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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Tuesday, September 19, 2017, Vol. 18, No. 186


                            Headlines


B U L G A R I A

* BULGARIA: Company Insolvencies Down 35.6% to 381 in 2016


F R A N C E

ANTALIS INTERNATIONAL: Fitch Withdraws 'B(EXP)' Long-Term IDR


G E O R G I A

MFO CRYSTAL: Fitch Assigns B Long-Term IDR, Outlook Stable


G E R M A N Y

AIR BERLIN: German Union Criticizes Delay in Sale Decision


I R E L A N D

OZLME II: Moody's Assigns B2(sf) Rating to Class F Notes
OZLME II: S&P Assigns B-(sf) Rating to Class F Notes


I T A L Y

ALITALIA SPA: Ryanair Intends to Submit Binding Bid


N E T H E R L A N D S

ELM BV 41: Moody's Raises Rating on EUR84MM Notes to B3


N O R W A Y

NORSKE SKOG: Seeks NOK400MM of New Equity Under Latest Debt Plan


P O L A N D

SKOK WYBRZEZE: KNF Halts Operations, Files for Bankruptcy


R U S S I A

ALMAZERGIENBANK: Fitch Lowers LT Issuer Default Ratings to 'B+'
NENETS AUTONOMOUS: Fitch Affirms BB- Long-Term IDR
RUSHYDRO CAPITAL: Moody's Rates Proposed Ruble-Denom. LPNs 'Ba1'
RUSHYDRO PJSC: S&P Rates Proposed Loan Participation Notes 'BB+'


S P A I N

* SPAIN: ABS SME 90-360 Day Delinquencies Drop in 3Mos Ended June


S W E D E N

OVAKO GROUP: Moody's Affirms B3 CFR, Revises Outlook to Positive
VERISURE MIDHOLDING: Moody's Hikes CFR to B1, Outlook Stable


U N I T E D   K I N G D O M

ANACAP FINANCIAL: S&P Assigns 'BB-' CCR, Outlook Stable
BELL POTTINGER: Man Involved in Deal with Guptas Leaves Rentokil
CYBG PLC: Moody's Puts Ba1 Rating on Review for Upgrade
INVESTEC FINANCE: Moody's Affirms (P)Ba1 Jr. Sub. MTN Prog Rating


                            *********



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B U L G A R I A
===============


* BULGARIA: Company Insolvencies Down 35.6% to 381 in 2016
----------------------------------------------------------
SeeNews reports that French credit insurance agency Coface said
the number of insolvencies of Bulgarian companies fell the most,
by 35.6% year-on-year to 381, among the countries of Central and
Eastern Europe in 2016.

"Among the 14 CEE countries covered by our analysis, eight
recorded a slump in insolvencies last year.  The strongest fall,
of 35.6%, was experienced in Bulgaria where the pharmaceuticals,
IT and education sectors hardly recorded any insolvencies,"
Coface, as cited by SeeNews, said in its Central & Eastern
European insolvencies overview report published earlier this
month.  The report comprises 14 countries in the CEE region,
SeeNews discloses.

Coface noted that indebtedness of Bulgarian companies remained
high, SeeNews relays.  Non-performing loans are a concern for
Bulgarian banks and for companies suffering from difficulties in
collecting receivables from some of their counterparties,
according to SeeNews.

Companies from the trade sector account for nearly a fifth of all
cases of insolvencies, followed by construction and real estate
firms with 15%, SeeNews says.  The main reasons for these
financial difficulties include high levels of indebtedness, poor
liquidity management and fewer funding opportunities, SeeNews
states.



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


ANTALIS INTERNATIONAL: Fitch Withdraws 'B(EXP)' Long-Term IDR
-------------------------------------------------------------
Fitch Ratings has withdrawn the 'B(EXP)' expected Long-Term
Issuer Default Rating (IDR) assigned to French business-to-
business distributor, Antalis International SA. Fitch has also
withdrawn the expected instrument rating of 'B+(EXP)' assigned to
the group's proposed senior secured bonds.

KEY RATING DRIVERS

Fitch is withdrawing the expected ratings assigned to Antalis, as
the group does not intend to proceed with the proposed bond
issuance. The expected ratings were assigned on July 4, 2017.


=============
G E O R G I A
=============


MFO CRYSTAL: Fitch Assigns B Long-Term IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned JSC MFO Crystal (Crystal) Long-Term
Issuer Default Ratings of 'B' with a Stable Outlook.

KEY RATING DRIVERS
IDR AND SENIOR DEBT

The ratings reflect the business focus of Crystal on microfinance
(MFO) lending in a high-risk operating environment in Georgia,
its rapid recent growth, and market and refinancing risks
resulting from the predominance of foreign-currency wholesale
funding. At the same time, the ratings also factor in Crystal's
sound performance to date, reflected in the company's solid asset
quality, profitability and capitalisation metrics.

The ratings are constrained by the mono-line business model, as
Crystal is focused on micro lending in Georgia. The franchise is
only modest as Crystal accounts for 12% of total microfinance
sector assets. At the same time, the company competes not only
with other MFOs in the sector, but also with banks that have
greater pricing power.

The ratings also reflect significant growth over 2013-2016 (on
average 53% annual growth) although this was partially driven by
local currency depreciation, and risks to performance as the
business model and loan book season. Internal capital generation
has been strong but has lagged asset growth, with capitalisation
supported by injections from new investors.

Significant market risk arises from the majority of funding being
in foreign currency (63% of total liabilities at end-1H17), while
the loan book is primarily in local currency, as the foreign
currency book comprised only 17% of total loans at end-1H17 and
is in run-off mode due to recently introduced regulatory
limitations. Crystal aims to operate with a minimal open currency
position and uses on- and off-balance sheet hedging. However, the
hedges are short-term, resulting in potential volatility to the
cost of hedging.

Reported asset quality metrics have been healthy, with the share
of non-performing loans (NPLs; loans overdue over 90 days)
constituting a low 0.6% of the gross book at end-2016 (the latest
available IFRS report) and being fully reserved. Based on
regulatory accounts NPLs remained at 0.6% at end-8M17,

The NPL origination ratio (defined as the net increase in NPLs
for the period plus write-offs divided by average performing
loans) was a low 1.9% in 2016, and loan impairment charges were
equal to 2.3% of average loans. However, the metrics should be
viewed in conjunction with Crystal's significant growth over the
last few years. The company reported only limited restructured
loans at 2% of gross loans.

Profitability has been solid, underpinned by high interest rates
on loans (averaging 34% in 2016) and cheap funding from IFIs and
international funds. Net interest income was 24% of average
earning assets in 2016, in line with the broader microfinance
sector. Profitability was also supported by the cost-efficient
business model, with cheap business origination channels (mobile
offices) and centralised processing. Provisioning costs consumed
a moderate 24% of pre-impairment profit in 2016. Return on equity
was a solid 24% in 2016 and in 8M17 (annualised) based on
regulatory accounts.

The Fitch Core Capital (FCC) to total assets ratio was a
reasonable 22% at end-2016, up from 17% in 2015, due to sound
internal capital generation and a GEL9.5 million equity injection
(equal to 8% of end-2015 total assets). The equity-to-assets
ratio was 23% at end-2016, providing a modest cushion over the
conservative statutory minimum of 20%. Based on regulatory
accounts, this ratio stood at 22.4% at end-8M17.

As a microfinance company, Crystal cannot take customer deposits
and therefore fully relies on wholesale funding. The company
sources foreign currency borrowings from IFIs and international
funds, and Georgian Lari funding (21% of total funding at end-
2016) from local banks. Creditors are reasonably diversified by
name, with the largest creditor accounting for 12% of total
funding. Management plans to tap the domestic bond market to
further diversify funding.

Crystal keeps only a modest cash cushion (7% of total assets at
end-1H17), yet liquidity is reasonable, as its assets are short-
term (average loan tenor is 20 months), amortising and cash-
generative. Borrowings are balanced by tenors with no significant
spikes in repayments.

RATING SENSITIVITIES
IDRS AND SENIOR DEBT

An extended record of sound performance, asset quality and
capitalisation, coupled with a notable further strengthening of
Crystal's franchise, could give result in upside for the ratings.

At the same time the ratings could be downgraded due to
significant deterioration of asset quality and profitability,
leading to capital erosion and greater pressure on liquidity.

The rating actions are:

JSC MFO Crystal
Long-Term Foreign and Local Currency IDRs: assigned at 'B';
Outlook Stable
Short-Term Foreign and Local Currency IDRs: assigned at 'B'
Senior unsecured rating: assigned at 'B(EXP)', Recovery Rating
'RR4'


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


AIR BERLIN: German Union Criticizes Delay in Sale Decision
----------------------------------------------------------
Maria Sheahan at Reuters reports that a German union criticized
Air Berlin's administrators for delaying a decision on a carve-up
of the insolvent airline until after this month's election,
saying it was irresponsible to leave thousands of jobs in the
balance.

According to Reuters, administrators are seeking to sell the
business, with bids due to be submitted by 2:00 p.m. (1200 GMT)
last Friday, Sept. 15.  However, a final decision has been pushed
back to Sept. 25, the day after Germany's national election and
four days later than previously planned, Reuters notes.

"This postponement is at the expenses of the workers, who want a
decision on their jobs and their future," Reuters quotes Verdi
union board member Christine Behle as saying in a statement on
Sept. 15.

                       About Air Berlin

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

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

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

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

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



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


OZLME II: Moody's Assigns B2(sf) Rating to Class F Notes
--------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by OZLME II
Designated Activity Company ("OZLME II" or the "Issuer"):

-- EUR225,000,000 Class A-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aaa (sf)

-- EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aaa (sf)

-- EUR35,500,000 Class B-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aa2 (sf)

-- EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aa2 (sf)

-- EUR24,500,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned A2 (sf)

-- EUR20,500,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Baa2 (sf)

-- EUR23,300,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Ba2 (sf)

-- EUR11,800,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

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

OZLME II is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, mezzanine obligations and high
yield bonds. The portfolio is expected to be at least 72% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

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

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR44.65M of subordinated notes which are not
rated.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority. In connection with an
optional redemption in whole, this CLO also gives discretion to
Och-Ziff to designate excess principal proceeds as interest
proceeds prior to the relevant redemption date. In order to
derive the excess par amount, the transaction does not adjust for
defaulted and impaired collateral which exposes noteholders to
the risk of a potential shortfall in principal proceeds required
for the optional redemption in whole following such designation
by the manager.

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

Par amount: EUR400,000,000

Diversity Score: 43

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.75%

Weighted Average Coupon (WAC): 5.0%

Weighted Average Recovery Rate (WARR): 42.0%

Weighted Average Life (WAL): 8 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

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

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

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -2

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in August 2017.

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

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


OZLME II: S&P Assigns B-(sf) Rating to Class F Notes
----------------------------------------------------
S&P Global Ratings assigned its credit ratings to OZLME II DAC's
class A-1, A-2, B-1, B-2, C, D, E, and F fixed- and floating-rate
notes. At closing, OZLME II also issued an unrated subordinated
class of notes.

OZLME II is a European cash flow collateralized loan obligation
(CLO), securitizing a portfolio of primarily senior secured euro-
denominated leveraged loans and bonds issued by European
borrowers. Och-Ziff Europe Loan Management Ltd. is the collateral
manager.

Under the transaction documents, the rated notes pay quarterly
interest unless there is a frequency switch event. Following
this, the notes permanently switch to semiannual payments. The
portfolio's reinvestment period ends approximately four years
after closing.

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

"In our cash flow analysis, we used the EUR400 million target par
amount, a weighted-average spread (3.75%), a weighted-average
coupon (5.00%), and weighted-average recovery rates at each
rating level. We applied various cash flow stress scenarios,
using four different default patterns, in conjunction with
different interest rate stress scenarios for each liability
rating category.

Citibank N.A., London branch is the bank account provider and
custodian. The documented downgrade remedies are in line with our
current counterparty criteria (see "Counterparty Risk Framework
Methodology And Assumptions," published on June 25, 2013).

"Following the application of our nonsovereign ratings criteria,
we consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned rating levels (see
"Ratings Above The Sovereign - Structured Finance: Methodology
And Assumptions," published on Aug. 8, 2016). This is because the
concentration of the pool comprising assets in countries rated
lower than 'A-' is limited to 10% of the aggregate collateral
balance.

The issuer is bankruptcy remote, in accordance with our legal
criteria (see "Asset Isolation And Special-Purpose Entity
Methodology," published on March 29, 2017).

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, it believes its ratings are
commensurate with the available credit enhancement for each class
of notes.


RATINGS LIST

  OZLME II DAC EUR415.250 Million Senior Secured Floating-Rate
And Fixed-Rate Notes And Subordinated Notes

  Class              Rating            Amount
                                     (mil. EUR)

  A-1                AAA (sf)          225.00
  A-2                AAA (sf)           10.00
  B-1                AA (sf)            35.50
  B-2                AA (sf)            20.00
  C                  A (sf)             24.50
  D                  BBB (sf)           20.50
  E                  BB (sf)            23.30
  F                  B- (sf)            11.80
  Sub                NR                 44.65

  Sub--Subordinated loan.
  NR--Not rated.


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


ALITALIA SPA: Ryanair Intends to Submit Binding Bid
---------------------------------------------------
John Mulligan at Belfast Telegraph reports that Ryanair boss
Michael O'Leary has confirmed his company intends to submit a
binding bid for Italian airline Alitalia including its long-haul
operations in what would be a significant strategic shift for the
carrier.

Mr. O'Leary said on Sept. 14 that if Ryanair was successful with
its bid, which is due by Oct. 2, it would retain the Alitalia
brand and its long-haul operations, but would change the
ownership structure of the company's short-haul fleet, which is
currently leased, Belfast Telegraph relates.

Ryanair runs 13 routes out of Belfast International Airport and
is one of about 10 airlines and groups that in July submitted
non-binding agreements to Alitalia's administrator to buy the
ailing carrier or parts of it, Belfast Telegraph notes.

Other bidders include easyJet, Aer Lingus owner IAG, Delta and
Air France, Belfast Telegraph states.  At the time the non-
binding agreement was submitted, Ryanair chief financial officer
Neil Sorahan said that Alitalia would need to be "radically
overhauled" before the business would get involved with it,
Belfast Telegraph recounts.

According to Belfast Telegraph, speaking in Berlin on Sept. 14,
Mr. O'Leary confirmed that Ryanair was planning on retaining
Alitalia's long-haul business and the brand if the bid was
successful.

                           About Alitalia

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

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

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

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

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



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


ELM BV 41: Moody's Raises Rating on EUR84MM Notes to B3
-------------------------------------------------------
Moody's Investors Service announced that it has upgraded the
rating of the following notes issued by ELM B.V. under Series 41.

Issuer: ELM B.V.:

-- EUR84,000,000 (Current outstanding balance of EUR81.12M)
    Floating Rate Credit Linked Secured Notes due 2056, Upgraded
    to B3 (sf); previously on Aug 21, 2013 Downgraded to
    Caa2 (sf)

ELM B.V. Series 41 is a managed synthetic collateralized debt
obligation backed primarily by a portfolio of euro dominated
Structured Finance securities. At present, the portfolio is
composed mainly of Prime RMBS (90.4%), Subprime RMBS (5.7%) and
CMBS (3.9%). Series 41 is a first loss piece and currently has a
thickness of 45%.

RATINGS RATIONALE

The rating action on the notes is primarily a result of an
improvement in credit quality of the underlying reference
portfolio since Jan 2016. The 10 year weighted average rating
factor (or "WARF") has improved to 29.3 (equivalent to a Aa3 (sf)
average rating) in August 2017 from 129.6 (equivalent to an A3
(sf) average rating) in January 2016.

The rated tranche is a first loss piece whose credit quality is
directly influenced by that of the worst rated asset in the
reference portfolio. Currently, the lowest rated performing asset
is the Class A Notes of Magellan Mortgages No. 3 plc, rated A3
(sf) and represents 4.3% of the reference portfolio. In addition,
80% of the reference portfolio is rated Aa3 (sf) or higher.
Therefore, the likelihood of further losses to the tranche is
limited.

Moody's notes that Series 41 has realized a loss of EUR2,881,402
(or 3.43% of the tranche notional amount) following a credit
event on the Class A2 Notes of Deco 6 -- UK Large Loan 2 plc.

Moody's has taken into account the size of the loss as well as
the credit quality of the reference portfolio in positioning the
rating of Series 41.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's
Approach to Rating SF CDOs" published in June 2017.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analysis on the key parameters for the rated notes:

Jump to Caa2 (sf) - Moody's considered a model run where the A3
(sf) rated asset in the reference portfolio was downgraded to
Caa2 (sf). The model output for this run was three notches lower
than the base-case model output.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of 1) uncertainty about credit conditions in the
general economy 2) divergence in the legal interpretation of CDO
documentation by different transactional parties due to or
because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

1) Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high prepayment
levels or collateral sales by the collateral manager. Fast
amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

In rating this transaction, Moody's used CDROM to model the cash
flows and determine the loss for each tranche. The Moody's
CDROM(TM) is a Monte Carlo simulation which takes the Moody's
default probabilities as input. Each SF CDO reference asset is
modelled individually with a standard multi-factor model
incorporating intra- and inter-industry correlation. The
correlation structure is based on a Gaussian copula. In each
Monte Carlo scenario, defaults are simulated. Losses on the
portfolio are then derived, and allocated to the notes in reverse
order of priority to derive the loss on the notes issued by the
Issuer. By repeating this process and averaging over the number
of simulations, an estimate of the expected loss borne by the
notes is derived. As such, Moody's analysis encompasses the
assessment of stressed scenarios.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


===========
N O R W A Y
===========


NORSKE SKOG: Seeks NOK400MM of New Equity Under Latest Debt Plan
----------------------------------------------------------------
Luca Casiraghi and Jonas Cho Walsgard at Bloomberg News report
that Norske Skogindustrier ASA is seeking NOK400 million (US$51
million) of new equity from shareholders and unsecured creditors
in its latest attempt to restructure US$1 billion of debt to
avoid insolvency.

According to Bloomberg, the company said in a statement the
Norwegian newsprint producer wants fresh capital to help prevent
existing shareholders and unsecured bondholders from being wiped
out.

The proposal launched by chairman and largest shareholder
Christen Sveaas on Sept. 18 seeks to counter a request for
immediate repayment by holders of EUR290 million (US$347 million)
of secured bonds, which could take over the assets and leave
unsecured creditors and shareholders with nothing, Bloomberg
discloses.

The company has been struggling to repay its debt as sales
dwindled amid declining newspaper readership, Bloomberg states.

Under the new plan, EUR390 million of secured creditors will own
at least 77% of the restructured company, and will receive a new
EUR250 million bond, Bloomberg relays.  Unsecured bondholders and
existing shareholders will own as much as 23% of Norske Skog,
Bloomberg notes.

Creditors will have until Sept. 29 to approve the proposal,
Bloomberg says.

                        About Norske Skog

Norske Skogindustrier ASA or Norske Skog, which translates as
Norwegian Forest Industries, is a Norwegian pulp and paper
company based in Oslo, Norway and established in 1962.

                           *   *   *

As reported by the Troubled Company Reporter-Europe on
August 7, 2017, S&P Global Ratings lowered to 'D' (default) from
'C' its issue rating on the unsecured notes due in 2026 issued by
Norwegian paper producer Norske Skogindustrier ASA (Norske Skog).
At the same time, S&P removed the rating from CreditWatch with
negative implications, where the rating placed it on June 6,
2017. S&P said, "We also affirmed the long- and short-term
corporate credit ratings on Norske Skog at 'SD' (selective
default) and affirmed our 'D' issue rating on the senior secured
notes maturing in 2019."  The 'C' ratings on the remaining
unsecured debt remain on CreditWatch negative. The recovery
rating on these notes is unchanged at '6', reflecting our
expectation of negligible (0%-10%) recovery in the event of a
conventional default.  The downgrade follows the nonpayment of
the cash coupon due on Norske Skog's 2026 unsecured notes before
the contractual grace period expired on July 30, 2017.

The TCR-Europe reported on July 24, 2017 that Moody's Investors
Service downgraded the probability of default rating (PDR) of
Norske Skogindustrier ASA (Norske Skog) to Ca-PD/LD from Caa3-PD.
Concurrently, Moody's has affirmed Norske Skog's corporate family
rating (CFR) of Caa3.  In addition, Moody's also affirmed the C
rating of Norske Skog's global notes due 2026 and 2033 and its
perpetual notes due 2115, the Caa2 rating of the senior secured
notes issued by Norske Skog AS and downgraded the rating of the
global notes due 2021 and 2023 issued by Norske Skog Holdings AS
to Ca from Caa3.  The outlook on the ratings remains stable.  The
downgrade of the PDR to Ca-PD/LD from Caa3-PD reflects the fact
that Norske Skog did not pay the interest payment on its senior
secured notes issued by Norske Skog AS, even after the 30 day
grace period had elapsed on July 15.  This constitutes an event
of default based on Moody's definition, in spite of the existence
of a standstill agreement with the debt holders securing that an
enforcement will not be made under the secured notes due to non-
payment of interest.  In addition, the likelihood of further
events of defaults in the next 12-18 months remains fairly high,
as the company is also amidst discussions around an exchange
offer that would most likely involve equitisation of debt, which
the rating agency would most likely view as a distressed
exchange.



===========
P O L A N D
===========


SKOK WYBRZEZE: KNF Halts Operations, Files for Bankruptcy
---------------------------------------------------------
Bokszczanin Marcin at Polska Agencja Prasowa SA reports that
Poland's financial market regulator KNF said in a statement it
suspended the operations and filed for bankruptcy of SKOK
Wybrzeze credit union.

According to PAP, at end-July, the credit union held client
deposits of PLN128.1 million.



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


ALMAZERGIENBANK: Fitch Lowers LT Issuer Default Ratings to 'B+'
---------------------------------------------------------------
Fitch Ratings has downgraded Almazergienbank's (AEB) Long-Term
Issuer Default Ratings (IDRs) to 'B+' from 'BB-' and Viability
Rating (VR) to 'b-' from 'b'. Fitch has also placed the bank's
ratings on Rating Watch Negative (RWN).

KEY RATING DRIVERS
IDRS, VR AND SUPPORT RATING

The downgrade of AEB's Long-Term IDRs to 'B+' reflects an
anticipated significant delay in the provision of capital support
from the bank's majority shareholder Russia's Republic of Sakha
(Yakutia) (BBB-/Stable), which is needed to reserve sizable
credit risks identified by the Central Bank of Russia (CBR)
during its recent review of AEB, potentially making the bank
reliant on regulatory forbearance to comply with capital ratios.
The downgrade of AEB's VR to 'b-' mainly reflects much weaker
regulatory capital position after creation of reserves in July-
August 2017.

The RWN reflects some uncertainty over the planned capital
support and availability of temporary regulatory forbearance in
the form of deferred reserve requirement.

Fitch understands that the CBR identified a sizeable reserve
requirement during its recent review of the bank. The bank
subsequently created some reserves, resulting in its Tier 1
regulatory capital ratio decreasing to 6.4% by end-August 2017
compared with the 6% minimum, excluding the additional 1.25%
capital conservation buffer. However, Fitch understands that
further reserving may be required and the bank may need to rely
on regulatory forbearance for a deferral of provisioning, as it
expects to receive capital support from the republic in the form
of a sizable equity injection in 2Q18 and a conversion of the
existing Tier 2 subordinated debt into Tier 1 perpetual in 4Q17.

The significant delay of equity support is due to the republic
needing to sell some assets to generate enough cash, as available
resources are limited, Fitch understands. According to the
republic's representatives, the sale of these assets is
principally agreed with the buyer and should be concluded by end-
2017, but the final terms are not fixed yet, which makes the
exact timing and amount of future equity injection less certain,
in Fitch's view. As for the subordinated debt, its conversion has
been submitted for regulatory approval.

RATING SENSITIVITIES
IDRS AND SUPPORT RATING

Fitch will resolve the RWN and downgrade the IDRs if capital
support becomes less certain or further delayed, or if the
regulator does not allow a temporary forbearance resulting in an
intervention. The IDRs could stabilise at 'B+', if the CBR allows
forbearance and the future capital support is provided as
expected and is sufficient to address identified asset quality
risks.

The bank's IDRs could also be downgraded if (i) Sakha is
downgraded; (ii) the propensity of the parent to provide support
diminishes; or (iii) AEB is sold to a financially weaker
investor.

VR
Fitch will resolve the RWN and downgrade the VR if the bank
breaches capital ratios due to absence of capital support or
regulatory forbearance. The bank's VR could stabilise at 'b-' or
be upgraded if the bank's capital position improves significantly
due to capital support coming in as planned.

The rating actions are:

AEB
Long-Term Foreign- and Local-Currency IDRs: downgraded to 'B+'
from 'BB-'; placed on RWN
Short-Term Foreign-Currency IDR: 'B'; placed on RWN
Viability Rating: downgraded to 'b-' from 'b'; placed on RWN
Support Rating: downgraded to '4' from '3'; placed on RWN


NENETS AUTONOMOUS: Fitch Affirms BB- Long-Term IDR
--------------------------------------------------
Fitch Ratings has affirmed Russia's Nenets Autonomous District
(NAD) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) at 'BB-' with Stable Outlooks and Short-Term
Foreign Currency IDR at 'B'.

The affirmation reflects Fitch's unchanged base-case scenario
regarding the district's weak, but recovering budgetary
performance, concentrated economy, and the weak institutional
framework for Russian sub-nationals. The ratings also take into
account the district's moderate debt and strong per capita wealth
metrics.

KEY RATING DRIVERS

In line with Fitch previous projections Fitch expects NAD to post
a weak fiscal performance in 2017, with the operating margin
likely remaining negative (2016: -12.8%). Thereafter Fitch
projects restoration of the margin up to 1.2%-3.0% is in 2018-
2019, underpinned by steady inflow of taxes and fees underpinned
by a restoration in the oil and gas sector, accompanied by
expected reduction in operating and capital expenditure.

NAD's interim fiscal performance improved, with surplus before
debt variation of about 6% by end-7M17, brought by advanced
payments of taxes and collection of non-tax revenue. However,
full-year performance will return to projections, as the
district's opex and capex is unevenly paid, with major bills
expensed in the fourth quarter. The district is likely to post a
full-year deficit before debt variation of about 10% of total
revenue in 2017, reducing it further to about 4% in 2018-2019
(2016: 22%).

Fitch expects the significant revenue volatility and subsequent
deterioration of NAD's fiscal performance in recent years to
gradually subside, driven by more resilient revenue mix and an
expected improvement in the district's prime sector. Property
tax, which is less prone to business cycles, is expected to
stabilise at about 45% of the district's operating revenue in
2017 (2016: 46% and 2015: 29%). Additionally, proceeds from
corporate income tax (CIT) and the royalty on Haryaga produce
sharing agreement (PSA) are projected to increase in 2017, due to
commencement of new oil fields and thus greater profitability.

NAD's interim cash position was sound with RUB1.5 billion held on
accounts as of end-7M17 (2016: RUB358.5 million), cash holdings
are expected to normalise by the year-end reflecting normal
cyclicality in revenue and expenditure dynamics. The district's
interim debt had increased to RUB4.03 billion by end-7M17 (2016:
RUB3.6 billion). Fitch expects full-year debt close to RUB5
billion or 40%-45% of current revenue in 2017-2019 (2016: 29.5%),
which is commensurate with the ratings.

Nonetheless, the district bears refinancing risk on its debt, as
the loans are short term and almost the entire debt stock should
be rolled over every year. To mitigate this risk, NAD's
administration is gradually switching to debt instruments with
longer maturity by replacing short term bank loans with medium-
term ones and expected domestic bonds issuance up to RUB2 billion
in 2H17.

Fitch views the district'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.

The district is one of the wealthiest amongst its peers by per
capita metrics, despite being the smallest region in Russia by
population (44,000 residents). In 2015 gross regional product per
capita more than 15x exceeded the national median, while the 2016
average salary was 253% of the national median.

NAD's economic profile is strong, but concentrated in the prime
sector. Oil and gas companies comprise the district's list of top
10 taxpayers and accounted for 76% of 2016 budget tax revenue
(2015: 85.9%). The concentration of the tax base in the oil and
gas sector exposes the district's revenue to volatility through
commodity price and FX fluctuations and changes to the national
fiscal regime.

RATING SENSITIVITIES

An improvement in the operating balance towards 10% of operating
revenue, coupled with debt coverage ratio (direct risk to current
balance) at around 10 years for a sustained period could lead to
an upgrade.

Inability to restore a positive current balance and to narrow the
deficit to below 10% of total revenue could lead to a downgrade
of NAD's ratings.


RUSHYDRO CAPITAL: Moody's Rates Proposed Ruble-Denom. LPNs 'Ba1'
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating with a loss
given default assessment of LGD3 to the proposed ruble-
denominated senior unsecured loan participation notes ('LPNs' or
the 'Notes') to be issued by RusHydro Capital Markets DAC. The
Issuer will in turn on-lend the proceeds to RusHydro, PJSC
('RusHydro', Ba1 stable).

The outlook on the rating is stable.

RATINGS RATIONALE

The Notes will be issued by RusHydro Capital Markets DAC, a newly
formed orphan vehicle, for the sole purpose of financing a loan
to RusHydro under the terms of an underlying loan agreement (the
'Loan Agreement') between the Issuer and RusHydro. RusHydro will
use the proceeds of the loan for general corporate purposes.
Noteholders will only have limited recourse to the Issuer and
will rely solely on RusHydro's credit quality to service and
repay the debt.

The Ba1 rating assigned to the Notes is in line with RusHydro's
corporate family rating (CFR) and reflects Moody's view that the
RusHydro's obligations under the Loan Agreement, which will
mirror the Issuer's obligations under the proposed Notes, will
rank pari passu with other outstanding unsecured debt of
RusHydro.

The noteholders will have the benefit of a negative pledge and
certain covenants granted by RusHydro in the underlying Loan
Agreement, including restrictions on mergers, disposals and new
debt incurrence if leverage ratio calculated as consolidated net
indebtedness to 12-month consolidated EBITDA exceeds 3.5x. The
cross-default clause embedded in the bond documentation will
cover, inter alia, a failure by RusHydro or any of its material
subsidiaries to pay any of its financial indebtedness in the
amount exceeding $50 million.

RusHydro's Ba1 CFR positively reflects (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, RusHydro's 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.

RATING OUTLOOK

The outlook on RusHydro's rating is stable and reflects Moody's
expectations that (1) the company'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.

WHAT COULD CHANGE THE RATING UP/DOWN

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 this rating were Unregulated Utilities
and Unregulated Power Companies published in May 2017, and
Government-Related Issuers published in August 2017.

CORPORATE PROFILE

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. In the last twelve months ended 30 June
2017, RusHydro generated RUB367 billion of revenue and RUB104
billion of EBITDA.


RUSHYDRO PJSC: S&P Rates Proposed Loan Participation Notes 'BB+'
----------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'BB+' long-term
issue rating to the proposed loan participation notes (LPNs) of
Russian state-controlled electricity producer PJSC RusHydro
(foreign and local currency BB+/Positive/B). The LPNs will be
issued by Rushydro Capital Markets DAC, an orphan financing
vehicle of RusHydro.

The rating on the proposed LPNs mirrors the long-term local
currency rating on RusHydro. S&P said, "We understand that the
share of priority debt at RusHydro is below 15% of adjusted net
assets, and that the parent operates the group's key cash-
generating hydropower stations, while the most indebted
subsidiary, RAO ES of the East, is the weakest group entity.

"We understand the proposed LPNs are backed by senior unsecured
obligations of RusHydro, with equivalent payment terms, and that
RusHydro Capital Markets DAC is a new strategic financing entity
set up solely to raise debt on behalf of the RusHydro group. We
believe that RusHydro is willing and able to support Rushydro
Capital Markets DAC to ensure full and timely payment of interest
and principal when due on the LPNs, including any of the entity's
expenses."


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


* SPAIN: ABS SME 90-360 Day Delinquencies Drop in 3Mos Ended June
-----------------------------------------------------------------
The 90-360 day delinquencies of the Spanish asset-backed
securities backed by loans to small and medium-sized enterprises
(ABS SME) decreased to 1.4% of original pool balance in June 2017
from 1.6% in March 2017 according to the latest indices published
by Moody's Investors Service.

The 60-90 day delinquency index increased to 0.5% in June 2017
from 0.4% in March 2017. Cumulative default rate remained stable
at around 3.0% in the same period.

The annualized monthly constant prepayment rate remained stable
at 10.0% in June 2017, slightly down from the CPR observed in
December 2016 at 11.2%.

As of June 2017, Moody's rated 31 transactions in the Spanish ABS
SME market, with an outstanding pool balance of EUR13.9 billion
compared to EUR15.3 billion in March 2017, representing a
decrease of 8.8%.


===========
S W E D E N
===========


OVAKO GROUP: Moody's Affirms B3 CFR, Revises Outlook to Positive
----------------------------------------------------------------
Moody's Investors Service has affirmed Ovako Group AB's
('Ovako)'s corporate family rating (CFR) and probability of
default rating (PDR) at B3 and B2-PD, respectively. Moody's has
also assigned a B3 rating on the new EUR300 million senior
secured notes due 2022 which Ovako AB (publ), a fully owned
subsidiary of Ovako, will issue. The proceeds of the new notes
should be used to repay in full the existing EUR300 million
senior secured notes due 2019, whose rating has been affirmed at
B3. Once fully repaid, the rating on these notes will be
withdrawn.

Concurrently, Moody's changed the outlook on all ratings to
positive from stable.

RATINGS RATIONALE

The affirmation of Ovako's B3 CFR reflects Moody's balanced
assessment of the company main credits strengths and weaknesses.
Among the credit supportive considerations, Moody's acknowledges
the company's (i) leading regional market position in the
European engineering steel market; (ii) focus on niche specialty
products; (iii) majority of revenues being contracted with a
pricing mechanism allowing to pass-through changes in raw
material costs with a limited time lag; and (iv) adequate
liquidity, with an improved debt maturity profile pro-forma for
the contemplated debt refinancing transaction. However, these
positives are offset by Ovako's (i) still high albeit improving
adjusted gross leverage of 4.8x at the end of June 2017; (ii)
cyclical end-markets, resulting in a volatile earnings profile;
(iii) competitive niche market affected by price pressures; (iv)
small scale of operations, with annual revenues of less than EUR1
billion; and (v) limited geographic and customer diversity.

RATIONALE FOR THE POSITIVE OUTLOOK

The change of the outlook from stable to positive reflects
Moody's expectation that the company's operating performance and
credit metrics, which already recovered in the last twelve months
from weak levels in 2015 and early 2016, will continue to improve
during the next 12 to 18 months, resulting into a financial
profile more commensurate with a B2 rating. Moody's estimates
that in 2018 the company should be able to reach an EBIT margin
close to 5%, from 4% in the last twelve months ('LTM') to June
2017, driven by stronger volumes supporting higher capacity
utilization rates, a more profitable product mix focused on
higher priced applications, and cumulative cost savings of at
least EUR50 million by the end of 2018, according to the 2016-
2018 management restructuring plan, whose implementation is ahead
of schedule. Furthermore, the rating agency believes that a
sustained improvement in operating profitability should lead to a
sustainably lower leverage and higher free cash flow (FCF).
Moody's estimates an adjusted gross leverage of c. 4x by the end
of 2018, from 4.8x LTM June 2017 and 4.6x projected for this
year-end, and an adjusted FCF/Debt ratio of c.5% by end of 2018,
from -1% LTM June 2017 and c.1.5% estimated for 2017. Moody's
cash flow projections assume no dividends, working capital
moderately rising with sales but consistently accounting for 22%
of annual revenues, and adjusted annual capex of c. EUR45
million.

LIQUIDITY

Moody's considers Ovako's liquidity as adequate. Its cash balance
of EUR45 million at the end of June 2017, positive and gradually
rising FCF over the next 18-24 months, no meaningful debt
maturity until 2022 pro-forma for the contemplated refinancing
transaction, and a fully available EUR40 million committed
revolving credit facility due 2019, which should also be
refinanced with a new longer dated one as part of the deal,
should support Ovako's liquidity.

STRUCTURAL CONSIDERATION

The new EUR300 million senior secured notes, EUR40 million
revolving credit facility (RCF), EUR48 million equivalent pension
insurance line and permitted hedging liabilities all share the
same security and guarantee package, with guarantors representing
around 90% of sales, EBITDA and assets. However, the pension
insurance line has first priority in respect to enforcement
proceeds, followed by the RCF and hedging liabilities. The new
notes, like the outstanding ones which will be refinanced, will
be subordinated to the above debt instruments in respect of
enforcement proceeds. Given the limited amount of contractually
senior debt ranking ahead of the new notes, their rating is B3,
in line with the CFR. This outcome assumes a family recovery rate
of 35%, which looks appropriate considering the small size of the
RCF and its covenant-lite terms, with only one springing
covenant.

WHAT COULD CHANGE THE RATINGS UP/DOWN

An upgrade of the rating could be envisaged if (1) adjusted
debt/EBITDA around 4.0x, (2) EBIT margins are 5% or higher and
(3) sustained positive FCF generation.

The rating could be downgraded if Ovako's (1) liquidity
deteriorates materially as a result of sustained weak operating
performance and negative FCF over a prolonged period; (2) EBIT
margin falls below 3% on a sustained basis; (3) adjusted
debt/EBITDA rises sustainably above 6.0x. A more aggressive than
currently assumed financial policy, leading to large debt funded
M&A and/or dividend recapitalisations, would also exert negative
rating pressure, if resulting in weaker credit metrics and
liquidity.

The principal methodology used in these ratings was Steel
Industry published in September 2017.

Headquartered in Stockholm, Sweden, Ovako is a leading European
producer of engineering steel for customers in the bearing,
transportation, mining and manufacturing industries. Its
production is based on recycled steel (scrap) and includes steel
in the form of bars, tubes, rings and pre-components. It operates
ten production facilities in Europe and a number of service and
sales offices in Europe, the US and Asia.

Ovako, wholly owned by Triako Holdco AB, was acquired by funds
managed by Triton in 2010. For the year ending December 31, 2016,
the company achieved sales of EUR781 million and an EBITDA after
Moody's adjustments of EUR70 million.


VERISURE MIDHOLDING: Moody's Hikes CFR to B1, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) of Sweden-based monitored alarm company Verisure
Midholding AB to B1 from B2.

The rating action takes into account the following factors:

- strong growth in subscribers, and revenue and profitability
   per customer, alongside stable or declining attrition rates
   which the rating agency expects to continue

- gradual improvement in cash generation on a steady-state
   basis, excluding costs of growing the subscriber base and
   significant reduction in leverage (debt-to-recurring-monthly
   revenue ("RMR") declining to 31.2x as of June 30, 2017).

   At the same time, Moody's has also upgraded the following
   Verisure's ratings:

- probability of default rating (PDR) to B1-PD from B2-PD

- ratings of EUR1,690 million senior secured term loan B
   maturing in 2022, the EUR300 million senior secured revolving
   credit facility maturing in 2021 and the EUR630 million senior
   secured notes due 2022, all issued by Verisure Holding AB to
   Ba3 from B1

- rating of the senior unsecured notes due 2023 issued by
   Verisure Midholding AB to B3 from Caa1

The outlook on all ratings has changed to stable from positive.

RATINGS RATIONALE

The B1 CFR of Verisure reflects the group's leading position in
the European residential home and small business monitored alarms
(RHSB) market, which remains underpenetrated compared to the US
offering continued high growth potential. It also reflects
Verisure's solid track record of continuous growth in average
revenue per user (ARPU) and subscriber base while lowering churn
rates. The rating incorporates the strong current trading
performance in the six months to June 2017 with organic revenue
and company adjusted EBITDA up by approximately 17% and 23% year-
on-year respectively. It also reflects the positive deleveraging
prospects and Moody's expectation of a gradual cash flow
improvement supported by the low churn rate and the
implementation of cost saving initiatives.

The rating also captures Verisure's high leverage of 5.7x (gross
Moody's adjusted) as of June 30, 2017, albeit significantly below
June 2015 (at 8.2x pro forma for the LBO transaction) and 6.5x in
September 2016 due to strong EBITDA growth. It also reflects the
negative free cash flow as a result of significant investment to
capture new subscribers and the relatively high geographic
concentration with around one-third of revenues originating in
Spain. In addition the rating reflects the potential long term
threat from new entrants and existing players, including cable
and telecommunication providers. Finally, the rating is
negatively impacted by continued releveraging events from
additional debt raising exercises to support customer acquisition
growth. As the customer portfolio grows and the company becomes
closer to self-funding its growth, further debt raising may
become more limited. However there remain ongoing risks that new
debt will be raised either for subscriber acquisitions or
dividends which would slow the pace of deleveraging.

Rating Outlook

The stable outlook reflects Moody's expectation of sustained
deleveraging through EBITDA growth whilst cancellation rates and
customer acquisition costs remain stable. Moody's expects the
subscriber base to grow leading to improved cash flow on a
steady-state basis before growth in new subscribers. Moody's also
anticipates that releveraging events through tapping the existing
debt will be more limited than seen in 2016-2017.

What Could Change the Rating - Up

Positive rating pressure could develop if Verisure reduces its
debt / RMR below 25x and increases free cash flow (before growth
spending) to debt towards 15%, with free cash flow (after growth
spending) becoming solidly positive. It also assumes an increased
clarity around its financial policy limiting further dividend
payments and requirements for additional debt financing.

What Could Change the Rating - Down

Downward rating pressure could develop if within the next 12-18
months the company does not deliver continued improvement in its
metrics as expected, i.e. reduce its debt / RMR below 30x,
increase free cash flow (before growth spending) to debt ratio to
10% or free cash flow (after growth spending) becoming positive.

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

Corporate Profile

Headquartered in Malmo, Sweden, Verisure Midholding AB is a
leading provider of monitored alarm solutions operating under the
Securitas Direct and Verisure brand names. It designs, sells and
installs alarms and provides ongoing monitoring services to
residential and small sized businesses across 14 countries in
Europe and Latin America. The customer base consists of
approximately 2.4 million subscribers. The company has over
11,000 employees and for the last twelve months ended June 30,
2017, it reported revenues of approximately EUR1.3 billion.

Verisure (then Securitas Direct) was founded in 1988 as a unit of
Securitas AB. It was demerged and listed on the Stockholm Stock
Exchange in 2006. After a 9% stake in the company was acquired by
the Government of Singapore ("GIC") during Q3 2017 the company
remains controlled by Hellman & Friedman (85% equity) with a 6%
stake owned by the management.


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


ANACAP FINANCIAL: S&P Assigns 'BB-' CCR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings said it has assigned its 'BB-' long-term
counterparty credit rating to AnaCap Financial Europe S.A. (AFE).
The outlook is stable.

At the same time, S&P assigned its 'BB-' issue rating and
recovery rating of '3' to the proposed senior secured notes
issued by AFE, indicating its expectation of meaningful recovery
(50%-70%; rounded estimate: 60%) in the event of payment default.

These ratings are in line with the preliminary ratings assigned
on July 10, 2017 (see "Debt Purchaser AnaCap Financial Europe
Assigned 'BB-' Preliminary Rating; Outlook Stable," published on
RatingsDirect).

The rating on AFE reflects S&P's view of its lack of operational
track record under the new structure, its limited scale relative
to rated debt purchasing peers, and its narrow business profile.
These weaknesses are mitigated by its good market position in its
primary markets; its ability to leverage the financial services
expertise of AnaCap Financial Partners; and its relatively low
leverage and good debt-servicing.

AFE is a relatively new entity created under a reserved
alternative investment fund (RAIF) structure in Luxembourg.
Assets from existing funds of AnaCap Financial Partners, which
include financial services nonperforming loans and performing
loans, have been transferred into the new group.

AFE is an intermediate nonoperating holding company (NOHC), which
consolidates the activities of the group. AFE is owned by another
intermediate NOHC, AnaCap Financial Holdings ScS(p) (AFH), which
in turn is owned by AnaCap Entities. S&P said, "Our group credit
profile (GCP) captures the restricted group as defined in the
indenture, as well as AFH, AFE's co-investments in Romanian
portfolios, and the impact of its 30% economic interest in Italy-
based Phoenix Asset Management S.p.A., which we reflect in our
assessment of the group's franchise. We do not directly capture
AnaCap Financial Partners in our GCP, which means our issuer
credit rating on AFE does not factor in our view of the
likelihood of extraordinary support. However, we do factor into
the GCP our expectations for the group's financial policy and
overall management, which are influenced by AnaCap Financial
Partners. We do not perceive any material barriers to cash flows
within the group or any significant issues regarding the
fungibility of capital between the parent company, the debt-
issuing company, or the subsidiaries under the new structure.

"We principally compare AFE with other debt collection companies
that we rate, including Arrow Global Group, Cabot Financial,
Garfunkelux Holdco 2 (the holding company of Lowell and GFKL),
Promontoria MCS, and Intrum Justitia. The long-term issuer credit
ratings on these entities range from 'BB+' to 'B+'.

"Our assessment of AFE's business risk profile primarily reflects
its monoline business model focused on purchasing financial
institutions' debt portfolios and maximizing recoveries
exclusively within the financial service industry in Europe. We
consider this business model to be susceptible to the debt-
portfolio selling behaviors of financial services companies or
aggressive actions by its competitors. Although not a part of our
base-case scenario, this has the potential to lead to volume
declines or heightened market risk through uneconomical pricing
of debt in the industry, for example. We consider AFE's revenue
concentration to be more in line with MCS, and less diversified
than Arrow Global, Garfunkelux, and Intrum. Peers that are more
diversified from a revenue perspective have a greater proportion
of fee income in their operating revenues. We view this source of
income as more stable relative to debt purchasing. For example,
we believe revenues from a long-term servicing contract are
generally more predictable relative to collections from debt
portfolios that are purchased at auction. This is reflective of
AFE's lack of in-house servicing capabilities compared with
peers.

"Our assessment is also constrained by AFE's limited scale
relative to the peer group. The group's 84-month estimated
remaining collections (what it expects to collect from portfolios
already purchased over the next 84 months) is around EUR500
million, which compares with an average of EUR1.1 billion in the
peer group.

"Our view is balanced by recent evidence of AnaCap Financial
Partners' sound origination capabilities built upon its
relationships with financial institutions. We note AnaCap
Financial Partners has a 12-year track record as a financial
services specialist investor. Through its ownership structure, we
consider AFE's unique relationship as a comparative strength, as
it can benefit from the use of AnaCap Financial Partners' larger
balance sheet, data and operations, and client relationships. We
also believe that AFE's financial services portfolios are more
diversified relative to the unsecured consumer finance-focused
peer group. AFE's portfolios have a balanced mix of unsecured and
secured debt of small and midsize enterprises, mortgage debt, and
consumer loans, which could partially reduce the group's future
earnings volatility."

The company is a market leader in Italy, having acquired nine
portfolios in the country comprising 130,000 accounts with a face
value of EUR7.3 billion and 84-month estimated remaining
collections of EUR360 million as of March 2017. Its revenues come
predominantly from Italy (60%), Spain (15%), and Portugal (15%),
with further contributions from Romania and the U.K. Despite the
concentration in Southern Europe, S&P believes that,
geographically, AFE is more diversified than some of its peers
such as Cabot and MCS, and it doesn't expect AFE to materially
change its footprint.

In a significant departure to its rated peers, AFE operates with
a fully outsourced master-servicing model, which is supported by
AnaCap's proprietary IT platform, rather than retaining in-house
collections. Data mining and analytics support both underwriting
new investments as well as ongoing servicing activities. This
model allows it to maintain sound operating efficiency to
optimize collections and operations across asset classes and
geographies, without heavy fixed costs and with lower costs to
collect. However, entirely outsourcing its collections does
increase its counterparty risk with servicing partners. This is
especially true in the case of AFE's 30% economic interest in
Phoenix Asset Management, which services the majority of AFE's
Italian loan portfolios. AFE has board representation at Phoenix,
and therefore has significant influence over the entity. S&P also
understands that AFE frequently audits its external servicers,
and where necessary only outsources to regulated entities. This
limits the extent of counterparty risk, in its view.

As a RAIF, AFE is not subject to direct supervision by the
"Commission de Surveillance du Secteur Financier" of Luxembourg
(CSSF), but it is overseen by a regulated alternative investment
manager, which is itself regulated by the CSSF. The portfolio
manager and the investment adviser are also regulated by the
Guernsey Financial Services Commission and by the Financial
Conduct Authority, respectively.

S&P said, "Our assessment of AFE's financial risk profile
reflects our expectation for leverage and debt-servicing metrics
after the issuance of its EUR325 million senior secured notes.
The group has a super senior revolving credit facility (SSRCF),
which will support its growth ambitions and liquidity profile.

S&P believes that AFE's existing portfolio and organic growth
will allow the company to maintain stable earnings capacity over
the next year. S&P therefore expects these metrics will remain
within the following ranges over the one-year outlook horizon:

-- Net debt to S&P Global Ratings-adjusted EBITDA of 3x-4x;
-- Funds from operations (FFO) to debt of 20%-30%; and
-- Adjusted EBITDA to interest of 4x-5x.

When calculating our weighted-average ratios for AFE, S&P applies
a 50% weight to both year-end 2017 and year-end 2018 projections.

S&P's projections are based on the following assumptions:

-- S&P anticipates an organic increase in the company's earnings
    capacity through a growing back book of debt portfolios,
    reflecting the availability of good market opportunities.

-- S&P expects single-digit revenue growth over its outlook
    horizon, compared with double-digit average revenue growth in
    the peer group.

-- S&P expects no significant rise in capital expenditures or
    working capital in 2017 and 2018.

The combination of our fair business risk profile and significant
financial risk profile results in a 'bb' anchor.

S&P said, "We apply a one-notch negative adjustment to our 'bb'
anchor to arrive at the issuer credit rating. This reflects some
of the risks associated with the recent creation of the entity
and the lack of an operating track record under the proposed
structure. This adds an element of complexity and operational
risk to the group, in our view. The adjustment also reflects the
risk of the group changing its long-term investment philosophy
toward AFE, deciding to act more as a financial sponsor and
dictating an increase in risk appetite for the entity or a
leverage-driven growth strategy. Moreover, we believe the group
could be exposed to regulatory and operational risks beyond what
we capture in our business risk profile assessment if regulation
or laws governing the collections process materially changed in
Italy, where it possesses most of its acquired portfolios.

"The stable outlook on AFE reflects S&P Global Ratings' view that
the company's leverage and debt-service metrics will remain
within the current financial risk profile category over the next
year. This scenario is predicated on our view that the company
will achieve organic growth in total collections, mainly on well-
known geographies and asset types where there remains a large
market opportunity and where it has proprietary data and
expertise in underwriting/pricing and servicing.

"We could lower the ratings if we saw a material increase in the
shareholder's leverage tolerance, a failure in AFE's control
framework, or adverse changes in the Italian regulatory
environment for debt purchasers or in any other jurisdiction
where the company has material exposures. We could also lower the
ratings if we change our view of the group's long-term investment
philosophy toward AFE due to it acting more as a financial
sponsor, dictating an increase in risk appetite or higher
leverage for the entity.

"Although unlikely in the next 12 months, given the new operating
structure, we could raise our ratings on AFE if we see materially
greater diversification in the franchise that supported the
future stability of earnings, for instance, a broader geographic
presence or diversity in its revenue profile to levels similar to
more-diversified peers." S&P could also raise the ratings if it
believed AFE's credit metrics were likely to remain within the
following ranges on a sustainable basis:

-- Gross debt to adjusted EBITDA of 2x-3x;
-- FFO to total debt of 30%-45%; and
-- Adjusted EBITDA coverage of interest expenses of 6x-10x.


BELL POTTINGER: Man Involved in Deal with Guptas Leaves Rentokil
----------------------------------------------------------------
Rhiannon Bury at The Telegraph reports that the scandal
surrounding public relations firm Bell Pottinger has deepened as
the man who introduced the company to the billionaire Gupta
family, Chris Geoghegan, has stepped down from his role at
Rentokil.

Mr. Geoghegan, BAE Systems' former chief operating officer,
reportedly earned a six-figure sum for brokering the
controversial deal between Bell Pottinger and the Guptas, which
ultimately led to the firm's administration last week, The
Telegraph relates.

Cleaning and hygiene firm Rentokil has announced that
Mr. Geoghegan will be stepping down with immediate effect, The
Telegraph states.

As a result, he also steps down as chairman of the firm's
remuneration committee and senior independent director, according
to The Telegraph.  He had been on the board for just over a year,
having been joint chief operating officer at BAE Systems from
2002 to 2007, The Telegraph relays.

The fallout from the revelations resulted in Bell Pottinger being
kicked out of Britain's PR trade association and many of its
high-profile clients, including HSBC and EY, have abandoned it,
The Telegraph discloses.  Chief executive James Henderson
resigned at the start of the month, The Telegraph recounts.

According to The Telegraph, Bell Pottinger is understood to have
made around half of its 100 London-based staff redundant after
placing its UK business into administration last week.  BDO is
handling the administration, The Telegraph notes.


CYBG PLC: Moody's Puts Ba1 Rating on Review for Upgrade
-------------------------------------------------------
Moody's Investors Service has placed on review for upgrade the
Baa2 long-term deposit ratings of Clydesdale Bank plc
(Clydesdale), its baa3 standalone baseline credit assessment
(BCA) and its baa3 adjusted BCA. Moody's also placed on review
for upgrade the bank's A3(cr) long-term Counterparty Risk
Assessment (CR Assessment) and the Ba1 rating of the subordinated
debt of holding company CYBG plc.

RATINGS RATIONALE

RATIONALE FOR THE BCA

The review of Clydesdale's BCA will focus on progress in the
execution of the bank's strategic plan as well as the extent to
which enhancements in management, risk and control frameworks and
processes have been embedded. In recent years, Clydesdale has
shifted its business to retail and SME clients and away from
historically problematic areas such as commercial real estate
(CRE) and other corporate lending. While Moody's views this
change in strategy positively, the rating agency considers that
the re-establishment of the franchise and restoration of an
adequate level of profitability and efficiency relative to peers
will be challenging. Ongoing charges relating to legacy conduct
issues have highlighted historical failures of risk management
and governance, which are currently reflected in a one-notch
negative adjustment to the BCA. While Moody's believes that
conduct issues are largely a matter of the past and Clydesdale
has strengthened its management and risk and compliance
frameworks, the review will determine whether the required
cultural shift and embedding of enhanced control processes has
been achieved.

Moody's will also review whether the bank remains on track to
deliver improved profitability. The bank managed to lower funding
costs in the nine months to June 2017, leading to a stable net
interest margin year-on year despite the low interest rate
environment and competitive pricing in the UK lending market.
Moody's expects a further reduction in funding costs due to
drawing on the Bank of England's Term Funding Scheme (TFS) and
the replacement of expensive deposits at lower rates, while the
run-off of a GBP2.2bn (as at March 31, 2017) tracker mortgage
portfolio will also support revenues. The bank's net returns
nonetheless continue to be reduced by high conduct charges and
restructuring expenses. As part of the review Moody's will
therefore assess whether :

1. Clydesdale remains on track to meet their target of reducing
the cost base by more than GBP100mn per annum by 2019, through
restructuring of the cost base and investment in digitalization.
The bank is expected to complete the closure of 30% of its
branches by year-end 2017, while the number of full-time
employees is expected to be further reduced (down 8% between
year-end 2016 and year-end 2015).

2. The undrawn balance of the Conduct Indemnity Package (GBP511
million as of March 31, 2017, out of an initial amount of GBP1.7
billion at year-end 2015), together with the large stock of
unused provisions, will provide sufficient buffer to absorb
future costs in relation to legacy conduct matters.

RATIONALE FOR LONG-TERM RATINGS

Clydesdale is subject to an Operational Resolution Regime through
the UK implementation of the EU Bank Recovery and Resolution
Directive (BRRD). Moody's Advanced LGF analysis currently
indicates that Clydesdale's deposits are likely to face low loss-
given failure, resulting in a Preliminary Rating Assessment (PRA)
of baa2, one notch above the BCA. Moody's will monitor
Clydesdale's plan to meet the Minimum Requirement for Own Funds
and Eligible Liabilities (MREL) requirements through issuances of
senior unsecured securities from its holding company CYBG, and
will measure the ensuing impact on the volume of protection
afforded to junior depositors. Moody's will also gauge the extent
to which Clydesdale's intention to adopt the Internal Ratings
Based (IRB) approach for the calculation of credit risk capital
as well as the likely trend in its Pillar 2A capital requirements
may reduce the bank's future MREL requirements and therefore its
likely future issuance.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Clydesdale's BCA could be upgraded if the bank is able to
demonstrate that the design and embedding of its risk and
compliance management frameworks is sufficiently robust as
evidenced by maintenance of more conservative underwriting
standards and establishing a solid track record in relation to
conduct of business. Moreover, a sustainable improvement in
profitability and efficiency could likewise lead to an upgrade of
the bank's standalone assessment. The long-term deposit rating
could also be upgraded if the bank or its holding company were to
issue a significant amount of debt, reducing its loss-given-
failure.

The bank's BCA could be downgraded due to an unexpected
deterioration in asset quality, further legacy conduct costs
beyond what is already factored into the current rating or
weaker-than-expected profitability. A downward movement in
Clydesdale's BCA would likely result in a downgrade of all
ratings.

The deposit and commercial paper ratings could also be downgraded
due to a change in the liability structure, most likely a
reduction in the volume of bail-in-able wholesale deposits which
would increase their loss-given-failure.

LIST OF AFFECTED RATINGS

On Review for Upgrade:

Issuer: Clydesdale Bank plc

-- LT Bank Deposits, currently Baa2, Outlook Changed To Rating
    Under Review From Stable

-- ST Bank Deposits, currently P-2

-- Adjusted Baseline Credit Assessment, currently baa3

-- Baseline Credit Assessment, currently baa3

-- LT Counterparty Risk Assessment, currently A3(cr)

-- ST Counterparty Risk Assessment, currently P-2(cr)

Outlook Actions:

-- Outlook, Changed To Rating Under Review From Stable

CYBG PLC

-- Subordinate, currently Ba1

Outlook Actions:

-- Outlook, Changed To Rating Under Review From Stable

PRINCIPAL METHODOLOGY

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


INVESTEC FINANCE: Moody's Affirms (P)Ba1 Jr. Sub. MTN Prog Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the long-
term deposit ratings (A2) of Investec Bank plc (IBP) and the
long-term senior unsecured and issuer ratings (Baa1) of Investec
plc to positive from stable. Moody's also affirmed all ratings
for IBP, Investec plc and the backed ratings of Investec Finance
plc. In addition, the baseline credit assessment (BCA) of IBP was
affirmed at baa2 and the long-term and short-term counterparty
risk assessment was affirmed at A2(cr)/P-1(cr) respectively.

RATINGS RATIONALE

The change in outlook to positive is driven by Moody's
expectations for further improvement in IBP's credit
fundamentals, notably its asset risk, a trend which continues
following Moody's earlier upgrade of the banks BCA in February
2016. The bank continues to run down legacy positions, with
GBP476 million outstanding as at March 31, 2017, compared with
GBP2.6 billion as at March 31, 2013. This significant run-off has
reduced tail risks and likely future impairments, which could
have negatively impacted profitability going forward. The
Prudential Regulatory Authority's setting of IBP's Pillar 2A
incremental capital requirement at a level lower than peers
reflects Investec's improving risk profile. IBP's post crisis
lending has evidenced much lower risk levels which underpin
Moody's positive outlook, albeit with recognition that the loan
book could face pressure from a slowdown in growth of the UK
economy. A continuation of this improving trend over the outlook
period despite these headwinds would be a key element to
realizing a higher rating.

Capital has remained a strength of Investec. IBP reported a CET1
ratio of 12.2% as at March 31, 2017, under the standardized
approach for the calculation of risk-weighted assets. IBP also
maintained a leverage ratio of 8%, as at the same date which
compares favorably with peers. Maintenance of strong solvency
metrics will be a key element in supporting an upgrade in IBP's
ratings.

As part of rating action, Moody's has removed a negative
adjustment for opacity and complexity. This change reflects the
simplified structure of the Investec business, following the
sales of its businesses in Australia, Kensington, its
intermediated mortgage businesses in the UK and Ireland, as well
as certain other mortgage assets. The bank has also reduced
market risk as evidenced by its average 95% one-day value at risk
(VaR) measures falling to GBP586k in the year to March 2017 from
GBP1.6 million in 2010. While lower VaR evidences a lower risk
profile of the firm's capital markets business, this is validated
by improvements in other risk measures and the relative
contribution to earnings where customer flow trading income
represents 13% of IBP's total operating income. Increased
earnings from IBP's wealth business further underpins Moody's
views of IBP's improved quality of earnings.

The positive outlook reflects Moody's view that these
improvements will continue and lead to lower asset risk and more
stable levels of profitability, which if sustained could lead to
a rating upgrade.

WHAT COULD CHANGE THE RATING UP / DOWN - IBP

An upgrade to IBP's BCA is likely to be driven by further
improvements to asset risk, with the legacy book being further
rundown and/or sold, reducing the volatility of profitability
through impairments.

Given that IBP's ratings have a positive outlook, a downgrade is
unlikely, but could occur if impairments significantly increased
through new lending or there was a deviation from IBP's current
strategy of reducing risk.

WHAT COULD CHANGE THE RATING UP / DOWN -- Investec plc

An upgrade of the issuer rating of Investec plc could also
materialise from an upgrade in the ratings of IBP, its main
operating subsidiary. Additionally, an upgrade could be driven by
a significant increase in operating performance at Investec Asset
Management (IAM).

Given that IBP's ratings have a positive outlook, a downgrade is
unlikely. However, a downgrade could occur if there was a
material reduction in the ownership of IAM or deterioration in
the performance of IAM.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Investec Bank plc

-- LT Bank Deposits, Affirmed A2, Outlook Changed To Positive
    From Stable

-- ST Bank Deposits, Affirmed P-1

-- Senior Unsecured MTN Program, Affirmed (P)A2

-- Subordinate, Affirmed Baa3

-- Subordinate MTN Program, Affirmed (P)Baa3

-- Other Short Term, Affirmed (P)P-1

-- ST Deposit Note/CD Program, Affirmed P-1

-- Commercial Paper, Affirmed P-1

-- Adjusted Baseline Credit Assessment, Affirmed baa2

-- Baseline Credit Assessment, Affirmed baa2

-- LT Counterparty Risk Assessment, Affirmed A2(cr)

-- ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Investec Finance plc

-- BACKED Senior Unsecured MTN Program, Affirmed (P)A2

-- BACKED Subordinate MTN Program, Affirmed (P)Baa3

-- BACKED Junior Subordinate MTN Program, Affirmed (P)Ba1

-- BACKED Other Short Term, Affirmed (P)P-1

-- BACKED Commercial Paper, Affirmed P-1

Outlook Actions:

-- Outlook, Changed To Positive From Stable

Issuer: Investec plc

-- LT Issuer Rating, Affirmed Baa1, Outlook Changed To Positive
    From Stable

-- ST Issuer Rating, Affirmed P-2

-- Senior Unsecured Regular Bond/Debenture, Affirmed Baa1,
    Outlook Changed To Positive From Stable

-- Senior Unsecured MTN Program, Affirmed (P)Baa1

Outlook Actions:

-- Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

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



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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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
or balance thereof are US$25 each.  For subscription information,
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