/raid1/www/Hosts/bankrupt/TCREUR_Public/190905.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Thursday, September 5, 2019, Vol. 20, No. 178

                           Headlines



B E L G I U M

NYSTAR NV: Moody's Withdraws Caa3 CFR


C Z E C H   R E P U B L I C

AVAST HOLDING: Moody's Upgrades CFR to Ba2, Outlook Stable


I R E L A N D

CVC CORDATUS XV: Fitch Assigns Final B-sf Rating to Class F Debt
CVC CORDATUS XV: Moody's Assigns B3 Rating to EUR9MM Cl. F Notes
SMURFIT KAPPA: Fitch Assigns EUR500MM Bond BB+(EXP) Rating


N E T H E R L A N D S

IHS NETHERLANDS: Moody's Rates Proposed Sr. Unsec. Notes B2


R U S S I A

ANTIPINSKY: Sberbank Does Not See Itself as Future Owner
INTERSTATE BANK: Fitch Upgrades LT IDR to BB+, Outlook Stable


S P A I N

AUST 2019: Files for Pre-Insolvency Proceedings


U N I T E D   K I N G D O M

ARCADIA GROUP: Philip Green Mulls Break Up of Retail Empire
BURY FC: Fraud Investigation Launched After EFL Expulsion
CASTELL 2019-1: Moody's Assigns [P]B3 Rating to Class F Notes
GVC HOLDINGS: Fitch Rates New EUR200MM Term-Loan 'BB+(EXP)'
JAMIE OLIVER: All Restaurants Sold Off Following Administration

LINKS OF LONDON: Hilco Capital Among Number of Bidders
NEWDAY GROUP: Moody's Affirms B1 CFR, Outlook Stable

                           - - - - -


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B E L G I U M
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NYSTAR NV: Moody's Withdraws Caa3 CFR
-------------------------------------
Moody's Investors Service withdrawn all outstanding ratings and
outlooks of Nyrstar NV and its guaranteed subsidiaries.

RATINGS RATIONALE

The rating action has been triggered by Nyrstar's successful
consensual restructuring finalised in July 2019, which lead to a
meaningful loss to the legacy noteholders. This restructuring
constitutes an event of default based on Moody's definitions, which
is a resolution of another default related to missed interest
payments in April 2019. As a part of the restructuring all rated
legacy notes have been extinguished and following the
reorganization the rating agency has withdrawn all the outstanding
ratings.

LIST OF AFFECTED RATINGS

Issuer: Nyrstar Netherlands (Holdings) B.V.

Withdrawals:

BACKED Senior Unsecured Regular Bond/Debenture, Withdrawn ,
previously rated Ca

Outlook Actions:

Outlook, Changed To Rating Withdrawn From Negative

Issuer: Nyrstar NV

Withdrawals:

LT Corporate Family Rating, Withdrawn , previously rated Caa3

Probability of Default Rating, Withdrawn , previously rated
Ca-PD/LD

Outlook Actions:

Outlook, Changed To Rating Withdrawn From Negative



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C Z E C H   R E P U B L I C
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AVAST HOLDING: Moody's Upgrades CFR to Ba2, Outlook Stable
----------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating of
Avast Holding B.V. to Ba2 from Ba3, as well as its probability of
default rating to Ba2-PD from Ba3-PD. Concurrently, Moody's has
upgraded to Ba2 from Ba3 the instrument ratings of SYBIL SOFTWARE
LLC's USD 447.80m Term Loan B and Avast Software B.V.'s EUR 639.44m
Term Loan B tranches both due in 2023 as well as Avast Software
B.V.'s USD 85m Revolving Credit Facility due in 2022. The outlook
is stable.

RATINGS RATIONALE

"We have upgraded Avast's rating to Ba2 because of the strong
performance during the last year, a solid market environment and
the company's voluntary reduction of debt earlier this year. Avast
has used its free cash flow for meaningful debt reductions and we
expect a further reduction of leverage metrics towards 2.5x in the
next 12-18 months, a level viewed as appropriate for the Ba2
category" says Dirk Goedde, a Moody's Assistant Vice President and
lead analyst for Avast. "However, the announced dividend policy
leads to lower free cash flow/debt in 2019 and beyond, restricting
the deleveraging capacity to some extent", Mr Goedde adds.

The stable outlook is based on the expectation of a stable profit
generation and a gradual reduction of leverage over the next
quarters. The stable outlook doesn't factor in sizable acquisitions
going forward. The rating agency estimates that Moody's-adjusted
gross debt to EBITDA will reduce towards 2.5x in the next 12-18
months, a reduction of 0.3x from the last twelve months ended in
June 2019. The lower debt quantum leads to a further 25 basis
points reduction in the interest margin on the existing term loans
and improves Avast's interest cover, calculated as Moody's adjusted
EBITDA-capex/interest expense, to 5.5x in the last twelve months
ended in June 2019 with further upside going forward.

Avast has reported another strong half-year with revenue growth of
9% compared to the previous period. The consumer desktop segments
contributed again the strongest growth and remains with 73% the by
far most important segment. The revenue growth was driven by both
the increasing customer base and higher product penetration.
Product-wise Avast was able to grow non anti-virus products
stronger than its core anti-virus product and thus improved
diversification to some extent. While the decline in consumer
mobile is still driven by the loss of a carrier contract in 2017,
the decline in corporate customers was driven by the sale of
managed workplace provider business, whereas Avast benefitted from
the good performance in the consumer indirect segment, primarily
via Jumpshot, Avast data analytics platform.

Moody's believes that Avast's EBITDA margin will remain above 50%
on an adjusted basis in the next 12-18 months. The slight margin
decrease of 0.7pp in the last twelve month ended in June compared
to the previous period is driven by elevated costs, but Avast will
benefit from increasing economies of scale going forward. The
company has a good degree of cost control and benefits from being
located in a jurisdiction with favorable costs whilst not noticing
any staff shortages. Avast maintains research and development costs
at around 9% of revenues to remain competitive.

Moody's forecasts free cash flow (after interest) in the range of
$300-$340 million before dividends in the next 12-18 months.
However, given the announced dividend guidance, the free cash flow
after dividends is expected between $170-220 million in the next
12-18 months which is higher than its previous expectation of $150
million for 2019. In March 2019 Avast has used excess cash to
voluntarily repay debt and further shifted parts of its debt
portion from USD to EUR to reduce interest costs. This transaction
reduced leverage on a Moody's adjusted basis to 3.0x from 3.4x.

Avast's Ba2 CFR is generally supported by (1) the group's large
base of more than 435 million users across desktop and mobile, (2)
high Moody's adjusted EBITDA margin of 51% in the last twelve
months ended in June 2019 and strong free cash flow generation, (3)
a track record of revenue and EBITDA growth, (4) large scale in
emerging growth areas such as mobile and (5) good revenue
visibility with an average contract tenor of 14 months and a an
increasingly sticky customer base.

Conversely, Avast's CFR is constrained by (1) the group's
relatively small percentage of paid users (4% in desktop) and
current revenue concentration in consumer PC security software and
some focus on the US, (2) the intense industry competition and
inherent technology risks in security software markets, (3)
relatively low customer switching costs and (4) lower deleveraging
capacity because of dividend payments.

Moody's views Avast's liquidity profile as good. It is supported by
a cash balance of approximately $139 million as of June 2019,
forecasted FCF generation in excess of $179 million in 2019 and
full availability under the $85 million revolving credit facility
(RCF), whose maturity is 2022. The credit facilities are
covenant-lite, with only a springing net first lien leverage
covenant on the RCF, to be tested only if it is drawn by $35
million or more.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive ratings pressure could develop over time if Avast (1)
successfully continues to diversify its revenue and profit streams,
(2) maintains Moody's adjusted EBITDA margins well above 50%, (3)
delevers below 2.0x (4) maintains free cash flow after dividend
above 15% and (5) pursues a conservative financial policy with no
debt-funded acquisitions.

Conversely, negative ratings pressure could materialise if (1)
Avast's paid user base declines on a continued basis, (2) adjusted
leverage remains sustainably above 3.0x, (3) FCF/debt is
consistently lower than 10% or (4) the liquidity profile weakens.

PRINCIPAL METHODOLOGY

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

CORPORATE PROFILE

Avast was founded in 1988 in the Czech Republic, and has grown to
become a global provider of security software and related solutions
primarily focused on the consumer market (including mobile), with
small business clients as well. The company is one of the world's
largest online service companies in terms of installed user base,
with more than 435 million users worldwide.

In the last twelve months ended in June 2019 Avast reported revenue
of $850 million and Moody's adjusted EBITDA of $435 million.

Avast is owned 37% by its founders and 12% by funds advised by CVC
Capital Partners with the remainder in free float.



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I R E L A N D
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CVC CORDATUS XV: Fitch Assigns Final B-sf Rating to Class F Debt
----------------------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund XV Designated
Activity Company final ratings.

CVC Cordatus Loan Fund XV DAC is a securitisation of mainly senior
secured loans (at least 90%) with a component of senior unsecured,
mezzanine, and second-lien loans. A total note issuance of
EUR408.355 million is being used to fund a portfolio with a target
par of EUR400 million. The portfolio is managed by CVC Credit
Partners European CLO Management LLP. The CLO envisages a 4.5-year
reinvestment period and an 8.5-year weighted average life (WAL).

CVC Cordatus Loan Fund XV DAC
   
Class A;        LT AAAsf New Rating;  previously at AAA(EXP)sf

Class B-1;      LT AAsf New Rating;   previously at AA(EXP)sf

Class B-2;      LT AAsf New Rating;   previously at AA(EXP)sf

Class C;        LT A+sf New Rating;   previously at A(EXP)sf

Class D;        LT BBB-sf New Rating; previously at BBB-(EXP)sf

Class E;        LT BB-sf New Rating;  previously at BB-(EXP)sf

Class F;        LT B-sf New Rating;   previously at B-(EXP)sf

Class M-1 Sub.; LT NRsf New Rating;   previously at NR(EXP)sf

Class M-2 Sub.; LT NRsf New Rating;   previously at NR(EXP)sf

Class X;        LT AAAsf New Rating;  previously at AAA(EXP)sf

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit QualityFitch Ratings places the average
credit quality of obligors in the 'B'/'B-' category. The
Fitch-weighted average rating factor (WARF) of the identified
portfolio is 33.2.

High Recovery ExpectationsAt least 90% of the portfolio comprises
senior secured obligations. Recovery prospects for these assets are
typically more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-weighted average recovery rating (WARR)
of the identified portfolio is 66.1%

Diversified Asset PortfolioThe transaction features different
matrices with different allowances for exposure to both the
10-largest obligors and fixed-rate assets. The manager is able to
interpolate between these matrices. The transaction also includes
limits on maximum industry exposure based on Fitch's industry
definitions. The maximum exposure to the three-largest
(Fitch-defined) industries in the portfolio is covenanted at 40%.
These covenants ensure that the asset portfolio will not be exposed
to excessive concentration.

Portfolio ManagementThe transaction features a 4.5-year
reinvestment period and includes reinvestment criteria similar to
other European transactions. Fitch's analysis is based on a
stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.

Cash Flow AnalysisFitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls, and the
various structural features of the transaction. It also used the
model to assess their effectiveness, including the structural
protection provided by excess spread diverted through the par value
and interest coverage tests.

Limited Interest Rate RiskUp to 12.5% of the portfolio can be
invested in fixed-rate assets, while fixed-rate liabilities
represent 4.5% of the target par. Fitch modelled both 12.5% and 0%
fixed-rate bucket and found that the rated notes can withstand the
interest rate mismatch associated with each scenario.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate, and with this increase added to all rating default levels,
would lead to a downgrade of up to three notches for the rated
notes. A 25% reduction in recovery rates would lead to a downgrade
of up to four notches for the rated notes.

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

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognised Statistical Rating Organisations 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 asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.

CVC CORDATUS XV: Moody's Assigns B3 Rating to EUR9MM Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by CVC Cordatus Loan
Fund XV Designated Activity Company:

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

EUR246,000,000 Class A Senior Secured Floating Rate Notes due 2032,
Definitive Rating Assigned Aaa (sf)

EUR22,500,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Definitive Rating Assigned Aa2 (sf)

EUR18,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Definitive Rating Assigned Aa2 (sf)

EUR24,000,000 Class C Senior Secured Deferrable Floating Rate Notes
due 2032, Definitive Rating Assigned A2 (sf)

EUR27,000,000 Class D Senior Secured Deferrable Floating Rate Notes
due 2032, Definitive Rating Assigned Baa3 (sf)

EUR22,500,000 Class E Senior Secured Deferrable Floating Rate Notes
due 2032, Definitive Rating Assigned Ba3 (sf)

EUR9,000,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2032, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

The rationale for the ratings is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in its methodology.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 75% ramped as of the closing date and
to comprise of predominantly corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be acquired
during the 5.5 month ramp-up period in compliance with the
portfolio guidelines.

CVC Credit Partners European CLO Management LLP will manage the
CLO. It will direct the selection, acquisition and disposition of
collateral on behalf of the Issuer and may engage in trading
activity, including discretionary trading, during the transaction's
roughly four and a half year reinvestment period. Thereafter,
subject to certain restrictions, purchases are permitted using
principal proceeds from unscheduled principal payments and proceeds
from sales of credit impaired obligations or credit improved
obligations, and are subject to certain restrictions.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A Notes. The
Class X Notes amortise by 12.5% or EUR 187,500 over 8 payment dates
starting on the 2nd payment date.

In addition to the eight classes of notes rated by Moody's, the
Issuer has issued EUR 36,855,000 of Class M-1 Subordinated Notes
and EUR 1,000,000 of Class M-2 Subordinated Notes, both of which
will not be rated. The Class M-2 Notes accrue interest in an amount
equivalent to a certain proportion of both the senior and
subordinated management fees and its notes' payments are pari passu
with the payments of the respective management fees.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

Methodology underlying the rating action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
March 2019.

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

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in March 2019.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR 400,000,000

Diversity Score: 45

Weighted Average Rating Factor (WARF): 2840

Weighted Average Spread (WAS): 3.80%

Weighted Average Coupon (WAC): 4.75%

Weighted Average Recovery Rate (WARR): 43.25%

Weighted Average Life (WAL): 8.5 years

Moody's has addressed the potential exposure to obligors domiciled
in countries with local currency ceiling (LCC) of A1 or below. As
per the portfolio constraints and eligibility criteria, exposures
to countries with LCC of A1 to A3 cannot exceed 10% and obligors
cannot be domiciled in countries with LCC below A3.

SMURFIT KAPPA: Fitch Assigns EUR500MM Bond BB+(EXP) Rating
----------------------------------------------------------
Fitch Ratings assigned Smurfit Kappa Treasury Unlimited Company's
(SKT) forthcoming EUR500 million bond due 2027 an expected senior
unsecured rating of 'BB+(EXP)'. The senior unsecured rating is
aligned with the Long-Term Issuer Default Rating (IDR) of Smurfit
Kappa Group plc (SKG), SKT's parent. The new bond will be ranked
pari-passu with the existing senior unsecured issues and benefit
from the same guarantees. The proceeds from the new bond will be
used to repay the outstanding EUR250 million notes due 2020 as well
as EUR250 million of the EUR500 million notes due 2021, further
increasing the maturities.

The assignment of a final rating is contingent upon the receipt of
final documents conforming to the information already received. If
the final amount of the bond is higher, Fitch expects proceeds to
be applied to repayment of more of the 2021 maturing notes.

SKG's 'BB+' IDR is unaffected by the refinancing. Its recent
affirmation reflected SKG's continued solid financial and operating
performance with the EBITDA margin supported by favorable market
conditions, completed and potential acquisitions. It also reflects
improving geographical diversification beyond Europe, a stronghold
of SKG, which continues to account for more than 75% of its
revenue, and its vertical integration into containerboard. SKG's
stable dividend policies, moderate leverage, capex flexibility and
the ability to generate positive free cash flow (FCF) amid high
capex also support the rating. The rating is constrained by fairly
limited product diversification and intense sector competition

KEY RATING DRIVERS

Leading Packaging Producer: SKG's ratings are supported by its
leading position in corrugated containers and exposure to the
broadly stable packaging markets. The credit profile is further
supported by its vertical integration into containerboard,
providing some margin protection against raw material cost
inflation. In addition, around 60% of the group's revenue is
generated by customers in the fast-moving consumer goods sector,
which provides stability for SKG's financial performance.

Acquisitions Support Moderate Growth: Over the last four years, SKG
has completed acquisitions of around EUR900 million, including the
recent acquisition of Reparenco, a paper and recycling business in
the Netherlands, for EUR460 million. Fitch expects acquisitions to
continue, and to be complemented by expansionary capex.
Acquisitions have been primarily funded from positive FCF, and in
its forecasts Fitch assumes this to remain the case.

Solid Financial Performance: In 2015-18 SKG's revenue increased on
average by 3.3% per year, and Fitch expects this trend to continue
over the next four years. Fitch forecasts revenue to grow on
average 2.8% per year in 2019-2022, largely driven by the somewhat
higher scale of operations in the Americas and Europe on the back
of acquisitions and organic growth. SKG's EBITDA margin
significantly improved to 17% in 2018 from 14% in 2017, and Fitch
assumed it will remain between 16% and 17% due to realised
cost-cutting initiatives.

Favorable Market Conditions: The improvement in margins in 2018 was
partially driven by favourable market conditions. SKG passes its
raw materials costs onto customers with a time lag. Old corrugated
container prices decreased significantly in early 2018, while paper
pricing (Kraftliner and Testliner, the intermediary products)
declined only in late 2018-early 2019. This explains the moderation
of margins from 2018 levels in its forecasts.

Stable FCF Generation: Fitch views the stability of margins, stable
dividend policy and positive FCF generation as positive features of
SKG's credit profile. Although the group's absolute level of debt
remained broadly stable over 2015-2018, the completed acquisitions,
expansionary capex and efficiency improvements have resulted in
higher revenue and improved profitability, leading to funds from
operations (FFO) adjusted net leverage falling to below 3x in 2018.
Fitch forecasts FCF to remain positive and leverage to remain below
3x over the next four years.

1H19 Results as Expected: 1H19 results were broadly in line with
its expectations. Revenue increased by 4%, driven mainly by the
increase in volumes due to both organic growth and acquisition
growth. SKG has also improved its margins, as the company continues
to execute its Medium-Term Plan.

DERIVATION SUMMARY

SKG's ratings are supported by its leading packaging market
position, stable and diversified customer base and sound liquidity.
Its closest Fitch-rated peer is Stora Enso Oyj (BBB-/Stable), which
in its view has a comparable business profile, but lower projected
leverage, hence the one-notch difference in the ratings

KEY ASSUMPTIONS

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

  - Moderate single-digit revenue growth over 2019-2022

  - EBITDA margin at around 16%-17%

  - Net acquisitions of around EUR150 million annually over
2019-2022

  - Capex around EUR600 million per year over 2019-2022

  - Stable dividend payout

RATING SENSITIVITIES

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

  - Increased geographic and product diversification leading to
reduced business risk

  - FFO-adjusted net leverage sustainably below 2.5x

  - FCF margin sustainably above 2.5% (2018: 3%)

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

  - Larger-than-expected acquisitions or increased shareholder
returns that result in FFO adjusted net leverage above 4.0x on a
sustained basis

  - FCF margin sustainably below 1%

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: At end-2018 SKG had EUR417 million in cash and
short-term deposits (of which Fitch views EUR110 million as
restricted for working-capital and other operational requirements)
and EUR1 billion of undrawn committed credit facilities, while
short-term maturities were EUR167 million. Expected positive FCF
generation over the next 12 months should also provide ample
coverage for debt service.

SKG's next large maturity is in 2020 with EUR650 million, part of
which is due to be refinanced by the currently proposed bond issue.
In January 2019 the company refinanced its 2019 maturities by
issuing a EUR400 million bond due 2026. Furthermore, SKG has
entered into a new revolving facility of EUR1,350 million,
simultaneously releasing guarantor subsidiaries from guaranteeing
the bonds at the holding company level. Its liquidity analysis
based on the rating case shows no refinancing requirements at least
in the next three to four years.

SUMMARY OF FINANCIAL ADJUSTMENTS

  - Restricted cash of EUR110 million for working capital and
operational needs.



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N E T H E R L A N D S
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IHS NETHERLANDS: Moody's Rates Proposed Sr. Unsec. Notes B2
-----------------------------------------------------------
Moody's Investors Service assigned a B2 rating to IHS Netherlands
Holdco B.V. proposed backed senior unsecured notes. At the same
time Moody's affirmed IHS' B2 corporate family rating and B2-PD
probability of default rating. The outlook is stable.

The proposed notes will be fully and unconditionally guaranteed by
IHS Netherlands NG1 B.V., IHS Netherlands NG2 B.V., Nigeria Tower
Interco B.V., IHS Nigeria Limited, IHS Towers NG Limited and INT
Towers Limited. The proceeds of the US dollar-denominated notes
will be used for refinancing existing debt and general corporate
purposes.

The B2 rating on the proposed notes is in line with the CFR despite
the presence of subordinated intercompany shareholder loans which
Moody's consider as debt. This reflects the expectation that the
shareholder loans will be paid down overtime as a consequence of
material free cashflow expected to be generated as capital spending
wanes in Nigeria.

The rating on IHS' outstanding $800 million notes is unchanged.
Moody's expect that these notes will be redeemed as part of the
announced refinancing.

RATINGS RATIONALE

The B2 CFR and B2-PD probability of default rating reflect IHS'
leading position as a mobile communications tower operator in
Nigeria (B2 stable). This recognizes the company's strengthened
credit profile with the addition of INT's 9,866 towers into the
restricted group to give a total of 16,390 towers as of financial
year ended December 31, 2018 (FY2018) with Moody's debt/EBITDA of
around 4x (including subordinated intercompany shareholder loans).

The ratings are constrained by Nigerian sovereign rating given the
complete concentration of IHS' cash flows and assets to the
country. Absent this constraint, IHS could be rated at a higher
level than its current rating.

The company has a track record of generating stable cash flow with
around $5.8 billion of contracted revenue with Nigerian
subsidiaries of international telecommunications service providers
mostly rated Ba1 and above. IHS has proven itself as a savvy tower
operator with a steady track record of growth in Nigeria, a country
which otherwise suffers continual power disruptions, as well as
security challenges.

The rating also recognises IHS' private ownership status by IHS
Holding Limited (unrated), with a complex organisational structure
that increases scrutiny over transparency and corporate governance.
However, the enlarging of the restricted group through the addition
of INT and the proposed simplification of the capital structure
will help improve this. In addition, Moody's believe that IHS
Holding is committed to extending financial support to IHS, if
needed, in addition to providing operational support gained through
operating approximately 24,000 towers spanning five African
countries. The ratings assume no material debt-funded acquisitions
and the gradual repayment of subordinated intercompany shareholder
loans over the life of the backed senior unsecured notes.

RATIONALE FOR STABLE OUTLOOK

The outlook is stable. Moody's expects that IHS will grow and
deleverage in accordance with its business model, and that the
Nigerian regulatory, political and economic environment will remain
supportive.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings are constrained due to the high degree of concentration
of cash flow generation from Nigeria. Therefore, an upgrade in the
Government of Nigeria's rating would be needed before IHS' ratings
can be upgraded. To support an upgrade IHS would also need to
maintain its strong credit profile such that debt/EBITDA remains
below 5x (including subordinated intercompany shareholder loans).
This would also assume a robust liquidity profile being kept at all
times.

Considerations for a rating downgrade include (1) debt/EBITDA
exceeding 8x (including subordinsated intercompany shareholder
loans), and/or a weakening in IHS' liquidity profile (2) adverse
contractual, regulatory, economic and/or political developments
that materially impact IHS' ability to operate profitably and
sustainably; and (3) any indication that the company is considering
equitizing its intercompany shareholder loan, which could
constitute a default under its definition. A downgrade of the
Nigerian sovereign would lead to a downgrade in IHS' ratings.

PRINCIPAL METHODOLOGY

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

Headquartered in the Netherlands, with management located in Lagos,
IHS is a leading Nigerian tower company that provides services
primarily to the local Nigerian mobile operating entities of MTN
Group Limited (MTN, Ba1 negative), 9Mobile (unrated) and Bharti
Airtel Ltd (Airtel, Ba1 negative). For the FYE2018, IHS generated
revenues of $853 million and EBITDA as reported by the company of
$491 million.



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R U S S I A
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ANTIPINSKY: Sberbank Does Not See Itself as Future Owner
--------------------------------------------------------
Vladimir Soldatkin and Gabrielle Tetrault-Farber at Reuters report
that Russia's largest lender Sberbank does not see itself as the
future owner of the Antipinsky oil refinery, which filed for
bankruptcy earlier this year, Sberbank deputy board chairman
Anatoly Popov said on Sept. 4.

The refinery, which has a capacity of 9 million tonnes per year,
filed for bankruptcy in May after having halted operations on
several occasions because of a lack of funds to pay for crude oil
deliveries, Reuters recounts.  Sberbank had been its main creditor,
Reuters notes.

"Most importantly--and we repeat this constantly--is that the bank
cannot be the ultimate owner of the oil refinery," Reuters quotes
Mr. Popov as saying at an economic forum in the far eastern Russian
city of Vladivostok.  "It must be run by an owner working in the
field."

Mr. Popov added that the prospect of bankruptcy proceedings for the
refinery was high because of its substantial debt and large number
of creditors, Reuters relays.  Claims against the refinery as part
of its bankruptcy case amount to more than RUR346.5 billion (US$5.2
billion), Reuters discloses.

Mr. Popov also said the bank hoped to reach an agreement on the
debt restructuring of Russian coal and steel producer Mechel by the
end of the year, Reuters notes.


INTERSTATE BANK: Fitch Upgrades LT IDR to BB+, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has upgraded Interstate Bank's (IsB) Long-Term Issuer
Default Rating to 'BB+' from 'BB'. The Outlook is Stable.

KEY RATING DRIVERS

The upgrade of IsB follows the upgrade of Russia's sovereign rating
on August 9, 2019. Fitch rates IsB as a supranational
administrative body (SAB), given its unique business model as a
multilateral settlement institution operating in the Commonwealth
of Independent States (CIS) and Eurasian Economic Union (EAEU). The
ratings of IsB are support-driven and take into account the rating
of its key shareholder, Russia (BBB/Stable), which owns 50% of the
bank's capital. Fitch applies a two-notch downward adjustment from
Russia's rating to reflect its assessment of the propensity of the
key shareholder to provide support.

The bank's other shareholders are eight CIS countries represented
by the central bank of member states: Armenia (B+/Positive; which
owns 1.8% of the bank's capital), Belarus (B/Stable; 8.4%),
Kazakhstan (BBB/Stable; 6.1%), Kyrgyz Republic (1.5%), Moldova
(2.9%), Tajikistan (1.6%), Turkmenistan (1.5%), and Ukraine
(B-/Stable; 20.7%).

Ukraine formally requested to withdraw its membership from the bank
during 1H19. While a financial settlement has not been formally
agreed, Fitch does not view the departure of Ukraine as negatively
impacting the bank's operations given Ukraine's limited involvement
with CIS institutions. The precedent of Uzbekistan's departure in
2012 suggests that the financial settlement would have a negligible
impact on the bank's equity.

In 1H19, the bank's Council approved a strategy for the bank
through 2023, which envisages greater participation in integration
projects and collaboration with central banks. The bank's usage and
promotion of national currencies is increasingly relevant in the
context of US sanctions against some Russian financial institutions
and de-dollarisation efforts by shareholders.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead to
a positive rating action are:

  - An upgrade of the Russian sovereign rating or a revision of its
Outlook to Positive.

  - A positive change to its assessment of Russia's propensity to
support the bank, which may arise from an increased share of
settlement turnover and/or greater role in the CIS/EAEU economic
framework.

The main factors that could, individually or collectively, lead to
negative rating action are:

  - A downgrade of the Russian sovereign rating or revision of its
Outlook to Negative.

  - A negative change to its assessment of Russia's propensity to
support the bank


KEY ASSUMPTIONS

  - Russia continues to own at least 50% of IsB's capital.

  - No significant deviation from IsB's current strategy.

  - Risk management policies remain prudent and no breach is
expected.



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

AUST 2019: Files for Pre-Insolvency Proceedings
-----------------------------------------------
Reuters reports that Corporacion Empresarial de Materiales de
Construccion SA said on Sept. 2, its subsidiary Aust 2019 Customer
Service Sau (Aust) has filed for pre-insolvency proceedings.

According to Reuters, these proceedings are driven by Sociedad
Estatal de Infraestructuras Agrarias SA which seeks payment of
EUR8.1 million plus EUR2.4 million of interests and costs from Aust
and other parties.

The Aust business includes installation, post-sale service and
inspection, Reuters discloses.

Based in Spain, Corporacion Empresarial de Materiales de
Construccion, S.A. manufactures and supplies gypsum products,
including plasterboard and gypsum power, and Piping Systems.





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

ARCADIA GROUP: Philip Green Mulls Break Up of Retail Empire
-----------------------------------------------------------
Richard Partington at The Guardian reports that Sir Philip Green is
reported to be considering breaking up his Arcadia Group retail
empire to prepare for a potential sale of some of its biggest
brands.

According to The Guardian, in a development that could gradually
dismantle the group behind some of the country's biggest fashion
brands--including Topshop, Miss Selfridge, Burton and Wallis--the
Sunday Times reported that Green had started laying the groundwork
to split and sell parts of the company over a period of time.

The report said the planning work is being overseen by Arcadia's
chief executive, Ian Grabiner, The Guardian notes.  The newspaper
said Mr. Grabiner had convinced Green that the strategy was better
than keeping the group together, The Guardian relays.

In a statement on Sept. 1, Arcadia denied the report. "Following
the formal completion of the CVA [company voluntary arrangement]
process, the board is now fully focused on implementing its
turnaround plan across all its brands." The Guardian quotes Arcadia
as saying.  "The article in today's Sunday Times is wholly
inaccurate and unfounded.  It was written without any attempt to
contact the company or any of its advisors."

The move comes as Mr. Green's empire battles against declining
sales and profitability as competition from online retailers grows,
after years of underinvestment by the former billionaire, The
Guardian discloses.

Employing about 17,000 with brands that have been household names
on the high street for decades, Arcadia managed to stave off
collapse in June after winning the backing of its creditors for a
rescue plan that involved closing 50 of its 570 stores and 1,000
job losses, The Guardian recounts.

The plan involved seven company voluntary arrangements
(CVAs)--insolvency procedures allowing businesses to renegotiate
their debts--which required approval of 75% of all creditors and at
least half of the landlords behind the company's shops, The
Guardian states.


BURY FC: Fraud Investigation Launched After EFL Expulsion
---------------------------------------------------------
BBC News reports that a fraud investigation has been launched
involving Bury Football Club, police have confirmed.

Greater Manchester Police (GMP) said it received a report of fraud
on June 18 and inquiries were ongoing but no arrests had been made,
BBC relates.

The club was expelled from the English Football League (EFL) on
Aug. 27 after a late takeover bid from C&N Sporting Risk failed,
BBC recounts.

According to BBC, the allegation of fraud was made to GMP exactly
one month before current owner Steve Dale reached a Company
Voluntary Arrangement to repay the club's creditors 25% of the GBP9
million they owed.

However, the arrangement was dependent on the Shakers being able to
play their fixtures this season, BBC notes.

The club was also handed a 12-point penalty by the EFL for entering
into an insolvency agreement, BBC relays.

The EFL was not satisfied Bury had provided sufficient evidence of
their financial viability, so it postponed a string of the club's
fixtures while it awaited "the clarity required", BBC discloses.

The club was given a deadline to complete a sale but after the bid
collapsed, they were expelled from the league, BBC notes.


CASTELL 2019-1: Moody's Assigns [P]B3 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service assigned provisional long-term credit
ratings to the following Classes of Notes to be issued by Castell
2019-1 PLC:

GBP [ ]M Class A Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)Aaa (sf)

GBP [ ]M Class B Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)Aa1 (sf)

GBP [ ]M Class C Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)A1 (sf)

GBP [ ]M Class D Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)Baa3 (sf)

GBP [ ]M Class E Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)Ba2 (sf)

GBP [ ]M Class F Mortgage Backed Floating Rate Notes due July 2052,
Assigned (P)B3 (sf)

Moody's has not assigned any ratings to the GBP [ ]M Class X
Floating Rate Notes due July 2052 and GBP [ ]M Class Z Mortgage
Backed Floating Rate Notes due July 2052.

This transaction is the third term securitisation transaction
launched by Optimum Credit Limited (not rated) and rated by
Moody's. Pepper Money Limited (not rated) acquired Optimum in 2018.
The provisional portfolio of loans will be taken from the existing
warehouse Optimum Three Limited (rated by us) and will consist of
loans secured by second charge mortgages on properties located in
the UK. At the provisional pool cut-off date, the pool has a
current loan balance of approximately GBP [228.2] million, extended
to [5,038] borrowers. Approximately [76.6]% of the provisional pool
has been originated during 2019.

RATINGS RATIONALE

The ratings of the Notes take into account, among other factors:
(i) the performance of the previous transactions launched by
Optimum; (ii) the credit quality of the underlying mortgage loan
pool, from which Moody's determined the MILAN Credit Enhancement
and the portfolio expected loss; (iii) legal considerations; (iv)
the initial credit enhancement provided to the senior Notes by the
junior Notes, the general reserve fund of [2.25]% of mortgage
backed Notes as well as the liquidity reserve fund of [1.5]% of
Classes A and B; and (v) the ability to add new loans to the
collateral pool during the pre-funding period until October 25,
2019 which could account for up to [13.6]% of the final collateral
pool equivalent to GBP [36] million.

  -- Expected Loss and MILAN CE Analysis

The MILAN CE reflects the loss Moody's expects the portfolio to
suffer in the event of a severe recession scenario. The expected
portfolio loss of [6.0]% and the MILAN CE of [21]% serve as input
parameters for Moody's cash flow model and tranching model.

Portfolio expected loss of [6.0]% is in line with other UK
non-conforming RMBS transactions of ca. 5.9%, owing to: (i) all of
the loans in the pool having a second charge over the properties;
(ii) the performance of Optimum's precedent transactions; (iii) the
current macroeconomic environment in the UK; (iv) the limited
historical information; and (v) benchmarking with similar UK
non-conforming transactions.

MILAN CE of [21]% is lower than in other UK non-conforming RMBS
transactions of ca. 24.6%. The MILAN CE figure was derived based on
the following: (i) WA CLTV of [65.4]%, which is lower than the UK
owner-occupied average; (ii) all of the loans in the pool having a
second charge over the properties; (iii) the percentage of
self-employed borrowers in the pool of [17.6]%; (iv) a high
concentration in London and South East; (v) the limited historical
information; and (vi) benchmarking with similar UK non-conforming
transactions.

  -- Transaction structure

At closing, the general reserve fund will be equal to [2.25]% of
the closing principal balance of the Class A-Z notes (excluding X
notes), i.e. GBP[•] million. The general reserve fund will be
replenished after the PDL cure of the Class F Notes and can be used
to pay senior fees and costs and interest on Classes A-F Notes and
clear Classes A-F PDL.

The liquidity reserve fund will be equal to [1.5]% of the
outstanding Class A and B Notes and will be funded by principal
proceeds (until the required amount is funded). The liquidity
reserve fund will be available to cover senior fees and costs and
Classes A and B interest. After the liquidity reserve fund reaches
its target, it will be replenished using interest collections.

  -- Operational Risk Analysis

Pepper (UK) Limited is the servicer in the transaction while
Citibank, N.A., London Branch (Aa3/(P)P-1 & Aa3(cr)/P-1(cr)) will
be acting as a cash manager. In order to mitigate the operational
risk, Intertrust Management Limited (not rated) will act as backup
servicer facilitator. To ensure payment continuity over the
transaction's lifetime the transaction documents incorporate
estimation language whereby the cash manager can use the three most
recent servicer reports to determine the cash allocation in case no
servicer report is available. The transaction also benefits from
the equivalent of [5.2] months liquidity assuming a stressed SONIA
assumption of 5.7%.

All of the payments under the loans in this pool will be paid into
a separate collection account in the name of the originator at
National Westminster Bank Plc ((P)A2/P-1 & Aa3(cr)/P-1(cr)).
Payments are transferred daily from the collection account to the
issuer account held at Citibank, N.A., London Branch with a
transfer requirement if the rating of the account bank falls below
A2/P-1. The seller has declared a trust (between the issuer, the
seller and the collection account bank) over the collection account
in favor of the issuer and itself.

  -- Interest Rate Risk Analysis

[82.2%] of the loans in the provisional pool are fixed rate loans
reverting to Optimum's SVR with the remaining proportion already
linked to Optimum's SVR. To mitigate the fixed floating mismatch,
there will be a fixed floating balance guaranteed swap provided by
NatWest Markets Plc (Baa2/P-2 & A3(cr)/P-2(cr)), a wholly owned
subsidiary of The Royal Bank of Scotland Group plc (Baa2/P-2).

After the fixed rate loans revert to floating rate, there is a
basis risk mismatch in the transaction, which results from the
mismatch between the Optimum base-rate linked loans in the pool,
where the Optimum base-rate is linked to one-month LIBOR, and the
compounded SONIA used to calculate the interest payments on the
Notes. Moody's has taken into consideration the absence of basis
swap in its cash flow modelling.

The provisional ratings address the expected loss posed to
investors by the legal final maturity of the Notes. Moody's issues
provisional ratings in advance of the final sale of securities, but
these ratings represent only Moody's preliminary credit opinions.
Upon a conclusive review of the transaction and associated
documentation, Moody's will endeavor to assign definitive ratings
to the Notes. A definitive rating may differ from a provisional
rating. Other non-credit risks have not been addressed, but may
have a significant effect on yield to investors.

  -- Methodology

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

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

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

Significantly different loss outcomes compared with its
expectations at close due to either a change in economic conditions
from its central scenario forecast or idiosyncratic performance
factors would lead to rating actions. For instance, should economic
conditions be worse than forecast, the higher defaults and loss
severities resulting from a greater unemployment, worsening
household affordability and a weaker housing market could result in
a downgrade of the ratings. Deleveraging of the capital structure
or conversely a deterioration in the Notes available credit
enhancement could result in an upgrade or a downgrade of the
ratings, respectively.

GVC HOLDINGS: Fitch Rates New EUR200MM Term-Loan 'BB+(EXP)'
------------------------------------------------------------
Fitch Ratings has assigned GVC Holdings PLC's (GVC; BB+/Stable) new
EUR200 million term-loan B-3 facility an expected rating of
'BB+(EXP)' with a Recovery Rating of 'RR3'. This new senior secured
loan facility will rank pari passu with all existing senior secured
debt within GVC and will benefit from the same security and cross
guarantees package as the original TLB facility. The facility will
be issued by a special purpose euro finance vehicle GVC Holdings
(Gibraltar) Limited, a wholly owned direct subsidiary of GVC.

This new facility will refinance a GBP175 million of term loan debt
under GVC's existing equivalent GBP1.4 billion term loan B facility
that was contracted in March 2018. While the new euro facility
marginally increases currency risk at GVC, which reports in
sterling pounds, it is likely to be compensated for by the
increasing euro-denominated revenue the gaming group is now
generating. The transaction is neutral to GVC's leverage and has
the same maturity as the original term loan B facility.

The assignment of the final rating is subject to the receipt of
final documentation being in line with the information already
received.

KEY RATING DRIVERS

Strong Business Profile: The combination of GVC with Ladbrokes
created one of the world's leading gaming operators. The enlarged
group benefits from owning multiple brands providing betting and
gaming services across multiple geographies in Europe, as well as
sizeable operations in Australia. It also holds licences in the US
and announced in July 2018 a JV with MGM Resorts International
(BB/Stable), positioning the group well for the liberalisation of
this market.

The business's size allows the group to benefit from economies of
scale in an industry that is becoming more competitive and tightly
regulated, whether through further consolidation or taking market
share from less competitive, smaller operators.

M&A Record Reduces Execution Risks: The management teams of GVC and
Ladbrokes have a strong record of integrating mergers and
acquisitions in the past, and Fitch has therefore factored into its
ratings reduced integration risks in the realisation of potential
synergies. However, given the size of the merger as well as the
gaming machines review outcome in the UK on the new stake limit
Fitch does not rule out a slower pace of savings, although there is
good progress so far, with UK online migrations having begun in
2H19.

Diversified End-Markets: GVC's business profile benefits from good
geographic diversification, with more than 90% of revenue generated
from regulated or taxed markets, following the disposal of GVC's
Turkish operations in 2018. The addition of Ladbrokes to the group
adds a strong market position in the UK and good positions in Italy
and Australia. This reduces the risks associated with regulatory
changes in individual jurisdictions, providing greater visibility
on profits, despite a new consumption tax imposed in Australia.

Synergies from Multi-channels: The enlarged group combines retail
and digital betting, enhancing its ability to improve brand and
product awareness, as well as customer retention through enhanced
multi-channel and marketing initiatives. Ladbrokes's strong
multi-channel capabilities could provide more growth opportunities
for GVC, which has had impressive growth over the past years.

Potential Profitability Increase: Management has guided to roughly
GBP130 million of cost savings from the merger to be phased in over
the next four years. The major component relates to technology
savings, given GVC's own proprietary technology. Fitch forecasts
that cost savings, along with some additional revenue growth,
should drive combined pro-forma EBITDA margin toward 24.5% by
end-2020 from 21.3% in 2018.

Uncertain UK Regulatory Environment: Last year saw a number of
regulatory changes whose implementation has affected all gaming
operators. Given the high political scrutiny, more changes are in
prospect. The UK gaming machines Triennial Review leading to a
reduction in the stake limit on B2 machines to GBP2 from GBP100 is
affecting all large retail operators in the UK. Fitch assumes an
impact of GBP145 million on EBITDA by 2020 without any meaningful
compensation measures, although the group has advised at its 1H19
results publication that the full-year negative impact on profits
from the Triennial Review will be GBP10 million lower than
originally forecast.

In addition GVC will now only close 900 Ladbrokes/Coral shops, as
opposed to 1,200 identified originally. While the rise in remote
gaming duty to 21% from 15% has affected GVC's UK online business,
this has been compensated for by strong growth of online revenues
(net gaming revenues (NGR) up 17% in 1H19).

Mounting Pressure for Responsible Gaming: The political pressure on
gaming operators to put in effective safeguards for problem
gamblers continues unabated. In the UK the Gambling Commission has
recently fined GVC subsidiary Ladbrokes Coral Plc GBP5.9 million
for not protecting vulnerable customers and lapses in its money
laundering measures before the merger between 2014 and 2017.
Although the amount is insignificant for credit metrics, it led GVC
to actively review its player protection measures to fully meet its
regulatory requirements. GVC has also significantly increased its
funding of responsible gaming initiatives, agreed to further TV and
stadium perimeter advertising restrictions and rolled out safer
gaming tools and behavioural tracker systems.

Other Regulatory Risks on the Rise: The introduction of a
state-wide point of consumption tax in Australia will affect
profitability, while licence renewals in Italy could lead to some
uncertainty and lumpy capex. GVC was also fined roughly EUR187
million dating back to 2010-2011 for tax issues at Sportingbet in
Greece, with around GBP80 million to be paid in 2019. In addition
there is a possibility that German Lander states may regulate
in-play betting.

Large Growth Market in US: More positively in the US, the May 2018
legalisation of sport betting opens up a large potential market,
with GVC well-placed to take advantage of its growth, since it
holds a Nevada and New Jersey licences, as well as the JV with MGM
Resorts International. In New Jersey GVC will launch an online
sports betting operation for the start of the National Football
League (NFL) in September 2019.

Satisfactory Cash-Generating Capability: Fitch forecasts GVC should
be able to generate satisfactory free cash flow (FCF) for the
current rating by end-2022, after dividends. This allows for
reasonably good deleveraging prospects. Fitch expects that the main
driver will be revenue growth, coupled with enhanced profitability,
with low working capital and capex requirements. Given expectations
of steady capex in 2019 Fitch expects post-dividend FCF margins
could exceed 4%-5% by 2021.

Dividend Target and Leverage Commitment: GVC has a record of paying
special dividends. Fitch expects that management will remain
committed to its public target of a 10% annual increase in
dividends. Given management's commitment to a net debt/EBITDA
target of below 2.0x in the long term, Fitch believes the group may
look to repay debt to achieve this.

Improving Financial Headroom: Fitch forecasts that GVC will be able
to deleverage by 2021, given the group's good cash-generating
capability, with funds from operations (FFO) adjusted net leverage
falling to around 3.5x by 2021 from a high of 4.9x in 2019. Fitch
expects that FFO fixed-charge coverage will be strong for the
rating, rising to around 4.5x by 2021, benefitting from a low cost
of debt and lower future rental expenses, as the group increasingly
moves online while closing shop units in the UK following the
Triennial Review decision.

DERIVATION SUMMARY

The combined GVC/Ladbrokes Coral group created the largest European
gaming operator, combining a mature retail channel with a growing
online product. The group's business profile is commensurate with a
higher rating category, supported by strong profitability and
financial flexibility. GVC's expected EBITDAR margin at 23%-25%
with moderate volatility through an average downturn is solid
relative to other 'BB' category-rated peers at 15%. However the
group's leverage is high for the 'BB+' rating, and slightly higher
than that of closest UK-based peer William Hill Plc, as well as
other gaming operators Crown Resorts Limited (BBB/Stable) and Las
Vegas Sands Corporation (BBB-/Positive)

KEY ASSUMPTIONS

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

  - Good revenue growth in the group's online businesses only
partly offsetting lower stakes in the retail business. A
significant reduction in machines staking from 2019 onwards, as a
result of the lower B2 staking limit of GBP2 effective from April
1, 2019.

  - Margin contributions from online services fall to around 40%,
reflecting expected tax increase in the UK, Australia and Ireland
for 2019-2020.

  - Combined group pro-forma EBITDA margin of about 21% in 2018,
improving to 24.5% by end-2020 as synergies are realised and the
group sees organic growth outpacing an increase in the cost base.
Fitch assumes that the group achieves synergies of GBP100 million
out of the planned GBP130 million by 2021. Fitch expects a negative
impact of around GBP145 million on EBITDA by 2020 from the GBP2 B2
maximum stake implementation in April 2019.

  - Capex for the combined group at between GBP160 million and
GBP220 million over the next three years. This is conservatively
higher than the current guidance from management for 2019/2020.

  - A 10% annual increase in dividends.

RATING SENSITIVITIES

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

  - Successful integration of the two businesses and realisation of
planned synergies resulting in profitability (EBITDAR margin above
27%) exceeding Fitch's rating case projections

  - FFO adjusted net leverage trending towards 3.0x (gross towards
3.5x).

  - FFO fixed-charge coverage remaining above 3.5x

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

  - Evidence that the group is not realising the expected synergies
or facing other difficulties, such as increased competition or
tighter regulation leading to weaker-than-forecast profitability
(for example EBITDAR margin at or below 22%)

  - FFO adjusted net leverage remaining above 4.0x (gross above
4.5x) in the next three years

  - Increased shareholder returns that limit the group's
deleveraging path

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Fitch forecasts that GVC's liquidity will
remain adequate under its base case scenario, with a GBP550 million
revolving credit facility (RCF) remaining undrawn.

Apart from the new EUR200 million term loan, GVC's debt structure
includes Ladbrokes' acquisition term loans comprising a EUR625
million euro tranche and USD800 million term loan (of which GBP4.7
million-equivalent was repaid in 2018), all due in 2024. In
addition, the debt structure features GVC's pre-existing EUR300
million senior secured term loan, the outstanding Ladbrokes GBP100
million 2022 retail bond and GBP400 million 2023 senior secured
notes. All debt ranks pari passu, and includes
guarantees/cross-guarantees and share pledges from key group
subsidiaries representing at least 75% of group EBITDA.

All Senior Debt Capital Structure: The capital structure is
characterised by an all-senior debt structure (ie no second-lien
debt). The nature and size of the asset base is comprised
principally of limited sizeable tangible assets, resulting in
limited additional credit enhancement arising from the security
package at the 'BB+' IDR level. Fitch would expect recovery
prospects to be "good" (i.e. RR3 within the band of 51%-70%
recoveries as per its criteria) for secured and guaranteed
creditors in a default, but not sufficient to merit a single-notch
uplift.

SUMMARY OF FINANCIAL ADJUSTMENTS

  - Cash held in customer accounts (GBP312 million at December 31,
2018) treated as restricted and not readily available for debt
service.

JAMIE OLIVER: All Restaurants Sold Off Following Administration
---------------------------------------------------------------
Neil Gerrard at Food for Thought reports that all of celebrity chef
Jamie Oliver's restaurants have been sold off following the
collapse of his restaurant group earlier this year.

Property agent Christie & Co confirmed that it had completed the
sale of all 20 sites it had brought to market around the UK, from
Glasgow to Brighton, with seven sites in London, Food for Thought
relates.

KPMG was called in as administrator of Jamie Oliver Restaurant
Group (JORG) and its subsidiaries Jamie's Italian, Jamie's Italian
Holdings, One New Change and Fifteen restaurant in May, Food for
Thought recounts.

Oliver's ailing business went into a Company Voluntary Arrangement
(CVA) with its creditors in February 2018 and closed 12 of the 37
sites it then operated before it finally went into administration
this year, Food for Thought discloses.

This August, documents published by KPMG revealed that Oliver's
media company Jamie Oliver Holdings Limited (JOHL) provided secured
loans totalling GBP18.3 million (EUR19.9 million) to try and keep
JORG afloat and is now likely to suffer a shortfall of GBP16
million (EUR17.4 million), Food for Thought relays.

In addition to that, it also provided guarantees of GBP4.7 million
(EUR5.1 million) to HSBC bank which have since been paid out and
has further unsecured intercompany loans of GBP3.5 million
(EUR3.8), potentially leaving Oliver's surviving company out of
pocket to the tune of GBP24.2 million (EUR26.3), Food for Thought
states.

Meanwhile, HSBC provided secured debt totalling GBP39.4 million
(EUR42.9 million), Food for Thought notes.


LINKS OF LONDON: Hilco Capital Among Number of Bidders
------------------------------------------------------
Jessica Clark at City A.M. reports that Homebase-owner Hilco
Capital is circling troubled jewellery retailer Links of London.

The vulture fund is among a number of bidders for Links, which is
trying to secure a rescue deal in the coming days, City A.M.
relays, citing Sky News.

According to City A.M., the broadcaster reported that a deal is
likely to be implemented through an insolvency process.

Links has recently been tipped to become the latest in a string of
retailers to consider a company voluntary arrangement, a
controversial insolvency process used to slash rents and close
stores, City A.M. discloses.

The jeweller has already closed 15 US stores as part of a
restructuring plan to avoid insolvency, City A.M. notes.

NEWDAY GROUP: Moody's Affirms B1 CFR, Outlook Stable
----------------------------------------------------
Moody's Investors Service affirmed at B1 the Corporate Family
Rating of NewDay Group (Jersey) Limited (Newday). Moody's has also
affirmed at B1 rating of the GBP275 and GBP150 million senior
secured notes, issued by NewDay BondCo plc, which are guaranteed by
the parent NewDay. The outlook on the issuers remains stable.

Moody's has also withdrawn the outlook on Newday's existing
instrument ratings for its own business reasons. The withdrawal of
these outlooks has no impact on the issuer-level rating outlook for
Newday.

RATINGS RATIONALE

The affirmation of the B1 CFR of NewDay's reflects its defendable
franchise yet modest 4% market share in the UK credit card sector,
material key relationship concentrations in the credit card
co-brand business, and modest asset quality metrics, adequate
corporate governance, a strong risk management framework, as well
as Moody's expectation of return to profits in 2019 and thus an
improving trend in the weak capital.

Moody's also considers that the rating is constrained by the firm's
monoline business model, its weak capital position evidenced by
negative 9.1% tangible common equity (TCE) on tangible managed
assets (TMA) ratio as of year-end 2018, following the internal
restructuring in 2017 resulting in a large amount of goodwill. As
of end-2018, NewDay reported a 5.8% problem loans ratio (calculated
as Stage 3 loans over gross loans) and a 9.6% of net-charge off
over average gross loans ratio. The net income over average managed
assets was a loss of 0.4% mainly impacted by investment cost and
down from a loss of 1.2% in 2017 that include one-off expenses
associated with the company's internal restructuring. On the back
of business growth, supporting interest income, Moody's expects the
improving trend in profitability to continue and NewDay to report
moderate profits in 2019 and stronger going forward.

NewDay has full reliance on wholesale funding, which Moody's views
as confidence-sensitive, especially for a company which operates in
an inherently risky business. Having said that, Moody's considers
NewDay's liquidity risk management as appropriate. Furthermore, the
medium term secured funding moderates refinancing risk against a
portfolio of principally short-term claims. However, the high
reliance on secured financing results in high asset encumbrance
which elevates expected losses for unsecured creditors and
constrains Moody's overall assessment and thus the rating of the
senior notes issued by NewDay BondCo. Moody's views these notes as
unsecured for the purposes of the rating. This is due to the
existing securitisations, 1) buys funded receivables daily, and is
expected to buy substantial share of the funded assets of the
company in the foreseeable future, 2) its senior tranches have a
priority claim on the underlying cashflow compared to the notes,
and 3) the positive correlation between the underlying risks for
the notes and the value of the collateral.

RATIONALE FOR THE STABLE OUTLOOK

The outlook on Newday is stable, reflecting the company's positive
earnings prospects and the rating agency's expectation that the
company will improve its solvency profile, as well as asset quality
as part of their product offering evolves to better meet their
customers.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Newday's CFR could be upgraded owing to: (1) an increase in
earnings diversification; (2) a decrease in key relationship
concentrations; (3) improvement in asset quality metrics; and (4)
significant improvement in its profitability and capitalization
beyond the levels incorporated in its assessment. The issuer rating
may be upgraded if the group were to reduce a material amount of
secured recourse debt, that would decrease the expected loss for
unsecured creditors.

The rating could be downgraded due to: (1) deterioration in asset
quality; (2) immaterial improvement in capitalisation; and
profitability below its expectations; and (3) indications of weaker
risk management standards. The rated notes may be downgraded if
there is a material increase in the super senior funding lines or
other recourse debt that would increase expected loss for the
senior notes.

LIST OF AFFECTED RATINGS

Issuer: NewDay Group (Jersey) Limited

Affirmation:

Long-term Corporate Family Rating, affirmed B1, previously Stable
debt level outlook withdrawn

Outlook Action:

Outlook remains Stable

Issuer: NewDay BondCo plc

Affirmations:

Backed Senior Secured Regular Bond/Debenture, affirmed B1,
previously Stable debt level outlook withdrawn

Outlook Action:

Outlook remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies published in December 2018.


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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-
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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.

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