TCREUR_Public/170912.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Tuesday, September 12, 2017, Vol. 18, No. 181



AZERBAIJAN: Ba2 Rating Reflects Vulnerability, Moody's Says


ERPE MIDCO: Moody's Assigns B2 Corp Family Rating, Outlook Stable


PARTNERSHIP FUND: Fitch Affirms BB+ Long-Term IDR, Outlook Stable


AIR BERLIN: Hans Rudolf Woehrl Submits EUR500-Mil. Offer


ABBEY INT'L: Moody's Assigns B1 CFR, Outlook Stable


LSF10 XL: Moody's Affirms B2 Corp. Family Rating, Outlook Stable


* NETHERLANDS: Number of Corporate Bankruptcies Down in August


PORTO CITY: Fitch Affirms BB+ Long-Term IDR, Outlook Positive
PORTUGAL: 60+ & 90+-Day RMBS Delinquencies Improve, Moody's Says


LIPETSK REGION: Fitch Affirms BB+ IDR, Outlook Stable
RUSHYDRO PJSC: Moody's Hikes CFR to Ba1, Outlook Stable
TULA REGION: Fitch Affirms BB Long-Term IDR, Outlook Stable


LIBERBANK: Moody's Affirms B1 LT Deposit Rating, Outlook Stable


SELECTA GROUP: Moody's Affirms Caa1 CFR, Outlook Stable


TURKIYE PETROL: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR

U N I T E D   K I N G D O M

BELL POTTINGER: Middle East Business Seeks Split
CARILLION PLC: Unveils Management Changes as Part of Turnround
CO-OP BANK: Moody's Raises Counterparty Risk Assessment to B3
CO-OP BANK: Moody's Raises Senior Unsecured Debt Rating to Caa2
DELPHI JERSEY: Moody's Assigns Ba3 CFR & B1 Senior Notes Rating

TATA STEEL: Ditches GBP15-Bil. British Pension Scheme



AZERBAIJAN: Ba2 Rating Reflects Vulnerability, Moody's Says
Azerbaijan's Ba2 rating and stable outlook reflect the
vulnerability of the economy, government finances and banking
system to oil price volatility, Moody's Investors Service said in
an annual report entitled "Government of Azerbaijan -- Ba2
stable, Annual Credit Analysis".

"The drop in oil prices resulted in a prolonged recession in
Azerbaijan and has put pressure on the government and external
finances," said Kristin Lindow, a Moody's Senior Vice President
and co-author of the report. "Although the government's finances
are supported by a large sovereign wealth fund with a value
equivalent to nearly 90% of GDP, the outlook for oil and gas
revenue is sufficiently constrained that the government has
limited flexibility to use the fund's resources for counter-
cyclical fiscal policy that would soften the impact of lower oil

Moody's expects that Azerbaijan's economy will contract for the
second consecutive year in 2017. In the first half of the year,
the economy shrank by 1.4% compared to a year earlier, and
Moody's believes that the contraction for the whole year will be
at a similar rate.

Oil prices remain relatively low and credit is continuing to
shrink rapidly amid ongoing banking sector distress. It is
unclear whether the economy will hit bottom this year in light of
the government's pro-cyclical fiscal consolidation, tight
monetary policy and a managed float of the exchange rate that is
not allowing the manat currency to find its market-determined

The government and central bank have tried to shore up the
country's banking sector over the past year, a process that has
cost roughly 30% of GDP, in particular through the cost of
restructuring the country's largest bank, the International Bank
of Azerbaijan (IBA), which is nearly 100% state-owned.

Despite the restructuring, Moody's believes that the bank will
still face challenges in restoring asset quality and
profitability amidst managing its remaining open foreign-currency
position. The wider banking system will also remain weak for some

The country's gross debt-to-GDP ratio, including explicit
government guarantees, increased steeply to 50.7% in 2016 from
14.4% in 2014 due mainly to the large depreciation of the manat
and an increase in government guaranteed debt.

Given still weak economic dynamics, Moody's anticipates fiscal
deficits of 2.9% and 1.8% of GDP in 2017 and 2018, respectively,
assuming oil prices stay in the range of $45-$55 per barrel over
the period.

Decisive action to address the key challenges in the country's
credit profile, namely the erosion in fiscal strength, the lack
of economic and export diversity and the weak banking sector,
would generate upward pressure on the rating.

However, any improvement would be unreliable if founded solely on
rising oil prices, as distinct from a gradual diversification of
the economy to address the high dependence on oil, and a more
strongly capitalized, liquid banking system.

The ratings would come under negative pressure if the
government's balance sheet deterioration were to continue beyond
2018, particularly if that was associated with further banking
sector shocks and increased budgetary reliance on the sovereign
wealth fund's assets that further eroded the country's net
creditor position.


ERPE MIDCO: Moody's Assigns B2 Corp Family Rating, Outlook Stable
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and a B2-PD probability of default rating to ERPE MIDCO
LIMITED (EML). Moody's also assigned provisional (P)B2 instrument
ratings to the EUR320 million senior facilities (SF) and the
EUR80 million revolving credit facility (RCF) with ERPE BIDCO
LIMITED the borrower of these facilities. The outlook is stable.


Given high initial leverage the B2 CFR is weakly positioned, but
includes the expectation that the environment for the company
will be positive for the next one and half years, and therefore
the leverage to improve quickly into the range that is required
to maintain the B2 rating.

The rating assignment also reflects the company's improved end
market exposure after its 2016 acquisition of Hesco that now
gives EML access to the oil and gas, utility and data centre
markets in addition to its legacy exposure to the military and
international organisations. Hesco and EML's own high security
business follows an asset light and largely an assembly business
model. EML can flexibly manage its cost base in response to
volatile end markets. Nevertheless, its Baseline business that
accounts for about half of group revenues is more capital intense
and the market is more fragmented. The fragmented market results
in more competition, lower margins compared to the high security
business and price pressure that can arise at times when input
costs such as for steel or zinc increase. Most Baseline sales are
spot priced for each order, allowing to rapidly pass on higher
input prices to customers. Depending on market conditions there
can be a lag of up to three months or more.

Moody's expects EML under the new ownership of Carlyle funds to
develop its North American business further and to play an active
role in industry consolidation. The market for EML's Baseline
products, fences, mesh and access control for farming and
residential applications, in particular is very fragmented and
competitive. EML will play in Moody's view an active role to
consolidate the market with acquisitions funded by either cash on
hand, drawings under the RCF or by utilising the incremental
facility the company can arrange under the SF agreement.
Economies of scale in production, end market and regional
diversification as well as market penetration are the rationale
for consolidation in the perimeter solution market.

EML's leverage of debt/EBITDA (Moody's adjusted) at 6.5x pro-
forma the new capital structure and per fiscal year end 2017 is
high, yet the company's ability to generate EBITA margins of
around 12.0% that translate into positive free cash flow (FCF)
generation give propensity for deleveraging towards 6.0x by
fiscal year end 2018 and to below 6.0x thereafter. Whilst Moody's
expects ongoing restructuring, the associated cash costs will be
fairly low (not more than EUR5 million in any year), as the
company has in the past carried out more meaningful and more
costly restructuring such as the recent closing of its Sheffield

Liquidity is solid and supported by a EUR80 million RCF that
Moody's assumes is undrawn at closing and could be drawn to cover
working capital swings due to seasonality or lumpy order intake
for its high security products. Annual capital expenditure
requirements amount to about 2.5% of sales, or about EUR11-12


The outlook is stable and assumes that the company has the
ability to pass on rising input costs to customers, and does not
acquire companies that increases leverage permanently to above


Moody's rates the proposed SF in line with the assigned B2 CFR.
The SF encompass a proposed 6-year EUR80 million revolving credit
facility (RCF), a proposed 7-year EUR320 million term loan B
(TLB). Borrowers of the SF are Erpe Bidco Limited (a direct
subsidiary of the ultimate parent - Erpe Midco Limited). The
tranches of the SF are senior secured. As Moody's views the
assets pledged as security (shares, intragroup receivables) as
essentially unsecured and as not all subsidiaries provide
security Moody's has assumed the facilities to be akin to senior
unsecured in Moody's waterfall analysis to reflect the limited
asset coverage. Operating entities of the group guarantee at
least 80%.


Moody's could upgrade the ratings if (1) Debt/EBITDA were to be
sustainably below 5.0x; (2) EBITA margins to be maintained at the
current level (ca. 13%) and (3) FCF/Debt in the high single
digits (%). Ratings could be downgraded if (1) Debt/EBITDA were
to be above 6.0x for a sustained period of time; (2) EBITA
margins were to decline to below 10%; and (3) negative FCF/Debt.

Erpe Midco Limited, headquartered in Gent/Belgium, is a leading
outdoor perimeter security systems and solutions providers. The
company employs around 1,500 people and has eleven production and
assembly facilities globally. In 2016, Praesidiad acquired HESCO,
a UK-based manufacturer of deployable barrier systems. Pro-forma
for the acquisition as of 2016, 55% of the combined annual sales
are generated with residential, temporary fencing systems,
farming, cable and wire as well as low and medium security
perimeter protection and control products. The remainder (high
security) is split between utilities, oil & gas, military, other
high security and events. The pro-forma combined 2016 sales
amounted to EUR401.7 million. Erpe Midco Limited is ultimately
owned by funds of the Carlyle Group.

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.



-- Corporate Family Rating, Assigned B2

-- Probability of Default Rating, Assigned B2-PD


-- Senior Secured Bank Credit Facility, Assigned (P)B2

Outlook Actions:


-- Outlook, Assigned Stable


-- Outlook, Assigned No Outlook


PARTNERSHIP FUND: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Georgia's JSC Partnership Fund's (PF)
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) at 'BB-' with Stable Outlooks. The agency has also affirmed
the company's Short-Term Local-Currency IDR at 'B'.

PF's ratings are equalised with those of Georgia (BB-/Stable/B),
which reflects the Fund's legal status, tight control by the
government and 100% state ownership and its important role in the
government's economic policy. Fitch uses its public-sector
entities rating criteria in its analysis of PF and views it as
being credit-linked to the sovereign. Fitch views the Georgian
government's ability and intent to support the fund's potential
issued or guaranteed debt as a key factor in determining rating
equalisation with the sovereign.


The affirmation reflects PF's unchanged special legal status as
an extension of the government in managing its strategic assets
and acting as a development arm and quasi-budget vehicle of the
government. Fitch views Georgia's willingness to support PF as
largely unchanged, as the fund remains important state agent in
implementing its development agenda.

Legal Status Assessed as Stronger
PF is 100% owned by the state and operates under its own act -
Georgia's law on JSC Partnership Fund, highlighting its unique
nature and special status. Its mandate is to promote private
equity investments in Georgia and oversee key national
infrastructure corporations. The state endowed PF with 100%
stakes in Georgian Railway (GR, B+/Stable), JSC Georgian Oil and
Gas Corporation (GOGC, BB-/Stable), JSC Georgian State
Electrosystem, and JSC Electricity System Commercial Operator.

Strategic Importance Assessed as Stronger
Fitch views the fund as an entity of strategic importance.
Georgia's government uses PF as a financing vehicle to promote
investments stimulating growth of the national economy. The
fund's aim is to develop private equity investments in wide range
of economic projects generating positive economic returns, a
market which is currently undeveloped in Georgia. Along with
private funding PF co-invests in agriculture, manufacturing, real
estate and energy.

While the Georgian government remains committed to its economic
development agenda, Fitch believes the fund's strategic role in
facilitating investments in the backbone sectors of national
economy, particularly in the energy sector and infrastructure
development, will not change.

Control Assessed as Stronger
Fitch views the government's control and oversight over PF's
operations as strong. The fund's supervisory board is chaired by
the Georgian prime minister and composed of leading cabinet
members and independent directors from the private sector. The
state mandates PF's key policies on debt, dividends and
investments, appoints its audit committee and external auditor,
monitors and controls the use of government funds and property
allocated to the entity.

Integration Assessed as Stronger
In Fitch's view, PF is deeply integrated with the national
budgetary system as it holds stakes in the largest national
corporations in Georgia, and plays the role of the government's
quasi-budget agent. Fitch treat recent state contributions to the
fund in the form of pipe-lines, land plots and other property
along with unchanged finding model via dividends from its
portfolio companies as a rating support factor and evidence of
financial integration with the sovereign.

Debt and Liquidity
The bulk of PF's debt stock comprises a USD150 million bank loan
from Credit Suisse, maturing in 2020. In September 2017 the fund
should make about USD31 million interest and principal
amortisation payment. To meet this obligation the fund already
accumulated USD32.3 million at the special reserve account as of
1 September.

In 2018-2020, PF will experience repayment peak with debt
servicing increasing to around USD50 million annually. This will
require higher dividend inflow (averaged about USD20 million in
2015-2017), which may be difficult to achieve taking into account
the slow recovery of PF subsidiaries' profitability. This is
mitigated by a strong cash position (USD104 million as of end-
2016). PF could also occasionally borrow from its key
subsidiaries (GR and GOGC).


Sovereign-Linked Ratings: Any positive rating action on Georgia,
coupled with continued support from the state, would be rating
positive, as PF is credit linked to the sovereign.

Weaker links with the state would be rating negative, a downgrade
of Georgia would also be negative.


AIR BERLIN: Hans Rudolf Woehrl Submits EUR500-Mil. Offer
Edward Taylor at Reuters reports that German aviation investor
Hans Rudolf Woehrl late on Sept. 10 said a company controlled by
his INTRO Group had submitted a EUR500 million (US$600.70
million) offer to buy insolvent Air Berlin.

According to Reuters, Mr. Woehrl, who bought German airline
Deutsche BA from British Airways for a nominal EUR1 in 2003, said
Air Berlin's insolvency administrator had been shown a letter of
credit for EUR50 million, to guarantee an initial payment for his

INTRO Verwaltungs GmbH said the full offer was for EUR500
million, Reuters relates.

"It is a bid for the whole of Air Berlin," Reuters quotes Mr.
Woehrl's INTRO-Verwaltungs GmbH as saying in a statement on Sept.
10, adding that it planned to pay a further EUR450 million in

INTRO said in the statement airlines Lufthansa, Condor, and
Germania as well as travel firm TUI, and investor Niki Lauda had
been informed about an opportunity to "participate" in the Woehrl
bid, Reuters notes.

INTRO, as cited by Reuters, said airlines were now being invited
to offer to charter Air Berlin's aircraft.

                       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.


ABBEY INT'L: Moody's Assigns B1 CFR, Outlook Stable
Moody's Investors Service has assigned a B1 Corporate Family
Rating (CFR) and B1 issuer rating, both local and foreign
currency to Abbey International Finance Limited a leasing and
insurance business, established in Ireland and with assets
predominantly in the United States of America. A stable outlook
has also been assigned to Abbey's issuer rating.


Moody's B1 ratings reflect Abbey's high degree of dependence on a
single client, weak franchise but conservative financial

Abbey is a provider of leasing equipment, largely trucks and
trailers to a private US food service business, while
underwriting much of the insurance risk for this business' fleet
of vehicles. Leasing accounts for approximately 70% of Abbey's
total income, of which a significant proportion is derived from
its relationship with this single large client. Moody's considers
Abbey's concentrated income sources to be a key credit risk since
the attraction of leasing as a means of financing equipment is
susceptible to potential changes in the US corporate tax code.
Given the maturity profile of existing leases with this US food
service business, a complete termination of new business would
lead to a run-off in Abbey's leasing assets over about four
years, over which time Abbey's profits would substantially reduce
unless sufficient new business was identified to replace this.

Abbey's high dependence on a single large client is leading it to
pursue alternative sources of income and a broader client base.
Indeed, beyond the relationship with this single large client,
Abbey has a number of much smaller leasing ventures with limited
franchise value relative to rated peers and which by themselves
are of low viability. Abbey plans a rapid expansion in these
operations, which entails some risk as the firm enters new

Abbey operates an insurance business through Advent Group, which
is the holding company for Advent's London-based brokerage and
insurance services business, and two regulated insurance
entities, Advent Insurance DAC -- Ireland, and Advent Insurance
PCC -- Malta. Advent's revenue is comprised of brokerage and
insurance services fee income, as well as risk premium, primarily
on insurance business with this single large client. The
insurance operations have delivered strong profitability to date.

Both regulated insurance entities are capitalized with reasonable
buffers above their Solvency II SCR capital requirements, with
predominately Tier 1 capital. Capital is supported by high
quality, liquid investment portfolios at both insurance entities,
although asset quality at the Irish insurer is weakened by a
significant loan to its parent, Abbey. This intercompany loan is
part of the group's strategy to deploy the insurance balance
sheet in funding the leasing business, but presents a
concentrated exposure to lease assets that is significant
relative to the insurer's equity.

Advent writes a diverse mix of business, however its exposures
under these policies are highly concentrated, in the Irish
construction sector for surety business, and with the US food
service business for all other lines, including long-tail
casualty. The long-tail nature of its casualty business with the
US food service business leads to increased uncertainty around
reserve adequacy over the longer-term.

Similar to Abbey itself, Advent's franchise value is weak in the
broader insurance context, although Advent does possess valuable
expertise in niches of the market. Advent plans to expand
materially over the next five years, which Moody's expects will
improve Advent's income mix and strengthen its franchise. That
said, meaningful expansion will lead to higher underwriting risk,
to the extent that the group increases its risk premium too

Abbey also operates a small property lending business under the
brand APERE, but this is not yet financially significant.

Moody's considers that Abbey is highly capitalized and very
liquid, which provides a significant buffer to the downside risks
posed by losses resulting from leasing, insurance or the property
lending. This conservative financial structure and its lack of
outstanding debt partly mitigate its weak business profile and
gives it some financial flexibility to expand.

Abbey has been run by the current CEO since the firm's foundation
in 1992. This provides a strong degree of experience and
stability but also exposes the firm to succession risk given the
critical nature of relationships for Abbey's business, and the
tight-knit nature of the enterprise. The rating action is based
on Moody's expectation that Abbey will continue to operate with
the orphan trust as its main shareholder, in trust and for the
benefit of the World Charitable Foundation of Ireland (WCFI),
whilst maintaining high levels of common equity in the business,
to support its leasing activities and underwrite its insurance


The rating outlook on Abbey is stable. While the business is
facing a period of strategic transition, the firm has the
capacity to support this shift in a considerate manner. A stable
outlook balances the execution risk associated with any strategy
change and the prospect that, if successful, the business would
benefit from a stronger franchise.


The CFR could be upgraded should Abbey demonstrate a successful
broadening of the leasing business away from its key relationship
with the US food service business without undertaking undue risk.
The rating could also be upgraded if the insurance business meets
its targeted revenue growth, demonstrating improved
diversification away from leasing.

The CFR could be downgraded if (i) the leasing business with the
US food service business was lost, without replacement from other
anchor clients; (ii) underwriting standards in the insurance
business deteriorated, leading to losses; and/or (iii) increased
gearing reduced the loss-absorbing capacity of the firm against
risks arising from its exposure to residual values on leased
assets, insurance or commercial property.


Issuer: Abbey International Finance Limited


-- LT Issuer Rating, Assigned B1, Outlook Assigned Stable

-- LT Corporate Family Rating, Assigned B1, Outlook Assigned

Outlook Actions:

-- Outlook Assigned Stable


The principal methodology used in these ratings was Finance
Companies published in December 2016.


LSF10 XL: Moody's Affirms B2 Corp. Family Rating, Outlook Stable
Moody's Investors Service has affirmed LSF10 XL Investments
S.a.r.l.'s (Xella) Corporate Family and Probability of Default
ratings at B2 and B2-PD respectively. Concurrently, Moody's has
also affirmed the B2 instrument rating assigned to the upsized up
to EUR1,780 million senior secured term loan B and EUR175 million
senior secured revolving credit facility both raised by LSF10 XL
Bidco SCA. The outlook on all ratings is stable.


The affirmation of LSF10 XL Investments S.a.r.l.'s CFR at B2
reflects the relatively conservative funding of the acquisition
of Spain-based insulation materials producer, Ursa. The
acquisition will be funded with up to EUR330 million add-on to
the group's EUR1,450 million senior secured term loan B maturing
in 2024 and a material contribution of equity or hybrid
instruments meeting Moody's requirements for achieving 100%
equity treatment under Moody's existing methodology. The
acquisition of Ursa should therefore be broadly leverage neutral
for Xella.

The rating affirmation also takes into account the disposal of
Xella's lime business ('Fels') to an affiliate of Irish-based
building materials producer CRH plc. The proceeds from the
disposal will be received later this year but LoneStar and Xella
have not yet disclosed how the proceeds will be used. Given both
the anticipated size of the proceeds but also the materiality of
the EBITDA contribution to be lost from the Fels disposal, the
future rating trajectory of Xella will obviously largely depend
on how the proceeds will be applied.

The swap of Xella's lime business for Ursa's insulation business
will have a moderately negative impact on the business risk
profile of Xella in Moody's views. Fels is a very mature business
with high margins and a strong track record of resilience through
the downturn. The lime market is highly consolidated and
protected by very high barriers to entry. Arguably Fels is a
relatively low growth business with limited ability to scale it
up over time and to develop it internationally. The synergies
between Fels and Xella's building materials and dry lining
division are also relatively low.

Ursa, on the other hand, should bring stronger growth prospects,
higher scalability, a higher potential for international
expansion and revenue synergies through the development of
systems. At the same time the integration of Ursa will be margin
dilutive and will slightly reduce the resilience of Xella's
overall business through cyclical downturns.


The liquidity of Xella is strong. The acquisition of Ursa will be
funded by up to EUR330 million add-on to the group's term loan B
and equity, which would leave an overfunding of approximately
EUR30 million at closing. Xella would also have EUR135 million
availability under its EUR175 million revolving credit facility.
It is noted that Xella is close to its seasonal working capital
peak and should generate substantially more free cash flow in H2
2017, which should enable the repayment of the RCF drawing by
year-end. The group's liquidity profile is also supported by the
prospects of receiving the proceeds from the disposal of Fels by
year-end 2017.


The upsized up to EUR1,780 million senior secured term loan B and
the EUR175 million revolving credit facility are ranking pari
passu among themselves and share the same collateral package
mainly consisting of share pledges over operating subsidiaries of
the Xella group accounting for at least 80% of the group's assets

Moody's is using a standard recovery rate of 50% due to the
covenant lite package.

Moody's also expects the equity to fund the Ursa acquisition, if
it enters into the restricted group as hybrid capital to mirror
the terms and conditions of the existing hybrid capital and to
meet Moody's requirements to achieve 100% equity credit under
Moody's methodology.


Positive rating pressure would build on Xella if Debt/EBITDA
would drop towards 5.0x with FCF/debt moving towards 5%.

Conversely negative pressure would arise if Debt/EBITDA would
increase to above 6.0x sustainably and / or Xella would start
generating negative free cash flow leading to a weakening of the
group's liquidity profile.

The principal methodology used in these ratings was Building
Materials Industry published in January 2017.


* NETHERLANDS: Number of Corporate Bankruptcies Down in August
Statistics Netherlands reports that the number of corporate
bankruptcies has declined further.

According to Statistics Netherlands, there were 39 fewer
bankruptcies in August than in July 2017.  The number of
bankruptcies reached its lowest level in this century, Statistics
Netherlands relates.  Most bankruptcies in August were recorded
in the trade sector, Statistics Netherlands says.

If the number of court session days is not taken into account,
258 businesses and institutions (excluding one-man businesses)
were declared bankrupt in August 2017, Statistics Netherlands
states.  With a total of 67, the trade sector suffered most,
Statistics Netherlands discloses.

In August, the number of bankruptcies was relatively highest in
the sector hotels and restaurants, Statistics Netherlands notes.


PORTO CITY: Fitch Affirms BB+ Long-Term IDR, Outlook Positive
Fitch Ratings has affirmed the City of Porto's Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDR) at 'BB+'. The
Outlooks are Positive. The Short-Term Foreign-Currency IDR has
been affirmed at 'B'.

The affirmation reflects Fitch's base case scenario of stable
budgetary performance and low debt metrics, despite moderately
growth in debt over the medium term. The Positive Outlook
reflects that on Portugal (BB+/Positive).


Rating Constraint
Porto's ratings remain constrained by the Portuguese sovereign,
in accordance with Fitch's criteria. Porto's intrinsic credit
profile is stronger than its ratings indicate, due to the city's
healthy budgetary performance, low debt, and sound liquidity.
Prudent administration and Porto's role as service centre in
north Portugal are also credit- positive.

As with other Portuguese cities, Porto's accounts and budgets are
overseen by the central government and its financial liabilities
are approved by the National Court of Accounts. The limited role
of the intermediate tiers of government (province and region) in
Portugal strengthens the link between the central government and

Solid Budgetary Performance
Porto has maintained high operating margins through cycle at
above 17% since 2009. Combined with with capex flexibility , this
has allowed the city to report a surplus before debt variation
every year over the same period. The 2016 accounts confirm the
city's consistent performance, with an operating margin of 24%,
partly driven by one-off tax and fee revenue. Tax revenues of
EUR105.2 million in 2016 were up 21.2% year on year.

The 2017 budget presents a prudent operating revenue forecast of
EUR153.1 million. It includes a property tax reduction of 10%,
with a marginal effect on overall operating revenue.
Nevertheless, it allocates higher opex and capex, mostly to
street and housing refurbishment, as well as fostering local
economic activity. Fitch expects opex to grow above 5% and a
marked increase in capex of 30%, after several years of low

Fitch's base case scenario expects softer, albeit still robust,
budgetary indicators for Porto in 2017, with a current margin
around 15% and the capital account partly funded with debt.
Moderate growth in tax and fee revenues are expected, at least in
par with the national expected national GDP growth, around 2%
over the medium term.

Low Debt, Moderate Increase Expected
Porto reduced outstanding debt to EUR33.3 million in 2016, from
EUR80.1 million in 2015, following a EUR28.7 million
expropriation settlement used to redeem debt ahead of schedule.
Debt-to-current revenue was at a record low of 18% at end-2016,
and the administration plans to take on new debt in 2017 of
around EUR20 million, to fund rehabilitation of housing and
public infrastructure.

Fitch expects gradual debt growth, towards 50% of current
revenues over the medium term, after several years of
deleveraging, to sustain a capex programmes in diverse areas,
such as the refurbishment of several of the city's districts or
the improvement of a ring road.

Porto has no contingent liabilities and retains control over the
public sector, which posted a surplus in 2016.

Forthcoming Elections
Elections are scheduled in October 2017, and Fitch expects a
continuation of the city's prudent financial policy. Disclosure
of information is satisfactory and precise, including the annual
financial results of all public bodies within its scope.
Moreover, a new accounting system for public administrations will
come into force in Portugal from January 2018, enhancing
transparency and standardisation of practices, However, this is
not expected to have a rating impact on Porto.

With an estimated population of 214,000 in 2015, Porto is the
second-largest cultural, administrative and economic Portuguese
centre, providing services to a greater metropolitan area of 14
municipalities with 1.7 million inhabitants. GDP resumed growth
in 2014, and is expected to grow around 1.5%-2.0% per year over
the next two years, driven by the healthy performance of the
external and hospitality sectors.


Porto's intrinsic credit profile is well above the sovereign's,
and will remain strong under Fitch base case scenario. However,
Porto's IDRs are constrained by the sovereign IDRs and are
therefore sensitive to changes in the sovereign rating.

PORTUGAL: 60+ & 90+-Day RMBS Delinquencies Improve, Moody's Says
The 60+ day delinquencies in the Portuguese residential mortgage-
backed securities (RMBS) market decreased to 0.99% over current
pool balance in June 2017 from 1.04% in December 2016, according
to the latest indices published by Moody's Investors Service.
During the same period, the 90+ day delinquencies also improved
by decreasing to 0.72% in June 2017 from 0.79% in December 2016.

The outstanding defaults (360+ days overdue, up to write-off)
increased to 3.80% of the current balance in June 2017 from 3.64%
in September 2016.

The prepayment rate of Portuguese RMBS rose to 3.62% in June 2017
from 3.16% in December 2016, representing a 14.43% increase.

Azor Mortgages Public Limited Company, Lusitano Mortgages No. 4
plc and Pelican Mortgages no. 1 public Limited Company's reserve
fund balance were below their target levels in June 2017.
Lusitano Mortgages No. 5 plc and Lusitano Mortgages No. 6
Limited's reserve funds remain fully depleted.

As of June 2017, Moody's rated 20 transactions in the Portuguese
RMBS market, with a total outstanding pool balance of EUR10.6
billion, a 10.6% decrease from EUR11.8 billion in June 2016.


LIPETSK REGION: Fitch Affirms BB+ IDR, Outlook Stable
Fitch Ratings has affirmed the Russian Lipetsk Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB+'
with Stable Outlooks and Short-Term Foreign-Currency IDR at 'B'.
The region's senior unsecured debt ratings have been affirmed at

The affirmation reflects Fitch's largely unchanged base case
scenario regarding the region's sound operating performance and
moderate direct risk in the medium term.


The 'BB+' ratings reflect the region's sound budgetary
performance with an operating margin above 10% and healthy
liquidity. They also take into account the high concentration of
the regional economy in ferrous metallurgy, which makes the
region vulnerable to steel market fluctuations and consequently
volatile tax revenue.

Fitch projects the region's budgetary performance will remain
sound with an operating margin of 11%-12% over the medium term.
In 2015-2016 the operating margin reached a high of 15% as
corporate income taxes rose sharply. In particular, the region's
top taxpayer, export-oriented PJSC Novolipetsk Steel (BBB-
/Stable), benefited from rouble depreciation. The volatility of
the region's finances is partly mitigated by the administration's
prudent approach, which sets aside excess tax proceeds as cash
reserves and keeps expenses under control.

In 1H17 the region recorded a RUB2 billion interim surplus on
controlled expenditure and tax revenue growth. Tax proceeds grew
18% yoy, mainly driven by personal income tax (up 54% yoy as a
result of one-off payment by high net worth individual), while
corporate income tax proceeds increased 4% yoy weighed down by
the negative effect of rouble appreciation and higher prices of
raw materials in the steel sector. Fitch expects higher
expenditure in 2H17 and a year-end deficit of RUB2 billion, which
Fitch assumes will be financed mostly by cash reserves.

Fitch projects the region's direct risk will remain stable and
moderate at below 40% of current revenue (2016: 37%). During
7M17, the region's debt decreased to RUB15.6 billion from RUB17.4
billion as the administration repaid maturing bank loans, budget
loan and bonds. The region also contracted RUB1.3 billion of
subsidised budget loans at 0.1% interest rate.

As with most regions in Russia, Lipetsk Region is exposed to
refinancing pressure in 2017-2019 when 82% of direct risk
(RUB12.8 billion as of August 2017) matures. Despite a
concentrated debt maturity profile, the region has manageable
refinancing risks due to moderate debt levels, sound liquidity
and access to federal loans. For 2017 refinancing needs are
limited to RUB1.4 billion (9% of total outstanding debt), which
is fully covered by cash reserves (RUB5.8 billion as of August

Lipetsk Region has a well-developed industrialised economy with a
focus on the ferrous metallurgy sector, supporting wealth metrics
above the national median. In 2016, gross regional product grew
2.2% versus a 0.2% fall in the wider Russian economy. The ferrous
metallurgy sector contributed 58% of the region's industrial
output and around 37% of total tax proceeds in 2016, making the
regional economy vulnerable to fluctuations in the domestic and
international steel markets.

The region's credit profile as constrained by the weak Russian
institutional framework for sub-nationals, which has a shorter
record of stable development than many of its international
peers. The predictability of Russian local and regional
governments' budgetary policy is hampered by the frequent
reallocation of revenue and expenditure responsibilities within
government tiers.


An operating margin sustainably above 15%, accompanied by sound
debt metrics with a direct risk-to-current balance (2016: 3.6
years) being in line with the weighted average debt maturity
profile (2016: 2.5 years), would lead to an upgrade.

Growth of direct risk, accompanied by deterioration in the
operating margin leading to a debt payback of above 10 years on a
sustained basis, would lead to a downgrade.

RUSHYDRO PJSC: Moody's Hikes CFR to Ba1, Outlook Stable
Moody's Investors Service has upgraded to Ba1 from Ba2 the
corporate family rating (CFR) and to Ba1-PD from Ba2-PD the
probability of default rating of RusHydro, PJSC (RusHydro). The
rating outlook is stable.


RusHydro falls under Moody's rating methodology for Government-
Related Issuers (GRIs) given its 60% ownership by the Government
of Russia (Ba1 stable). In accordance with this methodology,
RusHydro's Ba1 CFR reflects the combination of the following
inputs: (1) a baseline credit assessment (BCA), which measures
the company's fundamental standalone credit quality, of ba2; (2)
the Ba1 local-currency debt rating of the Russian government with
stable outlook; (3) a high default dependence between the state
and the company; and (4) Moody's assumption of a high level of
support from the state in case of need.

The rating action takes into account the improvements in the
standalone business risk profile of RusHydro, reflected in the
raising of its BCA to ba2 from ba3, underpinned by positive
changes in the structure of the electricity market in Russia,
such as the introduction of long-term capacity auctions and
capacity delivery agreements, which provide higher predictability
to RusHydro's cash flows over the next 3 years. It further
reflects the improvement in RusHydro's financial risk profile as
evidenced by the positive financial results that the company has
demonstrated in the last year and Moody's view that RusHydro will
continue to manage its capital expenditure requirements such that
it maintains a strong financial performance and solid liquidity

As part of the action, Moody's has also revised its assumption
for the state support for RusHydro to "high" from "strong"
following a review of the company's interaction with the
government. The agency believes that the likelihood of state
intervention to prevent default in the event of need will remain
high going forward given RusHydro's strategic importance for the
country's energy sector and the track record of state support.

Overall, RusHydro's rating factors in positively (1) the
company's strategic role in the Russian electricity market as one
of the largest power producers with installed capacity of 38.9 GW
or around 16% of total generation capacity in the country; (2)
the low cost hydropower generation fleet, which contributed
around 80% of EBITDA in 2016; and (3) the moderately leveraged
financial profile of the group, with Moody's-adjusted debt/EBITDA
of around 2.5x as of June 2017, and the expectation that the
company's financial metrics will remain broadly at current levels
over the coming years.

However, the rating is constrained by the still evolving
operating environment, which is characterised by (1) fragile
domestic electricity consumption, albeit showing some signs of
recovery over the last year; (2) electricity oversupply due to
market overcapacity; (3) risk of downward pressure on power
prices; and (4) a developing regulatory framework with some risk
of political interference. In addition, the rating reflects
Moody's expectation that RusHydro will continue to exhibit
negative free cash flow in the next 12-18 months due to
investment requirements and higher dividend payout.


The outlook on RusHydro's rating is stable and reflects Moody's
expectations that (1) RusHydro's operating and financial profile
will remain commensurate with the current ratings on a
sustainable basis; and (2) the probability of the Russian
government providing extraordinary support to the company will
remain high.


RusHydro's ratings could be upgraded subject to an upgrade of
Russia's sovereign rating, and provided that (1) the company's
operating and financial performance and liquidity remain solid;
(2) macroeconomic environment and regulatory framework are
supportive and provide sufficient predictability over the
company's cash flow generation capacity for the medium to long
term; and (3) there are no adverse changes in the probability of
the Russian government providing extraordinary support to the
company in the event of financial distress.

Upward pressure on the BCA could result from a material
improvement in the company's financial profile such that Moody's-
adjusted debt/EBITDA ratio is positioned comfortably below 2x on
a sustainable basis.

Conversely, downward pressure on RusHydro's ratings could arise
from a downgrade of the sovereign rating by more than one notch
or a downward assessment of the probability of government support
for RusHydro in the event of financial distress. Downward
pressure could also arise if Moody's was to lower RusHydro's BCA
on the back of (1) a negative shift in the evolving regulatory
framework; or (2) weakening financial profile, resulting in a
Moody's-adjusted debt/EBITDA ratio likely to increase above 3x on
a persistent basis. In addition, any inability on the part of the
company to maintain adequate liquidity could also pressure the
BCA and the final rating.

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


Headquartered in Moscow, RusHydro, PJSC is one of the world's
largest hydropower companies, accounting for more than half of
hydropower output in Russia. The company is also the owner of RAO
Energy System of East, the monopoly integrated electric utility
in the Far East region.

TULA REGION: Fitch Affirms BB Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed the Russian Tula Region's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'
with Stable Outlooks and Short-Term Foreign Currency IDR at 'B'.
The region's senior debt long-term rating has been affirmed at


The 'BB' ratings reflect the satisfactory operating balance of
Tula, which comfortably covers its interest payments, expected
small deficit before debt variation and moderate direct risk. The
ratings also factor in the region's moderate social-economic
profile and a weak institutional framework for Russian sub-

Fitch projects Tula will maintain a stable operating balance at
about 8% of operating revenue over the medium term, which will
comfortably cover interest payments by 4x-5x (2016: 7.7x). In
7M17, Tula has collected 54% of its full-year budgeted revenue
and incurred 51% of its full-year budgeted expenses, which
resulted in a small intra-year deficit of RUB569 million. Fitch
expects some acceleration of expenditure in 2H17 and projects an
annual deficit of RUB2.1 billion, which is about 3% of total
revenue. Fitch also forecasts Tula's deficit at 3%-4% in 2018-

Fitch projects Tula's direct risk to remain moderate at below 35%
of current revenue in 2017-2019 (2016: 25.4%). The region's
interim direct risk increased immaterially to RUB16.3 billion at
end-July 2017 from RUB15.7 billion at end-2016. To repay a RUB3.3
billion maturing bond Tula recently contracted a five-year RUB1.8
billion budget loan and a short-term RUB2.4 billion treasury

Tula's debt portfolio remains dominated by budget loans, whose
share increased to 80% of direct risk at August 1, 2017 (end-
2016: 59%), while bonds and bank loans composed the remaining
20%. The budget loans have low 0.1% interest rates, which help
the region to save on interest payments and reduce its projected
debt servicing to below 10% of current revenue in 2017-2019 from
an average 17% in 2014-2016, according to Fitch's forecast.

Despite the moderate debt burden, the region remains exposed to
refinancing risk due to its short debt maturity. Fitch estimated
Tula's average debt maturity was 2.2 years at end-2016, albeit
close to the region's direct risk/current balance of 2.7 years.
By end-2017, Tula has to refinance RUB4.4 billion, or about 27%
of direct risk, which it will fund using bank loans and available
cash balance (end-July 2017: RUB2.5 billion). As of August 1,
2017, the region had deployed all its credit lines and plans to
contract more towards the year-end.

The region's economy is moderate, with GRP per capita slightly
below the national median. However, it benefits from a
diversified processing industry and grows faster than the
national average. According to the region's recently updated
estimates, Tula's GRP grew 4.7% in 2016 and 5.6% in 2015, while
Russia's GDP contracted. The administration expects growth to
continue at 3%-4% p.a. in 2017-2018, supported by processing
industries and a national economic recovery, which Fitch
forecasts at 1.6%-2.2% for 2017-2018.

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional government
(LRGs). It has a short track record of stable development
compared with many of its international peers. The frequent
reallocation of revenue and expenditure responsibilities within
tiers of government reduces the predictability of LRGs' budgetary
policies and hampers Tula's forecasting ability.


Sound budgetary performance with an operating margin above 10% on
a sustained basis, accompanied by moderate direct risk below 40%
of current revenue, would lead to an upgrade.

Conversely, weaker budgetary performance with an operating margin
consistently below 5%, accompanied by a weak debt payback
exceeding 10 years (2016: 2.7 years), could lead to a downgrade.


LIBERBANK: Moody's Affirms B1 LT Deposit Rating, Outlook Stable
Moody's Investors Service has affirmed Liberbank's long-term
deposit ratings at B1 following the affirmation of the bank's
baseline credit assessment (BCA) and adjusted BCA at b1.
Liberbank's long-term counterparty risk assessment (CRA) was
affirmed at Ba2(cr). The outlook on the bank's long-term deposit
ratings remains stable.

The bank's Not Prime short-term deposit ratings and the Not
Prime(cr) short-term CRA were unaffected by rating action.

The rating action was triggered by the bank's announcement on 6
September 2017 that its board had approved a EUR500 million
capital increase, which is underwritten by a syndicate of banks.
In affirming the bank's ratings, Moody's has taken into
consideration the benefits of the transaction that will be fully
earmarked to bring Liberbank's provisioning levels for non-
performing assets (NPAs) in line with the system's average.



The affirmation of Liberbank's b1 BCA reflects the bank's
announcement on 6 September 2017 of a substantial EUR500 million
capital increase and Moody's opinion that this transaction will
improve the bank's risk absorption capacity against its weak
asset risk profile and low provisioning coverage.

The capital increase will be fully earmarked to improve
Liberbank's coverage of NPAs, which will increase to around 50%
from 40% at end-June 2017 and closes the gap with the Spanish
system average (i.e. 51% at end-December 2016 latest data
available). The transaction is expected to also improve
Liberbank's fully loaded Common Equity Tier 1 by 30 basis points
from the 11.3% reported at end-June 2017, while Moody's adjusted
tangible common equity to risk weighted asset ratio stood at 7.3%
as of the same date.

In Moody's view, Liberbank's improved loss absorbing cushions
following the capital increase, need to be balanced against the
bank's persistently weak asset risk profile despite recent
improving trends. The bank's NPA ratio declined to 21.7% at end-
June 2017 from 23.8% at end-December 2016, but remains well above
the 15% average of domestic peers (latest data available end-
December 2016).

In affirming Liberbank's b1 BCA, the rating agency has also taken
into consideration the extraordinary income of EUR85 million
stemming from the sale of the bank's real estate servicer to a
specialized real estate company that was announced on 8 August
2017. More importantly, the sale underpins Moody's view of a
further gradual improvement of Liberbank's asset risk, as the
buyer has committed to a three-year divestment plan of around 50%
of the bank's stock of real estate assets. As part of its capital
reinforcement strategy Liberbank has also announced that it
intends to accelerate in H2 2017 the reduction in the stock of
NPAs through sales, with a target of around EUR800 million
(representing 14% of total NPAs at end-June 2017).

The bank's b1 BCA also reflects: (1) Liberbank's modest
profitability metrics, with recurring earnings pressured by
continued low business volumes and interest rates, as well as
declining trading gains from the securities portfolio; and (2)
sound liquidity position, underpinned by a stable deposit base
(representing 68% of total funding at end-June 2017) that has
remained resilient in recent months despite the volatility
suffered by Liberbank in the capital markets after the resolution
of Banco Popular Espanol, S.A. (Ba1/(P)Ba1; ca, Rating under
Review) on June 7, 2017.

The affirmation of Liberbank's B1 long-term deposit ratings
reflects: (1) the affirmation of the bank's BCA of b1; (2) no
uplift from Moody's Advanced Loss Given Failure (LGF) analysis;
and (3) the rating agency's assessment of a low probability of
government support for Liberbank that results in no uplift for
the deposit ratings.


The outlook on the deposit ratings is stable, reflecting Moody's
expectation that Spain's sound economic conditions will help to
preserve Liberbank's credit profile with a gradual improvement in
asset risk.

The stable outlook on Liberbank's deposit ratings also reflects
Moody's Advanced LGF analysis and expectation that the bank's
liability structure will remain unchanged during the next 12-18


As part of rating action, Moody's has also affirmed the CR
Assessment of Liberbank at Ba2(cr), two notches above the
adjusted BCA of b1 and reflecting the cushion provided by the
volume of bail-in-able debt and deposits (9.4% of tangible
banking assets at end-June 2017), which would likely support
operating obligations in the event of a resolution.


Upward pressure on Liberbank's BCA could result if the bank
materially improves its key financial metrics, namely by
achieving a substantial decline in the stock of problematic

Downward pressure on the bank's BCA could develop as a result of:
(1) The reversal in current asset risk trends with an increase in
the stock of NPLs and/or foreclosed real estate assets; (2) a
weakening of Liberbank's internal capital-generation and risk-
absorption capacity as a result of subdued profitability levels;
and/or (3) a deterioration in the bank's liquidity position.

As the bank's deposit ratings are linked to the standalone BCA,
any change to the BCA would likely also affect these ratings.

Liberbank's deposit ratings could also change due to changes in
the loss-given failure faced by these securities.


Issuer: Liberbank


-- Adjusted Baseline Credit Assessment, Affirmed b1

-- Baseline Credit Assessment, Affirmed b1

-- Long-Term Counterparty Risk Assessment, Affirmed Ba2(cr)

-- Long-Term Bank Deposits, Affirmed B1 Stable

Outlook Action:

-- Outlook Remains Stable


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


SELECTA GROUP: Moody's Affirms Caa1 CFR, Outlook Stable
Moody's Investors Service has affirmed the Caa1 corporate family
rating (CFR) of Switzerland-based vending machine operator
Selecta Group B.V. Concurrently the rating agency has affirmed
the B3 rating on the EUR350 million and CHF 245 million senior
secured notes due 2020 issued by Selecta, the B1 rating on the
company's existing EUR50 million super senior revolving credit
facility due 2019 and the Caa1-PD probability of default (PDR)
rating. The outlook on all the ratings is stable.

The rating action reflects the forthcoming completion of the
acquisition of Pelican Rouge B.V. (unrated) by Selecta, and takes
into consideration:

- High pro forma leverage following the Pelican Rouge
   acquisition of 5.8x on a Moody's-adjusted basis and with high
   levels of capital expenditure

- Strong industrial logic for the acquisition and significant
   potential for synergy savings

- Improved liquidity

- High execution risks of integration

- Ongoing turnaround actions within both Selecta and Pelican


On August 25, 2017, Selecta received regulatory clearance to
proceed with the acquisition of Pelican Rouge, subject to the
divestment of its small vending business in Finland, and the
acquisition is expected to close in the 2nd week of September
2017. Selecta will acquire Pelican Rouge for EUR499 million, with
total acquisition costs, including transaction fees, contingent
tax costs and a proportion of integration costs financed with a
new term loan of EUR375 million, which ranks pari passu with the
existing senior secured notes, and new funding from KKR of EUR180


The acquisition of Pelican Rouge brings together the two leading
players in European vending. This provides the potential for
significant synergy savings, particularly through increased route
density and procurement. However counterbalancing this is the
high execution risk on combining the two operations, whilst at
the same time both Selecta and Pelican Rouge are at different
stages of operational and performance turnarounds.

The vending market has seen recent structural declines associated
with the premiumisation of coffee and expansion of alternative
vending locations. However, poor execution and underinvestment in
the machine parc have also been significant components of
underperformance in both businesses. Selecta (on a standalone
basis) is now improving average weekly sales per machine and
declines in same site sales are low at around -1% per annum.
Nevertheless significant machine investment is still likely to be
needed for the group to reach modern convenience retail standards
and sustain performance.

The Caa1 CFR reflects:

(1) the high leverage of 5.8x on a Moody's-adjusted basis as at
March 31, 2017 pro forma for the acquisition, including the PIK
Proceeds Loan and including capitalised operating leases; (2)
significant execution risks in the integration of Pelican Rouge,
whilst both companies are undertaking turnaround actions; (3) the
highly fragmented and competitive European vending market; (4)
ongoing secular declines in vending machine usage evidenced by
declining same site sales; and (5) the requirement to maintain
high levels of capital expenditure, leading to negative free cash

More positively, the ratings are supported by: (1) the company's
position as the leading European vending operator; (2) the
contracted installed client base with high rates of contract
renewal; (3) the recent improvements in Selecta's standalone
revenue and EBITDA and new contract wins; and (4) significant
potential upside in EBITDA and capital expenditure from synergy
savings and operational improvements.


Moody's considers Selecta's liquidity position to be adequate.
Cash balances at closing are expected to exceed EUR100 million,
and the super senior revolving credit facility (SSRCF) will be
upsized by EUR50 million to EUR100 million, providing headroom of
EUR53 million compared to the RCF drawing at June 2017. There is
a springing covenant attached to the SSRCF when it is drawn by
over 25% and Moody's expects adequate covenant headroom over the
next 12-18 months.

As part of the acquisition funds flows cash has been allocated to
prefund in part the integration costs and a contingent tax claim.
Excluding these costs the combined group is expected to generate
low cash outflows and move gradually towards a cash flow
breakeven position.


Following the acquisition Selecta's debt capital structure will
comprise EUR575 million equivalent senior secured notes, a new
EUR375 million senior secured term loan, and a EUR100 million
SSRCF. It also includes a circa EUR302 million PIK Loan down-
streamed to Selecta by way of an inter-company PIK Proceeds Loan
of the same amount, which is included in the calculation of the
Moody's-adjusted debt. The senior secured notes are rated one
notch above the CFR at B3 reflecting their ranking ahead of the
PIK Proceeds Loan. Due to its seniority in the capital structure,
the SSRCF is rated three notches higher than the CFR at B1. The
new senior secured term loan is unrated.


The stable outlook reflects Moody's expectation that free cash
flows will gradually improve towards zero and that liquidity will
remain adequate. It assumes that the market will remain
relatively stable with limited declines in same site sales. It
also reflects the balance of high synergy potential with
execution risks in integrating and turning around the two


Upward pressure on the ratings could occur if Selecta
successfully integrates Pelican Rouge and demonstrates a
sustained period of revenue and EBITDA growth with stable or
growing same site sales. Quantitively the rating could be
upgraded if Moody's-adjusted debt/EBITDA (including operating
leases) falls sustainably below 5.5x, with cash flow turning
positive and liquidity remaining adequate.


The ratings could be downgraded if there is a period of sustained
decline in revenues or EBITDA, if the company's free cash flows
remain substantially negative or if liquidity concerns arise.


The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.


TURKIYE PETROL: Moody's Alters Outlook to Pos. & Affirms Ba1 CFR
Moody's Investors Service has changed the rating outlook on
Turkiye Petrol Rafinerileri A.S. (Tupras) to positive from
stable. Concurrently, the Ba1 corporate family rating (CFR), the
Ba1-PD probability of default rating (PDR) and the Ba1 senior
unsecured notes rating have been affirmed.


Moody's changed the rating outlook to positive from stable to
reflect the company's improving financial performance following
the completion of its Residual Upgrade Program (RUP) in May 2015
and as a result of healthy refining margins since 2015. The
rating is constrained for now at the Ba1 positive level given the
Ba1 negative rating of the government of Turkey.

Tupras' debt/EBITDA as adjusted by Moody's decreased to 2.3x as
of the last twelve months (LTM) ending June 30, 2017 from 3.3x as
of year-end 2015, while adjusted retained cash flow (RCF)/debt
remains healthy at 22.9% from 29.2% over the same period. The
company's cash balances are also significant as reflected by net
debt to EBITDA of 1.5x as of June 30, 2017 (LTM) as opposed to
2.6x as of year-end 2015 and 2.8x as of year-end 2016.

The affirmation of Tupras' Ba1 CFR reflects the company's
dominant position in the Turkish market, given that Tupras is the
sole refiner in the country and secures domestic production and
distribution of refined products. Refining margins in 2016
decreased compared to 2015 resulting in adjusted funds from
operations (FFO) decreasing to TRY2.6 billion in 2016 from TRY3.2
billion in 2015. However, in H1 2017 alone Tupras generated
TRY2.7 billion of adjusted FFO by benefiting from a strong
operating environment. This exemplifies the volatility inherent
in the refining industry because of changes in market dynamics
and crack spreads.

With the completion of an intensive multi-year capex programme
and no major investment plan over the next several years, Moody's
expects that Tupras' gross debt would steadily decline as project
finance loans amortize. Tupras' ability to reduce gross financial
debt is significant when crack margins are strong such as in the
current environment, but its financial policy to maximize
dividend payouts -- after taking into account market conditions
and investment plans -- will moderate its deleveraging path.
Notwithstanding this, Tupras has considerable flexibility in
decreasing shareholder returns given the robust credit profile of
Koc Holding A.S. (Baa3 negative). Moody's does recognize that the
presence of Koc Holding as a financially strong shareholder is
supportive to the rating and to the positive outlook that it has

All of Tupras' core assets are located in Turkey and a material
portion of its profitability is derived from the domestic market
which creates credit linkages with the Turkey sovereign. At the
same time, the company's ability to increase the export of its
refined products is a mitigating factor against an unlikely
scenario of a significant drop in domestic demand. As a result,
Moody's believes Tupras can be rated above the Turkey government
bond rating but limited to one notch above.

On average, about 20% of the refiner's revenues are from exports,
of which gasoline and fuel oil are key products sold in the
international market. Turkey is a significant importer of diesel
and therefore Tupras will maintain its market share even if
domestic demand declines and once the country's second oil
refining company -- the STAR refinery -- becomes fully
operational in 2019.

Tupras' liquidity has strengthened significantly since 2015.
Moody's expects FFO generation to remain healthy in the second
half of 2017 and forecasts it to be in excess of TRY4.3 billion
for the full-year 2017. This, alongside the company's adjusted
cash position as of June 30, 2016 (LTM) of TRY4.4 billion, will
be sufficient to cover Tupras' debt maturities over the next 12
months of TRY3.9 billion of which about TRY2.5 billion is the
$700 million bond due in May 2018. Moody's expects annual capex
over the next several years to be in the range of TRY880 --
TRY1,050 million ($250 - $300 million). The company paid TRY1.6
billion in dividends in Q2 2017. Should the financial performance
in H2 2017 remain strong, Moody's expects dividend payment in Q2
2018 to range between 60%-80% of FFO.


The positive outlook reflects the improving financial profile of
the company but also takes into consideration the Ba1 negative
rating on Turkey's government bond rating.


Upward pressure on the rating is constrained by the negative
outlook on the Turkey sovereign rating because of Tupras' credit
linkages with Turkey. Should the rating on the sovereign change
to Ba1 stable, Tupras' rating is likely to be upgraded if current
credit metrics are sustained. This includes adjusted debt/EBITDA
maintained below 2.5x and adjusted EBIT/interest cover above
5.0x. As of June 30, 2017 (LTM), the metrics were 2.3x and 5.2x

Ratings could be downgraded if the company fails to maintain
adjusted gross debt/EBITDA below 4.0x and adjusted EBIT/interest
cover above 3.5x.

The principal methodology used in these ratings was Refining and
Marketing Industry published in November 2016.

The Local Market analyst for these ratings is Rehan Akbar, +971
(423) 795-65.

Turkiye Petrol Rafinerileri A.S. (Tupras) is the sole refiner in
Turkey, with a dominant position in the domestic petroleum
product market. The refining business consists of one very high
complexity refinery in Izmit, two medium complexity refineries
located in Izmir and Kirikkale and one simple refinery in Batman,
with a combined annual crude processing capacity of 28.1 million
tonnes. Other core companies include (1) a 40% effective
ownership stake in Opet, Turkey's second-largest oil-products
distribution company as of June 30, 2017, with 1,538 stations
operating under the Opet and Sunpet brands; and (2) an 80% stake
in Ditas, a shipping company which primarily serves Tupras'
logistic needs.

The company was established in 1983 when various state-owned
refineries were combined under the Tupras name. As part of the
privatisation process, 2.5% of its shares were publicly floated
in 1991, which had increased to 49% by 2005. The company was
fully privatised on 26 January 2006 when the remaining 51% stake
was bought by EYAS, a special purpose vehicle owned by a
consortium led by Koc Holding, one of the largest business groups
in Turkey.

Headquartered in Korfez/Turkey, Tupras generated sales of TRY45.2
billion and reported a net profit of TRY3.7 billion as of the
last twelve months ending June 30, 2017.

U N I T E D   K I N G D O M

BELL POTTINGER: Middle East Business Seeks Split
Conor Sullivan at The Financial Times reports that Bell
Pottinger's Middle East business has become the latest part of
the scandal-hit London-based PR agency to seek to separate after
its local management made a proposal to spin off the division.

Bell Pottinger was expected to enter administration as early as
yesterday, Sept. 11, after clients and key staff deserted the
agency in the wake of reports that found it had stoked racial
tensions in South Africa through its work for the powerful Gupta
family, the FT relates.

According to the FT, directors of Bell Pottinger Middle East
(BPME) said on Sept. 10 that the company was "in discussions to
formalise a separation from its current owner Bell Pottinger
Private Limited."

Their move follows an announcement on Sept. 8 by the Asian
business that it intended to split from the parent company and
rebrand itself as Klareco Communications, after the Esperanto
word for clarity, the FT notes.

Bell Pottinger hired the accountancy firm BDO to advise on a
potential sale of the public relations business but staff at its
London headquarters were told last week that the firm could go
into administration as the agency continued to lose clients, the
FT relays.

Archie Berens, managing director of BPME, as cited by the FT,
said the Middle Eastern division was a separate legal entity that
wanted to avoid getting caught up in the crisis in London.

CARILLION PLC: Unveils Management Changes as Part of Turnround
Gill Plimmer and Nicholas Megaw at The Financial Times report
that Carillion, the struggling construction and outsourcing
group, is shaking up its top team in an effort to turn itself
round following a profit warning that left the company's future
in doubt.

According to the FT, finance director Zafar Khan is stepping down
under an agreement with Keith Cochrane, the former chief
executive of Weir who agreed to temporarily run the company
following a shock profit warning in July.  Emma Mercer, the
finance director of Carillion's construction arm, will take
Mr. Khan's place as CFO, the FT discloses.

Richard Howson, who had been sacked as CEO in July but remained
as chief operating officer, will leave by Sept. 30, with Andy
Jones, president and chief executive of Carillion Canada, taking
his place from Oct. 1, the FT states.

Carillion, which employs 50,000 people worldwide, has been
fighting for its life after admitting in July that problems with
four contracts in the UK, the Middle East and Canada would cost
it GBP845 million in writedowns, the FT relays.

The company's troubles have been compounded by its net debt,
which has rocketed from GBP42 million in 2010 to GBP695 million
in the first half of 2017 and is expected to reach GBP800 million
in the second half, the FT notes.  It also has a GBP587 million
deficit in its pension scheme, which has obligations of GBP3.4
billion, the FT says.

Mr. Cochrane has been attempting to devise a rescue plan that
could involve a deeply discounted rights issue, debt-for-equity
swap and pension cuts in an attempt to stave off an emergency
takeover or bankruptcy, the FT relates.

Carillion has hired professional services firm EY to assist with
a review of its finances, according to the FT.

CO-OP BANK: Moody's Raises Counterparty Risk Assessment to B3
Moody's Investors Service has upgraded to Baa2 from Baa3 (on
review direction uncertain) the rating of the mortgage covered
bonds issued by Co-Operative Bank Plc (Co-Op; B3(cr) outlook
positive, baseline credit assessment caa2). The covered bonds are
issued under Co-Op's Moorland Mortgage Covered Bonds Programme
and Co-Op is the underlying institution supporting these covered


The action follows the upgrade of Co-Op's counterparty risk (CR)
assessment to B3(cr) from Caa1(cr).

The covered bonds were upgraded as a result of the impact, under
Moody's Timely Payment Indicator (TPI) framework, of the CR
assessment upgrade. The rating assigned to the Moorland's covered
bonds is now constrained at Baa2, reflecting the combination of
Co-Op's B3(cr) CR assessment and Moorland's TPI, of "Probable-

Under the TPI framework, Moody's has positioned the covered bond
rating at Baa2 given the following factors:

(1) the high credit strength of the covered bonds indicated by
Moody's expected loss analysis;

(2) the high level of over-collateralisation (OC). The Moorland
programme benefits from committed OC of 29.0%. In addition, the
total level of OC in the programme as of 30 June 2017 was 128.2%;

(3) the time remaining until the next principal payment. The
expected principal payment is four years away. Co-Op has not been
issuing covered bonds since 2011 and Moody's understands that Co-
Op is not planning to issue further covered bonds in the near
term. Negative pressure on the covered bond rating and TPI is
likely to arise during this four year period if Co-Op's future
prospects do not further stabilise; and

(4) the high level of operational de-linkage of the covered bonds
from Co-Op owing to third party sub-servicing, provisions for the
replacement of servicing and cash management, external bank
accounts and external provision of hedging.


Moody's determines covered bond rating using a two-step process:
an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL) to
determine a rating based on the expected loss on the bond. COBOL
determines expected loss as (1) a function of the probability
that the issuer will cease making payments under the covered
bonds (a CB anchor event); and (2) the stressed losses on the
cover pool assets following a CB anchor event.

The CB anchor for each of these programmes is the CR assessment
plus 1 notch. The CR assessment reflects an issuer's ability to
avoid defaulting on certain senior bank operating obligations and
contractual commitments, including covered bonds. Moody's may use
a CB anchor of CR assessment plus one notch in the European
Economic Area or otherwise where an operational resolution regime
is particularly likely to ensure continuity of covered bond

The cover pool losses are an estimate of the losses Moody's
currently models following a CB anchor event. Moody's splits
cover pool losses between market risk and collateral risk. Market
risk measures losses stemming from refinancing risk and risks
related to interest-rate and currency mismatches (these losses
may also include certain legal risks). Collateral risk is derived
from the collateral score, which measures losses resulting
directly from the cover pool assets' credit quality.

The cover pool losses for this programme are 15.2%. This is an
estimate of the losses Moody's currently models if Co-Op
defaults. Moody's splits cover pool losses between market risk of
11.8% and collateral risk of 3.4%. Market risk measures losses as
a result of refinancing risk and risks related to interest-rate
and currency mismatches (these losses may also include certain
legal risks). Collateral risk measures losses resulting directly
from the credit quality of the assets in the cover pool.
Collateral risk is derived from the collateral score which for
this programme is 5.0%.

The OC in the cover pool is 128.3%, of which Co-Op provides 29.0%
on a "committed" basis. The minimum OC level that is consistent
with the Baa2 rating target is 1.5%. These numbers show that
Moody's is not relying on "uncommitted" OC in its expected loss

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across covered bond
programmes rated by Moody's please refer to "Moody's EMEA Covered
Bonds Monitoring Overview", published quarterly. All numbers in
this section are based on data provided by the issuer as of 30
June 2016.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator"
(TPI), which measures the likelihood of timely payments to
covered bondholders following a CB anchor event. The TPI
framework limits the covered bond rating to a certain number of
notches above the CB anchor.

When assessing TPIs for sub-investment-grade-rated issuers
Moody's place more focus on factors that may impact the current
credit position of the covered bonds. In the case of Moorland,
these factors included (1) credit strength indicated by Moody's
expected loss analysis (2) the current level of OC, and (3) the
time to the next principal payment.

The TPI assigned to this programme is "Probable-High". The TPI
leeway for Moorland's mortgage covered bonds is limited, and thus
any downgrade of the issuer ratings may lead to a downgrade of
the covered bond ratings.

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

The CB anchor is the main determinant of a covered bond
programme's rating robustness. A change in the level of the CB
anchor could lead to a downgrade of the covered bonds. The TPI
Leeway measures the number of notches by which Moody's might
lower the CB anchor before the rating agency downgrades the
covered bonds because of TPI framework constraints.

The TPI assigned to this programme is "Probable-High". The TPI
leeway for Moorland's mortgage covered bonds is limited, and thus
any downgrade of the issuer ratings may lead to a downgrade of
the covered bond ratings.

A multiple-notch downgrade of the covered bonds might occur in
certain circumstances, such as (1) a country ceiling or sovereign
downgrade capping a covered bond rating or negatively affecting
the CB Anchor and the TPI; (2) a multiple-notch downgrade of the
CB Anchor; or (3) a material reduction of the value of the cover


The principal methodology used in this rating was "Moody's
Approach to Rating Covered Bonds" published in December 2016.

CO-OP BANK: Moody's Raises Senior Unsecured Debt Rating to Caa2
Moody's Investors Service has upgraded the standalone baseline
credit assessment (BCA) of the Co-operative Bank Plc (the Co-op
Bank) to caa2 from ca in light of its improved credit profile and
capital position given the implementation of the bank's capital

Moody's upgraded the bank's long-term senior unsecured debt
rating to Caa2 from Ca, reflecting the completion of the bank's
capital raising plan without the imposition of any losses on this
class of creditors.

Moody's confirmed the long-term deposit ratings at Caa2, at the
same level as its standalone BCA, given the reduced amount of
subordination benefiting this class of liabilities due to the
cancellation of Tier 2 capital as part of the restructuring. The
short-term deposit ratings were affirmed at Not Prime.

The outlook on the long-term debt and deposit ratings is
positive, driven by Moody's expectation that the completion of
the bank's recapitalization will enable it to focus on the
reduction of its non-core portfolio, improving its profitability
and low efficiency.

The rating action follows the bank's announcement on 1 September,
2017 that the bank had raised approximately GBP700 million of
additional common equity tier 1 (CET1) capital, before expenses,
through the conversion of subordinated debt into equity and the
issuance of new equity.

This rating action concludes the review initiated on 30 June,



The upgrade of the bank's BCA to caa2 from ca reflects Moody's
view that the bank's standalone creditworthiness has improved
with the completion of the recapitalization plan and the
injection of GBP250 million new equity by certain shareholders
and bondholders in addition to the conversion of GBP443 million
of Tier 2 bonds into common equity. The agency expects that the
bank's outstanding GBP400 million senior unsecured bonds will be
fully repaid upon their maturity in late September 2017 without
materially affecting the bank's liquidity position.

As a result of the restructuring, the bank will immediately meet
the CET1 component of its Individual Capital Guidance (ICG), but
full ICG compliance (i.e. Pillar 1 + 2A requirements set by the
Prudential Regulation Authority) depends upon the completion of
the Co-op Bank's proposed issuance of Tier 2 capital in 2018. The
recapitalization has also improved the bank's risk-absorption
capacity which has been weighed down by a sizeable legacy
portfolio of corporate and commercial real estate loans and
residential mortgages (the Optimum book). This legacy loan book's
share of the bank's total credit risk-weighted assets was 32%, at
GBP2 billion, as of end-June 2017. Following the
recapitalization, the bank has announced its intentions to
deleverage GBP2 billion of the Optimum portfolio and reduce its
RWAs, although the full impact on capital ratios is not yet

The relatively low BCA is constrained by the fact that despite
the implementation of the restructuring plan, the bank remains in
breach of its full ICG requirements and due to ongoing losses has
limited capacity for internal capital generation until 2019, in
Moody's view. This makes the bank dependent on a Tier 2 issue to
comply, but of which the success is far from certain. Moody's
also notes the outflow of deposits during the first half of 2017
which, if continued, may erode the bank's available liquid
assets. However, the agency notes that these outflows
subsequently stabilised and expects this trend to prevail
following the recapitalization.


The upgrade of the bank's long-term senior unsecured debt ratings
to Caa2 from Ca reflects the fact that the plan was carried out
without any impairment of this debt class and instead relied on
the conversion of Tier 2 subordinated debt into equity. It also
reflects the upgrade of the bank's standalone BCA to caa2, offset
by the lack of protection from more subordinated debt
liabilities. The senior unsecured debt will mature in late
September 2017, leaving the bank with no outstanding senior
unsecured bonds.


Moody's confirmation of the bank's long-term deposit ratings at
Caa2 reflects the upgrade of the bank's BCA to caa2 and the
agency's Loss Given Failure analysis for the bank's wholesale
uninsured deposits. With the expected repayment of the senior
debt and conversion of the Tier 2 instruments into equity, these
deposits are exposed to any loss exceeding the bank's equity.


The positive outlook on the bank's long-term ratings is driven by
the potential benefit to the bank's standalone BCA from the
continued improvement in asset risk as its non-core loan book
shrinks, cost-cutting measures are implemented, and profitability
improved. Nevertheless, Moody's expects these improvements to be
gradual, given a more uncertain macroeconomic context and a
subdued UK mortgage market.


A downgrade of the bank's standalone BCA, and correspondingly its
long-term debt and deposit ratings, could occur in the event of
losses resulting in a breach of the bank's Pillar 1 CET1
requirement, reduced liquidity or further deposit outflows, or
any other factor leading to an increased probability of
regulatory intervention.

The BCA could be upgraded if the bank meets its profitability and
capital targets while completing its reduction in non-core
lending. An upgrade in the BCA would likely lead to an upgrade in
all long-term debt and deposit ratings.

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


Issuer: Co-operative Bank Plc


-- Senior Unsecured Regular Bond/Debenture, Upgraded to Caa2
    Positive from Ca Rating Under Review

-- Senior Unsecured MTN Program, Upgraded to (P)Caa2 from (P)Ca

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

-- Baseline Credit Assessment, Upgraded to caa2 from ca

-- LT Counterparty Risk Assessment, Upgraded to B3(cr) from


-- LT Bank Deposits (Local & Foreign Currency), Confirmed at
    Caa2 Positive from Rating Under Review


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

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

-- Other Short Term, Affirmed (P)NP

-- Commercial Paper, Affirmed NP

Outlook Actions:

-- Outlook, Changed To Positive from Rating Under Review

DELPHI JERSEY: Moody's Assigns Ba3 CFR & B1 Senior Notes Rating
Moody's Investors Service assigned first time ratings to Delphi
Jersey Holdings plc including a Corporate Family Rating ("CFR")
at Ba3, senior unsecured at B1, and Speculative Grade Liquidity
Rating at SGL-2. The rating outlook is stable.

Delphi Automotive plc ("Delphi") intends to spin off its
Powertrain Systems segment (engine management systems and
aftermarket operations) to create DPS, a separate, independent,
publicly traded company. The spin-off is expected to be completed
by March of 2018, subject to customary market, regulatory and
other conditions. The net proceeds from the $750 million senior
unsecured notes and a $750 million term loan (unrated) are
expected to be used to fund a $1.148 billion special dividend to
Delphi, fund balance sheet cash, and pay related transaction
taxes, fees and expenses.

Delphi's senior unsecured Baa2 rating and stable outlook are
currently not impacted by this transaction, although Moody's
views the transaction as credit negative. About 22% of Delphi's
EBITDA generation for the LTM period ending June 30, 2017 was
derived from DPS. With no change to Delphi's post spin-off debt,
Delphi's pro forma debt/EBITDA could increase to 2.1x (after
Moody's standard adjustments) from about 1.9x for the LTM period
ending June 30, 2017. Delphi, post-spin-off of DPS, will remain a
substantial Tier 1 supplier increasingly focused on areas with
increasing vehicle content. The remaining Delphi business
generated about $12.4 billion of pro forma revenues and about
$2.2 billion of EBITDA for the LTM period ending June 30, 2017.

The following ratings were assigned:

Delphi Jersey Holdings plc:

Ba3, Corporate Family Rating;

Ba3-PD, Probability of Default Rating;

B1 (LGD5), to the $750 million senior unsecured notes due 2025;
(These notes are guaranteed by Delphi Powertrain Corporation)

SGL-2, Speculative Grade Liquidity Rating.

Rating Outlook: Stable

The $1.25 billion bank credit facility is not rated by Moody's.


DPS's Ba3 CFR reflects the company's competitive position as a
major global automotive supplier of powertrain products,
comparatively strong profit margins and moderate initial
leverage. DPS's engine management product are focused around
improving fuel efficiency and electronic controllers which are
experiencing increasing vehicle content. DPS's competitive
profile also includes diverse geographic, customer, and market
exposure. DPS's products offerings, along with restructuring
action taken over the recent years have supported a strong EBITA
margin of 11.5% (inclusive of Moody's standard adjustments) for
the LTM period ending June 30, 2017. Pro Forma for the spin-off
transaction, DPS's Debt/EBITDA is estimated to be moderate at
3.2x for the LTM period ending June 30, 2017.

While DPS's product offerings are well positioned, Moody's
believes that a number of challenges face the company. About 63%
of revenues are generated from light vehicle customers, a segment
where Moody's expects global automotive demand will remain modest
over the near-term. In addition, about 60% of the company's OEM
business is related to the internal combustion engine. Companies
with this exposure are expected to face a number of challenges
over the next several years as hybrid/electric and fully electric
vehicles increase in market penetration. Moody's believes
electric vehicles will not have a material share of automotive
production before the mid-to-late 2020's. Yet, global automotive
OEMs continue to make significant investments into electric and
hybrid powertrains, and the core related suppliers are
anticipated to follow suit. Further, a number of DPS's
competitors are segments within larger. and some more technology
oriented, companies. Ongoing, research and development investment
will be needed to remain competitive.

Other credit risks include: the high cyclicality within the
automotive industry; varying growth prospects in the regions in
which the company operates; varying demand for the products of
the company's automotive manufacturing customers; and increasing
complex vehicle content which requires incremental electrical and
connectivity components.

The majority of DPS's debt is borrowed in Europe. The senior
unsecured rating reflects Moody's EMEA approach within the Loss
Given Default Methodology, which includes treatment of trade
payables and U.K. pensions as secured amounts with priority over
the senior unsecured debt, based on the expected approach in
reorganization. In addition, although there will be secured debt
(the bank debt), the entities securing the secured debt are
estimated to have generated 10 to 15% of DPS's consolidated
adjusted EBITDA for 2016. Consequently, the secured debt is
expected to be in a somewhat more favorable recovery position
relative to the unsecured notes and would likely enjoy a modestly
higher recovery.

DPS's SGL-2 Speculative Grade Liquidity Rating anticipates a good
liquidity profile over the 12-18 months following the spin-off,
supported by cash, availability under a new revolving credit
facility, and our expectation of improving free cash flow
generation. Pro forma cash as of the close of the spin off is
anticipated to be $150 million and the $500 million revolving
credit facility, maturing in 2022, is expected to be unfunded.
Moody's estimates that DPS's free cash flow generation
immediately following the spin-off will be close to break-even.
While operating performance is expected to gradually improve over
the near-term, additional restructuring costs are anticipated to
consume cash. Free cash flow generation should improve
thereafter. The term loan A has modest amortization requirement
over the next 12-18 months. The financial covenant under the
senior secured facilities includes a net leverage ratio test for
which the company is expected to maintain ample covenant cushion
over the near-term.

DPS's stable rating outlook anticipates the company's strong
competitive position will be maintained over the intermediate-
term as profit improvement actions take hold.

The ratings could be upgraded if Moody's expects DPS to sustain
EBITA margins in the low double digits range, inclusive of
restructuring charges, with Debt/EBITDA sustained below 2.5x,
supported by positive free cash flow generation solidly in the
high-teens as percentage of debt annually, and balanced financial
policies, while maintaining a good liquidity profile.

The ratings could be downgraded with the expectation of material
deterioration of automotive demand or loss of a major customer,
if EBITA margins are anticipated to be sustained below 7%, or
Debt/EBITDA above 4.0x, or a deterioration in liquidity. Debt
funded acquisitions or large shareholder return actions could
also result a lower outlook or rating.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.

Delphi Jersey Holdings plc is a leading global automotive
supplier of engine management systems and aftermarket parts.
Components include advanced fuel injection systems, actuators,
valvetrain products, sensors, electronic control modules and
power electronics technologies. Revenues for the LTM period
ending  June 30, 2017 were approximately $4.6 billion.

TATA STEEL: Ditches GBP15-Bil. British Pension Scheme
Alan Tovey at The Telegraph reports that Tata Steel has finally
ditched the massive British pension scheme which threatened to
drag the UK company into insolvency.

The company, which was ravaged by the crisis that hit the sector
two years ago, has received formal confirmation from The Pensions
Regulator for a deal to separate itself from the GBP15 billion,
130,000-member retirement scheme, The Telegraph relates.

Under a deal known as a regulated apportionment arrangement
(RAA), Tata has paid GBP550 million to the British Steel Pension
Scheme (BSPS) and handed a third of the company in shares to the
scheme’s trustees, The Telegraph discloses.

Executives at Indian-owned Tata had warned that the business
could not afford to continue supporting the pension scheme,
saying without a deal the steel business would likely collapse,
taking almost 10,000 UK jobs with it, The Telegraph relays.

A deal with unions was thrashed out, agreeing that Tata would
pump GBP100 million into the business and maintain production at
its giant Port Talbot plant for a decade, in return for closing
the pension scheme, The Telegraph notes.

Under the RAA, the pension scheme is now under the control of the
Pension Protection Fund lifeboat, though Tata is sponsoring a new
pension scheme, which members can transfer to, The Telegraph

This new scheme will have lower increases in future payouts,
which Tata says means it will have a "better funding position
than the BSPS, posing significantly less risk to Tata Steel UK",
according to The Telegraph.

Both schemes will have lower payments than the original scheme,
The Telegraph says.

Steel unions, as cited by The Telegraph, said they "did not
celebrate" the move, but with the alternative being the
"inevitable insolvency of Tata Steel UK" and pensioners being
transferred to the pension lifeboat, it offered a better deal for

Tata Steel is the UK's biggest steel company.


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

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

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


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
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