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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Friday, March 8, 2019, Vol. 20, No. 49

                           Headlines



G E O R G I A

JSC PARTNERSHIP: Fitch Hikes LT IDRs to 'BB', Outlook Stable


G R E E C E

HELLENIC TELECOMMUNICATIONS: Moody's Upgrades CFR to Ba2
WIND HELLAS: Fitch Hikes Long-Term IDR to B, Outlook Stable
[*] Moody's Hikes Ratings on 6 Greek Mortgage Covered Bonds
[*] Moody's Takes Positive Rating Actions on 6 Greek Banks


I T A L Y

ALITALIA SPA: Delta Air Lines Could Provide Incremental Support


N E T H E R L A N D S

UPC HOLDING: Fitch Places BB- Long-Term IDR on Watch Positive


R O M A N I A

ALPHA BANK: Moody's Hikes Deposit Ratings to Ba2, Outlook Stable


R U S S I A

CB ZHILSTROYBANK: Bank of Russia Cancels Banking License
CB ZLATKOMBANK: Bankruptcy Hearing Scheduled for March 11
EVROFINANCE MOSNARBANK: Moody's Withdraws B1 LT Deposit Ratings
ROSCOMSNABBANK PJSC: Provisional Administration Appointed


S P A I N

TELEFONICA SA: Fitch Rates Proposed Hybrid Securities BB+(EXP)
TELEFONICA SA: Moody's Rates Proposed Hybrid Securities Ba2


S W I T Z E R L A N D

SUNRISE COMMUNICATIONS: Fitch Places 'BB+' LT IDR on Watch Neg.


U N I T E D   K I N G D O M

BLACKPOOL: EFL Gives Board Opportunity to Review Financial Status
INTERSERVE PLC: Rebuffs Coltrane's Latest Financing Proposal
[*] Fitch Takes Action on 19 Tranches from 3 UK Mortgage Loans


X X X X X X X X

[*] BOOK REVIEW: Full Faith and Credit: The Great S & L Debacle

                           - - - - -


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G E O R G I A
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JSC PARTNERSHIP: Fitch Hikes LT IDRs to 'BB', Outlook Stable
------------------------------------------------------------
Fitch Ratings has upgraded Georgia-based JSC Partnership Fund's
(PF) Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) to 'BB' from 'BB-'. The Outlook is Stable. The agency has
also affirmed PF's Short-Term Local-Currency IDR at 'B'.

KEY RATING DRIVERS

PF is a state agent implementing the state's development agenda and
its prime mandate is to shape and develop private equity
investments. The private equity market is currently undeveloped in
Georgia, limiting the country's growth potential. PF targets
profitable projects in several key areas - agriculture,
manufacturing, real estate and energy. Another of PF's mandates is
to oversee key national infrastructure corporations. The state
endowed PF with 100% stakes in JSC Georgian Railway (GR), JSC
Georgian Oil and Gas Corporation (GOGC), JSC Georgian State
Electrosystem, and JSC Electricity System Commercial Operator.

Based on its Government Related Entities (GRE) Criteria, Fitch
classifies PF as an entity with strong linkage to the Georgian
sovereign (the government) and assesses the probability of the
Georgian government providing extraordinary support to the company
as high. Fitch applies a top-down approach and assessed the GRE
factors' score at 45, which irrespective of PF's standalone credit
profile, leads to an equalisation of PF's ratings with the
sovereign's.

Status, Ownership and Control Assessed as Very Strong

PF is 100%-owned by the state and operates under its own act -
Georgia's law on JSC Partnership Fund - highlighting its unique
nature and special status. The fund's supervisory board is chaired
by the Georgian prime minister and composed of leading cabinet
members and independent directors from the private sector. The
state mandates PF's key policies on debt, dividends and
investments, appoints PF's audit committee and external auditor,
monitors and controls the use of government funds and property
allocated to the entity.

Support Track Record and Expectations Assessed as Strong

Fitch's assessment is mostly based on the long-term
well-established national regulation that is generally supportive
of PF's financial viability. In Fitch's view, PF is deeply
integrated with the national budgetary and economic system as it
holds stakes in the largest national corporations in Georgia, and
plays the role of the government's agent in state asset management.
PF manages key state-owned companies in Georgia on behalf of the
government, receiving regular dividends from the largest
state-owned companies and investing the proceeds in economically
viable projects.

Fitch treats continuous in-kind contributions from the government
in the form of pipelines, land plots and other properties along
with an unchanged funding model via dividends from major state
companies as evidence of support. Fitch expects this to remain
unchanged.

Socio-Political Implications of Default Assessed as Strong

Fitch views PF as an entity of strategic importance to the Georgian
government and its financial default would endanger the continued
provision of funding to a wide list of national industries. This is
because PF is the only state financing vehicle to promote
investments, stimulating growth of the national economy, including
SMEs and other important industries.

The fund's aim is to develop private equity investments in a wide
range of economic projects generating positive economic returns, a
market which is currently undeveloped in Georgia. As long as the
Georgian government remains committed to its economic development
agenda, Fitch believes the fund's strategic role in facilitating
investments in the key sectors of the national economy,
particularly in the energy sector and infrastructure development,
will not change.

Financial Implications of Default Assessed as Very Strong

Fitch views PF as a proxy state financial vehicle. PF, together
with its strategic subsidiaries GOGC and GR, are the major and the
only GREs that borrow on external debt markets. A default of PF and
its subsidiaries would significantly affect Georgia, as it is
highly dependent on external financing for its structural current
account deficit.

Operating Performance

PF's profitability is dependent on dividends from its subsidiaries.
PF continues a profit recovery (before impairment) last year after
losses in 2016 driven mainly by dividends from GOGC, while GR's
dividends were zero on weak performance. According to preliminary
figures, PF's profit before impairment reached GEL37 million in
2018 on GEL77.1 million dividends from GOGC, and according to
management's projections it will continue to consolidate in 2019.

Debt and Liquidity

As of January 2019, the bulk of PF's debt stock comprised a USD87
million bank loan from Credit Suisse due in 2020, which should be
repaid in two equal installments in 2019 and 2020. To meet 2019's
debt servicing obligations the fund had accumulated GEL102.6
million (USD38.1 million) of cash as of January 1, 2019. The
remaining amount will be collected during the year as GEL60 million
of dividends inflow is expected in 1H2019.

A final debt repayment of USD43.5 million in 2020 will require
continuation of sufficient dividend inflow, which may be
challenging given the slow recovery of GR's profitability. However,
this is mitigated by the possibility of borrowing from local banks
and subsidiaries and additional revenue from dividends and
investment activity, including exits from several projects and
loans repayment to PF.

RATING SENSITIVITIES

An upgrade could result from an upgrade of the sovereign ratings,
provided that PF's links to the government are unchanged.

Weaker links with the state, leading to a diminished probability of
support by the sovereign could lead Fitch to widen the notching,
resulting in a downgrade. Negative rating action on Georgia's IDR
would also be reflected in PF's ratings.



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G R E E C E
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HELLENIC TELECOMMUNICATIONS: Moody's Upgrades CFR to Ba2
--------------------------------------------------------
Moody's Investors Service has upgraded to Ba2 from B1 the corporate
family rating (CFR) and to Ba2-PD from B1-PD the probability of
default rating (PDR) of Greece's leading telecommunications
provider Hellenic Telecommunications Organization S.A. (OTE).
Concurrently, Moody's upgraded to (P)Ba2 from (P)B1 the senior
unsecured medium-term note program (MTN) and to Ba2 from B1 the
senior unsecured global bonds issued by OTE PLC (OTE's fully and
unconditionally guaranteed subsidiary). The outlook on both
entities has been changed to stable from positive.

"Today's upgrade primarily reflects the continued improvement in
the Greek sovereign's credit profile and the outlook for economic
growth, a positive for OTE which generates most of its revenues in
the domestic market. It also factors in the company's strong
standalone credit profile and our expectation that its operating
performance will improve supported by strengthening economic
conditions in Greece despite ongoing challenges in the Romanian
market." says Carlos Winzer, a Moody's Senior Vice President and
lead analyst for OTE.

The rating action follows Moody's decision on March 1 to upgrade
the Government of Greece's bond ratings to B1 (stable outlook) from
B3.

RATINGS RATIONALE

Moody's rating action follows the improvement of Greece's credit
profile as reflected in Moody's decision to upgrade Greece's
sovereign rating to B1 from B3. Greece has achieved a solid
track-record of fiscal performance and the reforms implemented are
driving sustained economic growth. Those improvements should in
turn support consumer spending and benefit corporates such as OTE.
In addition, public debt sustainability has further improved and
there is low risk of reforms reversal.

OTE has demonstrated a high degree of resilience to the
macroeconomic challenges suffered by Greece over the past few
years, and has significantly strengthened its balance sheet. OTE's
leverage, as measured by its Debt/EBITDA ratio (as adjusted by
Moody's) has reduced to 2.0x as of year ended 2018 compared with
3.5x in 2012. Moody's expects OTE's credit profile to continue
improving over 2019-2020 assuming that the current cash balance
will be used for debt repayment. This is likely to translate into
an adjusted leverage of approximately 1.5x over 2019-2020.
Additional improvements below this level are unlikely given that
current shareholder remuneration policy aims to distribute 100% of
free cash flow through a mix of ordinary dividends and share
buybacks.

OTE's ratings continue to be constrained relative to the company's
underlying credit quality. This is due to the domestic nature of
the majority of its business, and its significant reliance on
domestic revenues. As such, it would be exposed to a loss of
revenue or profitability, or to increased funding pressures as a
consequence of the macroeconomic and financial disruption that can
accompany a weakening in sovereign creditworthiness.

Nevertheless, key supporting factors to the rating, two notches
above that of Greece, include: (1) the strong resilience of the
company during periods of macro-economic stress; (2) implicit
support from the key shareholder Deutsche Telekom AG (Baa1
negative); and, (3) significant and demonstrated track-record of
access to non-domestic financial institutions and capital markets.

OTE's CFR reflects (1) the fact that approximately 90% of its
EBITDA and 76% of its revenues are generated in Greece; (2) Moody's
expectation that OTE will maintain a comfortable cash balance to
meet upcoming debt maturities; (3) the fact that a non-Greek
financial subsidiary (OTE PLC, which is domiciled in the UK and is
subject to English law) issues its bonds which currently constitute
the main part of its debt; and (4) the implicit support it receives
from its major shareholder, Deutsche Telekom AG (Baa1 negative).

RATIONALE FOR STABLE OUTLOOK

OTE's stable outlook is in line with the rating outlook on Greece.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Any potential positive rating development would require an upgrade
of the Greek Sovereign rating, a more substantial dissociation of
the company's business and financial prospects from those of the
Greek economy, and/or more explicit support from Deutsche Telekom
AG.

A rating downgrade could occur if (1) Moody's were to downgrade
Greece's government bond rating; (2) conditions in the domestic
environment were to deteriorate as a result of a weakening of
Greece's credit profile; (3) a reduction in the implicit support
considerations from Deutsche Telekom AG; and/or (3) unexpected
pressures on OTE's liquidity were to emerge, particularly as a
result of a failure by the company to maintain comfortable cash
balances.

LIST OF AFFECTED RATINGS:

Issuer: Hellenic Telecommunications Organization S.A.

Upgrades:

  - LT Corporate Family Rating, Upgraded to Ba2 from B1

  - Probability of Default Rating, Upgraded to Ba2-PD from B1-PD

Outlook Actions:

  - Outlook, Changed To Stable From Positive

Issuer: OTE PLC

Upgrades:

  - BACKED Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Ba2 from (P)B1

  - BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2
from B1

Outlook Actions:

  - Outlook, Changed To Stable From Positive

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

Headquartered in Athens, Hellenic Telecommunications Organization
S.A. ( OTE) is the leading telecommunications operator in Greece,
servicing 2.7 million retail fixed access lines, 1.9 million retail
fixed-line broadband connections, 0.5 million TV subscribers and
7.9 million mobile customers as of December 2018. In addition to
the operations in its domestic market, OTE also operates in Romania
while the company announced the disposal of its Albanian subsidiary
in January 2019. The company's revenue and EBITDA for the 2018
amounted to EUR3.8 billion and EUR1.3 billion, respectively.

OTE's major shareholders are Deutsche Telekom AG and the Hellenic
Republic with an equity stake of 45% and 5.5% respectively. The
company is fully consolidated in Deutsche Telekom AG's accounts,
given the parent has management control.

WIND HELLAS: Fitch Hikes Long-Term IDR to B, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has upgraded Crystal Almond Intermediary Holdings
Limited's (Wind Hellas) Long-Term Issuer Default Rating (IDR) to
'B' from 'B-.' The Outlook on the IDR is Stable. Fitch has also
upgraded the rating for Crystal Almond S.a.r.l.'s senior secured
notes to 'B'/'RR4' from 'B-'/'RR4'.

The upgrade reflects Wind Hellas' improved operational and
financial performance and Fitch's expectation of free cash flow
(FCF) turning positive in 2019. The peak of investment cycle has
passed as the company is gradually catching up with its peers in
network coverage and quality. The rating is supported by a strong
execution track record, a growing Greek telecommunications market
and the company's sustainable positions in both the mobile and
fixed-line segments.

KEY RATING DRIVERS

Growing Telecoms Market: Greece's telecom market is one of the
laggards in Europe in smartphone penetration, data usage and fixed
fibre network deployment. For the past several years, Greece has
been catching up, and Fitch expects this positive trend to continue
against an improving macroeconomic backdrop. Fitch  expects Greek
GDP growth of 2.3% in 2019 and 2.2% in 2020.

Improved Competitive Position: Wind Hellas is well-positioned to
take advantage of increasing demand for data services. The company
is catching up with its competitors in 4G network coverage and
continues to improve its overall service quality. An ability to
offer high-quality triple-play bundles supports customer retention
while investing in NGA networks deployment gives Wind Hellas
greater exposure to fixed broadband market growth. Further
consolidation in the Greek fixed telecoms market could create a
more rational competitive environment with three fixed-mobile
convergent operators, including Wind Hellas.

Service Improvement: Wind Hellas has upgraded its network
infrastructure, improved the customer experience, while controlling
costs. This has led to revenue and EBITDA growth, and market share
gains, particularly since early 2017. While the mobile market
remains competitive, Wind Hellas has seen greater penetration of
higher-value bundles among its prepaid customer base. A rising
proportion of bundles with fixed and pay TV will likely improve
retention among subscribers.

Improving FCF, Low Leverage: Fitch estimates Wind Hellas' funds
flow from operations (FFO)-adjusted net leverage at 3.2x in 2018
compared with 2.8x in 2017. Leverage should gradually decline over
the next three years, driven by EBITDA growth and improving FCF
generation as capex falls from a peak in 2017, following a period
of high network and spectrum investments. Fitch expects FCF to turn
positive in 2019. This is a reversal from past years of negative
FCF, which supports Fitch's upgrade.

Capex to Moderate: Fitch expects capex by Wind Hellas to moderate
in 2019-2021 following a period of heavy investments in its mobile
network, fibre rollout and its launch of TV offerings. Wind Hellas'
network-sharing agreement with Vodafone has delivered material cost
and capex efficiencies as well as better service quality. Fitch
expects the company to benefit further from the expansion of this
agreement to 4G from 2G/3G.

In the fixed-line segment capex visibility has improved following
the Greek government's decision to divide the country into three
regions to OTE, Vodafone and Wind Hellas for fibre rollout. This
approach protects the companies from network overlap and allows
them to benefit from either selling faster internet to customers or
wholesaling their lines to their peers. The main risk to these
investments is low take-up rates, which remain sensitive to the
macro environment.

DERIVATION SUMMARY

Wind Hellas is the third-largest mobile and fixed-line operator in
Greece behind OTE (Cosmote) and Vodafone Greece. Its ratings
reflect the company's improving performance in both the fixed and
mobile segments due to continued development of and increasing
demand for telecom services. Compared with telco peers in the 'B'
category such as Wind Tre SpA (B+ on a standalone basis), eircom
Holdings Limited (B+/Stable), and LLC T2 RTK Holding (B+/Stable),
Wind Hellas is smaller in scale and has below-average margins. At
the same time Wind Hellas benefits from lower leverage relative to
peers. FCF generation is a main constraint on Wind Hellas' rating;
however, it is expected to improve. Execution risk on cost control
and expected revenue growth is more pronounced than peers' and to
some extent depends on continued Greek macroeconomic growth.

KEY ASSUMPTIONS

Key assumptions within its rating case for the issuer include:

  - Low single-digit service revenue growth in 2019-2021 driven by
mobile customers movement towards post-paid, improving average
revenue per user, migration of fixed-line subscribers to NGA, and
increasing take-up of pay TV

  - EBITDA margin at 25% in 2019 and gradually improving in
2020-2021

  - Capex plan in line with the updated business plan including
build-out of the next generation network and pay-TV investments

  - Spectrum payments in line with management expectations

  - Dividends at EUR1 million per year

  - No M&A

KEY RECOVERY RATING ASSUMPTIONS

  - The recovery analysis assumes that Wind Hellas would be
considered a going concern in bankruptcy and that it would be
reorganised rather than liquidated.

  - A 10% administrative claim.

  - The going-concern EBITDA estimate of EUR88 million reflects
Fitch's view of a sustainable, post-reorganisation EBITDA level
upon which Fitch bases the valuation of the company.

  - The going-concern EBITDA is 25% below LTM 3Q18 EBITDA, assuming
likely operating challenges at the time of distress.

  - An enterprise value multiple of 4x is used to calculate a
post-reorganisation valuation and reflects a conservative mid-cycle
multiple.

  - Fitch reflects the total amount of debt for claims at EUR305
million, which includes the senior secured notes at intermediary
holding company Crystal Almond S.a.r.l as well as the full
commitment amount of the EUR30 million revolving credit facility
(RCF) at Wind Hellas Telecommunications S.A.

  - Fitch's calculations factor in EUR30 million of prior-ranking
debt (RCF) and EUR275 million of senior secured notes. The recovery
prospects for all senior secured debt is 'RR4'/50% due to a cap on
recovery prospects for country considerations. The 'RR4' Recovery
Rating implies a zero-notch uplift from the IDR for a 'B'
instrument rating. The RCF at the opco level has priority over the
senior secured notes at the intermediary holdco due to structural
subordination.

RATING SENSITIVITIES

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

  - Continued growth in service revenue supported by sustainable
market positions

  - A sustained FCF margin in the low- to mid-single digits

  - FFO adjusted net leverage sustained below 3.0x

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

  - Adverse changes in competitive and/or macroeconomic environment
jeopardising revenue growth

  - Fixed charge coverage trending below 2.0x (2018: 2.3x)

  - Persistently negative FCF

  - FFO adjusted net leverage sustained above 4.0x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Fitch expects that a combination of improving
EBITDA and declining capex will support neutral-to- positive FCF
generation in 2019-2021. Liquidity is supported by a EUR30 million
RCF, undrawn at end-3Q18. The senior secured notes are due in
2021.

SUMMARY OF FINANCIAL ADJUSTMENTS

A portion of cash held in bank accounts is treated as restricted
due to capital controls in Greece.

[*] Moody's Hikes Ratings on 6 Greek Mortgage Covered Bonds
-----------------------------------------------------------
Moody's Investors Service has upgraded the following ratings of the
mortgage covered bonds across six Greek covered bond programmes:

  - Upgraded to Ba1 from Ba2, the mortgage covered bonds issued by
Alpha Bank A.E. (counterparty risk (CR) assessment B2(cr)), under
its Direct Issuance Global Covered Bond Programme I

  - Upgraded to Ba1 from Ba2, Alpha Bank A.E., under its Direct
Issuance Global Covered Bond Programme II

  - Upgraded to Baa2 from Ba2, the mortgage covered bonds issued by
Eurobank Ergasias S.A. (CR assessment B2 (cr)), under its Mortgage
Covered Bonds 1 programme

  - Upgraded to Ba1 from Ba2, the mortgage covered bonds issued by
Eurobank Ergasias S.A., under its Mortgage Covered Bonds 2
programme

  - Upgraded to Baa1 from Ba2, the ratings on the mortgage covered
bonds issued by National Bank of Greece S.A. (CR assessment B2
(cr)), under its Global Mortgage Covered Bonds programme

  - Upgraded to Baa3 from Ba2, the mortgage covered bonds issued by
National Bank of Greece S.A., under its Mortgage Covered Bonds 2
programme

RATINGS RATIONALE

The upgrades on the covered bond ratings follow (1) the rating
actions on the relevant issuer ratings and CR assessments; and (2)
following the Greek sovereign rating upgrade to B1 from B3, the
increase of Greece's long-term country ceilings for foreign
currency and local currency bonds to Baa1.

The ratings of Alpha Bank A.E. Direct Issuance Global Covered Bond
Programme I, Alpha Bank A.E. Direct Issuance Global Covered Bond
Programme II, Eurobank Ergasias S.A. - Mortgage Covered Bonds 2 are
now constrained by the timely payment indicator (TPI) of Very
Improbable.

For Eurobank Ergasias S.A. - Mortgage Covered Bonds 1, the highest
rating achievable under Moody's Timely Payment Indicator (TPI)
framework is now Baa1. However, the level of over-collateralisation
(OC) in "committed" form in this programme is only consistent with
the covered bond ratings of Baa2.

The ratings of National Bank of Greece S.A. - Global Mortgage
Covered Bonds are now constrained by the long-term country ceilings
for local currency bonds of Baa1 and the timely payment indicator
(TPI) of Probable-High.

The ratings of National Bank of Greece S. A. - Mortgage Covered
Bonds 2, are now constrained by the timely payment indicator (TPI)
of Probable.

KEY RATING ASSUMPTIONS/FACTORS

Moody's determines covered bond ratings using a two-step process:
an expected loss analysis and a timely payment indicator (TPI)
framework analysis.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL) to
determine a rating based on the expected loss on the bond. COBOL
determines expected loss as (1) a function of the probability that
the issuer will cease making payments under the covered bonds (a CB
anchor event), and (2) the stressed losses on the cover pool assets
following a CB anchor event.

The cover pool losses are an estimate of the losses Moody's
currently models following a CB anchor event. Moody's splits cover
pool losses between market risk and collateral risk. Market risk
measures losses stemming from refinancing risk and risks related to
interest-rate and currency mismatches (these losses may also
include certain legal risks). Collateral risk measures losses
resulting directly from the cover pool assets' credit quality.
Moody's derives collateral risk from the collateral score.

The CB anchor for the programmes is the CR assessment plus one
notch. The CR assessment reflects an issuer's ability to avoid
defaulting on certain senior bank operating obligations and
contractual commitments, including covered bonds. Moody's may use a
CB anchor of the CR assessment plus one notch in the European Union
or otherwise where an operational resolution regime is particularly
likely to ensure continuity of covered bond payments.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator" (TPI),
which measures the likelihood of timely payments to covered
bondholders following a CB anchor event. The TPI framework limits
the covered bond rating to a certain number of notches above the CB
anchor.

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

The CB anchor is the main determinant of a covered bond programme's
rating robustness. A change in the level of the CB anchor could
lead to an upgrade or downgrade of the covered bonds. The TPI
Leeway measures the number of notches by which Moody's might lower
the CB anchor before the rating agency downgrades the covered bonds
because of TPI framework constraints.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances, such as (1) a sovereign downgrade
negatively affecting both the CB Anchor and the TPI; (2) a
multiple-notch downgrade of the CB Anchor; or (3) a material
reduction of the value of the cover pool.

RATING METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating Covered Bonds" published in February 2019.

[*] Moody's Takes Positive Rating Actions on 6 Greek Banks
----------------------------------------------------------
Moody's Investors Service has upgraded the long-term deposit
ratings of National Bank of Greece S.A., Alpha Bank AE and Eurobank
Ergasias S.A. to Caa1 from Caa2, affirmed Piraeus Bank S.A.'s and
Pancretan Cooperative Bank Ltd's long-term deposit rating at Caa2,
and also affirmed Attica Bank S.A.'s long-term deposit rating at
Caa3.

The rating agency has also upgraded the long-term counterparty risk
assessments (CRA) of Piraeus Bank S.A., National Bank of Greece
S.A., Alpha Bank AE and Eurobank Ergasias S.A. to B2(cr) from
B3(cr), upgraded the CRA of Attica Bank S.A. to B3(cr) from
Caa1(cr), and affirmed the CRA of Pancretan Cooperative Bank Ltd at
B3(cr). The long-term counterparty risk ratings (CRR) of National
Bank of Greece S.A. and Eurobank Ergasias S.A. were upgraded to B2
from Caa1, while the CRRs of Piraeus Bank S.A. and Alpha Bank AE
were upgraded to B3 from Caa1. Attica Bank S.A.'s long-term CRR was
upgraded to Caa1 from Caa2, and Pancretan Cooperative Bank Ltd's
CRR was affirmed at B3. All the banks' short-term ratings were
affirmed at Not-Prime (NP), (P)NP and NP(cr).

The government-guaranteed senior MTN program ratings of National
Bank of Greece S.A., Alpha Bank AE and Eurobank Ergasias S.A. were
also upgraded to (P)B1 from (P)B3, in line with Moody's recent
rating upgrade of the Government of Greece. Concurrently, Moody's
has upgraded the baseline credit assessment (BCA) of National Bank
of Greece S.A., Alpha Bank AE and Eurobank Ergasias S.A. to caa1
from caa2, affirmed Piraeus Bank S.A.'s at caa2 and those of Attica
Bank S.A. and Pancretan Cooperative Bank Ltd at caa3.

The outlook on the deposit ratings of National Bank of Greece S.A.,
Alpha Bank AE and Eurobank Ergasias S.A. was changed to stable from
positive, while the outlook on the deposit ratings of Piraeus Bank
S.A., Attica Bank S.A. and Pancretan Cooperative Bank Ltd was
changed to positive from stable.

RATINGS RATIONALE

Moody's rating action on Greek banks was primarily driven by the
improving economic conditions and more benign operating
environment, as indicated by the rating agency's upgrade of the
Government of Greece to B1 (stable) from B3 (positive) on March 1,
2019. The revised bank ratings and outlooks also reflect Moody's
expectation for further improvements in banks' underlying financial
fundamentals through lower level of problem loans, increasing
customer deposits and gradual enhancement of their weak
profitability. The rating agency said that the improvement in the
operating environment fundamentally translates banks' financials
being more compatible with a higher rating level.

Moody's positive rating actions on Greek banks were underpinned by
improvements in the country's economic and institutional strength,
which lead to a revision of the Macro Profile Moody's assigns to
Greece to 'Weak' from 'Weak-'. This was primarily triggered by
Greece's continued rebound in economic growth, with provisional GDP
data for Q3 2018 indicating 2.2% year-on-year from 1.7% in Q2 2018.
The rating agency expects GDP growth of around 2.2% in 2019
marginally higher than 2.1% in 2018, as consumer and business
confidence as well as the labour market conditions (unemployment
rate at 18.5% in November 2018, the lowest since July 2011) improve
along with continued reform momentum.

Greece's macro profile also reflects the difficult credit and
funding conditions, with structural challenges faced by all banks.
The higher Macro Profile, which is used in Moody's banking
scorecards that derive the banks' BCAs, combined with the rating
agency's expectation of gradual improvements in banks' financial
fundamentals as the economy recovers, will support their standalone
credit profiles and ratings going forward.

The deposit ratings and CRA/CRR upgrades were also driven by
Moody's decision to start recognising in its analysis as tangible
common equity (TCE), part of banks' sizeable deferred tax credits
(DTCs of around EUR16 billion in total) in their capital structure
following Greece's sovereign rating upgrade to B1 (stable) from B3
(positive). The stronger creditworthiness of the sovereign signals
an enhanced capacity to honour these DTCs, and that leads the
rating agency to partly incorporate them in its assessment for each
bank's credit profile.

The rating action also reflects the rating agency's expectation
that the improving economic conditions combined with the
nonperforming exposures (NPE) reduction plans currently being
discussed and proposed by the Hellenic Financial Stability Fund
(HFSF) and the Bank of Greece, will help banks to reduce
significantly problem loans. Concurrently, the rating agency said
that its revised ratings take into account the improvements in
banks' funding and liquidity in the last few quarters, and the
expectation of the full repayment of the emergency liquidity
assistance (ELA) for the system in 2019 and continuation of the
deposit growth that gathered pace during 2018 (EUR7.6 billion
increase in private-sector deposits).

Moody's said that its Greek bank ratings balance the prospects for
further improvements and stabilisation in their credit profiles in
2019-20 in a more benign operating environment, against the still
significant downside risks to their solvency stemming from the very
high level of NPEs (46.7% of gross loans for the system as of
September 2018) and the challenge to grow their loan books and
revenues.

RATINGS RATIONALE FOR INDIVIDUAL BANKS

NATIONAL BANK OF GREECE S.A.

National Bank of Greece S.A.'s (NBG) deposit and CRA/CRR upgrades
are mainly driven by the upgrade in its BCA to caa1 from caa2,
triggered by the improving economic conditions in the country. The
ratings upgrade takes into consideration the improved quality of
its capital base, with a reported common equity Tier 1 (CET1) ratio
of 16.4% in September 2018 incorporating DTCs of around EUR4.6
billion. Based on the rating agency's methodology, its recent
sovereign rating upgrade to B1 has enhanced the government's
capacity to honour such DTCs, which improved the bank's estimated
tangible common equity (TCE) significantly (TCE over risk-weighted
assets ratio increased to 8.3% from 0.1% before) supporting its
solvency and overall credit profile. The higher sovereign rating in
effect suggests that Greece's creditworthiness is now at a level
where the government could honour such DTCs in case of need, which
underpins Moody's capital treatment to partly recognise these
assets in its TCE calculation.

The bank's BCA of caa1 also reflects one of the lowest
nonperforming loans (NPL) and NPE ratios among its local peers at
30% and 42%, respectively, as of September 2018, while the NPL and
NPE provisioning coverage was 82% and 60%, the highest within its
local peer group. The rating agency believes that a combination of
NPE recoveries/reschedulings, electronic-auctions, liquidations,
sale and write-offs in a more favourable operating environment,
will help the bank meet its NPE reduction targets. In addition, the
bank will be in a position to further enhance its relatively weak
core pre-provision income (PPI), which reduced by 44% year-on-year
in the first nine-months of 2018, combined with further reduction
in its operating expenses.

The BCA upgrade also takes into account the stronger than peers
funding and liquidity position that NBG has relative to its local
peers. The bank has no emergency liquidity assistance (ELA)
outstanding since December 2017, while its customer deposits grew
by 9.1% year-on-year as of September 2018. The bank has the lowest
loans-to-deposits ratio among its local peers at 72% in September
2018 underpinned by its strong deposit savings franchise in Greece,
and is the only bank that meets the liquidity coverage ratio (LCR)
at 124%.

The stable deposit rating outlook balances the bank's recent
improvements in its underlying financial fundamentals, and the
challenges for further significant enhancements particularly in
asset quality and profitability. Moody's notes that the still high
stock of problem loans pose material downside risks to the bank's
solvency, which for now constrain its BCA evolution beyond caa1.

ALPHA BANK AE

Alpha Bank AE's deposit rating upgrade to Caa1 from Caa2 is driven
by its BCA upgrade to caa1 from caa2, which reflects its relatively
stronger tangible capital position, and the resulting higher loss
absorption cushion compared to its local peers. The bank had the
highest regulatory common equity Tier 1 (CET1) ratio of 18.3% in
September 2018, while its tangible common equity (TCE) ratio as
adjusted by the rating agency to incorporate the more valuable DTCs
following the improved sovereign credit profile, increased to
around 11% from 6.4% before. Moody's notes that Alpha Bank has the
lowest level of DTCs in its capital base among the large banks at
around EUR3.3 billion in September 2018, which comprised around 37%
of its nominal CET1 capital.

Concurrently, the bank's BCA of caa1 also captures the significant
challenge in tackling its problem loans with its NPL and NPE ratios
at a high 34% and 50% respectively as of September 2018, and NPL
and NPE provisioning coverage of around 69% and 47%, respectively.
Moody's believes that the bank's retail transformation plan, which
was launched in July 2018 and gathers pace prescribing longer-term
restructurings and solutions to its problematic exposures, will
help the bank reduce its NPEs and achieve its target of EUR8
billion (implying an NPE ratio of around 20%) by the end of 2021
from EUR22.5 billion in Greece as of September 2018.

The bank's improving funding profile is also a driving factor of
the rating action, with ELA balance at only EUR0.8 billion in
mid-November 2018, down from EUR8.4 billion in September 2017,
comprising 1.3% of its total assets. Moody's expects this type of
funding to be fully repaid in Q1 2019. The rating agency notes the
bank's customer deposits that grew by 13.8% year-on-year as of
September 2018. The bank's BCA also considers its positive but
still weak profitability, with a net profit of around EUR53 million
for the first nine-months of 2018, despite the 14.4% year-on-year
decline in its core PPI.

The stable outlook for the bank's deposit ratings, is mainly driven
by the significant challenge that the bank faces to achieve
sustainable reduction of its high level of NPEs, which still pose
significant downside risks to the bank's credit profile.

EUROBANK ERGASIAS S.A.

Eurobank Ergasias S.A.'s (Eurobank) deposit rating upgrade to Caa1
from Caa2 is in line with its BCA upgrade to caa1 from caa2 taking
into account its stronger than local peers financial performance
and profitability in the first nine-months of 2018, but also the
significant enhancement in its TCE to risk-weighted assets ratio to
6.1% (incorporating part of its DTCs) from marginally negative
before, following the sovereign rating upgrade to B1 that
effectively enhanced the value of these DTCs. The bank's reported
CET1 ratio was 14.6% in September 2018, while its core PPI was 1.1%
higher year-on-year during the first nine-months 2018, recording a
net profit of EUR80.8 million from EUR61 million the year before.

Moody's said that Eurobank's ratings upgrade also considers its
recently announced transformation plan, expected to be completed in
2019, which will help it further improve its tangible capital base
and profitability, while also de-risk its balance sheet by
significantly reducing its NPE stock through securitisation and
deconsolidation in an improving operating environment. The bank's
NPL and NPE ratio were at around 31% and 39%, respectively, as of
September 2018 and its NPL and NPE provisioning coverage was around
68% and 54%, respectively.

The bank's ELA as of November 2018 was EUR1.2 billion, comprising
around 2.1% of its total assets, down from EUR7.9 billion at the
beginning of 2018, with customer deposits growing by 13.3%
year-on-year as of September 2018. Moody's believes that the bank
will be able to repay its ELA in 2019, and that its funding
capacity will improve over time, especially following the
completion of its transformation plan.

The stable outlook balances the potential for further improvements
in the bank's earnings and funding profile, but also the still high
downside risks from its high level of NPEs and modest capital
metrics relative to its local peers, which in turn constrain
Eurobank's BCA for now.

PIRAEUS BANK S.A.

Piraeus Bank S.A. (Piraeus Bank)'s CRA and CRR upgrades to B2(cr)
and B3 respectively are underpinned by the bank's higher loss
absorbing capital incorporated in the rating agency's loss given
failure (LGF) analysis of the bank's liability structure. The
recent sovereign rating upgrade to B1 (stable) from B3 (positive),
means that the bank's TCE now incorporates part of the bank's DTCs
and has increased to around 4.9% of its tangible banking assets
(from a very low 0.7% before) that fundamentally drives its CRA/CRR
upgrade. The bank's CET1 ratio of 13.7% in September 2018 was the
lowest among the large Greek banks, including the EUR2 billion of
contingent convertible (CoCos) instruments that the bank in its
sole discretion will repay at any time to the HFSF subject to
approval by the ECB.

The bank's BCA and long-term deposit ratings affirmation at caa2
and Caa2 respectively, takes into account the still weaker than
local peers asset quality position of the bank, with NPL and NPE
ratios of around 33% and 54%, respectively, as of September 2018.
In addition, the bank's NPL and NPE provisioning coverage was at
79% and 49%, respectively. However, the rating agency expects the
bank's asset quality to gradually improve in view of the improved
economic conditions and its focus and active management of its
NPEs, and the additional tools provided to the banks for managing
their NPEs through recent legislative measures, driving the
positive outlook.

The bank's positive rating outlook also captures improvements in
its funding profile with no emergency liquidity assistance (ELA)
outstanding since July 2018, and an increase in customer deposits
in Greece by 9% year-on-year in September 2018. Accordingly, the
bank's net loans to deposits ratio improved to 91% in September
2018 from 105% in December 2017. Moody's positive rating outlook
also considers Piraeus Bank's positive net result for the first
nine-months in 2019, reporting a gain of EUR40 million (excluding
discontinued operations) compared to a net loss of EUR15 million
the year before. However, the bank's recurring PPI was down by 13%
year-on-year, mainly affected from pressure in its net interest
income.

ATTICA BANK S.A.

The upgrade of Attica Bank S.A.'s CRA and CRR to B3(cr) and Caa1
respectively is mainly driven by the improved capacity of the
sovereign to honour the bank's DTCs, as signaled by the government
rating upgrade to B1 from B3. The incorporation of DTCs in the
bank's TCE calculation that is incorporated in the rating agency's
LGF analysis, provides additional loss absorption cushion to the
bank's most senior creditors.

The bank's BCA and long-term deposit rating were affirmed at caa3
and Caa3 respectively. The rating affirmation takes into
consideration its lower than peers CET1 ratio of 12.2% in September
2018, including EUR100.2 million of state preference shares. The
BCA of caa3, the lowest among Greek banks, also reflects the bank's
weak earnings profile with PPI reducing by around 86% year-on-year
during the first nine months in 2018, resulting in a net loss of
EUR36.7 million. The bank, which is one of the smallest among Greek
banks with a market share of only around 1.5%, reported an NPE
ratio of 52.4% in September 2018, with a provisioning coverage of
42.5%.

The positive outlook on the bank's deposit rating of Caa3, which is
in line with its BCA of caa3, reflects the rating agency's
expectation that the on-going restructuring at the bank by the new
senior management will start yielding tangible results in its
performance over the next 12-18 months. The positive rating outlook
also captures the improvements in the bank's funding and liquidity,
with customer deposits increasing by 15% year-on-year as of
September 2018 and ELA reducing to around EUR95 million at the end
of December 2018 (from EUR929 million in December 2017), following
an interbank repo transaction using a government-guaranteed bond
issued for EUR350 million in December 2018.

In addition, the positive rating outlook also takes into
consideration the repayment of the bank's state preference shares
in December 2018, and its improved pro-forma CET1 ratio of 13.2%.
Concurrently the rating agency acknowledges the bank's two NPE
securitisations for a total amount of EUR2 billion, which will
effectively reduce its pro-forma NPE ratio to around 35% with a
provisioning coverage of 38%.

PANCRETAN COOPERATIVE BANK LTD

The affirmation of Pancretan Cooperative Bank Ltd's BCA at caa3,
including its long-term deposit rating of Caa2, takes into
consideration the bank's weaker than local peers capitalisation,
with a CET1 ratio of 9.7%, and an NPE ratio of a high 61.5% and
provisioning coverage of 41.7% in September 2018. The BCA of caa3
also reflects the bank's relatively weaker loans and earnings
geographical diversification, given its predominant focus area on
small businesses and SMEs on the island of Crete, and also the need
for the bank to modernise and upgrade its IT systems and risk
management tools. The ratings affirmation also captures the
challenge faced by the bank to enhance its revenue base and the
likely need to book additional loan loss provisions going forward,
given its lower-than-peers NPE provisioning coverage.

The positive rating outlook takes into account the bank's capital
increase in January 2019, raising around EUR3.8 million of CET1
capital and EUR9.4 million of Tier 2 debt, which will marginally
enhance the bank's capital base and loss absorption buffer. In
effect, Moody's expects that the bank's CET1 ratio will increase by
approximately 30 basis points. The positive rating outlook also
considers the bank's ability to increase its customer deposits by
around 10.3% during the first nine-months of 2018, while the rating
agency understands that the bank's deposits continued to increase
even during its recent capital raising exercise. These positive
developments are likely to gradually exert positive pressure on the
bank's BCA and deposit ratings over the next 12-18 months.

WHAT COULD MOVE THE RATINGS UP/DOWN

Over time, upward deposit and senior debt rating pressure could
arise following further improvements of the country's
macro-economic environment, combined with better asset quality,
profitability and funding. The return of more deposits back to the
banking system would also increase the pool of unsecured
obligations available to banks, which could trigger a deposit and
senior debt rating upgrade driven by the rating agency's LGF
approach.

Greek banks' deposit and senior debt ratings could be downgraded in
the event of political turmoil in the country for an extended
period of time that substantially affects domestic consumption and
economic activity, which have gradually been recovering from a very
low base.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS

Issuer: Alpha Bank AE

Upgrades:

  - Adjusted Baseline Credit Assessment, Upgraded to caa1 from
caa2

  - Baseline Credit Assessment, Upgraded to caa1 from caa2

  - Long-term Counterparty Risk Assessment, Upgraded to B2(cr) from
B3(cr)

  - Long-term Counterparty Risk Rating, Upgraded to B3 from Caa1

  - Senior Unsecured Medium-Term Note Program, Upgraded to (P)Caa1
from (P)Caa2

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)B1 from (P)B3

  - Subordinate Medium-Term Note Program, Upgraded to (P)Caa2 from
(P)Caa3

  - Long-term Bank Deposits, Upgraded to Caa1 from Caa2, Outlook
Changed To Stable From Positive

Affirmations:

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Short-term Bank Deposits, Affirmed NP

  - Other Short Term, Affirmed (P)NP

Outlook Action:

  - Outlook Changed To Stable From Positive

Issuer: Alpha Credit Group plc

Upgrades:

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Caa1 from (P)Caa2

  - Backed Subordinate Medium-Term Note Program, Upgraded to
(P)Caa2 from (P)Caa3

  - Backed Senior Unsecured Regular Bond/Debenture, Upgraded to
Caa1 from Caa2, Outlook Changed To Stable From Positive

  - Backed Subordinate Regular Bond/Debenture, Upgraded to Caa2
from Caa3

Affirmations:

  - Backed Commercial Paper, Affirmed NP

  - Backed Other Short Term, Affirmed (P)NP

Outlook Action:

No Outlook Assigned

Issuer: Alpha Group Jersey Limited

Upgrades:

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Caa1 from (P)Caa2

  - Backed Subordinate Medium-Term Note Program, Upgraded to
(P)Caa2 from (P)Caa3

  - Backed Pref. Stock Non-cumulative Preferred Stock, Upgraded to
Ca (hyb) from C (hyb)

Outlook Action:

  - No Outlook Assigned

Issuer: Emporiki Group Finance Plc

Upgrades:

  - Backed Senior Unsecured Regular Bond/Debenture, Upgraded to
Caa1 from Caa2, Outlook Changed To Stable From Positive

Outlook Action:

No Outlook Assigned

Issuer: Attica Bank S.A.

Upgrades:

  - Long-term Counterparty Risk Assessment, Upgraded to B3(cr) from
Caa1(cr)

  - Long-term Counterparty Risk Rating, Upgraded to Caa1 from Caa2

Affirmations:

  - Adjusted Baseline Credit Assessment, Affirmed caa3

  - Baseline Credit Assessment, Affirmed caa3

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Long-term Bank Deposits, Affirmed Caa3, Outlook Changed To
Positive From Stable

  - Short-term Bank Deposits, Affirmed NP

Outlook Action:

  - Outlook Changed To Positive From Stable

Issuer: Eurobank Ergasias S.A.

Upgrades:

  - Adjusted Baseline Credit Assessment, Upgraded to caa1 from
caa2

  - Baseline Credit Assessment, Upgraded to caa1 from caa2

  - Long-term Counterparty Risk Assessment, Upgraded to B2(cr) from
B3(cr)

  - Long-term Counterparty Risk Rating, Upgraded to B2 from Caa1

  - Senior Unsecured Medium-Term Note Program, Upgraded to (P)Caa1
from (P)Caa2

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)B1 from (P)B3

  - Subordinate Medium-Term Note Program, Upgraded to (P)Caa2 from
(P)Caa3

  - Long-term Bank Deposits, Upgraded to Caa1 from Caa2, Outlook
Changed To Stable From Positive

Affirmations:

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Backed Other Short Term, Affirmed (P)NP
  
  - Other Short Term, Affirmed (P)NP

  - Short-term Deposit Rating, Affirmed NP

Outlook Action:

  - Outlook Changed To Stable From Positive

Issuer: ERB Hellas (Cayman Islands) Limited

Upgrades:

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Caa1 from (P)Caa2

  - Backed Subordinate Medium-Term Note Program, Upgraded to
(P)Caa2 from (P)Caa3

Affirmations:

  - Backed Other Short Term, Affirmed (P)NP

Outlook Action:

  - No Outlook Assigned

Issuer: ERB Hellas Funding Limited

Upgrades:

  - Backed Pref. Stock Non-cumulative Preferred Stock, Upgraded to
Ca (hyb) from C (hyb)

Outlook Action:

  - No Outlook Assigned

Issuer: ERB Hellas PLC

Upgrades:

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Caa1 from (P)Caa2

  - Backed Subordinate Medium-Term Note Program, Upgraded to
(P)Caa2 from (P)Caa3

  - Backed Senior Unsecured Regular Bond/Debenture, Upgraded to
Caa1 from Caa2, Outlook Changed to Stable From Positive

  - Backed Subordinate Regular Bond/Debenture, Upgraded to Caa2
from Caa3

Affirmations:

  - Backed Commercial Paper, Affirmed NP

  - Backed Other Short Term, Affirmed (P)NP

Outlook Action:

  - No Outlook Assigned

Issuer: National Bank of Greece S.A.

Upgrades:

  - Adjusted Baseline Credit Assessment, Upgraded to caa1 from
caa2

  - Baseline Credit Assessment, Upgraded to caa1 from caa2

  - Long-term Counterparty Risk Assessment, Upgraded to B2(cr) from
B3(cr)

  - Long-term Counterparty Risk Rating, Upgraded to B2 from Caa1

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)B1 from (P)B3

  - Long-term Bank Deposits, Upgraded to Caa1 from Caa2, Outlook
Changed To Stable From Positive

Affirmations:

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Backed Other Short Term, Affirmed (P)NP

  - Short-term Deposit Rating, Affirmed NP

Outlook Action:

  - Outlook Changed To Stable From Positive

Issuer: NBG Finance plc

Upgrades:

  - Backed Senior Unsecured Medium-Term Note Program, Upgraded to
(P)Caa1 from (P)Caa2

  - Backed Subordinate Medium-Term Note Program, Upgraded to
(P)Caa2 from (P)Caa3

Outlook Action:

  - No Outlook Assigned

Issuer: Pancretan Cooperative Bank Ltd

Affirmations:

  - Adjusted Baseline Credit Assessment, Affirmed caa3

  - Baseline Credit Assessment, Affirmed caa3

  - Long-term Counterparty Risk Assessment, Affirmed B3(cr)

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

  - Long-term Counterparty Risk Rating, Affirmed B3

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Long-term Bank Deposits, Affirmed Caa2, Outlook Changed To
Positive From Stable

  - Short-term Bank Deposits, Affirmed NP

Outlook Action:

  - Outlook Changed To Positive From Stable

Issuer: Piraeus Bank S.A.

Upgrades:

  - Long-term Counterparty Risk Assessment, Upgraded to B2(cr) from
B3(cr)

  - Long-term Counterparty Risk Rating, Upgraded to B3 from Caa1

Affirmations:

  - Adjusted Baseline Credit Assessment, Affirmed caa2

  - Baseline Credit Assessment, Affirmed caa2

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Senior Unsecured Medium-Term Note Program, Affirmed (P)Caa2

  - Subordinate Medium-Term Note Program, Affirmed (P)Caa3

  - Long-term Bank Deposits, Affirmed Caa2, Outlook Changed To
Positive From Stable

  - Short-term Bank Deposits, Affirmed NP

Outlook Action:

  - Outlook Changed To Positive From Stable

Issuer: Piraeus Group Finance Plc

Affirmations:

  - Backed Senior Unsecured Medium-Term Note Program, Affirmed
(P)Caa2

  - Backed Subordinate Medium-Term Note Program, Affirmed (P)Caa3

  - Backed Commercial Paper, Affirmed NP

  - Backed Other Short Term, Affirmed (P)NP

Outlook Action:

No Outlook Assigned



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

ALITALIA SPA: Delta Air Lines Could Provide Incremental Support
---------------------------------------------------------------
FlightGlobal reports that Delta Air Lines could provide bankrupt
Alitalia some "incremental support", says chief executive Ed
Bastian without providing specifics.

According to FlightGlobal, Mr. Bastian discounts reports that the
Atlanta-based carrier is preparing to make a significant investment
in the struggling Italian carrier, saying the "numbers being thrown
around out there are pretty large and not something we'd consider"
but adds that they would consider some form of support.

"To the extent that we can help them stay in SkyTeam, and the
transatlantic joint venture, and provide them some incremental
support along the way, we can do that," FlightGlobal quotes Mr.
Bastian as saying at the JP Morgan aviation, transportation &
industrials conference on March 5.

Mr. Bastian does not comment on whether that support could come in
the form of equity or debt, FlightGlobal notes.




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

UPC HOLDING: Fitch Places BB- Long-Term IDR on Watch Positive
-------------------------------------------------------------
Fitch Ratings has placed UPC Holding BV's (UPC) Long-Term Issuer
Default Rating (IDR) of 'BB-' and senior secured notes' rating of
'BB+' and senior notes' rating of 'B' on Rating Watch Positive
(RWP).

The RWP follows the announcement of the sale of UPC's operations in
Switzerland to Sunrise Communications AG (Sunrise; BB+/Stable).
Fitch understands the transaction will involve the transfer and
integration of UPC and its subsidiaries into Sunrise and will be
accompanied by the transfer of UPC's existing senior and senior
secured notes to the enlarged group. Fitch also understands that
UPC's term loan AR will be repaid at or prior to the closing of the
acquisition meaning UPC's senior secured term loan ratings have not
been placed on Rating Watch. As such, Fitch considers that there is
potential ratings upside for UPC's senior and senior secured notes
given the stronger operating profile and more conservative
financial leverage the enlarged group is expected to represent.  

Fitch will resolve the RWP on closure of the deal. This remains
subject to Sunrise shareholder approval, success of Sunrise's
rights issue and regulatory consents.

KEY RATING DRIVERS

Transaction Logic: Fitch believes there is strong industrial logic
for the transaction. Switzerland is a highly evolved telecoms
market. The acquisition will considerably boost Sunrise's operating
scale and market position. It will represent a strong market number
two in the provision of triple play services, with the combined
business accounting for 31% of market subscribers in both broadband
and TV (at 3Q18), while Sunrise is already a strong market number
two in mobile. The acquisition adds a high capacity fixed/cable
operations with coverage of approximately 70% of Swiss households.
Its combined service offering will position it strongly in a
crowded market where consumers have embraced convergence.

DERIVATION SUMMARY

UPC's ratings are positioned solidly within the leveraged telecom
peer group; with immediate peers being other LG cable operations -
Virgin Media Inc, Telenet Group Holding N.V (both BB-/Stable) and
Unitymedia GmbH (B+/RWP). VodafoneZiggo Group B.V (B+/Stable) of
the Netherlands, a joint venture between LG and Vodafone is a
further benchmark. Relative to the peer group, UPC is smaller, to
some extent exposed to emerging market risk, its markets more
fragmented and the business delivering weaker free cash flow (FCF).
These factors are mitigated by business diversification, growth
prospects and the effectiveness of its FX policy. However, Fitch
has set UPC's downgrade threshold marginally tighter than the peer
group to reflect these constraints.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
(including non-completed disposals):

  - Fitch's rating case only assumes the full impact from disposals
once they are completed; the disposals announced with Vodafone, M7
and Sunrise are therefore not reflected in its base case;

  - Revenue decline of 11% in 2019 reflecting full year impact of
the disposal of UPC Austria. Thereafter revenue is expected to
remain broadly stable;

  - Operating cash flow margin to decline to 49% in 2019 and remain
stable thereafter;

  - Capex to revenue of around 24%-25% in all years to 2021;

  - Available cash up-streamed through shareholder loan payments
subject to covenant headroom and Fitch's assumption that leverage
is likely to remain lower at UPC than in other LG portfolio
companies.

RATING SENSITIVITIES

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

  - Funds from operations (FFO)-adjusted net leverage of 4.3x or
below on a sustained basis.

  - Significant improvement in pre-dividend FCF.

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

  - FFO-adjusted net leverage above 5.0x on a sustained basis.

  - Material deterioration of competitive position in key markets.

LIQUIDITY AND DEBT STRUCTURE

Healthy Liquidity: At September 2018 the company had cash and cash
equivalents of EUR13 million and access to a fully undrawn UPC
holding bank facility of EUR990 million. The company also has
well-spread, long-dated maturities and has historically been able
to refinance well ahead of final maturity dates.



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

ALPHA BANK: Moody's Hikes Deposit Ratings to Ba2, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has upgraded the long-term local and
foreign currency deposit ratings of of Alpha Bank Romania S.A.
(ABR) to Ba2 from Ba3 and its Baseline Credit Assessment (BCA) to
b1 from b2. The bank's long-term Counterparty Risk Rating (CRR) has
also been upgraded to Ba1 from Ba2 and its long-term Counterparty
Risk Assessment (CRA) to Ba1(cr) from Ba2(cr). The bank's Not Prime
short-term deposit ratings and CRR and its short-term Not Prime(cr)
CRA have been affirmed. The outlook on the long-term deposit
ratings has been changed to stable from positive.

The upgrade follows the upgrade of the ratings of Alpha Bank AE
(Deposit ratings: to Caa1 stable from Caa2 positive, BCA: to caa1
from caa2), the parent bank of Alpha Bank Romania. Despite ABR's
strong financial profile of ba2, its b1 BCA is constrained by the
weaker credit profile of its Greek parent bank, to three notches
above the parent bank's caa1 BCA.

RATINGS RATIONALE

UPGRADE OF ABR's BCA TO b1 REFLECTS STRONGER CREDIT PROFILE OF
PARENT BUT CONTINUED CONSTRAINTS DUE TO MOODY'S ASSESSMENT OF GROUP
INTERLINKAGES

By upgrading ABR's BCA to b1 from b2, Moody's has taken into
account the strengthening of the parent bank's standalone credit
profile reflected in Alpha Bank AE's improved BCA of caa1, while
maintaining a three notches cap between the two banks' standalone
assessment. This analytical approach reflects the rating agency's
view of the strong correlation between subsidiaries and their
weaker parents, mainly as a result of reputational and funding
risks.

ABR's unconstrained ba2 standalone financial profile captures the
bank's improved solvency and profitability, its weaker than peers
funding profile as well as its resilient performance over time
despite challenges to its capitalization and funding since the
unfolding of the Greek crisis.

ABR's asset risk has improved significantly with the ratio of
nonperforming loans to gross loans declining to 5.95% of gross
exposure as of September 2018, from 13.3% as of December 2016,
broadly in line with the 5.6% ratio of problem loans of Romanian
banks as of September 2018. However, the coverage ratio for
nonperforming exposures, at 47% remains below the system average of
around 58% as of September 2018. ABR's asset risk is elevated by
large exposures to single borrowers and high concentrations in its
loan book to the cyclical and higher risk real estate and
construction sectors. The bank maintains adequate capital buffers
with the Tier 1 ratio at 20.8% as of September 2018, above the
17.8% Tier 1 ratio of Romanian banks as of September 2018 and
significantly above its total capital regulatory minimum
requirement.

In 2019 the bank's profitability will be under pressure due to the
newly introduced bank tax effective as of 1 January 2019. Following
net profit of RON215 million (EUR47 million) resulting in a return
on assets of 1.4% in 2017, Moody's expects the bank's profitability
in 2018 to be weaker than 2017 due to a one-off tax expense. For
the first six months of 2018 the return on assets was 0.7%.

Although reduced, ABR maintains a significant reliance on funding
from its parent bank which elevates its funding risk. Funding from
its parent bank, mostly in the form of deposits and predominantly
euro-denominated, declined to a still high 26% of total balance
sheet as of year-end 2017 from 35% as of year-end 2016 (2015: 59%)
while ABR's loans to deposits ratio was 110% as of H1 2018.
Although reduced from 120% as of year-end 2017 (2016: 144%) it
remains significantly higher than the 74% average ratio for
Romanian banks as of December 2018.

TWO NOTCHES UPLIFT FOLLOWING THE APPLICATION OF MOODY'S ADVANCED
LOSS GIVEN FAILURE ANALYSIS MAINTAINED DESPITE PLANNED COVERED BOND
ISSUANCE

The upgrade of ABR's deposit ratings to Ba2 from Ba3 incorporates:
1) the upgrade of the BCA to b1, 2) the continued benefits from two
notches of uplift following the application of Moody's Loss Given
Failure Analysis, and 3) unchanged assumptions of a low likelihood
of support from the government of Romania (Baa3, stable) in case of
need which does not provide further rating uplift.

ABR is subject to the European Bank Resolution and Recovery
Directive (BRRD), which allows the use of bail-in tools to resolve
a bank. Moody's applies its standard assumptions for European banks
to ABR's liabilities and has incorporated in its analysis the
bank's planned EUR200 million covered bond issue which the bank
expects to complete by the end of the first half of the year.
Despite the increase in secured borrowings, the bank's liability
waterfall continues to indicate a very low loss in resolution
resulting in two notches of rating uplift.

OUTLOOK CHANGED TO STABLE FROM POSITIVE

The outlook on ABR's long term deposit ratings has been changed to
stable from positive and is aligned with the stable outlook on the
parent bank's ratings. Assuming unchanged inter-linkages between
parent and subsidiary bank and given the constraint resulting from
the weaker credit profile of the parent bank, positive pressure on
ABR's deposit ratings can only result simultaneously with positive
rating action on its parent Alpha Bank AE.

WHAT COULD LEAD IN AN UPGRADE/DOWNGRADE

ABR's deposit ratings could be upgraded owing to an upgrade of its
parent and consequently its own BCA, or an increase in uplift
resulting from the application of Moody's Advanced LGF analysis
owing to additional volume of senior or subordinated instruments,
which would buffer depositors resulting in a lower loss in
resolution.

ABR's deposit ratings could be downgraded owing to a downgrade of
its BCA or a reduction in uplift as a result of Moody's Advanced
LGF analysis. ABR's BCA could experience downward pressure (1) if
the bank's financial fundamentals worsen mainly owing to weakening
of its asset quality, reduced capital buffers and/or an increased
reliance on parental funding or (2) as a result of a downgrade of
Alpha Bank AE's caa1 BCA, or (3) owing to changes in the bank's
liability structure, mainly a reduction in the volume of deposits
or subordinated instruments resulting in higher loss given failure
in resolution for depositors.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS

Issuer: Alpha Bank Romania S.A.

Upgrades:

  - Adjusted Baseline Credit Assessment, Upgraded to b1 from b2

  - Baseline Credit Assessment, Upgraded to b1 from b2

  - Long-term Counterparty Risk Assessment, Upgraded to Ba1(cr)
from Ba2(cr)

  - Long-term Counterparty Risk Rating, Upgraded to Ba1 from Ba2

  - Long-term Bank Deposits, Upgraded to Ba2 from Ba3, Outlook
Changed To Stable From Positive

Affirmations:

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

  - Short-term Counterparty Risk Rating, Affirmed NP

  - Short-term Bank Deposits, Affirmed NP

Outlook Action:

  - Outlook Changed To Stable From Positive



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

CB ZHILSTROYBANK: Bank of Russia Cancels Banking License
--------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-442, dated  March
1, 2019, cancelled the banking license of Moscow-based credit
institution Joint-stock Company "Commercial Bank of Housing
Construction" or JSC CB Zhilstroybank (Registration No. 2769) from
March 1, 2019.

The Bank of Russia cancelled the credit institution's banking
license based on Article 23 of the Federal Law "On Banks and
Banking Activities" following the decision of its sole shareholder
to terminate its activity through liquidation according to Article
61 of the Civil Code of the Russian Federation and the submission
of the respective application to the Bank of Russia.

Based on the reporting data provided to the Bank of Russia, the
credit institution's assets are sufficient to satisfy creditors'
claims.

In compliance with Article 62 of the Civil Code of the Russian
Federation and Article 21 of the Federal Law "On Joint-stock
Companies", a liquidator will be appointed to JSC CB
Zhilstroybank.

The credit institution is not a member of the deposit insurance
system.

According to the financial statements, as of February 1, 2019, JSC
CB Zhilstroybank ranked 456th by assets in the Russian banking
system.

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


CB ZLATKOMBANK: Bankruptcy Hearing Scheduled for March 11
---------------------------------------------------------
The provisional administration to manage the credit institution JSC
CB Zlatkombank (hereinafter, the Bank) appointed by virtue of Bank
of Russia Order No. OD-3126, dated December 6, 2018, following the
banking license revocation, in the course of its inspection of the
Bank's financial standing, established that the Bank's executives
had conducted operations to divert assets by misappropriating cash
funds, selling securities, and transferring funds to a company
unable to meet its liabilities.

The provisional administration estimates the value of the Bank's
assets to be no more than RUR622 million, vs RUR942 million of its
liabilities to creditors.

On January 25, 2019, the Bank of Russia applied to the Court of
Arbitration of Moscow to declare the Bank insolvent (bankrupt). The
hearing is scheduled for March 11, 2019.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offence conducted by
the Bank's executives to the Prosecutor General's Office of the
Russian Federation, the Ministry of Internal Affairs of the Russian
Federation and the Investigative Committee of the Russian
Federation for consideration and procedural decision-making.

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


EVROFINANCE MOSNARBANK: Moody's Withdraws B1 LT Deposit Ratings
---------------------------------------------------------------
Moody's Investors Service has withdrawn the following ratings of
Evrofinance Mosnarbank:

  - Long-term local and foreign currency bank deposit ratings of
B1
  
  - Short-term local and foreign currency bank deposit ratings of
Not Prime

  - Long-term local and foreign currency Counterparty Risk Ratings
of Ba3

  - Short-term local and foreign currency Counterparty Risk Ratings
of Not Prime

  - Long-term Counterparty Risk Assessment of Ba3(cr)

  - Short-term Counterparty Risk Assessment of Not Prime(cr)

  - Baseline credit assessment (BCA) and adjusted BCA of b1

At the time of the withdrawal, the bank's long-term deposit ratings
carried a stable outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

ROSCOMSNABBANK PJSC: Provisional Administration Appointed
---------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-474, dated March
7, 2019, revoked the banking license of Ufa-based credit
institution ROSCOMSNABBANK (public joint-stock company) or
ROSCOMSNABBANK (PJSC) (Registration No. 1398) from March 7, 2019.
According to its financial statements, as of February 1, 2019, the
credit institution ranked 132nd by assets in the Russian banking
system.

The main business line of ROSCOMSNABBANK (PJSC) was financing
construction projects through lending to companies owned by
business partners of the bank's ultimate owners and their
affiliates.  This business model was mainly financed with funds
raised from households.  The Bank of Russia worked with the credit
institution to mitigate the assumed risks, and the bank developed
an asset diversification plan. As a result of the bank's actual
incompliance with the planned benchmarks, construction project
lending exceeded the capital of ROSCOMSNABBANK (PJSC) more than
three-fold.

The bank's activities bore the signs of unfair practice on the part
of its management associated with the bank's participation in
operations of its corporate customers aimed at raising household
funds with their subsequent repayment in accordance with the Ponzi
scheme.  The credit institution accepted household funds for
corporate customers at an elevated interest rate (crowdfunding
platform); these funds were ultimately used in lending to a number
of companies.  Retail liabilities on such investments were actually
redeemed from newly raised household funds. This activity was
accompanied by an aggressive regional promotional campaign. In this
context, the Bank of Russia launched an unscheduled inspection of
ROSCOMSNABBANK (PJSC).

The Bank of Russia submitted information about the bank's
transactions bearing the signs of a criminal offence to law
enforcement agencies.

The balance sheet of ROSCOMSNABBANK (PJSC) accumulated a
significant volume of non-performing assets.  As the credit
institution consistently underestimated credit risk assumed, the
Bank of Russia repeatedly requested that it create additional loss
provisions.  In order to conceal its real financial standing and
artificially maintain the capital to formally comply with the
required ratios, ROSCOMSNABBANK (PJSC) performed opaque
transactions.  The Bank of Russia revealed a full loss of equity
capital by the credit institution should the credit exposure from
the debt on loans be adequately assessed.

The Bank of Russia repeatedly (4 times over the last 12 months)
applied supervisory measures against ROSCOMSNABBANK (PJSC),
including impositions of restrictions on household deposit taking.

Under these circumstances, the Bank of Russia took the decision to
revoke the banking license from ROSCOMSNABBANK (PJSC).

The Bank of Russia took this measure following the credit
institution's failure to comply with federal banking laws and Bank
of Russia regulations, repeated violations within a year of the
requirements stipulated by Articles 6 and 7 (excluding Clause 3 of
Article 7) of the Federal Law "On Countering the Legalisation
(Laundering) of Criminally Obtained Incomes and the Financing of
Terrorism" as well as Bank of Russia regulations issued in
accordance with the said law and application of the measures
stipulated by the Federal Law "On the Central Bank of the Russian
Federation (Bank of Russia)", taking into account a real threat to
the interests of creditors and depositors.

Following the banking license revocation, the professional
securities market participant license of ROSCOMSNABBANK (PJSC) was
also cancelled.

The Bank of Russia, by virtue of its Order No. OD-475, dated  March
7, 2019, appointed a provisional administration to ROSCOMSNABBANK
(PJSC) for the period until the appointment of a receiver pursuant
to the Federal Law "On Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

ROSCOMSNABBANK (PJSC) is a member of the deposit insurance system.
The revocation of a banking license is an insured event as
stipulated by Federal Law ‘On the Insurance of Deposits with
Russian Banks' in respect of the bank's deposit obligations.  This
Federal Law stipulates the procedure and amount of insurance
indemnities to the bank's depositors.

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




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

TELEFONICA SA: Fitch Rates Proposed Hybrid Securities BB+(EXP)
--------------------------------------------------------------
Fitch Ratings has assigned Telefonica SA's (BBB/Stable) proposed
benchmark-size perpetual subordinated securities an expected rating
of 'BB+(EXP)'. The securities will be issued by Telefonica Europe
B.V. and guaranteed on a subordinated basis by Telefonica SA. The
final rating is contingent on the receipt of final documents
conforming materially to the preliminary documentation.

Telefonica SA intends to use the proceeds of the transaction to
replace the EUR704.8 million 4.2% hybrids due December 4, 2019 and
subject to subscription, to additionally fund a tender offer for
the EUR591.8 million hybrids due March 31, 2020. Telefonica Europe
B.V. has approximately EUR7 billion of hybrids that qualified for
50% or EUR3.5 billion of equity credit. Fitch does not expect its
assessment of equity credit to change following the transaction and
successful completion of the tender offer. Telefonica SA's
intention to maintain the same level of hybrids in its capital
structure satisfies Fitch's permanence criteria.

The upcoming hybrid securities are proposed to be deeply
subordinated and to rank senior only to Telefonica SA's share
capital, while coupon payments can be deferred at the discretion of
the issuer. The 'BB+(EXP)' rating is therefore two notches below
Telefonica SA's Long-Term Issuer Default Rating (IDR), which
reflects the securities' increased loss severity and heightened
risk of non-performance relative to senior obligations.

The proposed securities qualify for 50% equity credit, as they meet
Fitch's criteria with regard to subordination, effective maturity
of at least five years, full discretion to defer coupons for at
least five years and limited events of default, as well as the
absence of material covenants and look-back provisions. The
proposed securities will be issued in euros and have no formal
maturity date. The issuer has a call option to redeem the notes at
par within the three months ending on the first reset date (which
will be over five years after the issue date) and at any interest
payment date thereafter.

There will be a coupon step-up of 25bp at least 10 years after the
issuance and an additional step-up of 75bp 20 years from the first
reset date. The first call date and the coupon step-up date are not
treated as effective maturity dates under Fitch's criteria due to
the cumulative amount of the step-ups being lower or equal to 1%
throughout the life of the instruments. The documentation includes
non-binding, intention-based replacement language that supports
Fitch's permanence assessment of the hybrid instruments.

There is no look-back provision in the securities' documentation,
which gives the issuer full discretion to unilaterally defer coupon
payments. Deferrals of coupon payments are cumulative and the
company will be obliged to make a mandatory settlement of deferred
interest payments under certain circumstances, including a
declaration or payment of a dividend.

KEY RATING DRIVERS

Well-Positioned Operating Subsidiaries: Telefonica's ratings are
supported by a portfolio of assets that are competitively
positioned and geographically diversified across Europe and Latin
America. The operator has a leading domestic market position in
Spain, which accounted for about 31% of total OIBDA in 2018. The
Spanish operations underpin Telefonica's ratings and consolidation
has improved market structure, while the company's investments in
network, content and bundled products sustain its competitive
capability. Telefonica Spain's wholesale fibre access deals with
competitors Vodafone Group (BBB+/Stable). and Orange SA
(BBB+/Stable)are also supportive of the company's longer-term
position.

FCF Generation Improving: Telefonica's capital intensity fell to
15.1% of revenues in 2018, as peak investment in its fibre and
mobile broadband networks across its footprint has passed. The
reduced capital expenditure levels, combined with margin expansion,
will improve free cash flow (FCF) generation with FCF margins,
excluding spectrum, over the next three years of 4%-5%.

Gradual Organic Deleveraging Profile: Telefonica's FFO adjusted net
leverage at end-2017 was 3.6x. The company's underlying FCF
generation provides the capacity to reduce this by 0.1x to 0.2x per
year over the next three to four years in Fitch's base case
forecasts. Fitch expects FFO adjusted net leverage to increase to
3.7x at end-2018 and remain stable during 2019 as a result of
spectrum auctions in the UK and Germany. The increase will take
Telefonica's leverage to the higher end of the company's 'BBB'
rating but remain comfortably within the downgrade threshold of
3.8x. This assumes no inorganic activity.

Emerging Market Exposure: Telefonica derived around 34.25% of its
OIBDA (end-2018) from countries with a non-investment grade rating
within their Latin American operations. The exposure increases
Telefonica SA's cash flow risks, which as a proportion is higher
than its immediate peer group of diversified western European
operators, such as Orange SA (13%), Vodafone Group (10%) and
Deutsche Telekom AG (BBB+/Stable; 7%). The exposure also has an
impact on Telefonica's leverage, with the majority of the company's
debt euro- and sterling-denominated.

DERIVATION SUMMARY

Telefonica is rated broadly in line with other geographically
diversified European telecom operators such as Orange SA Deutsche
Telekom AG and Vodafone Group. Its higher exposure to emerging
markets with sub-investment grade ratings result in a slightly
lower leverage per rating band than its peers.

Telefonica and the peer group combine strong operational positions
in both fixed and/or mobile with sizeable and diverse cash flow
operations. Operators with a single market focus, such as Royal KPN
NV (BBB/Stable) and BT Group plc (BBB+/Stable), have tighter
leverage thresholds for their respective ratings

KEY ASSUMPTIONS

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

  - Constant currency revenue to grow around 1% to 2% in 2018.
Around flat to 1% revenue growth per year thereafter.

  - EBITDA margin (before restructuring) of around 32.5% by 2020
from 31.5% in 2017.

  - Fitch assumptions relating to pre-retirement obligations taken
above FFO

  - Capex-to-sales ratio, excluding spectrum, of around 15% in
2019.

RATING SENSITIVITIES

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

  - FFO adjusted net leverage falling sustainably below 3.3x.

  - Improved competitive position in Telefonica's domestic and
other key international markets combined with strong growth in
pre-dividend FCF.

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

  - FFO adjusted net leverage trending above 3.8x on a sustained
basis.

  - Pressure on FCF driven by EBITDA erosion, FX and capital
repatriation constraints, higher capex and shareholder
distribution, or significant underperformance in the core domestic
and international markets.

LIQUIDITY

Strong Liquidity: Telefonica demonstrates strong liquidity, with
approximately EUR7.0 billion of cash and cash-like short term
investments as at December 2018, committed undrawn liquidity
facilities of EUR12.2 billion, and forecast FCF generation of
around EUR1.5 billion for 2019 according to Fitch's rating case.
Telefonica has a well-spread debt maturity profile with no notable
concentrations.

TELEFONICA SA: Moody's Rates Proposed Hybrid Securities Ba2
-----------------------------------------------------------
Moody's Investors Service has assigned a Ba2 long-term rating to
Telefonica Europe B.V.'s proposed issuance of undated, deeply
subordinated, guaranteed fixed rate reset securities (the "hybrid
debt"), which are fully and unconditionally guaranteed by
Telefonica S.A. (Telefonica) on a subordinated basis. The outlook
is stable. All other ratings of Telefonica and its guaranteed
subsidiaries, as well as the stable outlook, remain unchanged.

"The Ba2 rating we have assigned to the hybrid debt is two notches
below Telefonica's senior unsecured rating of Baa3, primarily
because the instrument is deeply subordinated to other debt in the
company's capital structure," says Carlos Winzer, a Moody's Senior
Vice President and lead analyst for Telefonica.

Telefonica plans to use the net proceeds for general corporate
purposes, to refinance existing hybrid securities, and to preserve
its liquidity cushion.

RATINGS RATIONALE

The Ba2 rating assigned to the hybrid debt is two notches below the
group's senior unsecured rating of Baa3.

The two-notch rating differential reflects the deeply subordinated
nature of the hybrid debt. The instrument: (1) is perpetual; (2) is
senior only to common equity; (3) provides Telefonica with the
option to defer coupons on a cumulative basis; (4) steps up the
coupon by 25 basis points (bps) at least ten years after the
issuance date and a further 75 bps occurring 20 years after the
first call date; and (5) the issuer must come current on any
deferred interest if there are any payments on parity or junior
instruments. The issuer does not have any preferred shares
outstanding that would rank junior to the hybrid debt, and the
issuer's articles of association do not allow the issuance of such
shares by the issuer.

In Moody's view, the notes have equity-like features that allow
them to receive basket "C" treatment, i.e., 50% equity and 50% debt
for financial leverage purposes.

Telefonica S.A.'s (Telefonica) Baa3 rating reflects (1) the
company's large scale; (2) the diversification benefits associated
with its strong position in its key markets; (3) the company's rich
TV content and convergent offer that provide it with a competitive
advantage in Spain; (4) the ample fibre roll-out of its
high-quality network in Spain, Brazil and specific areas in Latin
America; (5) management's track record in executing a well-defined
business strategy; (6) the company's continued access to the debt
capital markets and its good liquidity risk management; (7)
management's commitment to reduce debt gradually; and (8) Moody's
expectation that the company's operating performance will continue
to improve in Spain in the next 12-18 months.

However, Telefonica's rating also reflects (1) the intense
competition in the UK, Mexico, Germany and in the low-end
residential mobile segment in Spain; (2) the challenge in growing
revenue across its footprint because of intense competition,
despite high capital spending in the past; and (3) the relatively
slow organic deleveraging. In addition, the rating factors in the
company's exposure to emerging market risks, foreign-currency
volatility and the fact that Telefonica does not own 100% of all of
its consolidated subsidiaries.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on the rating primarily reflects Telefonica's
improving operating performance, coupled with management's
willingness to progressively reduce debt and achieve its
deleveraging plan organically over time.

Moody's expects Telefonica to continue to operate in an improved
domestic market with more rational competition focused on value and
better underlying economic conditions that will support medium-term
revenue growth.

WHAT COULD CHANGE THE RATING UP/DOWN

As the hybrid debt rating is positioned relative to another rating
of Telefonica, either: (1) a change in Telefonica's senior
unsecured rating; or (2) a re-evaluation of its relative notching
could affect the hybrid debt rating.

A rating downgrade could result if (1) Telefonica were to deviate
from its financial strengthening plan, as a result of weaker cash
flow generation; and/or (2) the company's operating performance in
Spain and other key markets were to deteriorate, with no likelihood
of short-term improvement in underlying trends. Resulting metrics
would include the ratio of retained cash flow to net adjusted debt
of less than 15% and/or the ratio of net adjusted debt to EBITDA of
3.75x or higher with no expectation of improvement.

Conversely, Moody's could consider an upgrade of Telefonica's
rating to Baa2 if the company's credit metrics were to strengthen
significantly as a result of improved operational cash flow and
debt reduction. More specifically, the rating could benefit from
positive pressure if it became clear that the company were able to
achieve sustainable improvements in its debt ratios, such as a
ratio of adjusted retained cash flow to net debt above 22% and a
ratio of adjusted net debt to EBITDA comfortably below 3.0x.

LIST OF AFFECTED RATINGS

Issuer: Telefonica Europe B.V.

Assignments:

  - BAKED Preference Stock, Assigned Ba2

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was
Telecommunications Service Providers published in January 2017.

Telefonica S.A. (Telefonica), domiciled in Madrid, Spain, is a
leading global integrated telecommunications provider, with
significant presence in Spain, Germany, the UK and Latin America.
In 2018, Telefonica generated revenue and EBITDA of EUR48.7 billion
and EUR15.6 billion, respectively.



=====================
S W I T Z E R L A N D
=====================

SUNRISE COMMUNICATIONS: Fitch Places 'BB+' LT IDR on Watch Neg.
---------------------------------------------------------------
Fitch Ratings has placed Sunrise Communications Holdings S.A.'s
(Sunrise) Long-Term Issuer Default Rating (IDR) of 'BB+' on Rating
Watch Negative (RWN). The telecoms company's instrument ratings are
also placed on RWN.  

The rating action follows Sunrise's announced intention to acquire
UPC Switzerland from Liberty Global, in a transaction that values
the Swiss cable operations at CHF6.3 billion. Fitch recognises the
industrial logic of the transaction, which will consolidate
Sunrise/UPC Switzerland's position as the second-largest convergent
player in the market.

The acquisition will be partly financed by a CHF4.1 billion rights
issue, providing balance to the leveraging effect of the
transaction. The deal will add approximately 1x to Sunrise's net
debt/EBITDA. Fitch's preliminary estimates suggest the company's
funds from operations (FFO) lease-adjusted net leverage could
increase above its downgrade threshold of 3.7x, possibly leading to
a one-notch downgrade. Execution risk exists in the company's
ability to deliver the rights issue and over the medium term to
integrate the businesses and achieve planned synergies.

Fitch will resolve the rating watch on completion of the deal,
which remains subject to Sunrise shareholder approval, the success
of the rights issue and regulatory consent.

KEY RATING DRIVERS

Transaction Logic: Fitch believes a strong industrial logic exists
for the transaction. Switzerland is a highly evolved telecoms
market. The acquisition will boost Sunrise's operating scale and
market position considerably. The combined entity will represent
the second-largest telecoms company in the provision of triple-play
services, with the combined business accounting for 31% of
subscribers in both broadband and TV (at end-3Q18), while Sunrise
is already the second larger mobile operator. The acquisition will
add high-capacity fixed/cable operations with coverage of
approximately 60% of Swiss households, excluding partner networks.
Its combined service offering will position the company strongly in
a crowded market where consumers have embraced convergence.

Rights Issue and Execution Risk: Sunrise's proposed financing
structure includes a planned equity raise of CHF4.1 billion through
a rights issue along with the assumption of UPC Switzerland's
CHF3.6 billion of outstanding bond debt. Management is intent on
striking a balance between a progressive dividend and containing
the leverage impact of the deal. The company's reported net
debt/adjusted EBITDA is expected by Fitch to rise to a pro-forma
3.0x (compared with end-2018's 2.0x).

Execution risk exists in both delivering the rights issue and
subsequent integration of the businesses. Success in both should
provide scope for deleveraging along with the potential for a
strongly improved operating profile. In the meantime transaction
execution risk and the potential for continued revenue pressure in
UPC Switzerland's fixed line/cable operations underpin the rating
watch.

Forecast Leverage Breaching Rating Threshold: Sunrise reported a
net debt/EBITDA leverage of 2.0x at end-2018, which was roughly
equal to the 2017 level. Fitch estimates a FFO lease-adjusted net
leverage above 4.0x in FY20, one year post-completion, compared
with its current downgrade leverage threshold of 3.7x.

Tough Swiss Telecoms Market: The Swiss telecoms market has proven
extremely competitive, led by a best-in-class incumbent, Swisscom,
within a four-player convergent market. Significant fibre
investment across the market has been driven by exacting consumer
expectations for both video content and broadband speed. Swisscom
has a highly evolved position: its TV subscriber base of 1.5
million is the largest in Switzerland. Its continued success in TV
and broadband is in contrast to the subscriber losses being
incurred by UPC Switzerland in both product categories, where it
has traditionally been the incumbent TV provider.

UPC Switzerland Pressures: Market competition, in particular from
the incumbent, has caused revenue pressure across the Swiss market.
This has affected UPC Switzerland's performance which saw its 2018
revenue fall 3.7%. Operationally it continues to lose cable
customers, at 121,000 cable subscribers for 2018. This compares
with Swisscom's 1.5 million TV base, which added 52,000 TV
customers in the same year. Fitch recognises this kind of market
dynamic as being typical in TV markets where the incumbent telecoms
company is effectively the video challenger. The acquisition will
position Sunrise more strongly in convergence while Liberty Global
continues to takes action to stabilise its cable business.

DERIVATION SUMMARY

The ratings of Sunrise reflect its predominantly mobile-centric
operating profile that drives a majority of the company's profits
and its challenger position in a market that is dominated by
Swisscom. Sunrise has demonstrated stability in service revenue
market share and some flexibility in dividend policy, while
improving leverage headroom within the rating supports the
company's strong 'BB+' rating.

Higher-rated peers in the sector, such as Telefonica Deutschland
Holdings AG (BBB/Positive), have stronger operating profiles as a
result of greater mobile-only in-market scale and lower adjusted
net leverage metrics. Others, such as Royal KPN N.V.  (BBB/Stable),
have strong domestic positions in both mobile and fixed with the
ownership of local loop infrastructure. Operators such as DKT
Holdings ApS (BB-/Stable), VodafoneZiggo Group B.V. (B+/Stable) and
Wind Tre SpA (BB-/Stable) have stronger domestic positions but
higher leverage.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer (not
including the impact of the UPC Switzerland acquisition)

  - Revenue growth of 0.5%-1% per year in 2019-2021

  - EBITDA margin of 32.5% in 2019 and beyond

  - Capex (excluding spectrum and one-off items)-to-revenue of 17%
in 2019, declining to around 14% thereafter

  - Dividend payments of CHF192 million in 2019, growing by around
6% p.a. in 2020 and 2021 (management guidance 4% - 6%)

RATING SENSITIVITIES

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

Continued growth in mobile service revenue and improvement in fixed
broadband market share

  - FFO lease-adjusted net leverage below 3.2x (2018: 3.4x)

  - FFO fixed charge cover above 3.7x on a sustained basis (2018:
4.5x)

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

  - Failure to reduce FFO lease-adjusted net leverage to 3.7x on a
sustained basis

  - FFO fixed charge cover below 3.2x on a sustained basis

  - Loss of service revenue market share or expectations of
sustained negative free cash flow (excluding spectrum payments)

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: As of end-2018, Sunrise had CHF421 million of
cash and cash equivalent (CHF272 million at end-2017) and an
undrawn revolving credit facility (RCF) of CHF200 million, which
matures in 2023.

During 2018, Sunrise completed the amendment and extension as well
as repricing its existing senior facilities agreement. Its existing
term loan B (TLB) has been increased by CHF500 million to CHF1,410
million with the proceeds being used to redeem the company's CHF500
million 2.125% senior secured notes due in March 2022. Furthermore,
Sunrise has placed a CHF200 million inaugural Swiss domestic senior
secured bond due in 2024 with a coupon of 1.5%.

With no significant debt maturing before 2023, Sunrise has
sufficient liquidity via cash and their undrawn RCF to comfortably
cover operating expenses and finance leases for a number of years.



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

BLACKPOOL: EFL Gives Board Opportunity to Review Financial Status
-----------------------------------------------------------------
BBC News reports that Blackpool's recently-appointed board will
have the opportunity to review their financial situation before the
English Football League decides whether an insolvency penalty is
required.

The club was put into receivership by the High Court on Feb. 13,
BBC relates.

It followed the removal of former owner Owen Oyston and his
daughter Natalie Christopher from the board, when new directors
were appointed by receivers, BBC notes.

Such a breach of insolvency regulations could result in a 12-point
deduction, BBC states.

However, EFL chief executive Shaun Harvey has previously said the
penalty is not a mandatory step, BBC discloses.

"The EFL will continue to work with the club's board to finalize
this outstanding matter as quickly as is practically possible," BBC
quotes an EFL statement as saying.

"The EFL board agreed to give the club's board the opportunity to
finalize its review of the club's current financial position before
making a decision on whether the club is to be regarded as being
subject to an insolvency event."


INTERSERVE PLC: Rebuffs Coltrane's Latest Financing Proposal
------------------------------------------------------------
Proactive Investors reports that cash-strapped infrastructure and
regeneration specialist Interserve PLC has essentially rebuffed the
latest financing proposal from Coltrane Asset Management.

According to Proactive Investors, the Interserve board grumbled
that its lenders, bondholders and pension trustee had been denied
access to the finer details of the Coltrane proposal and it
therefore argued that the ability to obtain lender support for a
materially different deal requiring lenders to take significantly
larger write-offs, or provide ongoing support, in the short time
frame available, is unknown.

The company's board continues to advise its shareholders to vote in
favor of the deleveraging plan that is on the table rather than
waiting to see whether anything comes of Coltrane's proposal,
Proactive Investors relates.

The bid approach might be considered opportunistic, given that
shares in IOG have tanked since doubts arose in November about the
oil explorer's financing options, Proactive Investors states.


[*] Fitch Takes Action on 19 Tranches from 3 UK Mortgage Loans
--------------------------------------------------------------
Fitch Ratings has upgraded seven tranches of Eurosail-UK 07-03 BL
Plc and three tranches of Mortgage Funding 2008-1 Plc, and affirmed
all the tranches of Eurosail UK 07-4 BL Plc, as follows:

Eurosail-UK 07-3 BL Plc (ES 07-3)

  - Class A3a (ISIN XS0308666493): upgraded to 'AA-sf' from
'BB-sf'; Outlook Stable

  - Class A3c (ISIN XS0308710143): upgraded to 'AA-sf' from '
BB-sf'; Outlook Stable

  - Class B1a (ISIN XS0308672384): upgraded to 'A-sf' from 'BB-';
Outlook Stable

  - Class B1c (ISIN XS0308716421): upgraded to 'A-sf' from 'BB-sf';
Outlook Stable

  - Class C1a (ISIN XS0308673192): upgraded to 'BB+sf' from
'BB-sf'; Outlook Stable

  - Class C1c (ISIN XS0308718047): upgraded to 'BB+sf' from
'BB-sf'; Outlook Stable

  - Class D1a (ISIN XS0308673945): upgraded to 'Bsf' from 'CCCsf';
Outlook Stable

  - Class E1c (ISIN XS0308725844): affirmed at 'CCsf'; RE revised
to 80% from 0%

Eurosail UK 07-4 BL Plc (ES 07-4)

  - Class A3 (XS 1150797600): affirmed at 'AAAsf'; Outlook Stable

  - Class A4 (XS1150799481): affirmed to 'AAAsf'; Outlook Stable

  - Class A5 (XS1150799721): affirmed to 'AA+sf'; Outlook Stable

  - Class B1a (XS0311705759): affirmed to 'A-sf'; Outlook Stable

  - Class C1a (X50311708696): affirmed to 'BB+sf'; Outlook Stable

  - Class D1a (XS0311713001): affirmed at 'CCCsf'; RE 100%

  - Class E1c (XS0311717416): affirmed at 'CCsf'; RE revised to 70%
from 90%

Mortgage Funding 2008-1 Plc (MF 08-1)

  - Class A1 (XS0350039912): upgraded to 'AAAsf' from 'AA+sf';
Outlook Stable

  - Class A2 (XS0995536934): affirmed to 'A+sf'; Outlook Stable

  - Class A3 (XS0995537155): upgraded to 'A+sf' from 'A-sf';
Outlook Stable

  - Class B1 (XS0995537312): upgraded to 'BB+sf' from 'BBsf';
Outlook Stable

The transactions comprise non-conforming UK mortgage loans
originated by Southern Pacific Mortgage Limited, Preferred
Mortgages Limited (formerly wholly-owned subsidiaries of Lehman
Brothers), Amber Homeloans and Alliance and Leicester limited.

KEY RATING DRIVERS

Timely Interest Payments

The cash flow model-implied ratings of ES 07-3 were previously
constrained at 'BBsf' because the notes incurred small temporary
interest payment shortfalls when testing rating assumptions at
'BB+sf' and above.

These temporary interest shortfalls are no longer present in
Fitch's updated cash flow modelling, taking into account updated
assumptions and an updated capital structure, and therefore the
cash flow model-implied ratings are now reflective of the high
levels of credit enhancement.

Payment Interruption Risk

ES 07-3 has a general reserve fund. ES 07-4 has a dedicated
liquidity reserve for the class A3 note plus a general reserve
fund. The ES 07-03 class A3 and ES 07-4 class A4 and A5 notes do
not benefit from dedicated liquidity. Fitch has analysed the
availability of the general reserves taking into account the
expected transaction performance. Based on current performance
expectations Fitch believes that the general reserves sufficiently
mitigate payment interruption risk for these notes.

MF 08-1 has only a dedicated liquidity reserve for the class A1
note. The ratings of the MF 08-1 Class A2, A3 and B1 notes are
limited to 'A+sf' due to the lack of liquidity to mitigate payment
interruption risk, as the liquidity is available to cover only for
class A1 interest shortfalls.

Credit Enhancement

The ES 07-3 and MF 08-1 transactions are amortising on a sequential
basis whereas ES 07-4 is amortising on a pro-rata basis.

The upgrade of the MF 08-1 class A1 note is driven primarily by
increasing credit enhancement.

Stable Asset Performance

The rating affirmations were driven primarily by stable asset
performance since the last rating action a year ago.

RATING SENSITIVITIES

Negative developments affecting the general reserve funds for ES
07-3 and ES 07-4 may lead to negative rating action for the notes
rated higher than 'A+sf' and not benefitting from dedicated
liquidity reserves.

The pools report a small number of owner-occupied interest-only
loans that have failed to make their bullet payments at loan
maturity. The servicer has implemented alternative plans with these
borrowers, and the number of overdue loans has reduced since the
last rating action. An increase the number of overdue interest-only
loans may result in negative rating actions.

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

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transactions. There were no findings that affected the
rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Prior to the transactions' closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the transactions' closing, Fitch conducted a review of a
small targeted sample of the originators' origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.

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



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

[*] BOOK REVIEW: Full Faith and Credit: The Great S & L Debacle
---------------------------------------------------------------
Faith and Credit: The Great S & L Debacle and Other Washington
Sagas

Author: L. William Seidman
Publisher: Beard Books
Softcover: 316 Pages
List Price: $34.95
Order a copy today at
http://www.beardbooks.com/beardbooks/full_faith_and_credit.html

"My friends, there is good news and bad news. The good news is that
the full faith and credit of the FDIC and the U.S. government
stands behind your money at the bank. But the bad news is that you,
my fellow taxpayers, stand behind the U.S, government." Take it
from L. William Seidman, former chairman of the FDIC under the
Reagan and Bush administrations, in his irreverent Washington
memoir. Chosen by Congress to lead the S&L cleanup, the author
describes how the debacle was created and nurtured, and the
lawsuits against Charles Keating, Michael Milken, and Neil Hush
that it spawned.

The story begins in the summer of 1973 when Seidman, then a Grand
Rapids, Michigan, businessman and managing partner of one of the
country's 10 largest accounting firms, which bore his family's
name, was tapped by Nixon to be undersecretary of HUD. Seidman had
scarcely unpacked his bags when "the summer of 1973" took on new
meaning in Washington and across the country. Confirmation of any
of the precarious president's nominations looked dubious in the
extreme, and Seidman prepared to pack up again. Then came a call
from the office of newly appointed Vice President Ford, Spiro
Agnew, hastily departing, had left the office in a shambles. (Not
least to be disposed of were large cases of Scotch whiskey,
presented to Agnew by supplicants.) Would Seidman lend his
managerial expertise for a few weeks to help a fellow Grand Rapidan
get organized?

One thing led to another in the usual Potomac way, and when Ford
advanced to the presidency, Seidman was made his assistant for
economic affairs. That job, too, was relatively short-lived, but a
decade later he returned to Washington to head the FDIC under
Reagan. What the author found was plenty disturbing. The
over-optimism of the 1970s and 1980s -- in particular, he believes,
a speculative binge of real estate investing followed by
recession, was resulting in numerous bank failures, more than 1,000
between 1986 and 1991. Worse, disaster loomed in the sister agency
that insured savings and loan institutions; a majority of the
nation's 4,000 S&Ls were on their way to bankruptcy. What caused
the S&L crisis? Seidman, although a small-government advocate,
blames a combination of deregulation and cutbacks in the oversight
agencies.

One of his many battles, for example, was with OMB, which sought to
cut the FDIC's bank supervision staff just as it had tried to
reduce the number of S&L examiners. But he finds a silver lining in
the near catastrophe; proof of resilience. The diversity of the
U.S. financial system is also its strength.

Seidman's memoir is as much about life inside the Beltway as it is
about financial crises, making this book, first published in 1990,
no less entertaining today. Included are lively anecdotes of
confrontations with heavy-weight White House chief of staff John
Sununu, an interview with a wild-eyed Wyoming purchaser of FDIC
property from a liquidated bank who arrived in Seidman's  office
armed with a gun to register his displeasure with the purchase (a
valid objection, the author discovered), and ambush by Secret
Service agents who converged on Seidman as he opened his window and
leaned out to watch the president's helicopter take off.

L. William Seidman was chairman of the Federal Deposit Insurance
Corporation from 1985 to 1991. Under his supervision, the FDIC
closed hundreds of failed banks and savings associations as the
agency attended to a debacle that cost taxpayers roughly $200
billion. Seidman worked for U.S. Presidents Gerald R. Ford, Ronald
Reagan and George H. W. Bush. He was also chief commentator on CNBC
and publisher of Bank Director magazine. He was also on the
speaking circuit, and a consultant to the Nippon Credit Bank,
Morgan Stanley Dean Witter, Ernst & Young, and Freddie Mac, among
others. Seidman died May 2009. He was 88.



                           *********


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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