/raid1/www/Hosts/bankrupt/TCREUR_Public/190417.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, April 17, 2019, Vol. 20, No. 77

                           Headlines



A Z E R B A I J A N

AZERBAIJAN: Moody's Affirms Ba2 Sr. Unsec. Rating, Outlook Stable


F R A N C E

ANDROMEDA INVESTISSEMENTS: Moody's Assigns B2 Corp. Family Rating
ANDROMEDA INVESTISSEMENTS: S&P Assigns Preliminary 'B' Rating
EUROPCAR MOBILITY: S&P Raises ICR to 'BB-', Outlook Stable
FINANCIERE GROUPE: S&P Assigns 'B' Long-Term ICR, Outlook Stable


I R E L A N D

ADIENT PLC: S&P Assigns BB- Rating on $750MM Term Loan B


I T A L Y

PARMALAT SPA: Italy's Supreme Court Upholds Citibank Case Ruling


N E T H E R L A N D S

NYRSTAR NV: Trafigura to Take Over Firm as Part of Rescue Deal
STORM BV 2019-I: Moody's Assigns Ba1 Rating on Class E Notes


R U S S I A

MARI EL: Fitch Affirms LT IDRs at B & Senior Unsec. Rating at BB


T U R K E Y

MANISA METROPOLITAN: Fitch Affirms 'BB/BB+' IDRs, Outlook Negative
TURKCELL: S&P Affirms 'BB-' Ratings on Improving Credit Ratios


U N I T E D   K I N G D O M

BRITISH STEEL: Sold Excess Carbon Credit Prior to Aid Request
DEBENHAMS PLC: CEO Expected to Step Down After Administration
THOMAS COOK: May Have Breached Own Borrowing Limits


X X X X X X X X

GLOBALWORTH REAL: Moody's Hikes EUR550MM Unsec Notes From Ba1

                           - - - - -


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A Z E R B A I J A N
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AZERBAIJAN: Moody's Affirms Ba2 Sr. Unsec. Rating, Outlook Stable
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Moody's Investors Service has affirmed the Government of
Azerbaijan's long-term issuer and senior unsecured debt ratings at
Ba2 and maintained the stable outlook.

The key drivers of the rating affirmation are:

1. A growing net creditor position of the government, bolstered by
ongoing fiscal reforms;

2. Banking sector risks that are gradually receding, although the
financial system remains fragile; and

3. Limited prospects for economic diversification, and
institutional constraints that limit the shock absorption capacity
of the economy

The decision to maintain the stable outlook reflects balanced
risks. On the upside, ongoing fiscal and financial sector reforms
may shore up the resilience of the sovereign credit profile to
shocks including lower oil prices, and contribute to improving
policy credibility and effectiveness to a greater extent than
Moody's currently expects. At the same time, on the downside,
credit resilience and the commitment to and effectiveness of
reforms are still relatively recent and have not been significantly
tested in a less favourable environment, in particular for oil
prices.

Concurrently, Moody's has affirmed the backed senior unsecured bond
rating of Southern Gas Corridor CJSC (SGC), that benefits from an
explicit guarantee from the government, at Ba2 and maintained the
stable outlook.

Azerbaijan's long-term local currency bond and deposit ceilings
remain unchanged at Ba2. The Ba2 long-term foreign currency bond
ceiling and Ba3 long-term foreign currency deposit ceiling are also
unchanged. The short-term foreign currency bond and deposit
ceilings remain unchanged at Not Prime. These ceilings act as a cap
on the ratings that can be assigned to the obligations of other
entities domiciled in the country.

RATINGS RATIONALE

RATIONALE FOR THE RATING AFFIRMATION

A GROWING NET CREDITOR POSITION, BOLSTERED BY ONGOING FISCAL
REFORMS

Azerbaijan's rating continues to be supported by the government's
significant net asset position. Sovereign wealth assets at the
State Oil Fund of the Republic of Azerbaijan (SOFAZ) were 1.7 times
the sum of the government's direct debt and its explicit guarantees
as of the end of 2018, which underpins the government's fiscal
strength, lowers government liquidity risk, and reduces external
vulnerability. Moody's expects the ongoing fiscal reforms,
including the implementation of a new fiscal rule and the
government's debt strategy, to bolster the net creditor position
further.

A key aspect of the fiscal reforms is the introduction of a new
fiscal rule, which has been adopted for the government's 2019
budget. By imposing strict limits to the growth of consolidated
government expenditure, Moody's expects the fiscal rule to
primarily instil fiscal prudence and limit procyclical spending
when oil prices are high, which would support ongoing saving of
hydrocarbon revenue at current oil prices.

The fiscal rule also aims to reduce the reliance of the government
on hydrocarbon revenue by targeting annual declines in the non-oil
deficit, and allowing countercyclical spending through its escape
clause, which will likely be triggered when oil prices fall sharply
or when economic growth slows significantly. If effectively
implemented, these provisions will contribute to greater economic
stability. This would be aided by the greater predictability and
lower procyclicality of SOFAZ transfers to the state budget that
will provide stability to the manat through regular auctions of US
dollars by the Central Bank of Azerbaijan (CBAR). However, Moody's
believes the economic benefits of the fiscal rule will depend on
its consistent implementation over time, given the discretionary
nature of some elements, including activation of the escape
clause.

Further supporting the government's fiscal strength, its long-term
debt strategy for 2018-25 targets a reduction in the direct
government debt burden and places restrictions on the incurrence of
new direct debt and the provision of new guarantees. If adhered to,
the debt strategy and fiscal rule will allow Azerbaijan to
gradually restore some of the lost fiscal space over 2015-17,
although the debt burden will remain higher relative to levels
prior to 2015.

Moody's expects the government's debt burden to decline to 29% of
GDP by 2020, from around 33% as of the end of 2018 and a peak of
slightly more than 37% as of the end of 2017. The debt burden will
nevertheless remain higher than the average debt to GDP ratio of
around 12% between 2009 and 2014. Moody's assumptions for the
government's debt burden includes all of its direct debt and some
explicit guarantees, which largely consists of guarantees that were
issued to Aqrarkredit, the state-owned enterprise that acquired bad
assets from the International Bank of Azerbaijan (IBA) during IBA's
restructuring.

BANKING SECTOR RISKS ARE GRADUALLY RECEDING, BUT THE FINANCIAL
SYSTEM REMAINS FRAGILE

Azerbaijan's banking sector weighs on the sovereign's credit
profile, reflecting contingent liabilities that remain from the
restructuring of IBA and bad asset acquisition of Aqrarkredit, and
impaired credit intermediation, following a sharp credit
contraction over 2016-18. While Moody's expects ongoing financial
sector reforms and initiatives to gradually lower contingent
liability risks from banks and support the nascent credit recovery,
confidence in the financial system remains fragile and high levels
of dollarisation will continue to pose risks to the banking
sector.

Moody's expects the ongoing financial sector reforms to increase
the quality of prudential policymaking, bank supervision, and
information sharing, which will allow banks to better assess and
manage credit risks. Key reforms include the establishment of the
Financial Market Supervisory Authority (FIMSA) as a standalone
prudential regulator and supervisor, a new credit bureau, and a
collateral registry for moveable assets. In particular, FIMSA is
implementing new banking regulations and its powers will be
formalised under a new FIMSA Act, which Moody's expects will be
approved by parliament and the president by 2020.

Stricter regulatory requirements for capital adequacy and on
foreign exchange exposure will enforce higher levels of bank
capitalisation and limit foreign exchange risks relative to
2014-17. In particular, Moody's estimates that tangible common
equity as a percent of risk-weighted assets across Moody's rated
banks, which account for around two thirds of the banking sector,
has risen to an average of 20% as of the end of 2018 from 12% as of
the end of 2016. The increase has been one of the largest across
banking systems in the region over this period. The higher capital
levels have in part allowed credit growth to the real economy to
resume in the fourth quarter of 2018. This growth has mainly been
driven by loans in local currency, which will be less vulnerable to
sharp depreciations of the manat.

While nonperforming loan (NPL) levels remain high at around 12% of
total loans as of the end of 2018, Moody's also expects asset
quality to improve, driven by the ongoing economic recovery and
aided by the recently announced measures aimed at reducing the debt
burden of small, retail borrowers. The measures would reimburse
small borrowers for the large foreign exchange depreciation in 2015
and encourage banks to restructure long-overdue loans, costing less
than 2% of GDP but contributing to lower NPLs in the banking
system.

However, the sector remains fragile as confidence in the financial
system remains weak and dollarisation levels remain high. The
government extended its unlimited deposit guarantee on qualifying
deposits for another year through March 2020, which in Moody's view
demonstrates a deficit in confidence in banks. Dollarisation levels
are also among the highest in the region, with foreign currency
deposits accounting for 65% of total deposits as of the end of
February 2019, compared to foreign currency loans that account for
37% of total loans. This implies ongoing vulnerability of bank
balance sheets to local currency depreciation.

LIMITED PROSPECTS FOR ECONOMIC DIVERSIFICATION, INSTITUTIONAL
CONSTRAINTS LIMIT THE SHOCK ABSORPTION CAPACITY OF THE ECONOMY

Notwithstanding the growing net creditor position of the government
and the gradual reduction in banking sector risks, Azerbaijan's
economy and sovereign credit profile will remain highly exposed to
developments in the hydrocarbon sector. Limited prospects for
economic diversification and institutional challenges ranging from
relatively weak policy credibility and effectiveness to
uncertainties over the rule of law will continue to constrain the
shock absorption capacity of the economy.

Moody's does not expect a significant reversal in Azerbaijan's
reliance on its hydrocarbon sector over the medium term. The
hydrocarbon sector contributed more than 90% to total exports and
75% to industrial production in 2018, while hydrocarbon revenue
accounted for around 60% of consolidated government revenue in the
same year. The exposure to the hydrocarbon sector is among the
highest across hydrocarbon producers that Moody's rates. Lower
income levels and a smaller economy relative to other highly
concentrated hydrocarbon producers further limit Azerbaijan's
economic resilience.

The government has set its sights on economic diversification
through the 11 strategic roadmaps covering sectors such as
agriculture, financial services, heavy industry and manufacturing,
tourism, and transport and logistics. However, structural and
institutional challenges will, in part, hamper the government's
efforts, with diversification outcomes likely to vary across
sectors. These challenges include skills shortage, rule of law
uncertainty, the dominance of large holding companies, and lack of
access to the World Trade Organisation, which impedes the
development of goods trade beyond hydrocarbons. Moody's assesses
tourism and transport and logistics as having relatively greater
diversification potential, with benefits materialising only over a
long time.

Furthermore, policy credibility and effectiveness remain relatively
low compared to similarly rated peers and other major hydrocarbon
producers. Although the ongoing implementation of fiscal and
financial sector reforms, as well as more proactive central bank
communication through a monetary policy calendar, point to a modest
increase in institutional capacity, significant uncertainty remains
over the exchange rate regime and stability in the value of the
manat. Azerbaijan's exchange rate regime has been officially
floating since December 2015, but the value of the manat has been
very stable against the US dollar since early 2017. In Moody's
view, the lack of volatility in the manat raises questions over the
commitment of the central bank to a floating rate regime, while the
stability of the exchange rate may also result in complacency among
businesses and consumers and run counter to longer-term efforts to
allow the exchange rate to be a shock absorber for the economy.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects balanced risks to the ratings.

On the upside, ongoing fiscal and financial sector reforms may
shore up the resilience of the sovereign credit profile to shocks,
including lower oil prices, by lowering the government debt burden
and banking system risk beyond Moody's expectations, and contribute
to increasing policy credibility and effectiveness to a greater
extent than Moody's currently expects. Further increases to the
credibility and effectiveness of macroeconomic policies, including
exchange rate flexibility and the transition towards inflation
targeting, would also raise institutional strength.

On the downside, credit resilience and the commitment to and
effectiveness of reforms are still relatively recent and have not
been significantly tested in a less favourable environment, in
particular for oil prices. A sharp depreciation of the manat, while
not in Moody's baseline scenario, would also raise economic and
banking sector risks.

WHAT COULD CHANGE THE RATING UP

The rating would likely be upgraded if ongoing and further reforms,
including in macroeconomic and financial policies, looked likely to
raise policy credibility and effectiveness significantly and
provide more powerful buffers against shocks. This would likely be
reflected in part through prospects of a more rapid decline in the
government's debt burden and contingent liabilities than Moody's
currently expects. Over time, it would also probably involve marked
progress in economic diversification that would reduce the
economy's high dependence on hydrocarbons.

WHAT COULD CHANGE THE RATING DOWN

The rating would likely be downgraded if it became increasingly
likely that the fiscal reforms that support macroeconomic stability
and a sustained reduction in the debt burden lose momentum or
potentially reverse. Banking sector weaknesses resurfacing and
significantly raising contingent liability risks would also put
downward pressure on the rating. A sharp escalation of the conflict
in Nagorno-Karabakh that would weigh on economic activity and
government finances would also likely lead to a downgrade.

GDP per capita (PPP basis, US$): 17,529 (2017 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 0.1% (2017 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 7.9% (2017 Actual)

Gen. Gov. Financial Balance/GDP: -1.6% (2017 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: 4.1% (2017 Actual) (also known as
External Balance)

External debt/GDP: 37.3% (2017 Actual)

Level of economic development: Low level of economic resilience

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

On April 9, 2019, a rating committee was called to discuss the
rating of the Azerbaijan, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutional strength/ framework, have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.




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F R A N C E
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ANDROMEDA INVESTISSEMENTS: Moody's Assigns B2 Corp. Family Rating
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Moody's Investors Service has assigned a B2 Corporate Family Rating
to Andromeda Investissements (Andromeda) and a Probability of
Default Rating of B2-PD. Moody's has also assigned a provisional
(P)B2 rating to the proposed EUR358 million and EUR192 million
senior secured term loans (together EUR 550 million term loan) and
EUR100 million revolving credit facility (RCF) to be issued by
Andromeda Investissements. The outlook of Andromeda is stable.

Andromeda is controlled by Funds managed by CVC, a world leader in
private equity and credit with USD69 billion of assets under
management. The proposed loan issuance follows the agreed sale of
65.13% of April SA (April), a leading insurance broker in France,
from Evolem to Andromeda.

RATINGS RATIONALE

Corporate Family Rating

The B2 corporate family rating on Andromeda reflects April's strong
business profile and competitive position within the wholesale
broking business in France, its solid profitability and the
resilience and predictability of its earnings. Andromeda's rating
is constrained by a limited diversification outside the French
market and a weak financial profile with an expected Debt/EBITDA of
between 5x and 6x.

The group's strong business position reflects April's solid brand
name and the quality of its services. The group is a leader in
France's wholesale broking market thanks to an excellent track
record of product design, management and distribution. It also
benefits from a diversified retail-end customer base and a broad
distribution network. However, the group's business profile remains
constrained by its moderate size on a global basis, and its limited
international reach.

The group's profitability is relatively high with an EBITDA margin
(Estimate Moody's adjusted) at 23% in 2018. Going forward, Moody's
expects the group to maintain Moody's adjusted EBITDA margins
around 20%. Thanks to the long duration of its policies, the group
benefits from good earning recurrence and predictability. While the
net profit margin is expected to come under pressure due to
interest expenses, Moody's anticipates it to remain in positive
territory between 5% and 7%.

The rating is constrained by a weak financial profile which will
result from the leveraged buy-out. Moody's estimates a
debt-to-EBITDA ratio in the range of 5x-6x, (EBITDA - capex)
interest coverage in the range of 2x-3x, and a
free-cash-flow-to-debt ratio in the range of 4.5%-6% within the
next 18 months. These metrics include the rating agency's standard
accounting adjustments.

Provisional Ratings to Credit Facilities

Following the acquisition of Evolem's equity stake, Andromeda will
launch a tender offer to buy the remaining minority shareholdings
of April. Given the premium offered, Andromeda expects full
ownership of April. The (P)B2 ratings on Andromeda Investissements'
credit facilities (term loans and RCF) are provisional and based on
the expectation of full ownership. In this central scenario these
facilities will rank pari passu and will be secured by
substantially all assets of April S.A. and its guarantors.

As mentioned, the provisional (P)B2 credit facility ratings are
subject to Andromeda acquiring 100% of April. Upon closing of the
tender offer, expected during Q3 2019, and subject to a review of
the final credit documentation, Moody's will assign definitive
ratings. The definitive ratings may differ from the provisional
ratings.

If Andromeda were to own less than 100% of April, the RCF would be
issued at April level. In this scenario, which in Moody's view is
less likely, there would be structural subordination between
Andromeda's term loans and April's RCF, which would have priority
over collateral enforcement proceeds. While this would not impact
the CFR and PD rating, it would potentially result in the Andromeda
term loan rating being downgraded by a notch and the RCF rating
being upgraded by up to three notches.

WHAT COULD CHANGE THE RATING UP/DOWN

The current outlook of Andromeda is stable and reflects Moody's
expectation that April will maintain solid profitability and will
reduce financial leverage below 6x through EBITDA growth over the
next 12 to 18 months.

Factors that could lead to an upgrade of the CFR include:

  - Adjusted Debt-to-EBITDA ratio below 5x

  - (EBITDA-Capex) coverage of interest exceeding 6%

  - EBITDA margin increasing to above 25%

The factors that could lead to a downgrade of the CFR include:

  - Adjusted EBITDA increasing above 6x

  - FCF/Debt falling below 3%

  - (EBITDA-Capex) coverage of interest falling below 1.2x

While the (P)B2 ratings of the credit facilities are dependent on
the CFR, they will also be affected by their structural
subordination, with potentially significant changes as describe
above.

RATINGS LIST

Issuer: Andromeda Investissements

Assignments:

LT Corporate Family Rating, assigned B2

Probability of Default Rating, assigned B2-PD

Senior Secured Revolving Credit Facility, assigned (P)B2

Senior Secured Term Loan B1 Facility, assigned (P)B2

Senior Secured Term Loan B2 Facility, assigned (P)B2

Outlook Action:

Outlook assigned Stable


ANDROMEDA INVESTISSEMENTS: S&P Assigns Preliminary 'B' Rating
-------------------------------------------------------------
S&P Global Ratings assigns its preliminary 'B' ratings to Andromeda
Investissements and its proposed senior secured debt. The
preliminary recovery rating on the debt is '3', indicating S&P's
expectation of 60% recovery prospects in the event of a payment
default.

S&P said, "The rating reflects our view of funds managed by private
equity firm CVC's planned acquisition of APRIL S.A. and its
management team through holding company Andromeda Investissements.
Andromeda Investissements will initially acquire about 65% of
APRIL's share capital, triggering a mandatory tender offer for the
remaining about 35% held by minority interests, which we expect
Andromeda Investissements will also obtain, making CVC the 100%
owner. The offer price is EUR22 per share, with APRIL thus valued
at about EUR900 million. To finance the acquisition, Andromeda
Investissements plans to issue a senior secured term loan of up to
EUR550 million (of which EUR358 million will be drawn to acquire
about 65%, and up to EUR192 million will be additionally drawn to
acquire the remaining minority shares), and CVC will contribute a
further EUR385 million via equity, part of it as a shareholder
loan, which we consider as equity-like. The transaction is subject
to customary closing conditions and regulatory approval, and will
likely be completed by July 2019. While we expect Andromeda will
achieve 100% ownership of APRIL S.A., in the unlikely event that
its final stake is lower--at 65%-95%--we would expect no material
change to the adjusted leverage or the rating.

"Our assessment of APRIL's business risk profile reflects the
company's leading market position in France as a wholesale
insurance broker for a number of niche segments, primarily in
health insurance, credit protection, disability and death
protection, and some property and casualty niche products. In our
view, the group's market positions are supported by its
well-recognized brand, and by its large broker network, with 12,000
active brokers.

"In our view, APRIL benefits from its mix of end customers--small
businesses, senior citizens, and self-employed workers, as well as
the favorable underlying growth prospects of the group's key
segments, health and credit protection." A general increase in
healthcare spending, France's ageing population, and the increasing
share of private health insurance over public health insurance due
to political and regulatory decisions, benefit APRIL's health
insurance products. Furthermore, credit protection insurance growth
will likely be boosted by the "Bourquin" law, implemented in
January 2018, which allows creditors to change their insurance
policy on each anniversary date. This should support growth in
individual delegated credit protection insurance, APRIL's target
segment.

Furthermore, APRIL's good revenue visibility thanks to its
medium-to-long-term contracts (five years duration for health
insurance, on average, and eight years for credit protection), and
its well-diversified broker base and end-clients base, are
additional supports to the business risk profile, protecting the
group from significant volatility in revenue and earnings, even in
the case of client or distributor loss.

These strengths are, however, constrained by the group's relatively
small size compared with large international insurance brokers such
as Willis Towers Watson PLC (BBB/Stable/--) or Marsh & McLennan
Cos. (A-/Negative/A-2); and its narrow business scope, with a focus
on health and protection insurance products that represent close to
70% of its brokerage EBITDA. The insurance brokerage market is very
fragmented and competitive, with limited barriers to entry. APRIL's
relatively small size and niche focus could make the group
vulnerable to increased competition, should large international
peers decide to strengthen their presence in the French market.

S&P said, "In addition, we view APRIL's geographic concentration in
France, where it generates about 85% of revenues, as another
weakness. This concentration makes the group vulnerable to
regulatory developments affecting the French healthcare system and
credit protection insurance framework. Although recent regulatory
developments have supported APRIL's business, it has not always
been the case. For instance, the ANI law ("Accord National
Interprofessionnel") affected APRIL's health insurance activities
and profitability in 2016 by causing a decline in the individual
health insurance market, APRIL's target segment at that time.

"We assess APRIL's profitability differently from its peers due to
the group's specific business model as a wholesale broker. APRIL's
brokerage revenues include fixed commissions earned on premiums
volume and variable commissions on insurers' profits. However,
APRIL has to share these commissions with retail brokers who
operate as distributors for APRIL's products. This business model
offers more flexibility and more downside protection, in our view,
than if APRIL had to bear the labor costs of a large sales force,
or the fixed costs of a dense agency network. Although this model
has not translated into stronger profitability compared with
peers--APRIL has S&P Global Ratings-adjusted EBITDA margins of
13%-14%, compared with 20%-30% for Willis Tower Watson, Marsh &
McLennan, and Hyperion Insurance Group Ltd.(B/Stable/--)--it has
provided greater stability in EBITDA margins."

In addition to focusing on brokerage business, April has
historically retained some insurance risk, but a significant
portion of its insurance activities is reinsured. S&P said, "We
view the insurance business as supporting APRIL's brokerage core
business. APRIL mainly underwrites health and protection products
and some property and casualty risks. APRIL benefits from
structurally strong margins on these selected products. As such, in
our view, the insurance risk-carrying activities will support
stable cash flows generation in the near-term."

S&P said, "Our assessment of APRIL's financial risk profile
incorporates our expectation that the contemplated transaction will
result in adjusted debt to EBITDA of about 6.0x at year-end 2019.
While we forecast deleveraging in the next two years, in the
absence of discretionary spending or shareholder friendly actions,
our assessment is also influenced by the company's financial
sponsor (FS) ownership. As a result, we view the risk of
re-leveraging of APRIL's capital structure as high. We note that
CVC will provide equity, part of it in the form of a shareholder
loan. We have excluded this financing from our financial analysis,
including our leverage and coverage calculations, since we believe
the common equity financing and the non-common-equity financing are
sufficiently aligned. We believe the FS will not exercise any
credit rights associated with the shareholder loan.

"We anticipate improving EBITDA margins over the forecast period,
supported by the growth in new profitable businesses, divestment of
less profitable activities, and efficiency and IT improvements. We
view positively the company's good EBITDA-to-operating cash flow
conversion and its ability to generate free operating cash flow
(FOCF), supported by the low expenditure requirements given APRIL's
well invested platform. We forecast underlying annual FOCF
generation of EUR30 million-EUR40 million in 2019-2020, which
represents more than 5% of adjusted debt and provides good
prospects for deleveraging.

"Furthermore, the group's comfortable cash interest coverage ratios
help sustain the group's high leverage, in our view.

The final ratings will depend on the successful completion of the
proposed transaction--including Andromeda Investissements'
acquisition of 65%-100% of APRIL's share capital--and our receipt
and satisfactory review of all final transaction documentation.
Accordingly, the preliminary ratings should not be construed as
evidence of final ratings. If S&P Global Ratings does not receive
final documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, it reserves the
right to withdraw or revise its ratings. Potential changes include,
but are not limited to, use of loan proceeds, maturity, size and
conditions of the loans, financial and other covenants, security,
and ranking.

S&P said, "The stable outlook reflects our view that APRIL will
continue to see strong demand for its brokerage services over the
next 12 months, supporting sound organic growth. It also
incorporates our view that the company will maintain resilient
EBITDA margins, resulting in adjusted debt to EBITDA of 5.5x-6.0x,
while generating positive FOCF.

"We could lower the ratings if APRIL experienced a material decline
in profitability or higher volatility in margins, due to unexpected
operational issue or adverse regulatory development, and if FOFC
generation deteriorated and turned negative on a prolonged basis.
Additionally, if funds from operations (FFO) cash interest coverage
reduced to below 2.0x due to a weakening of operating performance,
we would consider lowering the rating.

"We could consider an upgrade if APRIL improved its S&P Global
Rating-adjusted debt to EBITDA to less than 5.0x, in line with a
higher financial risk profile assessment. A positive rating action
would also depend on shareholders' commitment to demonstrate a
prudent financial policy and maintain credit metrics at this
level."


EUROPCAR MOBILITY: S&P Raises ICR to 'BB-', Outlook Stable
----------------------------------------------------------
S&P Global Ratings upgraded France-based Europcar Mobility Group to
'BB-' from 'B+' and raised its issue ratings on the group's debt.

S&P said, "At the same time, we are assigning our 'B' issue rating
to the proposed EUR450 million senior notes due 2026. The recovery
rating is '6', indicating our expectation of negligible recovery in
the event of a payment default. We will withdraw the rating on the
EUR600 million senior notes due 2022 when the transaction is
completed."

The upgrade follows Europcar Mobility Group's progress integrating
Goldcar and Buchbinder, the two sizable acquisitions made at the
end of 2017, as well as the group's realization of nearly one-third
of the EUR40 million cost synergies expected by 2020. The group
reported sound operating performance in 2018, with 22% revenue
growth (3.4% pro forma for the 2017 acquisitions) and an adjusted
EBIT margin of 12.9%. These results translated into moderately
stronger credit metrics, notably FFO to debt of 15% and EBIT
interest coverage of 1.7x, up from 13% and 1.4x, respectively, in
2017. S&P's base-case scenario envisages consistent credit metrics
over the next year, despite the industry's cyclicality, capital
intensity, and exposure to event risks, as well as the group's
ambitious growth strategy.

S&P said, "We believe Europcar Mobility Group's margins will
moderately improve over the next 12-14 months, particularly on the
back of the group's focus on the faster-growing, higher-margin,
low-cost segment, as well as the vans and trucks segment segment
(mainly supported by the acquisition of GoldCar and Buchbinder),
and ongoing strategy to attract business customers that need longer
holding periods. This is on top of additional synergies that will
emerge, including, among others, better fleet-purchasing power
(higher discounts and lower interest) and lower overheads. We also
factor in Europcar Mobility Group's cost-efficiency measures, which
include network rationalization and improved efficiency in stations
supported by digital and technology.

"Furthermore, we acknowledge Europcar Mobility Group's focus on
urban mobility solutions, as it seeks to buffer itself from
potential disruptive changes in the industry. This is mostly driven
by the expectation that people in cities are choosing to swap the
costly responsibility of car ownership for the convenience of
on-the-spot mobility solutions, such as chauffeur services, car
sharing, and peer-to-peer car sharing.

"We continue to see Europcar Mobility Group benefitting from a
solid market position and brand recognition in its main markets of
operations, which remain fragmented. We expect Europcar Mobility
Group will retain its leading position in the car mobility and
rental business, supported by its expanding operating scale and
geographic presence in more than 18 countries (and more than 130
franchised countries). We see its operational mix as balanced
between business (40% of revenues) and leisure (60%), and between
airport (44% of revenues) and off-airport (56%) locations."

The off-airport presence is notably higher than that of its U.S.
peers (both Hertz and Avis Budget generate only about 30% of
revenues from off-airport locations), but lower than other peers,
such as Car Inc., which generates about 80% of its revenues from
off-airport sites; Localiza, about 70%. S&P notes the off-airport
market is more stable, with relatively consistent demand throughout
the year, and is generally less cyclical with higher
profitability.

S&P said, "We also consider that Europcar Mobility Group has solid
relationships and good fleet diversification in terms of vehicle
manufacturers (Volkswagen, 27%; PSA, 20%; Fiat Chrysler, 14%;
Renault-Nissan-Mitsubishi, 10%; and others, 29%) in relation to its
significant buyback agreements (about 90% of fleet). The latter
compares favorably with its U.S. peers, which are more exposed to
second-hand markets. We believe the group enjoys good operational
flexibility and efficiency, with a solid average fleet utilization
rate of 76.1% in 2018.

"Europcar Mobility Group's business risk is constrained by our view
of the price-competitive, cyclical, and capital-intensive nature of
the car rental industry. Additionally, we incorporate the car
rental industry's relatively short lease terms (both in absolute
terms and as a percentage of an automobile's economic life)
compared with other peers in the operating leasing industry.

"We think Europcar has limited business and geographic diversity
outside of Europe, which accounts for about 95% of revenues. In
addition, we view Europcar Mobility Group as exposed to
low-probability, high-impact events, such as severe weather, air
traffic disruptions, and geopolitical shocks, which can impact all
travel-related industries."

Moreover, the group faces a possible threat from ride-sharing
services. S&P expects this risk will intensify over time but
recognize the group's efforts of investing in those segments
through its New Mobility division.

S&P said, "We also note that Europcar Mobility Group is currently
facing potential legal claims on inflating repair bill costs in the
U.K. that could cost the group about EUR45 million. This amount is
fully provisioned in the group's accounts since 2017. We will
monitor the evolution and possible consequences of such claims and
possible contagious effect within the industry. We understand that
Europcar Mobility Group's operating performance in the U.K. was
back to normal in 2018, after weak trading in 2017, but we remain
mindful that in the situation of a no-deal Brexit the group could
suffer from higher inflation and somewhat lower travelling from the
U.K. to South Europe during the summer period.

"Although Europcar Mobility Group has good cost management and
sound interest-servicing capability, supporting its healthy EBIT
interest coverage ratio, we acknowledge the weakness of its
FFO-to-debt ratio compared with rated peers.

"The stable outlook reflects our expectation that Europcar Mobility
Group will generate stable EBIT margin of 13%-14% over the next 12
months, sustaining FFO to debt of about 15%, EBIT interest coverage
of about 1.8x, and debt to capital of 84%-85%. This is despite the
group's ambitious growth plans and shareholder returns.

"We could lower the ratings if a decline in utilization rates or
stiffening price competition weakened the group's margins and cash
flows. A downgrade trigger could be Europcar Mobility Group's EBIT
interest coverage declining below 1.3x or its FFO to debt falling
below 12%. Rating pressure could also arise if we observed that the
financial policy was becoming more aggressive, for instance through
additional debt-funded acquisitions or increased shareholder
remuneration.

"Although unlikely over the next 12 months, we could raise the
ratings on Europcar Mobility Group if better-than-expected
earnings, due to stronger volumes or pricing, pushed FFO to debt
above 20% and debt to capital below 82% sustainably, while EBIT
interest coverage remained comfortably above 1.3x."


FINANCIERE GROUPE: S&P Assigns 'B' Long-Term ICR, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings noted that infrastructure investment firms
Asterion Industrial and Mirova have each acquired a 40% stake in
Proxiserve via Financiere Groupe Persea.  Proxiserve's management
retained a 20% stake. Finaciere Groupe Persea has issued a EUR335
million seven-year senior secured term loan to fund the acquisition
and repay Proxiserve's outstanding debt.

S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Financiere Groupe Persea and its 'B' issue rating and '3'
recovery rating to the EUR335 million senior secured term loan B.

The rating action follows the acquisition of 80% of Proxiserve by
infrastructure investment firms Asterion Industrial and Mirova. To
finance the transaction, Financiere Groupe Persea issued a EUR335
million seven-year senior secured term loan, and the debt package
also includes a EUR60 million 6.5-year senior secured revolving
credit facility, undrawn at closing.

Proxiserve's main activities combine the high-margin,
capital-intensive sub-metering business (65% of consolidated
EBITDA) and low-margin, capital expenditure (capex)-light
maintenance services and other activities (35% of EBITDA).

Proxiserve's strong niche market positions in heating and water
sub-metering in France support the group's business risk profile.
Proxiserve estimates its market shares at 25%, behind Ista. This
market benefits from a favorable regulatory environment,
characterized by the legal requirement for sub-metering in
multi-tenant buildings. In contrast with many other European
countries, France has only recently implemented European directives
relating to heating sub-metering, resulting in the current
underpenetrated market. S&P said, "We expect the Energy Transition
Law, along with various decrees that have passed since 2015, will
lead to accelerated expansion in heating sub-metering. We consider
that Proxiserve is in a favorable position to capture part of this
expansion and maintain its market position as the second-largest
player in France. We consider that there are significant barriers
to entry in the sub-metering market, characterized by long-term,
10-year contracts, high capex requirements, and few incentives for
customers to switch provider given the mission-critical nature and
relatively low cost impact of sub-metering in total tenant costs.
We also view positively Proxiserve's solid reputation, low churn
rates, and its focus on private joint properties, a segment that
generates higher margins and benefits from more favorable contract
terms than those with social landlords. All of this supports high
revenue and EBITDA visibility, with 95% of 2019 sub-metering sales
already contracted."

S&P said, "However, we think Proxiserve's less profitable
maintenance activities, the group's absolute small size, the
exclusive focus on the French market, and the relatively high capex
requirements in sub-metering all constrain the group's business
risk profile. With a reported consolidated EBITDA of EUR51 million
in 2018, Proxiserve is among the smallest rated entities in
business services. In addition, the group's revenues are
concentrated exclusively on France, which compares unfavorably with
peers--Techem, for example, operates in multiple countries. We
consider that the lack of scale and lack of geographic
diversification could make the group vulnerable to unexpected
regulatory or technological changes in France. Furthermore,
although sub-metering activities generate EBITDA margins of above
50%, the group's low-margin maintenance activities, which represent
about 70% of consolidated revenue, lower the group's reported
consolidated margins to 12%-13%. In addition, although Proxiserve
has strong market positions in B2B maintenance, we view this market
as highly fragmented and competitive, with low barriers to entry
and limited pricing power." This is mitigated by the fact that the
market is not very attractive to new entrants, given the business'
weak profitability, and that Proxiserve is one of few players
offering national coverage.

That said, Proxiserve's business mix should provide cash flow
resilience. This is because the low-margin but capex-light
maintenance activities will support cash flow generation while the
group invests heavily in its sub-metering activities to capture
market expansion in the next couple of years. In addition, the
group has demonstrated its ability to steadily improve margins in
the past six years, which also supports S&P's assessment of the low
volatility of the group's profitability.

S&P said, "We assess Proxiserve's financial risk profile as highly
leveraged. We anticipate that the S&P Global Ratings-adjusted debt
to EBITDA will be about 5.5x-6.0x at the end of 2019, while the
group's plan to spend a significant amount of development capex to
meet the demand for new heating sub-meters in the next two years
will result in very weak free operating cash flow (FOCF). We expect
Proxiserve's debt at the end of 2019 to include the new EUR335
million term loan B, about EUR16 million in operating lease
obligations, and EUR13 million in pension liabilities. We project
that the group's surplus cash balance will be close to zero in the
next two years.

"We consider Asterion Industrial and Mirova to be infrastructure
funds that, along with management, have a long-term investment
strategy for Proxiserve. The new investors' expected holding period
of seven to 10 years and the significant common equity contribution
(close to 60%) support this assessment. Despite a high transaction
closing leverage, we understand the new investors intend to
prioritize deleveraging and organic growth over dividend
distributions and acquisitions. We therefore assess the group's
financial policy as neutral.

"The final ratings are in line with the preliminary ratings we
assigned on Feb. 21, 2019.

"The stable outlook reflects our view that Proxiserve will maintain
its strong positions in the French sub-metering and boiler
maintenance services market, while enjoying 4%-6% revenue increases
and improving EBITDA margins. The expected strong demand for heat
sub-metering devices in the next couple of years will support
revenue increases and require large investments, so we expect FOCF
will be close to negative in 2019 and 2020, while adjusted debt to
EBITDA will remain at 5.0x-6.0x.

"We could lower the rating if the group faced significant EBITDA
contraction or increase in volatility in EBITDA margins due to
unexpected adverse operating developments, causing funds from
operations cash interest coverage to reduce to below 2.0x on a
sustained basis. In addition, if we expected FOCF to turn
materially negative and to remain so after the 2019-2020 investment
phase, we could consider a negative rating action. Likewise, we
could lower the ratings if liquidity tightened or material
debt-financed acquisitions reflected a more aggressive financial
policy than we currently expect.

"We could consider upgrading Proxiserve if the group experienced a
more rapid and sustained increase in EBITDA than we currently
forecast, resulting in adjusted debt to EBITDA falling below 5.0x,
coupled with sustainable debt reduction. Under such a scenario, we
would also expect the group's FOCF generation to improve, with
adjusted FOCF to debt approaching 5% following the sub-metering
investment phase."

Proxiserve provides installation, maintenance, and sub-metering
services for heating and water equipment in joint properties and
public collective housing in France. Its maintenance services
target B2B and B2C customers, and include individual boilers and
heating systems, plumbing and multi-services for other equipment
(such as doors, window frames, electricity, and locksmithing).
Proxiserve also installs and maintains electric vehicle charging
stations. Its sub-metering activity comprises installing, renting,
maintaining, and reading the group's own sub-meters in collective
dwellings. Finally, through its Edenkia brand, the group also
provides energy solutions--electricity supply, sub-metering, and
billing services--to office buildings, hotels, and logistics
platforms.




=============
I R E L A N D
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ADIENT PLC: S&P Assigns BB- Rating on $750MM Term Loan B
--------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '2'
recovery rating to Adient PLC's $750 million term loan B and $750
million senior secured notes. The '2' recovery rating indicates
S&P's expectation for substantial (70%-90%; rounded estimate: 75%)
recovery in the event of a payment default.

Adient is refinancing its $1.2 billion term loan A with the new
term loan B due in 2024 and new senior secured notes due in 2026.
At the same time, it is refinancing its $1.5 billion cash flow
revolver with a $1.25 billion asset-based revolving credit
facility. We will not rate the asset-based revolver; moreover, we
will withdraw the ratings on the existing cash flow revolver and
term loan A when the refinancing is complete.

The company is undertaking this refinancing to eliminate its
financial covenant, include a prepayable component for repayment
flexibility, and limit near-term maturities and amortization, among
other things.

ISSUE RATINGS - RECOVERY ANALYSIS

Key analytical factors

-- S&P's simulated default scenario anticipates a default in 2023
because of continued weak auto production in Europe and a
combination of the following factors in the U.S. auto industry: a
sustained economic downturn reducing customer demand for new
automobiles; intense pricing pressure brought about by competitive
actions by other auto suppliers and raw material vendors; and the
potential loss of one or more key customers.

-- S&P expects these conditions to reduce Adient's volumes,
revenue, gross margins, and net income, which would reduce
liquidity and operating cash flow. S&P also assumes about $140
million in accounts receivable factoring on an ongoing basis.

Simulated default assumptions

-- Simulated year of default: 2023
-- EBITDA at emergence: $578 million
-- EBITDA multiple: 5x

Simplified waterfall

-- Net enterprise value (after 5% administrative costs): $2.743
billion

-- Valuation split (obligors/nonobligors): 30%/70%

-- Priority claims: $138 million

-- Value available to first-lien debt claims
(collateral/noncollateral): $1.103 billion/$0

-- Secured first-lien debt claims: $1.53 billion

    --Recovery expectations: 70%-90% (rounded estimate: 75%)

-- Total value available to unsecured claims: $540 million

-- Senior unsecured debt/pari passu unsecured claims: $2.085
billion/$427 million

    --Recovery expectations: 10%-30% (rounded estimate: 20%)

All debt amounts include six months of prepetition interest.
Collateral value equals assets pledged from obligors after priority
claims plus equity pledged from nonobligors after nonobligor debt.

  RATINGS LIST

  Adient PLC

   Issuer Credit Rating         B+/Negative/--

  New Rating

   Senior Secured                
   $750 mil Sr Notes due 2026   BB-
    Recovery Rating             2 (75%)
   $750 mil Term Ln B due 2024  BB-
    Recovery Rating             2 (75%)

  Ratings Unchanged

  Adient US LLC
  Adient Global Holdings Ltd.  
   Senior Unsecured             B
    Recovery Rating             5 (20%)
   Senior Secured               BB
    Recovery Rating             1 (90%)

  Adient US LLC
   Senior Secured               BB
    Recovery Rating             1 (90%)




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

PARMALAT SPA: Italy's Supreme Court Upholds Citibank Case Ruling
----------------------------------------------------------------
Domenico Lusi at Reuters reports that Italy's Supreme Court has
rejected an appeal by Parmalat against a lower court ruling that it
pay US$431 million in damages to Citibank in a case stemming from
the dairy group's bankruptcy more than 15 years ago.

Parmalat, now owned by France's Lactalis, collapsed in 2003 after
the discovery of a EUR14 billion (US$15.8 billion) hole in its
accounts, Reuters recounts.

In 2008, the Superior Court of New Jersey ordered Parmalat to pay
the damages to Citibank, rejecting its claim that Citibank played a
part in thefts that had helped to bankrupt it, Reuters relates.

In 2014, a court in Bologna upheld the ruling by the U.S. court
that Parmalat pay the amount to Citi, Reuters discloses.

                      About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that can
be stored at room temperature for months.  It also has about 40
brand product lines, which include yogurt, cheese, butter, cakes
and cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices.

Parmalat S.p.A. and its Italian affiliates filed separate petitions
for Extraordinary Administration before the Italian Ministry of
Productive Activities and the Civil and Criminal District Court of
the City of Parma, Italy on Dec. 24, 2003.  Dr. Enrico Bondi was
appointed Extraordinary Commissioner in each of the cases.  The
Parma Court declared the units insolvent.

On June 22, 2004, Dr. Bondi, on behalf of the Italian entities,
sought protection from U.S. creditors by filing a petition under
Sec. 304 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No.
04-14268).

Parmalat's U.S. operations filed for Chapter 11 protection on Feb.
24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary Holtzer, Esq.,
and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP,
represented the U.S. Debtors.  When the U.S. Debtors filed for
bankruptcy protection, they reported more than US$200 million in
assets and debt.  The U.S. Debtors emerged from bankruptcy on April
13, 2005.

Three special-purpose vehicles established by Parmalat S.p.A. --
Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food
Holdings Ltd. -- commenced separate winding up proceedings before
the Grand Court of the Cayman Islands.  Gordon I. MacRae and James
Cleaver of Kroll (Cayman) Ltd. were appointed liquidators in the
cases.  On Jan. 20, 2004, the Liquidators filed a Sec. 304 petition
(Bankr. S.D.N.Y. Case No. 04-10362).  Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at
Janvey, Gordon, Herlands Randolph, represented the Finance
Companies in the Sec. 304 case.

The Honorable Robert D. Drain presided over the Parmalat Debtors'
U.S. cases and Sec. 304 cases.  In 2007, Parmalat obtained a
permanent injunction in the Sec. 304 cases.




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

NYRSTAR NV: Trafigura to Take Over Firm as Part of Rescue Deal
--------------------------------------------------------------
Mark Burton and Andy Hoffman at Bloomberg News report that
Trafigura Group Ltd. will take control of Nyrstar NV, Europe's
biggest zinc smelter, as part of a deal to restructure the
struggling company's debt and steer it away from bankruptcy.

According to Bloomberg, under the agreement, Trafigura -- Nyrstar's
main shareholder as well as a top supplier, customer and financier
-- offered a package of its own debt securities to Nyrstar's
creditors in exchange for them writing off debt.


STORM BV 2019-I: Moody's Assigns Ba1 Rating on Class E Notes
------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to Notes
issued by STORM 2019-I B.V.:

EUR1,950,000,000 Senior Class A Mortgage-Backed Notes 2019 due
2066, Definitive Rating Assigned Aaa (sf)

EUR44,400,000 Mezzanine Class B Mortgage-Backed Notes 2019 due
2066, Definitive Rating Assigned Aa1 (sf)

EUR39,900,000 Mezzanine Class C Mortgage-Backed Notes 2019 due
2066, Definitive Rating Assigned Aa3 (sf)

EUR39,900,000 Junior Class D Mortgage-Backed Notes 2019 due 2066,
Definitive Rating Assigned A2 (sf)

EUR20,900,000 Subordinated Class E Notes 2019 due 2066, Definitive
Rating Assigned Ba1 (sf)

STORM 2019-I B.V. is a five years revolving securitisation of Dutch
prime residential mortgage loans. Obvion N.V. (not rated) is the
originator and servicer of the portfolio. At closing, the portfolio
consists of loans extended to 10,689 borrowers with a total
principal balance of EUR2.07 billion (net of savings policies).

RATINGS RATIONALE

The definitive ratings on the Notes take into account, among other
factors (i) the performance of previous transactions launched by
Obvion N.V.; (ii) the credit quality of the underlying mortgage
loan pool; (iii) the replenishment criteria; and (iv) the initial
credit enhancement provided by subordination, excess spread, and
the reserve fund.

The expected portfolio loss of 0.70% and the MILAN Credit
Enhancement (MILAN CE) of 7.80% serve as input parameters for the
lognormal loss distribution in Moody's cash flow model.

The key drivers for the portfolio's expected loss of 0.70% are (i)
the availability of the NHG-guarantee for 5.23% of the loan parts
in the pool at closing, which can reduce during the replenishment
period to 3.00%; (ii) the performance of the seller's precedent
transactions; (iii) benchmarking with comparable transactions in
the Dutch RMBS market; (iv) the current economic conditions in the
Netherlands; and historical recovery data of foreclosures received
from the seller. The expected loss is in line with preceding STORM
transactions and with other Dutch prime RMBS securitisations.

The MILAN CE of 7.80% for this portfolio is based on (i) the low
percentage of the NHG-guaranteed loans; (ii) the replenishment
period of five years that allows for the purchase of additional
loans; (iii) Moody's calculated weighted average current
loan-to-foreclosure-value (LTFV) of 80.41%, slightly lower than
LTFVs observed in other Dutch RMBS transactions; (iv) the
proportion of interest-only loan parts (60.15%); and (v) the
weighted average seasoning of 3.88 years. Moody's notes that the
unadjusted weighted average current LTFV is 79.58%. The difference
is due to Moody's treatment of property values that use valuations
provided for tax purposes (the so-called WOZ valuation). The WA
seasoning based on the oldest origination dates in Obvion's system
is 7.46 years. Due to some of these characteristics the MILAN CE is
higher than in most preceding STORM revolving transactions.

The risk of deteriorating pool quality through the addition of
loans is partly mitigated by the replenishment criteria, like the
weighted average CLTMV of all the mortgage loans after
replenishment does not exceed 83.00% and the minimum weighted
average seasoning is at least 40 months. Purchase of additional
loans stops, if (i) any principal deficiencies remain outstanding
at a payment date, (ii) loans more than 3 months in arrears exceed
1.5%, or (iii) cumulative losses exceed 0.40%.

The transaction benefits from a non-amortising reserve fund, funded
at 1.01% of the total Class A to D Notes' amount at closing,
building up to 1.30% by trapping available excess spread. Credit
enhancement for Class A Notes is provided by 5.99% subordination,
the non-amortising reserve fund, and excess spread.

The transaction also benefits from excess spread of 0.50% provided
through the swap agreement. The swap counterparty is Obvion N.V.
and the back-up swap counterparty is Rabobank (Aa3/P-1 &
Aa2(cr)/P-1(cr)). Rabobank is obliged to assume the obligations of
Obvion N.V. under the swap agreement in case of Obvion N.V.'s
default. For liquidity purposes, the transaction also benefits from
an amortising cash advance facility of 2.0% of the outstanding
principal amount of the Notes (including the Class E Notes) with a
floor of 1.45% of the outstanding principal amount of the Notes
(including the Class E Notes) as of closing.

Principal Methodology

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
March 2019.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

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

Factors that may lead to an upgrade of the Notes include better
than expected portfolio performance or a deleveraging of the
issuer's liability structure.

Factors that may lead to a downgrade of the Notes include,
significantly higher losses compared to its expectations at
closing, due to either a significant, unexpected deterioration of
the housing market and the economy, or performance factors related
to the originator and servicer.




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

MARI EL: Fitch Affirms LT IDRs at B & Senior Unsec. Rating at BB
----------------------------------------------------------------
Fitch Ratings has affirmed the Russian Republic of Mari El's
Long-Term Foreign- and Local-Currency Issuer Default Ratings at
'BB'. The Outlook is Stable. The agency has also affirmed the
republic's Short-Term Foreign-Currency IDR at 'B'. Mari El's
outstanding senior unsecured debt ratings have been affirmed at
'BB'.

Fitch assesses Mari El's standalone credit profile at 'bb', which
reflects a combination of a Weaker assessment of the republic's
Risk Profile and a 'aa' assessment of debt sustainability. The SCP
also factors appropriate rated peers' positioning. Fitch does not
apply any asymmetric risk or extraordinary support from upper-tier
government, which results in the 'BB' IDR.

Like other Russian local and regional government Fitch classifies
Mari El as a Type B LRGs, which are required to cover debt service
from cash flow on an annual basis. Mari El is located in the
eastern part of European Russia. According to budgetary regulation,
Mari El can borrow on the domestic market. The budget accounts are
presented on a cash basis while the law on a budget is approved for
three years.

KEY RATING DRIVERS

Revenue Robustness Assessed as Weaker

Mari El's socio-economic profile has historically been weak, with
GRP per capita at about USD3,700 (2018 preliminary), which
restricts the republic's tax base. Together with the overall
sluggish national economic environment, this leads to limited
prospects for growth of republic's tax base. In 2018, the Mari El's
GRP increased by 1.0% yoy (issuer estimation) after a decline of
5.3% in 2016 and 2.0% growth in 2017. The republic's government
expects economic growth of about 1.5% yoy in 2019-2020.

The republic's revenue sources are composed of taxes (56% of total
revenue), most of which are exposed to economy fluctuations.
Another important revenue source is transfers from the federal
budget, which contributed 42% of total revenue in 2018. The latter
is almost equally split between formula-based general purpose
transfers and other intergovernmental grants, which are exposed to
some volatility. In general, intergovernmental grants do not
sufficiently enhance the republic's fiscal capacity to cover
expenditure, which is evident from the track record of high
deficits in 2012-2015.

Revenue Adjustability Assessed as Weaker

Fitch assesses Mari El's ability to generate additional revenue in
response to possible economic downturns as limited. The federal
government holds significant tax-setting authority, which limits
Russian LRGs' fiscal autonomy and revenue adjustability. The
regional governments have limited rate-setting power over three
regional taxes: corporate property tax, gambling tax and transport
tax. The proportion of these taxes in the republic's budget
revenues was about 15.5% in 2018. Russian regions formally have the
rate-setting power over those taxes, although the limits are set in
the National Tax Code.

Expenditure Sustainability Assessed as Midrange

The republic's control of expenditure is prudent, as evidenced by
the track record of the spending dynamic being close to that of
revenue during the last three years and Fitch expects this policy
to be continued in the medium term. Like other Russian regions Mari
El has responsibilities in education, healthcare, some types of
social benefits, public transportation and road construction.
Education and healthcare spending that is of counter- or
non-cyclical nature accounted for 31% of total expenditure in 2018.
In line with other Russian regions, Mari El is not required to
adopt anti-cyclical measures, which would inflate expenditure
related to social benefits in a downturn. At the same time, the
republic's budgetary policy is dependent on the decisions of the
federal authorities, which could negatively affect the dynamic of
expenditure.

Expenditure Adjustability Assessed as Weaker

Like most Russian regions, Fitch assesses Mari El's expenditure
adjustability as low. The vast majority of spending
responsibilities are mandatory for Russian subnationals, which
leads to inflexible items dominating the expenditure structure.
Consequently, the bulk of expenditure could be difficult to cut in
response to potential revenue shrinking. Fitch notes that the
republic retains limited flexibility to cut or postpone capital
expenditure in case of stress, as capex has already reduced below
9% in 2018 from the high level in 2015-2017 due to the republic's
intention to narrow the deficit. The ability to cut expenditure is
also constrained by the low level of per capita expenditure
compared with national and international peers.

Liabilities and Liquidity Robustness Assessed as Midrange

According to national budgetary regulation, Russian LRGs are
subject to debt stock limits and new borrowing restrictions as well
as limits on annual interest payments. Derivatives and floating
rates are prohibited for LRGs in Russia. The limitations on
external debt are very strict and in practice no Russian region
borrows externally. Mari El follows a prudent debt policy reflected
by its moderate debt level, which reduced to 53.5% of current
revenue in 218 from a peak of 64.4% in 2016. The debt structure is
well-balanced between market borrowings in the form of bank loans
and domestic bonds (in total 54%) and low-cost loans from the
federal budget (46%). The republic is not exposed to material
off-balance sheet risks.

Liabilities and Liquidity Flexibility Assessed as Midrange

Mari El's liquidity flexibility is supported by the liquidity
instruments in the form of a federal treasury line to cover
intra-year cash gaps. This treasury facility amounted to
one-twelfth of annual budgeted revenue (excluding intergovernmental
transfers) and can be rolled over during the financial year. The
counterparty risk associated with the liquidity providers is
'BBB-', which limits the assessment of this risk factor to
Midrange.

Debt Sustainability Assessment: 'aa'

The 'aa' assessment is derived from a combination of a sound
payback ratio (net adjusted debt/operating balance), which,
according to Fitch's rating case, will remain in line with a 'aa'
assessment, a moderate fiscal debt burden (net adjusted debt to
operating revenue, corresponding to a 'aaa' assessment and a weak
actual debt service coverage ratio (ADSCR: operating balance to the
debt service, including short-term debt maturities) at the 'b'
level.

According to Fitch's rating case, the payback ratio, which is the
primary metric of the Debt Sustainability assessment for Type B
LRGs, will remain between 5x and 9x over the five-year projected
period. For the secondary metrics, Fitch's rating case projects
that the fiscal debt burden will remain below 50% during the
majority of the forecast period, while the ADSCR will remain below
1x in 2020-2023.

KEY ASSUMPTIONS

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

  - Tax revenue growth in line with local economy nominal growth

  - Operating expenditure growth of in line with inflation

  - Capital expenditure growth in line with local economy growth

  - Deficit is covered by new debt and interest expenditure
    increasing respectively

Fitch's rating case envisage the following stress compared with the
base case:

  - Stress on corporate income tax by -2pp annually to
    reflect historical volatility

  - Stress on current transfers made by 1pp compared with base
    case growth to reflect higher inflation in the rating case

RATING SENSITIVITIES

A positive reassessment of the Mari El's risk profile, particularly
due to expenditure flexibility improvement, could be positive for
the ratings, provided debt sustainability metrics remain
unchanged.

Improvement of the republic's debt payback to close to five years
according to Fitch's rating case on a sustained basis could lead to
an upgrade.

The deterioration of the republic's debt payback toward nine years
according to Fitch's rating case on a sustained basis could lead to
a downgrade.




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

MANISA METROPOLITAN: Fitch Affirms 'BB/BB+' IDRs, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed Turkey's Manisa Metropolitan
Municipality's Long-Term Foreign and Local Currency Issuer Default
Ratings at 'BB' and 'BB+', respectively. with Negative Outlooks.
Its National Long Term Rating is affirmed at 'AA(tur)' with a
Stable Outlook.

Manisa's standalone credit profile is assessed at 'bb+', which
reflects a combination of its weaker assessment of the city's risk
profile and a 'aa' assessment of debt sustainability. The SCP also
factors in a comparison of Manisa with its peers. The SCP is not
affected by any asymmetric risk or extraordinary support from the
central government. Manisa's Long-Term Foreign Currency IDR is
capped by Turkey's sovereign Foreign Currency IDR (BB/Negative).

As with other Turkish Local Government, Manisa is classified by
Fitch as a type B LG, under which the city covers debt service from
its cash flow on an annual basis. Manisa is located in western
Turkey in the Aegean Region at the border to the Metropolitan
Municipality of Izmir. Following the implementation of Law 6360 the
province gained the metropolitan municipality status in 2014 and
its boundaries (1,231.8 sq. km) have been enlarged to include
provincial boundaries. Manisa's socio-economic profile has
historically been fairly robust, although GDP per capita was 8.5%
below the national average (2017).

Fitch does not expect notable changes to the city's socio-economic
profile. According to budgetary regulation Manisa can borrow on
both domestic and external markets. Its budget accounts are
presented on a modified accrual basis while law on budgets is
approved for a two-year period.

KEY RATING DRIVERS

Revenue Robustness Assessed as Weaker

Manisa's tax base is well-diversified and moderate in size with
fairly robust growth prospects, but which Fitch expects to be
adversely affected by a continued negative operating environment.
In 2017 the city's real GDP 7.1% growth was slightly below the
national level of 7.4%, in contrast to 2016 when the local economy
outperformed national growth by almost 1%. Nevertheless, due to the
continuing weak national economy, Fitch conservatively forecasts
the local economy to underperform the national economy, which is
also partly reflected in Manisa's 2019 budgetary forecast.

Revenue is largely composed of the city's share in tax revenue
collected and allocated by the central government (52% of total
operating revenue). Another important revenue source is transfers
from the central government, which contributed 24% of operating
revenue in 2018, although the robustness of such revenue should be
viewed against the sovereign 'BB' rating. Fitch expects current
transfers to be stable, albeit at a slower rate than their
historical average, over the next five years. Non-tax revenue, such
as fees, fine and other operating revenue, is also an important
revenue driver, as LRGs have more discretionary power for
rate-setting in comparison with local taxes, which are pre-defined
by the central governments. In 2018, 20.8% of operating revenue was
generated by non-tax revenue.

Revenue Adjustability Assessed as Weaker

Fitch assesses Manisa's ability to generate additional revenue in
response to possible economic downturns as limited. Within the
unitary administrative structure of the government, the central
government is the rate-setting authority, which significantly
limits Turkish LGs' fiscal autonomy and revenue adjustability. LGs
have very limited rate-setting power over local taxes such as
property tax, natural gas and electricity consumption tax,
advertisement and promotion, fire insurance and entertainment tax.

Expenditure Sustainability Assessed as Midrange

Control over expenditure is demonstrated in a convergence of
spending dynamic with close to that of revenue during the last
three years and Fitch expects this policy to continue in the medium
term. The sharp deviation of operating expenditure (opex) from its
mean during 2014-2015 was mainly driven by a change of the city's
responsibilities following Manisa's new metropolitan status and by
increasing inflation. Nevertheless, Manisa was able to control opex
growth below that of operating revenue in 2018, even in a
pre-election period. This is reflected in a robust average
operating margin of 45%.

As with other Turkish metros, Manisa is responsible for the
provision of essential and large infrastructure investments such as
water and sewerage services, public transport, construction,
maintenance and cleaning of roads that connect neighborhoods to
metropolitan municipality districts. It is also responsible for the
discretionary provision of health centers for elder and disabled
persons, construction and maintenance of shrines, and culture and
sports facilitates for metropolitan areas. In line with other
Turkish metros, Manisa has a strong investment profile, making
capital expenditure its largest single expense. At end-2018,
Manisa' share of capital expenditure constituted 59% of
metropolitan municipalities' total expenditure. Manisa is not
required to adopt anti-cyclical measures, which would inflate capex
during downturns.

Expenditure Adjustability Assessed as Midrange

As for most Turkish LGs, Fitch assesses Manisa's expenditure
adjustability as moderate. The spending profile is largely driven
by their investment profile as defined by law, which can be cut or
postponed in times of economic downturn. In comparison with their
international peers, the responsibilities of Turkish LGs do not
involve resource-hungry areas such healthcare and education,
thereby leaving room in their opex structure, with rigid costs such
as staff costs largely no higher than 25% of opex. Manisa's opex is
less rigid with staff costs at less than 20% of opex. Fitch also
believes after the local elections the city would manage to contain
non-mandatory items in its opex.

Liabilities and Liquidity Robustness Assessed as Weaker

According to national budgetary regulation, Turkish LGs are subject
to debt revenue limits and approval from an upper tier government
for their external borrowings, which Fitch views as
credit-positive. However, Fitch believes that national debt
regulation has resulted in material unhedged FX risk, to which
large Turkish metros are exposed, making a significant dent in
their budgets in times of significant lira volatility. Although the
use of hedging is not prohibited by law, the lack of available
counterparties impedes the use of these instruments. This reflects
the structural weakness of capital markets in Turkey that are less
deep and liquid.

Manisa, in comparison with other national peers, is marginally
exposed to unhedged FX risk, as only 2.7% of its total debt
consists of unhedged foreign debt. Despite the amortising nature of
the city's debt profile, its debt stock has a lower weighted
average maturity of 4.8 years, while 17.4% of its debt matures
within one year, thereby increasing refinancing pressure. Debt
consists solely of bank loans, with a majority at fixed rates,
which hedges the city against a rise in interest rates. The city is
not exposed to material off-balance sheet risk.

Liabilities and Liquidity Flexibility Assessed as Weaker

Manisa's liquidity flexibility is solely driven by the city's own
cash reserves. In addition year-end cash coverage of debt servicing
costs declined to 14% from a five-year average of 33.3%, mainly due
to increased capex ahead of local elections Also there are no
emergency bail-out mechanisms or Treasury facilities in place to
overcome any financial squeeze.

The city has ready credit lines from state-owned and commercial
banks, albeit with counterparty ratings in the 'BB' category,
covering 126.3% of its debt servicing costs at end-2018.
Counterparty risk associated with liquidity providers limits the
assessment of this risk factor to weaker.

Debt Sustainability Assessment: 'aa'

The 'aa' assessment is derived from a combination of a strong
payback ratio (net adjusted debt/operating balance), which is in
line with a 'aaa' assessment, a fiscal debt burden (net adjusted
debt to operating revenue) corresponding to a 'bbb' assessment, and
a sound actual debt service coverage ratio (ADSCR: operating
balance-to-debt service, including short-term debt maturities)
assessed at 'aa'.

According to Fitch's rating case, the payback ratio that is the
primary metric of debt sustainability assessment for type B LGs
will remain between 3x and 4x over its five-year projected period.
For the secondary metrics Fitch's rating case projects that the
fiscal debt burden will increase to 130%, during most of the
forecasted period while DSCR will remain below 3x in 2020-2023.

KEY ASSUMPTIONS

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

  - Operating revenue growth about 1.7%, lower than national
    GDP growth

  - Opex growth in line with inflation plus 2pp

  - Capital expenditure at 40% of total expenditure

  - Deficit is covered by new debt

  - Cost of debt increasing to 14% on average in 2019-2023,
assuming
    that every year 25% of the debt stock will be borrowed at the
market
    rate of 16%, corresponding to the policy rate forecasted by the

    sovereign in 2019-2023

  - EUR/ TRY exchange rate at 6.48 for 2019 and 6.71 for 2020-
2023

Fitch's rating case envisages the following stress compared with  
base case:

  - Stress of operating revenue by about 0.5pp annually to reflect

    continued national economic weakness.

  - Stress of opex on average by 0.5pp annually

  - 15% yoy depreciation of TRY against EUR in 2020-2023.

RATING SENSITIVITIES

A downgrade of the sovereign or sharp deterioration of the net
payback ratio to beyond five years leading to a reassessment of
debt sustainability could result in a downgrade.

An upgrade is possible if the sovereign is upgraded provided that
the city maintains its robust debt sustainability.


TURKCELL: S&P Affirms 'BB-' Ratings on Improving Credit Ratios
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' ratings on Turkcell.

S&P said, "The affirmation reflects the improved Turkish lira (TRY)
against the U.S. dollar, coupled with our expectation that Turkcell
will report relatively stable margins despite the challenging
environment in Turkey. This translates into stronger projected
credit ratios for the coming two years. However, we also
incorporate into our analysis our view on Turkey (unsolicited,
foreign currency B+/Stable/B, local currency BB-/Stable/B)."

The lira has stabilized since August 2018, ending the year at
TRY5.30:$1, stronger than our previous forecast of TRY6.90:$1. This
prompted S&P to revise its foreign exchange assumptions by about
15%-30% for 2019-2020, and we anticipate it will positively affect
Turkcell's debt and capital expenditure (capex) over the same
period, since the majority of the company's debt (84%) and capex
(60%-70%) are denominated in U.S. dollars and euros.

S&P said, "We now expect S&P Global Ratings-adjusted leverage at
about 1.5x for 2019-2020, versus our previous expectation of
1.5x-1.7x in 2019 and 1.2x-1.4x in 2020. We also expect adjusted
free operating cash flow (FOCF) to debt will be in the 10%-15%
range in 2019--compared with our previous expectations of about
5%--and above 10% thereafter. This is mainly due to our expectation
of improved foreign exchange rates, then affecting our debt
forecasts, since 84% of debt is denominated in U.S. dollar (48%)
and euro (36%); while 74% of the cash is in U.S. dollars and 26% of
cash is in euros (and appreciates when the lira weakens).
Additionally, the cash received from the sale of the Fintur assets
further improves Turkcell's metrics.

"We continue to regard Turkcell's operational performance as
resilient to the challenging domestic environment, further
reflecting the company's ability to pass on inflationary pressure
in Turkey. This is mainly a result of the company's leadership
position in the Turkish mobile market (40%-45% subscriber and
revenue share), increased focus on digital service offering
(increased multi-play offerings in both fixed and mobile), and
favorable demographics in the Turkish market (increased data
consumption and young population).

"Our views of Turkcell's business risk profile and our ratings
above the sovereign assessment are unchanged.

"The stable outlook on Turkcell reflects our stable outlook on
Turkey, and our expectation of continued solid operational
performance. In 2019-2020, we expect the company's adjusted
debt-to-EBITDA ratio will be about 1.5x and that FOCF to debt will
exceed 10%.

"A negative rating action on Turkey could trigger the same action
on Turkcell. We could also downgrade Turkcell if we revised down
our T&C assessment on Turkey, due to deterioration in Turkish
corporations' access to domestic and external liquidity, or if we
believed the business risk of operating in Turkey had materially
increased.

"We could upgrade Turkcell if we took the same action on the
sovereign and revised upward the T&C assessment."




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

BRITISH STEEL: Sold Excess Carbon Credit Prior to Aid Request
-------------------------------------------------------------
Leslie Hook, Michael Pooler and Anna Gross at The Financial Times
report that British Steel could have avoided asking UK taxpayers
for a GBP100 million rescue if it had saved permits to produce
carbon that it instead decided to sell in an ill-judged bet on the
EU's emissions trading scheme.

British Steel was allocated more allowances than the total
greenhouse gas output from its two main UK plants from 2013 to
2018, according to data seen by the FT.

When the company sold off some of its allowances, prices were much
lower than current levels after a recent rally to 10-year highs,
the FT states.  The sold-off allowances would now be worth GBP138
million, the FT notes.

According to the FT, it now faces a hefty bill after Brussels put a
temporary suspension on UK companies receiving new allowances until
a Brexit withdrawal agreement is finalized.  However they must
still honour last year's commitments on matching emissions with
allowances, the FT relays.

The situation has led the private equity group that owns British
Steel, Greybull Capital, to request short-term financial support
from ministers to meet the bill and thereby avoid a steep fine when
it falls due at the end of the month, the FT discloses.

                      About British Steel

British Steel Limited is a long steel products business founded in
2016 with assets acquired from Tata Steel Europe by Greybull
Capital. The business' primary steel production site is the
Scunthorpe Steelworks, with rolling facilities at Skinningrove,
Teesside, and Hayange.


DEBENHAMS PLC: CEO Expected to Step Down After Administration
-------------------------------------------------------------
Alice Hancock at The Financial Times reports that Debenhams plc'
chief executive Sergio Bucher is expected to step down in the next
couple of days following a protracted boardroom battle that led to
the department store chain's eventual administration last week.

"Having stayed on after the AGM and got the refinancing in place,
Sergio thinks now would be the right moment to move on," the FT
quotes one person close to Mr. Bucher as saying.  "The upcoming
restructuring can then be led by someone offering a fresh start."

Mr. Bucher is expected to be replaced by interim chairman Terry
Duddy who has been on Debenhams' board for about four years, the FT
relays, citing people briefed on the process.

The chief executive would be relinquishing his position just a week
after the department store chain fell into administration after a
bitter tussle with its largest shareholder, Sports Direct, the FT
discloses.

Despite numerous attempts by Sports Direct and its billionaire
founder Mike Ashley to take control of the business, Debenhams was
put into a "pre-pack" administration -- in which a buyer is lined
up in advance, the FT relates.  The operating subsidiaries were
sold back to the investor consortium, which is led by Silver Point
Capital, a US-based hedge fund, along with Barclays, Bank of
Ireland and London-headquartered fund GoldenTree, the FT states.

According to the FT, a spokesperson for the investor group that now
owns Debenhams said the consortium had injected GBP200 million into
the retailer to "see it through the restructuring process".

In a statement, Mr. Ashley described the administration process as
"an underhand plan to steal from shareholders", the FT notes.


THOMAS COOK: May Have Breached Own Borrowing Limits
---------------------------------------------------
Philip Georgiadis and Alice Hancock at The Financial Times report
that Thomas Cook has told shareholders that it may have been
regularly in breach of its own borrowing limits, marking the latest
setback for the travel company which is restructuring in the face
of shifting consumer habits.

The group said on April 12 that the board had received external
advice that its current interpretation of its financing limits may
have led the company to "inadvertently" exceed the borrowing rules
in its articles of association, the FT relates.

The advisers raised the issue as part of Thomas Cook's strategic
review of its airline, which was announced in February as it
struggles to contend with Brexit uncertainty and fewer customers
visiting its high street travel agents, the FT discloses.

The announcement comes after the group issued two profit warnings
and suffered a share price fall of 80% over the past year, the FT
notes.

The issue hangs on how the borrowing rules are interpreted in light
of the cyclical nature of the business, the FT states.

According to the FT, the borrowing limit, a ratio of net assets to
net debt, has been in Thomas Cook's articles since 2007, but the
issue has not previously been raised publicly by regular auditor
EY.

Thomas Cook, as cited by the FT, said it would ask shareholders to
allow it to suspend the borrowing limitations in its articles for a
limited period at a general meeting April 29.  The board, the FT
says, will then look to amend the articles before its next AGM.

In its 2018 annual report, the company reported net debt of GBP349
million and said that it had secured "additional flexibility" from
lenders in order to carry out its restructuring plan, the FT
recounts.




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

GLOBALWORTH REAL: Moody's Hikes EUR550MM Unsec Notes From Ba1
-------------------------------------------------------------
Moody's Investors Service assigned a Baa3 long term issuer rating
for Globalworth Real Estate Investments Limited (Globalworth).
Concurrently, Moody's upgraded to Baa3 from Ba1 the rating on the
outstanding EUR550 million senior unsecured notes due 2022 and
EUR550 million euro medium term notes maturing 2025. The outlook
has been changed to stable from positive.

Moody's has also withdrawn Globalworth's corporate family rating
(CFR) of Ba1 following its upgrade to Baa3, as per the rating
agency's practice for corporates with investment grade ratings.

RATINGS RATIONALE

"The upgrade to Baa3 with a stable outlook reflects an improved
business profile supported by Globalworth's successful expansion of
its real estate operations into Poland (A2, Stable), a market
benefitting from a positive economic environment and strong
property market fundamentals. Overall the premium quality of its
office portfolios in Poland and Romania continues attracting
international blue chip tenants and provides for sustained robust
operating performance in both geographies. Moreover the company is
committed to maintain an equally strong financial profile in order
to sustainably continue with its growth strategy, even in
potentially more difficult times" says Ana Luz Silva, an Associate
Vice President Analyst at Moody's and lead Analyst for
Globalworth.

Moody's also notes positively that Globalworth benefits from a
supportive shareholder base, with two well know industrial
investors Growthpoint Properties Limited (Baa3 global scale, Aaa.za
local scale) and Aroundtown (unrated), and at the same time a
growing track record in accessing both debt and equity capital
markets.

Globalworth's Baa3 long term issuer rating reflects (i) its leading
position in the Polish and Romanian premium office markets, (ii)
its strong tenant base, a fairly long weighted average lease term
and high occupancy rate of its portfolio, (iii) solid credit
metrics, as reflected by a Moody's debt/assets ratio of 45.2% per
end of 2018, expected to further strengthen towards 43% in 2019,
notwithstanding continued growth plans and (iv) its good liquidity
supported by an almost fully unencumbered asset base.

Partly offsetting these strengths are (i) a continuing fast paced
growth through acquisitions and developments which will continue in
the next 1-2 years introducing execution risk, (ii) short track
record as a leading landlord, (iii) still high exposure to the
weaker Romania (Baa3, Stable) representing 49% of standing gross
asset value, (iv) relatively large, but controlled development
program and (v) some debt maturities concentration in 2022 and
2025, which will require refinancing well in advance.

Finally, Moody's notes that the focus of its operations in Poland
and Romania, entail some tail risk with respect to valuation and
access to capital, as both are relatively immature real estate
markets compared other core European markets and thus more exposed
to volatility in case of a downturn.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company
will continue featuring a solid business profile supported by a
balanced growth strategy. The outlook also reflects an expected
unchanged favorable operating environment in both Poland and
Romania over the next 12 to 18 months, as well as Moody's
expectation that the company will maintain credit metrics
commensurate with a disciplined financial policy committed to an
investment grade rating, such as its net LTV target of below 40%.

FACTORS THAT COULD LEAD TO AN UPGRADE

Growing track record in managing a further increasing portfolio,
whilst maintaining a conservative balance sheet

Further building of a track record in accessing to all forms of
debt and equity capital

Moody's-adjusted gross debt/total assets below 35%

Moody's-adjusted fixed charge coverage ratio sustained above 4.0x

Maintaining strong liquidity and a long-dated well-staggered debt
maturity profile with a record of successfully addressing any
refinance needs well ahead of their maturity

Sustained robust unencumbered assets ratio with high quality asset
pool in strong jurisdictions

FACTORS THAT COULD LEAD TO A DOWNGRADE

Failure to continue growing its Poland property portfolio towards
60% gross asset value of the company within three years and to
remain above that thereafter

Effective leverage sustained above 40% and thus outside its
financial policy

Fixed charge cover below 3.0x on a sustained basis

Failure to address debt maturities well in advance

Increased execution risks amid a potentially more aggressive
acquisition strategy or speculative development activities

Increase of its development pipeline towards 10%



                           *********


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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Information contained herein is obtained from sources believed to
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