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

                          E U R O P E

          Friday, July 26, 2019, Vol. 20, No. 149

                           Headlines



I R E L A N D

IVORY CDO: Fitch Cuts Rating on 2 Notes to Dsf; Withdraws Ratings
LIBRA DAC: DBRS Confirms BB Rating on Class E Notes
[*] IRELAND: Deloitte Says 1H2019 Corporate Insolvencies Down 25%


I T A L Y

BANCA POPOLARE: Fitch Rates EUR200MM Sub. Tier 2 Notes 'BB(EXP)'
BANCA SELLA: DBRS Assigns BB Rating to EUR50MM Subordinated Notes


L A T V I A

MOGO FINANCE: Fitch Assigns B- LT IDR, Outlook Stable


M A L T A

MELITA BIDCO: S&P Assigns Prelim 'B' ICR, Outlook Stable


N E T H E R L A N D S

MAXEDA DIY: Moody's Affirms B2 CFR; Alters Outlook to Negative


R U S S I A

MECHEL OAO: Wants Banks to Push Back Debt Repayments to 2024-2026


S P A I N

BBVA-6 FTPYME: S&P Raises Class C Notes Rating to 'CCC- (sf)'
CIRSA FINANCE: Moody's Rates EUR440MM Sr. Sec. Notes B2


S W E D E N

INTRUM AB: Fitch Rates Proposed EUR600MM Sr. Notes 'BB(EXP)'
TELEFONAKTIEBOLAGET LM: Moody's Affirms Ba2 CFR, Outlook Now Pos.


S W I T Z E R L A N D

SCHMOLZ + BICKENBACH: Moody's Downgrades CFR to B3, Outlook Neg.


T U R K E Y

TURK TELEKOMUNIKASYON: Fitch Cuts LT IDRs to BB-, Outlook Negative
VOLKSWAGEN DOGUS: Fitch Downgrades LT IDR to BB-, Outlook Negative


U N I T E D   K I N G D O M

BAMS CMBS 2018-1: DBRS Confirms BB(low) Rating on Class E Notes
BURY FC: At Risk of Being Kicked Out of Football League
EI GROUP: Moody's Reviews for Downgrade B1 CFR Over Stonegate Deal
EI GROUP: S&P Places 'B' ICR on Watch Negative Over Stonegate Deal
GALAPAGOS HOLDING: Moody's Affirms Caa3 CFR, Outlook Negative

JISTCOURT SOUTH: Puts Assets Up for Sale Following Administration
LANDMARK MORTGAGE NO. 3: S&P Affirms B+(sf) Rating on Class D Notes
OSPREY ACQUISITIONS: Fitch Affirms BB LT IDR, Outlook Negative
RESIDENTIAL MORTGAGE 30: S&P Affirms 'BB+' Rating on F1-Dfrd Notes
RIBBON FINANCE 2018: DBRS Confirms BB Rating on Class G Notes

STONEGATE PUB: Moody's Affirms B2 CFR; Aters Outlook to Developing
STONEGATE PUB: S&P Places 'B-' ICR on Watch Developing on Ei Deal
WALNUT BIDCO: Fitch Assigns B+(EXP) LT IDR, Outlook Stable
WALNUT MIDCO: Moody's Assigns B1 CFR, Outlook Stable
[*] UK: Number of Scottish Business Failures Down, AIB Says



X X X X X X X X

[*] BOOK REVIEW: THE SUCCESSFUL PRACTICE OF LAW

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I R E L A N D
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IVORY CDO: Fitch Cuts Rating on 2 Notes to Dsf; Withdraws Ratings
-----------------------------------------------------------------
Fitch Ratings has downgraded Ivory CDO Limited's class C and D
notes and simultaneously withdrawn the ratings.

Ivory CDO Limited is a managed cash arbitrage securitisation of
mezzanine ABS, RMBS, CMBS, and CDO tranches, funded by EUR200
million of notes. The transaction was originally managed by Societe
Generale Asset Management Alternative Investments and was
afterwards managed by Chenavari Credit Partners LLP.

Ivory CDO Limited
   
Class D XS0309357050; LT Dsf Downgrade;  previously at Csf

Class E XS0309358298; LT Dsf Downgrade;  previously at Csf

Class D XS0309357050; LT WDsf Withdrawn; previously at Csf

Class E XS0309358298; LT WDsf Withdrawn; previously at Csf

The ratings were withdrawn with the following reason No Longer
Considered By Fitch to Be Relevant to The Agency'S Coverage

KEY RATING DRIVERS

The transaction has liquidated the portfolio. The class A1, A2, B,
and C notes have been repaid in full. There is currently no
portfolio outstanding and the transaction has distributed the
remaining cash as of the most recent payment date on July 1, 2019.
The transaction has paid EUR43,000 in interest towards the class D
and E notes and EUR13.4 million of principal to the class D notes
as of the last payment date. However, this amount was not enough to
repay in full the class D and E notes, which still have outstanding
balances.

The class D notes were originally rated 'BBBsf'. However, with an
outstanding principal balance and no collateral Fitch has
downgraded the notes to 'Dsf' and withdrawn the ratings. At
issuance the class D notes had 3.81% credit enhancement, which
compared with current CLO 2.0 transactions, was below the average
for 'Bsf' rated tranches. The class D notes were downgraded to
'B-sf' in early 2009 and then further to 'Csf' in the same year.

The class E notes were originally rated 'BBsf'. The notes were
first downgraded to to 'CCCsf' in  2009 and then further to 'Csf'
in the same year.

The transaction has no collateral and has distributed the remaining
cash to pay class D noteholders. However, the proceeds realised
from selling the collateral were not enough to fully repay the
class D prinicpal, which now has an outstanding balance of EUR1.18
million. The class E notes have an outstanding principal balance of
EUR3.8 million. Therefore, Fitch has downgraded both notes to 'Dsf'
from 'Csf' and withdrawn the ratings.

RATING SENSITIVITIES
NA

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

The majority of the underlying assets had ratings or credit
opinions from Fitch and/or other Nationally
Recognised Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information.

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

LIBRA DAC: DBRS Confirms BB Rating on Class E Notes
---------------------------------------------------
DBRS Ratings GmbH confirmed the ratings of the following classes of
notes issued by Libra (European Loan Conduit No.31) DAC (the
Issuer):

-- Class A1 at AAA (sf)
-- Class A2 at AAA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (sf)

All trends are Stable.

Libra (European Loan Conduit No.31) DAC is the securitization of an
originally EUR 282.5 million (67.5% loan-to-value (LTV) ratio)
floating-rate senior commercial real estate loan advanced by Morgan
Stanley Bank N.A. The originator has retained EUR 50 million and
sold the remaining EUR 232.5 million, or 82% of the senior loan, to
the Issuer who in turn transferred a vertical risk retention (VRR)
loan interest of EUR 11.6 million (5% of the senior loan) back to
Morgan Stanley to comply with the risk retention requirements.
Therefore, only EUR 220.9 million of the senior loan (79% of the
total senior loan) was backed by the notes at inception. As of the
Q2 2019 interest payment date, the outstanding whole loan balance
had been reduced to EUR 273.5 million because of the scheduled
amortization and the property disposal of the Korte Stadiunweg
property, which brought down the securitized balance to EUR 224.8
million, of which EUR 11.2 million is from the VRR loan and the
remaining EUR 213.6 million is backed by notes.

The senior loan refinanced the existing indebtedness of the
original sponsors, which were Starwood Capital and M7 Real Estate.
Following the issuance, the whole portfolio was sold to Blackstone
LLP and the servicer has issued a notification on September 26,
2018, announcing the occurrence of such permitted change of
control. It should be noted that as the acquisition occurred on
each property-holding obligor level rather than the holding parent
level, which was envisaged at inception, an amendment on the senior
facility agreement has been passed to allow Blackstone's
acquisition to take place. DBRS viewed the sponsor change as credit
neutral and kept its hurdle type the same as at issuance.

After the disposal of the Korte Stadiunweg property, the collateral
securing the loan is now composed of 48 light-industrial properties
and one office property all spread across in Germany and the
Netherlands. In Q2 2019, the portfolio generated net cash flow
(post-CAPEX spending) of EUR 7.6 million (or EUR 24.2 million per
year). The projected debt yield is 10.79%, which left ample
headroom from the 7.25% cash trap covenant. A new valuation has
finalized in March 2019 and reported a total market value (MV) of
EUR 429.9 million, which represents a EUR 11.3 million MV increase
since issuance. This new valuation has reduced the senior loan's
LTV to 63.54% from 67.5% at issuance.

The servicer has reported a total EUR 3.4 million CAPEX spending
since issuance, which the majority (51%) of CAPEX going to North
Holland.

Considering the current cash flow generated by the portfolio and
CAPEX investment implemented to date, DBRS concluded that the
portfolio is performing in line with expectations, hence the rating
confirmations.

Notes: All figures are in Euros unless otherwise noted.

[*] IRELAND: Deloitte Says 1H2019 Corporate Insolvencies Down 25%
-----------------------------------------------------------------
Jonathan Keane at FORA reports that corporate insolvencies in
Ireland were down 25% in the first half of 2019, according to
Deloitte figures, but the impact of Brexit has yet to be felt.

According to FORA, Deloitte's latest report showed that there were
310 insolvencies in the first six months of 2019, compared to 435
in the same period in 2018.

The services industry made up 40% of these latest insolvencies with
financial services making up a big chunk of that, FORA discloses.
The construction industry came up second, FORA notes.

Creditors' voluntary liquidation is the most common means of
addressing insolvency, accounting for 66% of cases in the first
half of 2019--although it's a 2% drop on 2018 figures, FORA
states.

David van Dessel--dvandessel@deloitte.ie--a partner at Deloitte,
said that timing remains the biggest challenge for companies that
are facing insolvency and that voluntary liquidation is often the
last option available, FORA relates.

"There is a natural tendency for entrepreneurs to attempt to deal
with their financial problems independently.  The number one
response is to attempt to increase sales rather than cutting
costs," FORA quotes Mr. van Dessel as saying.

Mr. Van Dessel, as cited by FORA, said examinership, where a
court-appointed examiner assists the company in salvaging the
business, is an under-utilized avenue for restructuring a company
in trouble.

He said the majority of companies that opt for examinership return
to trading, FORA relays.

Deloitte's latest numbers acknowledge that the full impact of
Brexit on insolvencies won't be evident until 2020 figures begin to
emerge, FORA notes.

Mr. van Dessel said in particular, a no-deal divorce--which, with
new UK prime minister Boris Johnson, has become a distinct
possibility--would have a "material impact on insolvency levels",
according to FORA.




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I T A L Y
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BANCA POPOLARE: Fitch Rates EUR200MM Sub. Tier 2 Notes 'BB(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned Banca Popolare di Sondrio - Societa'
Cooperativa per Azioni's (Sondrio, BB+/Stable/bb+) planned EUR200
million callable subordinated Tier 2 issue an expected long-term
rating of 'BB (EXP)'.

The notes will be issued under Sondrio's EUR5 billion EMTN
programme and qualify as Tier 2 regulatory capital. They contain
contractual loss absorption features that will be triggered only at
the point of non-viability of the bank and have no equity
conversion feature. The terms of the notes include a reference to
noteholders' consent to be bound by subordination provisions
established by Italian law.

The assignment of the final rating is contingent on the receipt of
final documents conforming to the information already received.

KEY RATING DRIVERS

The notes are rated one notch below Sondrio's 'bb+' Viability
Rating (VR) to reflect below-average recovery prospects for the
notes in case of a non-viability event. Fitch does not notch the
notes for non-performance risk because no coupon flexibility is
included in their terms.

RATING SENSITIVITIES

The notes' rating is primarily sensitive to a change in the bank's
VR, from which it is notched. The notes' rating is also sensitive
to a change in notching should Fitch change its assessment of loss
severity or relative non-performance risk.

BANCA SELLA: DBRS Assigns BB Rating to EUR50MM Subordinated Notes
-----------------------------------------------------------------
DBRS Ratings GmbH assigned a BB rating with Stable Trend to the EUR
50 million Subordinated Notes issued by Banca Sella SpA (the Issuer
or the Bank), in the form of Tier 2 instruments (ISIN XS2030489632)
under its EUR 1,000,000,000 Euro Medium Term Note Programme (EMTN
Programme).

The BB rating assigned to the Subordinated Notes is two notches
below the Bank's Intrinsic Assessment (IA) of BBB (low), in line
with the Debt Obligations Framework set out in DBRS's Global
Methodology for Rating Banks and Banking Organizations (June
2019).

RATING DRIVERS

Any positive change in the Bank's Intrinsic Assessment would have
positive implications for the rating. Similarly, any negative
change in the Bank's Intrinsic Assessment would have negative
implications for the rating.

Notes: All figures are in Euros unless otherwise noted.



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L A T V I A
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MOGO FINANCE: Fitch Assigns B- LT IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned Mogo Finance S.A. a Long-Term Issuer
Default Rating of 'B-' with Stable Outlook.

KEY RATING DRIVERS

IDRS AND SENIOR DEBT

The IDRs of Mogo are driven by its standalone credit profile as a
specialised auto finance and leasing company operating across
eastern Europe and central Asia. The ratings take into account
Mogo's nominal franchise in a competitive niche, increasing
exposure to volatile markets, elevated risk appetite and high
leverage.

They also reflect sound profitability, a track record in placing
public bonds and adequate experience of the management team.

Fitch views Mogo's franchise as nominal since it operates in a
competitive niche of financing used cars (on average 13 years old),
which regulated banks do not typically finance. However, Mogo has
some economy of scale and diversification benefits through its
presence across 15 countries, while its competitors focus
predominantly on one country or a small number of countries.

The company has an increasing exposure to generally volatile
operating environment in smaller countries in eastern Europe and
central Asia.

Fitch assesses Mogo's risk appetite as high due to a higher-risk
client base, fast capital-depleting growth and large unhedged open
FX position. Mogo's target clients are below-prime individuals who
cannot afford newer cars, but they reflect the overall median
earner in Mogo's countries of operations.

Mogo's high leverage (gross debt/tangible equity of 14.1x at
end-2018, 11.5x if the shareholder loan is treated as equity) and
the large unhedged open FX position (4.1x equity at end-2018, 3.4x
if the shareholder loan is treated as equity) are major constrains
on the ratings. Fitch expects leverage to improve, but remain high,
over the next three years due to sound profitability and a low
initial capital base.

In recent years Mogo grew faster than its internal capital
generation. Mogo needs to grow its lease portfolio further to
achieve operational break-even in various countries. This should
support profitability and internal capital generation, but Fitch
projects continued high leverage over the next three years.

Mogo's business model assumes high credit risks, which are balanced
by high-yielding lending (impaired loan ratio of 15% at end-2018).
Fitch views the asset quality as unseasoned given the company's
fast portfolio growth. Mogo benefits from decent monetisation of
repossessed collateral and from limited additional depreciation of
leased assets, due to their age at financing.

Mogo's net interest margin is consistently above 30% (2018: 37%),
but increasing operational costs and high impairment charges have
put pressure on profitability. Pre-tax return on average assets
declined to 4% in 2018 (2017: 11%).

Mogo has accessed debt capital markets in Riga and Frankfurt, which
provided sufficiently long-dated liabilities at fixed interest
rates. Fitch sees this access as yet untested at times of stress,
since Mogo has so far relied on pro-cyclical sources such as
high-yield secured funding and the Mintos online platform (a
quasi-retail fintech peer-to-peer lending platform).

The rating of Mogo's senior secured debt is equalised with the
company's Long-Term IDR to reflect its effective structural
subordination to outstanding debt at operating entities, which
despite their secured nature leads to only average recoveries as
reflected in the assigned 'RR4' Recovery Rating.

RATING SENSITIVITIES

IDRS AND SENIOR DEBT

Fitch would view positively a sustained reduction in leverage to
below 6x and the achievement of operational break-even in
individual countries of operations, before further expansion.

Pressure on the ratings would stem mainly from capitalisation and
leverage, a key weakness for Mogo. Fitch could downgrade the rating
if growth is not supported by higher capitalisation either via
sufficient internal capital generation or the injection of new
equity, leading to leverage increasing from its already high levels
(14x at end 2018).

Marked deterioration in Mogo's asset quality, ultimately
threatening the company's solvency, could also lead to a rating
downgrade.

Changes to Mogo's Long-Term IDR would be mirror in the company's
senior secured bond rating.

Higher recovery assumptions, for instance as a result of operating
entity debt falling in importance compared with the rated debt
instruments, could lead to above-average recoveries and Fitch to
notch up the rated debt from Mogo's Long-Term IDR.

Conversely, lower recovery assumptions, for instance due to
operating entity debt increasing in relative importance or
worse-than-expected asset quality trends (which could lead to
higher asset haircuts), could lead to below-average recoveries and
Fitch to notch down the rated debt from Mogo's Long-Term IDR.

The rating actions are as follows:

Mogo Finance S.A.

Long-Term IDR assigned 'B-'; Outlook Stable

Short-Term IDR assigned 'B'

Senior secured debt rating assigned 'B-'/'RR4'



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M A L T A
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MELITA BIDCO: S&P Assigns Prelim 'B' ICR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings said it assigned a preliminary 'B' issuer credit
rating to Malta-based telecoms company Melita BidCo Ltd. and a
preliminary 'B' issue rating to Melita's proposed EUR275 million
first-lien senior secured term loan.

The preliminary rating follows private equity firm EQT
Infrastructure's announcement that it will acquire Melita from APAX
Partners and Fortino Capital. The acquisition will be partly funded
by a EUR275 million first-lien senior secured term loan.

The rating primarily reflects Melita's highly leveraged capital
structure as a result of the transaction, and relatively limited
free cash flow generation on the back of significant capital
expenditure (capex). S&P said, "We forecast adjusted debt to EBITDA
of about 6.7x in 2019 and free cash flow of slightly above
breakeven. We think that Melita has the capacity to reduce leverage
towards 5x by 2021, however, underpinned by healthy revenue growth
and margin expansion. We also anticipate that its free operating
cash flow (FOCF) will remain positive and growing despite
expansionary investments in Italy and higher TV content fees."

Melita's business profile is mainly constrained by its small size
and lack of geographical diversification. With revenue of EUR73.6
million in 2018, Melita is smaller than its domestic competitor GO
(sales of EUR138 million generated in Malta in 2018) and other
rated single-country cable operators. S&P said, "We think that the
small scale creates a risk that Melita will try to seek growth in
new geographies (such as Italy), where it doesn't benefit from a
strong brand and market position. We also think that the small
scale could limit the company's bargaining power over suppliers,
considering the industry's evolving network upgrade needs. That
said, we note that Melita has one of the most advanced networks in
Europe as it has already achieved nationwide DOCSIS3.1 and 5G-ready
mobile network coverage. Additionally, unlike in other European
markets, spectrum in Malta is allocated by The Malta Communications
Authority (MCA) which requires limited license fees. In our view,
this significantly reduces the downside risks of Melita's future
capex."

A lack of diversification also constrains Melita's business risk
profile. Melita generates almost 100% of its revenue from Malta,
which has a population of less than half a million. S&P said, "We
think Melita's strong growth in the past few years was partly built
on immigration inflows, and this trend could reverse if the
European Commission implements measures to counter the potential
risks like money laundering and tax evasion. We also think that
Malta's economy is less resilient than other, bigger markets, and
more susceptible to financial market volatility and negative shocks
from Brexit, given its strong reliance on cyclical service
industries like tourism and e-gaming." Finally, the focus of
operations on a small island makes Melita more vulnerable to events
such as natural disasters.

S&P said, "Melita's strategy to expand in Italy could pose
additional risks to the company's operations, in our view. We
expect Melita's reported EBITDA margin will decline to 55.6% in
2019, compared to 57.9% in 2018, driven by the one-off start-up
operating expenditures in Italy. We also expect EUR4.5 million of
start-up capex in 2019. We think it would be very challenging for
Melita to achieve sufficient scale to cover the fixed operational
costs in the short term, considering the highly competitive market
environment and the lack of brand awareness for Melita in Italy. We
also see risks of initial cash burn due to customer acquisition
costs if the ramp-up of customers is quicker than our base case.
The strategy would also expose Melita to direct competition with
larger and more resourceful operators like Telecom Italia, Vodafone
Italy, and Wind Tre. That said, S&P acknowledges that a gradual
successful expansion in Italy would to a certain extent improve
Melita's diversification profile.

S&P said, "Our assessment of the business is supported, however, by
Melita's No. 1 position in broadband and pay-TV as well as its
strong position in the mobile market, sound operating margins, and
low customer churn of only about 10%. Melita holds a 38% market
share in terms of revenue. With the completion of its 4.5G rollout,
we expect Melita to continue to expand its market share in the
mobile segment, especially as its market perception is improving
and due to attractive convergent offers compared with its
competitors."

In addition, Melita benefits from a superior fixed broadband
network that offers guaranteed 1 gigabyte per second speeds
throughout the country. This provides Melita a speed advantage over
GO, which will require years of investment in fiber to the home to
reach similar ultrafast broadband coverage, as well as Vodafone,
which relies on a wholesale agreement with GO.

S&P said, "We also think the Maltese telecom market has attractive
growth prospects compared with most European markets. The telecoms
market in Malta is still growing by 2%-4% thanks to the growing
population, which is mainly due to the inflow of immigrants, and
the opening of new businesses. This organic growth limits the level
of pricing competition in the market as it creates lower pressure
to gain market share from competitors.

"We think Melita's profitability is better than that of its peers
due to its lean operations and network ownership, but this is
somewhat offset by its high capex, including on customer
acquisition.

"We expense Melita's content fees as we see these as operating
costs.

"The stable outlook reflects our view that Melita will post 8%-10%
organic revenue growth in 2019-2020, underpinned by a strong
business-to-business (B2B) performance and revenue-generating unit
(RGU) growth in all segments, a sound adjusted EBITDA margin of
above 55%, and positive FOCF.

"We could lower our rating if Melita's RGU growth is materially
slower than we expect, or it experiences significant cash burn from
its expansion in Italy, leading us to forecast that adjusted
leverage will remain sustainably above 6.5x from 2020, FOCF will be
negative, or funds from operations (FFO) interest coverage ratio
will be below 3x.

"We are unlikely to raise the rating over the next 12-24 months as
we think leverage will remain high under Melita's financial-sponsor
ownership.

"However, we could raise the rating if Melita's adjusted leverage
falls significantly and sustainably below 5x, and FOCF to debt
increases above 5%, supported by a prudent financial policy."

Melita is one of the two fully converged telecommunication service
providers in Malta offering broadband, fixed telephony, mobile, and
pay TV services. As of Dec. 31, 2018 Melita had 93,000 fixed
customers and 130,000 mobile customers.




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N E T H E R L A N D S
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MAXEDA DIY: Moody's Affirms B2 CFR; Alters Outlook to Negative
--------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
and B2-PD probability of default rating of Maxeda DIY Holding B.V.
Concurrently Moody's has affirmed the B2 instrument rating of the
EUR475 million senior secured global notes due 2022 issued by
Maxeda. Moody's has changed the outlook of Maxeda to negative from
stable.

The change in outlook to negative reflects the weakening of the
company's liquidity as a result of high capital expenditure and
high exceptional costs in the last 12 months, despite a solid
operating performance. While Moody's expects the company's
liquidity to improve in the next 12 to 18 months, the negative
outlook reflects the company's current tight liquidity buffer.
Moody's expectation of improving liquidity is based on forecasted
neutral working capital movement and reduced capital expenditure of
EUR45 million in fiscal 2019. However, a negative deviation from
these assumptions could weaken Maxeda's liquidity.

The negative outlook also reflects Moody's expectation that
Maxeda's leverage, as measured by Moody's adjusted Debt/EBITDA,
will reach 6.0x in fiscal 2019. The main reason for the forecasted
increase in leverage from 5.4x in 2018 is the impact from the
introduction of IFRS 16, which is expected to lead to higher
capitalized operating lease liabilities of EUR605 million, which is
higher than Moody's current adjustment for the capitalization of
operating leases of EUR435 million.

RATINGS RATIONALE

The B2 corporate family rating of Maxeda reflects (1) the high
leverage expected in the fiscal year ending January 2020 (fiscal
2019), with 6.0x Moody's-adjusted (gross) debt/EBITDA, which is
high for the B2 rating and weak EBIT/interest cover of around 1.5x;
(2) the discretionary nature of consumers' DIY spend and the highly
cyclical nature of the industry; (3) the high seasonality of sales
and the high sensitivity of revenues to weather conditions; (4) the
company's low profitability because of intense competition and cost
inflation, which is partially offset by its cost-saving
initiatives; and (5) the weak liquidity of the company which has
drawn EUR20 million of its EUR50 million RCF.

However, the B2 CFR is supported by (1) its strong position in the
do-it-yourself (DIY) market and long-established brand name in both
Belgium and the Netherlands; (2) the company's extensive network
coverage across both countries; (3) low fashion and trend risks in
the company's business model; (4) favourable macroeconomic
environment in the Netherlands and Belgium; and (5) additional
opportunities coming from e-commerce growth.

Maxeda's expected increase in leverage is driven by the company's
higher financial debt, which the company estimates would increase
by EUR605 million in fiscal 2018 as a result of the application of
IFRS16 accounting standard. This amount is higher than Moody's
existing debt adjustment for the capitalization of operating leases
of EUR435 million in fiscal 2018. One of the reasons for this
difference is that the previous disclosure of undiscounted future
lease payments did not capture certain renewal options of existing
lease contracts which the company has decided are "reasonably
certain" to be exercised. As IFRS16 will become effective in fiscal
2019, Moody's estimates an increase in the company's Moody's
Adjusted Debt EBITDA by around 1.0x in fiscal 2019. The increase in
debt resulting from the change in accounting is partially offset by
Moody's expectation that Maxeda will increase its EBITDA thanks to
a reduction in transformation costs, cost savings initiatives and
modest organic growth. Moody's expects the combined effect will
result in Moody's Adjusted Debt/EBITDA of 6.0x in fiscal 2019.

Moody's considers the overall liquidity as of April 2019 as weak.
The company's liquidity has weakened in the last 12 months because
of the high capital spending of EUR70 million (compared with an
average of EUR35 million per year in previous years) and around
EUR14 million exceptional costs related to store transformations in
the Netherlands. With a cash balance of EUR25 million as of Q1 2019
and access to only EUR30 million out of its EUR50 million revolving
credit facility (RCF) because EUR20 million has been drawn, the
company's liquidity buffer is limited. Moody's expects that the
company will generate positive, albeit limited, FCF in the next 12
to 18 months. As store transformation works are almost completed,
Moody's expects capital spending for fiscal 2019 to reduce to EUR45
million and exceptional costs to reduce by EUR6 million. Moody's
also expects working capital to have a neutral impact on fiscal
2019 financials as the high inventory intake will be absorbed in
the coming months.

The next sizeable senior loan facility maturity of EUR475 million
is in July 2022. The company is subject to one springing financial
covenant (net leverage), tested quarterly if the RCF is 40% drawn.
Moody's expects, if a test is needed, ample capacity under this
covenant, the test level being set at 7.0x

STRUCTURAL CONSIDERATIONS

The B2 rating on the EUR475 million senior secured notes reflects
(1) the upstream guarantees and share pledges from material
subsidiaries of the group, and (2) pledges on certain movable
assets of the group. The B2 rating also takes into account the
presence of a super senior revolving credit facility in the
structure and sizeable trade payables claims at the level of
operating subsidiaries.

The B2-PD probability of default rating, in line with the CFR,
reflects Moody's assumption of a 50% family recovery rate, typical
for secured bond structures with a limited set of financial
covenants. More specifically, the documentation includes a net
leverage financial covenant to be tested quarterly if the RCF is
drawn more than 40%.

Rating Outlook

The negative outlook reflects the weakening of the company's
liquidity despite improving operating performance and the limited
liquidity buffer the company has to manage cash flow volatility.
The negative outlook also reflects Moody's expectations that the
company's leverage will increase to 6.0x in fiscal 2019 as a result
of the application of IFRS16 and that deleveraging from this level
will be slow despite the organic growth of the company as
competition and cost inflation will continue to put pressure on
earnings in the next 12 to 18 months.

The outlook could be stabilized if Moody's Adjusted Debt/EBITDA
decreases below 5.75x driven by an ongoing and sustainable increase
in earnings and improvement in the company's free cash flow and
liquidity, which are currently weak.

What Could Change the Rating Up/Down

The company is weakly positioned in the B2 rating category and as
such, an upgrade is unlikely in the short term. However, positive
pressure on the ratings could result from (1) a sustained
improvement in operating performance, with solid top-line growth
and improving margins; (2) sustained positive free cash flow (FCF);
and (3) Moody's-adjusted (gross) leverage falling towards 4.5x on a
sustained basis.

Negative pressure could be exerted on Maxeda's ratings if (1) its
market position and operating performance were to deteriorate (for
example, because of intense competition, negative like-for-like
sales or reduced margins); (2) its Moody's-adjusted (gross)
debt/EBITDA will remain above 5.75x on a sustained basis; (3) its
FCF turns negative on a sustained basis; and (4) its liquidity
fails to improve from current levels.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail Industry
published in May 2018.

COMPANY PROFILE

Maxeda, domiciled in Amsterdam, the Netherlands, is a DIY retailer
that operates in the Netherlands, Belgium and Luxembourg, via
various offline and online formats. Its offline network comprises
365 stores, of which 234 are its own stores. For fiscal 2018, the
company reported revenue of EUR1.39 billion and an EBITDA of EUR92
million.



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

MECHEL OAO: Wants Banks to Push Back Debt Repayments to 2024-2026
-----------------------------------------------------------------
Maria Kiselyova and Polina Ivanova at Reuters report that Russian
coal and steel producer Mechel has asked banks to push back its
debt repayments to 2024-2026 from 2020-2024, Interfax news agency
cited an executive at Russian state lender Sberbank as saying on
July 24.

Mechel, once on the brink of bankruptcy, has been in restructuring
talks with its lenders for several years, Reuters notes.

Its debt to Russia's three largest state-controlled
banks--Sberbank, VTB and Gazprombank--stands at RUR347.5 billion
(US$5.5 billion), Reuters discloses.

Mechel submitted a new restructuring proposal to the banks in June,
chief financial officer Nelli Galeeva was cited by Interfax as
saying at the time, adding that the company hoped an agreement
could be reached before the end of the year, Reuters relates.

Sberbank is considering Mechel's request, the lender's deputy board
chairman Anatoly Popov was quoted as saying by Interfax on July 24,
according to Reuters.

VTB said Mechel was repaying its debts on schedule and its proposal
would be considered in due course, Interfax cited the lender as
saying, Reuters notes.

According to Reuters, Interfax reported that Gazprombank said it
had not yet received an official request from Mechel.

Mechel, controlled by Russian businessman Igor Zyuzin, borrowed
extensively during the commodities boom in the 2000s, Reuters
recounts.  Its lengthy restructuring following the 2008 financial
crisis was exacerbated by Russia's economic crisis in 2014, Reuters
relays.

In April 2017, Russia's three largest state banks confirmed a
restructuring of US$5.1 billion of the company's more than US$6
billion debt, Reuters states.




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

BBVA-6 FTPYME: S&P Raises Class C Notes Rating to 'CCC- (sf)'
-------------------------------------------------------------
S&P Global Ratings raised to 'CCC- (sf)' from 'D (sf)' its credit
rating on BBVA-6 FTPYME Fondo de Titulizacion de Activos' class C
notes.

S&P said, "We have used the latest available payment report and
loan-level data to perform our analysis and have applied our
European small and midsize enterprise (SME) collateralized loan
obligation (CLO) criteria and our current counterparty criteria.
Because the rating on the notes is below our rating on Spain, we
have not applied our structured finance ratings above the sovereign
criteria.

"The current performing portfolio balance is approximately EUR10.31
million, which represents a 0.69% pool factor. With only 89
distinct obligors, we consider the portfolio to be non-granular and
concentrated, with the top obligor and top five obligors
representing 14.89% and 40.84% of the current performing balance,
respectively. There is EUR35.25 million of defaulted loans in the
portfolio.

"In our last review, we affirmed our 'D (sf)' rating on the class C
notes because they had been deferring interest payments since 2012
due to the breach of the interest deferral trigger."

The class B notes were fully redeemed in June 2018, and from the
September 2018 payment date the class C notes' interest payments
have been current. Since then, the class C notes have repaid the
amount of interest that had been deferred and have resumed current
interest payments. S&P said, "We have therefore raised our rating
on the class C notes to 'CCC- (sf)' in application of our criteria
"Post-Default Ratings Methodology: When Does S&P Global Ratings
Raise A Rating From 'D' Or 'SD'?" published March 23, 2015, and
"Structured Finance Temporary Interest Shortfall Methodology,"
published Dec. 15, 2015."

For the upgrade, S&P took into account the following
considerations:

-- According to the periodic report, the cumulative default curve
had flattened, and the increase in cumulative defaults since S&P's
last review was minimal (to 6.32% from 6.31% of the initial asset
balance).

-- The class C notes are undercollateralized, and the reserve fund
has been depleted. Nevertheless, the portfolio is generating enough
excess spread to pay senior expenses, interest, as well as
principal on the class C notes.

-- Since 2012, the transaction recovered more than 50% of all the
defaulted loans. Under favorable economic conditions, and assuming
that the currently defaulted loans continue to receive the same
level of recoveries, the transaction may repay the class notes'
principal.

S&P said, "Hence, we do not expect any future interest shortfalls,
although in our view the repayment of principal is dependent upon
favorable business, financial, and economic conditions. We have
therefore raised our rating on the class C notes to 'CCC- (sf)'. We
will continue monitoring the rating on the notes, and if the
portfolio characteristics change in coming months, we may take
further rating actions.

"The transaction's counterparty, operational, and legal risks are
adequately mitigated in line with our criteria."

BBVA-6 FTPYME is a single-jurisdiction cash flow CLO transaction
securitizing a portfolio of SME loans that Banco Bilbao Vizcaya
Argentaria S.A. originated in Spain. The transaction closed in June
2007.

CIRSA FINANCE: Moody's Rates EUR440MM Sr. Sec. Notes B2
-------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the proposed
EUR440 million of new floating rate senior secured notes due 2025
to be issued by Cirsa Finance International S.a.r.l.

Proceeds from the new notes will be used to redeem in full the
floating EUR425 million senior secured notes due 2023, pay related
transaction expenses and retain some cash on balance sheet. Upon
completion of the early bond redemption, Moody's will withdraw
Cirsa Finance's existing B2 rating on the floating EUR425 million
senior secured notes due 2023.

Cirsa Enterprises, Sociedad Limitada's existing ratings, comprising
a B1 corporate family rating, a B1-PD probability of default
rating, and B2 ratings on the company's existing senior secured
notes, remain unaffected. The outlook remains stable.

RATINGS RATIONALE

The impact of the transaction is leverage neutral. For the last
twelve months ended March 2019 and pro forma the new EUR440 million
floating rate notes, Moody's gross adjusted debt/EBITDA does not
significantly change from the 4.8x at the end of 2018. Pro forma
the increased debt and the recent Giga Game System Operation S.L.U.
and Sportium Apuestas Deportivas acquisitions, Moody's gross
adjusted debt was estimated to be 4.6x LTM March 31, 2019.

The B1 CFR also reflects Cirsa's (i) leading market position in
Spain and Latin America, with an enhanced position in its core
market of Spain following the recent acquisitions of Giga and
Sportium in 2019; (ii) strong operating performance with consistent
growth in spite of challenging market conditions (albeit growth has
been partially driven by acquisitions); (iii) good diversification
by gaming segment and geography; (iv) strong track record in
successfully managing a difficult operating environment, backed by
an experienced management team, and its expectation that the
company will continue to mitigate the challenges arising in
emerging markets with no meaningful change in the leadership team,
and; (v) good operating cash flow generation.

However, the rating is constrained by the company's (i) fairly high
Moody's adjusted leverage estimated at 4.6x on a Moody's adjusted
basis as of March 31, 2019 (pro forma the Giga and Sportium
acquisitions and the additional debt raise), with Moody's
expectation that there will be minimal deleveraging over the
projection period; (ii) significant presence in certain emerging
markets and therefore its exposure to high operational risk; (iii)
ongoing threat of regulatory and taxation risks inherent to the
gaming industry; and (iv) exposure to foreign exchange fluctuations
and reliance on repatriation of cash, although the company has a
good track record of accessing cash from Latin American operations
to support debt servicing at the parent level.

LIQUIDITY PROFILE

Moody's considers that Cirsa has a good liquidity profile which is
underpinned by (i) strong free cash flow (FCF) with Moody's
adjusted FCF of around EUR100 million within the next 12-18 months;
(ii) EUR225 million cash on balance sheet pro forma the recent
acquisitions of Giga and Sportium; (iii) access to a EUR200 million
revolving credit facility (RCF) expected to be undrawn at closing
and; (iv) no imminent debt maturities with the next significant
debt repayments due in 2023.

STRUCTURAL CONSIDERATIONS

The new notes due 2025 are rated B2, in line with the rating of
Cirsa Fiance's existing notes, reflecting their position as secured
obligations within the capital structure, ranking pari passu to the
existing Notes and to the Super Senior EUR200 million RCF
(unrated). The notes are ranked one notch below the B1 CFR because
the enforcement of the notes ranks behind the Super Senior EUR200
million RCF. The B2 rating on the notes also takes into account
existing debt at the non-guarantor operating company level of about
EUR112.5 million as of March 31, 2019.

Cirsa's PDR is aligned with the CFR, reflecting Moody's assumption
of a 50% family recovery rate for capital structures with first
lien debt and a weak security package i.e. no tangible assets.
Similar to Cirsa Finance's existing Senior Secured notes, the new
notes benefit from a security package including share pledges,
security over certain bank accounts, and assignment of intercompany
loans. They also benefit from a guarantee package from subsidiaries
that comprise 57.4% of the company's adjusted EBITDA as of March
31, 2019.

RATING OUTLOOK

The stable outlook reflects its expectation that there will be
management continuity and no material change in the company's
strategy, that the company will achieve some minimal deleveraging,
profitable growth, and mitigate unfavorable currency movements.
Moody's also expects Cirsa will continue to generate strong FCF of
around EUR100 million within the next 12-18 months (excluding small
bolt on acquisitions). Moody's also assumes that there will be no
further materially adverse regulation and/or taxation changes and
that there will be no deterioration in liquidity. Moody's expects
licenses will be successfully renewed

WHAT COULD CHANGE THE RATING UP/DOWN

Upward rating pressure is unlikely in the near term due to the
recent increase in leverage, but could occur if:

  -- Cirsa's operating performance continues to improve such that
Moody's adjusted debt/EBITDA ratio reduces sustainably below 3x;

  -- EBIT/interest increases to above 2.5x on a sustainable basis;

  -- Sustained and meaningfully positive cash flow generation,
and;

  -- Conservative financial policies with a track record of
balancing the interests of creditors with those of shareholders.

Downward rating pressure could occur if;

  -- Moody's adjusted debt/EBITDA remains sustainably around 5x;

  -- Moody's adjusted EBIT/interest ratio trends towards 1.5x; or

  -- If there is a deterioration in the company's liquidity;

  -- Any material debt-funded M&A or shareholder distributions that
weaken credit metrics or are evidence of a less conservative
financial policy.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Gaming Industry
published in December 2017.

COMPANY PROFILE

Founded in 1978 and headquartered in Terrassa, Spain, Cirsa is an
international gaming operator with 148 casinos, 187 arcades, 70
bingo halls, over 70,000 slot machines and more than 3,000 betting
locations (excluding Argentina). The company is present in 9
countries where it has market leading positions: Spain and Italy in
Europe; Panama, Colombia, Mexico, Peru, Costa Rica and Dominican
Republic in Latin America; and Morocco. As of first quarter 2019,
the company reported a LTM net revenue of EUR 1,499 million and a
LTM adjusted EBITDA of EUR 432 million post IFRS 16 (excluding the
pro forma effect of Giga and Sportium acquisitions).



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

INTRUM AB: Fitch Rates Proposed EUR600MM Sr. Notes 'BB(EXP)'
------------------------------------------------------------
Fitch Ratings has assigned Intrum AB's proposed issue of EUR600
million of seven-year senior notes an expected rating of 'BB(EXP)'.


The rating is in line with Intrum's 'BB' Long-Term Issuer Default
Rating, as the notes will represent unconditional and unsecured
obligations of the company. It also reflects Fitch's expectation of
average recovery prospects, given that Intrum's funding is largely
unsecured.

The assignment of the final rating is contingent on the receipt of
final documents conforming to information already received.

KEY RATING DRIVERS

The Long-Term IDR of Intrum reflects its high leverage, a
characteristic of the debt purchasing sector and driven, in its own
case, by the debt taken on as part of its 2017 merger with the
Lindorff group, and subsequent corporate activity. They also take
into account Intrum's market-leading franchise in the European debt
purchasing and credit management sector, where the company benefits
from diversification across 25 countries. They further factor in
its high proportion of fee-based servicing revenue, which
complements its more balance sheet-intensive investment
activities.

The proceeds of the new senior notes will principally be used to
refinance an equivalent sum of other euro- and Swedish
krona-denominated notes due 2022. Therefore Fitch does not expect
the transaction to impact Intrum's leverage ratios, but views
positively the maturity extension of a portion (around 14%) of
Intrum's total debt, and the associated reduction in medium-term
concentration of refinancing requirements.

In 1H19 Intrum reported a 41% yoy rise in profit before tax to
SEK2.1 billion, significantly boosted by SEK675 million of income
from joint ventures. This principally relates to the company's
partnership with Intesa Sanpaolo, which only contributed to
earnings from 2H18 onwards. Revenues (which do not consolidate
joint ventures) grew by a slower 12%, reflecting increases within
both portfolio investments (on-balance sheet debt purchasing) and
credit management services (off-balance sheet debt collecting).

New investments have returned to a more normal level after rising
rapidly in 2018. Geographically 1H19 revenue growth was fastest in
Intrum's western and southern Europe segment, principally in
relation to Italy, while the Iberian Pensinsula and Latin America
saw a contraction as a result of the loss of volumes from former
customer contracts.

Leverage under Intrum's core internal net debt-to-rolling 12-month
cash EBITDA measure rose to 4.3x at end-1H19 from 4.0x at end-1Q19,
following dividend payments and completion of the company's
previously announced acquisition of Solvia Servicios Inmobiliaros.
However, management has maintained its 2020 target of 2.5x-3.5x,
with EBITDA expected to rise as acquisitions make fuller
contributions and the company exploits potential further cost
synergies.

Fitch assesses leverage primarily in relation to gross
debt-to-adjusted EBITDA (including adjustments for portfolio
amortisation). The ratio, when calculated on the basis of
annualised first half earnings, is reduced to around 4.2x at
end-1H19 relative to 4.6x (after adjustment for non-recurring
items) at end-2018, principally on account of the higher reported
profit in 1H19.

RATING SENSITIVITIES

The senior notes' rating is primarily sensitive to changes in
Intrum's Long-Term IDR.

A sustained reduction of Intrum's cash flow leverage resulting in a
gross debt-to-EBITDA well within Fitch's 'bb' category range for
leverage (2.5x to 3.5x) could lead to an upgrade of Intrum's
Long-Term IDR. Conversely Intrum could be downgraded if leverage
shows a sustained increase from the current level, or if
performance weakens as a result of the acquired debt portfolios not
delivering the returns expected on purchase or other adverse
operational event.

Changes to Fitch's assessment of recovery prospects for senior
unsecured debt in a default (e.g. introduction to Intrum's debt
structure of a materially larger revolving credit facility, ranking
ahead of senior unsecured debt) could also result in the senior
notes' rating being notched down below the IDR.

TELEFONAKTIEBOLAGET LM: Moody's Affirms Ba2 CFR, Outlook Now Pos.
-----------------------------------------------------------------
Moody's Investors Service changed the outlook to positive on the
ratings of Telefonaktiebolaget LM Ericsson, a leading global
provider of telecommunications equipment and related services to
mobile and fixed network operators. Concurrently, Moody's has
affirmed the company's Ba2 corporate family rating, its Ba2-PD
probability of default rating, the senior unsecured long-term
ratings of Ba2, and the senior unsecured medium term note (MTN)
program rating of (P)Ba2.

"The outlook change to positive from stable reflects continued
progress on Ericsson's restructuring programs and overall positive
execution of the company's strategic plan" says Ernesto Bisagno, a
Moody's Vice President -- Senior Credit Officer and lead analyst
for Ericsson. "The positive outlook also reflects Moody's
expectations for additional improvements in Ericsson's credit
metrics", adds Mr Bisagno.

RATINGS RATIONALE

The Ba2 ratings reflect: (1) Ericsson's significant scale and
relevance with a top three global market position in wireless
equipment; (2) strong geographical diversification with sales well
spread across all major regions; (3) strong liquidity and evidence
of support from its main shareholders.

The rating is constrained by (1) cyclicality of the telecom
equipment industry; (2) exposure to intense competition and
technology risk; (3) high investment needs and R&D costs, combined
with material restructuring costs; (4) event risk on the back of
settlement discussion with DOJ and SEC.

Following a strong set of first half results, Moody's adjusted debt
to EBITDA improved to 4.1x (5.9x in 2018), with a total Moody's
adjusted debt of SEK74 billion, which includes SEK10 billion
operating leases post IFRS 16, and pension liabilities of SEK 33.9
billion. Using a higher discount rate based on Swedish covered
mortgage bonds, pensions liabilities would have been around SEK10
billion lower, implying a Moody's adjusted debt to EBITDA of 3.6x.

Over 2019-20, Moody's expects revenues to increase in the low-mid
single digit range, in line with the growth of the RAN markets, and
Moody's adjusted operating margins to continue to strengthen,
driven by additional improvement in the digital service, on the
back of the ongoing renegotiation of the existing contracts and the
increased contribution from the new 5G contracts.

However, the agency expects some quarter-on-quarter earnings
volatility because of seasonality and change in contract mix. In
addition, there will further material restructuring costs of around
SEK2 billion - SEK4 billion (down from previous company guidance of
SEK3 billion - SEK5 billion), expected to decline towards 1% of
sales in 2020.

Operating cash flow in 2019 will benefit from stronger earnings,
but will remain constrained by the SEK10 billion cash out of the
restructuring activity, following the utilization of the existing
provisions.

Moody's anticipates capital expenditure to increase in 2019 mainly
due to the investments supporting the new 5G contracts, and to
decline towards 2% of total sales in 2020. Following the expected
improvement in profits, Moody's also expects the company to return
to higher dividend payouts in 2020.

Based on these assumptions, Moody's expects additional improvements
in Ericsson's credit metrics with Moody's adjusted gross debt to
EBITDA to decline towards 2.5x-3.0x by 2020, which would leave the
company strongly positioned in the rating category.

Ericsson's liquidity is good reflecting its: (1) gross cash balance
of SEK69 billion as of June 2019 (including SEK23.5 billion of
fixed income securities); (2) USD2.0 billion revolving credit
facility (fully undrawn at June 2019), maturing in June 2022 with
no financial covenants and material adverse change conditions for
drawdowns; (3) modest positive FCF generation after dividends; (4)
modest short term-debt maturity mainly including a USD 684 million
equivalent EIB loan which matures in November 2020.

However, there is ongoing event risk arising from the SEC and U.S.
Department of Justice investigations. While the company is in
ongoing settlement negotiations no guidance was provided around the
length of these settlement discussions and size of the financial
impact.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects expectations that operating
performance will continue to improve driven by a combination of
positive organic growth in revenue, additional improvements in the
digital service, and increased contribution from 5G contracts.

WHAT COULD CHANGE THE RATING UP/DOWN

There will be further positive pressure on the rating as a result
of Ericsson maintaining a sustainably robust competitive position
and technological leadership, while continuing to execute its
strategy and restore profitability. Quantitatively, upward pressure
would reflect (1) operating margins and free cash flow after
shareholder distributions continuing to recover towards the high
single digit range; (2) Moody's-adjusted debt/EBITDA trending
towards 2.25x.

The rating could be lowered if the company's operating performance
deteriorates. Quantitatively, downward pressure would arise if (1)
Moody's adjusted operating income turns negative on a sustained
basis, (2) Moody's-adjusted debt/EBITDA remains above 3.5x, or (3)
cash flow or liquidity weaken materially also as a result of the
settlement discussion with the SEC.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Telefonaktiebolaget LM Ericsson

Corporate Family Rating, Affirmed Ba2

Probability of Default Rating, Affirmed Ba2-PD

Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba2

Senior Unsecured Regular Bond/Debenture, Affirmed Ba2

Outlook Actions:

Issuer: Telefonaktiebolaget LM Ericsson

Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Diversified
Technology published in August 2018.
COMPANY PROFILE

With reported net sales of SEK221 billion for the twelve months
ended June 31, 2019, Telefonaktiebolaget LM Ericsson (Ericsson) is
a leading provider of telecommunications equipment and related
services to mobile and fixed network operators globally. Its
equipment is used by over 1,000 networks in more than 180 countries
and around 40% of the global mobile traffic passes through its
systems. In the six months ended June 30, 2018, Ericsson's Networks
division contributed 66% of the group's net sales, followed by
Digital Services at 17%, Managed Services at 13% and its 'Emerging
Business and Other' segment at 4%. The company's net sales are well
diversified geographically across all major regions, with North
America, Europe and Latin America, Asia and Rest of the World each
representing approximately one-quarter of the company's net sales.



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

SCHMOLZ + BICKENBACH: Moody's Downgrades CFR to B3, Outlook Neg.
----------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating of
Swiss-based specialty steel producer SCHMOLZ + BICKENBACH AG to B3
from B2 and the Probability of Default Rating to B3-PD from B2-PD.
Concurrently, Moody's has downgraded to B3 from B2 the instrument
rating of the EUR350 million senior secured notes due 2022 issued
by S+B's wholly owned subsidiary SCHMOLZ+BICKENBACH Luxembourg
Finance S.A. The outlook remains negative.

"The downgrade follows the company's profit warning on July 16,
2019 and reflects Moody's expectation that S+B's operational
underperformance will be more severe and protracted than previously
anticipated leading to leverage in excess of 8.0x in 2019 and over
6.0x in 2020," says Maria Maslovsky, a Vice President -- Senior
Analyst at Moody's, and lead analyst for SCHMOLZ + BICKENBACH.

RATINGS RATIONALE

S+B's recent revision of its full-year EBITDA guidance to EUR130
million-EUR170 million from EUR190 million-EUR230 million
previously is significantly below Moody's previous expectations.
The company reported weakened results during the last twelve months
(LTM) through March 31, 2019 owing to slow end market demand
especially in the automotive segment. S+B further indicated that
the recovery expected in the second half of the year may take
longer to materialise than originally anticipated. The company
noted a declining orderbook in June indicating continuing softness
in demand, although in individual cases the normalization of
customer inventories was reflected in new orders. Still, S+B
indicated that average prices were largely stable owing to the
product mix with the lower priced engineering steel being most
affected.

Based on the revised guidance, Moody's expects S+B's leverage to
rise sharply to exceed 8.0x in 2019 and 6.0x in 2020, thereby
remaining outside of the rating agency's previous guidance for the
B2 rating. More positively, Moody's continues to anticipate that
S+B's free cash flow for the year will be positive driven by the
release of working capital.

SCHMOLZ + BICKENBACH's corporate family rating continues to reflect
(1) the company's high and increasing leverage, with 5.7x
Moody's-adjusted gross debt/EBITDA as of March 31, 2019; (2) the
company's relatively small scale and modest profitability; (3) the
cyclical nature of the primary end markets that S+B serves; and (4)
the company's limited pricing power, especially during a market
downturn. These negatives are partially offset by S+B's (1)
production and technological expertise; (2) focus on the less
commoditised quality and engineering long steel markets; and (3)
well-established, long-term customer relationships, with a
diversified customer base.

STRUCTURAL CONSIDERATIONS

As of March 31, 2019, S+B's debt was comprised of EUR350 million
senior secured bonds due 2022, issued by SCHMOLZ + BICKENBACH
Luxembourg Finance S.A., a Luxembourg public limited liability
company and a wholly owned subsidiary of S+B, EUR164 million drawn
under the EUR375 million senior secured revolving credit facility
(RCF) due 2022, and EUR226 million drawn under the EUR297 million
asset-back programme, as well as EUR23 million of other debt.

The notes and the RCF are supported and benefit from a
first-priority lien over receivables, inventory and certain other
assets, but not property, plant and equipment (PP&E), of the issuer
and the guarantors.

Using Moody's Loss Given Default (LGD) methodology, the probability
of default rating (PDR) is in line with the CFR based on a 50%
recovery rate, as is typical for transactions with senior secured
notes and first-lien senior secured bank debt with any financial
maintenance covenants. The senior secured notes are rated B3, at
the same level as the CFR.

LIQUIDITY PROFILE

Moody's views S+B's liquidity as adequate owing to a cash balance
of around EUR56.8 million and availability of EUR211 million under
the committed EUR375 million (RCF) and of EUR71 million under the
EUR297 million ABS programme. S+B has no maturities until 2022 when
both its bonds and RCF are due. The RCF incorporates three
covenants, tested quarterly: leverage ratio, interest coverage
ratio and minimum net worth. The covenant levels have recently been
relaxed by the banks at S+B's request in anticipation of weakened
performance in 2019. However, Moody's considers that covenant
headroom may still be very tight in the coming quarters.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative rating outlook reflects its expectation of a weakened
operating performance in 2019 leading to sharply increasing
leverage.

WHAT COULD CHANGE THE RATING UP/DOWN

Although not expected at this time, upward pressure on the rating
could occur if the company consistently generates positive free
cash flow after dividends and capital expenditures, and if it
reduces its Moody's-adjusted debt/EBITDA to below 5.0x. Adequate
liquidity, including also adequate headroom under applicable
covenants, would also be needed.

Further downgrade pressure would result from failure to reduce
leverage closer to 6.0x or a meaningful deterioration in liquidity
including eroding headroom under the financial covenants.

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



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

TURK TELEKOMUNIKASYON: Fitch Cuts LT IDRs to BB-, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has downgraded Turk Telekomunikasyon A.S.'s Long-Term
Foreign and Local Currency Issuer Default Ratings and senior
unsecured instrument ratings to 'BB-' from 'BB+'. The Outlook on
the IDRs is Negative.

This follows the sovereign downgrade on the Turkish sovereign and
Country Ceiling on July 12, 2019.

The downgrade reflects TT's exposure to a weakening Turkish economy
where the company is the leading integrated telecoms player in
Turkey and operates the country's largest fixed network and the
smallest of three, but growing, mobile networks.

The Negative Outlook reflects that on the sovereign and the likely
correlation of future downward rating action to further
deterioration of the sovereign - assuming that the Country Ceiling
will move in line with a further downgrade of the sovereign.

The company's national fixed-line coverage, good spectrum position
and growing base of converged customers make TT a strong competitor
in Turkey. Following the downgrade Fitch expects the company to
maintain good headroom below its revised funds from operations
(FFO)-adjusted net leverage downgrade trigger and see clear
capacity for organic deleveraging as EBITDA and FCF continue to
grow.

KEY RATING DRIVERS

Turkey Downgrade Restricts Rating: Due to TT's large exposure to
the Turkish economy the company's Foreign-Currency IDR is capped by
the Turkish Country Ceiling, which was also downgraded to 'BB-' on
July 12, 2019. TT's high levels of foreign-currency borrowing in a
volatile FX environment and exposure to foreign banks for funding
constrain the company's Local-Currency IDR to the sovereign's 'BB-'
Local-Currency IDR.

FX Mismatch: TT has a significant currency mismatch as almost all
of its debt is denominated in US dollars and euros while most of
its free cash flow (FCF) is generated in local currency. The
company hedges part of its debt with an effective hedge ratio at
84% at end-1Q19, an improvement to previous years', which, however,
increases interest expense as hedges themselves are costly. The
Turkish lira depreciated 39% and 34% against the dollar and euro,
respectively, in 2018; however, funds from operations
(FFO)-adjusted net leverage remained flat at 2.1x, supported by
strong cash flow generation.

Long-Term Concession Uncertainty: The ratings factor in some
long-term uncertainty relating to the expiry of TT's fixed-line
concession agreement with the Turkish government in 2026. Fitch
does not rule out the risk that in the lead-up to the concession
termination date, the views of TT's management, TT's main
shareholder and the Turkish government on TT's operational and
financial priorities may diverge. Fitch believes that TT's
management will pursue a conservative financial policy to ensure
that all debt could be repaid before the expiry of the concession
agreement.

DERIVATION SUMMARY

TT has a similar operating profile to other European incumbent
peers. The strength of TT stems mainly from its leading fixed-line
operations in Turkey with its increasing fibre deployment as a key
advantage. It is also a fully integrated telecoms operator with a
growing mobile market share and increasing pay-TV penetration.
Leverage thresholds for its current ratings are tighter than for
European peers due to higher risk from the FX mismatch between
mainly hard-currency debt and Turkish lira-denominated cash-flow
generation. Even though the Turkish government owns a minority
stake in TT, no parent/subsidiary linkage is applicable.

VOLKSWAGEN DOGUS: Fitch Downgrades LT IDR to BB-, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has downgraded Volkswagen Dogus Finansman A.S.'s and
VDF Faktoring A.S.'s Long-Term Issuer Default Ratings to 'BB-' from
'BB+'. The Outlook on the IDRs is Negative.

The rating actions follow the downgrade of Turkey's sovereign
rating and Country Ceiling on July 12, 2019.

KEY RATING DRIVERS

IDRS

The IDRs of VDF and VDFF are driven by support from their
controlling shareholder - Volkswagen Financial Services AG and
ultimately from VW AG (BBB+/Stable). Both companies are
strategically important to VW and VWFS, given their important role
in supporting the group's car sales Turkey. At end-2018 VDF and
VDFF relied heavily on the VW group for 38% and 74%, respectively,
of total funding.

VDF's and VDFF's Long-Term IDRs are capped by Turkey's Country
Ceiling at 'BB-'. The Country Ceiling captures transfer and
convertibility risks and limits the extent to which support from
VWFS or VW can be factored into VDF's and VDFF's Long-Term
Foreign-Currency IDRs.

Both VDF and VDFF are 51%-owned by VW and 49% by Dogus holding.
Dogus is a large Turkish conglomerate and a sole importer of VW
vehicles in Turkey. VW exercises operational control, but Dogus has
significant involvement in running the companies, including three
out of seven representatives on the respective supervisory boards.

Fitch expects no material contagion risk for VDF and VDFF from
Dogus, as the companies are run independently without relying on
Dogus for funding or business origination and are associated to
market participants predominantly within the VW group.

VDF is a leader among both banks and non-bank financial
institutions in auto financing volumes with a 14% domestic market
share at end-2018. VDF finances almost exclusively VW group brands
and operates via 160 sale points across Turkey.

VDFF provides financing to small- to mid-size companies - primarily
Turkish dealers of VW brands. Thus its customer base is limited to
130 dealers and a small number of large fleet management companies.
VDFF finances around a quarter of VW's total sales in Turkey.
VDFF's receivables book is short-term at around 60 days and subject
to high seasonality with peaks around year-end.

RATING SENSITIVITIES

IDRS

VDF's and VDFF's Long-Term IDRs are likely to move together with
Turkey's Country Ceiling, which is currently in line with Turkey's
sovereign IDR that is on Negative Outlook.

Diminished support from VW, for example, as a result of dilution of
ownership in the companies, a loss of operational control or
diminishing of importance of the Turkish market could trigger a
downgrade.

The rating actions are as follows:

Volkswagen Dogus Finansman A.S. and VDF Faktoring A.S.:

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

Short-Term IDRs affirmed at 'B'

Support Ratings affirmed at '3'



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

BAMS CMBS 2018-1: DBRS Confirms BB(low) Rating on Class E Notes
---------------------------------------------------------------
DBRS Ratings Limited confirmed the ratings on all classes of notes
issued by BAMS CMBS 2018-1 DAC (the Issuer) as follows:

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

All trends are Stable.

Since issuance, the transaction has performed strongly with
increases in occupancy and gross contracted rent. However, further
cash generation potential is undercut by the pending departure of
one top tenant in the portfolio, the increasing difficulty in
achieving higher occupancy and the uncertain outcome of Brexit —
hence, the rating confirmations.

The Issuer is the securitization of a GBP 315.3 million (67.5%
loan-to-value (LTV)) floating-rate senior commercial real estate
loan advanced by Morgan Stanley Principal Funding, Inc. (novated
from Morgan Stanley Bank N.A.) and Bank of America Merrill Lynch
International Limited to borrowers sponsored by Blackstone Group
L.P. (Blackstone or the sponsor). The acquisition financing was
also accompanied by a GBP 58.4 million (80% LTV) mezzanine loan
granted by LaSalle Investment Management and Blackstone Real Estate
Debt Strategies (BREDS), each holding 51% and 49% interest of the
mezzanine loan, respectively. BREDS, however, is disenfranchised
and thus cannot exercise any voting rights so long as Blackstone
holds equity interest in the portfolio. The mezzanine loan is
structurally and contractually subordinated to the senior facility
and is not part of the transaction.

The senior loan is backed by 59 urban logistics and multi-let
industrial properties (for more information regarding the
portfolio, please refer to the related DBRS rating report). As at
inception, 92.2% of the portfolio's net lettable area was occupied
by approximately 300 tenants with long-term leasehold interests in
certain estates. The top ten tenants contribute 28.4% to the gross
rental income, and the then-largest tenant, Sainsbury's, is paying
rent but not occupying the space.

As at Q2 2019, the occupancy has slightly increased to 94.5% due to
leasing up of some vacant units; as such, the contracted gross rent
has increased to GBP 30.4 million from GBP 28.2 million at
issuance, while the weighted-average-unexpired-lease-to-break has
remained at 4.9 years. However, the uplift on net rent will take
effect only after the rent-free period granted under the new lease
agreements. In DBRS's opinion, the current portfolio is performing
near-peak occupancy, and it will become increasingly difficult to
reach higher occupancy, especially considering the confirmed
departure of Sainsbury's at its lease expiry on September 13, 2019.
Although the sponsor has claimed a large amount of dilapidation
compensation that is expected to help the re-letting process (via
refurbishment and/or free rent to the new tenant), which will take
approximately 18 months to 24 months, the departure of the
second-largest tenant (MWUK Limited, now the current largest tenant
in the portfolio) will decrease the contracted gross rent by 4.1%
and the physical occupancy by 3.8%. DBRS has underwritten a higher
vacancy level at issuance to reflect such vacancy risk.

There has been no property disposal since issuance.

Overall, the strong performance of the portfolio in the past year
has demonstrated the sponsor's management ability; however, it
remains unclear whether the Sainsbury's property would find a new
occupier any time soon. Moreover, the increased likelihood of a
no-deal Brexit may affect the portfolio's performance. As such,
DBRS has maintained its current ratings.

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

BURY FC: At Risk of Being Kicked Out of Football League
-------------------------------------------------------
Dave Fraser at The Sun reports that Bury could be kicked out of the
Football League in just two weeks after being handed a 12-point
deduction amidst their financial turmoil.

Club owner Steve Dale arranged a Company Voluntary Arrangement
(CVA) proposal last month to see the team's football creditors paid
in full, The Sun recounts.

But Bury must now "meet all outstanding requirements of the
League's insolvency policy" or be expelled from the Football
League, The Sun notes.

Should the club provide the "missing information" by the deadline
they should be allowed to stay in the EFL, The Sun states.

According to The Sun, even if Bury fail to hand over the documents
in time, they may be afforded a deadline extension.

EFL executive chair, Debbie Jevans, claimed they will do whatever
it takes to ensure Bury retain their status, but admitted they have
work to do, The Sun relates.

Despite gaining promotion to League One last season, Bury staff and
players experienced issues with delayed payment at the end of the
2018-19 campaign, The Sun discloses.

Football creditors were owed GBP950,652, according to the proposal
while unsecured creditors are owed GBP5,982,765, including GBP3.6
million to Dale, The Sun states.

Dale put the club up for sale in April as they look to find new
ownership, The Sun recounts.

Even if they retain their Football League status, Bury already face
relegation back to League Two, starting the season with a 12-point
deduction and 22 trialists on their books, The Sun notes.


EI GROUP: Moody's Reviews for Downgrade B1 CFR Over Stonegate Deal
------------------------------------------------------------------
Moody's Investors Service placed under review for downgrade the B1
corporate family rating and the B1 rating of Ei Group Plc's GBP275
million senior secured bond due in 2031. The outlook has been
changed to Ratings Under Review from Stable.

RATINGS RATIONALE

The review follows the announcement on July 18, 2019 that the
boards of directors of EIG and Stonegate Pub Company Bidco Limited,
a wholly-owned subsidiary of Stonegate Pub Company Limited
(Stonegate, B2 developing outlook) have reached agreement on the
terms of a recommended all-cash acquisition of the entire share
capital of EIG for approximately GBP1.3 billion. The implied
enterprise value of GBP2.97 billion is a multiple of approximately
11.4 times EIG's underlying EBITDA of GBP261 million for the fiscal
year 2018 ended on September 30,, adjusted for the disposal of 370
commercial properties.

The acquisition is expected to become effective in the first
quarter of 2020, subject to satisfaction of the customary closing
conditions and approvals from the relevant authorities. Upon
completion of the acquisition, EIG's ratings will be aligned with
the rating of Stonegate.

The acquisition price will be financed by a combination of equity
to be invested by Stonegate and the TDR Funds, committed financing
from the AlbaCore Funds and committed financing from three banks.
There was no public disclosure on the debt and equity mix following
the acquisition, and therefore leverage in the combined entity is
not known and could be higher in the combined entity. EIG's
Moody's-adjusted net debt / EBITDA stood at 6.3x for the 12 months
to March 31, 2019.

The acquisition will trigger a mandatory redemption of EIG's
corporate bonds including the B1 rated GBP275 million senior
secured bond due in 2031. Moody's understands that Stonegate has
secured sufficient committed facilities to cover the full amount of
redemptions.

The review, which Moody's expects to be resolved by Q1 2020, will
focus on the combined entity's (1) business profile, strategy, and
financial policies (2) leverage and free cash flow; and (iii)
whether Moody's rates the combined entity under the Restaurant
Industry methodology or the REITs and Other Commercial Real Estate
Firms methodology.

STRUCTURAL CONSIDERATIONS

EIG's Corporate Family Rating (CFR) is equal to a senior secured
rating given more than 90% of the company's funding is secured. The
B1 secured bond rating is in line with the company's B1 CFR.

FACTORS THAT COULD LEAD TO AN UPGRADE

  -- Higher revenue and operating profits for the company that
translates into improved financial metrics, with consolidated
Moody's-adjusted net debt/EBITDA towards 6x and fixed charge
coverage around 2.5x, both on a sustained basis

  -- Moody's-adjusted gross debt/total assets towards 50%

  -- Maintaining good liquidity along with maintaining ample
capacity under the company's various financial covenants

FACTORS THAT COULD LEAD TO A DOWNGRADE

  -- A deterioration in like-for-like (LFL) net income or
profitability that exerts pressure on EIG's leverage or fixed
charge coverage, such that the company's consolidated net
debt/EBITDA rises above 7.5x or its fixed charge coverage falls
below 1.75x

  -- Moody's-adjusted gross debt/total assets is sustained well
above 60%

  -- A weakening of the company's liquidity profile, including any
concerns over capacity tightening under any of the various
financial covenants

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in September 2018.

PROFILE

EIG is the largest leased and tenanted pub operator in the UK.
Together with its wholly owned subsidiary, Unique Pub Company
(Unique), the company has a large and geographically diverse GBP3.6
billion estate of more than 4,000 pubs in England and Wales, which
generated GBP695 million in annual revenue and GBP287 million in
underlying EBITDA in fiscal 2018

EI GROUP: S&P Places 'B' ICR on Watch Negative Over Stonegate Deal
------------------------------------------------------------------
S&P Global Ratings placed its ratings on U.K.-based Ei Group PLC,
including its 'B' issuer credit rating, on CreditWatch with
negative implications. S&P also placed on CreditWatch with negative
implications the 'BB-' issue-level rating on the group's existing
senior secured notes and the 'B' rating on its unsecured notes due
2024.

The CreditWatch placement follows the announcement that the boards
of directors of Ei Group PLC (B/Stable/--) and Stonegate Pub Co.
Ltd (B-/Stable/--) have reached an agreement for an all-cash offer
for Ei's shares, at an implied enterprise value of nearly GBP3
billion.

With the acquisition of Ei, the U.K.'s largest leased and tenanted
pub operator with a portfolio of over 4,000 pubs, Stonegate, the
fourth-largest managed pub operator in the U.K., will gain
substantial scale and become the largest pub operator in the U.K.
with a combined revenue base of about GBP1.5 billion. The combined
entity will benefit from a greater diversification and larger
economies of scale. In addition, there is scope for potential
synergies that could arise from the ability of Stonegate to
leverage its strong brands and expertise within Ei Group's large
portfolio. However, in the backdrop of an extremely competitive
drinking and eating out market in the U.K., an integration of this
magnitude entails risks. In the short to medium term, S&P believes
that the group could incur significant integration and
restructuring costs that could weigh down profitability and cash
flow generation, before potential synergies are realized.

S&P said, "In our view, the operating environment for pubs in the
U.K. is challenging, with persistently rising costs that continue
to weigh on margins. While the pub sector is relatively
drink-focused, we see some added pressure on food sales. These
continue to be hit by cautious customer spending, competition in
the casual dining sector, and the increase in food delivery service
options. We expect U.K. pubs to face continuous rising cost
pressures, primarily on account of the rising National Living Wage,
increasing food and drinks costs due to the weaker pound sterling,
and a surge in utilities expenses." This, combined with very weak
real wage growth in the U.K. and high competition, is making it
increasingly difficult for pub operators to pass on higher costs
through price increases to consumers. Therefore, management efforts
to secure synergies and integration benefits across the Stonegate
and Ei pubs, continuously boost operating performance, and manage
costs to maintain margins will continue to be key in this tough
competitive environment.

The transaction is subject to approval by the requisite majorities
of Stonegate's shareholders at the Court Meeting and of EIG
Shareholders at the General Meeting. The requisite European
Commission and/or the Competition and Markets Authorit anti-trust
clearances also need to be obtained, together with the regulatory
clearances from the Financial Conduct Authority. Consequently, S&P
expects the acquisition to become effective in the first quarter of
2020.

The transaction values Ei Group at nearly GBP3 billion enterprise
value, based on an 11.4x multiple of Ei Group's underlying EBITDA
of GBP261 million for the financial year ended Sept. 30, 2018.
Excluding debt, Ei's equity is valued at approximately GBP1.3
billion.

S&P said, "We understand that the transaction will be funded by a
mix of equity from Stonegate and its shareholder, the private
equity group TDR Capital of approximately GBP1.3 billion (of which
GBP750 million to GBP800 million will be in form of new cash
equity) and committed senior and second-lien financing from banks,
for a total of GBP2.2 billion. A subordinated payment-in-kind (PIK)
financing of GBP325 million from the AlbaCore Funds will also be
used to finance the acquisition. In addition to financing the
acquisition consideration, the proceeds will be used to refinance
all existing debts both at Ei Group and Stonegate (excluding the
securitized debt at the Unique Pub group, which is part of Ei) as
well as to finance any fees, costs, and expenses incurred in
connection with the transaction.

"Following the recent disposals of commercial properties, we
forecast Ei Group's S&P Global Ratings-adjusted debt to EBITDA to
improve by around 0.5x to around 7.0x-–slightly better than 7.5x
for the financial year ended Sept. 30, 2018. Historically,
aggressive debt-funded opportunistic acquisitions and ongoing high
capital expenditure have resulted in Stonegate's leverage remaining
elevated, with adjusted debt to EBITDA at about 7.5x-8.0x and
negative free cash flows.

"Our preliminary forecasts indicate that, after the transaction,
S&P Global Ratings-adjusted combined pro forma leverage could be
within 7.5x to 8.5x range, depending on the quantum of debt and
targeted synergies, together with the impact of financing,
restructuring, and integration costs on the combined group's
earnings and cash flows. Smooth execution of the acquisition,
realization of synergies, and limited spending on restructuring and
integration costs could result in some deleveraging below 7.5x over
a timeframe of 12 to 24 months following the completion of the
transaction.

"We will resolve the CreditWatch when we have a more information
and details to complete our review of the combined group's
strategy, operations, and capital structure on completion.
Depending on our expectations for its credit metrics, this could
result in an affirmation or downgrade.

"However, due to the potential improvement in the combined group's
competitive strength due to scale benefits, particularly in the
managed pub segment, we believe that a downgrade of Ei is somewhat
less likely than an affirmation. If a downgrade is the outcome of
our review, we expect it would likely be limited to one notch.

"Although not in our base case scenario, we could lower the issuer
credit rating by more than one notch if we viewed the new leveraged
capital structure as unsustainable over the long term.

"We could also discontinue the ratings if the debt at the Ei Group
(excluding the securitized debt at the Unique Pub group) is
refinanced and repaid."

GALAPAGOS HOLDING: Moody's Affirms Caa3 CFR, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service revised the probability of default rating
of Galapagos Holding S.A. to Ca-PD/LD from Ca-PD. At the same time
Moody's affirmed the company's corporate family rating at Caa3 and
the rating pertaining to the senior unsecured notes of Galapagos at
C and the rating pertaining to the senior secured notes issued by
Galapagos S.A., a subsidiary of Galapagos, at Caa2. The outlook
remains negative.

RATINGS RATIONALE

"Moody's decision to append the /LD designation to the probability
of default rating was triggered by the non-payment of interest due
under both the senior secured and the senior unsecured notes on
June 15 and the failure to cure this missed interest payment during
the contractual 30 days grace period," said Oliver Giani, Moody's
lead analyst for Galapagos. "The negative outlook takes into
account that so far no agreement has been reached with the holders
of the senior unsecured notes, which mirrors the execution risk of
the announced debt restructuring", he added.

The Ca-PD/LD probability of default rating (PDR) and the Caa3 CFR
reflect Galapagos' unsustainable capital structure and Moody's
expectation that the proposed restructuring will lead to a recovery
of above 50% on corporate family level (in relation to EUR 703
million debt outstanding), based on the expectation that the recent
restructuring proposal will be implemented.

The rating also factors in: (1) an improved outlook for the
business driven by the restructuring measures initiated and
supported by certain market tail winds, (2) the critical nature of
the heat exchanger product, which typically represents a small
percentage of the overall cost of a large power plant or asset; (3)
the company's strong position in the global heat exchanger market
with a broad product portfolio, global production capability and
geographical diversification; (4) long-standing customer
relationships and technological know-how; and (5) continuing
support from majority shareholder Triton, illustrated by its
willingness to provide up to EUR 140 million of equity and/or
subordinated debt.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the execution risk of the announced
debt restructuring transaction which, if not successful, could
potentially result in insolvency proceedings for Galapagos S.A. and
Galapagos Holding S.A. and an even lower recovery at the corporate
family level, affecting the unsecured creditors and the secured
noteholders.

LIQUIDITY

While the current weakness of liquidity has been among the factors
that led to the expected default, after the debt restructuring,
Galapagos' liquidity position should be improved to pursue its
operations. As part of the proposed transaction Triton Fund IV
agreed to provide an EUR24.8 million interim funding to Galapagos
Bidco S.a.r.l. by way of an additional revolving credit facility
which should leave the company with around EUR 10 million headroom
against its business plan.

WHAT COULD CHANGE THE RATING -- UP/DOWN

The CFR of Galapagos could be downgraded should the restructuring
transaction fail with recovery prospects materially lower than
currently expected.

An upgrade of the ratings could result from the debt restructuring,
which will reduce the debt burden and if supported by a recovery in
operating performance.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.

COMPANY PROFILE

Galapagos Holding S.A. is a holding company, incorporated in
Luxembourg, for a group of entities involved in the manufacturing
of heat exchangers for a variety of different industrial
applications. These primarily include HVAC & refrigeration, the
power generation and oil & gas sectors but also the food &
beverages, chemicals and marine business areas.

Galapagos was formed through a de-merger from its previous parent,
GEA Group Aktiengesellschaft (a German engineering company) in May
2014, and was acquired by Triton Partners, a private equity group.
In 2018, Galapagos achieved pro-forma revenues of EUR901 million
from continuing operations. Galapagos Holding S.A. and Galapagos
S.A. announced on June 13, 2019 that they changed their head office
and principal place of business to the UK.

JISTCOURT SOUTH: Puts Assets Up for Sale Following Administration
-----------------------------------------------------------------
Business Sale reports that administrators for the Port Talbot
construction contractor Jistcourt South Wales Limited have revealed
that the company is selling off its assets after entering
administration earlier this year.

The company first appointed Huw Powell--
Huw.Powell@begbies-traynor.com-- and
Katrina Orum--katrina.orum@begbies-traynor.com-- of Begbies Traynor
as joint administrators on June 27, 2019, after announcing that the
company had fallen into administration as a result of "challenging,
loss-making projects" that left it in debt, Business Sale relates.

According to Business Sale, Mr. Powell confirmed that the company
managed to successfully complete one of its remaining construction
projects for Bristol City Council following the announcement, but
has since been forced to make a further 11 redundancies.

"A small number of employees are still in place while we gather
information to help us fulfil our duties as administrators,"
Business Sale quotes Mr. Powell as saying.  "We continue to work
with the remaining contract employers, with the assistance of an
external quantity surveyor in an attempt to maximize returns for
creditors."

Chartered surveyors Eddisons have now been brought in to manage an
auction of the company's assets, offering potential buyers the
chance to view the lots of the previously highly successful firm at
sites in Tenby and Port Talbot on July 24, Business Sale discloses.


The administrators have confirmed that they will be issuing
statements of proposals to the company's creditors within the next
month, Business Sale notes.


LANDMARK MORTGAGE NO. 3: S&P Affirms B+(sf) Rating on Class D Notes
-------------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Landmark Mortgage
Securities No.3 PLC's class A, B, and D notes. At the same time,
S&P raised its rating on the class C notes.

S&P said, "The rating actions follow the implementation of our
counterparty criteria and assumptions for assessing pools of
residential loans. They also reflect our full analysis of the most
recent transaction information that we have received and the
transaction's current structural features.

"Upon revising our structured finance counterparty criteria, we
placed our ratings on all classes of notes from these transactions
under criteria observation. Following our review of the
transaction's performance, the application of our structured
finance counterparty criteria, and our updated assumptions for
rating U.K. residential mortgage-backed securities (RMBS)
transactions, our ratings on these notes are no longer under
criteria observation.

"Our ratings on this transaction's notes are capped at our 'A'
long-term issuer credit rating (ICR) on the bank account provider,
Barclays Bank PLC, following its short-term rating falling below
'A-1' and its failure to take remedy action as we delink our cash
flow results of the liquidity facility provider (Natwest Markets)
for ratings above the provider's ICR rating of 'A-'.

"After applying our updated U.K. RMBS criteria, the overall effect
in our credit analysis results in a decrease in the
weighted-average foreclosure frequency (WAFF) at higher rating
levels. This is mainly due to the loan-to-value (LTV) ratio we used
for our foreclosure frequency analysis, which now reflects 80% of
the original LTV ratio and 20% of the current LTV ratio.
Additionally, we no longer apply the interest-only penalty to
buy-to-let loans. Our weighted-average loss severity assumptions
have decreased at all rating levels due to the revised jumbo
valuation thresholds and the lower current loan-to-value ratio."

  WAFF And WALS Levels

  Rating level WAFF (%) WALS (%)
  AAA         30.27    44.62
  AA           23.46    37.03
  A          19.84    724.03
  BBB           816.03   16.32
  BB            12.15    11.34
  B             11.18    7.87

  WAFF--Weighted-average foreclosure frequency.
  WALS--Weighted-average loss severity.

S&P has determined that its assigned ratings on the classes of
notes should be the lower of the rating as capped by its
counterparty criteria and the rating that the class of notes can
attain under our U.K. RMBS criteria.

Landmark 3 is a U.K. nonconforming RMBS transaction originated by
Unity Homeloans, Infinity Mortgage, and GMAC-RFC/Amber Homeloans.

  Ratings List

  Landmark Mortgage Securities No.3 PLC
  Class Rating to Rating from
  A    A (sf)   A (sf)
  B     A (sf  ) A (sf)
  C    BBB+ (sf) BB+ (sf)
  D     B+ (sf)   B+ (sf)

OSPREY ACQUISITIONS: Fitch Affirms BB LT IDR, Outlook Negative
--------------------------------------------------------------
Fitch Ratings has revised the Outlook on Anglian Water Services
Financing Plc senior secured class A (both wrapped and unwrapped)
and class B debt to Negative from Stable, while affirming their
ratings at 'A' and 'BBB+', respectively. Fitch has also affirmed
the holding company Osprey Acquisitions Limited Long-Term Issuer
Default Rating at 'BB' with Negative Outlook.

The revision of the Outlook to Negative follows Ofwat's draft
determinations, which revealed a significant decrease in allowed
totex versus Anglian Water Services Limited's (AWS, the operating
company) own business plan. This change has led Fitch to revise the
outperformance assumptions downwards. Fitch no longer expects the
company to achieve significant totex outperformance in the next
regulatory period AMP7, resulting in a weaker forecast financial
profile.

The Outlook could be revised to Stable if totex allowances are
increased at final determinations or if the company demonstrates
its ability to earn financial rewards for operational
outperformance in AMP7 over and above Fitch's current assumptions.
The Outlook could also be revised to Stable on material balance
sheet-strengthening. Given uncertainty around final cost allowances
and operational performance, an Outlook revision may take until the
financial year to March 2021 results are announced.

The affirmation of Osprey's rating with a Negative Outlook reflects
its expectation of weak dividend cover capacity and uncertainty
over the financial profile of AWS. Higher expected gearing at AWS
as a result of the draft determinations intensifies pressure on
Osprey's financial profile. Osprey's cash flows and debt service
rely significantly on dividends from AWS, as well as on shareholder
support.

AWF is the debt-raising vehicle of AWS. AWS is one of 10 appointed
water and sewerage companies in England and Wales.

KEY RATING DRIVERS

Downward Revision of WACC: In the draft price determinations
published on 18 July 2019 Ofwat has decreased its allowed cost of
equity by 57bp to 6.56% in nominal terms. This reduction reflected
new market data available and resulted in the allowed wholesale
weighted average cost of capital (WACC) going down by 22bp. For AWS
in particular, the indicated change in WACC would result in around
GBP20 million lower EBITDA and post-maintenance cash flow, with
forecast post-maintenance interest coverage ratios (PMICRs) being
most impacted.

Large Total Cost Challenge: Draft determinations propose AWS's
wholesale totex allowances at 21% below the level requested by the
company in its April 2019 business plan. Net of scope reductions,
totex efficiency challenge is approximately GBP1.2 billion or 19%
(real, in 17/18 prices), split evenly between base and enhancement
expenditure. A significant part of the challenge is driven by the
regulator assuming slower growth than the company, including new
customer connections. Ofwat noted it had not yet fully considered
the company's evidence to support proposed totex.

Outperformance Assumptions Revised: Based on the wholesale totex
allowances set in the draft determinations (GBP5 billion in 17/18
prices), AWS would have much less funding to meet its ambitious
performance commitments in AMP7. Consequently, Fitch has revised
its totex outperformance assumptions to 0% from 6% previously.
Although the GBP1.2 billion efficiency challenge could point
towards underperformance, Fitch takes into account flexibility
around totex allowances driven by the true-up mechanism related to
growth.

Forecast Financial Profile Borderline: Fitch expects AWS's
financial profile to be under pressure from lower allowed WACC and
totex. Its preliminary forecast indicates that AWS's gearing, cash
flow-based PMICR and nominal PMICR would be weak for the current
ratings in AMP7. Fitch expects net senior adjusted
debt-to-regulatory capital value (RCV) of around 78% at FYE25,
above its negative rating sensitivity of 77%, and total senior
cash-based PMICR and nominal PMICR of around 1.2x and 1.3x, below
the negative sensitivities of 1.3x and 1.6x.

Nominal PMICR Rating Sensitivity: Fitch will be monitoring nominal
PMICRs alongside the cash flow-based ones to complement its
assessment of companies' financial profiles and cost of debt
performance. For AWS Fitch has set negative nominal PMICR
sensitivities at 1.8x for the class A debt and at 1.6x for total
senior debt.

DERIVATION SUMMARY

AWS

The company's senior secured ratings and credit metrics reflect the
highly geared nature of the company's secured covenanted structure
versus peers such as United Utilities Water Limited (LT IDR:
BBB+/Stable, senior unsecured A-) and Wessex Water Services Limited
(LT IDR: BBB+/Negative, senior unsecured A-), which have lower
leverage and do not have covenanted secured structures. The
company's higher ratings than that of similar peers with covenanted
structures such as Southern Water Services (Finance) (senior
unsecured class A debt BBB+/Stable) reflects stronger credit
metrics and more robust financial and regulatory performance.

No Country Ceiling constraints affect the ratings.
Parent/Subsidiary Linkage is applicable but given the regulatory,
structural and contractual ring-fenced structure of the group it
does not impact the ratings.

Osprey

Its higher rating than that of peers such as Greensands UK Limited
(B-/RWN) and Kemble Water Finance Limited (BB-/Negative) reflects
the more robust financial profile of Osprey and AWS's stronger
regulatory performance.


KEY ASSUMPTIONS

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

  - AMP6's revenue largely in line with price determinations; 7%
totex outperformance (net of announced re-investment of GBP165
million), around GBP60 million outcome delivery incentives rewards
in 17/18 prices, of which GBP50 million will flow through into
AMP7's cash flow

  - Opening FY21 RCV after true-up adjustments of GBP8,030 million

  - Long-term RPI of 3% and long-term consumer price inflation
including housing costs (CPIH) approximates 2% in AMP7

  - Allowed wholesale WACC in AMP7 decreases to 2.08% (RPI-based)
and 3.08% (CPIH-based) in real terms, excluding retail margins

  - 50% of the RCV is RPI-linked and another 50% plus capital
additions is CPIH-linked, starting from FY21

  - 6 month Libor of 1% in FY21-FY25

  - Average pay-as-you-go rate of 47%, average run-off rate of 4.8%
in FY21-FY25

  - AMP7 wholesale totex of GBP5 billion in 17/18 CPIH deflated
prices (net of pension deficit repair)

  - Zero totex outperformance and around GBP36 million ODI-related
rewards in AMP7 (in 17/18 CPIH deflated prices)

  - Retail EBITDA of GBP18 million p.a. and unregulated EBITDA of
GBP13 million p.a. on average during AMP7

  - AWS's average cash cost of debt decreases to 3.2% in FY25 from
3.8% in FY19

  - Around 60% of total debt is index-linked at all times and all
new index-linked debt raised from FY20 is CPI-linked

  - AWS's average total cost of debt decreases to 5% in FY25 from
5.9% in FY19

  - Pension deficit recovery payments of around GBP14 million p.a.
in AMP7 (nominal)

  - AWS's total AMP7 dividend of GBP121 million (sufficient to
cover debt service and head office costs at Osprey) and
significantly reduced dividend in FY19-FY20

  - No equity injections from shareholders

In addition, for Osprey Fitch assumes:

  - Incremental debt at holding company level to remain at GBP450
million throughout AMP7

  - Average total cost of debt is 4.7% in FY19-FY23, rising to 5.2%
in FY24-FY25

  - Average head office and pension deficit repair cost of around
GBP13 million p.a. in FY19-FY25


RATING SENSITIVITIES
AWS

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

  - Fitch could revise the Outlook to Stable if AWS demonstrates
ability to maintain its financial profile in line with its rating
sensitivities during the upcoming price control, including:

  - For class A debt forecast gearing below 67%, cash PMICR above
1.6x and nominal PMICR above 1.8x

  - For total senior debt forecast gearing below 77%, cash PMICR
above 1.3x and nominal PMICR above 1.6x on a sustained basis

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

  - AWS's expected financial profile in AMP7 significantly weaker
than the rating sensitivities as stated.

Osprey:

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

  - Upside is limited given the Negative Outlook. Fitch may revise
the Outlook to Stable if AWS and Osprey materially reduce
regulatory gearing and dividend cover capacity is sustained above
3.0x throughout AMP6 and AMP7

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

  - A sustained drop of expected dividend cover capacity below 3x,
for example due to lower-than- assumed outperformance at AWS

  - Forecast group gearing above 82% for a sustained period

  - Marked deterioration in operating and regulatory performance of
AWS


LIQUIDITY AND DEBT STRUCTURE

AWS:

As at FYE19, the company had GBP217.3 million in cash, excluding
GBP40 million restricted cash, GBP297 million in short-term
investments and GBP600 million of undrawn working capital and capex
facilities maturing through to 2022. Over the next 12 months, Fitch
expects positive FCF of GBP36.9 million and debt maturities of
GBP353.1 million. Overall, liquidity is sufficient to support debt
maturities and FCF for at least the next 18 months.

Osprey:

As at FYE19, the holding company had GBP11.4 million in
unrestricted cash and a GBP250 million undrawn sustainable bank
facility due in 2024. The next debt maturity is a GBP210 million 5%
fixed-rate bond maturing in 2023. Fitch expects the company's debt
service and head office needs to be covered by dividends from AWS.
Overall, liquidity is sufficient to support debt maturities and FCF
for at least the next 18 months.

SUMMARY OF FINANCIAL ADJUSTMENTS

  - Cash interest for cash PMICR adjusted for 50% annual inflation
accretion from RPI swaps with five-year pay-down provisions

  - Statutory cash interest reconciled with AWS's and Osprey's
investor reports

  - Statutory total debt reconciled with AWS's and Osprey's
investor reports

  - AWS's and Osprey's net debt adjusted to reflect restricted cash
of GBP40 million

RESIDENTIAL MORTGAGE 30: S&P Affirms 'BB+' Rating on F1-Dfrd Notes
------------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Residential
Mortgage Securities 30 PLC's (RMS 30 PLC's) class C-Dfrd and
X1-Dfrd notes. S&P has affirmed the credit ratings on all the other
notes.

The rating actions follow the implementation of our revised
methodology and assumptions for assessing pools of U.K. residential
loans. They also reflect S&P's full analysis of the most recent
transaction information that it has received and the transaction's
structural features.

S&P said, "Upon revising our U.K. residential mortgage-backed
securities (RMBS) methodology, we placed our ratings on all classes
of notes from these transactions under criteria observation.
Following our review of the transaction's performance and after
applying our updated assumptions for rating U.K. RMBS transactions,
our ratings on these notes are no longer under criteria
observation.

"After applying our updated U.K. RMBS criteria, the overall effect
in our credit analysis results is a marginal decrease in the
weighted-average foreclosure frequency. This is mainly due to the
loan-to-value (LTV) ratio we used for our foreclosure frequency
analysis, which now reflects 80% of the original LTV and 20% of the
current LTV. The total level of arrears stands at 22.9% and has
been stable since closing. In our credit analysis, we also took
into account that a portion of the borrowers in the pool benefitted
from capitalization of arrears, and we considered these borrowers
to have a higher probability of default. Our weighted-average loss
severity assumptions have decreased at all rating levels driven by
a reduction in current loan-to-value (CLTV) and the revised jumbo
valuation thresholds."

  Credit Analysis Results
  Residential Mortgage Securities 30 PLC  
  Rating level WAFF (%) WALS (%)
  AAA        51.90  31.71
  AA           45.72  24.72
  A              40.98  14.04
  BBB           33.78  8.63
  BB              25.26  5.82
  B               23.09  3.87
  
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-  average loss severity.

Interest payments on the class B-Dfrd and C-Dfrd notes can be
deferred until the tranche becomes the most senior outstanding, at
which point previously deferred interest is due immediately. S&P
said, "In our view, the presence of this interest deferral
mechanism while a given class is not the most senior outstanding is
not commensurate with our 'AAA' rating definition. The ratings on
the class B-Dfrd and C-Dfrd notes therefore cannot exceed a 'AA+
(sf)' rating level for as long as they are not the most senior
outstanding, despite our cash flow analysis showing they are able
to pass our 'AAA (sf)' stresses."

Due to structural features, payment of interest and repayment of
principal on the class X1-Dfrd notes is entirely reliant upon
excess spread. S&P said, "In our view, given the current level of
arrears and the collateral's nonconforming nature, payment of
interest and repayment of principal on the class X1-Dfrd notes is
dependent upon favorable business, financial, and economic
conditions. In the event of adverse economic conditions, the issuer
is not likely to have capacity to meet its financial commitment on
the obligation. However, in our view, the likelihood of repayment
of these notes has improved since closing because the reserve fund
(which ranks higher than payments to class X1-Dfrd) is now at
target. In addition, almost half of class X1-Dfrd's initial balance
has been repaid. At the same time, despite the transaction's high
level of arrears, it has consistently generated excess spread to
mitigate losses in the collateral and to amortize the class X1-Dfrd
notes. We have therefore raised our rating to 'CCC+ (sf)' on this
class of notes, in line with our "Criteria For Assigning 'CCC+',
'CCC', 'CCC-', And 'CC' Ratings," published on Oct. 1, 2012."

S&P said, "We have affirmed our ratings on the class A, B-Dfrd,
D-Dfrd, E-Dfrd, and F1-Dfrd notes because our analysis indicates
that the available credit enhancement for these classes is
commensurate with the currently assigned ratings.

"The ratings on the notes are not constrained by our counterparty
criteria because the replacement triggers on both the collection
account and the transaction account are in line with our revised
counterparty criteria published in March 2019.

"Our conclusions from our operational and legal risk analysis
remain unchanged since closing."

RMS 30 PLC is a U.K. nonconforming RMBS transaction that closed in
2017. Kensington Mortgage Co. Ltd., Money Partners Ltd., and
Infinity Mortgages Ltd. originated the loans.

  Ratings List

  Residential Mortgage Securities 30 PLC  

  Class Rating to Rating from
  C-Dfrd AA+ (sf) AA (sf)
  X1-Dfrd CCC+ (sf) CCC (sf)

  Class  Rating
  A      AAA (sf)
  B-Dfrd AA+ (sf)
  D-Dfrd A+ (sf)
  E-Dfrd A (sf)
  F1-Dfrd BB+ (sf)


RIBBON FINANCE 2018: DBRS Confirms BB Rating on Class G Notes
-------------------------------------------------------------
DBRS Ratings Limited confirmed the ratings on all classes of the
Commercial Mortgage-Backed Floating Rate Notes Due April 2028
issued by Ribbon Finance 2018 PLC (the Issuer):

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

All trends are Stable.

The rating confirmations reflect the transaction's overall stable
performance since issuance.

Ribbon Finance 2018 PLC is the securitization of a GBP 449.8
million senior loan advanced to Ribbon Bidco Limited to provide
partial acquisition financing for the Dayan family (the Sponsor) to
acquire Lapithus Hotels Management UK (LHM) and 20 hotels (the
transaction). The initial lender is Goldman Sachs Bank USA and the
transaction was arranged by Goldman Sachs International (together,
Goldman Sachs).

The senior loan is secured by 20 hotels located in the U.K.: three
hotels operate under the Crowne Plaza brand and 17 hotels are
flagged by Holiday Inn (the portfolio). GBP 69.2 million was also
advanced to the Sponsor as a mezzanine loan which is structurally
and contractually subordinated to the senior loan and does not form
part of the transaction.

As of the April 2019 interest payment date, the total debt was GBP
444.18 million, representing a 64.5% loan-to-value ratio (LTV)
following the senior loan's amortization of 1% since issuance; the
LTV at closing was 65%. The performance metrics reported in the Q1
2019 servicer report are mostly in line with the business plan.
Hotel room occupancy across the portfolio for the last 12 months
(LTM) was 84.27% and for the last three months was 75.83%. Reported
LTM revenue was GBP 182.0 million and net operating income (NOI)
was GBP 48.3 million. Occupancy and NOI at issuance were 84.6% and
GBP 50.6 million, respectively. The loan is performing above its
cash trap and default covenant levels with a debt yield 10.8% and
an interest coverage ratio of 2.72x.

At inception, the hotels' properties and operations were each held
by a combined OpCo/Propco ownership and DBRS's analysis, amongst
other metrics, included the potential risks arising from the
property-owning companies being trading companies; for example,
employee termination compensation costs, reductions in exit prices
on sale of the portfolio and also the increased timing of any
likely workout period following an event of default. It is
understood that the Sponsor is undergoing an organizational
restructuring, which involves the implementation of a separate
Opco/Propco structure. It is understood that despite the
reorganization the ultimate controlling beneficial ownership of
both the operations and the properties shall remain the same. There
will also be no changes to the commercial terms of the senior
facility agreement and the Mezzanine facility agreement. Finally,
the Senior Lenders and the Mezzanine Lenders are expected to be
given third-party share security and appropriate receivables
pledges (as part of the common security package) over the new
companies holding the operations and the properties, as well as
debentures over the assets held by those companies, which means no
impairment, dilution or loss of security for the Senior Lenders or
the Mezzanine Lenders. DBRS will continue to monitor the
development of the restructuring and will provide a further update
on the transaction once the process is complete.

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

STONEGATE PUB: Moody's Affirms B2 CFR; Aters Outlook to Developing
------------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
and B2-PD probability of default rating of Stonegate Pub Company
Limited and the B2 ratings of the senior secured notes of Stonegate
Pub Company Financing plc. Concurrently Moody's has changed the
outlook on both entities to developing from stable.

"The acquisition of Ei Group will materially increase Stonegate's
scale and provide revenue and earnings diversification by combining
the largely tenanted pub estate of EiG with the company's
established and successful managed estate", said David Beadle, a
Moody's Senior Credit Officer and lead analyst for Stonegate. "Our
decision to change the company's outlook to developing reflects the
fact that at this stage the ultimate financing structure of the
enlarged business is uncertain, and so in due course either
positive or negative rating pressure could emerge. Moreover, the
ratings affirmation reflects our central scenario that although
Moody's believes that leverage might increase somewhat this will be
offset by the strengthening of the company's business profile", he
added.

RATINGS RATIONALE

The change in outlook follows the announcement on July 18, 2019
that the boards of Stonegate Pub Company Bidco Limited, a
wholly-owned subsidiary of Stonegate, and Ei Group plc have reached
agreement on the terms of a recommended all-cash acquisition of the
entire share capital of EiG by Bidco for approximately GBP1.3
billion. The implied enterprise value of approximately GBP3 billion
is a multiple of approximately 11.4 times EiG's reported underlying
EBITDA of GBP261 million for the fiscal year 2018, ended September
30, 2018. The acquisition is expected to close in the first quarter
of 2020, subject to satisfaction of customary conditions and
approvals from the relevant authorities.

The consideration for EiG's shares will be financed by a
combination of equity to be invested by Stonegate's controlling
shareholders, TDR Capital, PIK financing from Alba Core Partners,
and debt arranged by Barclays Bank, Goldman Sachs and Nomura
International. In addition to raising new debt to repay EiG's
senior secured bonds (which are subject to mandatory redemption
upon a change of control), the debt funding gives Stonegate the
option to refinance its own outstanding senior secured bonds.

Stonegate is currently weakly positioned in the B2 category due
primarily to its stretched credit metrics, including
Moody's-adjusted gross debt/EBITDA of around 7.0x. In addition,
although the company has a strong performance track record, it has
a relatively modest scale and its managed estate is subject to
significant competition. In contrast, although EiG has similar
leverage, before the announcement of this transaction it was
adequately positioned in the B1 rating category, reflecting its
more significant scale and the underlying stability of its earnings
base linked to rental income and wholesaling of drinks to its
tenants.

The acquisition will involve an increase in the enlarged entity's
total debt (due to the debt component of the purchase of EiG's
shares) by approximately GBP300 million. Moody's therefore expects
Stonegate's adjusted leverage to increase by about 0.6 turns of
adjusted EBITDA, before factoring in any potential synergies. In
mitigation, the increased scale, diversification of revenues, and
the opportunity for synergies arising from the proposed acquisition
are all credit positive.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Restaurant
Industry published in January 2018.

CORPORATE PROFILE

Stonegate is the largest privately held managed pub company in the
UK, with more than 750 pubs under management. The company is
controlled by the private equity firm TDR Capital and has grown
through a series of acquisitions such that it now operates a number
of formats encompassing high-street, suburban, student, local and
late-night venue concepts. The group's branded formats include Slug
& Lettuce, Walkabout, and Be At One. In the 53 weeks ended
September 30, 2018 Stonegate generated revenue of GBP774 million
and reported company adjusted EBITDA of GBP115 million.

EiG is the largest leased and tenanted pub operator in the UK.
Together with its wholly owned subsidiary, Unique Pub Company, EiG
has a large and geographically diverse GBP3.6 billion estate of
more than 4,000 pubs in England and Wales, which generated GBP695
million in annual revenue and GBP287 million in underlying EBITDA
in its fiscal year ended September 30, 2018.

STONEGATE PUB: S&P Places 'B-' ICR on Watch Developing on Ei Deal
-----------------------------------------------------------------
S&P Global Ratings placed its ratings on U.K.-based Stonegate Pub
Co. Ltd., including its 'B-' issuer credit rating and issue-level
ratings, on CreditWatch with developing implications, indicating
that S&P could affirm, raise, or lower its ratings on Stonegate.

The CreditWatch placement follows the announcement that the boards
of directors of Stonegate Pub Co. Ltd. (B-/Stable/--) and Ei Group
PLC (B/Stable/--) have reached an agreement for an all-cash offer
for Ei's shares, at an implied enterprise value of nearly GBP3
billion.

With the acquisition of Ei, the U.K.'s largest leased and tenanted
pub operator, with a portfolio of over 4,000 pubs, Stonegate, the
fourth-largest managed pub operator in the U.K., will gain
substantial scale and become the largest pub operator in the U.K.
with a combined revenue base of about GBP1.5 billion. The combined
entity will benefit from a greater diversification and larger
economies of scale. In addition, there is scope for potential
synergies that could arise from the ability of Stonegate to
leverage its strong brands and expertise within Ei Group's large
portfolio. However, in the backdrop of an extremely competitive
drinking and eating out market in the U.K., an integration of this
magnitude entails risks. In the short to medium term, S&P believes
that the group could incur significant integration and
restructuring costs that could weigh down profitability and cash
flow generation, before potential synergies are realized.

In S&P's view, the operating environment for pubs in the U.K. is
challenging, with persistently rising costs that continue to weigh
on margins. While the pub sector is relatively drink-focused, we
see some added pressure on food sales. These continue to be hit by
cautious customer spending, competition in the casual dining
sector, and the increase in food delivery service options. S&P
expects U.K. pubs to face continuous rising cost pressures,
primarily on account of the rising National Living Wage, increasing
food and drink costs due to the weaker pound sterling, and a surge
in utility expenses. This, combined with very weak real wage growth
in the U.K. and high competition, is making it increasingly
difficult for pub operators to pass on higher costs through price
increases to consumers. Therefore, management efforts to secure
synergies and integration benefits across the Stonegate and Ei
pubs, continuously boost operating performance, and manage costs to
maintain margins will continue to be key in this tough competitive
environment.

The transaction is subject to approval by the requisite majorities
of Stonegate's shareholders at the Court Meeting and of EIG
Shareholders at the General Meeting. The requisite European
Commission and/or the Competition and Markets Authority anti-trust
clearances also need to be obtained, together with the regulatory
clearances from the Financial Conduct Authority. Consequently, S&P
expects the acquisition to become effective in the first quarter of
2020.

The transaction values Ei Group at nearly GBP3 billion enterprise
value, based on an 11.4x multiple of Ei Group's underlying EBITDA
of GBP261 million for the fiscal year ended Sept. 30, 2018.
Excluding debt, Ei's equity is valued at approximately GBP1.3
billion.

S&P understands that the transaction will be funded by a mix of new
equity from Stonegate's shareholder, the private equity group TDR
Capital of approximately GBP1.3 billion (of which GBP750 million to
GBP800 million will be in form of new cash equity) and committed
senior- and second-lien financing from banks, for a total of GBP2.2
billion. A subordinated payment in kind financing of GBP325 million
from the AlbaCore Funds will also be used to finance the
acquisition. In addition to financing the acquisition
consideration, the proceeds will be used to refinance all existing
debt at both Ei Group and Stonegate (excluding the securitized debt
at the Unique Pub group, which is part of Ei) as well as to finance
any fees, costs, and expenses incurred in connection with the
transaction.

S&P said, "Following the recent disposals of commercial properties,
we forecast Ei Group's S&P Global Ratings-adjusted debt to EBITDA
to improve by about 0.5x to about 7.0x-–slightly better than 7.5x
for the fiscal year ended Sept. 30, 2018. Historically, aggressive
debt-funded opportunistic acquisitions and ongoing high capital
expenditure have resulted in Stonegate's leverage remaining
elevated, with adjusted debt to EBITDA at about 7.5x-8.0x and
negative free cash flows.

"Our preliminary forecasts indicate that, after the transaction,
S&P Global Ratings-adjusted combined pro forma leverage could be
within 7.5x to 8.5x range, depending on the quantum of debt and
targeted synergies, together with the impact of financing,
restructuring, and integration costs on the combined group's
earnings and cash flows. Smooth execution of the acquisition,
realization of synergies, and tight control on capital expenditures
and limited spend on restructuring and integration costs could
result in some deleveraging below 7.5x over a timeframe of 12 to 24
months following the completion of the transaction.

"We will resolve the CreditWatch when we have more information and
details to complete our review of the combined group's strategy,
operations, and capital structure on completion. Depending on our
expectations for its credit metrics, this could result in an
affirmation, upgrade, or downgrade.

"However, due to the potential improvement in Stonegate's business
risk profile and competitive strength due to scale benefits, we
believe that a downgrade is somewhat less likely than an upgrade of
up to one notch or an affirmation. Although not in our base case
scenario, we could lower the rating if we viewed the new leveraged
capital structure as unsustainable over the long term.

"We could also discontinue the ratings at the Ei group (excluding
the securitized debt at the Unique Pub group) if its debt is
refinanced and repaid."

WALNUT BIDCO: Fitch Assigns B+(EXP) LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned Walnut Bidco Plc's first-time expected
Long-Term Issuer Default Rating of 'B+(EXP)' with Stable Outlook.
In addition, Fitch has assigned the 'B+(EXP)'/'RR4' rating to
Oriflame's proposed senior secured notes. The assignment of final
ratings is contingent upon receipt of final documents conforming to
the information already received.

The ratings reflect Oriflame's high leverage more in line with a
lower 'B' category rating, which is balanced by a good position in
the direct-selling beauty market and well-diversified operations.
The ratings also take into account Oriflame's exposure to FX risks
and emerging markets, which increases volatility of the company's
revenue and profits.

The Stable Outlook reflects its expectation that the company will
maintain its prudent financial policy and healthy cash flow
generation over the medium term, despite competitive pressures and
FX risk. This supports Fitch-projected deleveraging by 2022 towards
levels that are consistent with a 'B+' rating and scope for
improvement in rating headroom thereafter.

KEY RATING DRIVERS

Mid-Size Player in Competitive Market: Oriflame holds leading
market shares in the direct-selling beauty sector in its core
countries of operation. However, it is a medium-size player in the
global beauty industry and is vulnerable to competition from large
multi-national companies, innovative direct sellers and niche firms
that have emerged due to low-cost marketing via social media. In
its view, Oriflame's proficiency in the direct sales channel,
effective engagement of new "registered actives" (direct selling
representatives) and a developed online platform (96% of orders are
online) will help the company to withstand competitive pressures.

Good Product Diversification: Oriflame's credit profile benefits
from diversification across all major beauty product categories,
including skincare (29% of 2018 sales), colour cosmetics (19%),
fragrances (18%) and personal and hair care (16%). Around 13% of
revenue comes from sales of wellness products, which enjoy growing
demand and higher profitability than some beauty products as
consumers become increasingly health-conscious. Fitch expects that
favourable price-mix effect from the company's strategy to increase
sales of more expensive and profitable skincare and wellness
products will be the major driver of growth in revenue and profit
margins over the medium term.

FX, Emerging Markets Exposure: Oriflame operates in more than 60
countries across Europe, Asia and Latin America, which are
predominantly emerging markets. This exposes the company to
inherent volatility of developing economies and FX risks as the
cost of its products is linked to hard currencies and its debt is
effectively in euros.

However, the company is able to partly cover its FX exposure with
product price increases, revenue-cost currency match and
cross-currency hedges. Furthermore, Oriflame's geographic
diversification insulates the company from the adverse impact of
significant devaluation of one single currency. Oriflame's largest
markets - China and Russia - each accounted for 15% of the
company's 2018 revenue. Despite being characterised by volatile
economies, emerging markets also provide better growth
opportunities than developed countries due to faster-growing demand
for beauty products.

Strong Cash Flow Generation: Oriflame's rating is supported by a
good ability to generate free cash flow (FCF) due to limited capex
needs and adequate profitability. The company's EBITDA margin
(2018: 13.5%) is consistent with the 'bb' rating category in its
Consumer Products Navigator and is higher and more resilient than
its main peer Avon Products Inc.'s (B+/ RWP). In its view,
improvements in manufacturing capacity utilisation and positive
product mix changes will help Oriflame protect cash flow
generation, despite potential FX and macroeconomic challenges,
increasing competition or any adverse changes in regulation of
direct selling in its countries of operation.

Prudent Financial Policy Assumed: As Oriflame's strategy and
corporate governance will not change materially after the company
is taken private by its founding family, Fitch expects it to
maintain its prudent financial policy. Oriflame's capital structure
historically included low debt levels as the company operated under
a management-calculated net debt/ EBITDA target of 0.5x-1.5x,
abstained from dividend payments in years of challenging market
conditions and refrained from M&A over at least the past 15 years.

High Leverage: Being taken private and the associated senior
secured notes issue will result in funds from operations (FFO)
adjusted net leverage of 6.4x (2018: 3.5x), a level that is high
for the 'B+' rating but Fitch projects steady deleveraging to below
5x in 2022 due to accumulation of cash and growth in EBITDA.
Although senior secured notes documentation does not fully prevent
the company from remunerating its shareholders or undertaking M&A,
Fitch assumes that cash build-up will be used for debt reduction.
Evidence of a more aggressive financial strategy than expected will
be negative for Oriflame's ratings and may lead us to consider
gross, rather than net, leverage for rating sensitivities.

DERIVATION SUMMARY

Oriflame compares well with the leading direct-selling beauty
company Avon as the two companies operate in the same segment of
the beauty market through the same sales channel and are similarly
exposed to FX risks and volatility in emerging markets. Avon's
larger scale (as measured by revenue and EBITDAR) and stronger
market shares in some markets are balanced by the company's
challenged business model, weaker performance over the past three
years and thinner profit margins than Oriflame's. Furthermore,
Fitch believes that Oriflame's strategy carries lower execution
risks and requires lower investments than Avon's. Oriflame's
product and geographic diversification is comparable to Avon's but,
in its view, Oriflame benefits from higher-growth categories
(wellness) and markets (Asia) and has lower single-market
concentration. Avon's weaknesses were reflected in a Negative
Outlook on its rating before the company was placed on Rating Watch
Positive (RWP) following its acquisition agreement with Naturas
Cosmeticos S.A. (BB/RWN).

Oriflame is rated higher than Anastasia Intermediate Holdings, LLC
(B/ Negative) as Anastasia's rating reflects risks that management
may be unable to reverse the current negative trajectory in
operating results while leverage could remain elevated.
Furthermore, Oriflame is larger than Anastasia by sales and EBITDA
and has broader diversification by products and geographies. At the
same time, Anastasia's credit profile is supported by superior
profitability and limited FX risks.

The business and financial profile of the world's largest beauty
company L'Oreal SA (F1+) is unmatched by other Fitch-rated
companies in the sector, including Oriflame.

No Country Ceiling, parent-subsidiary linkage or operating
environment aspects apply to Oriflame's ratings.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Its Rating Case for the Issuer:

  - Mid-single digit decline in revenue in 2019 due to temporary
operating challenges in Asia & Turkey, followed by low-single digit
recovery on price-mix effect

  - EBITDA margin improving towards 14.5% due to manufacturing
optimisation and changes in product mix

  - Other items before FFO, largely consisting of unfavourable FX
differences, in line with historical performance

  - No adverse changes in working capital turnover

  - Capex not exceeding EUR25 million per year

  - No dividend distribution considering the internal net
debt-to-EBITDA target of around 2.0x

  - No M&A

KEY RECOVERY RATING ASSUMPTIONS

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

Oriflame's going concern EBITDA is based on 2018 EBITDA of EUR173
million. The going-concern EBITDA is 25% below 2018 EBITDA to
reflect the company's exposure to FX volatility and emerging
markets. The going-concern EBITDA estimate of EUR129 million
reflects Fitch's view of a sustainable, post-reorganisation EBITDA
level upon which Fitch bases the valuation of the company. Oriflame
would however be able to cover its cash interest, taxes and capex
and still be able to generate mildly positive FCF. An enterprise
value (EV)/ EBITDA multiple of 4x is used to calculate a
post-reorganisation valuation and is around half of the transaction
multiple of 7.2x.

Oriflame's super senior revolving credit facility (RCF) of EUR100
million is assumed to be fully drawn upon default and ranks senior
to senior secured notes of EUR775 million. The waterfall analysis
generated a ranked recovery for senior secured notes in the 'RR4'
band, indicating a 'B+(EXP)' rating. The waterfall analysis output
percentage on current metrics and assumptions was 47%.

RATING SENSITIVITIES

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

  - Local-currency revenue growth, driven by improvements in
price-mix or sales volume and successful engagement of new
representatives, sufficiently offsetting FX challenges

  - EBITDA margin sustainably above 15% (2018: 13.5%) due to
favourable changes in product mix, cost efficiencies and ability to
pass on cost increases to customers

  - FCF margin sustainably above 5% (2018: -4%)

  - FFO adjusted net leverage sustainably below 4.0x

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

  - Sustained operating underperformance in key markets, driven by
intensifying competitive pressure or inability to protect revenue
and profit from adverse changes in FX

  - Material reduction in number of active representatives if not
offset by improvements in productivity

  - EBITDA margin sustainably below 10%

  - FCF margin sustainably below 2%

  - More aggressive financial policy or operating underperformance
preventing a decline of FFO adjusted net leverage towards 5.0x

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch expects Oriflame to have comfortable
liquidity after completion of the senior secured notes issue due to
the absence of near-term maturities and excess cash post
transaction of at least EUR30 million (after excluding EUR70
million required for operating purposes). Liquidity will be also
supported by a 4.5-year EUR100 million committed RCF and expected
positive FCF. Fitch assesses refinancing risk as limited as the
planned senior secured notes to be issued will be due only in 2024
and also because of Fitch-projected steady deleveraging and cash
build-up over the next five years.

WALNUT MIDCO: Moody's Assigns B1 CFR, Outlook Stable
----------------------------------------------------
Moody's Investors Service assigned a first-time B1 Corporate Family
Rating and a B1-PD Probability of Default Rating to Walnut Midco
Limited, the holding company that will own Oriflame Holding AG, a
Swiss-based producer and distributor of beauty and wellness
products. Concurrently, Moody's has assigned B1 ratings to the
EUR775 million equivalent senior secured notes due in 2024 to be
issued by Walnut Bidco PLC, a fully owned subsidiary of Walnut
Midco. The outlook for Walnut Midco Limited and Walnut Bidco PLC is
stable.

"Oriflame's B1 rating reflects good market positioning and robust
cash flow generation, which are offset by the risk of operating
under a multi-level direct selling model" says Lorenzo Re, a
Moody's Vice President Senior Analyst and lead analyst for
Oriflame. "The rating also factors Oriflame's high concentration on
some emerging markets and the challenges in recovering from the
current difficult trading conditions" Mr. Re added.

RATINGS RATIONALE

The B1 corporate family rating (CFR) assigned to Walnut Midco
Limited reflects the positive fundamentals of the beauty and
personal care sector, that is one of the fastest growing segments
among packaged goods, and Oriflame's market positioning, supported
by its good scale, although smaller than some major peers in the
beauty sector, and global presence. However, this is offset by the
company's high exposure to emerging markets, with a degree of
concentration in few core markets, which exposes the company to
some revenue volatility and to potential currency exchange
fluctuations. These risks are mitigated by Oriflame's ability to
preserve margin and cash generation, owing to its flexible cost
structure and asset-light business model. The rating also reflects
the inherent risk of operating under a multi-level direct selling
model, owing to the need of constantly recruit new representatives
and the risk of potential regulation changes for this kind of
distribution model.

The rating factors the challenges in recovering from the current
difficult trading conditions as well as some execution risk related
to the company's strategic repositioning with a stronger focus on
the skin care and wellness segments, the premiumisation of the
brand and the transition to a digitally based business model.
Moody's expects Oriflame's leverage, measured as Moody's adjusted
gross debt to EBITDA ratio, will gradually improve towards 4.5x in
the next 2 years from an expected 5.0x in 2019. Improvement will be
on the back of a moderate recovery in the operating performance,
supported by a low single digit revenue annual growth rate and
modest operating margin improvements. The 4.5x leverage is
commensurate with the B1 rating.

Oriflame's financial policy is a credit strength owing to (1) the
committed and supportive shareholder; (2) the company's good
liquidity supported by the large cash position of EUR100 million at
closing of the transaction and the EUR100 million available RCF;
(3) Moody's expectation that the company will prioritize
deleveraging, in line with its prudent leverage target.

STRUCTURAL CONSIDERATIONS

The B1 assigned to the proposed EUR775 million equivalent senior
secured notes reflects the fact that the notes will represent the
majority of the financial debt. While the notes will rank junior to
the EUR100 million super senior RCF, the revolver size is not
enough to cause a notching down of the notes. Moody's assumes a 50%
recovery rate at family level given the bond structure and the
presence of the RCF. The bonds and the RCF will benefit from the
same security (but with different priority) consisting mainly of
share pledges, intercompany loans and, for Swiss-based guarantors
only, intellectual property. The latter includes all the group's
brands, trademarks and patents.

The RCF and bond are guaranteed by all material subsidiaries in
those jurisdiction in which this is allowed. Guarantor coverage is
weak, as Moody's estimate guarantors to represent about 41% of
operating profit. However, this is mitigated by the fact that there
is no financial debt and only modest operating liabilities at
non-guarantor subsidiaries.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on the rating reflects its expectation that
Oriflame's operating performance will recover from 2020, on the
back of modest sales growth and that leverage will slightly improve
trending towards 4.5x in the next two years. The outlook also
assume that Oriflame will maintain a good liquidity profile and a
prudent financial policy.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the ratings could arise if (1) Oriflame
successfully executes on its strategy, demonstrating positive track
record of sustainable profitable growth; (2) Moody's adjusted gross
leverage decreases towards 4.0x; (3) Oriflame demonstrates a track
record of prudent financial policy.

Downward pressure on the ratings could arise as a result of (1) a
deterioration in operating performance, with EBIT margin falling
below 10%; and (2) if Moody's adjusted gross leverage does not
reduce below 5.0x, (3) free cash flow turns negative for an
extended period of time.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Packaged
Goods published in January 2017.

CORPORATE PROFILE

Walnut Midco Limited is the holding company of Oriflame Holding Ag,
a Swiss-based producer and distributor of beauty and wellness
products. Following a public tender bid, Walnut Midco became the
majority shareholder of Oriflame with a 97% stake. Walnut Midco is
controlled by members of the af Jochnick family and closely related
parties, founders of Oriflame.

[*] UK: Number of Scottish Business Failures Down, AIB Says
-----------------------------------------------------------
Hannah Burley at The Scotsman reports that the number of Scottish
business failures dipped in the three months to June, bucking a
two-year-plus trend of rising corporate insolvencies, new figures
show.

Official bankruptcy statistics for the first quarter of the 2019-20
financial year revealed that the number of Scottish-registered
companies becoming insolvent (including, for example, entering
receivership) decreased to 239, The Scotsman discloses.

This marks a fall of 15% compared with the previous quarter and a
2% drop from 245 business failures in the opening quarter of
2018-19, The Scotsman notes.

However, experts cautioned that the quarterly improvement alone
would not be enough to reverse the long-term trend of rising
corporate insolvencies in Scotland since the beginning of 2017, The
Scotsman states.

The figures from Accountant in Bankruptcy also found that there
were 137 members' voluntary liquidations, down from 141 a year
earlier, according to The Scotsman.

Eileen Blackburn of Scottish insolvency and restructuring trade
body R3, as cited by The Scotsman, said businesses braced for
Brexit may have been caught out by the decision to postpone until
October.  

"Many companies stocked up in the first quarter of 2019 on raw
materials and components, in preparation for potential disruption
to normal delivery flows via EU countries in the case of a no-deal
Brexit, and may have found after March 29 that they were left with
a pile of stock in warehouses, with no immediate buyers," The
Scotsman quotes Blackburn as saying.




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

[*] BOOK REVIEW: THE SUCCESSFUL PRACTICE OF LAW
-----------------------------------------------
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1969.



                           *********


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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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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                * * * End of Transmission * * *