditors
due to the stronger franchise and financial metrics of the
combined entity. Following completion of the merger, Diamond will
cease to exist as a separate legal entity, and Fitch will then
withdraw its ratings.

However, the downside aspect of the RWE reflects significant risk
with regards to the bank's near-term FC liquidity position given
its large short-term bullet repayments, including a USD200
million Eurobond maturing in May 2019, USD100 million from
Afrexim due in March 2019, and USD70 million from the
International Finance Corporation due in July 2019. Fitch also
understands that some large long-term obligations have recently
become current suggesting intensified liquidity pressure.

According to Diamond's FC liquidity plan, the bank should be able
to meet its obligations using existing US dollar liquidity,
proceeds from the sale of its UK subsidiary, cash flows from
maturing US dollar loans (mainly from oil and gas loans), and by
exchanging naira into US dollars through the interbank market.
However, the plan is based on a number of assumptions, including
the completion of the sale of the UK subsidiary, which has not
yet been approved by the Prudential Regulation Authority in the
UK, and therefore liquidity remains tight and highly vulnerable.
Fitch also understands that Access may provide some liquidity
support to Diamond, although it will not assume a direct
liability for Diamond's debt payments pre-merger. Access
withdrawing from the deal would most likely be negative for
Diamond.

The RWN on Access's Long-Term IDR of 'B' and VR reflects the
potentially negative impact on its financial metrics from the
absorption of a weaker bank and execution risks post-merger. Upon
completion of the merger Fitch will assess the bank's credit
profile. A potential downgrade is likely to be limited to one
notch. However, it is also possible that Access's ratings could
be affirmed with a Stable Outlook if the impact from merger
appears to be more moderate, given the bank's currently sound
financial metrics and the planned capital raising, and provided
there are no additional unforeseen risks emerging from Diamond.

Diamond's stage 3 loans stood at 37% of gross loans at end-1H18.
Additionally, the bank's stage 2 loans stood at 23% of gross
loans at end-1H18, indicating the extent of its weak asset
quality. Access has better asset quality with stage 3 loans and
stage 2 loans accounting for 5% and 14% of gross loans,
respectively, at end-1H18. Diamond plans to take LICs of between
NGN150 billion-NGN180 billion before writing off bad loans by
end-2018. Diamond's total equity was NGN 222 billion at end-9M18,
meaning that its capital position at end-December 2018 following
the write-offs will be materially weaker.

For regulatory capital calculations, Fitch understands that as
per the central bank's IFRS 9 transition guidelines, Diamond will
be able to phase-in the impact of additional LICs on its total
capital adequacy ratio (CAR) over a four-year period, allowing it
to remain above its 10% minimum regulatory requirement.

Access estimates that its CAR should stand at around 20% (above
its minimum regulatory capital requirement of 15%) post-merger.
This will be helped by the expected USD250 million Tier 2 capital
issuance in January 2019 and strong retained earnings.

NATIONAL RATINGS

The banks' National Ratings reflect their creditworthiness
relative to the country's best credit and relative to peers
operating in Nigeria. Diamond's National Long- and Short-Term
Ratings have been downgraded to 'CCC' and 'C', respectively, from
'B' and 'B', reflecting its weaker credit profile relative to
peers.

Diamond's National Ratings have also been placed on RWE based on
its expectation that its assets and liabilities will be
transferred to Access's balance sheet, but also that its credit
profile may deteriorate further relative to peers' in the
interim. The RWN on Access's National Ratings indicates potential
downside risks of the merger.

SENIOR AND SUBORDINATED DEBT

Diamond's senior unsecured debt rating has been downgraded to
'CC'/'RR4' from 'CCC'/'RR4'. Diamond's senior unsecured debt
rating has also been placed on RWE, reflecting that on its Long-
Term IDR.

The Long-Term Ratings on Access's senior unsecured and
subordinated debt have been placed on RWN, reflecting that on its
Long-Term IDR.

RATING SENSITIVITIES

IDRS, VR AND NATIONAL RATINGS

The ratings were placed on RW due to an ongoing situation which
requires resolution, which may take place in more than six
months.

Fitch expects to resolve the respective banks' RW once the merger
is completed and there is more clarity on the credit profile,
integration and strategy/risk appetite performance prospects of
the combined entity. At this point, Fitch will take action on
Diamond Bank's ratings and simultaneously withdraw them, as the
bank will cease to exist as a separate legal entity.

In the interim period, Fitch will also review Diamond's RW should
its liquidity position (especially in FC) significantly change,
either positively or negatively, or should its solvency position
deteriorate.

Post-merger, Access's ratings could be downgraded if the bank's
financial profile, particularly its capitalisation, asset quality
or FC liquidity deteriorates or in the medium term, if the bank's
risk appetite, strategy and/or business model changes direction.
They could be affirmed if the impact from merger appears to be
more moderate or upgraded in the medium term if Access's
financial profile becomes sustainably comparable with higher
rated peers, such as Zenith Bank, Guaranty Trust Bank or United
Bank for Africa.

The banks' National Ratings also remain sensitive to a change in
their creditworthiness relative to other Nigerian issuers.

SENIOR AND SUBORDINATED DEBT

A change in the banks' IDRs would ultimately lead to a change in
the ratings of their senior debt. A change in Access's VR would
lead to a change in the rating of its subordinated debt

The rating actions are as follows:

Diamond Bank

Long-Term IDR downgraded to 'CC' from 'CCC'; placed on RWE

Short-Term IDR 'C'; placed on RWE

Viability Rating downgraded to 'cc' from 'ccc'; placed on RWE

Support Rating unaffected at '5'

Support Rating Floor unaffected at 'No Floor'

National Long-Term Rating downgraded to 'CCC(nga)' from
'B(nga)';
placed on RWE

National Short-Term Rating downgraded to 'C(nga)' from 'B(nga)';
placed on RWE

Senior unsecured long-term rating downgraded to 'CC'/'RR4' from
'CCC'/'RR4'; placed on RWE

Access Bank Plc

Long-Term IDR 'B'; placed on RWN

Short-Term IDR affirmed at 'B';

Viability Rating 'b'; placed on RWN

Support Rating unaffected at '5'

Support Rating Floor unaffected at 'No Floor'

National Long-Term Rating 'A+(nga)'; placed on RWN

National Short-Term Rating 'F1(nga)'; placed on RWN

Senior unsecured long-term rating 'B'/'RR4'; placed on RWN

Senior unsecured short-term rating affirmed at 'B'

Subordinated long-term rating 'B-'/'RR5': placed on RWN


FERROGLOBE: S&P Assigns B+ Issuer Credit Rating, Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings assigns its 'B+' long-term issuer credit
rating to Ferroglobe.

The rating on Ferroglobe reflects the company's relatively small
and volatile operations combined with comparatively high adjusted
debt level.

The company produces silicon metal, and silicon and manganese-
based alloys, which are key ingredients in steel and silicon
wafers production, as well as in other industrial applications.
It was formed in 2015 as a combination of FerroAtlantica and
Globe Specialty Metals.

S&P said, "Our assessment of the company's weak business risk
takes into account Ferroglobe's absolute size compared to other
metal downstream players, with EBITDA of $250 million-$270
million in 2018. Moreover, the company produces mainly standard-
specification items. While silicon metal, and silicon and
manganese-based alloys supply and demand fundamentals are not
correlated, historically prices have been highly volatile, at the
same time. In this respect, lack of added value translates into
wide swings in profitability (for example in 2016, the company's
EBITDA dropped by more than 60%). Lastly, the company has a
median cash cost structure, however not fully homogenous, with
some assets in the first quartile and some in the fourth quartile
of the cost curve (excluding China). This leads to EBTIDA margin
of approximately 8%-13% (depending on the point in cycle), which
we view as average in the industry.

"On the other hand, we also factor into our assessment
Ferroglobe's position as a global leading producer in its
subsectors with total capacity of approximately 1.6 million
metric tons (mt). This translates into market shares of
approximately 20%-30% in the different divisions (other sizeable
players include Privat Group and DowDuPont). The company has a
fair global footprint with facilities in Europe, the Americas,
Africa, and China, allowing it to optimize its production and
logistics at short notice. Ferroglobe is also able to shift
production to the extent capacity allows, utilizing the most
cost-efficient plants.

"After healthy prices in 2017 and in the first half of 2018, we
recently witnessed some softness in prices, which we believe will
continue into 2019. This was mainly driven by lower demand, while
production remained at a high level, leading to overcapacity and
build-up of inventory. Post third-quarter 2018 results,
Ferroglobe decided to shut down some of its costlier plants,
approximately 10% of its total capacity. Given the company's
overall market share, we don't believe that it will have a
material impact on the global supply, unless more companies
follow. Over the medium and long term, market fundamentals remain
supportive with an annual demand growing at 3%-5%.

"Our assessment of Ferroglobe's aggressive financial risk
reflects the combination of relatively high adjusted debt (about
$1.1 billion as of Sept. 30, 2018) and highly volatile EBITDA,
which could translate into a wide range of credit metrics during
the cycle. For example, we expect adjusted debt to EBITDA to be
about 4.5x-5.0x in 2019, compared to 3.5x-4.0x in 2018 and 5.0x
in 2017. On the other hand, our assessment takes into account the
company's ability to generate positive FOCF through the cycle and
material working capital inflows during downturns.

"Other supportive factors include the company's financial policy-
-Ferroglobe has a public target of net debt to EBTIDA below 1.5x,
which should support deleveraging through the cycle (as of Sept.
30, 2018 this ratio was 1.9x). We expect that during downturns
the company would not pay dividends unless it generated positive
FOCF for several quarters. In addition, Ferroglobe can cut or
postpone capex (as it announced post third quarter 2018),
preserving cash during a downturn.

"Under our base-case scenario, we project Ferroglobe's 2018
adjusted EBITDA to improve to approximately $250 million-$270
million in 2018 from $180 million in 2017, primarily on the back
of stronger prices in the company's end-markets at the beginning
of 2018 and improved capacity after the purchase of the manganese
plants from Glencore. Following recent weakness in prices, we
project a sharp drop in EBITDA for 2019 to $160 million-$200
million."

S&P's base case assumes:

-- Ferroglobe's core markets to experience further growth but at
    a slower pace. U.S. and eurozone GDP growth of 2.9% and 2.0%
    respectively in 2018; 2.3% and 1.7% in 2019. S&P expects the
    demand for the company's products to be growing slightly more
    than GDP, at 3%-5% per year.

-- Shipments of silicon metal and silicon-based alloys at
    approximately 630,000-650,000 mt in 2018, up from 610,000 mt
    in 2017. Manganese-based alloys shipments to increase to
    350,000-375,000 mt in 2018 from 275,000 mt in 2017,
    reflecting additional capacity from new plants acquired in
    February 2018. Decrease in volumes in 2019 of 5%-10%, as the
    company cuts capacity to address oversupply.

-- Average selling price (excluding by-products) at
     approximately $1,875 per mt in 2018, and $1,750 in 2019,
     compared to $1,765 per mt in 2017.

-- EBITDA margin of about 12% in 2018, deteriorating to 10% in
    2019 (similar to the level in 2017), driven largely by
    decreasing sale prices, but also by higher energy costs.

-- In the first nine months of 2018, the company saw a material
    working capital outflow of about $160 million, of which $95
    million relates to the assets acquired from Glencore. S&P
    expects the release of about $50 million-$100 million in the
    coming quarters with the reduction of prices and inventories.
    During the last downturn in 2016, the company saw a working
    capital inflow of about $200 million.

-- Capex of $100 million in 2018, with approximately $35 million
     related to Solar-grade silicon plant construction and the
     rest for maintenance. Reduction of capex to $80 million-$90
     million in 2019, including approximately $20 million related
     to Solar-grade silicon plant and the rest for maintenance
     purposes.

-- $40 million of dividends and share buybacks in 2018, with no
    further dividends in 2019, until the market situation
    improves.

-- M&A--$30 million of proceeds from contracted assets sales in
    2018. Purchase of Glencore assets in 2018 to result in
     approximately $100 million of working capital outflow in
     2018. In addition, $80 million liability for future payment
     to Glencore.

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

-- S&P Global Ratings-adjusted debt to EBITDA of approximately
    3.5x-4.0x in 2018 and 4.5x-5.0x in 2019.

-- FFO to S&P Global Ratings-adjusted debt of approximately 15%-
    18% in 2018 and 12%-15% in 2019.

-- Negative $15 million-$35 million of FOCF generation in 2018,
    turning positive $25 million-$65 million in 2019 (before
    potential working capital inflow).

As of Sept. 30, 2018, reported net debt was $511 million and S&P
Global Ratings-adjusted debt was approximately $1,050 million.
S&P said, "Our adjusted debt is gross and includes $250 million
of receivables securitization and factoring, $80 million of
future payments to Glencore, and additional obligations such as
pension, operating leases, and asset retirement obligations. As
part of our adjustments, we do not deduct the company's cash
($132 million as of Sept. 30, 2018)."

S&P said, "Grupo Villar Mir (GVM) holds the majority stake of
approximately 53% in Ferroglobe. For the purposes of our
analysis, we consider GVM an investment holding company. We see
GVM's credit quality as weaker than Ferroglobe's. This reflects
our view of generally small size and relatively high leverage of
GVM's investees, and relatively high debt level at GVM level. In
addition to Ferroglobe, the main investees include Obrascon
Huarte Lain (construction), Fertiberia (fertilizers), and
Inmobiliaria Espacio (real estate). The weaker performance of OHL
and Ferroglobe will result in minor dividends to parent in 2019.
We understand that recently GVM refinanced large portion of its
debt.

Although GVM holds 53% of the Ferroglobe's shares, Ferroglobe's
shareholder agreement caps GVM's participation on the board to
three out of 11 directors. In our view, this limits the level of
control GVM has over the activities of Ferroglobe. Additionally,
in our opinion, in a hypothetical scenario of GVM's bankruptcy,
the court will likely not draw Ferroglobe's assets into
proceedings. This is especially true because Ferroglobe is a
publicly listed company traded on the Nasdaq Stock Market.
Nevertheless, in our view, there are still some links between the
two entities, and a hypothetical bankruptcy of GVM (and
subsequent loss of control in Ferroglobe) could affect
Ferroglobe's creditworthiness. Specifically, under the terms of
$350 million notes due 2022 there is a change of control offer
that requires Ferroglobe to offer the repurchase of the bond to
the noteholders. The current rating is not capped by the weaker
creditworthiness of GVM.

"The negative outlook reflects a potential downgrade in the
coming six months if prices dropped below our assumptions,
resulting in weaker credit metrics and neutral FOCF. Under our
base-case scenario, we assumed EBITDA of $160 million-$200
million in 2019, with relatively weak results in the first half
and some recovery in the second part of the year.

"We view adjusted debt to EBITDA of 3.5x-5.0x (depending on the
point in the cycle), together with positive FOCF and a flexible
dividend policy as commensurate with the current rating. Based on
current market prices, which are still above the 2016 cycle
trough, we expect an adjusted debt to EBITDA to be close to 5.0x
with positive FOCF (before potential working capital inflow).
We note that the current rating is not capped by the weaker
creditworthiness of the largest shareholder, Grupo Villar Mir
(53% share)."

In S&P's view, a negative rating action could be triggered by one
or more of the following:

-- A decline of 10%-15% in average selling prices, leading to
    S&P's adjusted debt to EBITDA above 5.0x in 2019, without an
    obvious rebound in the following 12 months.

-- Deviation from the existing financial policy. For examples,
    re-leveraging the balance sheet, re-instating the dividends
     while market conditions remain subdue, or embarking on a
     large capex project.

-- Lastly, S&P could also consider a lower rating if it
    witnessed a material deterioration in the creditworthiness of
    Grupo Villar Mir.

A stable outlook would be linked primarily to a rebound in
silicon metal and ferroalloys prices. This could be driven by
other producers scaling down their production and/or higher
demand for Ferroglobe's products, resulting in a balanced supply
and demand situation.

At this stage, S&P does not foresee an upgrade in the coming 12-
18 months. However, over time it could raise the rating by one
notch if it sees progress on the following:

-- Improvement in the creditworthiness of Grupo Villar Mir or
    evidence of further de-linkage between the entities.

-- Further deleveraging, with S&P Global Ratings-adjusted debt
     to EBITDA of below 3.5x under mid-cycle conditions, as well
     as positive FOCF.

-- Longer financial policy track record, including dividend
    distribution only from FOCF, compliance with the stated
    leverage target (reported net debt to EBITDA of 1.5x), and at
    least adequate liquidity.


HMV GROUP: Enters Administration, KPMG Seeks Buyer for Business
---------------------------------------------------------------
Samantha Machado and Bhargav Acharya at Reuters report that music
retailer HMV said on Dec. 28 it was calling in the
administrators, blaming a worsening market for entertainment CDs
and DVDs, to become the latest victim of brutal trading
conditions in Britain's retail sector.

According to Reuters, HMV said in a statement the accounting firm
KPMG has been named as the administrator and intends to keep the
business running while it seeks a potential buyer.

KPMG said in a statement on Dec. 28 Will Wright --
will.wright@kpmg.co.uk -- Neil Gostelow and David Pike --
david.j.pike@kpmg.co.uk -- from its Restructuring practice have
been confirmed as joint administrators to HMV Retail Limited and
HMV Ecommerce Limited, Reuters relates.

The retailer, one of Britain's best-known high street stores,
went into administration in 2013 before its rescue by
restructuring specialist Hilco, but it has since been hit by
competition from online rivals and music streaming services,
Reuters recounts.

Sky News earlier reported that about 2,200 jobs were at risk if
HMV went into administration, adding that the company had been in
talks with leading names in the recorded music industry for
funding, but that those discussions came to nothing, Reuters
notes.

"During the key Christmas trading period, the market for DVDs
fell by over 30 percent compared to the previous year, and whilst
HMV performed considerably better than that, such a deterioration
in a key sector of the market is unsustainable," Reuters quotes
Paul McGowan, Executive Chairman of HMV and its owner Hilco
Capital, which paid around GBP50 million (US$63.47 million) for
the group in 2013, as saying.

"The company has suffered from the ongoing wave of digital
disruption sweeping across the entertainment industry", Mr.
Wright, a joint administrator and partner at KPMG, as cited by
Reuters, said.

"Over the coming weeks, we will endeavour to continue to operate
all stores as a going concern while we assess options for the
business, including a possible sale."

In the years running up to its first rescue in 2013, HMV
struggled to hold its own against supermarkets and online
services in sales of CDs, DVDs and video games, Reuters
discloses.


PENTA CLO 5: Moody's Gives B2 Rating to EUR19.2MM Class F Notes
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Penta CLO 5
Designated Activity Company.

Moody's rating action is as follows:

EUR1,500,000 Class X Senior Secured Floating Rate Notes due 2032,
Definitive Rating Assigned Aaa (sf)

EUR158,000,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aaa (sf)

EUR90,000,000 Class A-2 Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aaa (sf)

EUR32,900,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aa2 (sf)

EUR5,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Definitive Rating Assigned Aa2 (sf)

EUR23,900,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2032, Definitive Rating Assigned A2 (sf)

EUR26,600,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2032, Definitive Rating Assigned Baa3 (sf)

EUR22,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2032, Definitive Rating Assigned Ba2 (sf)

EUR12,900,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2032, Definitive Rating Assigned B2 (sf)

The Class X, 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

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 Partners Group (UK)
Management Ltd has sufficient experience and operational capacity
and is capable of managing this CLO.

Penta CLO 5 Designated Activity Company is a managed cash flow
CLO. The issued notes will be collateralized primarily by broadly
syndicated first lien senior secured corporate loans. At least
92.5% of the portfolio must consist of senior secured loans,
cash, and eligible investments, and up to 7.5% of the portfolio
may consist of second lien loans, unsecured loans, mezzanine
obligations and or high yield bonds.

Partners Group (UK) Management Ltd 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.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A-1 Notes and
Class A-2 notes. The Class X Notes amortises by 25% over four
payment dates starting on the 2nd payment date.

In addition to the Rated Notes, the issuer will issue EUR 40.60
million 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.

The Credit Ratings of the notes issued by Penta CLO 5 Designated
Activity Company were assigned in accordance with Moody's
existing Methodology entitled "Moody's Global Approach to Rating
Collateralized Loan Obligations" dated August 31, 2017. Please
note that on November 14, 2018, Moody's released a Request for
Comment, in which it has requested market feedback on potential
revisions to its Methodology for Collateralized Loan Obligations.
If the revised Methodology is implemented as proposed, the Credit
Rating of the notes issued by Penta CLO 5 Designated Activity
Company may be neutrally affected.

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:

Par Amount: EUR 400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.60%

Weighted Average Recovery Rate (WARR): 43.50%

Weighted Average Life (WAL): 8.5 years


SLATE PLC 1: Moody's Affirms Ba1 Rating on Class E Notes
--------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five Notes
in Slate No.1 PLC, Finsbury Square 2016-1, Finsbury Square 2016-
2.

Moody's affirmed the ratings of ten Notes that had sufficient
credit enhancement to maintain the current rating on the affected
Notes.

Issuer: Slate No.1 PLC (Public)

GBP1931.31M Class A Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Affirmed Aaa (sf)

GBP202.67MClass B Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Upgraded to Aaa (sf)

GBP101.33M Class C Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Upgraded to Aaa (sf)

GBP41.73M Class D Notes, Upgraded to Aa2 (sf); previously on
Mar 27, 2018 Upgraded to Aa3 (sf)

GBP47.67M Class E Notes, Affirmed Ba1 (sf); previously on
Mar 27, 2018 Upgraded to Ba1 (sf)

Issuer: Finsbury Square 2016-1

GBP299.20M Class A Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Affirmed Aaa (sf)

GBP15.84M Class B Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Upgraded to Aaa (sf)

GBP15.84M Class C Notes, Affirmed Aaa (sf); previously on
Mar 27, 2018 Upgraded to Aaa (sf)

GBP10.56M Class D Notes, Upgraded to Aa3 (sf); previously on
Mar 27, 2018 Upgraded to A2 (sf)

GBP10.56M Class E Notes, Affirmed Caa2 (sf); previously on
Mar 27, 2018 Affirmed Caa2 (sf)

Issuer: Finsbury Square 2016-2

GBP296.70M Class A Notes, Affirmed Aaa (sf); previously on
Oct 13, 2016 Definitive Rating Assigned Aaa (sf)

GBP14.66M Class B Notes, Upgraded to Aaa (sf); previously on
Oct 13, 2016 Definitive Rating Assigned Aa1 (sf)

GBP15.52M Class C Notes, Upgraded to Aa1 (sf); previously on
Oct 13, 2016 Upgraded to Aa3 (sf)

GBP7.76M Class D Notes, Upgraded to Aa2 (sf); previously on
Oct 13, 2016 Upgraded to A1 (sf)

GBP10.36M Class E Notes, Affirmed Ba2 (sf); previously on
Oct 13, 2016 Upgraded to Ba2 (sf)

RATINGS RATIONALE

The rating action is prompted by:

  - deal deleveraging resulting in an increase in credit
    enhancement for the affected tranches; and

  - decreased key collateral assumptions, namely the portfolio
    Expected Loss (EL) due to better than expected collateral
    performance.

Moody's affirmed the ratings of Notes that had sufficient credit
enhancement to maintain the current rating on the affected Notes.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its lifetime
loss expectation for the portfolio reflecting the collateral
performance to date.

Moody's decreased the Expected Loss assumption for Finsbury
Square 2016-1 to 1.40% as a percentage of original pool balance
from 2.00% and for Finsbury Square 2016-2 to 1.30% from 2.00%.

The Expected Loss assumption for Slate No. 1 PLC (Public)
remained unchanged.

Moody's has also assessed loan-by-loan information as a part of
its detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. The MILAN CE assumptions remained unchanged for all three
deals.

The rating action also took into account the increased
uncertainty relating to the impact of the performance of the UK
economy on the transaction over the next few years due to the on-
going discussions relating to the final Brexit agreement.

Increase in Available Credit Enhancement:

Sequential amortization led to the increase in the credit
enhancement available in these three transactions.

For Slate No.1 PLC (Public), the credit enhancement for Class D
affected by the rating action increased from 5.65% to 12.80%
since closing.

For Finsbury Square 2016-1, the credit enhancement for Class D
affected by the rating action increased from 5.00% to 15.90%
since closing.

For Finsbury Square 2016-2, the credit enhancement for Classes B,
C and D affected by the rating action increased from 11.75% to
30.70%, from 7.25% to 19.00%, and from 5.00% to 13.10%
respectively since closing.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (i) performance of the underlying collateral
that is better than Moody's expected; (ii) deleveraging of the
capital structure; and (iii) improvements in the credit quality
of the transaction counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include: (i) an increase in sovereign risk; (ii)
performance of the underlying collateral that is worse than
Moody's expected; (iii) deterioration in the notes' available
credit enhancement; and (iv) deterioration in the credit quality
of the transaction counterparties.



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


NATIONAL BANK: S&P Raises Long-Term Rating to BB-
-------------------------------------------------
S&P Global Ratings raised its long-term ratings on National Bank
For Foreign Economic Activity of the Republic of Uzbekistan (NBU)
and KDB Bank Uzbekistan JSC to 'BB-' from 'B+' and affirmed its
'B' short-term ratings on the two banks. The outlooks are stable.

S&P said, "The rating actions follow our 'BB-/B' ratings
assignment to the Republic of Uzbekistan on Dec. 21, 2018. Our
view of the sovereign's creditworthiness previously constrained
the ratings on the two banks at 'B+'.

"For NBU, this is because we consider the creditworthiness of
state-owned banks to be correlated to that of the sovereign. Our
ratings on KDB are also capped by our rating on Uzbekistan,
despite the bank's ownership by, and strategic importance to, a
higher-rated foreign entity.

"Our ratings on Uzbekistan are supported by the government's
strong fiscal and external positions. These strengths
predominately arise from the government's large asset position,
which stems from the past policy of transferring part of the
revenues from commodity sales to the Uzbekistan Fund for
Reconstruction and Development (UFRD). At the same time, our
ratings are constrained by Uzbekistan's low economic wealth, as
measured by GDP per capita. In our view, future policy responses
may be difficult to predict, given the highly centralized
decision-making process and that accountability and checks and
balances between institutions are relatively underdeveloped. Our
ratings are also constrained by low monetary policy flexibility."

NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY OF THE REPUBLIC OF
UZBEKISTAN (NBU)

S&P said, "Our ratings on NBU reflect the bank's diversified
business model, with leading market positions in state
development projects and other nongovernment segments. The bank's
relatively modest core profitability by domestic standards is
constrained by the limited net interest income, as NBU acts as
the state's agent in financing targeted industries at capped
margins set by government decrees. While the bank has a proven
track record of maintaining stable profitability over the cycle,
we believe that earnings capacity is still lagging behind
expected asset growth. Finally, we consider the bank's funding
diversification to be better than local peers' and liquidity as
adequate. Our assessment of NBU's risk profile balances marked
ongoing support from the sovereign (direct and indirect via state
guarantees) with high concentrations, a significant amount of
foreign currency lending, and a fast expansion strategy.

"We assess the bank's stand-alone credit profile at 'bb-'. We
consider the bank has high systemic importance within the banking
sector of Uzbekistan and is a government-related entity (GRE)
with a very high likelihood of extraordinary government support.
However, our ratings do not reflect this in the form of an
uplift, as the stand-alone credit profile (SACP) is at the same
level as our sovereign rating.

"The stable outlook on NBU reflects our view of the balance
between expected continued state support over the next 12 months
and high economic and industry risks for banks operating in
Uzbekistan.

"We consider state-owned banks' creditworthiness to be closely
linked to that of Uzbekistan. Therefore, we are unlikely to raise
the ratings on NBU over the next 12 months unless our view of the
sovereign's creditworthiness improves. We view an upgrade driven
by improvements in bank-specific factors as unlikely over the
next year.

"We could downgrade NBU over the next 12 months to reflect
heightened economic and industry risk, for example caused by a
deterioration of the sovereign's creditworthiness. A downgrade
linked to bank-specific factors is remote, as this would require
both material weakening of NBU's currently adequate asset quality
and deterioration of capitalization (with our projected risk-
adjusted capital [RAC] ratio declining to below 3%)."

KDB BANK UZBEKISTAN JSC

S&P said, "Our ratings on KDB Uzbekistan reflect its small
lending franchise, stable depositor base, high liquidity cushion,
and funding metrics that we see as much stronger than those of
peers. We also incorporate in our ratings its strategic intention
to rapidly expand its lending business over the next two years.
Following our assignment of ratings to Uzbekistan, we view the
capitalization of KDB as a positive rating attribute, owing to
high amount of placements with the central bank of Uzbekistan
(about 20%-25% of assets). Previously, in the absence of a
sovereign credit rating on Uzbekistan, we applied more
conservative risk weights in calculating of our RAC ratio for
KDB. We expect that the bank will be able to maintain a solid
capital buffer, with a RAC ratio of close to 10.8% at year-end
2019. We have therefore revised upward our SACP on the bank to
'bb-' from 'b+'.

"We consider KDB Uzbekistan a strategically important subsidiary
of Korea Development Bank (AA/Stable/A-1+). In our view, there is
a high likelihood that the parent would provide extraordinary
support to KDB in the form of capital or liquidity if needed.
According to our criteria, we may rate strategically important
subsidiaries up to three notches above their SACP. However, we
cap the ratings on KDB at the level of our foreign currency long-
term sovereign rating on Uzbekistan."

The stable outlook on KDB largely mirrors the stable outlook on
Uzbekistan.

S&P said, "We could raise the long-term rating on KDB or revise
the outlook to positive over the next 12 months if we took a
similar rating action on the sovereign, assuming that there is no
change in the commitment of the parent, Korea Development Bank,
to provide extraordinary support to its Uzbek subsidiary if
needed.

"We could take a negative rating action if we took a similar
rating action on the sovereign. Although unlikely, a significant
deterioration of the bank's SACP and changes in parent's
commitment to provide extraordinary support could also prompt a
negative rating action."

  RATINGS SCORE SNAPSHOT

  National Bank For Foreign Economic Activity of the Republic of
  Uzbekistan

                           To                   From
  Issuer Credit Rating     BB-/Stable/B         B+/Stable/B
  SACP                     bb-                  bb-
   Anchor                  b+                   b+
   Business Position       Strong (+1)          Strong (+1)
   Capital and Earnings    Weak (0)             Weak (0)
   Risk Position           Adequate (0)         Adequate (0)
   Funding and             Above Average and    Above Average and
   Liquidity               Adequate (0)         Adequate (0)
  Support                  0                    0
   GRE Support             0                    0
   Group Support           0                    0
   Sovereign Support       0                    0
  Additional Factors       0                    -1

  KDB Bank Uzbekistan JSC
                           To                   From
  Issuer Credit Rating     BB-/Stable/B         B+/Stable/B
  SACP                     bb-                  b+
   Anchor                  b+                   b+
   Business Position       Moderate (-1)        Moderate (-1)
   Capital and Earnings    Strong (+2)          Adequate (+1)
   Risk Position           Adequate (0)         Adequate (0)
   Funding and             Above Average and    Above Average and
   Liquidity               Adequate (0)         Adequate (0)
  Support                  0                    0
   GRE Support             0                    0
   Group Support           0                    0
   Sovereign Support       0                    0
  Additional Factors       0                    0

  RATINGS LIST

  Upgraded; Ratings Affirmed
                                        To                 From
  National Bank For Foreign
  Economic Activity of the
  Republic of Uzbekistan
   Issuer Credit Rating          BB-/Stable/B       B+/Stable/B

  Upgraded; Ratings Affirmed
                                        To                 From
  KDB Bank Uzbekistan JSC
   Issuer Credit Rating          BB-/Stable/B       B+/Stable/B



                            *********

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 2019.  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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