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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

          Wednesday, September 11, 2019, Vol. 20, No. 182

                           Headlines



C R O A T I A

3 MAJ: Inks Shipbuilding Deal with Algoma Central


F R A N C E

AUTONORIA 2019: DBRS Puts Provisional B(sf) Rating to Class F Notes


G E R M A N Y

AL-KO VT: S&P Rates New EUR180MM First-Lien Term Loan 'B'
GALAPAGOS SA: Dusseldorf Court Opens New Insolvency Proceedings


H U N G A R Y

TAKAREK MORTGAGE: Moody's Withdraws Ba3 Deposit Rating


I R E L A N D

TORO EUROPEAN 6: Fitch Assigns B-sf Rating to Class F Debt
TORO EUROPEAN 6: S&P Puts B-(sf) Rating to EUR9.1MM Class F Notes


I T A L Y

IBLA SRL: DBRS Confirms 'CCC(sf)' Rating on Class B Notes
SUNRISE SPV 20: DBRS Hikes Class E Notes Rating to B (high)(sf)


K A Z A K H S T A N

BANK KASSA NOVA: S&P Affirms B/B ICRs, Outlook Stable


L I T H U A N I A

BUAB GEOTERMA: Declared Bankrupt by Court; To Undergo Liquidation


L U X E M B O U R G

MALLINCKRODT INT'L: Moody's Cuts CFR to Caa1, Outlook Negative


N E T H E R L A N D S

BRIGHT BIDCO: S&P Lowers ICR to 'CCC+' on High Pace of Cash Burn


S E R B I A

SERBIA: Moody's Affirms Ba3 Issuer Rating; Alters Outlook to Pos.


S L O V E N I A

HOLDING SLOVENSKE: Moody's Ups CFR to Ba1, Alters Outlook to Stable


U K R A I N E

UKRAINE: Fitch Upgrades LT IDRs to B, Outlook Positive


U N I T E D   K I N G D O M

ABOKADO: To Close Underperforming Stores Under CVA
BBD BIDCO: S&P Assigns Prelim 'B' Long-Term ICR, Outlook Stable
EUROSAIL 2006-1: S&P Raises Class E Notes Rating to B (sf)
KCA DEUTAG: S&P Alters Outlook to Negative & Affirms 'CCC+' ICR
SSG UK: Enters Into Administration Due to Financial Issues

TOMORROW'S PEOPLE: Creditors to Get 38p for Every Pound Owed

                           - - - - -


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C R O A T I A
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3 MAJ: Inks Shipbuilding Deal with Algoma Central
-------------------------------------------------
SeeNews reports that Croatia's troubled 3. Maj shipyard said on
Sept. 5 it has signed a deal to revive a shipbuilding deal with
Canadian shipping company Algoma Central Corporation, which the
buyer cancelled last year after 3. Maj failed to meet its
contractual obligations.

According to SeeNews, 3. Maj said in a statement the contract with
Algoma for completing the construction of 733 was signed on Sept.
4.

The shipyard did not provide further details but local media quoted
economy minister Darko Horvat as saying the revived deal is worth
US$36 million (EUR32.6 million), SeeNews notes.

Earlier, Mr. Horvat said that the Croatian Bank for Reconstruction
and Development (HBOR) has conditionally approved a HRK150 million
(US$22.4 million/EUR20.3 million) loan to help 3. Maj restart
production and complete vessels already under construction, SeeNews
recounts.  The loan awaits to see 3. Maj agreeing with all
creditors to postpone the repayment of their claims over unpaid
debt until September 1, 2021, SeeNews states.

The report recalls that in early June, local media quoted the CEO
of 3 Maj Edi Kucan as saying that the key to avoiding bankruptcy is
to complete the construction of the hull of a bulk carrier for
Algoma Central Corporation. Hull 733 was 80% completed, news portal
poslovni.hr reported at the time, and if an agreement was reached
with the government to provide 120 million euro ($134.8
million/890.5 million kuna) for the completion of the remaining
unfinished ships, the troubled shipyard would live to see 2020. The
shipyard had four ships under construction at the time.

The government first announced its plans to support 3. Maj in early
August, whereupon the commercial court in Rijeka decided to
postpone to Sept. 26 a hearing on the launch of bankruptcy
proceedings against the struggling shipyard, SeeNews relays.  The
court has said that the government's intervention should result in
unblocking the company's bank account, thus removing the main
reason for the launch of bankruptcy proceedings, according to
SeeNews.




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F R A N C E
===========

AUTONORIA 2019: DBRS Puts Provisional B(sf) Rating to Class F Notes
-------------------------------------------------------------------
DBRS assigned provisional ratings to the notes to be issued by
Autonoria 2019. For insight beyond the ratings, please see the DBRS
presale report.

DBRS Ratings Limited assigned provisional ratings to the Class A
Notes, Class B Notes, Class C Notes, Class D Notes, Class E Notes
and Class F Notes (the Rated Notes) to be issued by Autonoria 2019
as follows:

-- AAA (sf) to the Class A Notes
-- AA (sf) to the Class B Notes
-- A (sf) to the Class C Notes
-- BBB (sf) to the Class D Notes
-- BB (sf) to the Class E Notes
-- B (sf) to the Class F Notes

The Class G Notes are not rated by DBRS.

The rating of the Class A Notes addresses the timely payment of
scheduled interest and ultimate repayment of principal by the legal
final maturity date. The ratings of the Class B Notes, the Class C
Notes, the Class D Notes, the Class E Notes, and the Class F Notes
address the ultimate payment of scheduled interest while
subordinated but timely payment of scheduled interest as the most
senior class and ultimate repayment of principal by the legal final
maturity date.

The ratings will be finalized upon receipt of an execution version
of the governing transaction documents. To the extent that the
documents and information provided to DBRS as of this date differ
from the executed version of the governing transaction documents,
DBRS may assign different final ratings to the Notes.

The ratings are based on a review by DBRS of the following
considerations:

-- The transaction capital structure, including form and
sufficiency of available credit enhancement.

-- Credit enhancement levels are sufficient to support DBRS's
expected cumulative net losses under various stress scenarios.

-- The ability of the transaction to withstand stressed cash flow
assumptions and repays the Rated Notes according to the terms of
the transaction documents.

-- BNP PARIBAS Personal Finances capabilities with regard to
origination, underwriting and servicing, and its financial
strength.

-- An operational risk review of the seller, which is deemed by
DBRS to be an acceptable servicer.

-- The transaction parties' financial strength with regard to
their respective roles.

-- The credit quality, diversification of the collateral and
historical and projected performance of the seller's portfolio.

-- The sovereign rating of the Republic of France, which is
currently rated AAA with a Stable trend by DBRS.

-- The expected consistency of the transaction's legal structure
with DBRS's "Legal Criteria for European Structured Finance
Transactions" methodology and the presence of legal opinions that
are expected to address the true sale of the assets to the issuer.

The transaction cash flow structure was analyzed with Intex
DealMaker.

Notes: All figures are in Euros unless otherwise noted.




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G E R M A N Y
=============

AL-KO VT: S&P Rates New EUR180MM First-Lien Term Loan 'B'
---------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level and '3' recovery
rating to AL-KO VT Holdings GMBH's proposed EUR180 million
first-lien term loan maturing in 2024. The '3' recovery rating
indicates our expectation for meaningful (50%-70%; rounded
estimate: 55%) recovery in the event of a default. The incremental
nonfungible term loan will have terms identical to the company's
existing first-lien term loans. S&P expects the company will use
the proceeds to fund the acquisition of Safim S.p.A., a European
manufacturer of valves and cylinders.

S&P said, "Our 'B' issuer credit rating and stable outlook on
parent company DexKo Global Inc. are unchanged. The issue-level
rating on the company's first-lien debt remains 'B' with a '3'
recovery rating (rounded estimate: 55%), and the issue-level rating
on the company's second-lien debt remains 'CCC+' with a '6'
recovery rating. However, we have revised the rounded recovery
estimate on the second-lien debt to 0% (from 5%) due to the
increase in higher priority debt.

"We expect the Safim acquisition will modestly improve DexKo's
scale of operations and slightly diversify the company's geographic
footprint by increasing the company's exposure to Europe. Still,
the end markets that Safim serves, which include agriculture,
construction and material handling, are cyclical. Over the next
12-18 months, we anticipate DexKo's operating performance will
improve, supported by its pricing and productivity improvements
that we expect will more than offset softness in the North American
recreation vehicles (RV) market and steel cost increases related to
tariffs, as well as from contributions from completed and future
acquisitions (and their associated synergies). Pro forma for 12
months of EBITDA contribution from acquisitions, we expect the
company's S&P Global Ratings adjusted debt-to-EBITDA ratio to be in
the mid-6x area at the end of 2019, which remains relatively in
line with our previous expectations and below our 7x downside
trigger."

ISSUE RATINGS--RECOVERY ANALYSIS

Key Analytical Factors:

-- S&P's simulated default scenario contemplates a payment default
in 2022 and a somewhat higher emergence enterprise value as a
result of the Safim acquisition. The 5.5x multiple remains in line
with those it uses for peers with a similar business risk profile.

-- S&P's simulated default scenario assumes a sustained cyclical
economic downturn that leads to a significant decline in
construction activity, delays in the replacement and servicing of
the company's aging installed base, a secular decline in the demand
for recreational vehicles, and a significant decline in consumer
confidence and spending. At this point, DexKo's liquidity and
capital resources would be strained to the point that it would be
unable to continue to operate without filing for bankruptcy.

-- Secured borrowings in the U.S. benefit from guarantees from
domestic subsidiaries and a lien on most of DexKo's domestic
assets, excluding 35% of the equity in its first-tier foreign
subsidiaries. Direct borrowings by foreign subsidiaries benefit
from additional guarantees and collateral.

-- On a pro forma basis, DexKo's debt structure consists of a $150
million first-lien revolving loan facility, a total of about $1.4
billion in first-lien term loans (including euro-denominated
tranches), and a $250 million second-lien term loan.

-- S&P assumes roughly half of DexKo's value relates to its
non-U.S. subsidiaries, which are direct borrowers on nearly half of
its euro-denominated term debt (totaling an equivalent of about
$720 million on a pro forma basis), and can also directly borrow
under the revolving facility. A collection allocation mechanism
would equalize recovery rates on all first-lien borrowings, despite
the better guarantor and collateral terms for non-U.S. borrowings.

Simulated Default Assumptions:

-- Year of default: 2022
-- Jurisdiction: U.S.

Simplified Waterfall:

-- Emergence EBITDA: $163.4 million
-- Multiple: 5.5x
-- Obligor/non-obligor group: 50%/50%
-- Gross enterprise value: $898.5 million
-- Net recovery value for waterfall after admin. expenses (5%):
$853.6 million
-- Estimated first-lien collateral value: $826.4 million
-- Estimated first-lien debt claims: $1,489.2 million*
-- Recovery range: 50%-70% (rounded estimate 55%)
-- Remaining recovery value (unpledged foreign equity): $27.2
million
-- Estimated second-lien debt claims: $262.8 million
-- Estimated first-lien deficiency claims: $662.8 million*
-- Recovery range: 0%-10% (rounded estimate 0%)

* All debt amounts include six months of prepetition interest.
Estimated collateral value includes $427 million from domestic
subsidiaries, $349 million from direct foreign borrowings, and $51
million from the pledge of 65% of the equity value in foreign
subsidiaries.

S&P said, "We assume the revolving facility is 85% drawn at
default, but do not assume any of this is drawn by foreign
borrowers. We do not adjust for pension deficits because the
tax-adjusted deficit is below our materiality threshold (10% of
estimated debt at default)."


GALAPAGOS SA: Dusseldorf Court Opens New Insolvency Proceedings
---------------------------------------------------------------
Antonio Vanuzzo at Bloomberg News reports that a court in
Dusseldorf started new preliminary insolvency proceedings on
Galapagos SA on Sept. 9, according to a statement.

According to Bloomberg, the statement said the previous insolvency
application filed on Aug. 23 by Galapagos was dismissed by the
court also on Sept. 9.  It said the court has appointed Frank
Kebekus as preliminary insolvency administrator, Bloomberg
relates.

Galapagos is a manufacturer of cooling equipment used in power
plants.



=============
H U N G A R Y
=============

TAKAREK MORTGAGE: Moody's Withdraws Ba3 Deposit Rating
------------------------------------------------------
Moody's Investors Service withdrawn the Ba3 local and foreign
currency long-term deposit ratings and the b1 Baseline Credit
Assessment and adjusted BCA of Takarek Mortgage Bank Co. Plc.
Concurrently the rating agency has withdrawn the bank's Ba2 local
and foreign currency long-term Counterparty Risk Ratings as well as
the bank's local and foreign currency Not Prime short-term ratings
and its Ba1(cr)/Not-Prime(cr) Counterparty Risk Assessments.

The bank's deposit ratings had a positive outlook at the time of
withdrawal.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings because it believes it
has insufficient or otherwise inadequate information to support the
maintenance of the ratings.

Moody's withdrawal also follows the bank's shareholders' decision
on August 27, 2019 to sell the mortgage bank's fully licensed
commercial bank subsidiary to MTB Magyar Takarekszovetkezeti Bank
Zrt.

LIST OF AFFECTED RATINGS

Issuer: Takarek Mortgage Bank Co. Plc.

Withdrawals:

Adjusted Baseline Credit Assessment, Withdrawn, previously rated
b1

Baseline Credit Assessment, Withdrawn, previously rated b1

Long-term Counterparty Risk Assessment, Withdrawn, previously rated
Ba1(cr)

Short-term Counterparty Risk Assessment, Withdrawn, previously
rated NP(cr)

Long-term Counterparty Risk Ratings, Withdrawn, previously rated
Ba2

Short-term Counterparty Risk Ratings, Withdrawn, previously rated
NP

Long-term Bank Deposit Ratings, Withdrawn RWR, previously rated Ba3
Positive

Short-term Bank Deposit Ratings, Withdrawn, previously rated NP

Outlook Actions:

Outlook, Changed To Rating Withdrawn From Positive



=============
I R E L A N D
=============

TORO EUROPEAN 6: Fitch Assigns B-sf Rating to Class F Debt
----------------------------------------------------------
Fitch Ratings has assigned Toro European CLO 6 DAC ratings.

Toro European CLO 6 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 expected note issuance of
EUR360.4  million is used to fund a portfolio with a target par of
EUR350 million. The portfolio is managed by Chenavari Credit
Partners LLP. The CLO envisages a 4.4-year reinvestment period and
an 8.5-year weighted average life.

Toro European CLO 6 Designated Activity Company
   
Class A;    LT AAAsf;  New Rating  

Class B-1;  LT AAsf;   New Rating  

Class B-2;  LT AAsf;   New Rating  

Class C;    LT Asf;    New Rating  

Class D;    LT BBB-sf; New Rating  

Class E;    LT BB-sf;  New Rating  

Class F;    LT B-sf;   New Rating  

Sub. Notes; LT NRsf;   New Rating  

Class X;    LT AAAsf;  New Rating

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 32.4.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured obligations.
Fitch views the recovery prospects for these assets as more
favourable than for second-lien, unsecured and mezzanine assets.
The Fitch-weighted average recovery rate (WARR) of the identified
portfolio is 65.65%.

Limited Interest Rate Exposure

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 2.86% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest-rate mismatch associated
with each scenario.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the ratings is 26.5% of the portfolio balance. 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 42%. These covenants ensure that the asset portfolio will not be
exposed to excessive concentration.

Cash Flow Analysis

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

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 two 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.

TORO EUROPEAN 6: S&P Puts B-(sf) Rating to EUR9.1MM Class F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned credit ratings to the class X to F
European cash flow CLO notes issued by Toro European CLO 6 DAC. At
closing the issuer also issued unrated subordinated notes.

S&P's ratings reflect its assessment of:

-- The diversified collateral pool, which consists primarily of
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, which is bankruptcy remote.

-- The transaction's counterparty risks, which are in line with
S&P's counterparty rating framework.

Under the transaction documents, the portfolio's reinvestment
period will end approximately four-and-a-half years after closing.

The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds. Therefore, S&P has conducted its credit and cash
flow analysis by applying its criteria for corporate cash flow
collateralized debt obligations.

S&P said, "In our cash flow analysis, we used the EUR350 million
target par amount, the covenanted weighted-average spread (3.90%),
the reference weighted-average coupon (4.25%), and the target
minimum weighted-average recovery rate as indicated by the
collateral manager. We applied various cash flow stress scenarios,
using four different default patterns, in conjunction with
different interest rate stress scenarios for each liability rating
category.

"Under our structured finance ratings above the sovereign criteria,
we consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned rating levels.

"Until the end of the reinvestment period on Jan. 12, 2024, the
collateral manager is allowed to substitute assets in the portfolio
for so long as our CDO Monitor test is passing, maintained, or
improved in relation to the initial ratings on the notes." This
test looks at the total amount of losses that the transaction can
sustain as established by the initial cash flows for each rating,
and compares that with the default potential of the current
portfolio plus par losses to date. As a result, until the end of
the reinvestment period, the collateral manager can, through
trading, deteriorate the transaction's current risk profile, as
long as the initial ratings are maintained. The trading plans are
limited to 7.5% of the portfolio's balance.

The counterparty replacement and remedy mechanisms under the
transaction documents adequately mitigate its exposure to
counterparty risk under S&P's current counterparty criteria.

The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.

Taking into account the above-mentioned factors and following S&P's
analysis of the credit, cash flow, counterparty, operational, and
legal risks, S&P believes its ratings are commensurate with the
available credit enhancement for each class of notes.

The transaction securitizes a portfolio of primarily senior secured
leveraged loans and bonds, and will be managed by Chenavari Credit
Partners.

  Ratings List

  Toro European CLO 6 DAC

  Class  Rating   Amount (mil. EUR)
  X       AAA (sf)        2.00
  A      AAA (sf) 214.00
  B-1    AA (sf)  21.00
  B-2    AA (sf)  10.00
  C       A (sf)   30.40
  D      BBB (sf) 20.60
  E       BB- (sf) 19.70
  F      B- (sf)  9.10
  Sub notes NR       33.60

  NR--Not rated




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

IBLA SRL: DBRS Confirms 'CCC(sf)' Rating on Class B Notes
---------------------------------------------------------
DBRS Ratings Limited confirmed its BBB (low) (sf) and CCC (sf)
ratings of the Class A and Class B notes, respectively, issued by
Ibla S.r.l. (the Issuer).

The notes were backed by a EUR 348.6 million portfolio by gross
book value (GBV) consisting of secured and unsecured non-performing
loans originated by Banca Agricola Popolare di Ragusa S.C.p.A.
(BAPR or the Originator). The receivables are serviced by doValue
S.p.A. (doValue or the Servicer). A backup servicer, Securitization
Services S.p.A., was appointed and will act as a service in case of
termination of the appointment of doValue.

DBRS understands that the current GBV of the portfolio, as reported
in the latest semi-annual report provided by the Servicer as of
March 2019, amounts to EUR 358.2 million, which is higher than the
EUR 348.6 million reported at cut-off. According to the Servicer,
the GBV reported at cut-off included loan principal, but not
interest; with accrued interest, the GBV at the cut-off date (31
December 2017) was EUR 351.6 million. doValue is working to update
the latest semi-annual report as per all the upcoming reports.

DBRS notes that the lower GBV reported at inception does not affect
its recovery assumptions and is credit neutral for the transaction
as DBRS's analysis is based on recovery expectations, which are
typically less than the aggregate claims against the borrowers.

The majority of loans in the portfolio defaulted between 2012 and
2016 and are in various stages of resolution. At the cut-off date,
approximately 95.1% of the pool by GBV was secured and 91.7% of the
secured loans by GBV benefitted from a first-ranking lien.
According to the latest information provided by the Servicer in
June 2019, the percentage of secured GBV of the portfolio remains
almost equal at 95.1%, of which 91.7% benefits from a first-rank
lien. At the cut-off date, the secured collateral was highly
concentrated in Sicily (99.4% of secured GBV as of cut-off) and
continues to be mainly concentrated in the same region. In its
analysis, DBRS assumed that all loans are worked out through an
auction process, which generally has the longest resolution
timeline.

According to the most recent semi-annual investor report provided
by Securitization Services S.p.A. (the Computation Agent), the
actual cumulative gross collections totaled EUR 12.5 million from
the cut-off date to March 31, 2019. The initial business plan (BP)
provided by the Servicer assumed cumulative gross disposition
proceeds (GDP) of EUR 14.1 million during the relevant collection
period, which is 11.0% higher than the amount collected so far.
Therefore, the transaction is underperforming by an amount of
roughly EUR 1.5 million as compared with the Servicer's initial BP.
In 2019, doValue reviewed the original BP and reduced the initial
GDP to EUR 162.8 million from EUR 166.8 million (-2.4%, which is a
EUR 4.0 million reduction). The BP provided in 2019 assumed a
cumulative GDP of EUR 12.2 million as of March 2019, which is 2.2%
lower than the actual amount collected so far; therefore, the
transaction is over-performing for an amount equal to EUR 0.3
million as compared with the Servicer's BP 2019 expectations.
doValue justified the reduction of the initial BP highlighting that
at cut-off part of the portfolio has been statistically analyzed
(26% of GBV as of cut-off). While reviewing it during the boarding
process, it has been found that the amount of the expected
collection was less than the initial one. DBRS will continue to
monitor the Servicer's performance and potential future revisions
of the Servicer's recovery expectations.

At issuance, DBRS estimated a GDP for the same period of EUR 8.1
million in the BBB (low) (sf) stressed scenario, which is EUR 4.5
million or 35.6% lower as compared with the actual cumulative gross
collections (EUR 12.5 million as of March 2019) and EUR 6.0 million
or 42.7% lower with respect to the initial BP estimate provided by
the Servicer for the same period (EUR 14.1 million). Furthermore,
at a CCC (sf) stressed scenario DBRS assumed a haircut of 0.0% to
doValue's initial BP, which is EUR 1.5 million or 11.0% higher than
the actual cumulative gross collections as of March 2019.

The coupon on the Class B notes, which represent the mezzanine
debt, may be repaid prior to the principal of Class A notes unless
certain performance-related triggers are breached. As per the
latest investor report from September 2018, no subordination events
have occurred.

The ratings are based on DBRS's analysis of the projected
recoveries of the underlying collateral, the historical performance
and expertise of the Servicer, doValue, the availability of
liquidity to fund interest shortfalls and special-purpose vehicle
expenses, the cap agreement with Banca IMI S.p.A. and the
transaction's legal and structural features.

Both the DBRS timing and value stresses are based on the historical
repossessions data of the Servicer, doValue. DBRS's BBB (low) (sf)
rating assumes a haircut of 26.4% to doValue's initial BP for the
portfolio, while CCC (sf) rating assumes a haircut of 0.0% to
doValue's initial BP.

Notes: All figures are in Euros unless otherwise noted.


SUNRISE SPV 20: DBRS Hikes Class E Notes Rating to B (high)(sf)
---------------------------------------------------------------
DBRS Ratings GmbH upgraded the ratings of the following notes (the
Rated Notes) issued by Sunrise SPV 20 S.r.l.- Sunrise 2017-2 (the
Issuer):

-- Class A Notes to AAA (sf) from AA (high) (sf)
-- Class B Notes to A (high) (sf) from A (sf)
-- Class C Notes to BBB (high) (sf) from BBB (sf)
-- Class D Notes to BB (high) (sf) from BB (sf)
-- Class E Notes to B (high) (sf) from B (sf)

The ratings on the Rated Notes address the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date in November 2041.

The upgrades follow an annual review of the transaction and are
based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults, and
losses;

-- Updated probability of default (PD), loss given default (LGD)
and expected loss assumptions on the remaining receivables; and

-- Currently available credit enhancement (CE) to the Rated Notes
to cover the expected losses at their respective rating levels.

The Issuer is a securitization of unsecured Italian consumer loan
receivables underwritten to retail clients and originated by Agos
Ducato S.p.A. (Agos), which also acts as the Servicer of the
transaction portfolio. The EUR 621.9 million portfolios, as of the
July 2019 payment date, comprised new and used autos loans,
personal loans, furniture loans and loans for other purposes. In
the portfolio, 67.8% of the loans are flexible loans that allow the
borrower the option to skip one monthly installment per year (up to
a maximum of five times during the life of the loan) and modify the
amount of the monthly installments. The transaction closed in
October 2017 and had a 12-month revolving period.

PORTFOLIO PERFORMANCE

As of the July 2019 payment date, loans that were one- to two
months and two- to three-months delinquent represented 0.6% and
0.3% of the portfolio balance, respectively, while loans more than
three months delinquent represented 0.9%. Gross cumulative defaults
amounted to 1.0% of the aggregate original and subsequent
portfolios.

PORTFOLIO ASSUMPTIONS

Following the end of the revolving period, DBRS conducted a
loan-by-loan analysis of the current pool of receivables and
updated its base case PD and LGD assumptions to 7.1% and 87.3%,
respectively.

CREDIT ENHANCEMENT

As of the July 2019 payment date, CE to the Class A Notes was
53.3%, CE to the Class B Notes was 27.7%, CE to Class C Notes was
17.9%, CE to Class D Notes was 13.31% and CE to Class E Notes was
8.6%, up from 35.5%, 17.6%, 10.9%, 7.7% and 4.4% at closing,
respectively.

The transaction benefits from several funded reserves. The
non-amortizing Payment Interruption Risk reserve account has a
current balance of EUR 4.46 million and is available to cover
senior expenses and interest payments on the Rated Notes, providing
liquidity support to the transaction. Credit support is provided
through an amortizing cash reserve with a target balance equal to
3.0% of the outstanding performing collateral principal. The cash
reserve has a current balance of EUR 10.88 million and can be used
to offset the principal losses of defaulted receivables. An
amortizing commingling reserve has also been funded and has a
current balance of EUR 18.66 million; it may become available to
the Issuer upon insolvency of the Servicer or any of the Servicer's
account banks. All reserves are currently at their target levels.

The transaction structure additionally provisions for a Rata
Posticipata cash reserve, which mitigates the liquidity risk
arising from flexible loans. This reserve will be only funded if,
for two consecutive payment dates, the outstanding balance of the
flexible loans in relation to which the debtors have exercised the
contractual right to postpone the payments is higher than 5.0% of
the outstanding balance of all flexible loans. As of the July 2019
payment date, this condition has not been breached.

Credit Agricole Corporate and Investment Bank S.A., Milan branch
(CACIB-Milan) acts as the account bank for the transaction. Based
on the DBRS private rating of CACIB-Milan, the downgrade provisions
outlined in the transaction documents and other mitigating factors
inherent in the transaction structure, DBRS considers the risk
arising from the exposure to the account bank to be consistent with
the rating assigned to the Rated Notes, as described in DBRS's
"Legal Criteria for European Structured Finance Transactions"
methodology.

Credit Agricole Corporate and Investment Bank S.A. (CACIB) acts as
the swap counterparty for the transaction. DBRS's private rating of
CACIB is above the First Rating Threshold as described in DBRS's
"Derivative Criteria for European Structured Finance Transactions"
methodology.

The transaction structure was analyzed in Intex DealMaker.

Notes: All figures are in Euros unless otherwise noted.



===================
K A Z A K H S T A N
===================

BANK KASSA NOVA: S&P Affirms B/B ICRs, Outlook Stable
-----------------------------------------------------
S&P Global Ratings said that it affirmed its 'B/B' long- and
short-term issuer credit ratings on Bank Kassa Nova JSC (Kassa
Nova), a subsidiary of JSC ForteBank. The outlook is stable.

At the same time, S&P affirmed its Kazakhstan national scale rating
on Kassa Nova at 'kzBB+'.

The affirmation reflects our expectation that Kassa Nova will
retain its banking licence and continue its operations as a
stand-alone bank following its acquisition by ForteBank in May
2019. S&P said, "We expect Kassa Nova, which has assets of about
$350 million, to benefit financially and operationally from its
ownership by ForteBank, the third-largest domestic bank in the
consolidating Kazakh banking sector. We expect to see some
optimization of Kassa Nova's administrative expenses, a reduction
in funding costs, and a stronger reputation. We also see some
potential for ForteBank to provide liquidity and capital support to
Kassa Nova if needed."

S&P said, "We expect that Kassa Nova's capitalization, as measured
by our risk-adjusted capital (RAC) ratio, will remain stronger than
the average of its domestic peers' ratios at about 10.5%-11.0% over
the next 24 months. Our RAC forecast is based on the following main
assumptions: loan growth of 1% in 2019 and 4%-6% in 2020-2021; a
cost of risk of about 1.7%; a return on average assets of about
1.2%-1.4%; and no dividend payments."

Kassa Nova's risk position is weakened by a historically aggressive
nonperforming loan provisioning rate and an over-reliance on real
estate collateral. Gross Stage 3 loans and purchased and originated
credit impaired loans were 16.5% of total loans as of year-end
2018--better than our estimate of an average of 20%-25% for the
Kazakh banking system. However, only 19% of these loans were
covered by provisions. The bank's funding profile has proven
resilient to deposit outflows, which was a major issue for other
small Kazakh banks over the past three years, due to the good
reputation of its wealthy owner. S&P views the bank's liquidity
position as adequate.

S&P said, "We view Kassa Nova as a moderately strategic subsidiary
of ForteBank, reflecting its status as a newly acquired subsidiary
and its relatively small size compared to ForteBank (accounting for
9% of ForteBank's capital). We do not give any uplift to our
ratings on Kassa Nova in view of the small differential between the
ratings on ForteBank and Kassa Nova.

"The stable outlook on Kassa Nova reflects our expectation that the
bank's business and financial profiles will remain stable, and that
ownership by the larger ForteBank offers some downside protection
against any unexpected mildly negative developments at Kassa Nova
over the next 12 months, particularly with regard to asset quality
or capitalization."

A positive rating action on Kassa Nova in the coming 12 months is
unlikely because we do not envision material improvements to the
bank's stand-alone credit profile (SACP). S&P is unlikely to raise
its ratings on Kassa Nova to the level of those on ForteBank
because of Kassa Nova's status as a newly acquired subsidiary and
its small size in relation to ForteBank.

A negative rating action could follow if Kassa Nova's
capitalization and asset quality weakened significantly below our
base-case assumptions over the next 12 months. This would lead to
the projected RAC ratio falling below 10% and a significant
increase in Stage 3 loans approaching 25% of total loans, or a
significant decrease in Stage 3 loans coverage by provisions. If
Kassa Nova's SACP weakens by one notch to 'b-', S&P does not expect
the rating to change due to a potential notch of uplift for group
support from ForteBank, as long as our rating on ForteBank remains
'B+' or higher.




=================
L I T H U A N I A
=================

BUAB GEOTERMA: Declared Bankrupt by Court; To Undergo Liquidation
-----------------------------------------------------------------
Lietuvos Energijos Gamyba, AB on Sept. 4 disclosed that according
to the ruling of the Court of Klaipeda District on August 23, 2019,
BUAB Geoterma has been declared bankrupt and shall be liquidated
due to insolvency.  The Ruling became effective on September 3,
2019.  Lietuvos Energijos owns 23.44% of Geoterma shares.

Bankruptcy proceedings against Geoterma, a company that operated a
geothermal heating plant, were filed by the Court of Klaipeda
District on March 15, 2019.  UAB PALTAJA has been appointed as the
Bankruptcy Administrator.  On May 17, 2019, the Court of Klaipeda
District approved the EUR124,749.79 financial claim of the mortgage
creditor Lietuvos Energijos Gamyba, AB.

Since a peace agreement has not been concluded during the
bankruptcy proceedings, the restoration of the company's solvency
is impossible and Geoterma will be subject to the insolvency
proceedings by the Ruling.  
UAB PALTAJA has been appointed to lead the liquidation of the
company.

Geoterma is the owner and operator of the Klaipeda Geothermal
Demonstration Plant.



===================
L U X E M B O U R G
===================

MALLINCKRODT INT'L: Moody's Cuts CFR to Caa1, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service downgraded Mallinckrodt International
Finance SA's Corporate Family Rating to Caa1 from B2 and
Probability of Default Rating to Caa1-PD from B2-PD. Moody's
downgraded the senior secured revolver and term loans to B2 from
Ba3, the guaranteed senior unsecured notes to Caa2 from B3, and the
unguaranteed senior unsecured notes to Caa3 from Caa1. The
Speculative Grade Liquidity Rating was downgraded to SGL-4 from
SGL-2. The outlook remains negative.

The ratings downgrade reflects: weak liquidity; rising risk of a
transaction that Moody's would consider to be a distressed
exchange; uncertainty about the longer-term sustainability of cash
flows; and exposure to opioid litigation.

The downgrade of the Speculative Grade Liquidity Rating to SGL-4
reflects Moody's view that Mallinckrodt's liquidity will be weak
over the next 12 months as it faces a large upcoming notes maturity
of $700 million in April 2020. It also reflects Mallinckrodt's full
draw on its $900 million revolver, using up all of its committed
external liquidity. Mallinckrodt's liquidity benefits from
substantial cash (exceeding $550 million at the beginning of
September 2019, inclusive of proceeds from its full revolver draw)
as well as good free cash flow. Moody's believes that Mallinckrodt
would likely be able to meet the April 2020 maturity with available
cash and cash flow. However, given the sizeable debt maturity,
there is minimal cushion to absorb any litigation or other required
payments. For example, there is risk that Mallinckrodt would have
to make up to $600 million in retroactive payments to Medicaid
related to Acthar. Even without this payment, Mallinckrodt faces
considerable uncertainty around the timing and amount of possible
opioid related cash outflows. In Moody's view, risks stemming from
Mallinckrodt's exposure to opioid litigation are high, in both its
branded and generics businesses, potentially posing a challenge to
capital market access.

The downgrade also reflects Moody's view that Mallinckrodt could
pursue a transaction or transactions that Moody's considers to be a
distressed exchange, and hence a default under Moody's definition.
Mallinckrodt has been repurchasing debt at highly distressed levels
and may pursue further repurchases as its debt prices remain
depressed. The uncertainty over opioid litigation, in Moody's view,
reduces the value of Mallinckrodt's assets to potential strategic
buyers, thus limiting recovery prospects on the unsecured debt in a
liquidation scenario.

The downgrade also reflects mounting concerns on Mallinckrodt's
largest drug franchises, which make the sustainability of its cash
flows uncertain over the longer-term. Specifically, Acthar
(Mallinckrodt's largest drug) faces reimbursement challenges from
payors. Further, there is rising risk of generic competition on
Mallinckrodt's second largest franchise, INOmax, following an
adverse ruling in a patent infringement case at a federal appeals
court in August 2019. Lastly, Mallinckrodt's third largest
franchise, Ofirmev, faces generic competition in late 2020.

The outlook is negative, reflecting earnings declines in
Mallinckrodt's key franchises and risk of deteriorating liquidity,
particularly if Mallinckrodt is required to make a large cash
payment to Medicaid prior to repaying its April 2020 maturity. The
outlook also reflects high exposure to opioid-related litigation,
and the risk of large future cash outflows.

Ratings downgraded:

Mallinckrodt International Finance SA:

Corporate Family Rating to Caa1 from B2

Probability of Default Rating to Caa1-PD from B2-PD

Senior unsecured notes to Caa3 (LGD6) from Caa1 (LGD6)

Mallinckrodt International Finance SA and co-borrower Mallinckrodt
CB LLC:

Senior secured term loan B due 2024 and 2025 to B2 (LGD2) from Ba3
(LGD2)

Senior secured revolver expiring 2022 to B2 (LGD2) from Ba3 (LGD2)

Guaranteed unsecured notes to Caa2 (LGD5) from B3 (LGD5)

Speculative Grade Liquidity Rating to SGL-4 from SGL-2

Outlook Actions:

Outlook remains negative

RATINGS RATIONALE

Mallinckrodt's Caa1 CFR reflects its elevated financial leverage
and high earnings concentration in one drug, Acthar. It also
reflects corporate governance risks associated with management's
approach to capital structure and liability management in the face
of various business challenges. Mallinckrodt has high exposure to
opioid-related litigation, which while highly uncertain, has the
potential to result in large future cash outflows. Mallinckrodt
also faces challenges to its core business, including returning
Acthar to long term revenue growth due in part to significant
hurdles that patients face to get their insurance company to pay
for the drug. In addition, Mallinckrodt faces risk of lower
reimbursement from payors that will reduce revenue over time. At
the same time, Mallinckrodt continues to consider ways to exit
non-branded segments, and faces potential generic competition on
several of its largest franchises. Mallinckrodt's ratings are
supported by its moderate scale in specialty branded
pharmaceuticals and its growing hospital-based business.

The SGL-4 Speculative Grade Liquidity Rating reflects Moody's view
that Mallinckrodt's liquidity will be weak over the next 12 months.
Moody's expects good cash generation in excess of $450 million in
2020, prior to debt repayment or potential payments for litigation.
The revolver has a springing 5x net leverage covenant if more than
25% of the facility is drawn. Moody's believes the covenant will be
in effect through 2020 and that Mallinckrodt will have sufficient
cushion to comply.

Moody's could downgrade Mallinckrodt's ratings if there is a
payment to The Centers for Medicare and Medicaid Services (CMS)
that further exacerbates Mallinckrodt's ability to meet its April
2020 maturity. Further debt repurchases at highly distressed levels
or other debt restructuring alternatives could also result in a
downgrade. Although unlikely in the near term, a material
improvement in Mallinckrodt's liquidity position and reduced
uncertainty related to the impact of opioid-related legal matters
would also be needed to support an upgrade.

The principal methodology used in these ratings was Pharmaceutical
Industry published in June 2017.



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

BRIGHT BIDCO: S&P Lowers ICR to 'CCC+' on High Pace of Cash Burn
----------------------------------------------------------------
On Sept. 6, 2019, S&P Global Ratings lowered its long-term issuer
credit and issue-level ratings on lighting manufacturer Bright
Bidco B.V (Lumileds), to 'CCC+' from 'B'.

Despite management's actions to reduce costs and optimize working
capital, S&P believes that Lumileds will generate negative free
cash flows of about $55 million 2019 (compared with $51 million in
2018) due to continued market instability in both of the company's
main end-markets: autos and mobile phones.

In the first half of 2019, Lumileds' revenues declined about 27% as
the company was hit by falling auto vehicle production in China and
Europe, destocking from dealers, declining global demand for
smartphones, loss of volumes from a customer that moved to dual
sourcing (smartphone producer), and price erosion. For the six
months to June 2019, Lumileds' International Financial Reporting
Standards (IFRS) EBITDA amounted to about $32 million (after about
$9 million of restructuring costs), which is down from about $160
million the prior year. Its reported free operating cash flow
amounted to negative $53 million (after $62 million of capital
expenditure and $52 million of interest paid). There are no signs
of imminent and meaningful recovery in the auto sector, one of
Lumileds' main end-markets. S&P said, "In addition, we expect that
the likely uptick in demand for smartphones after the introduction
of 5G will not be enough to recover the volume lost from one of the
company's specialty customers. We also expect cost savings
initiatives will take time (the company anticipates about $80
million of additional gains by 2020, although we note that $23
million have already been booked in 2019)."

S&P said, "While we consider Lumileds well placed to manage the
structural shift from traditional lights for cars to LEDs from a
technology standpoint, as demonstrated by recent platforms wins, we
view the weakness of the Chinese and European auto markets as a
major constraint on the company's business model." In the past few
years, the pace of decline in revenue from the traditional lamps
division has been somewhat regular, allowing the company to adjust
its cost base in a timely manner. With the decline accelerating in
the past few quarters, profitability of Lumiled's traditional lamps
division had suffered from factory underuse. In the absence of
recovery in demand, it will become more challenging for the company
to pursue necessary investments in research and development (R&D)
to keep up with rapid technological changes in LEDs and avoid
commoditization of its products.

S&P said, "From a liquidity perspective, we believe that Lumileds'
sources will cover its needs for the next 12 months. We also expect
that Lumileds will be able to draw under its $200 million revolving
credit facility (RCF; $15 million is drawn for letters of credit)
if needed thanks to the lenient definition of the springing
covenant, which allows add-backs such as pro forma cost savings and
restructuring costs. Nevertheless, the company has very limited
headroom for additional operational setbacks.

"We forecast that, in 2019, Lumileds' debt-to-EBITDA ratio will
rise to above 15.0x (from 6.8x in 2018) and its funds from
operations (FFO) cash interest coverage will decline to about 1.0x
(from 2.3x in 2018). For 2020, we expect these credit metrics to
improve, with, for instance, debt-to-EBITDA close to 10x, thanks to
the annualized impact of the company's cost-saving initiatives and
lower volume declines."

The negative outlook reflects the possibility that, amid weakening
industry conditions, Lumileds' performance could fail to recover,
leading to prolonged weak earnings and cash flows. With the weak
trading outlook and high leverage, S&P believes the group depends
on favorable business conditions outside of its control to continue
to meet its financial commitments in the medium term.

S&P said, "We could lower our ratings in the next 12 months if
Lumileds' performance fails to meaningfully recover from the very
weak levels of the past few quarters, continued high cash burn
weakens liquidity, or financial restructuring became more likely.

"We could revise the outlook to stable in the next 12 months if
Lumileds restores positive free cash flow and its FFO cash interest
coverage increases to above 2x."




===========
S E R B I A
===========

SERBIA: Moody's Affirms Ba3 Issuer Rating; Alters Outlook to Pos.
-----------------------------------------------------------------
Moody's Investors Service changed the outlook on the Government of
Serbia's Ba3 ratings to positive from stable. Concurrently, Moody's
has affirmed the Ba3 long-term issuer and senior unsecured ratings.


The key drivers for the change in the rating outlook to positive
from stable are:

(1) Serbia's improving debt metrics that will bring the government
debt-to-GDP ratio in line with the median of Ba-rated peers; and

(2) The country's robust medium term economic growth outlook, on
the back of more balanced growth drivers, which in turn should
support the country's positive fiscal and debt trends.

The affirmation of Serbia's Ba3 sovereign ratings balances its high
wealth levels compared to similarly rated peers against the
country's sizeable informal sector. Serbia's institutional
framework benefits from ongoing enhancements as part of its
European Union (EU) accession process although weaknesses in the
rule of law and judicial independence persist. The progress made on
the restructuring of state-owned enterprises (SOEs) reduces
immediate fiscal risks, although contingent liabilities still
remain sizeable. While government debt has fallen precipitously,
the gradually declining but still large share denominated in
foreign currency poses a credit risk, as does the still high degree
of euroisation in the banking sector. Moody's expects the Serbian
government's commitment to the EU accession process, together with
the recent International Monetary Fund (IMF) programme, will
support broad policy continuity.

Serbia's long-term foreign-currency bond ceiling remains Ba1 and
the long-term foreign-currency bank deposit ceiling remains B1. The
long-term local-currency bond and bank deposit ceilings remain
unchanged at Baa2. Finally, the short-term foreign-currency bond
and bank deposit ceilings remain at NP.

RATINGS RATIONALE

RATIONALE FOR CHANGING THE OUTLOOK TO POSITIVE

FIRST DRIVER: IMPROVING PUBLIC SECTOR DEBT METRICS, WITH
DEBT-TO-GDP RATIO NEARING THE MEDIAN FOR Ba-RATED PEERS

Serbia's fiscal metrics have been improving since March 2017, the
time of the last rating action, at a faster pace than expected by
both Moody's and international financial institutions (IFIs), with
the general government debt burden reaching 54.5% of GDP at the end
of 2018 compared to 68.8% at the end of 2016.

While favourable exchange rate dynamics have benefitted debt
metrics, Serbia's marked fiscal consolidation, with primary budget
surpluses averaging 2.7% of GDP since 2016 on the back of both
spending constraints and strong revenue generation, gives Moody's
confidence that the substantial fiscal gains can be maintained. The
2018 restatement of national accounts, which the IMF notes has
helped to improve coverage of the informal economy, also
contributed to the decline in the debt to GDP ratio.

Despite moving to a more procyclical fiscal policy stance since
2018, including plans to further raise public sector wages and
pensions, Moody's expects ongoing primary surpluses and strong
nominal GDP growth will support continued favourable fiscal
dynamics. The authorities are targeting overall budget deficits of
around 0.5% of GDP through to 2022 according to its Draft Fiscal
Strategy, which would still allow the government debt to GDP ratio
to fall to around 50% of GDP by the end of 2020, in line with the
median of Ba-rated peers. If met, Serbia's debt reduction over the
5 years to 2020 would amount to around 21 percentage points, the
fastest among any Ba-rated sovereign.

Moody's also expects improving debt affordability will provide
additional budget space, helped by favourable market conditions in
light of the stronger fiscal position and early redemptions of
relatively expensive dollar denominated debt.

Importantly, continued engagement with the IMF, through a new
Policy Co-ordination Instrument signed in 2018, will help to
preserve the prudent budgetary stance and support fiscal reforms.
Furthermore, Serbia has continued to make progress in reducing the
fiscal risks posed by SOEs, reflected in state aid falling to 2.7%
of GDP in 2018 from a peak of 4.9% in 2014 and recent successful
privatizations.

SECOND DRIVER: ROBUST MEDIUM TERM GROWTH PROSPECTS, WHICH IN TURN
WILL SUPPORT FISCAL CONSOLIDATION

Serbia's economic growth prospects have been on an improving trend,
reflecting a better balance between internal and external growth
drivers as well as improving investment prospects, with GDP growth
averaging 3.2% between 2016-2018, compared to around 1% in the
three years prior. Continuing strong growth prospects in the medium
term, with GDP growth expected to average around 3.4% in the coming
years, will in turn assist the government's efforts in
strengthening its balance sheet by reducing indebtedness.

Serbia's economic growth has become more balanced as the country's
export potential has benefitted from a shift to the tradeable
sector while stronger investment spending, alongside sustained
improvements in labour market conditions, will help to support
domestic activity in the face of more challenging external
conditions.

In particular, gross fixed capital formation, which grew more than
9% last year, will continue to benefit from Serbia's greater
macroeconomic stability and a gradually improving business
environment. In particular, private investment will be supported by
the strengthening banking system with the resumption of positive
lending growth to corporates and the improvement in banks' asset
quality given the substantial decline in non-performing loans.

Moody's also expects an increasing role for capital expenditures,
which reached 3.9% of GDP in 2018, the highest level since 2007,
supported by ongoing enhancements to the public investment
framework which improves spending execution. In particular,
investment in the country's transport infrastructure, with support
from EU and other IFI funding, will benefit medium term growth. For
example, planned enhancements to the road and railway connections
with Serbia's neighbours and central Europe, helping to address the
deficiencies in public infrastructure development, which the IMF
estimates is around 30% lower than the EU average, will help
stimulate regional trade and support further investment.

Serbia's growth outlook will also continue to benefit from sizeable
net foreign direct investment inflows (FDI), which reached 7.5% of
GDP in 2018 according to the National Bank of Serbia. Moody's
expects Serbia's relatively large and diverse manufacturing sector
will continue to attract foreign investment, having accounted for
around a third of FDI inflows since 2013, helping to support
Serbia's export potential and job creation. FDI prospects are
further strengthened by a broadening investor base, extending
beyond the EU, which has traditionally accounted for the majority
of FDI, most notably the increasing role of China (A1 stable) as an
investor in Serbia.

RATIONALE FOR AFFIRMATION OF THE Ba3 RATING

The factors supporting the affirmation of Serbia's Ba3 sovereign
rating include its relatively high per capita income and the
structural reforms implemented since 2015, including to the labour
market and SOE sector, which support real growth prospects. Serbia
also benefits from the ongoing enhancements to its institutional
framework as part of its EU accession process, although weaknesses
with regard to the rule of law and judicial independence persist.
Furthermore, the progress made on the restructuring of SOEs has
helped to reduce immediate fiscal risks, although contingent
liabilities still remain sizeable.

Balanced against these are Serbia's still sizeable informal sector
while structural challenges in the labour market, including
elevated youth unemployment, weigh on potential growth. While
government debt has fallen precipitously, the gradually declining
but still large share denominated in foreign currency poses a
credit risk, particularly in the event of a sharp deterioration in
the Serbian dinar, as does the still high degree of euroisation in
the banking sector. At the same time, fragile relations with
regional partners leave Serbia susceptible to periodic trade
disputes.

The Serbian government's commitment to the EU accession process,
together with the recent IMF programme, supports ongoing broad
policy continuity and Moody's considers it unlikely that
forthcoming parliamentary elections would significantly derail the
reform agenda.

WHAT COULD MOVE THE RATING UP/DOWN

Serbia's rating would likely be upgraded if Moody's concludes that
the government's policy stance will continue to support the fiscal
consolidation and economic growth needed to ensure that the marked
debt reduction gains in recent years are broadly preserved, and
likely fall further. In particular, the ability to successfully
navigate the fiscal pressures posed by the forthcoming
parliamentary elections due to be held by late April 2020,
including from promised increases in wages and pensions, without
jeopardizing the downward trajectory in the government debt burden,
would be credit positive. Measures that contain public expenditure
will likely be a key element of such a policy framework, including
adherence to the IMF programme targets. The positive outlook
signals that Moody's would expect to draw such a conclusion, or
not, over the next 12-18 months, and quite possibly within 12
months.

Subsequent upward pressure on the rating would arise from progress
on fiscal reforms, including improvements to the fiscal framework
which bolster the transparency and operation of fiscal rules.
Progress on planned reforms and privatisations of state-owned
financial institutions which further improve the soundness of the
banking system would be similarly positive. Macroeconomic reforms
that boost growth potential by addressing structural bottlenecks in
the economy, including further reform of SOEs, would also support
upward rating pressure in the future.

The positive outlook signals that a downgrade is currently very
unlikely. However, the outlook, and ultimately the rating, could
come under downward pressure from a reduced commitment on the part
of the government to fiscal consolidation. An inability or
unwillingness to provide offsetting fiscal measures in the face of
a markedly weaker growth outlook, a sharp deterioration in the
dinar which crystallizes exchange rate risks in the debt burden, or
a need to provide substantial support to the SOE sector, would be
negative for the rating. More broadly, a waning commitment to the
current reform agenda, including reforms which continue to reduce
the credit risks from the large SOE sector, would be negative.
Finally, the emergence of structural imbalances in the form of a
large and increasingly difficult-to-finance current account deficit
would pose downward pressure.

GDP per capita (PPP basis, US$): 17,555 (2018 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 4.3% (2018 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 2% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 0.6% (2018 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -5.3% (2018 Actual) (also known as
External Balance)

External debt/GDP: 60.9% (2018 Actual)

Level of economic development: Moderate level of economic
resilience

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On September 03, 2019, a rating committee was called to discuss the
rating of the Government of Serbia. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have increased. The issuer's institutional
strength/ framework, have not materially changed. The issuer's
fiscal or financial strength, including its debt profile, has
increased. The issuer's susceptibility to event risks has not
materially changed.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in November 2018.



===============
S L O V E N I A
===============

HOLDING SLOVENSKE: Moody's Ups CFR to Ba1, Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Investors Service upgraded the long-term corporate family
rating of Holding Slovenske Elektrarne d.o.o. to Ba1 from Ba2 and
the probability of default rating to Ba1-PD from Ba2-PD.
Concurrently, Moody's has changed the outlook on HSE's ratings to
stable from positive.

A CFR is an opinion of the HSE group's ability to honour its
financial obligations and is assigned to HSE as if it had a single
class of debt and a single consolidated legal structure.

RATINGS RATIONALE

RATIONALE FOR RATINGS UPGRADE

The rating upgrade reflects HSE's lower debt leverage, and Moody's
expectation that the company will continue to benefit from robust
electricity prices compared to the past few years, which together
with a modest capital expenditure programme and an expected absence
of dividends to shareholders, should enable further deleveraging
over the next few years.

The higher electricity prices reflect the sharp rise in EU carbon
prices in the second half of 2018 which were a key driver of higher
profits in HSE's hydro generation division, and which is expected
to continue. The price of EU Allowances has risen from below
EUR8/tonne in January 2018 to above EUR24/tonne at the end of last
year, supporting higher electricity prices.

The lower debt levels are evidenced by improved credit metrics for
the financial year ending 2018 when HSE reported a lower leverage
ratio of 5.5x Net debt/EBITDA compared to 5.7x in 2017. A
combination of moderate capital expenditure focused mainly on
maintenance, higher power prices and the absence of shareholder
distributions enabled the company to reduce its reported financial
debt by nearly 8% to EUR784 million per year end 2018.

HSE falls under Moody's rating methodology for Government-Related
Issuers due to its 100% ownership by the government of Slovenia
(Baa1 positive). The rating incorporates three notches of uplift
from HSE's Baseline Credit Assessment (BCA) of b1, which has been
upgraded from b2, reflecting the combination of (1) high default
dependence (reflecting the company's strategic importance to the
domestic economy); and (2) high likelihood of extraordinary support
being provided by the Slovenian government in case of financial
distress.

More generally HSE's rating reflects (1) HSE's position as the
leading electricity generator in Slovenia; (2) the high share of
profitable hydropower generation which benefits from rising power
prices; (3) the company's focus on debt reduction as expressed by a
target ratio of Net debt/EBITDA below 4.0x which should benefit
from only selective capital expenditure over the next years,
largely for maintenance; and (4) the shareholder's continued
support in the form of restraint of dividend payouts. Moody's
assumes that HSE's deleveraging efforts will be supported by
elevated Slovenian power prices on the back of (1) growing
electricity demand in the Balkans region; and (2) carbon allowance
prices remaining at least on current levels of around EUR25/tonne.

However, HSE's rating is constrained by (1) the company's size and
lack of diversification; (2) the inherent earnings volatility of
the weather-dependent hydropower generation which is also the key
source of cash flows; (3) the difficult operating environment for
its thermal power generation, mitigated by the higher efficiency
and lower carbon-intensity of the TES Sostanj plant following the
decommissioning of its old unit 4, the refurbishment of unit 5 and
the overhaul of the newest unit 6; and (4) the group's still high,
though steadily reducing, leverage.

RATIONALE FOR THE STABLE OUTLOOK

The rating outlook is stable, reflecting Moody's expectation that
credit metrics should further improve with Funds From Operations
(FFO)/Debt ranging between 10% and 20% as a result of continued
deleveraging and high power prices. The outlook also incorporates
Moody's expectations of (1) a moderate capital expenditure
programme over the 2019-21 period, focused mainly on maintenance;
(2) Slovenian baseload power prices remaining on average above EUR
50/megawatt hour, which should filter into earnings; and (3) the
continued absence of shareholder distributions. The outlook also
incorporates Moody's assumption of a high likelihood of government
support in case of financial distress of the company with
Slovenia's sovereign credit quality remaining at least unchanged.

WHAT COULD CHANGE THE RATING UP/DOWN

HSE's BCA could be upgraded if the company's stand-alone credit
profile continues to improve, as evidenced by an FFO/Debt ratio
sustainably above 20%.

The rating could be upgraded if HSE succeeds in materially reducing
its outstanding financial debt further while maintaining good
headroom against the financial covenants embedded in its bank loan
agreements to deal with inherent earnings volatility. In addition,
an upgrade would require no change from Moody's expectation of
continued high support from the Slovenian government, which is
incorporated into HSE's rating.

The rating could come under negative pressure, if (1) FFO/Debt were
to fall sustainably below 10%; or (2) HSE was unable to meet its
bank covenant tests, unless readily remediable and/or (3) there is
a material deterioration in the credit quality of the government of
Slovenia and/or a reduction in the support assumptions currently
incorporated into Moody's assessment.

Headquartered in Ljubljana, Slovenia, HSE is the largest power
generator in the country. Its total installed capacity as of the
end of 2018 amounted to around 1,983 megawatts, which represented
some 60% of the total installed generation capacity in Slovenia.
HSE's generation base comprises various run-of-river hydro-power
plants, one pump-storage plant, as well as lignite-fired and small
gas-fired thermal power plants. In addition, HSE owns and operates
a coal-mine, which covers all of the group's thermal generation
needs. The company is 100% owned by the government of Slovenia and
reported an EBITDA profit of EUR128 million on EU1,490 million of
total revenues in the financial year 2018.

The methodologies used in these ratings were Unregulated Utilities
and Unregulated Power Companies published in May 2017, and
Government-Related Issuers published in June 2018.



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

UKRAINE: Fitch Upgrades LT IDRs to B, Outlook Positive
------------------------------------------------------
Fitch Ratings has upgraded Ukraine's Long-Term Foreign- and
Local-Currency Issuer Default Ratings to 'B' from 'B-'. The
Outlooks are Positive.

KEY RATING DRIVERS

The upgrade of Ukraine's IDRs and the Positive Outlook reflects the
following key rating drivers and their relative weights

HIGH

Ukraine has demonstrated timely access to fiscal and external
financing, improving macroeconomic stability and declining public
indebtedness, while a shortened electoral period has reduced
domestic political uncertainty. Expected macroeconomic policy
continuity, the new government's strong stated commitment to
structural reforms and engagement with IFIs mean that Fitch expects
further improvements in creditworthiness.

President Volodomyr Zelensky's strong popular support and his
party's control of government and parliament provide the government
with a uniquely strong position to move ahead with its
reform-minded policy agenda. After a commanding victory in the
second round of presidential elections, the president's party
Servant of the People (SOP) obtained control of the Verkhovna Rada
(256 out of 450 seats) in snap parliamentary elections (originally
scheduled for end October). The recently formed government under
Prime Minister Oleksiy Honcharuk includes technocratic, pro-western
and reform-minded ministers. Key economic policy makers such as
Minister of Finance Oksana Markarova remain in their positions,
supporting the continuity of policies underpinning reduced
macroeconomic imbalances and improved stability.

The new Prime Minister intends to negotiate a new and longer
programme with the IMF, possibly an Extended Fund Facility (EFF),
in the near term. The high likelihood of continued IMF engagement
will facilitate access to official and market financing to meet
large sovereign debt repayments in 2020-2021, and serve as an
anchor for policies and reforms that could potentially lift growth
prospects.

Prudent fiscal management, stable growth, declining interest rates
and moderate exchange rate depreciation pressure will support
continued government debt reduction. Fitch expects government debt
to decline to 47.9% of GDP (55.8% including guarantees) by
end-2019, down almost 20pp from the peak of 69.2% (80.9% including
guarantees) in 2016 and below the current 57.5% 'B' median, and
reach 44.4% by 2021. Government debt dynamics are highly exposed to
currency risk as 67% is foreign currency denominated, but greater
non-resident participation in the local bond market will help
increase the share of local currency debt and extend maturities.

MEDIUM

Exchange rate flexibility, continued capital inflows, albeit at a
slower pace, unlocking of external financing due to a new IMF
programme and moderate external imbalances reduce near-term
pressures on international reserves. Despite significant debt
repayments, domestic political uncertainty and emerging-market
volatility, the National Bank of Ukraine (NBU) purchased USD3.2
billion year to date, and Fitch expects international reserves to
finish 2019 at USD21.8 billion, USD1.0 billion higher than
end-2018, and rise moderately to USD22.4 billion by 2021. However,
reserve coverage (2.9 months of CXP) will remain weaker than 'B'
peers (3.4).

Ukraine's strengthened policy framework will deliver improved
macroeconomic stability underpinned by exchange rate flexibility,
the NBU's commitment to its inflation target (5% plus or minus 1%
in 2020) and moderate fiscal imbalances. Fitch expects average
inflation to decline to 8.5% in 2019 and 5.7% in 2021, slightly
above the forecast 5% current 'B' median. The NBU has scope to cut
the policy interest rate substantially from 16.5% over 2019-2020
towards its estimate of the medium-term equilibrium level of real
rates of 3%. Maintaining the NBU's financial supervision and
monetary policy independence is key to maintaining its
credibility.

Fiscal risks derived from the electoral year have not materialised.
Fitch expects Ukraine's general government deficit to reach 2.1% of
GDP in 2019 and average 2.3% in 2020-2021. The government is
preparing a three-year budget (2020-2022) under the Expenditure
Framework, which caps budget deficits at 3% of GDP, establishes
that actual deficits cannot surpass budgeted levels and limits new
issuance of guarantees to 3% of general fund revenues. Fitch
expects fiscal policy initiatives to remain consistent with
budgetary targets and taking into account the high rigidity of
budget spending, which leaves little room for revenue-negative
measures or increased current spending.

Ukraine's 'B' IDRs also reflect the following key rating drivers

External financing needs (current account deficits (CAD) plus
public-and private-sector amortisation) will remain high, at 69%
and 75% of international reserves in 2020-2021. External public
debt amortisation rises to USD4.8 billion in 2020 and USD4.6
billion in 2021 from USD4.3 billion in 2019. External bond
repayments will average USD2.4 billion in 2020-2021.

The government has already completed 80% of its 2019 financing plan
and expects to meet its near-term debt repayments through a mix of
official financing, market issuance and using part of its own cash
resources. Continued engagement with the IMF is key to obtaining
official disbursements from EU, potential new multilateral
financing, and access to external markets. Foreign investors
markedly increased their share of domestic debt to 10.9% (19% not
including NBU holdings) at the end of August, from a mere 0.8% in
2018. The government currently holds USD2.7 billion in FX and UAH62
billion in local currency, which provides short-term flexibility.

A new IMF agreement will likely include structural benchmarks
including legislation strengthening financial sector supervision
('Split law'), development of a market for agricultural land,
continued progress and tangible results in the fight against
corruption, progress in privatisation and establishing a market
mechanism for domestic gas prices. Risks to the programme stem from
Ukraine's weak track record in completing previous programmes,
potentially negative judicial rulings that lead to reform
reversals, for example in relation to PrivatBank, execution risks
after reforms are approved in parliament due to capacity
constraints, and potential fragmentation of the President's Rada
representation in the event of policy differences over policy
priorities or influence of still powerful vested interests.
Although the reported links between the new administration and Igor
Kolomoisky, the oligarch and previous owner of PrivatBank, pose a
downside risk, Fitch does not expect these to prevent a new IMF
programme and progress with structural reforms.

Ukraine's CAD remains moderate. Fitch forecasts the CAD to widen
from 2.5% of GDP in 2019 to 2.9% in 2020 and 3.4% 2021 reflecting
reduced gas transit fees (estimated USD2.8 billion in 2018) as the
current contract between Gazprom and Naftogaz expires at the end of
2019, and the Nord Stream II pipeline is expected to come into line
leading to reduced transport volumes through Ukraine, albeit with
some delay. Fitch does not anticipate a rapid increase in FDI
inflows, but continued non-resident inflows into the local debt
market, official lending and sovereign issuance will help Ukraine
meet its external financing needs.

After a strong 2Q19 (4.6% yoy), Fitch projects 3.4% growth in 2019,
reflecting strong domestic demand and exports driven by the
agriculture sector (wheat harvest). Growth will moderate slightly
(3.2%) in 2020 due to reduced consumer impulse, normalisation of
the agricultural sector performance and some spill-overs from
reduced gas transport volumes. Fitch expects that failure to reach
an agreement between Gazprom and Naftogaz will impact service
exports, but not lead to energy shortages.

Near-term risks for financial stability have declined due to
improved capitalisation, and a more favourable macroeconomic
backdrop. Profitability has returned to the banking sector (59.5%
state-owned), but progress in reducing the high share of NPLs
(50.8%, albeit 90% provisioned) is slow and mostly driven by
foreign banks. Regulatory capital (17.47% in June) has improved,
and the NBU will increase capital requirements further. Credit to
households maintains a strong pace (11.7%) driven by growth in
consumer lending (17.3%). Deposit and credit dollarisation remain
high, but declined to 40.5% in June 2019.

Fitch does not anticipate a near-term resolution nor a
destabilising escalation in the conflict in Eastern Ukraine with
Russia. The new government has expressed its openness to re-engage
with the Minsk Process and with the non-government controlled
territories. Ukraine will maintain continued financial and
technical support from IFIs, EU and the US, as indicated by the
pro-Western cabinet appointments.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Ukraine a score equivalent to a
rating of 'B' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee did not adjust the output from
the SRM to arrive at the final LT FC IDR.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three year centred
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead to
an upgrade are:

  - Increased foreign currency reserves and external financing
flexibility.

  - Improvement of structural indicators, such as governance
standards.

  - Higher growth prospects while preserving improved macroeconomic
stability.

  - Further declines in government indebtedness and improvements in
the debt structure.

The main factors that could, individually or collectively, lead to
the Outlook being revised to Stable are:

  - Re-emergence of external financing pressures or increased
macroeconomic instability, for example stemming from failure to
agree an IMF programme or delays to disbursements from it.

  - External or political/geopolitical shocks that weaken the
macroeconomic performance and Ukraine's fiscal and external
position.

  - Failure to improve standards of governance, raise economic
growth prospects or reduce the public debt to GDP ratio.



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

ABOKADO: To Close Underperforming Stores Under CVA
--------------------------------------------------
James Hansen at Eater reports that Abokado will close
underperforming stores across London as part of a company voluntary
arrangement.

The "Pacific-inspired" chain, that operates 23 restaurants across
London and is a mainstay of commuter breakfasts and office lunches,
issued a statement blaming "sophisticated banking fraud" for its
immediate peril, as well as a familiar cocktail of cost pressures,
Eater relays, citing Propel.

The company's most recent accounts filed under Elvetham Limited
accounted for the year to March 31, 2018, and recorded "record
profits . . . achieved despite the well-publicized difficulties
facing the restaurant sector including unprecedented cost
pressures, weak consumer sentiment and over-supply", Eater
discloses.  While profits rose, turnover actually dropped between
2017 and 2018, which in turn forecasted the "softening sales" that
the chain reports as it announces its CVA, Eater notes.

According to Eater, the chain says that "in July the business
suffered a significant sophisticated online banking fraud, which
materially impacted working capital and compounded the trading
issues.  The fraud is subject to investigation by the relevant
authorities but the directors consider it unlikely there will be
any recovery."


BBD BIDCO: S&P Assigns Prelim 'B' Long-Term ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings assigns its preliminary 'B' long-term issuer
credit rating to the intermediate group holding company BBD Bidco
Ltd. (BCA Marketplace PLC). At the same time, S&P assigned its
preliminary 'B' issue and '3' recovery ratings to BBD Bidco's
senior secured term loan B facilities.

BBD Bidco Ltd. is the intermediary holding company for BCA
Marketplace PLC (BCA). BCA is a vertically integrated multi-channel
business-to-business vehicle-exchange platform that provides
vehicle remarketing, vehicle buying through its We Buy Any Car
(WBAC) business, and transportation and distribution services to
car manufacturers and dealerships.

In the U.K., BCA has 23 auction centers through which over one
million vehicles were sold in the financial year ending March 31,
2019 (FY2019). BCA also has 29 auction centers across 11 European
countries, through which 388,000 vehicles were sold in FY2019. The
group conducts physical and online auctions and sales for cars,
commercial vehicles, and motorbikes. BCA serves fleet operators,
manufacturers, finance and leasing houses, rental companies,
national authorities, and professionals throughout the U.K. and
Europe.

A key strength of BCA's business model is its utilization of data
gathered from its automotive outsourcing service and car auctions
to gain insights through data analytics. BCA uses these insights to
power both pricing on its vehicle-buying platform WBAC and to
inform decisions when reimaging vehicles (improving vehicles
through minor repairs and cleaning) for auction. S&P expects that
data analytics will continue to drive BCA's new mobile platform,
Cinch, which will provide car dealers with a platform to target
consumers, with BCA receiving fees on a successful lead, as opposed
to subscription fees.

On June 26, 2019, private equity firm TDR LLP submitted a
recommended final offer for BCA. Intermediate group holding company
BBD Bidco is jointly owned by TDR and a co-investor, and was
created to facilitate TDR's 100% acquisition of BCA. The
acquisition will be funded by the following facilities and equity:

-- A GBP972 million-equivalent, split-currency (euro/pound
sterling) term loan B;

-- A preplaced GBP265 million second-lien term loan;

-- GBP250 million of preference shares provided by a third party;

-- An equity contribution of GBP737 million from both TDR and a
co-investor; and

-- GBP42 million of cash from the balance sheet.

Funds raised will be used for:

-- GBP1,854 million of considerations to BCA's shareholders;

-- The repayment of GBP373 million of outstanding debt at BCA;
and

-- Fees and taxes of GBP42 million.

S&P expects the transaction to close in late October 2019.

S&P said, "Our 'B' preliminary issuer credit rating reflects BCA's
market-leading position in Europe in vehicle remarketing, vehicle
buying, and automotive services. BCA holds market-leading positions
in key automotive markets in the U.K., Germany, France, and the
Netherlands. All these markets have large car parcs--the total
number of vehicles, both used and new, in a country--which we
expect to grow at a compound annual rate of 1.6%-1.8% over the next
few years." This should support continued robust revenue growth for
BCA, which beat the market with 24% growth in FY2019. BCA's high
growth rate is the result of a limited number of new entrants in a
fragmented industry, due to high barriers to entry consisting of
the need to own sites to store cars and hold physical auctions, and
the strong and established branding that BCA and WBAC have. BCA's
above-market growth is driven by new contract wins with large
original equipment manufacturers (OEMs) and continued expansion in
Europe, where the remarketing division is small in comparison to
the U.K. business.

BCA's integrated suite of services, both purely transactional
(auctions and vehicle buying) and value-added (refurbishment,
transport, valuation, and other services), provides BCA with a
unique, vertically integrated solution to dealers and OEMs. In one
form or another, BCA interacted with 10.7 million unique cars in
the U.K. in FY2019, around one-third of all the registered cars in
the U.K., with each interaction adding additional data to its data
analytics through car registrations and vehicle identification
numbers, including, but not limited to: make, model, color, and
engine size. These data sets provide BCA with the capability to
make more informed offers through WBAC, reducing the risk of
valuation losses between the consumer offer price and the auction
sale price, and leading to improved operating efficiency and
resilient margins. BCA's outsourcing services, combined with WBAC
and remarketing, allow greater route density when transporting
vehicles, providing a competitive advantage over new entrants,
while improving efficiency.

On the other hand, S&P sees BCA's high degree of revenue and EBITDA
concentration on the U.K. as a key constraint on the rating. BCA
generates 73% of its EBITDA from the U.K., and while market
fundamentals such as U.K. car parc growth have been positive in
recent years, the risk of specific events in the U.K. or Europe,
such as Brexit or the worldwide harmonized light vehicle test
procedure (WLTP), could affect volume growth. For example, in 2018,
a temporary disruption to supply resulted in lower volumes flowing
through OEM closed auctions. This was partially offset by a
deliberate reduction in the WBAC EBITDA margin, resulting in higher
WBAC volumes while maintaining volumes and margins at auctions.

S&P said, "We believe that BCA is in a relatively good position if
a no-deal Brexit occurs, as there is limited cross-border trade
between the U.K. and EU. However, we see a risk that if a no-deal
Brexit reduces churn--as we saw temporarily in September 2018 due
to the WLTP--we could see reduced profitability from lower
remarketing and automotive services revenues. We note management's
plan to expand in Europe, and believe this will be credit-positive
in the medium term."

While BCA has grown significantly since going public, reaching GBP3
billion in revenues in FY2019, some of this growth is due to the
accounting treatment of revenues and the cost of goods sold. This
is primarily the case for the vehicle-buying division, as revenues
are recognized as the gross sale price of the vehicle and the cost
of goods sold as the amount paid to the consumer when buying the
vehicle. Compared to similarly rated pure-play car auction
services, BCA is slightly smaller and less geographically diverse
on a like-for-like basis, and for S&P to consider BCA's scale as
material, it would need to see further material growth. The group
has a negative working capital profile, primarily driven by U.K.
and international remarketing, while vehicle buying and automotive
services have a positive net working capital profile. Working
capital within the group is well managed.

S&P said, "We view BCA's profitability as average compared to that
of peers, despite a group EBITDA margin of 6.9% in 2018. BCA's
remarketing margin was 32% (excluding outsource solutions and
partner finance) for FY2019, while WBAC's margin was 2%. BCA has
limited direct peers that offer the same wide variety of services,
and the group EBITDA margins are distorted by WBAC's recognition of
revenues at the full value of the vehicle sold. We expect the group
margin to improve over the next three years as BCA leverages its
pricing and volume mix. BCA's closest peer is Cox Enterprises
Inc.'s Manheim unit, which is significantly smaller in scale in
Europe. BCA's best rated peer is KAR Auction Services, Inc. (KAR).
KAR is slightly larger than BCA and has a higher EBITDA margin, as
it is a pure-play auctioneer without the metal costs of WBAC.

"We view BCA's financial risk profile as highly leveraged, which is
a key constraint on the rating. Adjusted debt to EBITDA following
the acquisition is around 8x at the end of 2019, but we expect
deleveraging to 7.3x in 2020 due to EBITDA growth.

"We adjust reported debt in 2018 for GBP428.6 million of operating
leases, GBP34.7 million of finance leases, and GBP6.5 million of
pension obligations. We reclassify sale-and-leaseback transactions
from investing cash flow--capital expenditure (capex)--to financing
cash flow. We view BCA's partner finance facility as captive
finance. This is a secured facility that BCA uses to provide
short-term financing for its preferred car dealers, and which
generated GBP19.1 million of revenue, GBP11.6 million of EBITDA,
and had debt of GBP120.1 million in 2018. We believe that given the
self-liquidating, nonrecourse nature of the facility and the
limited equity commitment required by BCA, this facility does not
pose a material risk to our view of leverage. Therefore we exclude
revenue, EBITDA, debt, and cash flows from the facility when
calculating BCA's adjusted metrics. We treat as debt the
third-party preference shares of GBP250 million with a
payment-in-kind interest rate of 12%, as we view the shares as
having limited alignment of economic interest with TDR and the
co-investor. The preference shares are subordinated to all other
debt.

"We assess BCA's management and governance as fair, reflecting
BCA's experienced senior management team and clear operational and
financial goals. Executive management has a good track record when
it comes to delivering operational targets. We note that the
executive chairperson, Ms. Palmer-Baunack, has been a driving force
behind the group's recent growth, and remains instrumental in the
execution of the group's future acquisition strategy. However, our
view of management and governance is constrained by the controlling
ownership of TDR, and a lack of a fully independent board, as the
role of chief executive and chairperson are combined into that of
executive chairperson. However, we note the rationale behind this
decision given Ms. Palmer-Baunack's strong experience and industry
knowledge.

"The stable outlook reflects our expectation that BCA will continue
to expand its geographic footprint and grow its revenues, gradually
improving profitability per car and overall group margins.
Specifically, we forecast robust revenue growth of at least 10% per
year over the medium term, with an S&P Global Ratings-adjusted
EBITDA margin of about 7% and stable cash generation. We expect
gradual deleveraging from around 8.0x as of day one following the
acquisition to around 7.0x-7.5x in 2020.

"We could lower the ratings if we expected BCA's credit metrics to
deteriorate materially beyond current levels, particularly if funds
from operations (FFO) cash interest coverage falls below 2.0x or
free operating cash flow (FOCF) turns negative. This could occur if
the group does not achieve business growth in line with our
forecasts, makes material debt-financed acquisitions, or
distributes dividends to shareholders.

"In our opinion, an upgrade is unlikely over the medium term due to
BCA's high leverage. We could consider an upgrade if the group
materially reduces leverage to a level commensurate with an
aggressive financial risk profile--that is, if adjusted debt to
EBITDA decreased sustainably below 5x and adjusted FFO to debt
increased sustainably above 12%."

BCA operates a leading used-vehicle remarketing and buying
businesses in the U.K. and Europe. The group's four main operating
divisions trade as BCA (U.K. and International), WBAC, Automotive
Services, and Cinch. BBD Bidco is an intermediate group holding
company that is jointly owned by TDR and a co-investor, and was
created to facilitate TDR's 100% acquisition of BCA.


EUROSAIL 2006-1: S&P Raises Class E Notes Rating to B (sf)
----------------------------------------------------------
S&P Global Ratings raised its ratings on Eurosail 2006-1 PLC's
class C1a, C1c, D1a, D1c, and E notes and affirmed its ratings on
the class A2c, B1a, and B1c notes.

S&P said, "The rating actions follow the implementation of our
revised methodology and assumptions for assessing pools of U.K.
residential loans. They also reflect our full analysis of the most
recent transaction information that we have received and the
transaction's structural features as of March 2019.

"Upon revising our U.K. RMBS methodology, we placed our ratings on
all classes of notes from this transaction 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."

Since December 2012, the servicer (Acenden Ltd., which recently
transferred its servicing operations to Kensigton Mortgage Co.
Ltd.) has reported arrears, including amounts outstanding,
delinquencies, and other amounts owed, in its investor reports.

Other amounts owed include, among other items, arrears of fees,
charges, costs, ground rent, and insurance. Delinquencies include
principal and interest arrears on the mortgages, based on the
borrowers' monthly installments. Amounts outstanding are principal
and interest arrears, after payments by borrowers are first
allocated to other amounts owed.

In this transaction, the servicer first allocates any arrears
payments to other amounts owed, then interest and principal
amounts. From a borrowers' perspective, the servicer first
allocates any arrears payments to interest and principal amounts,
and then to other amounts owed. This difference in the servicer's
allocation of payments for the transaction and the borrower results
in amounts outstanding being greater than delinquencies. S&P has
accounted for these other amounts owed by using the available
reported loan-level data.

The pool factor (the outstanding collateral balance as a proportion
of the original collateral balance) in this transaction is 14%.

The notes are currently amortizing sequentially, as the
transaction's pro rata arrears triggers were breached in June 2012,
when 90-plus-day amounts outstanding exceeded 22.5%. S&P believes
the transaction will continue to pay principal sequentially, and it
has incorporated this assumption into its cash flow analysis. The
sequential amortization, combined with a nonamortizing reserve
fund, has increased the transaction's available credit enhancement
since S&P's previous review.

  WAFF And WALS Analysis

  Eurosail 2006-1 PLC   

  Rating level WAFF(%) WALS(%) Expected credit loss (%)
  AAA         35.10   27.79  9.75
  AA            30.02  21.75  6.53
  A           26.79  12.77  3.42
  BBB          23.31  8.09   1.89
  BB            19.53  5.54   1.08
  B          18.57  3.71   0.69

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

S&P said, "The lower expected losses combined with an increase in
available credit enhancement allows the class A2c, B1a, B1c, C1a,
and C1c notes to pass our stresses at higher rating levels than
those currently assigned. However, because the transaction's
re-investment account and swap documentation rating triggers have
been previously breached but not remedied by Barclays Bank PLC, our
current counterparty criteria cap our ratings on the notes in this
transaction at 'A', which is the long-term issuer credit rating on
Barclays Bank.

"The passing cash flow results for the class D1a, D1c, and E notes
are better than the results as of our last review. We have not
given full benefit to the modeling results in our rating decision
to account for their subordinated position in the payment structure
and lower level of available credit enhancement compared to that of
the senior notes. We have therefore raised our ratings to 'BB (sf)'
on the class D1a and D1c notes and to 'B (sf)' on the class E
notes.

"Our credit stability analysis indicated that the maximum projected
deterioration that we would expect at each rating level over one-
and three-year periods, under moderate stress conditions, is in
line with our credit stability criteria."

Eurosail 2006-1 is a U.K. nonconforming RMBS transaction backed by
loans originated by Southern Pacific Mortgage Ltd. and Southern
Pacific Personal Loans Ltd.

  Ratings List

  Eurosail 2006-1 PLC
  
Class Rating to  Rating from

  C1a  A (sf)    BBB+ (sf)
  C1c  A (sf)    BBB+ (sf)
  D1a  BB (sf)    B (sf)
  D1c  BB (sf)    B (sf)
  E    B (sf)    B- (sf)
  A2c  A (sf)    A (sf)
  B1a  A (sf)    A (sf)
  B1c   A (sf)    A (sf)


KCA DEUTAG: S&P Alters Outlook to Negative & Affirms 'CCC+' ICR
---------------------------------------------------------------
S&P Global Ratings revised the outlook on KCA Deutag Alpha Ltd.
(KCAD) to negative from stable, and affirmed the long-term issuer
credit rating on KCAD and the issue ratings on its senior secured
facilities at 'CCC+'.

The outlook revision follows KCAD's announcement of a strategic
review of its capital structure and the company's recent results
announcement, which did not allude to a recovery in the oil and gas
drilling market.

S&P continues to see KCAD's capital structure as unsustainable, and
expect S&P Global Ratings-adjusted debt to EBITDA of about 6.5x in
2019, compared with more than 7.0x in 2018, and overall adjusted
debt of close to $2 billion.

S&P said, "While we understand that KCAD has only just started
evaluating the different options to address its capital structure,
we see a greater risk that the company will launch a distressed
exchange offer--offering debtholders of a lower cash value than the
original par amount. If KCAD chooses this option, we are likely to
lower the long-term rating on KCAD to 'SD' (selective default),
before assigning a new rating to the company under the new capital
structure."

KCAD's strategic review of its capital structure comes on the back
of a weak market for oilfield service companies, with low day rates
affecting KCAD's cash flow generation. KCAD's total backlog on Aug.
1, 2019, is about $5.4 billion, of which $2.6 billion is firm and
the rest are options to extend. The backlog has reduced
substantially over the past few years. It is 14% less than $6.3
billion ($2.6 billion firm) on Aug. 1, 2018. Positively, the firm
backlog on Aug. 1, 2019, remained unchanged compared to the
previous year.

At the same time, KCAD will need to deal with increasing liquidity
pressure and very high absolute debt, with maturities of $375
million in 2021, $750 million in 2022, and $795 million in 2023. In
S&P's view, in the current market conditions, KCAD may find it
challenging to tap the capital market and refinance its maturing
debt. S&P sees a potential breach of covenants by the end of 2019
unless the shareholders provide support.

The negative outlook reflects the increased risk of KCAD launching
a distressed debt exchange offer in the next 12 months, as it is
reviewing its capital structure.

S&P said, "As part of our base case, we continue to assume that
KCAD will address the tight headroom under its financial covenants
with shareholder support and other internal initiatives.

"Under our base-case scenario, we foresee EBITDA of about $300
million in 2019, translating into adjusted debt to EBITDA of about
6.5x, and negative free operating cash flow of $80 million-$100
million. During 2020, we forecast that KCAD's credit metrics and
cash flows will show some improvements, but the company's
already-sizable debt will increase further in absolute terms.

"We would lower the ratings on KCAD if the company announced an
offer to change its capital structure in such a way that its
debtholders would receive a materially lower cash value compared to
the original promise.

"The risk of a downgrade would increase further if the pressure on
KCAD's liquidity became more acute, and we changed our assessment
of the likelihood of shareholder support.

"At this stage, we see a stabilization of the outlook as being
remote in the coming 6-12 months. Such a rating action is subject
to the conclusion of the ongoing capital structure review, as well
as to KCAD addressing the liquidity situation."


SSG UK: Enters Into Administration Due to Financial Issues
----------------------------------------------------------
Business Sale reports that providing services in various locations
across the UK, but headquartered in Rainham, Essex, the SSG UK
Specialist Ambulance Service Limited was forced to appoint
administrators to explore options for the company during its
insolvency period.

SSG UK is known to provide transportation services for the NHS in
both emergency and non-emergency situations, Business Sale
discloses.  However, only up to 15% of all trusts' activity in
response to 999 alerts is carried out by private companies; it is
unknown what percentage of that figure is carried out by SSG UK,
Business Sale says.

SSG boasted a GBP6.8 million turnover in its 2017 annual accounts,
but also showed a net loss of roughly GBP250,000, Business Sale
relays.  The company's liabilities exceeded its assets by
GBP68,000, Business Sale states.

According to Business Sale, Chief executive of the Independent
Ambulance Association, Alan Howson, noted that SSG's financial
issues may perhaps be a result of the high costs involved in
achieving regulatory compliance.  He also said that demand for
private companies had fallen due to new NHS ambulance response
targets set in 2017, Business Sale notes.


TOMORROW'S PEOPLE: Creditors to Get 38p for Every Pound Owed
------------------------------------------------------------
Liam Kay at Third Sector reports that administrators have estimated
creditors of the defunct employment charity Tomorrow's People will
receive 38p for every pound they are owed.

The charity collapsed last year after a significant loss in
funding, Third Sector recounts.

The final report from the charity's administrators, filed with
Companies House, says the charity has closed, with the total amount
claimed by creditors expected to exceed GBP1.5 million, Third
Sector relates.

The charity entered into a company voluntary arrangement, which
took place after a vote among the creditors last month, Third
Sector recounts.

The CVA will allow the charity's remaining funds to be distributed
to creditors in a more efficient manner than going through
liquidation, the administrator's report suggests, Third Sector
notes.

The report says that there are 181 claims from creditors totalling
more than GBP1.3 million, which the administrators expect to rise
further to more than GBP1.5 million, Third Sector discloses.

The report says a further 113 creditors have claims totalling
almost GBP149,000, according to Third Sector.

The charity had 135 staff at the time of its demise, Third Sector
states.



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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-
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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