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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

          Tuesday, November 19, 2019, Vol. 20, No. 231

                           Headlines



G E R M A N Y

PLATIN 1425: S&P Alters Outlook to Negative & Affirms 'B' LT Rating


I R E L A N D

CONTEGO CLO VII: Fitch Assigns B-sf Rating to Class F Debt


K A Z A K H S T A N

ATF BANK: Moody's Ups Deposit Ratings to B2, Outlook Now Stable
KAZAGROFINANCE: Fitch Rates Sr. Unsec. Bond Issue BB+(EXP)


L U X E M B O U R G

TOPAZ ENERGY: Moody's Withdraws B3 Rating on $375MM Notes Repayment


N E T H E R L A N D S

JACOBS DOUWE: Moody's Upgrades CFR to Ba1, Outlook Stable


N O R W A Y

PGS ASA: Moody's Reviews B3 CFR for Downgrade on Refinancing Risk


R U S S I A

CB CREDITINVEST: Put on Provisional Administration


S P A I N

MIRAVET SARL 2019-1: Fitch Rates EUR6.5MM Cl. E Notes B-(EXP)


U K R A I N E

KYIV CITY: S&P Raises LT ICR to 'B' On Expected Debt Reduction


U N I T E D   K I N G D O M

CHILANGO: Auditor Refuses to Sign Off Accounts
CLINTONS PLC: Set to Close Stores, Offers Sweeteners to Landlords
CONVATEC GROUP: Moody's Assigns Ba3 CFR, Outlook Stable
EDDIE STOBART: Former Boss Puts Forward GBP75MM Rescue Deal
INTERSERVE PLC: Abolishes Role of Chief Executive

ITHACA ENERGY: Fitch Assigns B+ LT IDR, Outlook Stable
KIER GROUP: Faces Investor Pay Revolt Over Chief Exec's Bonus
LUDGATE FUNDING 2008-W1: Fitch Upgrades Class E Debt to Bsf
TATA STEEL UK: S&P Alters Outlook to Stable & Affirms 'B+' LT ICR

                           - - - - -


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G E R M A N Y
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PLATIN 1425: S&P Alters Outlook to Negative & Affirms 'B' LT Rating
-------------------------------------------------------------------
S&P Global Ratings revised its outlook on Platin 1425 GmbH (Platin)
to negative from stable and affirmed its 'B' long-term ratings on
the company and its senior secured debt.

Operating performance and credit metrics are unlikely to meet S&P's
previous base case for 2019.

S&P said, "We expect that Platin, a holding company of German
measuring technology firm, Schenck Process, will underperform our
previous base case in 2019. This is because it faces headwinds in
some of its end markets, namely in its Food, Chemicals & Plastics
segment, and in the EMEA region, reporting about 5% and 10% of
revenue declines in the first nine months. Profitability is also
lagging behind our expectations due to price mix effects, higher
functional costs, and restructuring charges. We now expect that
Platin's debt to EBITDA will stand at 6.5x at the end of 2019
compared with our previous expectation of 6.0x. This exceeds our
'B' rating threshold for the group."

A solid aftermarket order intake, supporting operating performance
and gradual credit metric improvement in 2020.

S&P said, "For 2020, we expect revenue to grow by about 2% and
EBITDA margins to be stable, supported by the stable order intake
for aftermarket sales and a decent order backlog. Given uncertain
economic conditions and no expected increase in commodity prices,
we anticipate order intake for new equipment sales will remain
soft, the market will remain competitive, and equipment pricing
will remain under pressure. At the same time, unfolding benefits
from reorganization measures, synergies from the acquisition of
Raymond Bartlett Snow (RBS) and Process Components Ltd (PCL), and
product mix effects are likely to compensate largely for the price
pressure, leaving the EBITDA margin in line with 2019, and higher
EBITDA translating into debt to EBITDA approaching 6.0x by the end
of 2020."

Renewed restructuring charges and M&A appetite might jeopardize a
gradual improvement in credit metrics.

The company has booked higher restructuring charges compared with
last year and our base case, in order to streamline its business
processes and reduce its cost base. Cost-efficiency initiatives
included a headcount reduction, as well as closing production
facilities. The main focus of restructuring is Germany, the U.S.
(where it closed a production facility), and Brazil. As the
organizational change and integration of RBS into the group is
still not finalized, S&P expects additional restructuring charges
on top of the EUR5.5 million reported so far this year.

S&P said, "For 2020, we expect no increase in restructuring charges
compared with 2019. However, if management decides to expand its
restructuring measures by reorganizing its global production
footprint, resulting in increasing charges and ultimately
depressing EBITDA, the reduction of leverage toward 6.0x by 2020
would be at risk.

"We expect that the group will continue to seek potential
acquisitions to strengthen its aftermarket business, and continue
to focus on stable market segments, which should continue to add
stability to earnings and cash flow. For now, we expect smaller
bolt-on acquisitions in our base case, paid from the group's cash
on balance sheet. In case of a larger acquisition, primarily
financed by additional debt, the reduction of leverage toward 6.0x
by 2020 would be at risk as well."

Expected positive free operating cash flow (FOCF) for the next 12
to 18 months.

S&P said, "Although we forecast higher leverage for 2019 and 2020
than previously due to lower EBITDA, we expect the company will be
able to constantly generate FOCF over the next 12-18 months, and
also post FFO cash interest coverage of at least 2.5x. These are
also key elements for the current rating.

"The negative outlook indicates that we anticipate that Platin's
operating performance and credit metrics will prove weaker than we
previously expected in 2019 and 2020. As unfavorable end markets
and higher restructuring costs are lowering the company's EBITDA
generation and ultimately depressing key credit metrics. We now
expect that the group will post debt to EBITDA of about 6.5x in
2019, gradually improving toward 6.0x in 2020, while we expect FFO
cash interest coverage of at least 2.5x, as well as positive FOCF.

"We would likely lower the rating if we see no further progress in
gradual deleveraging toward 6.0x and FFO cash interest coverage
rising to at least 2.5x. Such a development could arise from
deterioration of the group's operational and financial performance,
leading to lower margins, higher volatility of earnings, and
continued high restructuring charges. We could also lower the
rating if Platin fails to generate positive FOCF on a sustainable
basis or if the group conducts a large debt-funded acquisition.

"We could revise the outlook back to stable if the company's
operating performance regains momentum, leading to a significant
improvement of S&P Global Ratings-adjusted EBITDA to more than
EUR100 million, with no material change in debt. We would expect
this to translate into credit metrics in line with the current
rating, namely FFO cash interest coverage of more than 2.5x, debt
to EBITDA of less than 6.0x and positive FOCF."



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I R E L A N D
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CONTEGO CLO VII: Fitch Assigns B-sf Rating to Class F Debt
----------------------------------------------------------
Fitch Ratings has assigned Contego CLO VII DAC final ratings.

RATING ACTIONS

Contego CLO VII DAC

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

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

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

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

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

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

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

Sub. notes; LT NRsf New Rating;   previously at NR(EXP)sf

TRANSACTION SUMMARY

Contego CLO VII DAC is a securitisation of mainly senior secured
loans (at least 90%) with a component of senior unsecured,
mezzanine, and second-lien loans. Note proceeds are being used to
fund a portfolio with a target par of EUR450 million. The portfolio
is actively managed by Five Arrows Managers LLP. The CLO has a
4.5-year reinvestment period and an 8.5-year weighted average
life.

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors at the 'B'
category. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 32.6.

High Recovery Expectations

At least 90% of the portfolio will comprise 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 63.6%.

Diversified Asset Portfolio

The transaction includes several Fitch test matrices corresponding
to two top-10 obligors concentration limits (at 15% and 26.5%). The
manager can interpolate within and between two matrices. The
transaction also includes various concentration limits, including a
maximum exposure to the three- largest (Fitch-defined) industries
in the portfolio at 40%. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction has a 4.6-year reinvestment period and includes
reinvestment criteria similar to those of other European
transactions. Fitch analysis is based on a stressed-case portfolio
with the aim of testing the robustness of the transaction structure
against its covenants and portfolio guidelines.

Cash Flow 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.

Up to 7.5% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 5.6% of the target par.
Fitch modelled both 0% and 7.5% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch associated
with each scenario.

RATING SENSITIVITIES

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



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K A Z A K H S T A N
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ATF BANK: Moody's Ups Deposit Ratings to B2, Outlook Now Stable
---------------------------------------------------------------
Moody's Investors Service upgraded ATF Bank's long-term local and
foreign-currency deposit ratings to B2 from B3, its Baseline Credit
Assessment and Adjusted BCA to caa1 from caa2, its long-term
Counterparty Risk Assessment to B1(cr) from B2(cr) and its
long-term local and foreign-currency Counterparty Risk Ratings to
B1 from B2. The bank's junior subordinated foreign-currency debt
rating was upgraded to Caa3 (hyb) from Ca (hyb), while its Not
Prime short-term deposit ratings and CRRs and Not Prime(cr)
short-term CR Assessment were affirmed. The outlook on the bank's
long-term local and foreign-currency deposit ratings, as well as
its overall issuer outlook, was changed to stable from positive.

The upgrade of ATF Bank's ratings is driven by the recent
improvements in the bank's asset quality, capital adequacy and
profitability, translating into an overall stronger loss absorption
capacity.

RATINGS RATIONALE

The upgrade of ATF Bank's ratings is driven by the recent
improvements in the bank's asset quality, capital adequacy and
profitability, translating into an overall stronger loss absorption
capacity. According to ATF Bank's management, several large loans,
together accounting for approximately 20% of the bank's gross
problem loans reported as of year-end 2018, were redeemed in Q3
2019. At the same time, the bank's net interest margin,
pre-provision income and earnings increased in the first half of
2019, so that its profit capitalization brought the ratio of
tangible common equity to risk-weighted assets to 9.6% as of June
30, 2019, up from 8.0% as of year-end 2018.

Despite the recent improvements, ATF Bank's caa1 BCA reflects its
still weak solvency position, with gross problem loans currently
close to 100% of the sum of loan loss reserves and shareholders'
equity, on Moody's estimates. In addition, the quality of the
bank's earnings remains weak, with the gap between interest accrued
and interest received in cash amounting to a substantial 21% in the
first half of 2019. Furthermore, the bank's funding profile has
recently been challenged by significant volatility of its customer
deposits (a 13% outflow in the first half of 2019, partially
reversed in the third quarter).

Moody's does not have any particular governance concern for ATF
Bank, and does not apply any corporate behaviour adjustment to the
bank.

HIGH GOVERNMENT SUPPORT

ATF Bank's B2 long-term deposit ratings benefit from: (1) two
notches of uplift due to a high probability of state support, which
reflects the bank's significant market share (5.2% in total banking
assets and 5.0% in total customer deposits as of October 1, 2019);
and (2) the government's willingness to support the bank, as
demonstrated in 2017 by the National Bank of Kazakhstan including
ATF Bank in its capital recovery programme.

STABLE OUTLOOK

The change of outlook on ATF Bank's ratings to stable from positive
reflects Moody's expectations of no significant further
strengthening of bank's overall solvency profile in next 12-18
months, based on the current trends and in the absence of external
support.

WHAT COULD MOVE THE RATINGS UP/DOWN

The ratings of ATF Bank could be upgraded, if in the next 12-18
months the bank demonstrates sustainable improvements in its asset
quality, core profitability and the quality of earnings, as well as
further strengthens its capital position.

The ratings of ATF Bank could be downgraded, if the bank's asset
quality deteriorates further and its capital buffer declines (in
particular, asset quality deficiencies could be revealed by the
Asset Quality Review, currently performed by the National Bank of
Kazakhstan). ATF Bank's failure to achieve its targeted
profitability results and improve the quality of its earnings, or a
significant deposit outflow resulting in a liquidity shortage,
could also exert negative pressure on the bank's ratings.

LIST OF AFFECTED RATINGS

Issuer: ATF Bank

Upgrades:

Adjusted Baseline Credit Assessment, Upgraded to caa1 from caa2

Baseline Credit Assessment, Upgraded to caa1 from caa2

Long-term Counterparty Risk Assessment, Upgraded to B1(cr) from
B2(cr)

Long-term Counterparty Risk Ratings, Upgraded to B1 from B2

Junior Subordinated Regular Bond/Debenture, Upgraded to Caa3 (hyb)
from Ca (hyb)

Long-term Bank Deposit Ratings, Upgraded to B2 from B3, Outlook
Changed to Stable from Positive

Affirmations:

Short-term Counterparty Risk Assessment, Affirmed NP(cr)

Short-term Counterparty Risk Ratings, Affirmed NP

Short-term Deposit Ratings, Affirmed NP

Outlook Action:

Outlook Changed to Stable from Positive

PRINCIPAL METHODOLOGY

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

KAZAGROFINANCE: Fitch Rates Sr. Unsec. Bond Issue BB+(EXP)
-----------------------------------------------------------
Fitch Ratings assigned Kazakhstan-based KazAgroFinance's planned
senior unsecured bond issue an expected Long-Term rating of
'BB+(EXP)' and National Long-Term Rating of 'AA(kaz)(EXP)'.
Assigning final ratings to the issue is contingent on the receipt
by Fitch of final documents conforming to information already
provided to us by KAF.

The tenge-denominated bonds are expected to be issued under the
company's second bond programme for KZT20 billion and will have a
tenor of five years.

KEY RATING DRIVERS

The planned issue's expected ratings are in line with KAF's other
outstanding local senior unsecured bond ratings issued under the
same programme and at the same level as its 'BB+' Long-Term
Local-Currency Issuer Default Rating (IDR) and 'AA(kaz)' National
Long-Term Rating. This assumes average recovery expectations in
case of default. KAF's ratings reflect Fitch's view of the moderate
probability of state support to the company given its policy role
in provision of state-subsidised financial leasing and project
financing to the agricultural sector.

RATING SENSITIVITIES

The issue ratings would likely mirror KAF's Long-Term
Local-Currency IDR and National Long-Term Rating, which are
sensitive to the ability and propensity of Kazakhstan (BBB/Stable)
to support KAF.



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

TOPAZ ENERGY: Moody's Withdraws B3 Rating on $375MM Notes Repayment
-------------------------------------------------------------------
Moody's Investors Service withdrawn the B2 Corporate Family Rating
and the B2-PD Probability of Default Rating of Topaz Energy and
Marine Limited. Prior to withdrawing the ratings, the rating
outlook was stable.

On October 10, 2019 Moody's withdrew the B3 instrument rating on
Topaz Marine S.A.'s $375 million senior unsecured notes due to
repayment.

RATINGS RATIONALE

The withdrawal follows the repayment of Topaz Marine's $375 million
senior unsecured notes previously rated by Moody's. Topaz was
acquired by DP World PLC (Baa1 stable, DP World) on September 19,
2019. The next day Topaz announced that it would exercise a call
feature under the indenture for its $375 million bond. In line with
the provisions of the call feature Topaz redeemed the bond at
104.5625% of the principal amount plus accrued interest.

Moody's has decided to withdraw the ratings for its own business
reasons.



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

JACOBS DOUWE: Moody's Upgrades CFR to Ba1, Outlook Stable
---------------------------------------------------------
Moody's Investors Service, upgraded JACOBS DOUWE EGBERTS Holdings
B.V.'s corporate family rating to Ba1 from Ba2. JDE is an
intermediate parent entity of the JDE Group, a global coffee
manufacturer and retailer based in the Netherlands. Concurrently,
Moody's has upgraded to Ba2-PD from Ba3-PD JDE's probability of
default rating and to Ba1 from Ba2 the senior secured rating on the
EUR5.6 billion bank credit facilities outstanding as of December
2018 (EUR5.3 billion outstanding as of September 2019) and on the
EUR500 million undrawn Revolving Credit Facility borrowed by Jacobs
Douwe Egberts International B.V. The outlook on both entities has
changed to stable from positive.

"The rating upgrade follows JDE's strong operating performance over
the last 18 months and reflects our expectation that the company
will maintain a prudent financial policy, prioritizing debt
repayment to shareholder remuneration or debt-financed
acquisitions, which will lead to further strengthening of its
credit metrics over the next year," says Paolo Leschiutta, a
Moody's Senior Vice President and lead analyst for JDE. "Currently
favourable market dynamics will support the company's organic
growth and further margin improvements, allowing for ongoing strong
free cash flow generation," added Mr Leschiutta.

RATINGS RATIONALE

Moody's expects JDE's operating results to continue to benefit from
strong demand for coffee, the company's increasing presence in
emerging markets and the ongoing premiumisation in the coffee
industry with customers trading up to more expensive products like
single-serve capsules. These factors will support further operating
margin improvements and ongoing strong free cash flow generation.
The Ba1 rating assumes further strengthening in the company's
credit metrics with the company maintaining a Moody's adjusted debt
to EBITDA below 4.0x on a sustained basis.

In the nine months period to September 2019, the company's top line
grew by 3% on a reported basis, mainly thanks to the contribution
of acquisitions completed in 2018. Organic growth in 2019 was
broadly flat mainly due to softening in coffee bean prices that the
company had to pass through to customers and to softer business
performance in Asia. During the same period, JDE's adjusted EBIT,
as reported by the company (excluding some restructuring one offs),
grew by 8%. Profit growth was above Moody's expectations and was
supported by a more favourable product mix, better cost management
and the full benefit of cost synergies from past M&A and by the
reduction in the company's integration and restructuring costs.

Going forward, excluding volatility in coffee bean prices, the
rating agency expects organic top-line growth to continue at low to
mid-single digit rate and profit to grow slightly ahead of
revenues. Operating margin improvements will be slower than in the
recent past, as most of the cost synergies have been already
achieved and inorganic profit improvements will be more limited.
Restructuring costs in 2019 will still be sizeable (EUR39 million
up to September 2019), but at a level well below 2018 (EUR107
million), and a more normalized level starting from 2020.

During 2018, the company generated free cash flow in excess of
EUR600 million, as defined by Moody's, i.e. after interests and
dividend payments. Moody's expects JDE's cash generation to remain
strong over the next 12 to 18 months and that JDE will complement
its good organic growth with bolt-on acquisitions, without
compromising its deleveraging pattern. The rating agency also
understands that the company will prioritize debt reduction ahead
of increasing shareholder's remuneration and large acquisitions,
which will support further improvements in credit metrics. As of
September 2019, JDE's financial leverage, measured as Moody's
adjusted gross debt to EBITDA, was 3.8x and its Moody's adjusted
retained cash flow to net debt was 17%. Although JDE's key
financial ratios have improved significantly over the last two
years, the rating assumes further strengthening in key ratios over
the next year for the rating to be more solidly positioned.

JDE's ratings continue to be supported by its strong market
position and global scale, its track record of achieving operating
performance that exceeds Moody's expectations and its good
operating margins, as well as Moody's expectation that the company
will continue to generate robust free cash flow generation. JDE's
rating is also supported by its good liquidity, supported by EUR500
million of unrestricted cash on balance sheet as of September 30,
2019 and an undrawn EUR500 million revolving credit facility due in
2023. Although debt maturity are modest over the next three years,
JDE's main term loan A amounting to EUR4.3 billion outstanding is
due in November 2023.

Despite the strong growth momentum in the coffee industry, with
significant premiumisation potential supporting revenue and
profitability growth, the rating is constrained by JDE's high
product category concentration in coffee, and still relatively high
financial leverage for the rating category. In addition, Moody's
cautions that large acquisitions or a change in shareholders'
remuneration policy which might slow down the expected improvements
in credit metrics could cause a revision of the ratings.

Moody's would like to draw attention to certain environmental,
social and governance (ESG) considerations with respect to JDE.
Although environmental and social risks are normally modest for
consumer products companies, Moody's believes JDE to be exposed to
environmental risks, given the concentration of coffee beans
procurement in certain parts of the world, mainly across emerging
markets. Sustainability of raw material sources is a cause of
concern and focus from a number of consumers but are not expected
to influence the rating at this stage. In terms of governance,
Moody's notes that the company is tightly controlled by JAB Holding
Company S.a r.l. (JAB, Baa1 negative) which, in Moody's view has a
high tolerance for risk and governance is comparatively less
transparent. Moody's notes nonetheless the company has been quite
successful in recent years at improving its free cash flow
generation and reducing its financial leverage. At the same time
the rating agency notes JDE's relatively high trade payable days
outstanding and warns that any reduction of the current level might
result in permanent increase in working capital.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation of steady growth in
the company's operating performance, resulting in solid free cash
flow generation which the rating agency expects will be prioritised
for gross debt reduction. The stable outlook does not assume any
material debt-financed acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive rating pressure could develop if Moody's adjusted
debt/EBITDA reduces below 3.0x and its adjusted retained cash
flow/net debt increases well above 20%, both on a sustainable
basis. An upgrade to investment grade would also be subject to the
company maintaining a prudent financial policy, including
conservative leverage targets and solid liquidity management.

Conversely, negative pressure on the ratings could materialise if
Moody's adjusted debt/EBITDA increases above 3.75x or if Moody's
adjusted retained cash flow/net debt declines below the high-teens
in percentage terms. Deterioration in the company's liquidity
profile or a more aggressive shareholders return policy could also
result in negative pressure on the ratings.

LIST OF AFFECTED RATINGS

Issuer: JACOBS DOUWE EGBERTS Holdings B.V.

Upgrades:

LT Corporate Family Rating, Upgraded to Ba1 from Ba2

Probability of Default Rating, Upgraded to Ba2-PD from Ba3-PD

Outlook Actions:

Outlook, Changed To Stable From Positive

Issuer: Jacobs Douwe Egberts International B.V.

Upgrades:

Senior Secured Bank Credit Facility, Upgraded to Ba1 from Ba2

Outlook Actions:

Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in the Netherlands, JACOBS DOUWE EGBERTS Holdings
B.V. is a leading manufacturer and distributor of coffee and tea
products to the retail and out-of-home markets in more than 80
countries across Europe, Asia, Latin America and Australia. JDE
owns more than 50 brands, including some key names like Douwe
Egberts, Jacobs, Tassimo, Moccona, Senseo, L'OR, Super Kenco, Pilao
and Gevalia. The company is private and was formed in 2015 as a
joint venture between Mondelez International, Inc. (Baa1 stable)
and Acorn Holdings B.V. AHBV is owned by an investor group led by
JAB Holding Company S.a r.l. (Baa1 negative). In 2018, JDE
generated EUR5.9 billion of revenue and EUR1.3 billion of adjusted
EBITDA. During the nine months to September 2019, revenues and
adjusted EBITDA stood at EUR4.37 billion and EUR1.03 billion
respectively (all figures as reported by the company).



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N O R W A Y
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PGS ASA: Moody's Reviews B3 CFR for Downgrade on Refinancing Risk
-----------------------------------------------------------------
Moody's Investors Service placed on review for downgrade the B3
Corporate Family Rating and B3-PD probability of default rating of
PGS ASA, as well as the B3 ratings assigned to its $400 million
term loan B due 2021 and $350 million revolving credit facility
expiring in 2020. The rating outlook was changed to rating under
review from positive.

RATINGS RATIONALE

The review was prompted by the heightened refinancing risk facing
PGS in the near term, as a result of the significant share of its
debt falling due within the next 10 to 16 months. The group's RCF,
which was $170 million drawn at the end of September 2019, expires
in September 2020, while the $212 million senior notes and $400
million term loan B ($378 million of which outstanding at the end
of September 2019) mature in December 2020 and March 2021
respectively.

While Moody's expects PGS to remain free cash flow (FCF) positive
after capex over the next 12-18 months amid improving operating
conditions in the seismic market, the group will need to access the
capital markets in order to refinance its senior notes and term
loan B, and secure the extension of its RCF to which the banks have
already committed provided it successfully execute the refinancing
of its long-term debt maturities.

When announcing its Q3 2019 results in mid-October, PGS reiterated
its intention to address these maturities before the end of 2019 or
in early 2020 at the latest. However, Moody's notes that conditions
in the debt capital markets continue to be challenging for many
issuers positioned at the lower end of the speculative rating
scale. PGS had to abort a refinancing exercise in June 2019 amid
increased market volatility and a negative shift in investor
sentiment towards the oilfield service sector.

Moody's will closely monitor the progress made by PGS with
executing its refinancing plan over the next couple of months.
Failure to successfully complete the exercise ahead of the
publication of its Q4 and full year 2019 results scheduled on
January 30, 2020 would likely lead to some material downward
pressure on PGS's ratings.

However, Moody's notes that PGS benefited from an improving
environment in the contract market and reported higher vessel
utilisation rate during 2019, which helped compensate for some
volatility in multiclient revenues. The group's order book more
than doubled in the first nine months of 2019 to reach $336 million
at the end of September and good utilisation for all eight active
vessels should be achieved during the coming winter season.

Moody's expects that PGS will confirm its return to positive FCF
generation in 2019. Combined with the cash proceeds received from
the sale of Ramform Sterling to JOGMEC, this will enable the group
to reduce leverage with adjusted total debt to EBITDA (excluding
multiclient capital spending) projected to be in a range of
4.0-4.5x at year-end 2019.

STRUCTURAL CONSIDERATIONS

At the end of September 2019, PGS' debt included a senior secured
credit facility that comprised a $400million term loan B due in
March 2021 and a $350 million revolving credit facility expiring in
September 2020. In addition, the group had $212 million of senior
notes due in December 2020 and $334 million outstanding under
export credit financing facilities due in 2025 and 2027 with
semiannual installment payments.

The senior secured bank facilities are rated B3 in line with the
corporate family rating. This reflects the fact that they
effectively rank pari passu with the senior notes due 2020, secured
only by pledges of shares of material subsidiaries. The secured
bank facilities and the 2020 notes are both guaranteed on an
unsecured basis by the same material operating subsidiaries.

WHAT COULD TAKE THE RATING UP

A rating upgrade is highly dependent on a lasting market recovery
leading to an improved financial profile reflected in an adjusted
EBIT margin above 5% and adjusted total debt to EBITDA (excluding
multiclient capital spending) falling below 4.5x on a sustained
basis. An upgrade would also be predicated on consistent positive
FCF and the maintenance of healthy liquidity, including no
near-term debt maturities.

WHAT COULD TAKE THE RATING DOWN

The B3 rating could be downgraded should the PGS fail to complete
the refinancing of its 2020-2021 maturities in a timely manner. The
rating could also come under pressure should prolonged market
weakness result in a negative EBIT margin and adjusted total debt
to EBITDA (excluding multiclient capital spending) rising above
6.0x for an extended period.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Oilfield
Services Industry Rating Methodology published in May 2017.

COMPANY PROFILE

PGS ASA is one of the leading offshore seismic acquisition
companies with worldwide operations. PGS headquarters are located
at Oslo, Norway. The company is a technologically leading oilfield
services company specializing in reservoir and geophysical
services, including seismic data acquisition, processing and
interpretation, and field evaluation. PGS maintains an extensive
multi-client seismic data library. For the year ended December 31,
2018, PGS reported Segment revenues of $835 million. PGS is a
public limited company incorporated in the Kingdom of Norway and is
listed on the Oslo Stock Exchange.



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

CB CREDITINVEST: Put on Provisional Administration
--------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-2609, dated
November 15, 2019, revoked the banking license of Limited Liability
Company Commercial Bank Creditinvest (CB Creditinvest Ltd) (Reg.
No. 1197; Kizilyurt, Republic of Daghestan; hereinafter, Bank
Creditinvest).  The credit institution ranked 386th by assets in
the Russian banking system.

The Bank of Russia took this decision in accordance with Clauses 6
and 6.1, Part 1, Article 20 of the Federal Law "On Banks and
Banking Activities", based on the facts that Bank Creditinvest:

   -- Committed violations of the anti-money laundering and
counter-terrorist financing laws and Bank of Russia regulations.
The credit institution repeatedly submitted incomplete and
incorrect information to the authorised body, including on
operations subject to mandatory control;

   -- Conducted dubious cross-border transactions;

   -- Violated federal banking laws and Bank of Russia regulations,
due to which the regulator repeatedly applied supervisory measures
against it over the last 12 months.

The inspection of Bank Creditinvest's operations revealed multiple
violations of Bank of Russia regulations regarding the procedure
for performing cash transactions and ensuring information
security.

The Bank of Russia appointed a provisional administration to Bank
Creditinvest for the period until the appointment of a receiver or
a liquidator.  In accordance with federal laws, the powers of the
credit institution's executive bodies were suspended.

Information for depositors: Bank Creditinvest is a participant in
the deposit insurance system; therefore depositors will be
compensated for their deposits in the amount of 100% of the balance
of funds but no more than a total of RUR1.4 million per depositor
(including interest accrued).

Deposits are to be repaid by the State Corporation Deposit
Insurance Agency (hereinafter, the Agency).  Depositors may obtain
detailed information regarding the repayment procedure 24/7 at the
Agency's hotline (8 800 200-08-05) and on its website
(https://www.asv.org.ru/) in the Deposit Insurance / Insurance
Events section.




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

MIRAVET SARL 2019-1: Fitch Rates EUR6.5MM Cl. E Notes B-(EXP)
-------------------------------------------------------------
Fitch Ratings assigned Miravet S.A.R.L., Compartment 2019-1
expected ratings as follows:

EUR348.4 million class A notes: 'AAA(EXP)sf'; Outlook Stable

EUR58.9 million class B notes: 'A(EXP)sf'; Outlook Stable

EUR21 million class C notes: 'BBB-(EXP)sf'; Outlook Stable

EUR7.2 million class D notes: 'BB-(EXP)sf'; Outlook Stable

EUR6.5 million class E notes: 'B-(EXP)sf'; Outlook Stable

EUR0.1 million class X notes: 'NR(EXP)sf'

EUR75.9 million class Z notes: 'NR(EXP)sf'

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

This is a cash flow securitisation of a static EUR505.7 million
portfolio of Spanish residential mortgages originated by Catalunya
Banc, Caixa Catalunya, Caixa Tarragona and Caixa Manresa, entities
that are fully owned and were integrated into Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA, A-/Negative/F2) in 2016. The portfolio to
be securitised includes mortgages that were previously securitised
under the SRF RMBS transactions, recently paid in full, and other
loans owned by investment funds managed by CarVal Investors, L.P.

KEY RATING DRIVERS

Large Share of Re-performing Loans (RPL)

Around 76.7% of the portfolio was restructured by the originators
to support borrowers facing financial hardship, which included
strategies like principal grace periods and parallel financing,
even in cases where the borrower had not been compliant with
performance conditions. Fitch views these strategies as inadequate,
although they are mitigated by the portfolio's average clean
payment history of 7.8 years and also by the significant portfolio
seasoning of 11.8 years.

Default Rate on RPL

The default rate of each RPL is derived from the assessment of the
payment track record since the most recent date they were last in
arrears and the restructuring end-date. The weighted average (WA)
lifetime foreclosure frequency (WAFF) on the portfolio under a 'B'
rating stress scenario is 19.7%.

Servicer Migration Risk Mitigated

The portfolio will, at closing, be serviced by Anticipa Real
Estate, S.L.U. (Anticipa), with an expected migration to long-term
servicer Pepper Asset Services, S.L.U. in 2020 (Pepper Servicing
Spain, PSS). Fitch views the risks of a servicer migration as being
adequately mitigated by Pepper European Servicing's proven
portfolio on-boarding expertise both internationally and in Spain,
a detailed migration plan that is not conditioned by any hard
deadline for migration, and BBVA's required approval as master
servicer.

Comparable to SRF Transactions

This transaction is highly comparable to previous SRF
securitisations. Around 68% of the portfolio balance is linked to
mortgages previously securitised within the SRF transactions in
2017.

Regional Concentration Risk

Around 72.5% of the portfolio is exposed to Catalonia. Fitch's
central expectation is that Catalonia will remain part of Spain and
that political uncertainty does not significantly compromise
economic growth prospects. Fitch has applied a higher set of rating
multiples to the base FF assumption to the share of the portfolio
located in Catalonia that exceeds 2.5x the population of the region
relative to the national total (ie. 29.9% by property count).

VARIATION FROM CRITERIA

Treatment of Further Drawdowns

In Fitch's credit analysis of the portfolio, potential further
drawdowns of the underlying mortgages were not considered when
estimating portfolio loan-to-value (LTV) trends. This is
substantiated by the zero instances registered to date since
Anticipa serviced the portfolio in April 2015, driven by stringent
conditions that discourage debtors from requesting further
advances.

This variation to Fitch's European RMBS Rating Criteria, according
to which potential further advances should be considered during
asset analysis impacting WAFF and recovery outputs, has a
model-implied rating impact of one notch for the class A, B, C and
E notes and two notches for the class D notes.

RATING SENSITIVITIES

Material increases in FF and loss severity on defaults could
produce losses larger than Fitch's base case expectations, which in
turn may result in negative rating action on the notes.

Rating sensitivities to increased default and decreased recovery
assumptions by 15% and 30% are summarised:

Class A notes: 'AA-sf' and 'B+sf'

Class B notes: 'BBsf' and 'CCCsf'

Class C notes: 'CCCsf' and 'NRsf'

Class D notes: 'CCCsf' and 'NRsf'

Class E notes: 'NRsf' and 'NRsf'

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.



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

KYIV CITY: S&P Raises LT ICR to 'B' On Expected Debt Reduction
--------------------------------------------------------------
On Nov. 15, 2019, S&P Global Ratings raised its long-term issuer
credit rating on the Ukrainian City of Kyiv to 'B' from 'B-'. The
outlook is stable.

Outlook

The stable outlook reflects S&P's expectations that Kyiv will
preserve its sound operating surpluses, supported by the solid
economic recovery. The outlook also factors in its assumption that
the city will borrow moderately in the medium term.

Downside scenario

S&P might lower the rating if it was to lower its sovereign ratings
on Ukraine. S&P might also consider a negative rating action if the
intergovernmental agreement on debt reduction is derailed.

Upside scenario

S&P could raise its rating on Kyiv if it observed an improvement in
its debt and liquidity practices or a strengthening of capital
markets and banking system in the country. An upgrade would also be
contingent on a similar rating action on Ukraine.

Rationale

The upgrade reflects our view that, by year-end 2020, Kyiv's direct
debt will be reduced by the remaining amount of its loan from the
Ministry of Finance. Kyiv has successfully completed similar
agreements with the central government over 2016-2019, allowing the
city to write off the major part of its intergovernmental debt.

S&P said, "Our rating on Kyiv is supported by solid budgetary
performance, fueled by a strong economic recovery in Ukraine, and
its moderate debt burden. At the same time, our assessment remains
constrained by the very volatile and centralized Ukrainian
institutional setting for local and regional governments (LRGs)."
Kyiv's weak payment culture, with a track record of defaults, also
continues to weigh on the rating.

A volatile framework, low wealth levels, and weak financial
management remain the main constraints on Kyiv's credit quality
The city operates in a very volatile institutional framework.
Kyiv's budgetary performance is significantly affected by the
central government's decisions regarding key taxes, transfers, and
expenditure responsibilities. Frequent changes in revenue sources
and spending mandates undermine reliable long-term planning at the
municipal level. Most taxes are regulated by the central government
and a high share of social expenditures continues to restrict its
spending flexibility. At the same time, the central government
increased its attention to the city's debt, by writing off its
intergovernmental liability and encouraging the city to use these
funds for capital investment.

Kyiv's debt and liquidity management has improved in the past few
years thanks to a reduction in debt stock and restructuring of the
remaining unsettled market liability. At the same time, the
unreliable medium-term financial planning, frequent deviations from
legislated budgets, and a track record of a weak payment culture
constrain our assessment.

Political instability could increase due to the potential dismissal
of the mayor, Vitali Klitschko, as the head of the city's state
administration, with the date of the next municipal election in
2020 still uncertain. Nevertheless, in S&P's view the financial
impact of this uncertainty will be limited and won't lead to
disruptions in the debt write-off, as the intergovernmental
agreements are fixed in the budget law and according decrees.

While Kyiv's GDP remains relatively low compared with peers, the
city's economy has been rebounding strongly since 2015. As the
capital city, Kyiv remains the Ukraine's most prosperous and
diversified region. The city contributes more than 20% of the
national GDP and benefits from a strong labor market, with the
lowest unemployment rate in Ukraine. Moreover, despite the overall
declining national trend, the city continues to attract migrants
from all over the country. S&P believes that the city's growth will
mirror the national economic recovery and expand at 3.1% on average
annually over 2019-2021. S&P expects its GDP per capita to reach
US$13,400 by 2022.

Sound budgetary performance will persist, and the debt burden will
remain low

S&P said, "We believe that Kyiv's operating budgetary performance
will remain solid over the coming three years, supported by the
economic recovery. Central government grants (mostly earmarked
public wage-related transfers), which contribute up to one-quarter
of operating revenues, will continue to support the city's
finances.

"The city remains committed to a number of large infrastructure
projects (such as the construction of bridges and metro lines). We
believe Kyiv will continue to fulfill its investment needs in our
forecast period. We also expect that the city will continue its
infrastructure development by providing guarantees to its
transportation and utility government-related entities (GREs) for
loans from the European Bank for Reconstruction and Development and
the European Investment Bank. The projects are planned for over a
20-year horizon and include upgrades to transportation facilities,
repairs of the city's heating supply, and bridge renovations.

"We expect the city will post moderate budget deficits after
capital accounts in 2019-2021, not exceeding 5% of revenues."

According to an agreement between the city and the central
government, if Kyiv invests in municipal transport infrastructure,
the government will write off an equal amount from the city's
intergovernmental obligations. The major part of Kyiv's obligations
have already been reduced ahead of schedule after it completed some
construction projects. S&P said, "We expect the city to have its
interbudgetary loan written off completely in 2020, following the
successful track record of previous agreements. We therefore
project the city will not need to resort to commercial borrowing to
refinance or repay these intergovernmental obligations by 2021."

S&P said, "We expect that Kyiv's direct debt will decrease after
the settlement is completed and that the stock will remain low
through 2022. Besides the intergovernmental liabilities, the city's
direct debt consists of a $115.1 million Eurobond placed in 2018,
reflecting the restructuring of the 2015 Eurobond. The liability is
due in 2021-2022. We believe that, should the need arise, Kyiv
could postpone some of its capital expenditure to generate the
required funds."

Given that the city's direct debt is denominated in U.S. dollars,
we note that Kyiv's debt burden is subject to exchange rate
volatility.

S&P said, "In addition to direct debt, our assessment of Kyiv's
total debt burden (tax-supported debt) includes liabilities of
municipal GREs, which require budget assistance from the city
budget. In particular we factor in all debt of GREs explicitly
guaranteed by Kyiv (Kyivpastrans, Kyivmetro, GVP Energy Saving
Company, Kyivavtodor, and Kyivenergo) and Kyivpastrans (not
guaranteed liability), as well as the commercial debt of the water
utility, given that repayments of most of these liabilities are
made directly from Kyiv's budget. We also include in the
tax-supported debt the liabilities that arise from the lawsuit
against Kyiv's subway company Kyivmetro, because the city might be
required to financially support the entity.

"We assume that the city's contingent liabilities are low and
include mostly accumulated payables at the city's utility and
transportation companies, as we include all municipal companies'
debt in the city's tax-supported debt. We also include in the
city's contingent liabilities the Ukrainian hryvnia (UAH) 3.7
billion of central government loans received before 2014 to finance
mandates set by the central government.

"Although the city's cash currently exceeds its debt service over
the next 12 months, we see the city's liquidity position as
vulnerable. We apply a 50% haircut to the city's cash reserves
because the city keeps them in the central treasury and we believe
that access to these reserves could be interrupted, given the
central government's track record with regard to default. Under our
current projections, the coverage ratio will decrease when the
city's debt liabilities are due in 2021 and 2022. We also believe
that the city's access to external funding is constrained, owing to
the weaknesses of the Ukrainian capital market and its banking
sector."

  Ratings List
  Upgraded  
                          To           From
  Kyiv (City of)

  Issuer Credit Rating   B/Stable/-- B-/Stable/--




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

CHILANGO: Auditor Refuses to Sign Off Accounts
----------------------------------------------
Tabby Kinder and Robert Smith at The Financial Times report that
Chilango's auditor has declined to sign off its accounts six months
after the fast-food chain raised GBP3.7 million by selling
controversial "burrito bonds" to hundreds of small investors.

Chilango has hired restructuring advisers RSM to conduct a full
review of its options, the FT discloses.  It is considering a range
of options including raising new capital or a sale as part of a
pre-pack administration, the FT relays, citing one person with
knowledge of the situation.  According to the FT, RSM said it had
been engaged to "assist on long-term planning, options and
strategy".

According to the FT, one person close to the matter said Chilango's
auditor, Grant Thornton, is "not willing" to sign off the accounts
of the Mexican food chain's funding entity--due to be filed six
weeks ago--because of a "risk related to going concern".

Mr. Partaker, chief executive, said the company was working with
its auditors to publish the accounts "as soon as possible", the FT
notes.

The restaurant group, which is headquartered in north London, has
12 sites in the UK.  It was founded in 2007 by Eric Partaker and
Dan Houghton.


CLINTONS PLC: Set to Close Stores, Offers Sweeteners to Landlords
-----------------------------------------------------------------
Laura Onita at The Telegraph reports that the greeting cards chain
Clintons has offered sweeteners to landlords as part of its
proposals to shut one in five shops and cut rents on most of the
others.

According to The Telegraph, the retailer, which employs 2,500
people, has earmarked 66 sites for closure and wants cheaper rents
on more than 200 of the remainder.

It is understood the Weiss family, which until recently controlled
sister business American Greetings in the US, has agreed to write
off a GBP60 million intercompany loan, The Telegraph states.

Clintons' owners are also putting aside GBP2 million to compensate
the landlords that will be affected the most by the closures, The
Telegraph discloses.  Shopping center owners Intu, Hammerson and
Landsec have 27 Clinton shops, The Telegraph states.




CONVATEC GROUP: Moody's Assigns Ba3 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a Ba3 corporate family rating
and Ba3-PD probability of default rating to ConvaTec Group plc
following the closing of the group's refinancing. ConvaTec Group
plc is the top entity in the new banking group. The outlook is
stable.

Concurrently, Moody's has withdrawn the Ba3 CFR, Ba3-PD PDR and
SGL-1 speculative grade liquidity rating of ConvaTec Healthcare D
S.a.r.l., which was the top guarantor for the previous capital
structure. The rating agency has also previously withdrawn the Ba3
instrument ratings on the $1.9 billion senior secured bank credit
facilities (comprising $1.7 billion term loans and a $200 million
revolving credit facility) which have been refinanced.

RATINGS RATIONALE

ConvaTec Group Plc's credit profile benefits from its good scale
and product diversification across multiple sub-segments within
care medical products. These include advanced wound care, ostomy
care, continence & critical care and infusion devices. The company
is also well diversified geographically, having global presence in
North America, Europe and, to a lesser extent, Asia. ConvaTec also
has leading market positions within several product categories
benefitting from low demand cyclicality and stable market growth in
the 3% to 5% range. Quantitatively, ConvaTec has generated solid
free cash flow (FCF) of around $200 million per annum on average in
the last couple of years and also has a very good liquidity
profile.

However, ConvaTec's credit profile is constrained by its moderately
high financial leverage, measured by Moody's adjusted gross
debt/EBITDA, which stood at 3.6x as of the end of June 2019. The
rating agency expects that it will be relatively high for the
rating category in the next 12-18 months, in the range of 3.5x to
4.0x and therefore does not anticipate any material deleveraging
until 2021. Costs associated with the group's far-reaching
transformation initiative are not treated as exceptional in Moody's
adjusted metrics and will contribute to a temporary spike in
leverage in 2019-2020. Related cash outflows, via operating cash
flow and capex, will also reduce the overall cash conversion of the
group but Moody's forecasts that ConvaTec will generate at least
$100 million of FCF per annum in 2019-2020.

The group's credit strengths are also partially offset by its
exposure to some social risks, including demographic trends. The
growth in chronic conditions increases demand for ConvaTec's
products but also leads customers to limit payments for these in
the context of strained finances, which leads to downward price
pressure, particularly in the most competitive markets. An
additional social factor that Moody's considers is that of
responsible production, reflected in the reputational damage,
additional costs and risk of customer loss associated with
potential product recalls, safety and manufacturing compliance
issues and litigation. ConvaTec's performance was held up by such
challenges in 2017-18 when migrating a manufacturing line from the
US to the Dominican Republic. However, 2019 has shown signs of
stabilisation in the group's organic growth, excluding adverse FX
effects on revenues and EBITDA. In terms of governance, there are
execution risks around the group's significant transformation,
which could reduce the focus on the areas of the business not
affected by the transformation.

Moody's views ConvaTec's liquidity as very good. It is supported by
a cash balance of $376 million as of June 30, 2019, forecast cash
flow from operating activities of around $300 million in 2019
(before capex and dividends) and full availability under the
renewed $200 million equivalent revolving credit facility (RCF).
The rating agency anticipates that headroom under the two
maintenance covenants (net leverage and interest cover) on the term
loans and RCF will be sufficient at all times.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that ConvaTec will
continue to operate with moderately high financial leverage.
However, the company's very good liquidity will enable it to manage
through its transformation over the next 12-18 months.

WHAT COULD CHANGE THE RATING UP/DOWN

ConvaTec's ratings could experience positive pressure should (1)
the group record consistent organic growth in revenue and EBITDA
across its business lines, and (2) Moody's-adjusted gross
debt/EBITDA sustainably decrease to around 3.0x, (3) while
maintaining prudent financial policies.

Conversely, ConvaTec's ratings could come under downward pressure
if (1) operating performance deteriorated, or (2) Moody's adjusted
gross debt/EBITDA was sustained above 4.0x, or (3) the group
adopted a more aggressive financial policy characterised by
debt-funded acquisitions or dividend payout ratio increases.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.

ConvaTec Group Plc, headquartered in Reading, UK and listed on the
London Stock Exchange, is a global medical products provider
focused on therapies for the management of chronic conditions. The
company develops and manufactures products in the areas of advanced
wound care, ostomy care, continence and critical care and infusion
devices. In the LTM June 2019, ConvaTec reported revenues of $1.8
billion and EBITDA of $458 million.

EDDIE STOBART: Former Boss Puts Forward GBP75MM Rescue Deal
-----------------------------------------------------------
Matthew Field at The Telegraph reports that former Stobart Group
boss Andrew Tinkler is pressing forward with a rescue plan for
struggling haulier Eddie Stobart, which faces a cash crunch and a
fight to save 6,500 jobs.

According to The Telegraph, Mr. Tinkler, who ran the logistics
fleet as part of Stobart Group until 2014, is preparing a GBP75
million deal for the trucking company.

On Nov. 15, Eddie Stobart recommended to shareholders a GBP55
million loan from investment firm Dbay Advisors that would give it
a majority stake and saddle existing shareholders with losses, The
Telegraph relates.

The company's shares have been suspended since August after an
accounting black hole was revealed in its finances, The Telegraph
discloses.  Chief executive Alex Laffey left the business when the
scandal was unearthed, The Telegraph recounts.



INTERSERVE PLC: Abolishes Role of Chief Executive
-------------------------------------------------
Gill Plimmer at The Financial Times reports that the troubled
government contractor Interserve has abolished the role of chief
executive in a move that paves the way for an eventual break up of
the construction and support services company.

According to the FT, Debbie White, chief executive for the past two
years, will step down next month and will not be replaced.
Instead, the company will strengthen the leadership of its three
divisions--construction, support services and its profitable
equipment services subsidiary, RMDK, the FT discloses.  Ms. White
had already told the company of her intention to leave, the FT
notes.

Interserve, which employs 69,000 staff worldwide and 45,000 in the
UK, was taken into the hands of creditors in March this year in a
deal that wiped out the value of about 16,500 smaller shareholders,
the FT recounts.

The government, lenders and the board had been keen to avoid
another high-profile collapse of a government outsourcer so soon
after Carillion, a rival contractor, which went into liquidation in
January last year, the FT states.

RMDK, which accounts for about half of operating profits, had
earlier been ringfenced by lenders--which include high street banks
HSBC and Royal Bank of Scotland and hedge funds Davidson Kempner,
Cerberus, Angelo Gordon and Emerald Investment Partners--in return
for wiping out GBP480 million of its debt and injecting GBP110
million equity, the FT discloses.

The division is widely expected to be sold off, though Interserve
said there were no immediate plans to sell any of the businesses,
according to the FT.

Although the company has won millions of pounds in contracts and
contract extensions since March's deleveraging, it has continued to
be plagued by lossmaking contracts, including its disastrous foray
into energy from waste plants, the FT relays.

On Nov. 14 Interserve was forced to write off a GBP22 million
investment in a joint venture set up to deliver a Derbyshire
energy-from-waste plant, the FT recounts.


ITHACA ENERGY: Fitch Assigns B+ LT IDR, Outlook Stable
------------------------------------------------------
Fitch Ratings assigned Ithaca Energy Ltd. a final Long-Term Issuer
Default Rating of 'B+' with Stable Outlook. Fitch has also assigned
Ithaca Energy Plc's USD500 million notes a final rating of
'B+'/'RR4'/40%.

The rating actions follow Ithaca's completed acquisition of Chevron
North Sea Limited and Fitch's review of the final terms and
conditions conforming to information already received when Fitch
assigned the expected rating on July 8, 2019.

Ithaca Energy is a medium-scale exploration and production (E&P)
company focusing on the North Sea. In November 2019, Ithaca
completed the acquisition of 100% of CNSL's shares for USD2
billion. The acquisition will materially improve the company's
business and financial profile.

Ithaca's 'B+' rating and Stable Outlook reflect (i) the increased
scale of operations following the closing of the CNSL acquisition
and improvement in the business profile, which Fitch believes is
now commensurate with a 'B+' rating; (ii) low financial leverage
and conservative hedging policies; (iii) strong forecast free cash
flow (FCF) generation, supported by accelerated monetisation of
Ithaca's UK tax assets; and (iv) the stable operating environment
in the UK. The ratings also reflect the company's high
decommissioning obligations, although these are predominantly
long-term, tax-deductible and should not have a significant impact
on near-term cash flows, and low proved reserve life of four
years.

KEY RATING DRIVERS

Transformative Acquisition: Ithaca's acquisition of CNSL improves
its credit profile by materially growing its scale and
strengthening its financial profile. The deal, which transforms
Ithaca into the second-largest independent oil and gas producer in
the UK Continental Shelf (UKCS), comprises 10 producing field
interests that add 60 thousand barrels of oil equivalent per day
(kboepd) to Ithaca's production, bringing 2019 pro-forma output to
around 80kboepd.

Moderately Diversified Asset Base: Ithaca's asset base is
moderately diversified. Following the completion of the
acquisition, the company will produce from 18 fields located
predominantly in the Central North Sea area, with the largest asset
(the Captain field) accounting for around 30% of 2019 total
production, and three largest assets accounting for 63%. The
largest part of the company's 2019 production is operated, which
means more capex flexibility, and it is exposed to liquids (62%)
and natural gas (38%).

Because many of the company's assets are beyond their mid-life
point, Fitch assumes production to decline to around 70kboepd by
2022-23 in the absence of acquisitions and new projects. Fitch
views Ithaca's cost position with opex at USD15/boe in 2019 as
average compared with a broader peer group, but fairly comfortable
for a company operating in the region.

Low Proved Reserves: Ithaca's low proved (1P) reserve life ratio of
four years is weaker than that of other Fitch-rated E&P peers and
is the key rating constraint. However, it is not uncommon for a
company focusing on the UKCS, given the basin's ageing
characteristics. Fitch believes this is somewhat mitigated by the
company's proved and probable (2P) reserve life of eight years,
strong financial profile and solid cash flow generation, which
Fitch assumes should enable the company to replenish reserves over
time organically and potentially through acquisitions.

Conservative Financial Profile: Fitch projects Ithaca's fund from
operations (FFO) adjusted net leverage at around 2.0x at end-2019
and expect it to decline towards 1.2x over 2020-22 under its base
case assumptions, as a result of strong FCF generation. The
company's own internal leverage target is conservative at a net
debt/EBITDA of below 2.0x through the cycle.

Strong FCF: Fitch expects Ithaca to generate strong FCF over
2020-23 based on its moderate capital spending plans and
monetisation of accumulated tax losses. Its hedging policy with a
target hedge of 75% of the company's exposure over the next three
years adds certainty to its cash flows. Fitch believes that the
company should be able to rapidly repay its reserve-based lending
facility (RBL), of which USD1.1 billion is utilised following
completion of the acquisition.

Decommissioning Obligations Long-Term: As part of the CNSL
acquisition, Ithaca assumes responsibility for CNSL's outstanding
North Sea decommissioning obligations, increasing its abandonment
liability to approximately USD730 million (post-tax). Positively
for the credit profile, the majority of the decommissioning-related
cash outflows is expected after 2026 (after the expected bond is
due) and is tax-deductible. Fitch does not add decommissioning
obligations to debt, but deduct them from the projected operating
cash flows as they are incurred. Fitch assumes cumulative cash
outflow of around USD40 million over 2019-2022, in line with the
company's estimates.

Rating on Standalone Basis: Ithaca is fully owned by Delek, a Tel
Aviv-listed group mainly focusing on natural gas E&P offshore
Israel and the goal of transforming itself into an international
E&P business. Fitch does not rate Delek but Fitch views its current
consolidated credit profile as broadly commensurate with the 'B'
rating category, assuming Delek's high debt but also its
deleveraging capacity, and abundant natural gas reserves, with
stakes in the producing Tamar field and the giant Leviathan field
soon coming on-stream.

Fitch views legal and operational ties between Delek and Ithaca as
weak and so rate Ithaca on a standalone basis. Fitch believes the
restrictions in Ithaca's credit documentation with regard to
additional indebtedness, dividends limited to 50% of net income,
lack of upstream guarantees and Ithaca's operational autonomy
support this approach.

Acquisitions Possible: Fitch understands from its discussions with
the management and Delek that the priority over the next 12-18
months for Ithaca would be to integrate the newly acquired assets.
However, management also expressed appetite for potential bolt-on
acquisitions with the aim of growing production and reserves while
keeping financial profile fairly conservative. Fitch will consider
possible future acquisitions and their impact on the credit profile
as they occur.

IPO Possible: Delek expects to consider a future re-listing of
Ithaca while retaining a majority shareholding. Its rating case
assumes dividend pay-out at 50% of net income starting from 2021 in
anticipation of the possible IPO, although Fitch recognises that
the company will have flexibility with regard to the level of
dividends.

DERIVATION SUMMARY

Ithaca's scale, measured as the level of production (80kboepd
pro-forma for the CNSL acquisition) compares well with that of
peers rated in the 'B' rating category, such as Kosmos Energy Ltd.
(B+/Stable, 70kboepd) and Seplat Petroleum Development Company
(B-/Positive, 25kboepd). However, Ithaca's absolute level of proved
reserves is lower than that of Kosmos and Seplat, which results in
a weaker reserve life of four years. This is mitigated by the
company's forecasted low leverage and strong FCF generation
capacity over its four-year rating horizon, as well as adequate 2P
reserve life of eight years. Ithaca's operations are focused on the
UK North Sea, a more stable operating environment compared with
Kosmos, which still derives the majority of its production in
Ghana, and Seplat, which only focuses on Nigeria.

KEY ASSUMPTIONS

  - Crude oil prices of USD65/bbl in 2019, USD62.5/bbl in 2020,
USD60/bbl in 2021 and USD57.5/bbl thereafter

  - NBP prices of USD4.75/mcf in 2019, USD5.5/mcf in 2020,
USD6.0/mcf in 2021 and USD6.5/mcf thereafter

  - Pro-forma upstream production of 82kboepd in 2019, declining to
70kboepd by 2022

  - Average capex of around USD250 million over 2019-22

  - Dividend pay-out of 50% of net income starting from 2021
onwards

  - No cash taxes over 2020-22

Recovery Assumptions:

Its recovery analysis is based on a going-concern approach, which
implies that the company will be reorganised rather than liquidated
in a bankruptcy.

Ithaca's going-concern EBITDA is based on the average 2019-21
EBITDA forecasted under Fitch's most recent price deck. Fitch used
a discount of 20% to reflect the risk of operational issues in
production assets and resulting distressed EBITDA.

Fitch believes that a 3.5x multiple reflects a conservative view of
the going-concern enterprise value (EV) of the business. Such a
multiple is below the 4.5x average multiple employed by Fitch for
the natural resources sector to reflect the declining profile of
the production assets and the decommissioning obligation associated
with them.

In line with Fitch's criteria, Fitch assumes the RBL is fully drawn
upon default and take 10% off the EV to account for administrative
claims. The waterfall recoveries indicate that bondholders would
achieve a recovery of 40%, resulting in a final instrument rating
of 'B+'/'RR4'.

RATING SENSITIVITIES

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

  - Upstream production of consistently and materially above
75kboepd coupled with 1P reserve life sustainably at or above six
years (2018 pro forma: four years)

  - Maintenance of a conservative financial profile with
FFO-adjusted net leverage below 2.5x (2020F: 1.4x)

  - Positive rating action would also be contingent on its
re-assessment of the company's linkage with its parent, Delek, and
the latter's credit profile

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

  - Inability to replenish proved reserves and/or production
falling consistently below 50kboepd

  - FFO-adjusted net leverage consistently above 3.5x (e.g. as of
result of large debt-funded acquisitions)

  - Change in the financial policies, including aggressive
dividends or failure to gradually reduce the RBL utilisation

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: As part of the CNSL acquisition, Ithaca is
refinancing its capital structure with a combination of an upsized
RBL (to USD1.65 billion from USD400 million), USD500 million of
senior notes and USD765 million of equity contribution from Delek,
which were utilised to cover the acquisition cost and repay all
outstanding debt. Fitch expects that at end-2019 the company will
have around USD300 million in unutilised liquidity under its RBL.
Fitch expects Ithaca to generate large FCF in 2020-21, further
enhancing its liquidity position, which should allow the company to
gradually repay its RBL.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.

KIER GROUP: Faces Investor Pay Revolt Over Chief Exec's Bonus
-------------------------------------------------------------
Gill Plimmer at The Financial Times reports that government
outsourcer Kier suffered an investor pay revolt on Nov. 15 after
criticism that chief executive Andrew Davies could earn more than
GBP1 million in bonuses despite disastrous profit warnings and a
plunging share price.

Kier paid its board a total of GBP2.1 million in the year to June,
when the company reported losses of GBP245 million, the FT
discloses.  It also admitted it paid its former chief executive's
home broadband bill for five months after he left, the FT notes.

According to the FT, although the total pay is down from GBP5.5
million the year before because Kier did not pay any bonuses in
2018-19, 53.9% of shareholders rejected the directors' pay report
at the annual meeting.

Influential shareholder advisory group ISS opposed the pay because
Mr. Davies could be paid a long-term bonus of up to 175% of his
salary, which could equal more than GBP1 million, the FT relates.

Glass Lewis, another investor advisory group, also opposed a pay
increase on the grounds there was no "compelling rationale", the FT
notes.

Kier's shares have dropped 90% over the past year, as its market
value has fallen to less than GBP200 million from about GBP1
billion, the FT relays.

The group also confirmed on Nov. 15 that it is on track to make
1,200 job losses by next June, according to the FT.

At the end of last year, shareholders had refused to buy into an
emergency cash call that aimed to reduce Kier's GBP624 million
debt, leaving the banks and brokers that had underwritten the deal
nursing almost GBP7 million in losses, the FT recounts.

In March, it revised debt up by GBP50 million after an accounting
error, alarming investors and raising further concerns over the
financial health of the company, the FT discloses.

It now has debt of GBP167 million, and has outlined plans for GBP55
million annual cost savings, including disposals, the FT notes.  It
was ousted from the government's prompt payment code for failing to
honor a commitment to pay 95% of all supplier invoices within 60
days, the FT states.

Kier ran into trouble after ramping up debt through acquisitions,
the FT relates.


LUDGATE FUNDING 2008-W1: Fitch Upgrades Class E Debt to Bsf
-----------------------------------------------------------
Fitch Ratings taken the following rating actions on Ludgate Funding
Plc Series:

Ludgate Funding Plc's Series 2008-W1

Class A1 XS0353588386;  LT AAAsf Affirmed; previously at AAAsf

Class A2b XS0353589608; LT AAAsf Upgrade; previously at A+sf

Class Bb XS0353591505;  LT A+sf Upgrade; previously at BBBsf

Class Cb XS0353594434;  LT A-sf Upgrade; previously at BBsf

Class D XS0353595597;   LT BBBsf Upgrade; previously at B+sf

Class E XS0353600348;   LT Bsf Upgrade; previously at CCCsf

Ludgate Funding Plc Series 2006 FF1

Class A2a XS0274267862; LT AAAsf Affirmed; previously at AAAsf

Class A2b XS0274271203; LT AAAsf Affirmed; previously at AAAsf

Class Ba XS0274268241;  LT AAsf Affirmed; previously at AAsf

Class Bb XS0274271898;  LT AAsf Affirmed; previously at AAsf

Class C XS0274272359;   LT A-sf Affirmed; previously at A-sf

Class D XS0274272862;   LT BBB-sf Upgrade; previously at BBsf

Class E XS0274269645;   LT BBsf Upgrade; previously at Bsf

Ludgate Funding Plc Series 2007 FF1

Class A2a XS0304503534; LT AAAsf Affirmed; previously at AAAsf

Class A2b XS0304504003; LT AAAsf Affirmed; previously at AAAsf

Class Bb XS0304508681;  LT BBB+sf Affirmed; previously at BBB+sf

Class Cb XS0304509739;  LT BBB-sf Affirmed; previously at BBB-sf

Class Da XS0304510158;  LT BBsf Affirmed; previously at BBsf

Class Db XS0304512105;  LT BBsf Affirmed; previously at BBsf

Class E XS0304515546;   LT CCCsf Affirmed; previously at CCCsf

Class Ma XS0304504698;  LT A+sf Affirmed; previously at A+sf

Class Mb XS0304505232;  LT A+sf Affirmed; previously at A+sf

TRANSACTION SUMMARY

The Ludgate series comprises securitisations of buy-to-let (BTL)
and non-conforming residential mortgages originated by Freedom
Funding Ltd (LG 2006 and 2007) and Wave Lending Limited (LG 2008).
The mortgages were purchased by Merrill Lynch International Bank
Limited.

KEY RATING DRIVERS

Under Criteria Observation Resolution

The rating actions take into account the new UK RMBS Rating
Criteria dated October 4, 2019. The notes' ratings have been
removed from Under Criteria Observation. Fitch analysed all
transactions' sub-pools under the new criteria using Fitch's
non-conforming and BTL assumptions. The rating actions mainly
result from the reduction of the non-conforming sub-pool's
weighted-average foreclosure frequency (WAFF) after applying the
performance adjustment factor and switching the BTL sub-pool to BTL
assumptions.

Interest Only Concentration

Ludgate 2006 has a material concentration of interest-only (IO)
non-conforming loans maturing within a three-year period during the
lifetime of the transactions, peaking at 41% between 2029 and 2031.
Where a concentration is present, Fitch will derive an IO
concentration WAFF and apply in the analysis the higher of this WA
FF and the standard portfolio WA FF for each rating level. For
these pools Fitch has applied the foreclosure frequency based on
the IO concentration WA FF.

Improved Asset Performance

Arrears and repossessions have stabilised over the last two years.
Late stage arrears have been below 3% for all transactions in the
past two years leading to stable cumulative repossessions under 12%
of the opening collateral balance.

Pro-Rata Amortisation

The transactions are currently paying pro-rata as all relevant
triggers have been met. The pro-rata conditions dictate that the
transaction will revert to sequential redemption once the aggregate
principal outstanding reached 10% of the amount at closing, in case
of additional conditions not achieved previously. This feature
protects the transactions from excessive tail risk.

Non-Amortising Reserve Fund and Liquidity Facility

The transactions features non-amortising reserves due to having
breached a total loss trigger, which is irreversible. The liquidity
facility is available to all note classes subject to a principal
deficiency ledger (PDL) trigger, providing support to the junior
tranches in Fitch's lower rating scenarios where the PDL condition
is not breached. The non-amortising reserve fund is currently fully
funded and results in a build-up of credit enhancement despite the
pro-rata amortisation.

RATING SENSITIVITIES

High BTL Component: While these are mixed pools the BTL component
is high at 52.3%, 64.6% and 68.4%, for Ludgate 2006, 2007 and 2008,
respectively. A downturn in this sector, for which Fitch currently
has a negative asset performance outlook, could have a material
effect on these pools compared with other mixed pools that
typically have a lower BTL component.

Floating Rate Pool: All loans in the pool pay interest at a margin
above BBR. The basis risk is only hedged in the 2007 and 2008 pools
and borrowers would be exposed to a material increase in interest
rates from the Bank of England regardless of the hedging
arrangements entered into by the issuer.

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.

TATA STEEL UK: S&P Alters Outlook to Stable & Affirms 'B+' LT ICR
-----------------------------------------------------------------
On Nov. 15, 2019, S&P Global Ratings revised its outlook on Tata
Steel UK (TSUKH) to stable from positive in line with parent Tata
Steel. S&P also affirmed its 'B+' long-term and 'B' short-term
issuer credit ratings on the U.K.-based company.

S&P said, "We revised the outlook on Tata Steel UK Holdings Ltd.
(TSUKH) to stable from positive--following the revision in outlook
of Tata Steel Ltd. (BB-/Stable/--)--noting the continued strength
of relationship between TSUKH and Tata Steel notwithstanding
TSUKH's weak operating performance."

Weaker medium-term outlook on steel prices diminishing Tata Steel's
EBITDA and slowing the company's pace of deleveraging are the key
factors behind our rating action on Tata Steel.

S&P said, "We expect TSUKH to register an EBITDA of only GBP140
million in fiscal 2020 (year ending March 2020), down from GBP300
million in fiscal 2019 and GBP390 million in fiscal 2018. While
fiscal 2020 performance was affected by an unplanned outage in the
first quarter, we expect a gradual recovery starting in the fourth
quarter such that EBITDA steps up to GBP300 million in fiscals 2021
and 2022.

"We believe TSUKH is unlikely to return to the profitability seen
in fiscal 2018 and prior years because carbon-emission-related
regulatory costs are now a permanent feature of its cost profile.
As such, an annual capital expenditure (capex) burden of GBP380
million will ensure that the company continues to depend on its
parent to support its debt service requirements.

"Despite looking for divestment opportunities, we believe Tata
Steel will continue to own TSUKH and will support TSUKH's cash flow
deficit on an ongoing basis. Such support has totaled GBP5 billion
until fiscal 2019 and may increase going forward as we expect TSUKH
to be free cash flow negative to the extent of GBP300
million-GBP400 million annually over the next one to two years
notwithstanding the modest recovery in profitability expected
starting in the fourth quarter of fiscal 2020."

The stable outlook on TSUKH reflects that on parent Tata Steel,
driven by likely deleveraging from sustained sales volumes and
restrained capital spending. The outlook on TSUKH also reflects the
continued likelihood of parent support, if needed, to bridge any
cash flow shortfall at TSUKH.

S&P said, "We will lower the rating on TSUKH if: (1) we lower the
rating on Tata Steel; or (2) Tata Steel shows signs of reducing
support to TSUKH.

"We may raise the rating on TSUKH if we upgrade Tata Steel,
provided that the parent's support and relationship with TSUKH
remains unchanged, and TSUKH's funding gap has not materially
worsened from current levels."


                           *********


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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