TCREUR_Public/170725.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Tuesday, July 25, 2017, Vol. 18, No. 146



IDEMPAPERS SA: New Potential Buyers Emerge


GRANOLIO: Files Motion to Open Pre-Bankruptcy Proceedings

C Z E C H   R E P U B L I C



ELIOR GROUP: Fitch Affirms BB Long-Term IDR, Outlook Stable


DEMIRE DEUTSCHE: Moody's Assigns Ba2 Corporate Family Rating


MOL HUNGARIAN: S&P Affirms 'BB+' CCR, Revises Outlook to Pos.


ALITALIA SPA: Ryanair Makes "Non-Binding" Offer
BORMIOLI ROCCO: S&P Affirms 'B' CCR, Revises Outlook to Negative


ALTYN BANK: Moody's Affirms Ba2 Deposit Ratings, Outlook Stable
HALYK SAVINGS: Qazkom Deal to Impact Capital Ratios, Moody's Says


CANYON COS: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
JSL EUROPE: S&P Assigns 'BB' Rating to $325MM Sr. Unsecured Notes
JSL EUROPE: Fitch Assigns 'BB(EXP)' Rating to US$325MM Notes
ROBERTSHAW HOLDINGS: S&P Assigns 'B' CCR, Outlook Stable


CAIRN CLO V: S&P Assigns B- (sf) Rating to Class F-R Notes


HIPOTOTTA NO. 5: S&P Raises Rating on Class E Notes to BB+
NOVO BANCO: Senior Bondholders May Reject Debt Deal

* S&P Places 32 Portuguese RMBS Deals Ratings on Watch Positive


* ROMANIA: Number of Insolvent Companies Up 5% in 1H of 2017


ELEMENT LEASING: S&P Withdraws 'B/B' Counterparty Credit Ratings
TENEX-SERVICE: S&P Withdraws 'BB/B' Counterparty Credit Ratings


IM SABADELL RMBS 2: S&P Affirms B- Rating on Class C Notes


NOVIY PJSC: Declared Insolvent by National Bank of Ukraine

U N I T E D   K I N G D O M

BOWERS PROJECTS: Faces Liquidation, Halts Operations
PRIMUS: Enters Into CVA Following Cash Flow Problems
ROYAL MENCAP: Faces Insolvency After Night Carers' Back Pay Order
STEPHEN C ASSOCIATES: UK Orchestra Promoter Goes Into Liquidation
TURNSTONE MIDCO: Fitch to Withdraw Ratings for Commercial Reasons

UMV GLOBAL: S&P Affirms 'B+' LT Corporate Credit Rating


IPOTEKA BANK: S&P Affirms 'B+/B' Counterparty Credit Ratings



IDEMPAPERS SA: New Potential Buyers Emerge
EUWID reports that new potential investors have emerged for
Idempapers S.A., which has been declared bankrupt in early June.
An interested investor had withdrawn his takeover offer.

According to EUWID, the Belgian trade union CGSLB said that new
investors had emerged who were interested in participating in a
project to restart operations. Yet, the project still needs
further investors. Idempaper's former CEO does not think the
project is likely to succeed, the report states.

Plans include the restart of one of the two machines at the site
in Virginal-Samme, CGSLB, as cited by EUWID, said. The mill used
to produce specialty papers such as carbonless paper, label paper
and poster paper.

Idempapers has been insolvent since early June this year, after
Avery Dennison had withdrawn his offer to acquire the company,
the report notes.

Idempapers S.A. manufactured and marketed specialty papers and
paper products. It offers carbonless papers, such as sheets,
reels, and ancillaries used for invoices, delivery notes,
purchase orders, debit and credit notes, expenses forms,
insurance contracts, legal contracts, medical forms, attendance
sheets, timetables, and other applications. The company also
provided specialty papers, including labels and packaging papers,
and visual communication papers; and one-side coated products. It
sold its products through distributors in Belgium and


GRANOLIO: Files Motion to Open Pre-Bankruptcy Proceedings
SeeNews reports that Croatian agricultural company Granolio, a
major supplier to Croatia's ailing food and retail concern
Agrokor, said it has filed a motion to open pre-bankruptcy
proceedings with the commercial court in Zagreb.

According to SeeNews, Granolio said in a filing with the Zagreb
Stock Exchange on July 21 that its bank accounts were blocked and
it is undertaking all necessary measures to settle its
obligations and unfreeze its business accounts as soon as

Granolio, SeeNews says, is now considered a victim of the
financial woes of Agrokor.

Agrokor owes Granolio some HRK100 million (US$15.7
million/EUR13.5 million), SeeNews relays, citing local media

C Z E C H   R E P U B L I C

Fitch Ratings has affirmed Severomoravske vodovody a kanalizace
Ostrava a.s.'s (SmVaK) Long-Term Foreign- and Local- Currency
Issuer Default Ratings (IDR) at 'BB+' with Stable Outlooks. Fitch
has also affirmed the local-currency senior unsecured rating of
SmVaK's CZK5.4 billion (EUR200 million) notes at 'BBB-'.

The affirmation reflects SmVaK's stable operations as a regional
water utility operating in a favourable regulatory framework and
its comfortable debt maturity and liquidity profile. Fitch
anticipates SmVaK will continue to generate stable profits and
operating cash flows to fund capex and dividend payments within
the boundaries set by its bond covenants and Fitch rating
guidelines. Fitch sees some regulatory risks on the horizon, but
if they materialise SmVaK should have sufficient flexibility to
reduce dividends. Hence Fitch currently treat them as neutral for
the ratings.


Regional Monopoly: SmVaK operates as a regional water and
sewerage monopoly in the Moravia and Silesia region of the Czech
Republic. It is located in a fairly densely populated area with
access to three separate water reservoirs in mountainous
locations, each of which is able to fully supply the whole
region. SmVaK is both the owner and operator of the assets in its
core region of operations. It acts also as an asset operator in
some other locations in the Czech Republic and as a water
supplier to the border area with Poland.

Benign Regulatory Framework: The Czech regulatory framework is
supportive of SmVaK's credit profile. There is no independent
regulator, but the tariffs must be set within the legal
boundaries. These include a pass-through of all operating costs
related to regulated activities, return on capital employed
(WACC) of 7% as well as a maximum increase in regulated profit of
7%. Volume risk is mitigated by predictable trends and tariff
adjustments if volumes or cost inflation fluctuate outside plans.

Regulatory Changes: From 2017 the tariff formula no longer
contains the "RO" component, which was the difference between the
annual investment in asset renewal and the depreciation of
existing fixed assets. The company should be able to partially
mitigate this change, eg. by qualifying some of its activities so
far remunerated under RO as justified operating expenditure. A
country level regulator for water utilities in the Czech Republic
may also be established due to significant tariff rises
incorporated by some other water companies. If established, the
regulator could impose stricter control and a more uniform
regulatory framework for the whole sector.

Long-Dated Debt; High Leverage: The CZK5.4 billion bond issue in
2015 extended SmVaK's effective debt maturity to 2022 with only
some minor leasing repayments in the meantime. Proceeds from the
bond, apart from refinancing of the previous CZK2 billion bond,
were paid out to shareholders in the form of dividends (CZK1.3
billion) and capital reduction (CZK2.2 billion), which increased
the company's funds from operations (FFO) adjusted net leverage
to about 5x in 2015 from 2x in 2014.

Fitch expects FFO adjusted net leverage to remain slightly above
5x and FFO fixed charge cover to above 6x over 2017-2021. Fitch
deem the leverage as high but affordable, taking into account the
regulated nature of the earnings and long track record of a
predictable regulatory framework in the Czech Republic.

High Capex and Dividends: SmVaK's capex in the next five years
will amount to CZK0.5 to CZK0.6 billion per annum, which is
comparable with the historical values. Operating cash flows, net
of capex, will be largely paid out as dividends. In Fitch rating
case Fitch assume dividends at 90% of previous year net profit,
ie at about CZK0.3 billion per annum. Capex planned by the
company is close to 90% obligatory or maintenance and therefore
cannot be easily cut or postponed. On the other hand, dividends
could be reduced if there are any unexpected funding needs,
providing SmVaK some flexibility within the bond covenants and
Fitch rating guidelines.

Capital Reduction Dispute: In 2016, upon the request of a
minority shareholder, the courts in Ostrava and Olomouc declared
the 2015 resolution to reduce share capital to be null and void.
However, this year the shareholders readopted the resolution to
reduce the share capital by the same amount as in 2015. As
proceeds related to the capital reduction have been paid out from
SmVaK prior to the court rulings, reversal of the capital
reduction on a cash basis would be positive for SmVaK's credit
profile. Fitch does not assume it in Fitch rating case taking
into account the shareholders' repeated intention to reduce the
company's capital.

Generic Senior Unsecured Uplift: The unsecured bond ratings
benefit from a single-notch uplift from the IDR to reflect
SmVaK's fully regulated network-based earnings profile. Although
the regulatory framework for water and sewerage does not benefit
from an independent regulator and has other limitations compared,
for example, with the UK framework, it is benign with a long
track record and the company's asset values have been well
preserved over the last 20 years.


SmVaK's closest peers among Fitch-rated central European water
utilities are Polish Aquanet (BBB/Stable) and Miejskie Wodociagi
i Kanalizacja w Bydgoszczy (MWiK, secured revenue bonds rated
BBB/Stable). SmVaK operates in a more predictable regulatory
framework and owns a developed asset base, but its leverage is
significantly higher than Aquanet's and MWiK's. Aquanet is the
largest peer in terms of EBITDA and FFO with low leverage and
full retention of profits, which underpins its lowest credit risk
among the three companies. MWiK's credit profile is in between
that of Aquanet and SmVaK.


Fitch's key assumptions within Fitch rating case for the issuer
- reduction in water sales volumes on average by 0.8% per annum
   until 2021;
- tariffs increasing on average by 1.8% annually until 2021 on
   the back of rising operating costs;
- reduction in EBITDA from CZK1.1 billion in 2016 to CZK1.0
   billion in 2017 following change in the tariff formula, stable
   at CZK1.0 billion in the following years;
- interest costs not included in tariffs;
- capex at CZK2.7 billion over 2017-202;1
- dividend pay-outs at CZK287 million in 2017 and 90% of net
   profits over 2018-2021.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- FFO adjusted net leverage below 5.0x and fixed charge coverage
   above 5.0x, both on a sustained basis
- Lower business risk, for example in the form of an independent
   regulator with a still benign regulatory framework

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- FFO adjusted net leverage above 5.5x and fixed charge coverage
   below 4.0x, both on a sustained basis
- Higher business risk, such as a less benign or more
   exposed tariff determination, and lower WACC


Ample Liquidity: At end-2016 SmVaK's liquidity was ample with
readily available cash of CZK482 million and undrawn committed
credit line of CZK150 million against short-term debt of CZK72
million and neutral free cash flow in 2017.


ELIOR GROUP: Fitch Affirms BB Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Elior Group S.A.'s (Elior) Long-Term
Issuer Default Rating (IDR) at 'BB' with Stable Outlook.
Following full repayment of the senior secured notes in 2016, the
'BB+' instrument rating for Elior's senior secured facility has
been withdrawn.

The IDR affirmation reflects the balance of Elior's continuing
resilient business model and improving geographic
diversification. The group benefits from long-term contracts,
barriers to entry, large scale, and healthy cash flow generation.
Whilst the rating outlook remains Stable, a successful
implementation of the ongoing transformation and acquisition
programmes will likely be viewed positively for the ratings.


Stable, Resilient Business Model: Elior's large scale, strong
brand name, broad range of services, diverse customer base and
high barriers to entry support steady profitability and cash
flow. The company's stable and resilient business model is
supported by long-term growth prospects and the ongoing trend
towards outsourcing. Revenues are stable with low contract
renewal risk, supported by medium- to long-term contracts in
concession catering and high retention rates of over 90% in its
contract catering business.

Steady Contracts; Improving Margins: Fitch expects Elior's EBITDA
margin to improve to about 9% by FY19 (financial year ending
September), from 8.4% in FY16, supported by continued realisation
of operational efficiencies and economies of scale as well as
continued organic growth in the higher margin concessions
business. Contract catering represents about 72% of group revenue
and some 65% of group EBITDA. Average contract term for the
catering business is about six to seven years while concession
contracts are generally seven to nine years, with some extending
as far as 15 years (in motorways) and 30 years (in the US).

Concentration in France: Elior has many key factors that are
commensurate with a low investment grade rating. Its main
constraint is lower geographical diversification relative to
peers. France and European countries accounted for 84% of revenue
during FY16, while France alone accounted for about 52% of group
EBITDA. Elior's ongoing EUR1 billion five-year acquisition
programme aimed at expanding its presence in the UK & US is
viewed by Fitch as positive for the ratings. While execution
risks and FX exposure will increase, diversification and scale
will improve. Fitch is confident in management's track record and
their ability to manage these risks.

Other factors constraining the rating are the group's exposure to
unemployment cycles, changing regulation, food safety and rising
raw material costs.

Cash Flow to Turn Positive: Free cash flow (FCF) was marginally
negative in FY16 due to high one-off costs relating to early bond
redemption as well as higher restructuring charges. However, the
asset-light nature and low capital intensity of the business
allow Elior to generally convert operating profits into positive
FCF. Fitch expects FCF to turn positive in FY17 and to grow
thereafter, due to the planned higher capital intensity in the
concessions business in FY17 and FY18 leading to improved
profitability. FCF margin is forecast at about 1.4% in FY17 and
Fitch expects it will grow over the next two years to above Fitch
positive sensitivity guidance of 2%.

Improving Credit Metrics: Funds from operations (FFO) adjusted
leverage increased to 5.8x at FYE16, which was above Fitch
negative sensitivity guidance of 5.0x. However, as this was a
result of large non-recurring costs Fitch expects the metric to
steadily decline to around 4.3x by FY19, comfortably within the
current ratings. The announced acquisition spend of EUR1 billion
over 2016-2020 will slow deleveraging in the near term, but this
is balanced by the group's growth strategy to expand into new
geographies, improving scale and diversification.

FFO fixed charge coverage is steadily improving (3.3x in FY16 vs.
2.0x in FY14). Fitch forecasts that this will continue to improve
to 4.5x by FY19 due to improved profitability, coupled with lower
interest costs, which would be more commensurate with a higher


Elior is one of the leading contract and concession caterers
globally, behind Compass Group plc (A-/Stable) and Sodexo S.A
(BBB+/Stable). Factors constraining Elior from investment grade
are its lower geographical diversification and, to a lesser
extent, weaker financial profile relative to these two peers.
Aramark (bb+*/stable) is a US contract catering business with a
similar financial profile to Elior. The rating differential is
driven by Aramark's slightly stronger business profile, as well
as ongoing changes and uncertainties at Elior with its Tsubaki
transformation programme and acquisition strategy. If these are
both successfully implemented, Fitch believes that Elior will be
on a positive rating path.


Fitch's key assumptions within Fitch ratings case for the issuer
- Mid- to-high single-digit annual revenue growth. Organic
   remaining between 2.1% and 3.6% (excluding contract exits), as
   well as impact from the acquisition programme;
- EBITDA margin of 8.6% in FY17, improving towards 9% by FY19
- Capex remaining between 3.1% and 3.8% from now until FY20,
   higher in FY17 and FY18 due to higher concession catering
- Dividend payments increasing by about 15% each year.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
  - Additional business diversification, by segment and/or
    geography, leading to improved revenues and profitability.

  - Further deleveraging resulting in FFO-adjusted gross leverage
    trending towards 4.0x.

  - FFO fixed charge coverage above 3.5x on a sustained basis.

  - FCF (post dividends) of at least 2% of sales on a sustained
    basis (FY16: -0.1%).

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
  - Evidence that underlying and acquired businesses are
    performing below expectations and/or increases in the cost
    base leading to weakness in revenue growth, and EBIT or FFO
    margin weakening to around 5% (FY16: 5.6% and 5.2%

  - FFO adjusted gross leverage failing to fall below 5.0x on a
    sustained basis (FY16: 5.8x)

  - FFO fixed charge coverage below 3.0x on a sustained basis
    (FY16: 3.3x)


Adequate Liquidity: Elior had unrestricted cash (as defined by
Fitch) of EUR131 million at FYE16, together with access to around
EUR580 million of undrawn credit facilities. At end-1H17, there
were larger drawings under the committed facilities. Fitch base
case forecasts that Elior will have EUR168 million of readily
available cash on its balance sheet, backed up by about EUR550
million of undrawn committed facilities, which is more than
enough to cover minimal short-term liquidity requirements.


DEMIRE DEUTSCHE: Moody's Assigns Ba2 Corporate Family Rating
Moody's Investors Service has assigned a definitive Ba2 corporate
family rating (CFR) to DEMIRE Deutsche Mittelstand Real Estate AG
(DEMIRE), a publicly-listed commercial real estate company based
in Germany. Concurrently, Moody's has assigned a definitive Ba2
rating DEMIRE's EUR270 million 2.875% senior unsecured notes
maturing 2022. The outlook on the ratings is stable.


Moody's definitive CFR on DEMIRE and the rating on its debt
obligation follows the company's completion of its EUR270 million
bond issuance, which was announced on July 12, 2017. The final
terms and conditions are consistent with Moody's expectations.

The provisional ratings were assigned on July 10, 2017, and
Moody's rating rationale was set out in a press release published
on the same day.

The proceeds from the bond will mainly be used for refinancing
part of the company's outstanding secured debt. This will
lengthen the company's debt maturity profile, decrease borrowing
costs and increase its unencumbered asset pool.


The stable outlook reflects Moody's expectations that the company
will maintain leverage, as measured by Moody's adjusted debt /
real estate gross assets, below 60%. The outlook also reflects
Moody's positive views on the German commercial real estate
market and ongoing favourable German bank lending environment.


DEMIRE is weakly positioned in the Ba2 rating category. However,
a rating upgrade could result from a successful increase in
occupancy rate in its value-add portfolio and an expansion of the
asset portfolio if substantially funded with equity, resulting in
an overall decline of leverage. An upgrade would also require a
reduction in leverage towards 50% Moody's adjusted debt / gross
assets, the development of a further track record operating with
the current portfolio and a fixed charge coverage (FCC) of above
2.5x on a sustainable basis.


The rating could come under pressure if the company fails to de-
lever from current levels of around 60% Moody's adjusted debt /
gross assets, or fixed charge coverage remained below 2.0x on a
sustained basis, and/or if there is a material deterioration in
the German commercial real estate market fundamentals or a sharp
weakening in the currently very accommodating German bank lending
market. The rating could also come under pressure if the asset
quality within the portfolio deteriorated and/or if the vacancy
rate on the existing portfolio increased.


The principal methodology used in these ratings was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.

DEMIRE is a publicly-listed commercial real estate company with
focus on office (68% of asset portfolio as of 1Q2017), retail
(24%) and logistics properties (5%) in secondary locations across
Germany. As of March 31, 2017, the company's portfolio comprised
98 single properties with a total lettable floor space of
approximately one million square meters and an aggregated
portfolio value of EUR994 million. The weighted average lease
term (WALT) amounted to 5.3 years. As of LTM March 2017, the
company generated rental income of EUR74 million and had 78
employees as of March 31, 2017. The company is listed on the
Frankfurt stock exchange with a market capitalization of EUR200
million as of July 17, 2017.


MOL HUNGARIAN: S&P Affirms 'BB+' CCR, Revises Outlook to Pos.
S&P Global Ratings affirmed its 'BB+' long-term corporate credit
rating on MOL Hungarian Oil and Gas PLC and revised the outlook
to positive from stable.

S&P said, "We also affirmed our 'BB+' issue rating on MOL's
senior unsecured bonds.

"The outlook revision to positive recognizes our assessment of
MOL's strong performance, supported by above-average refining
margins, and the company's success in rebalancing its costs.
MOL's FFO/debt is currently close to 47%-48% and is set to
strengthen further as the company generates positive cash flow
after capital expenditures (capex) and dividends.

"The positive outlook reflects the likelihood that we could raise
the rating to 'BBB-' if MOL's credit metrics continue to
strengthen on the back of robust performance and positive free
cash flow generation. To support an upgrade we would also expect
the company to maintain a conservative financial policy, with
dividend payments not exceeding the amount of free operating cash

"We could raise the rating if the rolling-12-months FFO/debt
ratio improves to about 55% and is maintained at about 60% on
average through the cycle, while the company continues to
generate materially positive discretionary cash flow. Given that
refining and petrochemicals margins are currently above our
assumptions, we believe the company could be fairly close to this
level already toward the end of 2017, which could unlock the
upside potential.

An upgrade could also be achieved if we were to see MOL's
business as stronger, which could happen if MOL were to address
the issue of declining production post 2020 by acquiring
additional reserves while maintaining solid credit metrics, such
as FFO/debt of about 45% on average. Positive resolution of the
conflict with Croatian authorities related to its subsidiary INA
could also support achievement of this goal, although the terms
of the potential agreement would be important.

"We could revise the outlook to stable if performance were to
weaken because of deterioration of refining and petrochemicals
margins, or if the company were to increase debt materially from
the current level due to acquisitions or financial policy
decisions not sufficiently compensated by related improvement in
business risk. Although we currently see it as unlikely, if the
resolution to the INA conflict is very unfavorable to MOL, such
as the asset expropriation, this could also dilute the upside


ALITALIA SPA: Ryanair Makes "Non-Binding" Offer
BBC News reports that budget airline Ryanair says it has made a
"non-binding offer" for loss-making Italian carrier Alitalia.

In May, Alitalia filed to be put into special administration for
the second time since 2008, BBC recounts.  It will now be
restructured, sold off or wound up, BBC notes.

On July 21, reports said Alitalia had received about 10 non-
binding offers, BBC relates.

In June, Ryanair chief executive Michael O'Leary said that if the
carrier did decide to invest in Alitalia then it would look to
acquire a majority stake, BBC relays.

About 18 firms initially interested in a potential purchase were
reportedly given access to Alitalia's financial figures, and non-
binding offers had to be submitted by the end of last week,
BBC discloses.

Those interested in making binding offers have until October to
do so, BBC states.

However, if no buyer comes forward then administrators will be
faced with the prospect of winding up Alitalia, which is 49%-
owned by Gulf airline Etihad, according to BBC.

                         About Alitalia

Alitalia - Societa Aerea Italiana S.p.A., is the flag carrier of
Italy.  Alitalia operates 123 aircraft with approximately 4,200
flights weekly to 94 destinations, including 26 destinations in
Italy and 68 destinations outside of Italy.  It has a strong
global presence, flying within Europe as well as to cities across
North America, South America, Africa, Asia and the Middle East.
During 2016, the Debtor provided passenger service to
approximately 22.6 million passengers.  Its air freight business
also is substantial, having carried over 74,000 tons in 2016.
Alitalia is a member of the SkyTeam alliance, participating with
other member airlines in issuing tickets, code-share flights,
mileage programs and other similar services.

Alitalia previously navigated its way through a successful
restructuring.  After filing for bankruptcy protection in 2008,
Alitalia found additional investors, acquired rival airline Air
One, and re-emerged as Italy's leading airline in early 2009.

Alitalia was the subject of a bail-out in 2014 by means of a
significant capital injection from Etihad Airways, with goals of
achieving profitability during 2017.

After labor unions representing Alitalia workers rejected a plan
that called for job reductions and pay cuts in April 2017, and
the refusal of Etihad Airways to invest additional capital,
Alitalia filed for extraordinary administration proceedings on
May 2, 2017.

On June 12, 2017, Alitalia filed a Chapter 15 bankruptcy petition
in Manhattan, New York, in the U.S. (Bankr. S.D.N.Y. Case No.
17-11618) to seek recognition of the Italian insolvency
proceedings and protect its assets from legal action or creditor
collection efforts in the U.S.  The Hon. Sean H. Lane is the case
judge in the U.S. case.  Dr. Luigi Gubitosi, Prof. Enrico Laghi,
and Prof. Stefano Paleari are the foreign representatives
authorized to sign the Chapter 15 petition.  Madlyn Gleich
Primoff, Esq., Freshfields Bruckhaus Deringer US LLP, is the U.S.
counsel to the Foreign Representatives.

BORMIOLI ROCCO: S&P Affirms 'B' CCR, Revises Outlook to Negative
S&P Global Ratings said it has revised its outlook to negative
from stable on Bormioli Rocco Holdings S.A., an Italian
manufacturer of pharmaceutical packaging and tableware solutions.
At the same time, S&P affirmed its 'B' long-term corporate credit
rating on the company.

S&P said, "We also affirmed our 'B' issue ratings on Bormioli
Rocco Holdings' EUR250 million senior secured notes due in August

"The ratings affirmation reflects our view of the transaction
being supportive of our ongoing liquidity assessment. We see the
disposal as a credible plan to address the upcoming debt
maturities, which would otherwise have weighed on the ratings
over the absence of any committed refinancing plans.

"The negative outlook reflects the tightening liquidity position
in the event of the sale not going through in the next six
months. We think that if the transaction is not completed over
the next six months, the company would face an increasingly tight
window to refinance its senior secured facilities maturing in
August 2018 in a timely manner. These facilities currently
comprise the majority of the group's capital structure."

Bormioli Rocco Holdings has signed two separate agreements to
sell its pharmaceutical and tableware business. S&P expects
Bormioli Rocco Holdings to be able to redeem the maturing debt in
full on the successful sale of its pharmaceutical business to
funds advised by Triton and its tableware business to Bormioli
Luigi. The sale is expected to be completed over the next three-
to-six months. Should the transaction go ahead as planned,
Bormioli Rocco Holdings has stated its intention to use the
proceeds to repay the EUR250 million senior secured notes.
Nevertheless, there are no committed backup plans currently in
place to refinance the group's debt should the sale fall through.

The negative outlook reflects Bormioli Rocco Holdings' vulnerable
position to address upcoming risk in the absence of the timely
completion of the disposal due to inherent transaction risks and
timing uncertainties. S&P said, "Nevertheless, in our base case,
we consider that the deal will most likely be completed and the
maturing debt will be repaid with the proceeds from the sale.

"We could revise the outlook back to stable if the sale is
completed successfully and in a timely manner, and the
transaction proceeds have redeemed the senior secured notes in
advance of their maturity. We could also revise the outlook if
the company enacts alternative financing plans for the upcoming

"We could downgrade Bormioli Rocco Holdings if it fails to reach
a final sale agreement over the following six months, having no
committed alternative plans to refinance the maturing debt. We
could also consider lowering the ratings if the company's
profitability became substantially weaker than our current
expectations, for example, due to any renewed production issues,
which would result in deteriorating credit metrics and lower the
likelihood of a successful refinancing."


ALTYN BANK: Moody's Affirms Ba2 Deposit Ratings, Outlook Stable
Moody's Investors Service has upgraded Altyn Bank JSC's (Altyn)
baseline credit assessment (BCA) and Adjusted BCA to ba2 from ba3
and affirmed the bank's Ba2/Not Prime long- and short-term
deposit ratings. The outlook on the Ba2 long-term deposit ratings
was changed to stable from negative. The rating agency also
affirmed the bank's LT/ST Counterparty Risk Assessments of
Ba1(cr)/ Not Prime(cr).


The upgrade of Altyn's BCA by one notch is driven by the expected
change of the controlling shareholder after Halyk Savings Bank of
Kazakhstan (Halyk; LT bank deposits Ba1 Negative, BCA ba3)
announced that it agreed to sell its 60% stake in Altyn to China
CITIC Bank Corporation Limited (CITIC Bank; LT bank deposits Baa2
Stable, BCA ba2) and its partner, China Shuangwei Investment
Co.(not rated). Being a fully-owned domestic subsidiary of Hayk
until recently, Altyn Bank's BCA was constrained by contingent
risks associated with potential capital or liquidity
reallocations from subsidiary to its parent that, in case of
weaknesses at the parent, could have impaired Altyn's very strong
financial metrics. After the change of the control to a bank with
higher ratings these contingent risks have been reduced, lifting
Altyn's BCA constrain.

Altyn's BCA upgrade also reflects the bank's historically strong
and highly resilient financial profile, owing to: (1) the bank's
low leverage (Moody's adjusted Tangible Common Equity % Risk
Weighted assets at 28% as of 31 December 2016); (2) low-risk and
highly liquid asset profile with a relatively low level of
problem loans (2.1% of gross loans as of 31 December 2016) and
the majority of assets comprising cash and investments into
Kazakhstan sovereign bonds; as well as (3) historically strong
and sustainable profitability metrics with Net Income to Tangible
Assets above 2% over the last three years. These strong and
resilient financial metrics, combined with the elimination of the
above-mentioned constrain factor, enabled Moody's to upgrade
Altyn's BCA by one notch and position it at the same level with
the BCA of its new controlling parent, CITIC bank. Any failure to
implement the planned acquisition, that is at an enhanced stage,
could again exert downward rating pressure on Altyn's BCA.

Along with the BCA upgrade, Moody's eliminated moderate
assumptions of government support for Altyn and replaced these
with moderate assumptions of affiliate support from CITIC Bank.
These affiliate assumptions are based on the expectation that the
operating control of the acquired bank will be taken over by
CITIC Bank. The assumptions also take into account the strategic
importance of the acquired asset for the Chinese bank in serving
its domestic clients in the neighboring region. While
incorporating affiliate support assumption, these no longer
translate into any rating uplift as, following Altyn's BCA
upgrade, baseline credit assessments of the subsidiary and the
controlling parent are now at the same level of ba2. Therefore,
Moody's affirmed Altyn's Ba2 long-term deposit ratings.


Following elimination of the government support assumptions and
Altyn's weakening ties with Halyk, the correlation of Altyn's
long-term ratings with its previous controlling parent, as well
as with the ratings of the Government of Kazakhstan, have
substantially decreased. Therefore, the negative outlook, that
previously was in line with the negative outlook assigned to
Halyk and the sovereign, was changed to stable, in line with the
stable outlook assigned to the bank's future controlling parent.


Issuer: Altyn Bank JSC


-- Adjusted Baseline Credit Assessment, Upgraded to ba2 from ba3

-- Baseline Credit Assessment, Upgraded to ba2 from ba3


-- LT Bank Deposits (Local & Foreign Currency), Affirmed Ba2,
    Outlook Changed To Stable From Negative

-- ST Bank Deposits (Local & Foreign Currency), Affirmed NP

-- NSR LT Bank Deposits (Local Currency), Affirmed

-- LT Counterparty Risk Assessment, Affirmed Ba1(cr)

-- ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

-- Outlook, Changed To Stable From Negative


The principal methodology used in these ratings was Banks
published in January 2016.

Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".za" for South Africa.
For further information on Moody's approach to national scale
credit ratings, please refer to Moody's Credit rating Methodology
published in May 2016 entitled "Mapping National Scale Ratings
from Global Scale Ratings". While NSRs have no inherent absolute
meaning in terms of default risk or expected loss, a historical
probability of default consistent with a given NSR can be
inferred from the GSR to which it maps back at that particular
point in time. For information on the historical default rates
associated with different global scale rating categories over
different investment horizons.

HALYK SAVINGS: Qazkom Deal to Impact Capital Ratios, Moody's Says
The acquisition by Halyk Savings Bank of Kazakhstan (Halyk; LT
bank deposits Ba1 Negative) of its insolvent rival
Kazkommertsbank (Qazkom; LT bank deposits Ba2 Negative) will
impact the group's core capital ratios, before the bank's strong
earnings restore its capital levels, says Moody's Investors
Service in a report.

The report, "Halyk Savings Bank of Kazakhstan - Takeover of
Insolvent Rival Trades Short-term Pain For Long-term Gain," is
now available on The research is an update to the
markets and does not constitute a rating action.

"This acquisition almost doubles the size of Halyk Group's
balance sheet and increases risk-weighted assets by about 50
percent," says Semyon Isakov, a Vice President at Moody's.
"However, Moody's expects this capital erosion to be offset by
Halyk's very strong ongoing earnings."

After the purchase, Halyk's core capital, as measured by tangible
common equity and adjusted for global comparability, will fall to
around 13.5% of risk-weighted assets by the end of 2017 from a
very strong 18.7% at the end of 2016. Nonetheless, the bank's
earnings will help it replenish capital levels to its historical
average of around 16% by the end of 2018.

Driven by its strong loan book and safe-haven status, Halyk's net
income rose by 68% to KZT38.5 billion in the first quarter this
year. Moody's estimates that it is on track to report a 15 %
increase in net profit to KZT150 billion for the full year,
followed by a further increase of the same magnitude in 2018.

Halyk is also in the process of selling its 60% stake in a highly
profitable local subsidiary Altyn Bank JSC (LT bank deposits Ba2
stable). The sale will reduce Halyk's risk-weighted assets and
will marginally increase the group's capital.

The risk of the acquisition is mitigated by a government bailout
of BTA Bank, Qazkom's largest debtor. The bailout allowed BTA to
repay an outstanding loan of KZT2.4 trillion (US$7.5 billion). A
further capital injection from Halyk, as well as an additional
gain from a restructured government loan replenished Qazkom's
remaining capital and restored its solvency.


CANYON COS: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
S&P Global Ratings affirming its 'B' corporate credit rating on
Canyon Cos. S.a.r.l. The rating outlook remains stable.

S&P said, "At the same time, we lowered our issue-level rating on
the company's senior secured first-lien term-loan to 'B' from
'B+' and revised the recovery rating to '3' from '2'. The '3'
recovery rating indicates our expectation for significant
recovery (50%-0%; rounded estimate: 65%) of principal in the
event of payment default.

"We also withdrew our ratings on the company's senior secured
second-lien facility."

Canyon will use the proceeds from the $131 million add-on to its
first-lien credit facility and the $325 million capital
contribution from its merger with Capitol Acquisition Corp. III
to repay the second-lien facility.

The rating actions reflect Canyon's increased first-lien debt in
its capital structure and reduced recovery prospects that

S&P said, "The outlook reflects our expectation that Canyon's
leverage will decline to the low-6.0x area, its free operating
cash flow (FOCF) to debt will increase to about 6%-7% in 2017,
and it will successfully integrate its acquisitions and realize
expected synergies.

"We could lower the corporate credit rating if the company's
operating performance deteriorates such that we expect its
leverage to remain elevated in the high-6.0x area or if its cash
flow deteriorates such that FOCF to debt declines below 5% on a
sustained basis. These scenarios could occur if Canyon's
operational performance deteriorates such that its EBITDA growth
is significantly lower than we expect because the company, for
example, is unable to effectively integrate its acquisitions and
realize expect synergies.

"We could raise the rating if the company is able to lower
leverage below 5.0x on a sustained basis while maintaining
adequate liquidity. This could occur through continued debt pay
down or successful cross-selling strategies that materially
increase EBITDA and cash flow."

JSL EUROPE: S&P Assigns 'BB' Rating to $325MM Sr. Unsecured Notes
S&P Global Ratings has assigned its 'BB' global scale issue-level
rating to JSL Europe's proposed senior unsecured notes of $325
million. S&P said, "In addition, we assigned a recovery rating of
'3', with a recovery expectation of about 60%. The issue rating
is on CreditWatch with negative implication, mirroring that on
the issuer's parent company, JSL S.A. (JSL; BB/Watch Neg/--),
that reflects the cap of the rating at the sovereign level."

The notes will have a seven-year bullet maturity, and JSL will
fully and unconditionally guarantee them. Therefore, the rating
on the notes is the same as the corporate credit rating on the
parent company. S&P said, "We expect the proposed issuance to
have low impact on JSL's consolidated leverage, and help improve
the debt maturity profile, because the company will use the
proceeds to repay part of the debt maturing over the next two
years, and for general corporate purposes."


Key analytical factors

S&P said, "The 'BB' rating on JSL Europe's proposed senior
unsecured notes is at the same level as the corporate credit
rating on JSL. This reflects that the recovery rating on
unsecured debt of '3' remains unchanged, indicating our
expectation for meaningful recovery of around 60% for JSL's
senior unsecured debts in a default scenario. Our simulated
default scenario encompasses a combination of high delinquency
rates on JSL's portfolio of contracts, a severe weakening of the
Brazilian used car market (resulting in lower cash generation),
and a significant increase in interest rates.

"We have valued the company on a going-concern basis because
under a default scenario, we expect JSL to be restructured,
generating higher value to creditors. We value the company using
the discrete asset valuation approach, with an overall 45%
haircut to JSL's asset base, arriving at a stressed valuation of
about R$4.8 billion."

Simulated default scenario

Simulated year of default: 2022

-- S&P applies a 15% haircut to Movida's car fleet because JSL
    would need to provide a discount to liquidate those assets
    under a stress scenario;
-- Dilution rate of 20% and then a haircut of 20% in other
    vehicles, simulating potential fall in JSL operations until
    default, followed by a discount to liquidate those assets
    under stress scenario;
-- Dilution rate of 20% and then a haircut of 30% in
    receivables, simulating potential fall in clients' renewal
-- A 100% haircut to the company's cash position because JSL
    would consume it up to default point; and
-- The above premises lead to a general haircut of about 45% to
    JSL' total asset base value, with estimated gross enterprise
    value at emergence of R$4.8 billion.

Simplified waterfall

Net enterprise after administrative costs: R$4.6 billion
Debt at subsidiaries: R$1.7 billion
Priority and secured debt at the parent level (equipment and
vehicles financing): R$730 million
Unsecured debt: R$3.7 billion
Expected recovery of unsecured debt: around 60%


  JSL S.A.
    Corporate credit rating      BB/Watch Neg/--

  Ratings Assigned

  JSL Europe
    Senior unsecured             BB/Watch Neg
     Recovery rating             3(60%)

JSL EUROPE: Fitch Assigns 'BB(EXP)' Rating to US$325MM Notes
Fitch Ratings has assigned a 'BB(EXP)' rating to the proposed
USD325 million senior unsecured notes due in 2024 to be issued by
JSL Europe. JSL S.A (JSL) will unconditionally and irrevocably
guarantee the issuance. The bond will not be guaranteed by Movida
Participacoes S.A., JSL's 65.6% owned car rental subsidiary. This
subsidiary accounts for 26% of the company's consolidated EBITDA
and 19% of its debt.

Proceeds from these notes will be used for debt refinancing and
for general corporate purposes. Fitch currently rates JSL's Long-
Term Foreign and Local Currency Issuer Default Ratings (IDR)
'BB'/Stable Outlook. A full list of rating follows at the end of
this release.

JSL's ratings reflect its strong business profile, supported by a
leading position in the Brazilian logistics industry and
diversified portfolio of products. The company's cash flow
generation has been improving despite the recession in Brazil.

Fitch's base case scenario projects that JSL's leverage ratio, as
measured by FFO Adjusted Leverage, will remain below 2.5x in the
next two years. Fitch expects JSL to pursue managed growth for
Movida and does not incorporate material dividends from this
subsidiary in its projections.


Prominent Market Position and Diversified Portfolio

JSL has a leading position in the Brazilian logistics industry
with a diversified portfolio of services with relevant presence
in multiple sectors of the economy. The company's services
include: supply chain management (38% of its gross revenue), car
rental and fleet management (33%), outsourcing of fleet and
equipment (16%), passenger transportation (8%) and general cargo
transportation (5%). JSL's strong market position, coupled with
long-term contracts for most of its revenues, minimizes its
exposure to more volatile economic cycles. The company's
significant operating scale has made it an important purchaser of
light vehicles and trucks, giving it a significant amount of
bargaining power versus other competitors in the industry.

Solid Operating Cash Flow Generation

JSL has been efficiently expanding its business profitability
while maintaining solid growth. The integration of its business
and cross-selling opportunities has supported gains of scale,
benefiting its operating margins. Between 2013 and the latest-12-
month period (LTM) ended March 31, 2017, JSL's net revenue
increased by 43%, to BRL6.8 billion. During the same period, the
company's EBITDA grew to BRL1.1 billion from BRL705 million while
its funds from operations (FFO) rose to BRL2.0 billion from
BRL892 million.

More Rational Capex Growth to Alleviate FCF

BRL2.6 billion of gross capital expenditures led to a negative
FCF of BRL332 million during the LTM ended March 31, 2017.

FCF is expected to remain negative in the range of BRL100 million
to BRL200 million in the next two years. JSL has the flexibility
to improve FCF by reducing growth capex, as most of its capital
investments are geared toward increasing the size of its
fleet/equipment and are linked to specific contracts. Considering
only renewal capex, JSL's operating cash flow generation is
sufficient to support these investments. Excluding growth capex,
JSL generated BRL935 million of positive FCF during LTM March 31,

Moderate Leverage

JSL's leverage, as measured by FFO adjusted leverage, was 2.4x as
of LTM March 31, 2017. This FFO ratio is considered low for the
rating category. Fitch does not expect a material reduction in
the near term with leverage expected to be around 2.3x in 2017.
Fitch's calculation of EBITDA does not add-back the non-cash cost
of the vehicles sold. As a result, leverage as measured by EBITDA
is higher than leverage measured by FFO. In Fitch's base case,
JSL's net debt to EBITDA ratio will remain around 4.0x to 4.5x in
the next few years.


Given the nature of its business, Fitch believes JSL has an
above-average ability versus its 'BB' rated peers to post free
cash flow (FCF) generation, given its flexibility to postpone
capital expenditures related to new vehicles. The company's
relatively higher leverage and weaker financial flexibility are
key differentiators to Localiza Rent a Car S.A (Long-term Foreign
Currency IDR BB+; Local Currency IDR 'BBB'; National Long-Term
Rating 'AAA(bra)').


-- Mid-single-digit revenue growth in 2017;
-- FFO margins at around 23%;
-- Net Capex at around BRL650 million in the next two years;
-- Cash balance remains sound compared to short-term debt;
-- Dividends at 25% net income;
-- No large-scale M&A activity.


Positive: Future developments that could lead to a positive
rating action:

-- FFO Adjusted Net Leverage below 2.0x on a sustained basis;
-- FFO Margin above 27%, on a sustained basis;
-- Solid and consistent operating results from its retail rent a
    car business (Movida).

Negative: Future developments that may, individually or
collectively, lead to a negative rating action:

-- FFO net adjusted leverage consistently above 3.0x;
-- Deterioration of sound liquidity compared to short-term debt,
    leading to refinancing risk exposure.
-- Deterioration in Used Car Sale in Brazil and/or in the
    coverage ratio fleet value-to-net value to below 1.0x;
-- Large debt-funded M&A acquisition or entering into a new
    business in the logistics sector that adversely impacts JSL's
    capital structure on a sustained basis or increases its
    business risk exposure;
-- Secured debt relative to FFO above 2.0x could lead to a
    downgrade of the unsecured debt.


JSL's has a solid consolidated liquidity position, recently
benefited by the BRL506 million raised by Movida, which is not a
guarantor of the bond, during its recent IPO. On a consolidated
basis, JSL has BRL1.4 billion of cash and BRL1.6 billion of
short-term debt. Excluding Movida's cash and short-term debt,
JSL's cash relative to liquidity position is adequate with BRL867
million of cash and BRL975 million of short-term debt.

Liquidity could easily be enhanced by debt that would be
collateralized by vehicles. The market value of the fleet managed
by JSL is BRL5.3 billion. Of this figure BRL2.3 billion relates
to vehicles held outside of Movida. Only 21% of the value of
these vehicles has been used as collateral for loans.

JSL has a recurring need for debt refinancing, since its debt
schedule amortization is still concentrated in the next three
years. Up until year-end 2018 JSL has BRL2.7 billion of debt
coming due (BRL1.8 billion excluding Movida).

As of March 31, 2017, JSL reported total debt of BRL6.3 billion
(BRL5.1 billion excluding Movida).

Currently, about 26% of JSL's debt is secured. The company's debt
profile is mainly composed of FINAME operations (20%), banking
credit lines (28%), debentures (24%), and leasing operations


Fitch rates JSL as follows:

-- Long-Term Foreign Currency IDR 'BB';
-- Long-Term Local currency IDR 'BB';
-- National Long-Term Rating 'AA-(bra)';
-- Local Debentures 'AA-(bra)'.

The Rating Outlook is Stable.

ROBERTSHAW HOLDINGS: S&P Assigns 'B' CCR, Outlook Stable
S&P Global Ratings assigned its 'B' corporate credit rating to
Robertshaw Holdings S.a.r.l, the Luxembourg-domiciled indirect
parent of Robertshaw Controls Co., an Itasca, Ill.-based maker of
components and control systems in home appliances, commercial
products, electric vehicles, and other applications.

S&P said, "In addition, we assigned our 'B' issue-level rating
and '3' recovery rating to financing subsidiary Robertshaw U.S.
Holding Corp.'s proposed $440 million first-lien term loan due
2024. The '3' recovery rating indicates our expectation for
meaningful (50%-70%; rounded estimate: 65%) recovery for lenders
in the event of a payment default. We also assigned our 'CCC+'
issue-level rating and '6' recovery rating to its proposed $140
million second-lien term loan due 2025. The '6' recovery rating
indicates our expectation for negligible (0%-10%; rounded
estimate: 5%) recovery for lenders in the event of a payment

The ABL facility, which will be reduced to $50 million from $65
million in conjunction with this transaction, is unrated.

Robertshaw Controls' ratings reflect its relatively high debt
leverage and dependence on cyclical housing starts and consumer
spending levels, which influence the demand of the home appliance
and commercial applications that Robertshaw's products serve. The
roughly $12 billion industry for its valves, controls, energy
regulators, thermostats, and other products is fragmented, with
roughly 80% of industry sales generated by either companies with
less than $100 million in revenue or from original equipment
manufacturers (OEMs). The industry fragmentation provides an
opportune environment for consolidation, and debt-funded bolt-on
acquisitions could be likely in future years. Robertshaw's scale
and scope of operations are relatively small, but are somewhat
comparable to those of the specific divisions of the large
corporate conglomerates with which it competes. The company's
customer concentration is quite high, with largest customer
Whirlpool Corp. accounting for almost a quarter of its sales and
its top five customers aggregating to over 45% of sales. These
risks are partially offset by the company's long-standing
customer relationships, stable (and in some cases contractually-
specified) market shares, and leading market positions in its
segments. It also benefits from an established brand and a good
reputation, a global footprint, and disciplined cost focus.
Robertshaw employs roughly 260 engineers and holds over 200
patents, which highlights the company's expertise and ability to
develop new products. Robertshaw is a portfolio company
offinancial sponsor Sun Capital Partners, and we expect the
company to maintainan adjusted debt-to-EBITDA ratio between 5x
and 7x.

"The stable outlook on Robertshaw reflects our expectation that
new home starts and consumer spending patterns allow for steady
growth of home appliances, HVAC units, and electric vehicles,
providing demand for the company's valves and control products.
The company's footprint optimization and continued focus on
procurement and other cost savings should support its operating
performance. This should allow the company to maintain an
adjusted debt-to-EBITDA ratio below 7x. The company has a
demonstrated track record of enhancing its growth via bolt-on
acquisitions and we expect that it will continue to pursue small
bolt-on acquisitions as part of its growth strategy. Robertshaw
is owned by financial sponsor Sun Capital Partners, so the
company may continue to provide periodic debt-funded returns to
its equity holders, though given the upcoming dividend
distribution as part of this transaction (the second in the last
two years), we do not anticipate additional meaningful dividends
next year.

"We could lower our ratings on Robertshaw if a significant
decline in its earnings, or a large debt-financed acquisition or
similar shareholder return causes its total debt-to-EBITDA to
exceed 7x without clear prospects for recovery. This could occur
if the company faces operational challenges following unexpected
volume declines from reduced sales of home and commercial
appliances, the loss of key customers like Whirlpool and
Electrolux, an inability to win business on new product
platforms, or challenges managing its cost structure. Based on
our downside scenario, this could occur if Robertshaw's volumes
and operating margins each weaken by more than 200 basis points

"While Robertshaw's credit measures could improve meaningfully if
its electric vehicle sales growth expectations come to fruition
while its cost structure remains manageable, our assessment of
Sun Capital Partners' financial policies is key to determining
whether a rating upgrade is warranted. For a modest upgrade, the
company would need to commit to -- and demonstrate a track record
of -- operating with a debt-to-EBITDA metric of 4x-5x, a FFO-to-
debt ratio of near 20%, and a consistently positive free cash
flow-to-debt ratio with no prospects for near-term material
deterioration. The likelihood for any additional upgrades is more
remote and would likely depend on whether the company can
meaningfully strengthen its business risk profile by enhancing
its scale, increasing its market share, or improving its pricing
and operating efficiencies."


CAIRN CLO V: S&P Assigns B- (sf) Rating to Class F-R Notes
S&P Global Ratings assigned its credit ratings to Cairn CLO V
B.V.'s class A-R, B-1-R, B-2-R, C-R, D-R, E-R, and F-R senior
secured notes. At closing, the issuer also issued unrated
subordinated notes.

The ratings assigned to Cairn CLO V's notes reflect S&P's
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
-- 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
-- The transaction's counterparty risks.
-- The transaction is a cash flow collateralized debt obligation
    (CLO), securitizing a portfolio of primarily senior secured
    loans granted to speculative-grade corporates. Cairn Loan
    Investments LLP manages the transaction. The portfolio is
    100% ramped up as of the closing date.
-- Under the transaction documents, the rated notes pay
    quarterly interest unless a frequency switch event occurs.
    Following this, the notes permanently switch to semiannual
    interest payments.
-- The portfolio's reinvestment period ends four years after
    closing, and the portfolio's maximum average maturity date is
    eight years after closing.

S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average 'B'
rating. We consider that the portfolio on the effective date will
be well-diversified, primarily comprising broadly syndicated
speculative-grade senior secured term loans and senior
secured bonds. Therefore, we have conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
CDOs (see "Global Methodologies And Assumptions For Corporate
Cash Flow And Synthetic CDOs," published on Aug. 8, 2016).

"In our cash flow analysis, we used the EUR300 million target par
amount, the covenanted weighted-average spread (3.84%), the
covenanted weighted-average coupon (5.25%), the covenanted
weighted-average recovery rate of 36.00% at the 'AAA' rating
level, and the current weighted-average recovery rates at each
rating level below 'AAA'. 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.

"We consider that the transaction's documented counterparty
replacement and remedy mechanisms adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria (see "Counterparty Risk Framework Methodology And
Assumptions," published on June 25, 2013).

"Following the application of our structured finance ratings
above the sovereign criteria, we consider the transaction's
exposure to country risk to be limited at the assigned rating
levels, as the exposure to individual sovereigns does not exceed
the diversification thresholds outlined in our criteria (see
"Ratings Above The Sovereign - Structured Finance: Methodology
And Assumptions," published on Aug. 8, 2016). Furthermore, asset
concentration in a country rated 'A-' or below is limited and
does not constrain our ratings.

"The transaction's legal structure is bankruptcy remote, in line
with our legal criteria (see "Structured Finance: Asset Isolation
And Special-Purpose Entity Methodology," published on March 29,

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for each class
of notes."


  Cairn CLO V B.V.
  EUR311.45 mil secured fixed-rate and floating-rate notes
  Class          Rating             (mil, EUR)
  A-R            AAA (sf)              183.80
  B-1-R          AA (sf)                25.00
  B-2-R          AA (sf)                 7.00
  C-R            A (sf)                 20.50
  D-R            BBB (sf)               15.00
  E-R            BB (sf)                20.00
  F-R            B- (sf)                 8.00
  Sub            NR                     32.15

  NR--Not rated


HIPOTOTTA NO. 5: S&P Raises Rating on Class E Notes to BB+
S&P Global Ratings raised its credit ratings on HipoTotta No. 5
PLC's class A2, C, and E notes. S&P said, "At the same time, we
have affirmed our ratings on the class B, D, and F notes.

"The rating actions follow our credit and cash flow analysis of
the most recent transaction information that we have received as
part of our surveillance review cycle. Our analysis reflects the
application of our European residential loans criteria, our
current counterparty criteria, and our structured finance ratings
above the sovereign (RAS) criteria (see "Methodology And
Assumptions: Assessing Pools Of European Residential Loans,
"published on Dec. 23, 2016, "Counterparty Risk Framework
Methodology And Assumptions," published on June 25, 2013, and
"Ratings Above The Sovereign -Structured Finance: Methodology And
Assumptions," published on Aug. 8, 2016).

"The asset performance has stabilized since our previous review
and is on average stronger than our Portuguese residential
mortgage-backed securities (RMBS) index (see "Ratings Affirmed In
Portuguese RMBS Transaction HipoTotta No. 5 On Application Of
Updated Portuguese RMBS Criteria," published on June29, 2015 and
"Portuguese RMBS Index Report Q1 2017," published on June 1,
2017). As of February 2017, total delinquencies were at 1.50%
compared with1.68% at our previous review. Prepayment levels
remain low and the transaction is unlikely to pay down
significantly in the near term, in our opinion.

"We have observed a decrease in the weighted-average foreclosure
frequency(WAFF) and a decrease in the weighted-average loss
severity (WALS) for each rating level compared with our previous

  Rating level     WAFF (%)   WALS (%)
  AAA                 11.37      14.53
  AA                   8.50      11.12
  A                    6.93       5.66
  BBB                  5.08       3.38
  BB                   3.29       2.14
  B                    2.74       2.00

S&P said, "The large decrease in the WAFF and WALS is primarily
due to our error in previously treating the underlying properties
securing the mortgages as commercial properties instead of
residential properties. Our European residential loans criteria
consider that nonresidential loans are more likely to default
than residential loans and therefore apply adjustments to the
foreclosure frequency and loss severity for nonresidential
properties. Considering the properties as residential in our
analysis will result in us no longer applying these adjustments."

The swap counterparty, Banco Santander S.A. (A-/Stable/A-2), has
not complied with the swap agreement's terms (by either posting
collateral, obtaining a guarantor, or replacing itself) since
becoming an ineligible counterparty. S&P said, "Therefore, our
ratings on the class B, C, D, E, and F notes are capped by our
long-term issuer credit rating (ICR) on Banco Santander. The
class A2 notes have sufficient credit enhancement to withstand
the stresses in the absence of the swap and are therefore not
capped by our rating on Banco Santander. Our rating on the class
A2 notes is capped at 'A (sf)' due to the replacement language in
the issuer's bank account agreement.

"Our ratings in this transaction are constrained by our
unsolicited foreign currency long-term sovereign rating on the
Republic of Portugal (BB+/Stable/B) due to the application of our
RAS criteria.

"Under our RAS criteria, we applied a hypothetical sovereign
default stress test to determine whether a tranche has sufficient
credit and structural support to withstand a sovereign default
and so repay timely interest and principal by legal final

"Our RAS criteria designate the country risk sensitivity for RMBS
as moderate. Under our RAS criteria, this transaction's notes can
therefore be rated four notches above the sovereign rating, if
they have sufficient credit enhancement to pass a minimum of a
severe stress. In addition, the class A2 notes satisfy the
conditions that permit a maximum of six notches of uplift (two
additional notches of uplift) subject to credit enhancement being
sufficient to pass an extreme stress (see "Understanding Standard
& Poor's Rating Definitions," published on June 3, 2009).

"Given the transaction's improved credit coverage and stable
performance, the class A2 notes are now able to pass our extreme
RAS analysis stresses and can be rated up to six notches above
our long-term rating on Portugal. However, the application of our
current counterparty criteria to the issuer account bank
agreement caps our rating on the class A2 notes at the 'A' rating
level. We have therefore raised to 'A (sf)' from 'A- (sf)' our
rating on the class A2 notes.

"The class B notes are capped at our long-term ICR on Banco
Santander and can only be rated up to four notches above our
long-term rating on Portugal. We have therefore affirmed our 'A-
(sf)' rating on the class B notes.

"At our previous review, the class C notes did not have
sufficient credit support to withstand a severe stress under our
RAS criteria. Consequently, our rating on the class C notes was
capped at our long-term rating on Portugal. Given the improved
credit coverage, the class C notes now have sufficient credit
support to withstand a severe stress and can be rated up to four
notches above our long-term rating on Portugal. We have therefore
raised to 'A- (sf)' from 'BB+ (sf)' our rating on the class C

"Despite the positive effect of the lower credit coverage on the
class D and E notes, these classes of notes have insufficient
available credit enhancement to withstand a severe stress under
our RAS criteria. Our ratings on the class D and E notes are
therefore capped at our long-term rating on Portugal. We have
therefore affirmed our 'BB+ (sf)' rating on the class D notes and
raised to 'BB+ (sf)' from 'BB- (sf)' our rating on the class E

"The class F notes (the most junior class) are non-asset-backed
and were issued to fund the reserve fund. Given its junior
position in the waterfall and reliance upon excess reserve fund
amounts to pay principal, in our opinion, and in line with our
criteria for assigning 'CCC' category ('CCC+', 'CCC','CCC-')
ratings, the class F notes are dependent upon favorable economic
conditions to pay note interest and principal (see "Criteria For
Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings," published on
Oct. 1, 2012). We have therefore affirmed our 'CCC- (sf)' rating
on the class F notes.

"HipoTotta No. 5 is a Portuguese RMBS transaction, which closed
in March 2007.It securitizes a pool of first-ranking mortgage
loans which Banco Santander Totta, S.A. originated. The mortgage
loans are granted to prime borrowers mainly located in the Lisbon
and North regions."


  Class              Rating
            To                  From

  HipoTotta No. 5 PLC
  EUR2.01 Billion Mortgage-Backed Floating-Rate Notes

  Ratings Raised

  A2        A (sf)              A- (sf)
  C         A- (sf)             BB+ (sf)
  E         BB+ (sf)            BB- (sf)

  Ratings Affirmed

  B         A- (sf)
  D         BB+ (sf)
  F         CCC- (sf)

NOVO BANCO: Senior Bondholders May Reject Debt Deal
Tom Beardsworth and Anabela Reis at Bloomberg News report that
Carlos Costa, governor of the central bank which runs Novo Banco
SA, told parliament this month that he's convinced bondholders
will voluntarily agree to a debt management operation generating
EUR500 million (US$583 million) of new capital.

Finance Minister Mario Centeno said in March senior bondholders
will be asked to accept riskier notes to smooth a sale of Novo
Banco to John Grayken's Lone Star Funds, Bloomberg recounts.

According to Bloomberg, creditors are bristling at demands that
they contribute more money to Novo Banco because they've already
lost a combined EUR4 billion in the three years since its
predecessor Banco Espirito Santo SA failed.

Pacific Investment Management Co. plans to reject any deal that
inflicts more economic losses, Bloomberg relays, citing people
familiar with the matter, who asked not to be identified because
they're not authorized to talk about it.

XAIA and Pimco are among investors suing the Bank of Portugal for
losses when it transferred about EUR2 billion of senior bonds to
a so-called bad bank, Bloomberg discloses.

Separately, Goldman Sachs Group Inc. and Paul Singer's Elliott
Management Corp. have challenged losses on a US$835 million loan,
Bloomberg states.  The cumulative EUR4 billion of losses also
includes EUR1.3 billion of Banco Espirito Santo's junior bonds,
according to Bloomberg.

Portugal, Bloomberg says, is seeking to sell the remnants of what
was once its largest bank by market value to Lone Star
by November.

The central bank moved Banco Espirito Santo's deposits and most
of its assets to Novo Banco after the financial system spent
EUR4.9 billion on a rescue package in August 2014, Bloomberg

The U.S. firm agreed to take a majority stake in Novo Banco by
injecting EUR1 billion, on the condition that bondholders help
strengthen its balance sheet, Bloomberg discloses.

According to Bloomberg, the Bank of Portugal said Portugal's
Resolution Fund will keep a 25% stake and may have to carry out
further capital infusions depending on the performance of a set
of assets.

Jornal Economico reported on July 24 that Novo Banco's bond
exchange will be announced next week, Bloomberg relates.

"The money we're talking about is relatively small, but it's
become a larger thing of who blinks first," Bloomberg quotes
Tom Kinmonth, a credit strategist at ABN Amro Group NV in
Amsterdam, as saying.  "It's more about the principle."

The brinkmanship threatens losses for taxpayers and bondholders,
Bloomberg states.

Regulators may write down Novo Banco's debt as they did last
month with Banco Popular Espanol SA, Filippo Alloatti, a senior
credit analyst at Hermes Investment Management in London, which
decided against buying the notes, as cited by Bloomberg, said.

"The risk is that Lone Star pulls out and the rescue deal
fails," Bloomberg quotes Alloatti as saying.

According to Bloomberg, Bjoern Mahler, an investor at Sparkasse
Bremen, also decided that the standoff between Portugal and
creditors made Novo Banco's debt too risky.

Headquartered in Lisbon, Novo Banco, S.A. provides various
financial products and services to private, corporate, and
institutional customers.

                           *     *     *

As reported in the Troubled Company Reporter-Europe on June 22,
2017, Moody's Investors Service extended its review for downgrade
of the Caa1 long-term deposit and Caa2 senior debt ratings of
Novo Banco, S.A. (Novo Banco) and its supported entities.  The
ratings review was initiated on April 5, 2017, following the
announcement made by the Bank of Portugal on March 31, 2017 that
as part of Novo Banco's sale process, a liability management
exercise (LME) on senior bondholders will be undertaken with the
aim of recapitalizing the bank by at least EUR500 million.

* S&P Places 32 Portuguese RMBS Deals Ratings on Watch Positive
S&P Global Ratings placed on CreditWatch positive its credit
ratings on 32 tranches in nine Portuguese residential mortgage-
backed securities (RMBS) transactions.

S&P said, "Due to an error, in our previous reviews of certain
Portuguese residential mortgage-backed securities (RMBS)
transactions (including those listed below),we treated large
portions or in some cases the entire portfolio as being backed by
mortgages secured against commercial properties when they should
be treated as being backed by mortgages secured against
residential properties.

"Our European residential loans criteria consider that
nonresidential loans are more likely to default than residential
loans and therefore apply adjustments to the foreclosure
frequency and loss severity for nonresidential properties(see
"Methodology And Assumptions: Assessing Pools Of European
Residential Loans," published on Dec. 23, 2016).

"Considering the properties as residential in our analysis will
result in us no longer applying these adjustments and so could
potentially have a positive effect on certain affected ratings.

"Our structured finance ratings above the sovereign (RAS)
criteria classify the sensitivity of these transactions as
moderate (see "Ratings Above The Sovereign - Structured Finance:
Methodology And Assumptions," published on Aug. 8, 2016).
Therefore, we can rate classes of notes in these transactions up
to six notches above our 'BB+' unsolicited foreign currency long-
term sovereign rating on the Republic of Portugal, if certain
conditions are met.

"We have today placed on CreditWatch positive our ratings on 32
tranches in nine Portuguese RMBS transactions, as these tranches
could potentially be positively affected by our revised treatment
of the portfolios and as a result may achieve a higher rating. In
one of those nine transactions, our rating is unchanged on a
single tranche because the tranche already has the highest rating
achievable ('A+') for a Portuguese RMBS transaction under our RAS

"In addition, there are eight other Portuguese RMBS transactions
where we consider that tranches either could not potentially be
affected by our revised analysis, or could only potentially have
been positively affected had they not already had the highest
rating achievable ('A+') for a Portuguese RMBS transaction under
our RAS criteria. Our ratings on all tranches in those
transactions are unchanged.

"For those eight transactions, we are publishing a separate
bulletin with the updated weighted-average foreclosure frequency
and weighted-average loss severity figures under our most recent
revised analysis (see "Ratings Unchanged In Eight Portuguese RMBS
Transactions Following Revised Collateral Assessment," published
on July 19, 2017).

"We will seek to resolve the CreditWatch placements within the
next 90 days, once we have completed further analysis."

A list of the Affected Ratings is available at:


* ROMANIA: Number of Insolvent Companies Up 5% in 1H of 2017
------------------------------------------------------------ reports that the number of insolvent firms in
Romania rose by almost 5% in the first half of this year compared
to the same period last year.

This was the first increase in the last three and a half years,
the report says.

Most of the insolvencies were from Bucharest, Iasi, Bihor,
Constanta, Cluj and Timis, discloses. The
total number of companies that filed for insolvency exceeded
4,670. relates that the number of insolvencies is
again on an upward trend for the first time since 2014, after
previous decreases from semester to semester and from year to
year. By comparison, 4,468 companies filed for insolvency in the
first six months of last year. The number was below the level
recorded in the first half of 2015, of 5,736,


ELEMENT LEASING: S&P Withdraws 'B/B' Counterparty Credit Ratings
S&P Global Ratings said it has affirmed its 'B/B' long- and
short-term counterparty credit ratings on Russia-based Element
Leasing LLC.

S&P said, "We subsequently withdrew our ratings on Element
Leasing at the company's request. At the time of withdrawal, the
outlook was stable.

"The affirmation reflected our view that Element Leasing, while
being a relatively small entity sensitive to a challenging market
environment, will continue to be a relatively strong market
player in the segments where it operates. The company is able to
adapt to the changing operating environment thanks to its good
asset and liability management and financial flexibility, which
result in a track record of good operating performance and
resilience to economic downturns. In addition, our ratings
reflected Element Leasing's concentrated funding base, still-
challenging operating environment, and possible pressures on

"At the time of withdrawal, the outlook was stable, reflecting
the easing of funding conditions in Russia and our view that the
company will be able to maintain good asset quality over the next
12-18 months."

TENEX-SERVICE: S&P Withdraws 'BB/B' Counterparty Credit Ratings
S&P Global Ratings affirmed its 'BB/B' long- and short-term
counterparty credit ratings on Russia-based TENEX-Service.

S&P said, "We subsequently withdrew our ratings on TENEX-Service
at the company's request. At the time of withdrawal, the outlook
was positive.

"The affirmation reflects our view of TENEX-Service's highly
strategic status within the Atomic Energy Power Corp.
(AtomEnergoProm) group. We consider TENEX-Service to be a captive
leasing company not separable from the rest of the group. The
company therefore enjoys a very high likelihood of extraordinary
support from its parent, if required. Although we view TENEX-
Service as a government-related entity , given that it is
indirectly owned by the Russian government through
AtomEnergoProm, we think that any government support to TENEX-
Service, if needed, would likely be extended through its parent
and not directly by the government.

"At the time of withdrawal, the outlook was positive, mirroring
that on AtomEnergoProm and reflecting our expectation that TENEX-
Service will continue to benefit from its high level of strategic
and operational integration with its parent."


IM SABADELL RMBS 2: S&P Affirms B- Rating on Class C Notes
S&P Global Ratings affirmed its credit ratings on IM Sabadell
RMBS 2, Fondo de Titulizacion de Activos' class A, B, and C

S&P said, "Today's affirmations follow our analysis of the most
recent transaction information that we have received as of the
April 2017 investor report. Our analysis reflects the application
of our European residential loans criteria and our current
counterparty criteria (see "Methodology And Assumptions:
Assessing Pools Of European Residential Loans," published on Dec.
23, 2016, and "Counterparty Risk Framework Methodology And
Assumptions," published on June 25, 2013)."

The collection account is held with Banco de Sabadell S.A. (BBB-
/Positive/A-3) in the name of the servicer. As a consequence, the
transaction is exposed to commingling risk. S&P said, "However,
since our ratings in this transaction are at or below the rating
on the servicer, we have not stressed commingling loss in our
cash flow analysis in line with our current counterparty
criteria. Consequently, our ratings on the notes are constrained
by our long-term issuer credit rating (ICR) on Banco Sabadell.

"On June 27, 2017 we raised our long- and short-term ICRs on
Banco de Sabadell to 'BBB-/A-3' from 'BB+/B' (see "Banco de
Sabadell Ratings Raised To 'BBB-/A-3' On Improving
Capitalization; Outlook Remains Positive").

"Since our previous review in March 2017, available credit
enhancement for all classes of notes, as they are currently
amortizing pro rata, and pool performance have remained stable
(see "Various Rating Actions Taken In Spanish RMBS Transaction IM
Sabadell RMBS 2 Following Renegotiation Of Loans," published on
March 14, 2017). The reserve fund, representing 4% of the
outstanding balance of the mortgage assets, is amortizing.

"Our cash flow analysis indicates that, despite not assuming a
commingling loss at 'BBB-' and below rating levels, the class A
notes are still not able to achieve a higher rating level than
that currently assigned. Similarly, the class B and C notes have
sufficient credit enhancement to withstand the stresses
commensurate with their current rating levels, but not higher
ratings levels. We have therefore affirmed our 'BB+ (sf)' rating
on the class A notes and our 'B- (sf)' ratings on the class B and
C notes.

"Our ratings on the notes remain constrained by our long-term ICR
on Banco de Sabadell.

"We also consider credit stability in our analysis (see
"Methodology: Credit Stability Criteria," published on May 3,
2010). To reflect moderate stress conditions, we adjusted our
weighted-average foreclosure frequency assumptions by assuming
additional arrears of 8% for one- and three-year horizons. This
did not result in our rating deteriorating below the maximum
projected deterioration that we would associate with each
relevant rating level, as outlined in our credit stability

"In our opinion, the outlook for the Spanish residential mortgage
and real estate market is not benign and we have therefore
increased our expected 'B' foreclosure frequency assumption to
3.33% from 2.00%, when we apply our European residential loans
criteria, to reflect this view (see "Outlook Assumptions For The
Spanish Residential Mortgage Market," published on June 24,
2016). We base these assumptions on our expectation of modest
economic growth and continuing high unemployment."

IM Sabadell RMBS 2 is a Spanish residential mortgage-backed
securities (RMBS) transaction that closed in June 2008. It
securitizes a pool of first-ranking mortgage loans that Banco de
Sabadell originated.


  Class    Rating

  IM Sabadell RMBS 2, Fondo de Titulizaci┬ón de Activos
   EUR1.4 Billion Residential Mortgage-Backed Floating-Rate Notes

  Ratings Affirmed

  A      BB+ (sf)
  B      B- (sf)
  C      B- (sf)


NOVIY PJSC: Declared Insolvent by National Bank of Ukraine
The Board of the National Bank of Ukraine on July 13, 2017,
declared JSC Noviy PJSC insolvent.

The General Meeting of JSC Noviy PJSC's shareholders decided to
terminate banking operations and submitted the respective plan to
the NBU.

However, pursuant to the Law of Ukraine On Simplified
Recapitalization and Restructuring Procedures for Banks, the NBU
is not authorized to approve the bank resolution plan if there
are circumstances under which this bank cannot be declared

As of July 12, 2017, the regulatory capital of JSC NOVIY PJSC was
less than one third of the minimum required amount. Therefore,
pursuant to paragraph 2 of part 1 of Article 76 of the Law of
Ukraine On Banks and Banking, the NBU Board was obliged to take a
decision to declare this bank insolvent.

The NBU emphasizes that 99% of all the depositors of JSC NOVIY
PJSC will be paid out in full, as amounts held in their deposit
accounts fall within the insured deposit amount of UAH200,000,
which is covered by the Deposit Guarantee Fund. Customers with
larger deposits (above the insured deposit amount) will be
reimbursed up to the compensation limit guaranteed by the Fund. A
total of UAH36 million will be paid out by the DGF.

As of June 8, 2017, the State Space Agency of Ukraine was the
qualifying shareholder in JSC NOVIY PJSC (18.3% of shares).  The
remaining shareholders hold stakes equal to less than 10% of the
bank's shares each.

U N I T E D   K I N G D O M

BOWERS PROJECTS: Faces Liquidation, Halts Operations
Muhammad Aldalou at Insider Media reports that Bowers Projects
Ltd., part of the Bowers group of companies, has ceased trading
and is due to enter liquidation shortly, accountancy and business
advisory Smith Cooper has revealed.

The company had recently become embroiled in an adjudication
process with an NHS trust, and after becoming ultimately
unsuccessful in those proceedings, the business had no
alternative but to cease trading due to the impact of the
adjudication outcome on its cash flow, Insider Media relates.

This has resulted in the loss of ten jobs, Insider Media notes.

According to Insider Media, Michael Roomer, Smith Cooper's
director of business recovery and insolvency, said: "We had
planned for an agreement to be reached with the company's
creditors in the event that the adjudication had been successful.

"While planning for a potential company voluntary arrangement was
being undertaken we concurrently ran a process of marketing the
business and its assets for sale, but with no offers forthcoming,
and the unfortunate outcome at adjudication, the board of
directors have been left with no alternative but to cease trading
and commence the process of placing the company into

Bowers Projects Ltd. is a high voltage specialist company based
in Luton.

PRIMUS: Enters Into CVA Following Cash Flow Problems
Construction Enquirer reports that London contractor Primus is
entering a Company Voluntary Arrangement after its cash flow was
hit by a dispute on a major hotel job.

The Enquirer understands the company is locked in a payment row
following work it carried out on a new Crowne Plaza hotel on
Albert Embankment in London.

Primus landed the GBP22 million contract back in May 2015 to
build the 13-storey scheme, The Enquirer discloses.

But the firm was replaced on the project last September by
construction manager F3Group who are looking to complete the job
this autumn, The Enquirer recounts.

According to The Enquirer, a Primus spokesperson confirmed the
company was entering a CVA while it continues its cash wrangle on
the Albert Embankment project.

Latest results filed at Companies House show that for the year to
June 2106 Primus made a pre-tax profit of GBP136,000 on turnover
of GBP20.2 million, The Enquirer relates.

ROYAL MENCAP: Faces Insolvency After Night Carers' Back Pay Order
May Bulman at reports that dozens of leading
charities could face insolvency within weeks after the Government
ruled they must pay millions of pounds in back payments to
overnight carers.

Around 200 disability charities, including The Royal Mencap
Society, are said to face a bill of around GBP400 million in back
payments after new guidance was issued stating overnight carers
must be paid the national minimum wage (NMW) for all hours, relates.

According to the report, vulnerable people with learning
difficulties face losing "vital" care as a result of the bills,
charities have warned, with around 5,500 supported by Mencap
alone set to be "majorly impacted", while some may end up losing
that support all together.

Under guidance issued by the Government in 1999, when the minimum
wage was introduced, disability charities, which sent a carer
overnight to look after someone with learning difficulties, were
required to pay a flat rate "on call" allowance of GBP25 or GBP35
to cover the period when they were asleep, the report says.

But, following two tribunal cases in 2015 and last year, the
Department for Business, Energy and Industrial Strategy (BEIS)
changed the guidance in October to state that these organisations
must now pay the minimum wage throughout the shift, meaning
overnight carers would earn GBP60 for eight hours of sleep.

According to, Mencap and other charities and
companies are now warning that they cannot afford the huge and
unexpected additional sums being demanded by HM Revenue & Customs
(HMRC), even though they believe their staff should get the
higher pay levels demanded by the business department.

UK-based Royal Mencap Society is a charity that works with people
with a learning disability.

STEPHEN C ASSOCIATES: UK Orchestra Promoter Goes Into Liquidation
Norman Lebrecht at Slipped Disc reports that the Bournemouth
Symphony Orchestra is taking a financial hit on a Proms in the
Castle at Powderham on Sunday July 30. The event was cancelled
after its promoter Stephen C Associates Ltd went into liquidation
on July 19.

Aside from not receiving its hire fee, the BSO will refund
concertgoers who bought directly from the orchestra, the report

TURNSTONE MIDCO: Fitch to Withdraw Ratings for Commercial Reasons
Fitch Ratings plans to withdraw the ratings on Turnstone MidCo 2
and IDH Finance plc (together IDH) within the next 30 days for
commercial reasons.

Fitch currently rates IDH as follows:

Turnstone MidCo 2:
Long-Term Issuer Default Rating (IDR) at 'B'/Stable Outlook
Super senior revolving credit facility rating at 'BB'/Recovery
Rating 'RR1'

IDH Finance plc:
Senior secured fixed-rate notes instrument rating at 'B+'/'RR3'
Senior secured floating-rate notes instrument rating at

Fitch reserves the right in its sole discretion to withdraw or
maintain any rating at any time for any reason it deems
sufficient. Fitch believes that investors benefit from increased
rating coverage by the agency and is providing approximately 30
days' notice to the market of the rating withdrawal of IDH and
any related entities. Ratings are subject to analytical review
and may change up to the time Fitch withdraws the ratings.

Fitch's last rating action for the above referenced entities was
on September 6, 2016 when the IDR was downgraded to 'B' from 'B+'
and senior secured instrument rating of 'B+'/'RR3' and super
senior secured rating of 'BB'/'RR1' were assigned as part of
IDH's capital structure refinancing.

UMV GLOBAL: S&P Affirms 'B+' LT Corporate Credit Rating
S&P Global Ratings affirmed its 'B+' long-term corporate credit
rating on U.K.-based biscuits manufacturer UMV Global Foods
Holding Co. Ltd. (United Biscuits). The outlook remains negative.

S&P said, "We also affirmed the 'B+' issue rating on United
Biscuits' senior secured debt. The recovery rating is unchanged
at '3', indicating our estimated expectation of meaningful (60%)
recovery for debtholders in the case of a payment default.

"The rating affirmation primarily reflects our view that United
Biscuits liquidity position should improve in 2017. We understand
that the company will repay a portion of the senior debt by
selling its U.K. export business to the Middle East and North
Africa (MENA) and its IBC business (Saudi Arabia-based biscuit
production) to affiliated company Ulker Biscuvi (not rated). The
subsequent debt repayment will help restore adequate (more than
15%) covenant headroom in fourth-quarter 2017."

Combined with the proposed debt refinancing, credit metrics
should stabilize in the next 12 months following weaker-than-
expected 2016 results. S&P said, "We now forecast adjusted debt
to EBITDA of around 5x (6.4x in 2016) while United Biscuits
should be able to generate around GBP40 million of free operating
cash flow in 2017.

"That said, we believe the business remains subject to
operational headwinds in the U.K., its main market (around 70%-
80% of group EBITDA) and also in Northern Europe (France and The
Netherlands). Under our new base-case we see relatively weak
growth prospects over the next two years and forecast S&P Global
Ratings-adjusted EBITDA margin to remain low by historical
standards at around 12.5% in 2017 (compared to 15% over a five-
year average).

"In the U.K., we believe that despite a sales recovery in 2017
after a shortfall due to the Carlisle plant interruption, topline
growth will be limited over the next two years as price increases
to restore gross margin will affect volume growth. That said,
United Biscuits' main brand (McVities) carries strong brand
awareness, it has leading market share (26% in 2016), and its
products are well distributed in the U.K."

U.K. profitability will also likely remain under pressure from
higher raw materials costs (sugar notably) combined with negative
currency movements due to the weaker sterling against the euro
and U.S. dollar and continued necessary marketing costs and
promotional activity. More generally in the U.K. and Europe, we
believe United Biscuits will continue to experience high price
pressure from large retailers and discounters, and from
competition from large branded manufacturers and private biscuit

S&P said, "We also note that the sale of the MENA and IBC
businesses will increase the geographical concentration of
earnings in the U.K. This adds to the fact that United Biscuits
is only present in one product category and relies on the
McVities brand (40% of revenues)."
S&P's base case for 2017-2018 assumes:

-- Revenue growth of GBP1.1 billion-GBP1.2 billion comprising:
    U.K. (60%-70% of revenues): In 2017 mid-single-digit sales
    growth in 2017 driven by some volume growth following
    production interruption in early 2016. In 2018, we assume
    low-single-digit growth following price inflation. Northern
    Europe: Lower revenues due to high level of competition and
    price-pressure from retailers. International: Mid-to-high
    single-digit-revenue growth, thanks to volume growth in India
    and Nigeria. However, sales likely to remain sensitive to
    volatile currencies.
-- Adjusted EBITDA of about GBP150 million (EBITDA margin of
    about 12%-13%) driven by higher raw materials costs, negative
    currency exchange movements in the U.K. and in some emerging
    markets, and restructuring costs.
-- Free operating cash flows (FOCF) of about GBP40 million, with
    a stable EBITDA base, and capital expenditures (capex) of
    about GBP60 million annually.
-- Adjusted net debt of GBP750 million-GBP800 million with about
    GBP650 million of borrowings after planned debt repayments,
    about GBP200 million of net pension deficit and about GBP35
    million of operating lease commitments. We continue to treat
    the shareholder loan provided by Yildiz Holding as 100%

Based on these assumptions, S&P arrives at the following credit

-- Adjusted net debt to EBITDA of about 5x;
-- EBITDA interest coverage of about 5x; and
-- FOCF to debt of about 6%.

S&P said, "The negative outlook reflects that we could lower the
ratings on United Biscuits in the next 12 months. This is because
we believe that profitability will remain under pressure in 2017
in the U.K. and Europe (70%-80% of group EBITDA) from higher raw
materials costs and price pressure from retailers and

"We could lower the ratings if, over the next 12 months, we see a
further decline in revenues in the U.K. from a loss of market
share due to volume decline. We would also view negatively the
absence of stabilization of EBITDA margin showing an inability to
pass on price increases to consumers and ability to protect gross
margins and operate a lean cost structure in the U.K. and Europe.

"We could revise the outlook to stable if we see that United
Biscuits is able to stabilize its revenue base while improving
adjusted EBITDA margin back to historical average of about 15%
over the next 12 months. This may arise from an ability to
increase prices and gross margin in the U.K. while turning around
the Northern European operations, which have low profitability."


IPOTEKA BANK: S&P Affirms 'B+/B' Counterparty Credit Ratings
S&P Global Ratings affirmed its 'B+/B' long- and short-term
counterparty credit ratings on Uzbekistan-based Ipoteka Bank
JSCM. The outlook is stable.

S&P said, "We removed the ratings from CreditWatch, where they
were placed with negative implications on May 2, 2017 (see
"Uzbekistan-Based Ipoteka Bank 'B+' Rating Placed On CreditWatch
Negative Due To Regulatory Capital Breach," published on Ratings

"The affirmation reflects our view that over the past two months
Ipoteka Bank's capitalization has significantly improved on the
back of support received from the government of about Uzbekistani
sum (UZS) 380.8 billion (about $95million) and the bank is now in
compliance with the minimum capital regulatory requirement of
12.5%. Following first capital injection from the government
ofUZS124 billion, on May 31, 2017, Ipoteka Bank's capital
regulatory ratio stood at 13.3% (versus 11.7% at year-end 2016),
and additional capital was provided at the end of June 2017. The
total amount of UZS380.8 billion of capital provided to date
includes UZS140.8 billion (part of committed total support of
UZS155.7 billion) and $60 million (about UZS240 billion) of
additional capital support from the Uzbek Fund for Reconstruction
and Development in 2017 under anew presidential decree that a
outlines capital support program to all state-owned banks,
published in June 2017.

"We expect that the government support will counterbalance
pressures on the bank's capitalization stemming from high asset
growth and ongoing devaluation of the Uzbekistani sum. Additional
capital injected by the government in May-June 2017 will
materially strengthen Ipoteka Bank's regulatory capital ratios
and enable the bank to operate with more than a 100 basis point
buffer above the minimum regulatory requirements over the next
12-18 months. This takes into account the regulator's intention
to increase the regulatory minimum capital adequacy ratio to
13.5% from Jan. 1, 2018, and to 14.5% from Jan. 1, 2019. We,
therefore, revised our assessment of the bank's capital and
earnings position to moderate from very weak and the stand-alone
credit profile (SACP) to 'b+' from 'b-'. Also, we removed two
notches of uplift to Ipoteka Bank's SACP, which reflected our
earlier expectations of short-term capital support to be provided
by the government.

"At the same time, we note that over the past five years, Ipoteka
Bank's average annual asset growth was about 38%, which is higher
than the sector average of 25%-30%, driven by strong growth in
corporate lending partly aimed at supporting strategic economic
sectors in Uzbekistan. In our view, internal capital generation
remains weak and additional capital injections remain crucial to
support aggressive asset growth.

"However, we think it highly likely the bank will continue
receiving capital support from the government in 2017-2018. Our
view is underpinned by Ipoteka Bank's important public policy
role in Uzbekistan. Ipoteka Bank services the government program
to construct affordable houses in the urban areas, is the main
servicer of Uzbekistan's treasury, and provides funding to a
number of important state-related entities. At the same time, in
turn, this means that the bank is not immune from certain
pressure from the government to finance some companies or
economic sectors, which might eventually lead to a very strong
asset growth that could potentially increase pressure on capital

"The stable outlook reflects our view that capital provided by
the government to date and additional capital expected in 2017-
2018 as well as ongoing funding support will support Ipoteka
Bank's creditworthiness at the current level in the next 12-18

"We could lower the ratings if the bank expands significantly
stronger than we currently expect, with the growth not being
supported by additional capital provided by the government,
lowering the bank's regulatory capital adequacy ratios, with
capital buffers falling to below 100 basis points above minimum
capital regulatory capital requirements. Similarly, we could
consider a negative rating action if the bank's risk profile
deteriorated, with the amount of problem loans increasing
significantly higher than we currently expect and additional
provisioning required negatively impacting the bank's capital
base and capital adequacy ratios.

"A positive rating action is currently unlikely, in our view, as
the potential for significant improvement of key rating factors
that could lead to an upgrade is limited within the outlook


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


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.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and
Peter A. Chapman, Editors.

Copyright 2017.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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