/raid1/www/Hosts/bankrupt/TCREUR_Public/190320.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Wednesday, March 20, 2019, Vol. 20, No. 57

                           Headlines



F R A N C E

STELLAGROUP: S&P Puts 'B' Rating to EUR290MM Loan, Outlook Stable


G E O R G I A

SILKNET JSC: Moody's Assigns First-Time B1 CFR, Outlook Stable


G R E E C E

INTRALOT: S&P Cuts ICR to CCC+ on Weakened Liquidity, Outlook Neg.


I T A L Y

ALITALIA SPA: Easyjet Opts Out of Joining Takeover Consortium


L U X E M B O U R G

PARK LUXCO: Moody's Affirms B1 CFR, Outlook Stable
SBM BALEIA AZUL: Fitch Affirms BB- Rating on 2012-1 Secured Notes


N E T H E R L A N D S

KETER GROUP: S&P Lowers ICR to B- on Weakening Profitability


P O R T U G A L

BANCO MONTEPIO: Fitch Gives 'B-' LongTerm Rating to Tier 2 Notes


R U S S I A

EVRAZ PLC: Moody's Assigns Ba2 Rating to New Sr. Unsec. Notes


S W E D E N

ZENERGY AB: Gets Bridge Loan, Begins Public Accord Process


U K R A I N E

FERREXPO PLC: Delays Publication of Annual Results Amid IRC Probe


U N I T E D   K I N G D O M

DEBENHAMS PLC: Sports Direct Plans Acquisition if Firm Collapses
LONDON CAPITAL: SFO Arrests Four People Over Collapse
LOW & BONAR: Egan-Jones Lowers Senior Unsecured Ratings to B+
OFFICE OUTLET: Enters Administration, 1,200 Jobs at Risk

                           - - - - -


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STELLAGROUP: S&P Puts 'B' Rating to EUR290MM Loan, Outlook Stable
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S&P Global Ratings assigned its 'B' ratings to Stella's
intermediate parent company Stellagroup and to the EUR290 million
term loan B due 2026, with a recovery rating of '3'.

S&P said, "The 'B' rating incorporates our assessment of Stella's
fair business risk profile with our opinion that the group has a
highly leveraged capital structure as a result of its
private-equity ownership. PAI Partners is acquiring Stella from
ICG, financing the deal with a EUR290 million senior secured term
loan B. The contemplated structure will also include a EUR56
million payment-in-kind (PIK) instrument held by ICG, along with a
contribution from PAI in the form of equity and non-common-equity
instruments totaling EUR308 million.

"We consider that financial leverage at acquisition is high, with
the S&P Global Ratings-adjusted debt to EBITDA ratio at about 6.5x
over the next 12-18 months (5.5x excluding the PIK instrument,
which we regard as debt). We also expect that Stella can maintain
high margins and generate material free cash flows."

Stella's brands are well recognized by professionals, independent
retailers, and installers in the industry and associated with
high-quality products and services. S&P sees the market as highly
fragmented, since it comprises mainly small local manufacturers and
assemblers. Due to its strong local and regional presence and
optimized manufacturing footprint, Stella can process orders and
produce tailor-made rolling shutters and gates relatively quickly,
with fast delivery across all key geographic areas of France.

Stella controls most of the production chain and is vertically
integrated. Its flexible model provides a cost advantage and
enables high profitability, with EBITDA margins at 23%-24%,
compared with broader building material producers and its direct
competitors, which are mainly assemblers rather than manufacturers.
The current management team has been able to integrate and develop
acquired businesses into the group's manufacturing processes, such
that the operating margins of these brands have improved
significantly over recent years.

Although Stella has a wide range of products and expertise in the
rolling shutters and garage-door markets, the group operates
exclusively in France. Rolling shutters represent the majority of
sales (approximately 70%) and all other products follow the
renovation/residential or replacement/non-discretionary industrial
end markets. Although S&P considers that renovation and maintenance
activity is more resilient than new-build construction through the
credit cycle, S&P sees Stella's reliance on this market and its
small size relative to that of wider building materials producers
as constraints to its business profile. With about EUR231 million
of reported revenues and EUR55 million of EBITDA in 2018, Stella is
one of the smallest companies we rate in the building materials
industry.

S&P said, "Our assessment of Stella's financial risk profile is
mainly constrained by the group's high debt, which we estimate at
about EUR359 million at closing of the acquisition in January 2019.
This results in S&P Global Ratings-adjusted debt to EBITDA of about
6.5x over 2019-2020. This stems from the group's private-equity
ownership and potentially aggressive strategy in using debt and
debt-like instruments to maximize shareholder returns in the
takeover transaction and during the investment horizon. Our debt
adjustments include the EUR56 million PIK instrument held by the
noncontrolling sponsor ICG and about EUR15 million of existing debt
in the new structure. We also consider that convertible bonds and
preference shares held by PAI Partners qualify for equity treatment
under our methodology, in light of its expected pricing,
equity-stapling clause, and highly subordinated and default-free
features.

"We project strong free cash flows of at least EUR20 million on a
recurring basis in the coming years, since the company generates
high margins and has only moderate capital investment needs.
Although we do not deduct cash from debt in our calculation owing
to Stella's private-equity ownership, we consider that excess cash
flows offer some headroom for deleveraging. Moreover, the company's
interest coverage ratios support the ratings, with EBITDA interest
coverage at about 3.0x and funds from operations (FFO) covering
cash interest payments by about 4.0x."

The final ratings are in line with the preliminary ratings S&P
assigned Jan. 9, 2019.

S&P said, "The stable outlook reflects our expectation that Stella
will continue to expand and realize efficiencies from recent
acquisitions, while sustaining high margins and free cash flows of
at least EUR20 million per annum, with S&P Global Ratings-adjusted
debt to EBITDA at about 6.5x (5.5x excluding the PIK instrument)
over 2019-2020.

"We could lower the rating if Stella's profitability and cash flow
generation weakened due to deteriorated market conditions or
operational issues. We could also lower the rating if the company
adopted more aggressive financial policies--including debt-financed
dividend recapitalizations or acquisitions--that resulted in a
sizeable increase in leverage or interest coverage ratios declining
toward 2x with low prospects for improvement.

"In our view, an upgrade over the next 12 months is unlikely, given
the group's high leverage and potentially aggressive financial
policy from the private-equity sponsor. However, we could raise the
rating in the long term if the company reported adjusted leverage
sustainably below 5x (including the PIK instrument) and FFO to debt
stayed above 12%." In addition, a strong commitment from the
private equity sponsor to maintain leverage commensurate with a
higher rating would be important considerations for an upgrade.



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G E O R G I A
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SILKNET JSC: Moody's Assigns First-Time B1 CFR, Outlook Stable
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Moody's Investors Service has assigned a B1 corporate family rating
(CFR) and a B1-PD probability of default rating to Silknet JSC
(Silknet), a leading telecommunications company in Georgia.

Concurrently, Moody's has also assigned a B1 rating to Silknet's
proposed long-term $200 million senior unsecured notes.

The outlook is stable. This is the first time that Moody's has
assigned ratings to Silknet.

Silknet will mainly use the proceeds from the notes issuance to
refinance its secured bank debt.

RATINGS RATIONALE

Silknet's B1 CFR primarily reflects the company's positions as the
largest fixed-line and second-largest mobile operator in Georgia,
in terms of subscribers. Silknet's strategic entrance into the
mobile business was made in March 2018 through its acquisition of
the country's second-largest mobile operator Geocell LLC (Geocell).


As a result, Silknet is now a leading convergent operator in
Georgia, capable of making bundled offerings of major products and
thus increasing its competitiveness.

The CFR is supported by (1) Silknet's significant market shares of
51% in fixed line, 33% in fixed broadband, 36% in pay television
and 36% in mobile services, based on the number of subscribers; (2)
the potential for revenue growth due to increasing smartphone
penetration and data usage in Georgia, and broadband and pay
television coverage development; (3) Silknet's high
Moody's-adjusted margins of above 40%; and (4) a reasonably
invested network, which, however, needs to be developed further.

The CFR is mainly constrained by (1) Silknet's small size on a
global scale , with revenue around $150 million, which also
reflects the relatively small size of the local market (Georgia's
population is around 3.7 million) and relatively low per capita
income; (2) the strong competition from the mobile market leader
MagtiCom LLC (MagtiCom); (3) Silknet's elevated leverage, measured
by Moody's-adjusted debt/EBITDA of 3.5x at the end of 2018
following the acquisition of Geocell; (4) Silknet's significant
exposure to foreign currency risk, given that its debt will remain
predominantly denominated in US dollars, while revenues are mainly
in local currency; (5) potential pressures on liquidity, if the
notes are not placed or new backup bank facilities are not signed
as planned.

Given the high capital outlays of around 30% of revenue in 2019-21,
which will be required to develop its network and close the
technological gap with MagtiCom's mobile operations, Silknet is
likely to generate negative free cash flow (FCF) in the next 12-18
months, which may defer any meaningful deleveraging until 2020-21.


Moody's notes some recent regulatory pressures vis-a-vis large
telecommunication operators in Georgia, including Silknet, to
examine and cap prices for operators' retail services. However,
given the history of and on-going nature of similar disputes as
well as the market landscape (with three major players), Moody's
does not expect the current investigation to result in market
disruption and/or major drop in profitability for telco majors.

Moody's conservative assessment of the company's financial policy
takes into account its high tolerance to foreign-exchange risk, as
reflected in the very high proportion of US dollar-denominated debt
in its capital structure. The placement of the proposed notes will
not remove the risk. At the same time, Moody's positively notes
that the company plans to hedge around a 30% of the notes value
until their maturity, which should partially mitigate the foreign
currency risk.

Moody's also notes the risk associated with the private ownership
of Silknet by Rhinestream Holdings Limited and the track record of
related-party transactions, including upstream guarantees and
sizable dividend payments to the parent. This risk of related-party
transactions and elevated shareholder distributions is somewhat
mitigated by the special provision in the notes prospectus.

In addition, Moody's also conservatively notes that the continuing
integration of Geocell may involve extraordinary costs, offsetting
any potential synergies, which could also be deferred to a later
stage of operation as an integrated entity.

Moody's expects that the notes issuance will strengthen Silknet
liquidity. Moody's notes that according to the terms of the new
bond, the company will have a $20 million revolving facility from
JSC TBC Bank (local and foreign currency deposit ratings: Ba2 and
Ba3, respectively, stable) to backup annual interest payments. The
company will also have a $30 million trade finance facility to
support its liquidity needs.

STRUCTURAL CONSIDERATIONS

Moody's rates the proposed $200 million senior unsecured bond of
Silknet on par with the company's B1 corporate family rating. This
rating reflects the agency's view that the instrument will rank
pari passu with all the existing and future unsecured obligations
of the company, which represent the majority of Silknet debt
portfolio. The notes will benefit from common limitations on liens,
asset sales, new debt incurrence and transactions with related
parties. The notes will also benefit from a cross-acceleration and
cross-default clause with Silknet's subsidiaries.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that Silknet will
strengthen its market position and successfully complete the
ongoing integration of Geocell, while maintaining high margins,
deleveraging towards Moody's-adjusted debt/EBITDA of below 3x and
preserving healthy liquidity over the next 12-18 months..

WHAT COULD CHANGE THE RATING UP/DOWN

A reduction in leverage, measured by adjusted debt/EBITDA, to below
2.5x, alongside the maintenance of its strong market position and
improved post notes issuance liquidity, and prudent management of
foreign currency risk could put positive pressure on the rating.
Successful integration of Geocell and a track record of Silknet's
strong performance as a leading convergent operator would also be a
pre-requisite for a higher rating.

Conversely, 1) an increase in leverage to above 4.5x, 2) a
weakening of the coverage ratio measured by retained cash flow/debt
to below 15% on a sustained basis, 3) a weakening in the company's
liquidity; or 3) negative developments in the market or the
company's technological positioning would have a negative effect on
the rating.

RATING METHODOLOGY

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

Silknet JSC is a telecommunications operator domiciled in Georgia.
Following the acquisition of Geocell, Silknet is providing a full
range of telecommunications services in the country. In 2018,
Silknet reported GEL344 million ($150 million) in revenue. Silknet
is privately owned by Rhinestream Holdings Limited through its
wholly-owned subsidiary Silknet Holding LLC.



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INTRALOT: S&P Cuts ICR to CCC+ on Weakened Liquidity, Outlook Neg.
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S&P Global Ratings lowers to 'CCC+' from 'B-' its long-term issuer
credit rating and issue ratings on Intralot. The outlook remains
negative.

Following Intralot losing its betting contract with Turkish gaming
platform IDDAA, and the disposal of Azerinteltek at end-2018, S&P
expects the company's operating performance to deteriorate further
and lead to an increase in adjusted leverage to 8.5x-9.0x by
end-2019.

S&P said, "The downgrade follows Intralot's tightening liquidity
position and recent loss of one of two Turkish contracts; IDDAA
which represented about 10% of proportionate EBITDA in 2017.
Specifically, we expect a further increase in proportionate
adjusted debt to EBITDA to 8.5x-9.0x by year-end 2019, and we
expect Intralot will only start reducing leverage in 2020-2021. We
expect discretionary cash flow (DCF; free operating cash flows
[FOCF] after minority dividend payments) on a fully consolidated
basis will be negative in the next three years. This reflects poor
operating cash flow generation, significant capex requirements, and
dividend payments to minorities. This puts further pressure on the
rating.

"Under our revised forecasts we expect consolidated EBITDA to
decline to about EUR105 million in 2019 from about EUR140
million-EUR145 million expected for 2018 (including Azerinteltek).
This is mainly because of the exclusion of the Inteltek operations
in Turkey (EUR23 million EBITDA in 2017) as well as the
Azerinteltek business in Azerbaijan (EUR20 million EBITDA in 2017).
On a proportionate basis, we expect S&P Global Ratings-adjusted
EBITDA in 2019 will be about EUR85 million. We expect S&P Global
Ratings-adjusted leverage to increase above 8.5x by end of 2019.
Such high leverage, along with the impending liquidity shortfall,
brings into question Intralot's capital structure sustainability.

"We also believe liquidity could come under pressure in the next 12
months. Intralot's cash on balance sheet and funds from operations
(FFO) will barely cover the company's working capital changes,
capex, and minority dividend payments over the next 12 months.
Intralot has a EUR15 million loan with Nomura maturing in March 31,
2019, with an already-breached net leverage covenant of 3.75x. If
this covenant is not renegotiated, they will not be able to
refinance it and therefore the loan will be paid with cash on
balance sheet. The two bilateral facilities, amounting to EUR70
million, are currently not available given that the springing
covenant of 4.75x has been exceeded.

"The negative outlook reflects that we could downgrade Intralot
further in the next 12 months if it fails to dispose non-core
assets and/or renegotiate the financial covenants of its RCFs. This
would lead to liquidity stress and the company being unable to fund
capex needs and other expenses.

"In our view, Intralot's business remains constrained by its
significant exposure to emerging markets (such as Turkey, Morocco,
and Argentina), potential significant foreign-exchange fluctuations
and the high regulatory and taxation risk in the global gaming
industry. These constraints are somewhat offset by Intralot's
strong position among leading gaming-technology and sports-betting
companies and it being a vertically integrated company that
provides technology as well as operating machines. Intralot is also
well positioned in the U.S., which could benefit it in the future
in light of changes in U.S. sport betting regulations.

Earnings from Intralot's partly-owned subsidiaries (such as those
in Turkey, Bulgaria, and Argentina) are fully consolidated, while
debt is largely situated at the HoldCo level. This distorts the
company's credit metrics. S&P therefore assesses Intralot's
financial risk profile on a proportionate basis because not all of
the group's cash flows are available to service debt, since they
belong to partnerships and ultimately to minorities according to
their relevant stakes.

On a fully consolidated basis, Intralot has weak DCF generation
with a highly leveraged DCF-to-debt ratio. S&P considers this a
true measure of free cash flow for Intralot, since it measures DCF
after deducting significant nondiscretionary dividends paid to
minority interests at the subsidiary level.

S&P said, "The negative outlook reflects our view that S&P Global
Ratings-adjusted debt to EBITDA will climb to around 8.5x-9.0x
driven by the expected decline in earnings and profitability coming
from the loss of the Turkish contract and disposal of Azerinteltek.
We believe that this will lead to liquidity constrains. Significant
asset disposals will be needed to regain a liquidity cushion.
Moreover, the company will likely require a further amendment or
waiver of covenants over the near term to gain access to the RCFs.

"We could lower the rating on Intralot if its liquidity position
weakened further. This could stem from the company not managing to
sell non-core assets and failing to achieve the required covenant
amendment or waiver of its springing covenants under the RCF. We
would also consider a downgrade if a distressed exchange or
potential restructuring seemed likely over the next 12 months. This
could include a company voluntary agreement or buying back portions
of its bonds.

"We could revise the outlook to stable if Intralot successfully
disposes non-core assets without materially affecting its
profitability, and if it renegotiates the springing covenants under
the RCFs so that it has some headroom to use them if needed."

An outlook revision to stable would also need Intralot to restore
its profitability by effective efficiency measures and improved
market conditions.



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ALITALIA SPA: Easyjet Opts Out of Joining Takeover Consortium
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BBC News reports that Easyjet has abandoned talks to join a
consortium that would have bid for Italian carrier Alitalia.

The budget airline had been considering teaming up with Italy's
state-controlled railway Ferrovie dello Stato Italiane and Delta
Air Lines of the US, BBC relates.

Alitalia went into administration in May 2017 after workers
rejected a plan to cut jobs and salaries, BBC recounts.

The airline continued to operate, propped up by the government,
which has been looking for a buyer, BBC relays.

The three parties had entered discussions in February about
potentially forming a consortium, although at the time Easyjet said
it was not certain whether a transaction for Alitalia would
materialize, BBC notes.

According to BBC, Delta remains in talks with Ferrovie:
"Discussions remain ongoing as Alitalia is a long-standing partner
of Delta," a statement from the US airline said.

The Italian government has set an end-of-March deadline for the two
to come up with a rescue plan for Alitalia, BBC states.

Meanwhile, EasyJet, as cited by BBC, said Italy would remain a big
market for the airline.

Rome-based Alitalia has been the recipient of a GBP789 million
state loan and has been looking for international partners to keep
it in business, BBC discloses.



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PARK LUXCO: Moody's Affirms B1 CFR, Outlook Stable
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Moody's Investors Service affirmed the B1 corporate family rating
(CFR) and B1-PD probability of default rating (PDR) of Park LuxCo 3
S.C.A. (Apcoa or the company), a holding company of the German
parking operator Apcoa. Concurrently, Moody's affirmed the B1
ratings on the EUR380 million senior secured term loan B due 2024
and the EUR35 million revolving credit facility (RCF) due 2023,
both issued by APCOA Parking Holdings GmbH. The outlook on both
entities was changed to stable from negative.

"We changed Apcoa's outlook to stable from negative to reflect our
expectation that the company's Moody's-adjusted debt/EBITDA
excluding operating leases will be sustained at below 6.0x in the
next 12-18 months compared to 6.4x at the time of the dividend
recapitalisation in December 2017", says Eric Kang, Moody's lead
analyst for Apcoa. "The good operating performance in 2018 led to a
reduction in the Moody's-adjusted debt/EBITDA excluding operating
leases to 5.8x", adds Mr Kang.

RATINGS RATIONALE

The change of outlook to stable from negative on Apcoa's B1 CFR is
driven by the company's good operating performance in 2018 which
led to a reduction in the Moody's-adjusted debt/EBITDA to 3.5x at
year-end from 3.6x at year-end 2017 (to 5.8x from 6.4x excluding
operating leases). Moody's also expects EBITDA growth driven by new
business wins, high renewal rates, and cost efficiencies to lead to
further deleveraging towards 3.4x in the next 12-18 months (5.5x
excluding operating leases).

However, Moody's views the company's leverage as still high for the
current rating. Other factors constraining the rating are (1)
contract renewal risks in a fragmented and competitive market, (2)
medium- to long-term organic growth prospects subject to
technological disruptors, and (3) sizeable capital spending
requirements, although to a lesser extent than concession
operators. That said, Moody's notes that around half of the
company's capital spending expected this year relates to new
business wins (typically equivalent to the new contract's first
year of contract contribution), and investment in digitalisation.
Moody's does not expect investments in digitalisation to have a
material positive impact on profitability in the near term, but it
could give the company the first mover advantage and a favourable
positioning in tenders over some of its peers, and offer potential
upside to profitability in the medium term.

On the other hand, the rating is supported by (1) the company's
leading positions in the European parking operator market, with a
well- diversified contract portfolio, (2) revenue and earnings
visibility, coupled with strong retention rates, somewhat mitigate
the competitive market conditions, (3) significant proportion of
revenue is generated from lease contracts with moderate exposure to
volume risks, and (4) good operational performance in recent years
which reverses history of margin underperformance and financial
restructuring.

LIQUIDITY

Apcoa's liquidity is adequate reflecting Moody's expectations of
positive free cash flow in the next 12-18 months, cash balances of
around EUR36 million as of December 2018, and access to an undrawn
EUR35 million revolving credit facility. Moody's also expects the
company to maintain sufficient covenant headroom under its net
leverage covenant tested quarterly (target of 7.5x with no
step-down compared to a reported net leverage of 4.6x as of
December 2018).

STRUCTURAL CONSIDERATIONS

The senior secured term loan B and the RCF are rated B1, in line
with the CFR, reflecting their pari passu ranking and the fact that
there is no other debt instrument in the capital structure.

RATING OUTLOOK

The stable outlook reflects Moody's' expectation that the company
will maintain the current good operating momentum as well as credit
metrics consistent with its current rating. The stable outlook does
not incorporate material debt-funded acquisitions or distribution
to shareholders.

FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE

Upward rating pressure could arise over time if (1) the
Moody's-adjusted debt/EBITDA sustainably reduces towards 3.0x
(below 5.0x excluding operating leases) and (2) the company
maintains a solid liquidity profile with the Moody's-adjusted free
cash flow/debt improving to above 1.5% (above 5% excluding
operating leases).

Downward pressure on the ratings could arise if earnings weaken
such that (1) the Moody's-adjusted debt/EBITDA exceeds 3.5x
sustainably (exceeds 6.0x excluding operating leases) or (2) free
cash flow generation or liquidity were to worsen. Any material
debt-funded acquisition or further shareholder friendly action
could further put pressure on the ratings.

RATING METHODOLOGY

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

COMPANY PROFILE

Apcoa is a leading European parking operator, managing
approximately 1.4 million car parking spaces across approximately
9,000 sites in 13 countries. It generated revenues of EUR666
million in 2018.

SBM BALEIA AZUL: Fitch Affirms BB- Rating on 2012-1 Secured Notes
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Fitch Ratings has affirmed SBM Baleia Azul, S.a.r.l.'s senior
secured notes as follows:

-- Series 2012-1 senior secured notes due 2027 at 'BB-'; Outlook
    Stable.

The notes are backed by the cash flows related to the charter
agreement signed with Petroleo Brasileiro S.A. (Petrobras) for the
use of the floating production storage and offloading unit (FPSO)
Cidade de Anchieta for a term of 18 years. SBM do Brasil Ltda. (SBM
Brasil), the Brazilian subsidiary of SBM Holding Inc. S.A. (SBM),
is the operator of the FPSO. SBM is the sponsor of the transaction.
The FPSO Cidade de Anchieta began operating at the Baleia Azul oil
field in September 2012.

KEY RATING DRIVERS

Linkage to Petrobras' Credit Quality: Fitch uses the offtaker's
Issuer Default Rating (IDR) as the starting point to determine the
appropriate strength of the offtaker's payment obligation. On March
8, 2019, Fitch affirmed Petrobras' Long-Term Issuer Default Rating
(LT IDR) at 'BB-'/Stable. Petrobras' ratings continue to reflect
its close linkage with the sovereign rating of Brazil due to the
government's control of the company and its strategic importance to
Brazil as its near-monopoly supplier of liquid fuels.

Strength of Off-Taker's Payment Obligation: Fitch's view on the
strength of the off-taker's payment obligation acts as the ultimate
rating cap to the transaction. Given Fitch's qualitative assessment
of asset/contract/operator characteristics and the
off-taker's/industry's characteristics related to this transaction,
the strength of such payment obligation has been equalized to
Petrobras' LT IDR.

Supply and Demand Fundamentals: The FPSO market is consistently
stable as all vessels are built for a specific purpose and the lead
time for construction is long. For Brazil in particular, FPSO's are
essential to the country's development and production of deep water
oil, which supports the strategic importance of this asset to
Petrobras's operations.

Credit Quality of the Operator/Sponsor: SBM Offshore N.V. is the
ultimate parent to SBM Holding Inc. S.A., main sponsor of the
transaction. The transaction benefits from SBM Offshore N.V.'s
solid business position, global leadership in leasing FPSOs and
overall strong operational performance of its fleet. The rating of
the transaction is ultimately capped by Fitch's view of the credit
quality of the sponsor.

Stable Asset Performance: Asset performance is in line with
expectations, tied to characteristics of the contract including
fixed rates, which provide for cash flow stability. Average uptime
levels have been stable at 99.5% on average during 2018, which
compares favorably with the 98.9% on average during 2017 and 96.8%
average in 2016. Average economic uptime levels, considering gas
production and water injection with bonus days, have averaged 105%,
materially higher than Fitch's base case assumption, including
bonus, of 98.5%.

Leverage/Credit Enhancement: The key leverage metric for fully
amortizing FPSO transactions is DSCR. This transaction has
maintained quarterly DSCRs above trigger levels and above Fitch's
initial expectations. The rolling 12-month pre-opex DSCR for the
period ending December 2018 is 1.83x. This has allowed the
transaction the ability to withstand potential one-off events that
may negatively affect cash flows. While SBM Holding is compensating
the transaction structure for the cash flows lost by the Leniency
Agreement, the transaction's DSCRs would have been able to
withstand the reduction in cash flows and maintain sufficient
coverage in line with the rating level. Given the expected
stability of cash flows and SBM Holding's support, the
transaction's rating is not constrained by leverage and coverage
ratios.

Available Liquidity: The transaction benefits from a $26 million
(LoCs provided by ABN Amro, rated A+/Stable by Fitch) debt service
reserve account (DSRA) equivalent to the following two quarterly
payments of principal and interest. As of December 2018, net debt
balance closed at approximately $315.6 million.

RATING SENSITIVITIES

The rating may be sensitive to changes in the credit quality of
Petrobras as charter off-taker and any deterioration in the credit
quality of SBM as operator and sponsor. In addition, the
transaction's rating may be affected by the operating performance
of the FPSO Cidade de Anchieta.



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KETER GROUP: S&P Lowers ICR to B- on Weakening Profitability
------------------------------------------------------------
S&P Global Ratings lowered to 'B-' its long-term issuer credit and
issue ratings on household product manufacturer Keter Group B.V.
The stable outlook reflects S&P's view that the group's turnaround
plan will allow a gradual improvement of profitability in the next
12 to 18 months, and that it will be able to face its short-term
liquidity needs.

The downgrade follows Keter's weaker-than-anticipated operating
results in 2018, in the context of a difficult competitive and
retail environment, and S&P's expectation that Keter may continue
to face further challenges in 2019. S&P thinks the seasonality of
the business and the early stages of the turnaround plan may
prevent a strong improvement in free cash flow and credit metrics
by year-end 2019.

S&P said, "We now think the group's adjusted debt to EBITDA is
about 19x on a three-year weighted average basis (2018-2020), or
10x excluding non-common equity instruments, which is significantly
above our previous expectations. Due to our reduced EBITDA
forecasts, we anticipate funds from operations (FFO) cash interest
coverage will be below 2x in the next two years. The group
generated negative free operating cash flow generation (FOCF) of
about EUR35 million in 2018 after capital expenditure (capex),
interest costs, working capital, and operational restructuring
costs. We anticipate a return to positive FOCF generation in 2019
to be uncertain, despite lower expansion capex. Positively, we note
that Keter has no near-term refinancing risks, because its loans
mature in 2022 and 2023."

In 2018, Keter's S&P Global Ratings adjusted EBITDA margin dropped
by 250 basis points versus 2017, and the group currently faces a
number of internal and external headwinds. Keter's internal
organization has become more complex as the group has rapidly
expanded externally over the past two years, with revenues rising
to EUR1.1 billion in 2018 from EUR840 million in 2016. S&P
understands the group's internal organization did not align to
cost-efficient practices, resulting in high overhead and
restructuring costs.

In addition, the recent American acquisitions (Adams Manufacturing
and assets from United Solutions) have transformed the supply
chain, and the group has not been able to fulfill the high number
of orders received in North America. The group also faced
complications in its relationships with major distribution agents
in Europe (especially in France, Germany, and the U.K.), which led
to reduced volumes sold in those countries--in 2018, revenue growth
decreased by 11% in the U.K. and by 14% in France.

In addition to these internal headwinds, the group faces raw
material cost inflation due to the higher price of virgin
polypropylene, which increased by 20%-30% in 2018—S&P does not
expect such a material increase in 2019. This inflation harms the
gross margin because price increases are difficult to implement,
with a time lag and high price pressure from retailers. Gross
margins fell to 31% in 2018 from about 35% in 2017. S&P also notes
that demand from retailers was lower in 2018 due to inventory
management.  

S&P said, "With a low EBITDA base of EUR117 million in 2018 and
still high capex spending, we think Keter may struggle to manage
its inherent high intra-year working capital volatility. The group
has a springing financial covenant on its revolving credit facility
(RCF), tested when more than 35% drawn. The financial covenant test
is at 6.9x, allowing for a Senior Facilities Agreement. Considering
the reported net leverage will remain high in 2019, the group will
have limited capacity to draw on its EUR110 million RCF to cover
potential liquidity needs. That said, our analysis takes into
account the liquidity measures that Keter is implementing in the
first and second quarters of 2019 to shore up its liquidity
position. We expect Keter will complete a sale and leaseback
transaction in the beginning of Q2 2019, and a nonrecourse
factoring line has been in place since Q1 2019. These additional
sources of funding will reduce the group's reliance on its RCF to
fund intra-year liquidity needs in the next 12 months.

"We understand the group has started implementing a turnaround
plan, "Keter 2.0". The plan entails a wide internal reorganization
aimed at improving internal efficiency, reducing overhead costs,
simplifying the group's supply chain, and restoring positive
relationships with historical clients in Europe. In addition, the
group is actively using cheaper and more sustainable raw materials
such as regrind polypropylene, the prices of which are less
volatile. It aims to use more than 40% regrind in its mix by the
end of 2019, which may help reduce raw material cost pressure.

"That said, the group's turnaround plan may take longer than 12
months to restore profitability back to 2017 levels and generate
positive FOCF generation. In our view, the full effect of Keter
2.0--if executed seamlessly--will translate into improving credit
metrics starting in 2020. However, we think the group's volume
growth could turn positive again in 2019, thanks to a return to
growth in the outdoor storage segment and some innovative products,
such as the Milwaukee tool storage line.

"The stable outlook reflects our view that the group's turnaround
plan will allow a gradual improvement in profitability in the next
12-18 months, thanks to more efficient internal controls and a more
effective supply chain. We think the group's FFO cash interest
coverage should gradually improve to closer to 2x in the same
timeframe. In addition, we think the group will be able to face its
liquidity needs thanks to internally generated cash, its RCF, and
the liquidity measures implemented.

"We would consider lowering our rating if the group's turnaround
plan faced delays, such that its profitability continued to weaken
in the next 12 months. In addition, we could lower our ratings if
we no longer anticipated a return to positive FOCF generation by
2020.

"We could upgrade our ratings if we saw a significant improvement
in profitability levels and if the company generated positive FOCF.
That would most likely be the result of a seamless execution of the
turnaround plan in the next 12-18 months, as well as a
demonstration of pricing power.

"We would also view positively FFO cash interest coverage improving
sustainably above 2.0x, which would also support our view of the
liquidity position.

Keter Group is a manufacturer of resin-based household and garden
consumer products. The group offers ranges of products in the
furniture, storage, and organization segments.

The group generated revenues of EUR1.1 billion and EBITDA of EUR117
million in 2018. Private equity firm BC Partners has owned Keter
since 2016.

In S&P's base-case scenario for Keter, it expects:

-- Contributions from North America--stemming from recent
acquisitions and improvements in supply chain management--and
expansion opportunities from emerging markets to drive revenue
growth of 5%-6% in 2019 and 2020.

-- Restructuring costs included in the EBITDA of about EUR20
million in 2019, mostly linked to the implementation of Keter 2.0.

-- Gradually improving adjusted EBITDA margin of 11%-12% in 2019
and 2020, thanks to increasing usage of regrind raw material, and
to a more efficient internal organization.

-- Negative FOCF of EUR5 million-EUR10 million in 2019 and flat to
slightly positive FOCF in 2020, with reduced capex of EUR45 million
in 2019 and neutral working capital movement in 2019 and 2020

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

-- Adjusted debt to EBITDA of 17x-18x in 2019 and 2020. In S&P's
adjusted debt metric for 2018, it takes into account about EUR1,260
of borrowings, EUR185 million of shareholder loan and accrued
interest, and EUR840 million of preference shares and accrued
interests that S&P treats as debt. Excluding shareholder loan and
preference shares, adjusted debt to EBITDA of 9x-10x in the next
two years.

-- FFO cash interest coverage of 1.5x-2.0x in the next two years.



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

BANCO MONTEPIO: Fitch Gives 'B-' LongTerm Rating to Tier 2 Notes
----------------------------------------------------------------
Fitch Ratings has published CAIXA ECONOMICA MONTEPIO GERAL, Caixa
economica bancaria, S.A.'s (Banco Montepio) subordinated notes'
long-term rating of 'B-'. The notes have a Recovery Rating of
'RR6'.

The EUR50 million notes were issued under Banco Montepio's EMTN
programme on December 27, 2018 and qualify as Basel III-compliant
Tier 2 capital. The notes are subordinated to all senior unsecured
creditors. With these notes, Banco Montepio started rebuilding its
buffers of subordinated and junior instruments, which were nearly
depleted in 2018. The Bank of Portugal set Banco Montepio's
Supervisory Review and Evaluation Process total capital requirement
at 13.63% from July 2019, including a 3% Pillar 2 requirement. At
end-2018, Banco Montepio's phased-in total capital ratio was 14.1%
(11.9% fully loaded).

KEY RATING DRIVERS

SUBORDINATED DEBT

Fitch rates Banco Montepio's subordinated notes two notches below
the bank's 'b+' Viability Rating (VR). The notching reflects the
notes' poor recovery prospects if the bank was under severe
financial stress and reaching a point where it is no longer
considered viable. Fitch does not apply additional notching for
incremental non-performance risk relative to the VR since there is
no coupon flexibility included in the notes' terms and conditions.
The prospects of poor recoveries for subordinated bondholders are
also reflected in the 'RR6' Recovery Rating assigned to the notes.


Our view of poor recovery prospects in a non-viability scenario is
supported by the bank's current thin layers of junior non-equity
capital relative to the large risks it faces. The bank's capital
base is highly vulnerable to even moderate asset quality shocks,
due to a very high capital encumbrance from unreserved problem
assets. Fitch estimates the unreserved problem assets (net impaired
loans, foreclosed assets and investment properties) at end-2018
were very high at about 1.6x Banco Montepio's fully loaded common
equity Tier 1 capital.

RATING SENSITIVITIES

SUBORDINATED DEBT

The subordinated notes' rating is sensitive to changes in Banco
Montepio's VR, from which it is notched. The notes' rating is also
sensitive to a change in notching should Fitch change its
assessment of loss severity (for example the notching could narrow
if problem asset levels become less significant relative to the
layer of junior non-equity capital, either through an increase in
the amount of the subordinated buffers or through a significant
reduction of problem assets) or relative non-performance risk.



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

EVRAZ PLC: Moody's Assigns Ba2 Rating to New Sr. Unsec. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to EVRAZ plc's
(Evraz) proposed senior unsecured notes. Evraz's Ba1 corporate
family rating (CFR), Ba1-PD probability of default rating and
stable outlook are not affected by this action.

Evraz intends to use the proceeds from the proposed notes issuance
to refinance its existing debt, including the purchase of the
company's outstanding $700 million senior unsecured notes due April
2020 pursuant to the tender offer announced by Evraz on 18 March
2019.

RATINGS RATIONALE

The Ba2 rating of Evraz's proposed senior unsecured notes is one
notch below the company's Ba1 CFR. This differential reflects
Moody's view that the notes will rank pari passu with other
unsecured and unsubordinated obligations of Evraz group, and will
be structurally subordinated to more senior obligations of Evraz
group, primarily to unsecured borrowings at the level of the
group's operating companies, including its two core steelmaking
plants Evraz NTMK and Evraz ZSMK.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Steel Industry
published in September 2017.

EVRAZ plc is one of the largest vertically integrated steel, mining
and vanadium companies in Russia. The company's main assets are its
steel plants and rolling mills (in Russia, North America, Europe
and Kazakhstan), iron ore and coal mining facilities, as well as
trading assets. In 2018, EVRAZ plc generated revenue of $12.8
billion (2017: $10.8 billion) and Moody's-adjusted EBITDA of $3.8
billion (2017: $2.6 billion). The company is jointly controlled by
Roman Abramovich (30.52%), Alexander Abramov (20.69%), Alexander
Frolov (10.33%) and Gennady Kozovoy (5.80%).



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

ZENERGY AB: Gets Bridge Loan, Begins Public Accord Process
----------------------------------------------------------
Reuters reports that Zenergy AB on March 18 said the company
received a bridge loan and started the process of implementing
public accord.

Zenergy AB undertakes housing and ZIP contracts in Sweden.




=============
U K R A I N E
=============

FERREXPO PLC: Delays Publication of Annual Results Amid IRC Probe
-----------------------------------------------------------------
Neil Hume at The Financial Times reports that Ukraine-focused miner
Ferrexpo has delayed the publication of annual results after an
audit of charitable donations identified a number of additional
"discrepancies."

The iron ore producer called in accountants BDO last month to help
an independent review committee examine payments made to Blooming
Land, a charitable foundation charged with coordinating the
company's corporate social responsibility program in Ukraine, the
FT relates.

According to the FT, Ferrexpo said on March 19 BDO's preliminary
work had identified "a number of discrepancies on the application
of funds by Blooming Land and its sub funds."  It said these
payments may "not all have been used for their stated purpose", the
FT notes.

It said "Given the above developments, and the ongoing work of the
IRC and its advisers, the Group has decided to delay the
publication of its 2018 results", the FT relays.  The company now
intends to publish figures on or before April 3, the FT discloses.

Ferrexpo is the world's largest exporter of iron ore pellets to the
steel industry.  It is majority owned by Ukrainian billionaire
Kostyantin Zhevago.

In 2015, a bank owned by Mr. Zhevago, and holding most of the
miner's cash, went bust forcing the company to write off US$174
million during a brutal downturn in commodity markets, the FT
recounts.




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

DEBENHAMS PLC: Sports Direct Plans Acquisition if Firm Collapses
----------------------------------------------------------------
Jonathan Eley at The Financial Times reports that Sports Direct has
admitted for the first time that it would seek to acquire Debenhams
if the department store chain fell into administration, although it
still hoped to avoid that outcome.

Chris Wootton, who has been lined up to replace Mike Ashley as
chief executive of Sports Direct should the founder step aside to
run Debenhams, told the FT that while administration was "not the
outcome we want", it was a distinct possibility.

Sports Direct is the biggest shareholder in the department store
group, with a 29% stake, the FT discloses.  It has informed
Debenhams in writing that it considers itself the most logical and
best-placed acquirer if it did enter administration, the FT
relates.

Debenhams' management is trying to refinance its borrowings and
push ahead with a company voluntary arrangement to close 50-60
stores after a string of warnings, the FT discloses.

However, holders of its GBP200 million unsecured bonds are also
thought to be considering a
"pre-pack" administration that would hand control to lenders
without requiring shareholders' assent, the FT states.

LONDON CAPITAL: SFO Arrests Four People Over Collapse
-----------------------------------------------------
Lucy Burton at The Telegraph reports that the Serious Fraud Office
has arrested four people over the collapse of London Capital &
Finance, raising the alarm for the thousands of people whose
investments are at risk.

According to The Telegraph, LCF promised returns of 8% for its
mini-bonds or ISAs but collapsed in January after taking GBP236
million from more than 11,500 savers.  Investors have no guarantee
of getting any money back, The Telegraph states.

The SFO said on March 18 it had opened an investigation into four
people who were associated with the business and would be working
on the probe with the City watchdog, the Financial Conduct
Authority, The Telegraph relates.

The agency said it made the arrests earlier this month in the Kent
and Sussex areas, The Telegraph notes.


LOW & BONAR: Egan-Jones Lowers Senior Unsecured Ratings to B+
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 12, 2019, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Low & Bonar PLC to B+ from BB-.

Low & Bonar PLC was founded in 1903 and is headquartered in London,
the United Kingdom. The company manufactures and supplies technical
textiles worldwide.

OFFICE OUTLET: Enters Administration, 1,200 Jobs at Risk
--------------------------------------------------------
Alys Key at Press Association reports that Office Outlet has gone
into administration, putting the future of 1,200 jobs at risk.

Partners at Deloitte were appointed joint administrators on March
18, Press Association discloses.

It throws the future of about 1,200 people working at more than 90
stores into doubt, Press Association states.

Stores will continue trading while the business is marketed to
potential new owners, Press Association notes.

According to Press Association, joint administrator Richard Haws
said: "In addition to a general downturn in trading as a result of
the ongoing decline in the stationery market and UK retail in
general, the company has recently experienced a reduction in credit
from key suppliers, given the economic outlook which has severely
impacted the financial position of the company.

"We are hopeful a buyer can still be found for the business in the
coming weeks and we will continue to trade the business with that
aim in mind."

The chain launched a plan last August to shutter a handful of
stores under a form of insolvency called a Company Voluntary
Arrangement, Press Association recounts.

The deal also included three years of free rent on 20 sites, Press
Association says.

But the move failed to save the chain, which is understood to have
had trouble scraping together rent for its estate of more than 90
stores ahead of the due date on Friday, March 22, Press Association
relates.



                           *********


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
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