TCREUR_Public/170901.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

          Friday, September 1, 2017, Vol. 18, No. 174


                            Headlines


D E N M A R K

OW BUNKER: Group of Institutional Investors to Sue Two IPO Banks


F R A N C E

VERGNET SA: Declared Itself Insolvent, Operations to Continue


G E R M A N Y

AIR BERLIN: Hans Woehrl Wants to Tie Up with Another Bidder
AIR BERLIN: German Taxes, Regulation Contributed to Failure


I T A L Y

ALITALIA SPA: Ryanair to Bid for 90 Planes Under Restructuring


L U X E M B O U R G

CERBERUS NIGHTINGALE 1: Fitch Affirms Then Withdraws 'B' IDR


N E T H E R L A N D S

BARINGS EURO 2017-1: Moody's Assigns B2 Rating to Cl. F Notes
BARINGS EURO 2017-1: Fitch Assigns 'B-sf' Rating to Cl. F Notes
CADOGAN SQUARE VI: Moody's Assigns B2 Rating to Class F Notes
CADOGAN SQUARE VI: Fitch Assigns B- Rating to Class F Notes


R U S S I A

NIZHNEKAMSKNEFTEKHIM: S&P Withdraws 'BB-' Corp. Credit Rating
OTKRITIE: "Significantly Overstated Capital", Central Bank Says


T A J I K I S T A N

TAJIKISTAN: Moody's Assigns (P)B3 Rating to Sr. Unsec. USD Notes
TAJIKISTAN: S&P Assigns 'B-' Rating to Proposed Debut Eurobond


U K R A I N E

PRIVATBANK: Moody's Raises LC Deposit Rating to Caa2
SBERBANK PJSC: Moody's Confirms Caa2 Long-Term LC Deposit Rating


U N I T E D   K I N G D O M

GREGSONS SOLICITORS: In Administration, Buyers Sought for Firm
JAGUAR LAND: Fitch Affirms BB+ Long-Term IDR, Outlook Stable


X X X X X X X X

* BOOK REVIEW: Hospitals, Health and People


                            *********



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D E N M A R K
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OW BUNKER: Group of Institutional Investors to Sue Two IPO Banks
----------------------------------------------------------------
Jacob Gronholt-Pedersen at Reuters reports that a group of
institutional investors in OW Bunker said they plan to sue Morgan
Stanley and Carnegie for about US$80 million, accusing the two
investment banks of misleading them ahead of the 2014 listing of
the now bankrupt marine fuel oil supplier.

Denmark's OW Bunker was valued at $1 billion when it floated in
March 2014, but the company filed for bankruptcy in November that
year after suffering hedging losses of almost US$300 million,
sending shockwaves through the global shipping and oil trading
industry, Reuters recounts.

"We are planning a lawsuit against the two investment banks
involved in the OW Bunker IPO," Erik Bomans, partner in Deminor
Recovery Services representing 30 institutional investors, told
Reuters on Aug. 31.

"They had access to a lot of information, which we believe made
them aware of certain problems that were not sufficiently
highlighted in the IPO prospectus," Reuters quotes Mr. Bomans as
saying.

Prior to the IPO, Morgan Stanley had been involved in an attempt
to sell OW Bunker privately, according to a 400-page report
published in December 2015 by a trustee in the OW Bunker
bankruptcy proceedings, Reuters relays.

The report stated that during that sales process in 2013, offers
to buy OW Bunker were made at $220 million-$400 million,
significantly lower than the IPO price of around $1 billion,
Reuters discloses.

Mr. Bomans declined to provide details about the planned lawsuit,
but said it related to OW Bunker's fuel oil trading operations
among other issues, Reuters notes.

He said the two banks have been notified about the plans, although
the lawsuit will only be filed in Denmark within the next couple
of weeks, according to Reuters.

                       About O.W. Bunker

OW Bunker AS is a global marine fuel (bunker) company founded in
Denmark.

On Nov. 6, 2014, OW Bunker A/S placed OWB Trading and O.W. Bunker
Supply & Trading A/S in an in-court restructuring procedure with
the probate court in Aalborg, Denmark.  By Nov. 7, 2014, the
Danish entities (plus O.W. Bunker Supply & Trading A/S, O.W.
Cargo Denmark A/S, and Dynamic Oil Trading A/S) were placed under
formal Danish bankruptcy (liquidation) proceedings in the Aalborg
probate court.

The company declared bankruptcy following its admission that it
had lost US$275 million through a combination of fraud committed
by senior executives at its Singaporean unit.

The Danish company placed its U.S. subsidiaries -- O.W. Bunker
Holding North America Inc., O.W. Bunker North America Inc. and
O.W. Bunker USA Inc. -- in Chapter 11 bankruptcy (Bankr. D. Conn.
Case Nos. 14-51720 to 14-51722) in Bridgeport, Conn., on Nov. 13,
2014.  The U.S. cases are assigned to Judge Alan H.W. Shiff.  The
U.S. Debtors tapped Patrick M. Birney, Esq., and Michael R.
Enright, Esq., at Robinson & Cole LLP, as counsel.   McCracken,
Walker & Rhoads LLP served as co-counsel.  Alvarez & Marsal acted
as the financial advisor.

The Office of the United States Trustee formed an official
committee of unsecured creditors of the Debtors on Nov. 26, 2014.
The Committee tapped Hunton & Williams LLP as its attorneys.

On Dec. 15, 2015, the U.S. Debtors obtained confirmation of their
First Modified Liquidation Plans.  Under the plan, the Debtors
proposed to create two liquidating trusts, one for each of its
North American units, to hold the estate assets of each company
and make distributions to creditors, while parent OW Bunker
Holding North America Inc. will dissolve.

According to a Bloomberg report, under the First Modified Plan,
administrative claims of $0.94 million, U.S. Trustee Fees, non-
tax priority claims against OWB USA and NA, Priority tax claims
of $0.05 million, secured claims against OWB USA and NA and fee
claims will be paid in full in cash.  Subordinated claims against
OWB USA and NA will not receive any distribution.  Electing OWB
USA unaffiliated trade claims of $13.3 million will have a
recovery of 40% amounting to $5.31 million.  OWB NA affiliated
unsecured claims and non-electing OWB NA unaffiliated trade
claims will have a recovery of 1% in cash.  OWB USA affiliated
unsecured claims will have a recovery of 0.4% in cash.  Electing
OWB NA unaffiliated trade claims will receive pro rata payment of
$2.5 million in cash.  Non-Electing OWB USA unaffiliated trade
claims of $18.36 million will be paid $0.07 million in cash, a
recovery of 0.4%.  Equity interests in OWB USA and NA will be
cancelled and will not receive any distribution.  The plan will
be funded by cash in hand and sale of assets.



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F R A N C E
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VERGNET SA: Declared Itself Insolvent, Operations to Continue
-------------------------------------------------------------
Reuters reports that Vergnet SA declared itself insolvent to the
Tribunal de Commerce d'Orleans with demand for rescue procedure
pronounced on Aug. 30

The first observation period of six months is renewable twice,
Reuters notes.

The company will remain fully operational during rescue procedure
period, Reuters discloses.

Trading in the company's shares remains suspended, Reuters states.

Vergnet SA is a global renewable energy solutions company based in
France.



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


AIR BERLIN: Hans Woehrl Wants to Tie Up with Another Bidder
----------------------------------------------------------
Maria Sheahan and Peter Maushagen at Reuters report that German
aviation investor Hans Rudolf Woehrl wants to tie up with another
bidder, preferably Lufthansa, to buy up insolvent Air Berlin plc
and turn it into a charter carrier.

"Due to the time pressure, the problems can best be solved jointly
with other bidders," Reuters quotes Mr. Woehrls' firm Intro as
saying in a statement.

It said Lufthansa had declined to hold talks for now, citing legal
reasons, but it said Woehrl had received positive signals from
other bidders, Reuters relates.

Lufthansa has the German government's backing to take over major
parts of Air Berlin, but Britain's easyJet and Thomas Cook's
Condor are reportedly also interested in some assets, Reuters
discloses.

Mr. Woehrl has proposed keeping Air Berlin intact rather than
carving it up, Reuters notes.  Intro, according to Reuters, said
it proposed to Air Berlin's administrator on Aug. 30 that the
group could become a charter carrier, operating flights for
partner airlines using its planes and crew.

                         About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.


AIR BERLIN: German Taxes, Regulation Contributed to Failure
-----------------------------------------------------------
Maria Sheahan at Reuters reports that Germany's tourism trade body
said on Aug. 31 German taxes and regulation have allowed foreign
airlines to take market share from German carriers and contributed
to the failure of Air Berlin.

"Conditions distorting competition allow foreign competitors to
carve out an increasingly large part of passenger volume," Reuters
quotes Michael Frenzel, President of the federal association of
Germany's tourism sector, as saying.

The association, which represents travel-related industries
including tour operators, hotels and airlines, called on the
German government to ease the burden of costs such as Germany's
air travel tax, which was introduced in 2010, Reuters relates.

At the same time, Mr. Frenzel, as cited by Reuters, said the
association had no interest in a national champion, after
Germany's Economy Minister Brigitte Zypries said she would welcome
it if Lufthansa took over substantial parts of Air Berlin.

                         About Air Berlin

In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is
a global airline carrier that is headquartered in Germany and is
the second largest airline in the country.

In 2016, Air Berlin operated 139 aircraft with flights to
destinations in Germany, Europe, and outside Europe, including
the United States, and provided passenger service to 28.9 million
passengers.  Within the first seven months of 2017, the Debtor
carried approximately 13.8 million passengers.  It employs
approximately 8,481 employees.  Air Berlin is a member of the
Oneworld alliance, participating with other member airlines in
issuing tickets, code-share flights, mileage programs, and other
similar services.

Air Berlin has racked up losses of about EUR2 billion over the
past six years, and has net debt of EUR1.2 billion.

On Aug. 15, 2017, Air Berlin applied to the Local District Court
of Berlin-Charlottenburg, Insolvency Court for commencement of an
insolvency proceeding.  On the same day, the German Court opened
preliminary insolvency proceedings permitting the Debtor to
proceed as a debtor-in-possession, appointed a preliminary
custodian to oversee the Debtor during the preliminary insolvency
proceedings, and prohibited any new, and stayed any pending,
enforcement actions against the Debtor's movable assets.

To seek recognition of the German proceedings, representatives of
Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No.
17-12282) on Aug. 18, 2017.  The Hon. Michael E. Wiles is the
case judge.  Thomas Winkelmann and Frank Kebekus, as foreign
representatives, signed the petition.  Madlyn Gleich Primoff,
Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as
counsel in the U.S. case.



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I T A L Y
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ALITALIA SPA: Ryanair to Bid for 90 Planes Under Restructuring
--------------------------------------------------------------
Conor Humphries at Reuters reports that Ryanair Chief Executive
Michael O'Leary said on Aug. 31 it will bid to operate 90 planes
under the Alitalia brand and using existing staff as part of the
Italian airline's restructuring.

According to Reuters, Ryanair has until Oct. 2 to make a binding
bid for all or part of the Italian carrier, which has been put
under special administration for the second time in less than a
decade.

Mr. O'Leary, as cited by Reuters, said Ryanair would operate the
90 leased planes using existing staff, but the offer would be
dependent on some redundancies, changes to staff conditions and
renegotiation of the leases.

He said Ryanair would be interested in bidding for the whole of
Alitalia, which has around 120 planes, but such a deal would
likely be blocked by regulators as it would leave Ryanair in
control of over 50 percent of the Italian market, Reuters notes.

Mr. O'Leary said Alitalia would likely be broken up whoever buys
it and that any takeover would include competition remedies,
Reuters relates.

                         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.



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L U X E M B O U R G
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CERBERUS NIGHTINGALE 1: Fitch Affirms Then Withdraws 'B' IDR
------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the Long-Term Issuer
Default Rating (IDR) for Cerberus Nightingale 1 S.A (Cerba) at
'B'. The Outlook is Stable. Concurrently, Fitch has also withdrawn
the instrument rating of 'B+'/'RR3' assigned to Cerberus
HealthCare SAS. Fitch has withdrawn Cerba's IDR for commercial
reasons. Fitch reserves the right at its sole discretion to
withdraw or maintain any rating at any time for any reason it
deems sufficient.

Cerba's rating is underpinned by strong market positions in the
consolidating routine and specialist testing market in Europe.
Cerba has been able to improve profitability by extracting
synergies and implementing cost synergies having expanded by way
of bolt-on acquisitions.

The rating is constrained by the group's high leverage following
the change of ownership. However, it is supported by the defensive
business model, satisfactory liquidity and free cash-flow
generation, which Fitch believes will facilitate further growth in
the business and which lead to the Stable Outlook.

KEY RATING DRIVERS

Financial Leverage Constrains Rating: Fitch estimates that
following the acquisition by Partners Group/PSP, Cerba's FFO
adjusted leverage for the financial year ending December 31, 2017
(FY17) will peak at just over 8.0x, which is weak for the 'B'
rating level. FFO fixed charge cover however has been improving
post refinancing, and Fitch estimates it will recover to more than
3.0x over the next two years (previously around 2.0x) resulting in
greater financial flexibility post refinancing thanks to the lower
cost of debt and improved liquidity.

Deleveraging Expected, Positive Free Cash Flows: Fitch expects
Cerba to generate positive free cash flows (FCF) over its four-
year rating horizon, with FCF margins gradually improving from
5.5% in FY17 to close to 9.0% in 2020. In order to maintain its
de-leveraging momentum, Cerba will need however a disciplined
approach towards acquisitions and their integration. Fitch ratings
recognises the satisfactory cash conversion of the business, which
Fitch believes offers deleveraging capacity.

Industry Consolidation; Reimbursement Pressures: Fitch views the
"buy-and-build" strategy currently implemented across the routine
testing segment as beneficial to market participants as it has led
to the consolidation of a previously very fragmented market across
Europe. Fitch also believes that this strategy still has some way
to go before concentration issues may arise. However, Fitch also
observes continued pressure on reimbursement rates, which Fitch
believes will be an ongoing feature of this health-care subsector.
In Fitch views, top-line growth will be supported by increasing
volumes in a deflationary environment, with profitability
enhancement coming from scale benefits and synergies.

DERIVATION SUMMARY

The fragmented European market for routine and specialist
laboratory testing services is currently subject to an
accelerating pace of consolidation, driven in part by strong
private-equity involvement in the sector. The lab testing markets
benefit from the same secular trends that are common to health-
care markets, such as a growing and ageing population, and an
emphasis on early diagnostics and increased frequency of testing
in a shift favouring prevention over treatment.

The implementation of companies' growth strategies remains subject
to individual health-care legislation, with investors expressing
concern about the tightly regulated French environment, where
Cerba continues to build its market share and where there is
further pricing pressure as many of these services are expected to
be commoditised in the future and may not even require full doctor
involvement. Here, Fitch see the - ultimately failed - example of
Theranos labs in the US as an example how the sector is subject to
challenges associated with disruptive technologies.

KEY ASSUMPTIONS

Fitch's key assumptions within its ratings case for the issuer
include:

- revenue Growth of 6.5%-7.0% pa between 2018-20, of which
   approximately 3.0% is estimated organic growth;
- stable EBITDA margins over the four-year Fitch rating horizon
   of around 23%;
- capex estimated at around 5% of sales, annual bolt on
   acquisitions between EUR50-60 million pa;
- no dividends.

RATING SENSITIVITIES

Rating Sensitivities are no longer relevant given rating
withdrawal.

LIQUIDITY

Fitch views Cerba's liquidity profile as satisfactory and improved
after the 2017 refinancing, supported by projected free cash-flow
generation, as well as a EUR175 million RCF, supporting general
corporate purposes as well as investments in the business. There
are no material debt maturities over Fitch's four-year rating
horizon.



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


BARINGS EURO 2017-1: Moody's Assigns B2 Rating to Cl. F Notes
-------------------------------------------------------------
Moody's Investors Service assigned the following definitive
ratings to the notes issued by Barings Euro CLO 2017-1:

-- EUR271,000,000 Class A-1 Senior Secured Floating Rate Notes
    due 2030, Assigned Aaa (sf)

-- EUR5,750,000 Class A-2 Senior Secured Fixed Rate Notes due
    2030, Assigned Aaa (sf)

-- EUR9,000,000 Class B-1 Senior Secured Floating Rate Notes due
    2030, Assigned Aa2 (sf)

-- EUR30,950,000 Class B-2 Senior Secured Fixed Rate Notes due
    2030, Assigned Aa2 (sf)

-- EUR27,000,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned A2 (sf)

-- EUR23,600,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned Baa2 (sf)

-- EUR32,850,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned Ba2 (sf)

-- EUR14,100,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the rated notes address the expected
loss posed to noteholders by the legal final maturity of the notes
in 2030. The definitive ratings reflect the risks due to defaults
on the underlying portfolio of loans given the characteristics and
eligibility criteria of the constituent assets, the relevant
portfolio tests and covenants as well as the transaction's capital
and legal structure. Furthermore, Moody's is of the opinion that
the Collateral Manager, Barings (U.K.) Limited, has sufficient
experience and operational capacity and is capable of managing
this CLO.

Barings Euro CLO 2017-1 B.V. is a managed cash flow CLO. At least
90% of the portfolio must consist of senior secured loans and
senior secured bonds. The portfolio is expected to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

Barings (U.K.) Limited ("Barings") will manage the CLO. It will
direct the selection, acquisition and disposition of collateral on
behalf of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's four-year
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit improved and credit risk
obligations, and are subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer issued EUR52.00M of subordinated notes, which will not be
rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in October 2016. The
cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders. Therefore,
the expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario and (ii)
the loss derived from the cash flow model in each default scenario
for each tranche. As such, Moody's encompasses the assessment of
stressed scenarios.

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

Par amount: EUR450,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.65%

Weighted Average Coupon (WAC): 4.90%

Weighted Average Recovery Rate (WARR): 41.50%

Weighted Average Life (WAL): 8.0 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. For countries which are not member of the
European Union, the foreign currency country risk ceiling applies
at the same levels under this transaction. As per the portfolio
constraints, exposures to countries with a LCC of A1 or below
cannot exceed 10%, with exposures to countries with LCCs of Baa1
to Baa3 further limited to 5%. Following the effective date, and
given these portfolio constraints and the current sovereign
ratings of eligible countries, the total exposure to countries
with a LCC of A1 or below may not exceed 10% of the total
portfolio. As a worst case scenario, a maximum 5% of the pool
would be domiciled in countries with LCCs of Baa1 to Baa3 while an
additional 5% would be domiciled in countries with LCCs of A1 to
A3. The remainder of the pool will be domiciled in countries which
currently have a LCC of Aa3 and above. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class of notes as further
described in the methodology. The portfolio haircuts are a
function of the exposure size to countries with LCC of A1 or below
and the target ratings of the rated notes, and amount to 0.75% for
the Class A-1 Notes and Class A-2 Notes, 0.50% for the Class B-1
Notes and the Class B-2 Notes, 0.375% for the Class C Notes and 0%
for Classes D, E and F Notes.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the definitive ratings assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal.

Percentage Change in WARF: WARF + 15% (to 3335 from 2900)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: -1

Class A-2 Senior Secured Fixed Rate Notes: -1

Class B-1 Senior Secured Floating Rate Notes: -2

Class B-2 Senior Secured Fixed Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3770 from 2900)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: -1

Class A-2 Senior Secured Fixed Rate Notes: -1

Class B-1 Senior Secured Floating Rate Notes: -4

Class B-2 Senior Secured Fixed Rate Notes: -4

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -2


BARINGS EURO 2017-1: Fitch Assigns 'B-sf' Rating to Cl. F Notes
---------------------------------------------------------------
Fitch Ratings has assigned Barings 2017-1 Euro CLO B.V.'s notes
final ratings:

EUR271 million Class A-1: 'AAAsf'; Outlook Stable
EUR5.75 million Class A-2: 'AAAsf'; Outlook Stable
EUR9 million Class B-1: 'AAsf'; Outlook Stable
EUR30.95 million Class B-2: 'AAsf'; Outlook Stable
EUR27 million Class C: 'Asf'; Outlook Stable
EUR23.6 million Class D: 'BBBsf'; Outlook Stable
EUR32.85 million Class E: 'BBsf'; Outlook Stable
EUR14.1 million Class F: 'B-sf'; Outlook Stable

Barings 2017-1 Euro CLO B.V. is a cash flow collateralised loan
obligation securitising a portfolio of mainly European leveraged
loans and bonds. Net proceeds from the issue of the notes were
used to purchase a portfolio of EUR450 million of mostly European
leveraged loans and bonds. The portfolio is managed by Barings
(U.K.) Limited.

KEY RATING DRIVERS

'B'/'RR2' Average Credit Quality
The average credit quality of the current portfolio is in the 'B'
category, based on Fitch's ratings and credit opinions on the
obligors in the pool. The Fitch weighted average rating factor of
the identified portfolio is 34.4. The Fitch weighted average
recovery rate of the current portfolio is 60.9%, which is in line
with an average 'RR2' Recovery Rating.

Concentration Limits Ensure Diversification
The transaction includes limits to top 10 obligor concentration,
which is in line with recent European CLOs. The transaction also
includes limits to maximum industry exposure. The maximum exposure
to the largest and the three largest industries is covenanted at
17.5% and 40%, respectively.

Market Risk Exposure Mitigated
Between 0% and 15% of the portfolio may be invested in fixed-rate
assets, while fixed-rate liabilities account for 8.1% of the
target par amount, providing a partial interest rate hedge. The
transaction is allowed to invest up to 20% of the portfolio in
non-euro-denominated assets but only if hedged with perfect asset
swaps.

RATING SENSITIVITIES

A 25% increase in the obligor default probability could lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates could lead to a downgrade of
up to two notches for all rated notes with the exception of the
class E notes, which could be downgraded by up to four notches.


CADOGAN SQUARE VI: Moody's Assigns B2 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes ("Refinanced Notes") issued
by Cadogan Square CLO VI B.V., following a restructuring of the
transaction which closed on June 2015:

-- EUR237,300,000 Class A Senior Secured Floating Rate Notes due
    2030, Assigned Aaa (sf)

-- EUR34,800,000 Class B-1 Senior Secured Floating Rate Notes due
    2030, Assigned Aa2 (sf)

-- EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due
    2030, Assigned Aa2 (sf)

-- EUR25,400,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned A2 (sf)

-- EUR22,400,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned Baa2 (sf)

-- EUR29,400,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned Ba2 (sf)

-- EUR12,800,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned B2 (sf)

RATINGS RATIONALE

Moody's ratings of the rated notes address the expected loss posed
to noteholders by the legal final maturity of the notes in 2030.
The ratings reflect the risks due to defaults on the underlying
portfolio of loans given the characteristics and eligibility
criteria of the constituent assets, the relevant portfolio tests
and covenants as well as the transaction's capital and legal
structure. Furthermore, Moody's is of the opinion that the
collateral manager, Credit Suisse Asset Management Limited
("CSAM"), has sufficient experience and operational capacity and
is capable of managing this CLO.

The Issuer has issued the Refinancing Notes in connection with the
refinancing of the following classes of notes: Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes, Class B-1 Notes, Class B-2
Notes, Class B-3 Notes, Class C-1 Notes, Class C-2 Notes, Class D-
1 Notes, Class D-2 Notes, Class E-1 Notes, Class E-2 Notes, Class
F-1 Notes and Class F-2 Notes due 2029 (the "Original Notes"),
previously issued on June 30, 2015 (the "Original Closing Date").
On the Refinancing Date, the Issuer will use the proceeds from the
issuance of the Refinancing Notes to redeem in full its respective
Original Notes.

Cadogan Square CLO VI B.V. is a managed cash flow. At least 90% of
the portfolio must consist of senior secured loans or senior
secured bonds, and up to 10% of the portfolio may consist of
second-lien loans, unsecured loans, mezzanine obligations and high
yield bonds. The portfolio may also consist of up to 12.5% of
fixed rate obligations and between 0% and 4% of principal hedged
assets and unhedged assets denominated in U.S. Dollars, Sterling,
Swiss Francs, Swedish Krona, Norwegian Krone or Danish Krone. The
portfolio is expected to be fully ramped up as of the Issue Date
and to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe.

The Collateral Manager will direct the selection, acquisition and
disposition of collateral on behalf of the Issuer and may engage
in trading activity, including discretionary trading, during the
transaction's reinvestment period. Thereafter, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit improved and credit
impaired obligations, and are subject to certain restrictions.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in Section
2.3 of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in October 2016. The
cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders. Therefore,
the expected loss or EL for each tranche is the sum product of (i)
the probability of occurrence of each default scenario and (ii)
the loss derived from the cash flow model in each default scenario
for each tranche. As such, Moody's encompasses the assessment of
stressed scenarios.

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

Par amount: EUR400,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2850

Weighted Average Spread (WAS): 3.70%

Weighted Average Recovery Rate (WARR): 41.5%

Weighted Average Life (WAL): 8 years

Weighted Average Coupon (WAC): 5.0%

As part of the base case, Moody's has looked at the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with a LCC of A1 or below
cannot exceed 10%, with exposures to countries with LCCs of Baa1
to Baa3 further limited to 0%. Given these portfolio constraints
and the current sovereign ratings of eligible countries, no
additional stress runs were performed as further described in the
methodology.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the ratings assigned to the rated notes.
This sensitivity analysis includes increased default probability
relative to the base case. Below is a summary of the impact of an
increase in default probability (expressed in terms of WARF level)
on each of the rated notes (shown in terms of the number of notch
difference versus the current model output, whereby a negative
difference corresponds to higher expected losses), holding all
other factors equal.

Percentage Change in WARF: + 15% (from 2850 to 3278)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B-1 Senior Secured Floating Rate Notes: -2

Class B-2 Senior Secured Fixed Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -2

Percentage Change in WARF: +30% (from 2850 to 3705)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

Class B-1 Senior Secured Floating Rate Notes: -3

Class B-2 Senior Secured Fixed Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -4

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.


CADOGAN SQUARE VI: Fitch Assigns B- Rating to Class F Notes
-----------------------------------------------------------
Fitch Ratings has assigned Cadogan Square CLO VI B.V.'s
refinancing notes final ratings:

Class A: 'AAAsf'; Outlook Stable
Class B-1: 'AAsf'; Outlook Stable
Class B-2: 'AAsf'; Outlook Stable
Class C: 'Asf'; Outlook Stable
Class D: 'BBBsf'; Outlook Stable
Class E: 'BBsf'; Outlook Stable
Class F: 'B-sf'; Outlook Stable

Cadogan Square CLO VI B.V. is a cash flow collateralised loan
obligation (CLO) securitising a portfolio of mainly European
leveraged loans and bonds. Net proceeds from the issue of the
notes are being used to refinance the current outstanding notes.
The portfolio is managed by Credit Suisse Asset Management
Limited.

KEY RATING DRIVERS

'B'/ 'RR3' Average Credit Quality: The average credit quality of
the current portfolio is in the 'B'/'B-' category, based on
Fitch's ratings and credit opinions on the obligors in the pool.
The Fitch weighted average rating factor (WARF) of the current
portfolio is 33.1, below the current maximum covenant of 34.5. The
Fitch weighted average recovery rate (WARR) of the current
portfolio is 64.8, above the minimum covenant of 64.5.

Change to Single-Currency Deal: The transaction originally was
multi-currency, which comprised of up to 10% of unhedged
obligations and 5% in sterling liabilities. Following the reset
there will no longer be any sterling liabilities and the manager
is only allowed to invest in non-euro assets (up to 20%) to the
extent they are hedged with perfect asset swaps. Of this amount,
2.5% may be in unhedged non-euro-denominated assets, but only if
after the applicable haircuts (50% of the applicable spot rate
until day 180 and 0% thereafter) the aggregate balance of the
assets is above the reinvestment target par balance.

Diversified Asset Portfolio: This deal contains a covenant that
limits the top 10 obligors in the portfolio to 20% of the
portfolio balance. This ensures that the asset portfolio will not
be exposed to excessive obligor concentration.

Partial Interest Rate Hedge: Between 0% and 12.5% of the portfolio
can be invested in fixed-rate assets, while fixed-rate liabilities
account for 2.5% of target par at closing. The transaction is thus
only partially hedged against rising interest rates.

TRANSACTION SUMMARY

The issuer has amended the capital structure, most notably by
removing the sterling notes. The transaction will have a four-year
reinvestment period and eight year maximum weighted average life.

RATING SENSITIVITIES

A 25% increase in the obligor default probability could lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates could lead to a downgrade of
up to four notches for the rated notes.



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


NIZHNEKAMSKNEFTEKHIM: S&P Withdraws 'BB-' Corp. Credit Rating
-------------------------------------------------------------
S&P Global Ratings said that it had withdrawn its 'BB-' long-term
corporate credit rating on Tatarstan-based petrochemicals producer
Nizhnekamskneftekhim PAO (NKNK). S&P is unable to continue
surveillance of the rating, owing to a lack of information on
NKNK's parent, TAIF Group.


OTKRITIE: "Significantly Overstated Capital", Central Bank Says
---------------------------------------------------------------
Max Seddon at The Financial Times reports that after Russia's
central bank stepped in this week to nationalize lender Otkritie,
regulators and the bank's management are attempting to spin the
rescue as a net positive for the sector.

Since taking over as central bank governor in 2013, Elvira
Nabiullina has shut more than 300 banks, mostly small lenders that
resort to illegal activity to cover holes in their balance sheet,
the FT relates.
But the rise and fall of Otkritie points to the formidable task
the central bank faces in cleaning up the sector, the FT notes.
The lender came out of nowhere to become Russia's largest
privately held bank in only three years, then lost that status as
depositors withdrew 30% of its assets after a rating downgrade and
concerns about its loan portfolio, the FT relays.

"Being systemically important doesn't mean you are safe from
problems," the FT quotes Alexander Danilov, an analyst at Fitch,
the rating agency, as saying.  "They understood the systemic
resonance was very big."

Otkritie's spectacular collapse shows that the sector's problems
run far deeper, the FT notes.

Dmitry Tulin, a deputy central bank governor, as cited by the FT,
said Otkritie had "significantly overstated" its capital.

Regulators will now take three months determining whether Otkritie
has a hole in its balance sheet, the FT states.

Three senior state bankers told the FT that the rescue package
could eventually rival the record US$14 billion spent saving Bank
of Moscow in 2011.

"Just look at their balance sheet," one of the bankers, as cited
by the FT, said.  "Ten to 20% is normal banking assets, and the
rest is all these shady financial instruments you don't want to go
anywhere near."

The rescue has calmed immediate jitters by guaranteeing the safety
of retail and corporate deposits, as well as all of Otkritie's
bonds bar subordinated debt, the FT discloses.

According to the FT, analysts say the move will help stem
depositor flight while protecting contamination, particularly to
the other three banks in the "Garden Ring" that are heavily
exposed to each other through rouble bonds.



===================
T A J I K I S T A N
===================


TAJIKISTAN: Moody's Assigns (P)B3 Rating to Sr. Unsec. USD Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B3 rating
to the Government of Tajikistan's senior unsecured US dollar-
denominated notes.

The senior unsecured notes will rank pari passu with the
Government of Tajikistan's current and future senior unsecured
external debt. The (P)B3 rating assigned to the notes mirrors the
Government of Tajikistan's issuer rating of B3.

The provisional (P)B3 rating is based on the preliminary
prospectus received on 24 August. Moody's will assign a definitive
rating upon receipt and review of the final documentation. The
proceeds of the notes are intended to primarily serve to finance
government spending of the Rogun HPP project.

RATINGS RATIONALE

Tajikistan's B3 issuer rating and stable outlook reflect the
economy's robust medium-term growth prospects, which are supported
by hydropower generation, notwithstanding inherent project risks
attached to the construction and operation of the Rogun HPP
project.

The issuer rating also incorporates the credit challenges posed by
institutions that are weak on a global scale, although progress on
financial reforms and macroeconomic stability indicate some
improvements. In addition, external vulnerability risks are
significant as a result of low, albeit rising, foreign reserves
relative to external debt. The government's fiscal position is
characterised by a moderately high and rising government debt
burden with limited funding sources and outstanding contingent
liability risks posed by the weak banking sector.

Tajikistan has enjoyed robust real GDP growth of around 7% per
annum on average in the past five years. However, very low per
capita income levels and limited sectoral diversification raise
the sovereign's susceptibility to economic and financial shocks.
GDP growth is reliant on agriculture and aluminium exports, and
remittances from Tajiks working in foreign countries, which drive
domestic private consumption.

In this context, the construction of the Rogun HPP project, a
hydropower project, is supporting GDP growth and has the potential
to significantly boost income levels. The government's National
Development Strategy 2030, which aims to boost GDP growth and
support diversification into manufacturing, is tied to enhancing
energy supply.

A shortage of domestic power, particularly during the winter
months, has been a constraint on the economy's productive
capacity. Once the first phase of the project is completed in
2018, the existing and planned transmission line system will allow
early generation production to serve both regional and domestic
markets. The increase in electricity supply would support
industry, investment and exports.

Risks to the project include delays to the timeline of
construction, financing of equipment costs, political risks and
weather-related risks. Should these risks crystallise, they could
delay or diminish the economic benefits from the project, while
also raising the fiscal costs associated with it.

Meanwhile, Tajikistan's institutions are weak relative to other
sovereigns, as reflected in very low rankings on government
effectiveness, rule of law, and control of corruption in the
Worldwide Governance Indicators. Nonetheless, the National
Development Strategy 2030 focuses in part on strengthening the
country's institutions. Already the National Bank of Tajikistan
(NBT), the central bank, and the government have taken several
measures to improve the operating environment, suggesting some
strengthening of the institutional framework.

The measures include new laws to give the central bank greater
supervisory power, the requirement that banks be more transparent,
the appointment of temporary NBT management to troubled banks to
strengthen governance and the conduct of asset quality reviews to
evaluate potential financial risks.

Despite the severe stress in the banking system, the government
and central bank have maintained relative economic stability. The
economy continues to grow strongly and poverty rates are falling.
Tighter monetary policy, including foreign exchange controls --
such as the requirement to convert ruble-denominated remittances
into local currency -- are working to support exchange rate
stability. These measures are also helping to de-dollarise the
economy, reducing the share of deposits in foreign currency from
around 70% in 2015 to around 60% at end-2016.

In addition, low foreign exchange reserves relative to annual
external public and private sector debt repayments point to a
vulnerability to external risks. Foreign exchange reserves
(excluding gold) reached $101 million in March 2017, rising
significantly from $34 million in 2015. Despite this increase,
foreign exchange reserves are lower than the total short-term
external debt of the government and the private sector, which
amounted to $1.15 billion in 2016.

The external vulnerability risks highlighted by the ratio of
short-term debt to foreign exchange reserves are somewhat
mitigated by Tajikistan's relatively substantial gold reserves.
Gross international reserves including monetary gold and SDRs
reached $636 million in March 2017. At around 80%, the share of
gold in total foreign reserves is the highest in the world. As of
June 30, 2017, 93% of gold holdings were in the form of relatively
liquid monetary gold. The potential for monetising gold bolsters
Tajikistan's capacity to meet its external repayment commitments,
although the value of any gold sale would be subject to
fluctuations in international prices.

A moderately high and rising government debt burden also weighs on
Tajikistan's credit profile. Government debt rose to 44.8% of GDP
in 2016, up from 33.3% in 2015, mostly as a result of government
support to the banking system. Moody's expects government
borrowing to increase to finance construction of the Rogun HPP
project, which will weaken the government's fiscal strength in
coming years. Moody's forecasts that the government debt-to-GDP
ratio will rise to about 55% to 60% in 2017-18, a relatively high
level to sustain for a small economy with limited financing
sources.

In addition, a significant proportion of government debt is
foreign-currency denominated, exposing debt servicing costs to
exchange rate movements.

On the other hand, debt affordability benefits from the mostly
concessional nature of government debt, which has maintained debt
servicing costs at low levels. Moreover, the government's
accumulation of deposits at the central bank, which equate to 6.3%
of GDP as of May 2017, indicates availability of a domestic pool
of funding.

Banking sector weaknesses pose contingent liability risks for the
government. Asset quality and liquidity related stress led to the
government recapitalising the two largest banks in 2016. Still,
system-wide non-performing loan (NPL) ratios -- classified as
loans overdue for 30+ days -- remain high at around 40% of total
loans. Although half of these problem loans relate to the two
recapitalised banks, the NPL ratio for the system, even when
measured by conventional standards, is high, and suggests some of
the other banks could potentially require government support,
particularly in the event of an unanticipated economic or external
shock.

Banks' asset quality challenges stem from exposure to external
trade, remittance and exchange rate volatility. Moreover, with
system deposits insufficient to finance loans and banks relying on
wholesale markets, pressure on banks' liquidity position will
persist.

Nevertheless, there are positive trends in the banking system.
Non-performing loan ratios are trending downward, albeit from high
levels, banks are returning to profitability and recovery in
remittance earnings will support household incomes and debt
servicing.

ISSUER RATING OUTLOOK

The stable outlook on the sovereign's rating balances Tajikistan's
robust medium-term economic growth prospects and implementation of
reform against persistent external vulnerability risks and
potential further banking sector weaknesses that would raise
contingent liability risks to the government.

Moody's expects construction of the Rogun HPP project to continue
ahead of planned power generation in late 2018. The potential tax
and export revenues from the project would bolster the
government's fiscal position and the central bank's stock of
foreign reserves. Moody's also expects the authorities to continue
to pursue reform in the financial sector to ensure macroeconomic
and financial stability.

These credit positive trends are balanced by risks related to the
external liquidity position and contingent liabilities related to
the banking system.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on Tajikistan's credit rating could develop as a
result of 1) the successful implementation of the Rogun HPP
project that delivers increasing tax and export revenues, in turn
durably boosting fiscal strength and reducing external liquidity
risks, or 2) effective implementation of banking and fiscal
reforms that support macroeconomic and financial stability on a
sustained basis and, 3) steps to address governance weaknesses
such as rule of law and control of corruption that strengthen
scores on institutional quality.

Conversely, downward triggers for Tajikistan's rating could stem
from 1) deterioration in the foreign reserve position that raises
repayment risks on external debt obligations, or 2) significant
delays or underdelivery of the Rogun dam hydropower project that
leads to lower economic activity, tax receipts and foreign
currency revenues than Moody's currently expects, 3) materially
larger fiscal costs than Moody's currently assumes for the
recapitalisation of banks and, 4) lack of progress on reform that
hinders macroeconomic stability and potential foreign direct
investment inflows, weakening the economy's growth potential and
the balance of payments position.

GDP per capita (PPP basis, US$): 3,093 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 6.9% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 6.1% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -4.9% (2016 Estimate) (also known
as Fiscal Balance)

Current Account Balance/GDP: -3.6% (2016 Actual) (also known as
External Balance)

External debt/GDP: 67.5% (2016 Actual)

Level of economic development: Very Low level of economic
resilience

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

On August 28, 2017, a rating committee was called to discuss
assigning a provisional rating to the bond offering of the
Government of Tajikistan. The main points raised during the
discussion were: The committee discussed the nature of the
obligation and concluded that the expected issuance would rank
pari passu with other senior unsecured external debt issued by the
Government of Tajikistan.

The principal methodology used in this rating was Sovereign Bond
Ratings published in December 2016.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.


TAJIKISTAN: S&P Assigns 'B-' Rating to Proposed Debut Eurobond
--------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B-' long-term
global scale issue rating to The Republic of Tajikistan's proposed
debut Eurobond. S&P understands that Tajikistan plans to place the
Eurobond at the beginning of September. The proposed bond amount
is benchmarked at $500+ million, with a tenor of up to 10 years
and an amortizing structure of six equal semiannual installments
starting from 2025.

RATINGS LIST

  Tajikistan(Republic of)
   Senior Unsecured
    US$0 mil nts
     Foreign Currency               B



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


PRIVATBANK: Moody's Raises LC Deposit Rating to Caa2
----------------------------------------------------
Moody's Investors Service has taken rating actions on six
Ukrainian banks. These follow the recent improvement in the
creditworthiness of the Government of Ukraine, reflected in
Moody's upgrade of Ukraine's sovereign bond rating to Caa2, with a
positive outlook, from Caa3 (stable outlook) on August 25, 2017.
The rating actions on the banks were driven by an improved
operating environment, reflected in the rating agency's revision
of its Macro Profile for Ukraine to "Very Weak " from "Very Weak-
", as well as by better financial fundamentals. Moody's has
changed the outlooks to positive from stable on five of the
affected banks' ratings, with the outlook on one bank's local
currency deposit rating remaining stable.

Specifically, Moody's has:

(1) Upgraded the Baseline Credit Assessments (BCAs) of five banks;

(2) Upgraded the long-term Local Currency (LC) deposit ratings of
    five banks and affirmed the LC deposit rating of one bank;

(3) Upgraded the Foreign Currency (FC) deposit ratings of six
    banks;

(4) Upgraded the long-term LC senior unsecured debt rating of one
    bank;

(5) Upgraded the long-term FC senior unsecured debt ratings of two
    banks;

(6) Upgraded the FC subordinated debt ratings of one bank;

(7) Upgraded the National Scale Ratings (NSRs) of four banks;

(8) Upgraded the long-term Counterparty Risk Assessments (CR
    Assessments) of six banks.

RATINGS RATIONALE

OPERATING ENVIRONMENT

Moody's has revised Ukraine's Macro Profile to 'Very Weak' from
'Very Weak -'. While conditions in Ukraine remain highly
challenging, banks' funding conditions have improved given steady
growth in deposits since 2016 and gradually reducing reliance on
wholesale funding. In addition, lower geopolitical risk and a
stabilized local currency have enhanced the appeal of bank
deposits and will also support a more stable operating
environment. A gradual recovery in Ukraine's economy that began in
2016 after a sharp contraction in 2014/15 will continue into 2017-
2018. Moody's expects modest annual GDP growth averaging 2.5% in
2017-2018 and believes that a combination of better economic
conditions and falling interest rates will help to stimulate
credit demand and improve the repayment capacity of existing
borrowers.

--- BANK-SPECIFIC FACTORS

-- PRIVATBANK

The upgrade of state-owned Privatbank's LC deposit rating to Caa2
with a positive outlook from Caa3 (stable outlook), FC deposit
rating to Caa3 with a positive outlook from Ca (stable outlook)
are driven by the upgrade of its standalone BCA to caa3 from ca
and the upgrade of the Ukrainian sovereign ratings.

The upgrade of the bank's BCA is in turn driven by the recovery of
its solvency profile as a result of a recent government capital
injection of UAH 22.5 billion, which has restored the bank's
capital base and will allow Privatbank to comply with the minimum
total capital adequacy ratio of 10%. The bank's caa3 standalone
BCA remains constrained by high asset risk related to its loan
portfolio and after-tax losses.

The bank's long-term LC deposit rating of Caa2 benefits from one
notch of uplift from its BCA due to Moody's assessment of a Very
High probability of government support given the bank's systemic
importance, its recent nationalization and track record of
significant capital and liquidity support since the end of 2016.

- SAVINGS BANK OF UKRAINE

The upgrade of state-owned Savings Bank of Ukraine's long-term LC
deposit and long-term LC and FC senior unsecured debt ratings to
Caa2 with a positive outlook from Caa3 (stable outlook), the
bank's FC deposit rating to Caa3 with a positive outlook from Ca
(stable outlook) and the upgrade of the bank's BCA to caa2 from
caa3 are driven by the upgrade of the sovereign rating. The
changes reflect in turn: (1) the high inter-linkage between the
bank's standalone credit fundamentals and sovereign
creditworthiness, given the bank's high direct exposure to
sovereign debt, bonds guaranteed by the state, and state-owned
companies including Naftogaz (in total, over 400% of the bank's
equity at the end 2016; (2) the bank's strengthened profitability
and capital position with a Tier 1 ratio of 17.9% reported for Q2
2017 (9.6% at the end of 2016); and (3) the bank's adequate
liquidity position.

-- UKREXIMBANK

The upgrades of state-owned Ukreximbank long-term LC deposit and
FC senior unsecured debt ratings to Caa2 with a positive outlook
from Caa3 (stable outlook), the bank's FC deposit rating to Caa3
with a positive outlook from Ca (stable outlook), FC subordinated
debt rating to Caa3 from Ca and the bank's BCA to caa2 from caa3
are driven by the upgrade of the sovereign rating. They reflect in
turn: (1) the high inter-linkage between the bank's standalone
credit fundamentals and sovereign creditworthiness given the
bank's high direct exposure to sovereign debt and bonds guaranteed
by the state (over 500% of the bank's equity capital as at Q2
2017); (2) the bank's strengthened profitability and capital
position with a Tier 1 ratio of 18% reported for Q2 2017 (5.8% at
the end of 2016); and (3) the bank's adequate liquidity position.

-- RAIFFEISEN BANK AVAL

The upgrade of Raiffeisen Bank Aval's long-term LC deposit rating
to Caa1 with a positive outlook from Caa2 (stable outlook), FC
deposit rating to Caa3 with a positive outlook from Ca (stable
outlook) and BCA to caa2 from caa3 are driven by the sovereign
rating action, which lift the previous rating constraints on the
bank's ratings, as well as stand-alone improvements to the bank's
financial fundamentals. These improvements reflect the bank's: (1)
sound capital buffer with Tier1 and total CAR under Basel I
amounting to high 19.8% and 22.2% respectively as of end-2016
given solid earnings generation and recent capital injections, (2)
good coverage of problem loans by reserves of more than 90%, which
is the highest level among rated banks in Ukraine, and (3)
improved bottom-line profitability on the back of reduced credit
costs and widening Net Interest Margin.

Moody's continues to incorporate a moderate probability of
affiliate support for Riaffeisen Bank Aval from the bank's parent,
Raiffeisen Bank International AG (LT bank deposits Baa1 / senior
unsecured Baa1 Stable, BCA ba2), resulting in a one-notch uplift
to the bank's long-term deposit ratings.

-- PIVDENNYI BANK, JSCB

The upgrade to Pivdennyi Bank, JSCB (Pivdennyi) long-term FC
deposit rating to Caa3 from Ca, and revision of the outlook to
positive from stable on all long-term deposit ratings follows the
sovereign rating action on Ukraine.

The bank's ratings benefit from (1) significant cross-border
operations through a subsidiary bank in Latvia, which accounts for
around 40% of the group's assets; (2) gradually decreasing problem
loans and improving recurring profitability; as well as (3)
limited wholesale debt repayments and an ample liquidity cushion
(at 37% of assets at H1 2017), mainly kept through the Latvian
subsidiary bank at other non-resident correspondent banks.
Pivdenniy is currently compliant with the regulatory minimum CAR
requirements and plans additional UAH130 million Tier1 capital
injection by the end of 2017, which will support its capital
buffer.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlooks on the long-term ratings of these five
Ukrainian bank ratings reflect the positive outlook on the
sovereign rating and these bank's ratings are likely to move in
tandem with the sovereign given the close relationship between the
their operating environment, balance sheet strength and the
government's own credit fundamentals.

-- PROMINVESTBANK

The upgrade of Prominvestbank's long-term LC deposit rating to
Caa2 with a stable outlook from Caa3 (stable outlook) and the
bank's FC deposit rating to Caa3 with a positive outlook from Ca
(stable outlook) is driven by the upgrade of the bank's BCA to
caa3 from ca and reflects the bank's strengthened capital position
with a Tier 1 ratio of 23.37% reported for Q2 2017 (5.9% at the
end of 2016), supported by large capital injections provided by
its parent Vnesheconombank (Ba1 stable) in 2016-H1 2017. At the
same time, the bank's BCA remains constrained by: (1) weak asset
quality; (2) loss making performance and (3) currently limited
business activity.

The bank's long-term LC deposit rating of Caa2 benefits from one
notch of uplift from its BCA due to Moody's assessment of a
moderate probability of affiliate support from the bank's parent
Vnesheconombank.

FOREIGN CURRENCY DEPOSIT RATINGS

Moody's has upgraded FC deposit ratings with a positive outlook of
six banks to Caa3 following the change in the country's FC deposit
ceiling to Caa3 from Ca. The FC deposit ratings of the banks
continue to be constrained by the country's FC bank deposit
ceiling.

WHAT COULD MOVE THE RATINGS UP/DOWN

Moody's considers that banks' ratings could be upgraded following
further improvement of the country's macro-economic environment,
combined with an improvement in banks' standalone credit profiles
and/or positive rating action(s) on the sovereign
ratings/ceilings.

Conversely, negative pressure on the bank's ratings could result
from (1) increased volatility in the operating environment,
leading to growing pressure on the banks' standalone credit
profiles, increasing insolvency risk and/or (2) negative rating
action(s) on the sovereign ratings.

THE SPECIFIC RATING ACTIONS IMPLEMENTED ARE:

Issuer: Privatbank

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to Caa2 from Caa3,
    Outlook Changed To Positive From Stable

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- Adjusted Baseline Credit Assessment, Upgraded to caa3 from ca

-- Baseline Credit Assessment, Upgraded to caa3 from ca

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa3(cr)

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Savings Bank of Ukraine

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to Caa2 from Caa3,
    Outlook Changed To Positive From Stable

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- Senior Unsecured Regular Bond/Debenture, Upgraded to Caa2 from
    Caa3, Outlook Changed To Positive From Stable

-- NSR LT Bank Deposits, Upgraded to B1.ua from Caa2.ua

-- NSR Senior Unsecured Regular Bond/Debenture, Upgraded to B1.ua
    from Caa2.ua

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Ukreximbank

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to Caa2 from Caa3,
    Outlook Changed To Positive From Stable

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- Senior Unsecured Regular Bond/Debenture, Upgraded to Caa2 from
    Caa3, Outlook Changed To Positive From Stable

-- Subordinate, Upgraded to Caa3 from Ca

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Prominvestbank

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to Caa2 from Caa3,
    Outlook Remains Stable

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- NSR LT Bank Deposits, Upgraded to B2.ua from Caa2.ua

-- Adjusted Baseline Credit Assessment, Upgraded to caa2 from
    caa3

-- Baseline Credit Assessment, Upgraded to caa3 from ca

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Outlook Actions:

-- Outlook, Changed To Stable(m) From Stable

Issuer: Raiffeisen Bank Aval

Upgrades:

-- LT Bank Deposits (Local Currency), Upgraded to Caa1 from Caa2,
    Outlook Changed To Positive From Stable

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- NSR LT Bank Deposits, Upgraded to Baa3.ua from B2.ua

-- Adjusted Baseline Credit Assessment, Upgraded to caa1 from
    caa2

-- Baseline Credit Assessment, Upgraded to caa2 from caa3

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Pivdennyi Bank, JSCB

Upgrades:

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- NSR LT Bank Deposits, Upgraded to B1.ua from B2.ua

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Affirmations:

-- LT Bank Deposits (Local Currency), Affirmed Caa2, Outlook
    Changed To Positive From Stable

-- Adjusted Baseline Credit Assessment, Affirmed caa2

-- Baseline Credit Assessment, Affirmed caa2

Outlook Actions:

-- Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

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


SBERBANK PJSC: Moody's Confirms Caa2 Long-Term LC Deposit Rating
----------------------------------------------------------------
Moody's Investors Service has concluded the rating review of
Ukrainian Sberbank PJSC, initiated on April 7, 2017. Moody's has
confirmed the long-term LC deposit ratings at Caa2 with a Stable
outlook, the adjusted baseline credit assessment (BCA) at caa2,
and the national scale rating at B2.ua. At the same time, the
rating agency upgraded Sberbank PJSC's standalone BCA to caa3 from
ca, long-term FC deposit rating to Caa3 Positive from Ca Stable
and long-term Counterparty Risk Assessment to Caa1(cr) from Caa2
(cr).

RATINGS RATIONALE

The upgrade of Sberbank PJSC's BCA to caa3 from ca reflects its
improved solvency indicators, recovered capitalization, improved
loan loss reserves coverage and profitability metrics. The bank is
currently compliant with the regulatory prescriptions on
capitalization levels with the reported regulatory capital
adequacy ratio (CAR) of 9.38% as of August 1, 2017 owing to the
capital injections provided by the parent. Sberbank PJSC has
improved its problem loans coverage to tolerable level of around
60% as of H1 2017, which is comparable to other Ukrainian rated
banks. The bank's profitability has recovered over the past three
quarters due to lower funding and credit costs. However, it is
still constrained by limited business opportunities given its
status as a Russian bank's subsidiary that is currently for sale.
Moody's expects the bank to be close to breakeven in the next 12
months.

Moody's has revised the affiliate support assessment for Ukrainian
Sberbank PJSC from Russian Sberbank (FC deposit rating Ba2 stable
/ senior unsecured debt Ba1 stable, BCA ba1) to moderate from
high, resulting in a one-notch uplift for the bank's local-
currency deposit rating from its caa3 BCA. This is based on
Sberbank's intention to sell the subsidiary, while the parent
still continues to provide some support to the bank. A previously
announced agreement with a consortium of investors, including
Latvian Norvik Bank PJSC and a Belarusian private company, has not
been approved by the regulator, and the owner is still seeking a
new buyer. There are no new recapitalization plans for Sberbank
PJSC so far. At the same time, Moody's current support assumptions
are based on the full control and ownership by Sberbank, the
provision of financial support from the parent, as well as
reputational risks stemming from sharing Sberbank's brand in
Ukraine. Parental funding comprised around 67% of the bank's
liabilities as of H1 2017 under IFRS.

OUTLOOK

The stable outlook on the bank's Caa2 long-term local-currency
deposit rating reflects the bank's stabilized financial metrics,
amid an improving operating environment in Ukraine.

The positive outlook on the bank's Caa3 long-term foreign-currency
deposit rating is driven by the positive outlook on sovereign
ratings.

WHAT COULD MOVE RATINGS UP OR DOWN

Moody's would considers a positive rating action should there be
an improvement in the bank's standalone credit profile, in
particular further strengthening of capitalization levels,
improved profitability and asset quality along with an improvement
in the domestic operating environment and positive rating
action(s) on the sovereign ratings/ceilings.

Moody's would consider a negative rating action on the bank's
long-term LC deposit rating following the bank's sale and revision
of affiliate support. A negative rating action on the bank's BCA
and long-term foreign currency deposit could occur in case of
increased volatility in the operating environment, leading to
growing pressure on the banks' stand-alone credit profile, and/or
negative rating action(s) on the sovereign ratings, which is
currently unlikely.

LIST OF AFFECTED RATINGS

Issuer: Sberbank PJSC

Upgrades:

-- LT Bank Deposits (Foreign Currency), Upgraded to Caa3 from Ca,
    Outlook Changed To Positive From Stable

-- Baseline Credit Assessment, Upgraded to caa3 from ca

-- LT Counterparty Risk Assessment, Upgraded to Caa1(cr) from
    Caa2(cr)

Confirmations:

-- LT Bank Deposits (Local Currency), Confirmed at Caa2, Outlook
    Changed To Stable From Rating Under Review

-- NSR LT Bank Deposits, Confirmed at B2.ua

-- Adjusted Baseline Credit Assessment, Confirmed at caa2

Outlook Actions:

-- Outlook, Changed To Stable(m) From Rating Under Review

PRINCIPAL METHODOLOGY

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



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


GREGSONS SOLICITORS: In Administration, Buyers Sought for Firm
--------------------------------------------------------------
Nick Jackson at BusinessDesk reports that Gregsons Solicitors has
gone into administration.

Sean Bucknall -- sean.bucknall@quantuma.com -- and Andrew Hosking
-- andrew.hosking@quantuma.com -- of Quantuma, based in Brighton,
have been appointed as administrators, BusinessDesk relates.

According to BusinessDesk, Quantuma director Bucknall said:
"Regrettably, the firm has had to be placed into administration
and in this instance it has not been possible to secure a sale of
the entire business as a going concern to a successor practice.

"All of the firm's live matters were sold to a number of separate
firms of solicitors prior to the company entering administration.

"The terms of the sales facilitate the ongoing servicing of client
interests and for all realised work in progress to be paid into
the administration, thereby maximizing the return to creditors.

"A Creditors' Voluntary Arrangement had been proposed by the
directors but this was rejected by the requisite majority of
creditors."

Following the appointment of Quantuma, the administrators
completed the sale of the conveyancing department and its work in
progress to Metamorph Law, BusinessDesk discloses.

Gregsons Solicitors is a Wirral-based law firm.  The company has
offices at Birkenhead, Crosby on Merseyside and the other at
Flint.


JAGUAR LAND: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Jaguar Land Rover Automotive plc's
(JLR) Long-Term Issuer Default Rating (IDR) and senior unsecured
ratings at 'BB+'. The Outlook is Stable.

The ratings reflect JLR's strong positioning in the premium
segment and successful track record in expanding the group's
product portfolio in recent years. However, the ratings also
reflect the group's limited scale compared with larger peers in
the sector, notably in the premium segment.

Profitability has fallen materially as a result of high levels of
investments in recent years, as well as increased marketing costs.
Nevertheless profitability remains robust for the ratings, and
cash generation is among the strongest in the industry. JLR's
capital structure and liquidity remain strong, with a net cash
position even after Fitch's adjustments for operating leases and
working capital movements.

KEY RATING DRIVERS

Operating Margin Recovery Expected: Fitch expects JLR's operating
margin to recover towards 8% as the group benefits from a renewed
product line-up and improved production cost footprint as the
Slovakian plant ramps up. Underlying cash generation has also
declined but the funds from operations (FFO) margin remains among
the strongest in the industry (13% in FY17). JLR's operating
margin fell to 4.8% in financial year to March 31, 2017 from 12.4%
in FY15 due to a significant increase in depreciation and
amortisation from higher investment, as well as competitive
pricing.

Strong Demand Drives Volumes: Fitch expects JLR's Land Rover
products -- mainly luxury SUV's -- to continue to benefit from
relentless demand in both developed and developing markets. JLR's
successful launch of the Jaguar XE and F-PACE have helped fill
important segments where the group was previously absent and Fitch
expects the E-PACE to benefit from substantial demand in the
popular small SUV segment. Fitch projects sales growth will slow
in FY18 due to lower UK demand, followed by high-single-digit unit
sales growth from 2019 on product line-up and production capacity
expansion.

Capex to Remain High: Fitch expects JLR's investments in capacity
expansion, engine manufacturing, vehicle architecture and new
technologies, to contribute to negative free cash flow (FCF) of up
to GBP1 billion in FY18 despite strong cash flows from operations.
In particular, investments include a new manufacturing facility in
Slovakia with an initial capacity of 150,000 units that is
targeted for completion in 2018. Fitch expects positive FCF to
return from 2019 as capex normalises and recent investments drive
additional volumes. Over the longer term, Fitch expects further
R&D investments, notably to develop new powertrains and meet
multiple emission requirements, and to participate in new sector
and mobility trends, will continue to constrain earnings and cash
generation.

Robust Financial Profile: Fitch expects JLR to maintain a healthy
financial profile and ample liquidity. Fitch forecasts FFO-
adjusted gross leverage of around 1.0x at FYE18 and FFO-adjusted
net leverage around breakeven (FY17: 1.2x and -0.2x respectively).
Fitch adds GBP600 million to JLR's gross debt to adjust for
operating leases and treats GBP487 million as restricted cash.
Total reported debt was GBP3.5 million at end-1QFY18, of which
GBP159 million were short-term maturities.

Limited Scale and Product Diversity: JLR's scale and range of
products are smaller than the group's premium-segment peers, which
raise the risk of volatility in earnings and cash flow, and
constrain the business profile. However, recent heavy investments
are increasing JLR's product breadth and volume, thereby helping
to diminish this business risk. The group also benefits from its
brands' solid reputation and history and, notably, Land Rover's
undisputed positioning in the booming SUV segment.

Geographic Diversification Improving: JLR's efforts over the last
five years have helped the group to achieve a more balanced
geographic mix, with over half of retail sales volumes outside of
UK and Europe. In particular, despite the group's high production
exposure to the UK, Fitch does not expect any major impact from
Brexit. JLR's growth in China has been rapid and the group is the
fourth-largest automaker in the premium segment by volumes after
Audi, BMW and Mercedes.

More Challenging Emissions Regulation: Tightening emission
requirements in both developed and developing countries remain a
challenge for JLR, as its product portfolio is currently weighted
towards larger, less fuel-efficient SUVs. However, a further
broadening of its product line to include more compact, fuel-
efficient models would reduce its exposure to the risk of evolving
environmental legislation. In the longer term, market success of
its upcoming electric I-Pace as well as hydrid electric vehicles -
- which are under development -- would demonstrate an ability to
transition to non-conventional drivetrains, though given limited
initial volumes the impact of total fleet emissions would likely
be limited in the near term.

DERIVATION SUMMARY

JLR is positioned in the profitable premium segment but lacks the
scale of its much larger German competitors Daimler AG (A-/Stable)
and BMW AG, and the multi-brand Volkswagen AG (BBB+/Stable). The
group's limited product portfolio and lower diversification are a
constraint on the ratings, but an expanding product portfolio and
a longer positive track record will be positive for the group.

In recent years both profitability and cash generation have been
stronger than its mass market peers Fiat Chrysler Automobiles N.V.
(BB-/Positive), Peugeot S.A. (BB+/Stable) and Renault SA (BBB-
/Positive), and in line with German premium manufacturers'. The
cost of recent investments has reduced this advantage; however,
Fitch believes the positive impact of these investments (both in
new products and lower cost production footprint) will help JLR
regain some ground.

JLR is currently undergoing a period of significant expansion,
both with respect to capacity and product range, resulting in
temporarily negative FCF, though through the cycle strong
operational cash flow has resulted in industry- leading FCF
levels.

JLR's capital structure is solid with consistently FFO adjusted
gross and net leverage of around 1x and breakeven respectively in
recent years, comparable to Daimler's and VW's. Renault's and
PSA's leverage have declined to similar levels as JLR's, after
significant debt increases following the 2008-2009 industry crisis
and 2010-2012 recession. However, Fitch believes JLR's capital
structure has been more stable and consistent through the cycle.

KEY ASSUMPTIONS

Fitch's key assumptions within its ratings case for the issuer
include:

- Low single-digit revenue growth in 2018 and 2019 because of
   weakening demand in the UK, pricing pressure and increasing
   entry level sales, offset by North American and Chinese
   growth;
- EBIT margin remaining depressed at around 5%-6% due to
   increased D&A from large investments, as well as continued
   pricing pressure;
- FFO margin of 14% in 2018, increasing to 15% thereafter, with
   improvements driven by increasing production in low- cost
   countries as Slovakian operations ramp up;
- Capex of GBP4.2 billion in 2018 as the Slovakian plant is
   built, and falling back moderately thereafter;
- Dividends remain at GBP150 million.

RATING SENSITIVITIES

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

- Further product diversification and an increase in scale
   towards GBP30 billion-GBP40 billion sales, combined with
   additional positive track record in maintaining robust
   profitability, including an operating margin consistently
   above 6% and a positive FCF margin of around 1.5%, and a
   strong financial profile, including FFO-adjusted net leverage
   below 0.5x on a sustained basis.

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

- Deterioration in key credit metrics including FFO-adjusted net
   leverage to above 1.5x on a sustained basis;
- Material weakening of JLR's liquidity position;
- Problems with implementation of new product introduction and
   production footprint expansion or decreasing market share;
- Sustained negative FCF.

LIQUIDITY

Robust Liquidity, Net Cash Positive: At end-1QFY18, JLR had
reported cash and cash equivalents of GBP1.6 billion, short-term
liquidity deposits of GBP2.5 billion, and committed undrawn
facilities of GBP1.9 billion maturing in 2022. Total reported debt
was GBP3.5 million at end-1QFY18, of which GBP159 million were
short-term maturities. When calculating leverage and liquidity,
Fitch includes short-term deposits, and deducts 2% of sales
(equivalent to around GBP0.5 billion) to account for cash needed
for intra-year working capital volatility.



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


* BOOK REVIEW: Hospitals, Health and People
-------------------------------------------
Author: Albert W. Snoke, M.D.
Publisher: Beard Books
Softcover: 232 pages
List Price: $34.95

Review by Francoise C. Arsenault
Order your personal copy today at
http://www.beardbooks.com/beardbooks/hospitals_health_and_people.h
tml

Hospitals, Health and People is an interesting and very readable
account of the career of a hospital administrator and physician
from the 1930's through the 1980's, the formative years of
today's health care system. Although much has changed in
hospital administration and health care since the book was first
published in 1987, Dr. Snoke's discussion of the evolution of
the modern hospital provides a unique and very valuable
perspective for readers who wish to better understand the forces
at work in our current health care system.

The first half of Hospitals, Health and People is devoted to the
functional parts of the hospital system, as observed by Dr.
Snoke between the late 1930's through 1969, when he served first
as assistant director of the Strong Memorial Hospital in
Rochester, New York, and then as the director of the Grace-New
Haven Hospital in Connecticut. In these first chapters, Dr.
Snoke examines the evolution and institutionalization of a
number of aspects of the hospital system, including the
financial and community responsibilities of the hospital
administrator, education and training in hospital
administration, the role of the governing board of a hospital,
the dynamics between the hospital administrator and the medical
staff, and the unique role of the teaching hospital.

The importance of Hospitals, Health and People for today's
readers is due in large part to the author's pivotal role in
creating the modern-day hospital. Dr. Snoke and others in
similar positions played a large part in advocating or forcing
change in our hospital system, particularly in recognizing the
importance of the nursing profession and the contributions of
non-physician professionals, such as psychologists, hearing and
speech specialists, and social workers, to the overall care of
the patient. Throughout the first chapters, there are also many
observations on the factors that are contributing to today's
cost of care. Malpractice is just one example. According to
Dr. Snoke, "malpractice premiums were negligible in the 1950's
and 1960's. In 1970, Yale-New Haven's annual malpractice
premiums had mounted to about $150,000." By the time of the
first publication of the book, the hospital's premiums were
costing about $10 million a year.

In the second half of Hospitals, Health and People, Dr. Snoke
addresses the national health care system as we've come to know
it, including insurance and cost containment; the role of the
government in health care; health care for the elderly; home
health care; and the changing role of ethics in health care. It
is particularly interesting to note the role that Senator Wilbur
Mills from Arkansas played in the allocation of costs of
hospital-based specialty components under Part B rather than
Part A of the Medicare bill. Dr. Snoke comments: "This was
considered a great victory by the hospital-based specialists. I
was disappointed because I knew it would cause confusion in
working relationships between hospitals and specialists and
among patients covered by Medicare. I was also concerned about
potential cost increases. My fears were realized. Not only
have health costs increased in certain areas more than
anticipated, but confusion is rampant among the elderly patients
and their families, as well as in hospital business offices and
among physicians' secretaries." This aspect of Medicare caused
such confusion that Congress amended Medicare in 1967 to provide
that the professional components of radiological and
pathological in-hospital services be reimbursed as if they were
hospital services under Part A rather than part of the copayment
provisions of Part B.

At the start of his book, Dr. Snoke refers to a small statue,
Discharged Cured, which was given to him in the late 1940's by a
fellow physician, Dr. Jack Masur. Dr. Snoke explains the
significance the statue held for him throughout his professional
career by quoting from an article by Dr. Masur: "The whole
question of the responsibility of the physician, of the
hospital, of the health agency, brings vividly to mind a small
statue which I saw a great many years ago.it is a pathetic
little figure of a man, coat collar turned up and shoulders
hunched against the chill winds, clutching his belongings in a
paper bag-shaking, tremulous, discouraged. He's clearly unfit
for work-no employer would dare to take a chance on hiring him.
You know that he will need much more help before he can face the
world with shoulders back and confidence in himself. The
statuette epitomizes the task of medical rehabilitation: to
bridge the gap between the sick and a job."

It is clear that Dr. Snoke devoted his life to exactly that
purpose. Although there is much to criticize in our current
healthcare system, the wellness concept that we expect and
accept today as part of our medical care was almost nonexistent
when Dr. Snoke began his career in the 1930's. Throughout his
50 years in hospital administration, Dr. Snoke frequently had to
focus on the big picture and the bottom line. He never forgot
the importance of Discharged Cured, however, and his book
provides us with a great appreciation of how compassionate
administrators such as Dr. Snoke have contributed to the state
of patient care today.

Albert Waldo Snoke was director of the Grace-New Haven Hospital
in New Haven, Connecticut from 1946 until 1969. In New Haven,
Dr. Snoke also taught hospital administration at Yale University
and oversaw the development of the Yale-New Haven Hospital,
serving as its executive director from 1965-1968. From 1969-
1973, Dr. Snoke worked in Illinois as coordinator of health
services in the Office of the Governor and later as acting
executive director of the Illinois Comprehensive State Health
Planning Agency. Dr. Snoke died in April 1988.



                            *********

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 Amazon.com.  Go to
http://www.bankrupt.com/booksto 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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Joseph Cardillo at
856-381-8268.


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