TCREUR_Public/170921.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

         Thursday, September 21, 2017, Vol. 18, No. 188


                            Headlines


C R O A T I A

AGROKOR DD: First Settlement Proposal Expected in November
CROATIA: New Law Prompts Surge in Company Insolvency Figures


G E R M A N Y

AIR BERLIN: Tour Operator Applies for Bankruptcy Against Niki
AIR BERLIN: KBRA Comments on Insolvency Filing


I R E L A N D

SIBUR SECURITIES: Moody's Puts Ba1 Rating to Proposed USD Notes
SIBUR SECURITIES: Fitch Rates Upcoming Guaranteed Notes BB+(EXP)
WEATHERFORD INT'L: BlackRock Has 4.9% Stake as of July 31


L U X E M B O U R G

OXEA SARL.: Moody's Affirms B3 CFR, Revises Outlook to Positive
PUMA INT'L: Moody's Rates Proposed Sr. Unsec. Notes Issuance Ba2
PUMA INTERNATIONAL: Fitch Rates New US$300MM Sr. Notes 'BB(EXP)'
SUNRISE COMMUNICATIONS: Fitch Affirms BB+ LT IDR, Outlook Stable


N E T H E R L A N D S

PETROBRAS GLOBAL: S&P Rates Proposed $2BB Sr. Unsec. Notes 'BB-'


P O R T U G A L

BANCO SANTANDER: Moody's Affirms Ba1 Sr. Unsecured Debt Ratings


R O M A N I A

* ROMANIA: Business Insolvencies Drop to 8,053 in 2016


R U S S I A

B&N BANK: Russia's Central Bank Agrees to Bail-Out Lender


U K R A I N E

MHP SE: Fitch Raises IDR to 'B' on Improved Liquidity Profile


U N I T E D   K I N G D O M

CO-OPERATIVE BANK: CFO Steps Down After GBP700MM Restructuring
ELITE INSURANCE: Fitch Lowers IFS Rating to BB and Then Withdraws
HERO ACQUISITIONS: Moody's Lowers CFR to B2, Outlook Negative
INTEROUTE FINCO: Moody's Puts B1 Rating to EUR640MM Term Loan B
MILLER HOMES: Fitch Assigns 'B+(EXP)' LT Issuer Default Rating

QUOTIENT LIMITED: Inks Change of Control Pact With Top Management


U Z B E K I S T A N

VEON LTD: Uzbek Currency Devaluation Neutral on Fitch BB+ Rating


                            *********



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C R O A T I A
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AGROKOR DD: First Settlement Proposal Expected in November
----------------------------------------------------------
Igor Ilic at Reuters reports that the first draft of a settlement
proposal with creditors for indebted Croatian food company
Agrokor is expected in November.

"I expect the first proposal for the final settlement to be ready
in November.  By that time we should have the permanent council
of creditors in place and ready to discuss the settlement,"
Reuters quotes a source familiar with the company's restructuring
process as saying on Sept. 20.

Agrokor, the Balkan region's biggest private employer, was put
under state management in April after building up debts of at
least HRK40.4 billion (US$6.5 billion) by the end of March,
Reuters recounts.

Within weeks, Agrokor is expected to make public the final amount
of overall claims against the company and consolidated 2016 group
results for which the company has hired PricewaterhouseCoopers to
carry out an audit, Reuters discloses.

A final settlement can be reached with the support of creditors
holding at least 66% of claims, Reuters states.

Last week, Agrokor said legal action had been initiated in
several countries in the Balkans and in the United Kingdom, most
notably by Russia's Sberbank, aimed at securing repayment of
debts from Agrokor's property abroad, Reuters relays.

The crisis management team at Agrokor is expected to remain in
place for up to 15 months during which time the firm is expected
to reach the settlement with creditors, Reuters notes.

Croatia has selected New York-based AlixPartners to advise on
Agrokor restructuring, Reuters states.

"I believe that 15 months will be enough time to reach the final
settlement and complete the (restructuring) process," the source,
as cited by Reuters, said.

The firm racked up debts during a rapid expansion, notably in
Croatia, Slovenia, Bosnia and Serbia, Reuters recounts.

                       About Agrokor DD

Founded in 1976 and based in Zagreb, Crotia, Agrokor DD is the
biggest food producer and retailer in the Balkans, employing
almost 60,000 people across the region with annual revenue of
some HRK50 billion (US$7 billion).

On April 10, 2017, the Zagreb Commercial Court allowed the
initiation of the procedure for extraordinary administration over
Agrokor and some of its affiliated or subsidiary companies.  This
comes on the heels of an April 7, 2017 proposal submitted by the
management board of Agrokor Group for the administration
proceedings for the Company pursuant to the Law of Extraordinary
Administration for Companies with Systemic Importance for the
Republic of Croatia.

Mr. Ante Ramljak was simultaneously appointed extraordinary
commissioner/trustee for Agrokor on April 10.

In May 2017, Agrokor dd, in close cooperation with its advisors,
established that as of March 31, 2017, it had total liabilities
of HRK40.409 billion.  The company racked up debts during a rapid
expansion, notably in Croatia, Slovenia, Bosnia and Serbia, a
Reuters report noted.

On June 2, 2017, Moody's Investors Service downgraded Agrokor
D.D.'s corporate family rating (CFR) to Ca from Caa2 and the
probability of default rating (PDR) to D-PD from Ca-PD. The
outlook on the company's ratings remains negative.  Moody's also
downgraded the senior unsecured rating assigned to the notes
issued by Agrokor due in 2019 and 2020 to C from Caa2.  The
rating actions reflect Agrokor's decision not to pay the coupon
scheduled on May 1, 2017 on its EUR300 million notes due May 2019
at the end of the 30-day grace period. It also factors in Moody's
understanding that the company is not paying interest on any of
the debt in place prior to Agrokor's decision in April 2017 to
file for restructuring under Croatia's law for the Extraordinary
Administration for Companies with Systemic Importance.

On June 8, 2017, Agrokor's Agrarian Administration signed an
agreement on a financial arrangement agreement worth EUR480
million, including EUR80 million of loans granted to Agrokor by
domestic banks in April. In addition to this amount, additional
buffers are also provided with additional EUR50 million of
potential refinancing credit. The total loan arrangement amounts
to EUR1,060 million, of which a new debt totaling EUR530 million
and the remainder is intended to refinance old debt.


CROATIA: New Law Prompts Surge in Company Insolvency Figures
------------------------------------------------------------
SeeNews reports that French credit insurance agency Coface said
in Croatia, there was a significant increase in insolvency
proceedings recorded last year.

According to SeeNews, a new bankruptcy law entered into force in
September 2015 strongly affected the 2016 insolvency figures.

Under the new law, the National Financial Agency (FINA) is
obliged to start bankruptcy proceedings for any company whose
accounts have been blocked for more than 120 days, SeeNews
discloses.  Since the entry into force of the new law, all the
companies with blocked accounts automatically become bankrupt,
SeeNews states.

As a result of "cleaning" registers of these dormant companies,
the level of bankruptcies in Croatia surged, SeeNews notes.



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G E R M A N Y
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AIR BERLIN: Tour Operator Applies for Bankruptcy Against Niki
-------------------------------------------------------------
Kirsti Knolle at Reuters reports that local daily Kurier said on
Sept. 20 an Austrian tour operator, which is owed money by the
low-cost airline Niki, has applied for bankruptcy proceedings to
be initiated against the Air Berlin unit at a regional court.

According to Reuters, the paper said the step does not
necessarily mean Niki has to close down its business, but the
airline would need a new license to continue flying.

A committee of Air Berlin's creditors is to discuss bids today,
Sept. 21, with a final decision on who to sell to on Sept. 25,
Reuters discloses.

The paper did not say which tour operator submitted the
application, Reuters notes.

                        About Air Berlin

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

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

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

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

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


AIR BERLIN: KBRA Comments on Insolvency Filing
----------------------------------------------
On August 15, 2017, Air Berlin, Germany's second-largest airline,
filed to commence insolvency proceedings under self-
administration at the local District Court (Amtsgericht) of
Berlin-Charlottenburg.  The filing comes after one of Air
Berlin's key shareholders, Etihad Airways, indicated that it
would no longer provide Air Berlin with financial support.  Kroll
Bond Rating Agency (KBRA) understands that the insolvency filing
is the closest equivalent under German law to filing for U.S.
chapter 11 bankruptcy protection.  It is unclear whether the
airline will be restructured or whether its assets will be sold
to several interested third parties.

Etihad Airways originally took a minority stake in several
airlines, including Air Berlin and Alitalia, to enhance its
passenger network and drive growth; however, Air Berlin is the
second major airline in less than 5 months from which Etihad has
withdrawn financial support.  Prior to the insolvency filing,
Etihad had repeatedly provided liquidity to Air Berlin to allow
it to continue its operations.  Similar to Alitalia, Air Berlin
struggled with high costs and increased competition on routes
operated by U.K.-based carriers.  Air Berlin tried,
unsuccessfully, to cut unprofitable operations and grow its
trans-Atlantic routes to North America.  Air Berlin's lack of
profitability contributed to Etihad's reported $1.87 billion net
loss for FYE March 2017 and the ultimate withdrawal of Etihad's
financial support from the airline.  Air Berlin received a
EUR150 million loan from the German government to continue
operating flights in the short term.

Over the past year, KBRA has closely monitored the developments
relating to Air Berlin through discussions with aircraft
lessors/servicers and industry participants. Several KBRA-rated
aircraft ABS transactions have exposure to Air Berlin.

                 About Kroll Bond Rating Agency

KBRA -- http://www.kbra.com-- is registered with the U.S.
Securities and Exchange Commission as a Nationally Recognized
Statistical Rating Organization (NRSRO).  In addition, KBRA is
recognized by the National Association of Insurance Commissioners
(NAIC) as a Credit Rating Provider (CRP).

                        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
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SIBUR SECURITIES: Moody's Puts Ba1 Rating to Proposed USD Notes
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating, with a loss
given default assessment of LGD4, to the proposed USD notes to be
issued by Sibur Securities DAC.

Sibur Securities DAC is a company incorporated as a designated
activity company under the laws of Ireland and is a wholly owned
subsidiary of Sibur Holding, PJSC (Sibur, Ba1 stable).

The notes will be irrevocably and unconditionally guaranteed by
Sibur.

The outlook is stable.

RATINGS RATIONALE

The notes' rating of Ba1 is at the same level as Sibur's
corporate family rating (CFR), which reflects Moody's assumption
that the notes will rank pari passu with the other unsecured and
unsubordinated obligations of the Sibur group.

These obligations include the Ba1-rated outstanding $616 million
guaranteed notes of Sibur Securities DAC due January 31, 2018.

The new notes' rating considers Sibur's established debt policy,
with Sibur guaranteeing the debt of its major subsidiaries and
keeping the group's debt portfolio free of secured debt.

In addition, the rating factors in Moody's assumption that Sibur
will remain the group's profit center and predominant contributor
to the group's EBITDA and cash flow generation.

Moody's expects that the proceeds of the issuance will be mostly
used for the repayment of Sibur's outstanding notes due 2018,
with the rest directed for general corporate purposes.

As a result, the placement of the new notes will not materially
increase Sibur's leverage.

Sibur's Ba1 CFR incorporates some headroom under its financial
metrics, supported by (1) Sibur's export potential and position
as a leading petrochemicals business in Russia; (2) long-term
contractual access to attractively priced feedstock, which
translates into low costs and secures high margins through the
cycle; the weak rouble leverages the low costs; (3) access to
long-term low-cost debt funding for Sibur's on-going, large-scale
ZapSibNeftekhim project; (4) Sibur's leverage of 2.2x adjusted
debt/EBITDA in mid-2017; and (5) Sibur's commitment to a
conservative financial policy.

The ratings are constrained by Sibur's exposure to Russia's
macroeconomic environment and are at the same level as Russia's
sovereign rating and the foreign-currency bond country ceiling of
Ba1.

Despite its sizable export activities -- which constitute 50% of
revenue -- Sibur remains, as mentioned, exposed to Russia's
economic environment, given that all the company's production
facilities are located within Russia.

In addition, Sibur's ratings factor in the company's
susceptibility to the risks inherent to petrochemicals industry,
heightened by the company's moderate size compared to that of its
global peers; and the risks associated with its ZapSibNeftekhim
project.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on Sibur's ratings factors in (1) the stable
outlook on Russia's sovereign rating and the positioning of the
country's sovereign ceiling; and (2) Sibur's solid intrinsic
credit quality.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Moody's could consider upgrading Sibur's ratings if Moody's were
to upgrade Russia's sovereign rating and/or raise the foreign-
currency bond country ceiling, provided that there is no material
deterioration in operating conditions or company-specific
factors, in particular, no threat to Sibur's financial profile
from the ZapSibNeftekhim project.

The ratings are likely to be downgraded if (1) there is a
downgrade of Russia's sovereign rating and a lowering of the
foreign-currency bond country ceiling; (2) Sibur fails to
maintain adjusted debt/EBITDA below 3x and adjusted RCF/debt
above 15% on a sustainable basis; and/or (3) the company's
liquidity profile deteriorates.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global Chemical
Industry Rating Methodology published in December 2013. Please
see the Rating Methodologies page on www.moodys.com for a copy of
this methodology.

Sibur Holding, PJSC is a Russian vertically integrated gas
processing and petrochemicals company. Mr. Leonid Mikhelson is
the major shareholder with 48.5% of the shares, followed by Mr.
Gennady Timchenko (17.0%). China Petroleum and Chemical
Corporation (Sinopec, A1 stable) and China's Silk Road Fund each
holds 10% in Sibur. The company's current and former management
holds the remaining 14.5%.

In the 12 months to June 30 2017, Sibur generated revenue and
adjusted EBIT of $7.0 billion and $1.9 billion, respectively.


SIBUR SECURITIES: Fitch Rates Upcoming Guaranteed Notes BB+(EXP)
----------------------------------------------------------------
Fitch Ratings has assigned SIBUR Securities Designated Activity
Company's upcoming US dollar-denominated guaranteed notes an
expected senior unsecured rating of 'BB+(EXP)'. The final rating
is contingent upon the receipt of final documentation materially
conforming to information already received.

The prospective notes will be used primarily for the refinancing
of SIBUR Securities DAC's outstanding USD616 million notes due in
January 2018 through the tender offer. Both issues are structured
in the form of a loan from SIBUR Securities DAC, an Ireland-based
special purpose financing vehicle, to the borrower PJSC SIBUR
Holding (BB+/Negative), pursuant to the terms of a loan
agreement. Issues are expected to have identical major terms and
conditions including ranking pari passu with current and future
unsecured and unsubordinated group's debt, incurrence leverage
covenant and events of default.

KEY RATING DRIVERS

1H17 Results Met Expectations: SIBUR's 1H17 performance was
broadly in line with Fitch's forecast for 2017, including 8%
revenue growth (Fitch expects 8% for 2017) and 12% adjusted
EBITDA growth (Fitch: 11% for 2017). Unusually low capex in 1H17
of RUB49 billion translated into higher than expected free cash
flow (FCF) and lower than expected leverage, but this is unlikely
to be repeated in 2H17. SIBUR's main energy and chemical products
showed positive US dollar price dynamics in 1H17 compared with
average 2016 prices, driven by rebound in oil prices, but were
broadly in line with our projections. Consequently, our
expectations of SIBUR's major metrics for 2017 and 2018 are
largely the same.

Leverage Pressure 2017-2019: SIBUR's 'BB+' IDR with Negative
Outlook reflects Fitch's expectations of temporary leverage
pressure during 2017-2019, driven by investments in the multi-
billion-dollar ZapSibNefteKhim petrochemical project (ZapSib).
Fitch projects that funds from operations (FFO) adjusted net
leverage will peak at 3x in 2018 before reverting close to its 2x
rating guideline by 2020. Fitch believes that once completed at
the end of 2019, ZapSib will materially enhance SIBUR's
operational profile.

Leveraging on Transformational Project: SIBUR's USD9 billion
ZapSib project will add 1.5 million tonnes (mt) of polyethylene
capacity and 0.5mt of polypropylene capacity. The project will
materially enhance SIBUR's operational profile as its polyolefin
capacity will triple from its current 1mt and the share of
internally processed liquefied petroleum gas will almost double.
ZapSib will boost SIBUR's exposure to relatively price-resilient
polyolefins to 35% from 19% of sales in 2016 while reducing its
exposure to more volatile, often oil-linked, energy products to
around 30% from 41%.

ZapSib accounts for 80% of 2017-2020 planned capex, with all
long-term debt financing already obtained from export credit
agencies and Russia's state-owned funds, and falling due after
the project is completed at the end of 2019. The propensity to
delay capex diminishes as the project progresses and the risk of
market-driven leverage shocks increases. However, this is
mitigated by declining capex overrun or timing risk and the
improving visibility of SIBUR's post-2018 deleveraging path back
towards 2x FFO adjusted net leverage.

Leverage Peaks in 2018: We expect SIBUR's revenues to grow on
average by single digits over the next four years due to gradual
oil recovery, despite a stronger rouble and broadly flat product
mix and volumes. We project rising oil prices to be offset by
rouble appreciation and local inflation, resulting in medium-term
EBITDAR margins of around 36%, the level achieved in 2016. We
expect aggressive ZapSib-driven capex/sales at above 30% to drive
a double-digit negative FCF margin and leveraging in 2017-2018
followed by deleveraging, assuming SIBUR does not undertake
significant projects driving capex intensity above 20% during
2019-2020.

Oil and FX Exposure Moderate: Fitch estimates that stronger oil
prices coupled with a stronger rouble would have a roughly
neutral effect on SIBUR's leverage. Prices for its products and
its operating costs have varying degrees of correlation with oil
prices and the rouble, but an increase in oil prices and the
rouble exchange rate would cumulatively lead to lower rouble-
based EBITDA, according to our projections. This reduction will
be offset by decreasing capex, dividends and net debt, resulting
in a limited impact on EBITDA-based leverage. A potential rise in
oil prices would tend to drive leverage higher as SIBUR moves
towards polymers by 2020-2021.

No Visible Subordination Risk: SIBUR's USD616 million notes due
2018 and RUB30 billion domestic bonds do not face subordination
issues arising from the ZapSib financing. Debt at PAO SIBUR
Holding and at the ZapSib subsidiary raised from Russia's
National Welfare Fund and Russian Direct Investment Fund is not
contractually senior to the bonds.

The structural seniority of ZapSib debt will only materialise
once the subsidiary becomes cash-generative after 2020. However,
we do not expect total debt at ZapSib to exceed RUB250 billion,
well within Fitch's 2x-2.5x prior-ranking debt to group EBITDA
guidance in 2017-2021, resulting in no subordination risk for
bondholders.

Corporate Governance Discount: SIBUR's ratings are constrained by
higher-than-average systemic risks associated with the Russian
business and jurisdictional environment. Fitch assesses SIBUR's
credit profile excluding these risks as in the 'BBB' category,
which reflects its leading market and cost positions in the
petrochemical sector, diversified portfolio and proven access to
competitively priced feedstock.

DERIVATION SUMMARY

SIBUR has a stronger business profile relative to its Russian
peer Kazanorgsintez (B/Positive) and North American petrochemical
peers Westlake Chemical Corporation (BBB/Stable), Methanex Corp.
(BBB-/Stable) and NOVA Chemicals Corporation (BBB-/Negative) with
larger scale, more diverse product mix, domestic market
leadership and low feedstock cost position underpinning high
margins. However, SIBUR lags its larger-scale international peers
including US diversified chemical player Dow Chemical (BBB/RWP)
and Middle East diversified low-cost peer SABIC (A+/Stable),
which have a more diverse product and geographical mix.

SIBUR's leverage is temporarily weak against its unconstrained
rating level ('BBB' excluding two-notch corporate governance
discount discussed below) as the company is in the midst of its
large-scale investment programme, which is expected to enhance
its business profile once it completes by 2020 and leverage
normalises back to 2.0x-2.5x.

No Parent/Subsidiary Linkage or Country Ceiling are applicable to
the ratings. We apply a two-notch corporate governance discount
to SIBUR's rating, as for most Russian corporates, incorporating
the higher-than-average political, business and regulatory risks
in Russia where the company operates.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for PJSC SIBUR
Holding include:
- energy products (excluding natural gas) continuing to
   generally follow single-digit oil price growth dynamics;
- polyolefins to grow in low single digits until 2020;
- capex/sales peaking at 35%-40% in 2017-2018, leading to
   double-digit negative FCF until 2018;
- RUB22 billion cash proceeds and RUB2 billion EBITDA reduction
   following the Uralorgsintez subsidiary disposal in 2Q17;
- dividend pay-out of 25% of net income.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Progress towards the completion of ZapSib combined with
   expectations of FFO adjusted net leverage trending towards 2x
   could cause an Outlook revision to Stable
- Sustained positive FCF leading to FFO net adjusted leverage at
   or below 1.5x through the cycle could lead to an upgrade

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Material deterioration in the company's cost position or in
   access to low-cost associated petroleum gas
- Aggressive investments leading to inability to keep FFO-
   adjusted net leverage below 3x in 2017-2019 and towards 2x by
   2020

LIQUIDITY

Liquidity Adequate, Tightening in 2018
SIBUR's cash balance of RUB47 billion at end-July 2017 covered
its RUB2 billion debt due in the rest of 2017 and RUB41 billion
due in 2018. Notably, most of 2018 debt repayments are largely
represented by the USD616 million (approximately RUB37 billion)
notes that SIBUR plans to refinance with the prospective notes.

Fitch expects SIBUR to succeed to refinance its outstanding notes
due 2018 leaving RUB6 billion debt until the end-2018. SIBUR's
cash cushion and its RUB100 billion long-term undrawn committed
credit lines will cover its negative RUB120 billion Fitch-
projected 2H17-2018 FCF while SIBUR's strong and enduring
relationships with the largest state banks remain an additional
positive factor for liquidity.


WEATHERFORD INT'L: BlackRock Has 4.9% Stake as of July 31
---------------------------------------------------------
BlackRock, Inc. reported in a regulatory filing with the
Securities and Exchange Commission that as of July 31, 2017, it
beneficially owns 48,203,831 shares of common stock of
Weatherford International PLC, which constitutes 4.9 percent of
the shares outstanding.  A full-text copy of the Schedule 13G/A
is available for free at https://is.gd/bUZB2u

                       About Weatherford

Ireland-based Weatherford International plc (NYSE: WFT) --
http://www.weatherford.com/-- is a multinational oilfield
service company providing innovative solutions, technology and
services to the oil and gas industry.  The Company operates in
over 90 countries and has a network of approximately 880
locations, including manufacturing, service, research and
development, and training facilities and employs approximately
29,500 people.

Weatherford reported a net loss attributable to the Company of
$3.39 billion on $5.74 billion of total revenues in 2016,
compared to a net loss attributable to the Company of $1.98
billion on $9.43 billion of total revenues in 2015.

As of June 30, 2017, Weatherford had $12.05 billion in total
assets, $10.52 billion in total liabilities and $1.52 billion in
total shareholders' equity.

                         *     *     *

In November 2017, Fitch Ratings downgraded the ratings for
Weatherford and its subsidiaries, including the companies' Long-
Term Issuer Default Ratings to 'CCC' from 'B+'.  The downgrade
reflects the potential further tightening of the company's
specified leverage and L/C ratio covenant following the fourth
quarter (4Q) 2016 calculation, and with the expected 0.5x step-
down in 1Q 2017 per the Credit Agreement.


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


OXEA SARL.: Moody's Affirms B3 CFR, Revises Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating (CFR) of Luxembourg based oxo chemical producer Oxea
S.ar.l. ("Oxea") and the probability of default rating at B3-PD.
Moody's also affirmed the B3 rating on the first-lien senior
secured credit facility due 2020 borrowed by Oxea's subsidiary
Oxea Finance & Cy S.C.A. ("OF").

Concurrently, and following the company's announcement of the
refinancing of the existing first lien senior secured credit
facility, Moody's assigned a provisional (P)B3 rating to the
proposed new Euro equivalent 900 million senior secured term
facilities to be borrowed by Oxea subsidiaries Oxea Holding Drei
GmbH and Oxea Corporation. The outlook on all ratings is changed
to positive from negative.

The provisional ratings are assigned pending the completion of
the refinancing transaction. Moody's issues provisional ratings
in advance of the final sale of securities and these ratings
reflect Moody's preliminary credit opinion regarding the
transaction only. Upon a conclusive review of the final
documentation, as well as the final terms of the transaction,
Moody's will endeavour to assign definitive ratings to the new
contemplated notes. A definitive rating may differ from a
provisional rating.

"The change of Oxea's outlook to positive from negative reflects
the company's better than expected operating performance since
the start of the year and, moreover, Moody's views that the
company should be able to maintain its credit metrics at current
levels while undergoing the planned turnaround of the German
Oberhausen plant next year, and to remain free cash flow positive
over the next two years, despite the continued investment in Bay
City," says Hubert Allemani a Moody's Vice President -- Senior
Analyst and lead analyst for Oxea. "In addition, the company's
liquidity profile will improve once the refinancing is completed,
supported by higher amount of revolving credit facilities of
EUR135 million compared to EUR110 million currently and extension
of maturities".

RATINGS RATIONALE

Moody's expects that Oxea's operational performance will remain
solid in the second half of the year, as evidenced by the strong
current trading and Moody's expectations that market conditions
should remain favorable to the end of the year. This should
result in a deleveraging to 5.2x from 7.3x at the end of 2016.
Next year should see the company perform a turnaround of its
major plant in Germany which Moody's expects will have a limited
negative impact on earnings because of lower volumes but expects
this to normalise in 2019. From 2019 the company should also
benefit from the additional propanol capacity from its Bay City
plant.

The rating continues to be supported by Oxea's (1) leading market
position as a global merchant producer of oxo chemicals with a
track record of maintaining and growing its market share across a
diverse product line; (2) ability to generate solid cash flows
through economic cycles; (3) strengthening of the liquidity
profile post refinancing and new RCF commitment; (4) growth of
the derivatives business, a segment expected to be more stable
than intermediates; and (5) supportive shareholder. Moody's views
Oman Oil Company (OOC, unrated), as a strategic owner as
evidenced by the strategy to build up capacity in Oman and by the
injection of USD325 million in cash in 2015 to repay in full the
second lien debt.

However, the CFR is constrained by Oxea's (1) participation in
the oversupplied intermediates oxo-market which remains
challenging, albeit recovering as capacity additions in Asia over
the past few years are being gradually absorbed; (2) competitive
pricing pressure, particularly on the intermediates oxo
molecules, which has seen high price volatility in the recent
year; (3) exposure to cyclical industries and highly variable raw
material costs, especially the price of propylene and 4)
relatively small size.

LIQUIDITY

Moody's views Oxea's liquidity as good supported by high cash on
balance sheet of EUR114.8 million at the end of June and positive
free cash flow generation expected in the region of EUR30 million
this year. The company's liquidity is further supported by the
current EUR110 million revolving credit facility (RCF), undrawn
with the exception of EUR21.2 million long-term guarantees.

As part of the proposed refinancing of the existing first lien
term loan, the company is also negotiating a new RCF line of
EUR135 million that will come in substitution to the current one,
which will further strengthen the liquidity profile and extend
its maturity to 2023 from 2018. Additionally, Oxea has access to
dollar and euro currency receivables securitisation facilities
maturing in 2020 to support its working capital swings.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook is underpinned by Moody's expectation that
the company will be able to display a resilient financial
performance, stable credit metrics from the current base, and
deleveraging over the next 24 months.

WHAT COULD CHANGE THE RATING UP/DOWN

The ratings could be upgraded if Oxea (1) Moody's-adjusted
debt/EBITDA ratio remains consistently below 6x, and (2) sustains
positive free cash flow generation with a free cash flow to debt
(FCF/debt) close to 10%.

Downward ratings pressure could occur if (1) Moody's sees a
material weakening of the company's operational performance; (2)
Oxea's Moody's-adjusted debt/EBITDA ratio would increase to above
7x; (3) Its liquidity profile deteriorates; and (4) the company
is free cash flow negative.

The principal methodology used in these ratings was Global
Chemical Industry Rating Methodology published in December 2013.
Please see the Rating Methodologies page on www.moodys.com for a
copy of this methodology.

Incorporated in Luxembourg, Oxea S.ar.l. (Oxea) is a leading
global producer of oxo intermediates and derivatives with a key
product portfolio of oxo chemical products and well-established
market positions in Europe, North America, Asia-Pacific, and
South America. Oxo chemicals are critical to the production of
other chemicals used in a variety of industries such as
automotive, construction, industrial goods, consumer and retail,
pharmaceuticals, cosmetics, agriculture and packaging. As of
financial year-end December 2016, Oxea reported revenues and
EBITDA of EUR1.08 billion and EUR160 million, respectively and on
a Moody's-adjusted basis.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Oxea Corporation

-- Backed Senior Secured Bank Credit Facility, Assigned (P)B3

Issuer: Oxea Holding Drei GmbH

-- Backed Senior Secured Bank Credit Facility, Assigned (P)B3

Affirmations:

Issuer: OXEA FINANCE & Cy S.C.A.

-- Backed Senior Secured Bank Credit Facility, Affirmed B3

Issuer: Oxea S.ar.l.

-- Corporate Family Rating, Affirmed B3

-- Probability of Default Rating, Affirmed B3-PD

Outlook Actions:

Issuer: Oxea Corporation

-- Outlook, Assigned Positive

Issuer: OXEA FINANCE & Cy S.C.A.

-- Outlook, Changed To Positive From Negative

Issuer: Oxea Holding Drei GmbH

-- Outlook, Assigned Positive

Issuer: Oxea S.ar.l.

-- Outlook, Changed To Positive From Negative


PUMA INT'L: Moody's Rates Proposed Sr. Unsec. Notes Issuance Ba2
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to the
proposed issuance by Puma International Financing S.A. of senior
unsecured notes guaranteed by Puma Energy Holdings Pte Ltd. The
rating outlook is stable. The size and completion of the
transaction are subject to market conditions.

RATINGS RATIONALE

The Ba2 rating assigned to the proposed notes is in line with the
Ba2 rating on the existing notes due 2021 and reflects the shift
of the funding strategy of the group towards HoldCo debt as
evidenced by the reduction in OpCo debt versus HoldCo debt from
75% in Dec 2013 to 13% in June 2017 and reduction of secured debt
versus total debt from 65% in Dec 2013 to 3% in June 2017. This
reduces the amount of priority debt at various operating
subsidiaries of the group, thereby reducing structural
subordination and effectively ranking the bondholders pari passu
with debt at the OpCo level. The proceeds from the proposed bond
issuance will be used to exchange and repay the existing bonds
due 2021, thereby having no impact on leverage, as a result of
this transaction.

The Ba2 corporate family rating (CFR) reflects the positive
characteristics of Puma Energy's business profile, which benefits
from a high level of vertical integration between its midstream
and downstream oil activities, leading market positions in the
various countries in which it operates and significant
diversification in terms of geographies, customer base and end-
industry exposure.

Moody's also views positively the development of Puma's global
sourcing platform, sizeable and strategically located storage
capacity and import terminals as well as extensive retail and
distribution networks, which generate significant economies of
scale and underpin the efficiency of the group's supply chain and
cost base. Puma Energy further benefits from its strong
relationship with Trafigura (unrated), its major shareholder with
a 49.49% stake and also a supplier of approximately two-thirds of
the refined oil products distributed and marketed by Puma Energy,
which underpins Puma's reliability and consistent quality of its
supplies.

Moody's notes the slowdown in Africa resulting in flat sales
volumes in H1 2017 year-on-year. Working capital fluctuations in
the first half of 2017 resulted in cash outflows of $212 million
as a result of ramp-up of new businesses and timing effects on
payables, however, expected to normalise in H2 2017. As a result,
Moody's expects Puma to remain free cash flow (FCF) negative in
2017, however the company should be able to generate positive FCF
in 2018 of around $70 million, assuming the company reduces its
capex in 2017-18 from its historic high levels and makes no major
acquisitions. Moody's adjusted gross debt/EBITDA ratio is
expected to remain at around 4.5x in 2017 and between 4.0x-4.5x
in 2018, assuming reduced capex and acquisition spending. Moody's
considers the liquidity profile of Puma Energy as adequate.

The Ba2 rating also reflects Puma's dominant presence in emerging
markets mainly in Africa, Latin America and Asia-Pacific, which
tend to display higher country and business risks. However, the
company should also benefit from the favourable demographics and
rising living standards in these regions which drive above-
average growth in demand for refined oil products. The rating
reflects the company's fuel distribution activities inherently
exposed to the price volatility of refined oil products, which
impacts its cost of sales and an acquisition-led growth strategy
that increases execution and leverage risk. However, Puma Energy
largely operates in fully or partly regulated markets with margin
protection and in free markets where it hedges its price
exposure, which supports the resilience and stability of
operating profits and cash flow generation. In addition, the
group regularly upstreams cash flows from local operating
subsidiaries via collection of trade receivables related to oil
product and equipment supplies, rather than relying solely on
dividends.

Structural Considerations

The Ba2 rating on the proposed senior unsecured notes and on the
existing senior unsecured notes due 2021 reflects the pari passu
ranking of the bondholders to other debt at various operating
subsidiaries of the group. It reflects the shift of the funding
strategy of the group towards HoldCo debt as evidenced by the
reduction in OpCo debt versus HoldCo debt from 75% in Dec 2013 to
13% in June 2017 and reduction of secured debt versus total debt
from 65% in Dec 2013 to 3% in June 2017. This change in the
funding strategy reduces the amount of priority debt at various
operating subsidiaries of the group, effectively ranking the
bondholders pari passu with debt at the OpCo level.

Rating Outlook

Moody's adjusted gross debt/EBITDA ratio is expected to remain at
around 4.5x in 2017 and between 4.0x-4.5x in 2018. The stable
outlook reflects Moody's expectation that Puma Energy should be
able to improve FCF generation due to organic growth and lower
capex requirements in 2018. The outlook also reflects the ongoing
support from the shareholders for Puma's growth strategy
demonstrated historically by injection of equity, in case of any
major acquisitions.

What Could Change the Rating - Up

Continued expansion and diversification geographically with
positive FCF generation and sustained Moody's adjusted gross
debt/EBITDA reduction below 3.5x could lead to an upgrade. Given
inter-linkages between Puma Energy and its shareholders, any
upgrade would also have to be considered if there is a change in
the shareholder support currently enjoyed by Puma.

What Could Change the Rating - Down

The Ba2 rating could however come under pressure should (i) Puma
Energy's financial performance be materially affected by some
deterioration in operating conditions in some of its major
geographies and/or (ii) its financial leverage increase
significantly as a result of debt funded growth investments,
which would result in Moody's adjusted gross debt to EBITDA
exceeding 4.5x times for a prolonged period of time.

The principal methodology used in this rating was Midstream
Energy published in May 2017. Please see the Rating Methodologies
page on www.moodys.com for a copy of this methodology.

Puma Energy Holdings Pte. Ltd ("Puma Energy") is an integrated
midstream and downstream oil products group active in Africa,
Latin America, North East Europe, the Middle East and Asia-
Pacific. Trafigura Beheer BV, a global commodity and logistics
firm, established Puma Energy in 1997 as a storage and
distribution network in Central America, and the company has
since grown into a global network operating across 47 countries
worldwide, with approximately 8.0 million m3 of storage capacity
and a network of approximately 2,518 retail service stations
across Africa, Latin America, and Australia. In FY 2016, Puma
Energy sold around 22 million m3 of oil products and its
facilities handled almost 19.7 million m3 of petroleum products.

Trafigura (not rated), a global commodities trader, continues to
own 49.49% of Puma Energy. Sonangol (not rated), the state oil
company of Angola, is the other major shareholder with a 27.92%
stake, Cochan Holdings LLC owns 15.45% and the remaining is owned
by private investors.


PUMA INTERNATIONAL: Fitch Rates New US$300MM Sr. Notes 'BB(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned Puma International Financing S.A's
proposed senior notes issue of up to US$300 million due in 2024
an expected senior unsecured rating of 'BB (EXP)'. The expected
rating is in line with the current rating of the 6.75% notes
issued by Puma International Financing S.A. The assignment of a
final rating to the notes is contingent on the receipt of
documents conforming to information already reviewed by Fitch.

Puma International Financing S.A. is a Luxembourg-based financial
vehicle wholly-owned by Puma Energy Holdings Pte Ltd (Puma
Energy). The notes will be unconditionally guaranteed on a senior
unsecured basis by Puma Energy and will rank equally in right of
payment with all existing and future senior unsecured and
unsubordinated obligations of Puma Energy. The net issue proceeds
are expected to fund a tender offer for part of Puma
International Financing S.A.'s existing 6.75% USD1 billion senior
notes due 2021 and will otherwise be used for general corporate
purposes. The transaction should improve Puma Energy's debt
maturity profile.

KEY RATING DRIVERS

1H17 Underperforms: The mid-low single digit decline in EBITDA
posted by Puma Energy in 1H17 was below Fitch's expectations and
we now no longer expect the improvement in performance forecast
under our previous 2017 base case to materialise. This is mainly
driven by underperformance in Africa and, more importantly, in
South Africa (BB+/Stable) where Puma Energy's B2B segment has
been negatively impacted by the country's weaker economic
environment, particularly in the mining sector. The other regions
have performed more or less in line with our expectations.

Lower Capex Partly Offsets Underperformance: Our revised base
case now assumes 2017 EBITDA will be in line with 2016's. Cash
flow generation in 1H17 was also negatively impacted by working
capital outflows of USD200 million attributed to activity ramp-
ups in Myanmar and Northern Ireland. We assume that these trends
will normalise in 2H17. The lower EBITDA and higher working
capital requirements are expected to be partly offset by a
significant reduction in capex. Under our base case, funds from
operations (FFO) readily marketable inventories (RMI) lease-
adjusted net leverage will weaken to above 4x in 2017 from 3.8x
in 2016, before decreasing to around 3.5x in 2019 as capex remain
below the expansionary levels of the past few years.

Expected Deleveraging Reflects Stable Outlook: After 2017, we
forecast Puma Energy's FFO RMI adjusted leverage to remain below
4x as the historically high investments start to contribute to
EBITDA and working capital reverses in 2018. We have revised our
EBITDA projections downwards for 2018 and 2019, which reflects
our expectation that the operating environment in Africa will
remain difficult. However, this should be offset by a downwards
revision of capex to around USD350 million-USD450 million p.a.
for 2018 & 2019. Failure to maintain FFO RMI adjusted leverage
below 4x will put pressure on the ratings.

Moderate Execution Risk: Between 2012 and 2016 Puma Energy spent
around USD5.7 billion on maintenance, expansionary capex and
acquisitions, while EBITDA only grew to USD718 million in 2016
from USD532 million in 2012. As part of its growth strategy, Puma
Energy's asset base has continued to expand. We believe that
moderate execution risk remains embedded in its strategy as some
of the previous investments have yet to contribute to EBITDA. It
has taken longer for some investments to come on-stream, while at
the same time Puma Energy has been investing in its storage
network, which although supportive of the company's downstream
business, has not materially contributed to EBITDA.

Slower Investment Phase: We forecast that the company has now
entered into a materially lower investment phase and will
continue to spend around USD350 million to USD450 million
annually on investments (down from above USD1 billion p.a, from
2012 to 2015). Apart from maintenance capex of around USD100
million, the rest will mainly be used in greenfield projects.
This means a potential increase in project risk as they do not
immediately contribute to EBITDA and they could experience
delays.

Currency/End-Market Risk: Puma Energy's unit margins and EBITDA
are not directly affected by oil prices, as evidenced in 2015
when oil prices dropped significantly. The company mainly
operates in semi-regulated and fully regulated markets, where the
government sets a margin over prices for distributors. However,
it is not immune to other factors such as FX and end-market risk.
A steep devaluation in currency against the dollar takes around
three to six months to pass on to consumers, as seen in 2015 and
2016 and pricing pressure affects some of its end markets, such
as B2B and mining in South Africa.

Diversified with Leading Market Shares: Puma Energy is highly
diversified by business, geography and customer. It has a unique
integrated business model, with no direct peers on a global
basis. However, some of these geographies are correlated, as the
company is highly dependent on emerging markets. Around 14.5% of
its EBITDA in the 12 months ended 30 June 2017 was generated in
investment-grade countries, and 38.5% from countries rated 'BB+'
to 'BB'. This is a decrease from 2015 when around one third of
Puma's EBITDA was generated from investment-grade countries and
reflects primarily the downgrade of South Africa's sovereign
rating in 2017.

The ratings reflect Fitch's expectations that oil products will
remain in demand in developing markets due to their essential
nature, therefore enjoying limited price elasticity.

Limited Oil Price Risk: Puma Energy hedges its physical fuel
supply. All of its supply stock is either pre-sold or hedged
against price fluctuations. Therefore, in evaluating leverage and
interest coverage ratios, Fitch excludes debt associated with
financing RMI (such as refined oil products) and reclassifies the
related interest costs as cost of goods sold. The differential
between RMI-adjusted and RMI-unadjusted FFO net leverage is
around 0.5x-1.0x, supporting the IDR at 'BB'.

DERIVATION SUMMARY

Puma Energy operates a unique business model with no directly
comparable peers. The closest competitors are oil majors and
commodity traders with downstream assets, although on typically
lower margins than Puma.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- Volume growth of around 7% p.a, after 2017;
- Downstream gross profit margin decreasing to around USD60/
   cubic metre by 2019;
- Downstream contribution decreasing to around 80% of total
gross
   profit by 2019;
- Around USD350 million to USD450 million p.a. outlay for
   acquisitions and capex for 2017 and 2018.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Improved business risk profile reflecting successful
   implementation of growth plans through acquisitions and
   greenfield projects, while maintaining sufficient geographic
   diversification.
- Steady profitability and internal cash-flow growth with
EBITDAR
   surpassing USD1 billion;
- Free cash flow (FCF) /EBITDAR excluding expansionary capex
   (cash conversion) at or above 35% on a sustained basis (2016:
   35%);
- FFO RMI-adjusted net leverage below 3.0x with evidence of
   deleveraging on a sustained basis
- Maintaining FFO fixed charge coverage above 4.5x (2016: 2.8x)

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Sharp deterioration in sales volume due to the competitive or
   regulatory environment or reflecting difficulties in
   integrating acquisitions with EBITDAR falling below USD500
   million;
- FCF/EBITDAR excluding expansionary capex (cash conversion)
   decreasing to 15% or below on a sustained basis;
- Continued debt-funded acquisitions/investments leading to FFO
   RMI-adjusted net leverage remaining above 4.0x on a sustained
   basis.

LIQUIDITY

Adequate liquidity: Puma Energy's liquidity is adequate and will
be enhanced in September 2017 by a new five-year syndicated term
loan facility of USD350 million. The term loan will be used to
pay down short-term debt which, along with the proposed bonds,
will improve the company's maturity profile. As of 30 June 2017,
Puma Energy had cash and cash equivalents of USD391 million and
undrawn credit lines of USD850.7 million (including a USD500
million shareholder revolving credit facility) compared with
USD698 million of short-term debt.


SUNRISE COMMUNICATIONS: Fitch Affirms BB+ LT IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Sunrise Communications Holdings S.A.'s
(Sunrise) Long-Term Issuer Default Rating (IDR) at 'BB+' with a
Stable Outlook. Fitch has also affirmed Sunrise's and Sunrise
Communications AG's senior secured debt ratings at 'BBB-'.

Sunrise's ratings reflect its sufficiently scaled and stable
position in the Swiss mobile market. These underpin the company's
cash flow generation, which is supported by a small but gradually
increasing market share in the fixed line segment. A focus on
cost control and improving sales mix are driving improvements in
EBITDA. Combined with the sale of tower assets, this is leading
to leverage improvements that are likely to build headroom within
the company's rating. Given the competitive dynamics in the Swiss
telecoms market, the improved headroom increases Sunrise's
financial flexibility and ability to manage potential operational
risks.

KEY RATING DRIVERS

Stable Position, Competitive Market: Sunrise has a stable, number
two position in the Swiss telecoms market. Around two-thirds of
total group revenues and a greater proportion of profits are
driven by mobile services. We estimate Sunrise has gradually
increased its mobile service revenue share to around 22.5% from
21.5% over the past five years. The company is likely to sustain
its competitive position in mobile given its focus on network
quality, convergent product and multi-brand strategy. However, we
expect the market to remain competitive due to Swisscom's
dominant position, turnaround plans at third operator Salt and
footprint expansion plans by UPC.

Fixed Line Improving: Sunrise has around a 10% share of the Swiss
fixed broadband market. The unit, including voice services,
accounted for 29% of revenues in 1H17 (excluding hubbing).
Revenues in the fixed line unit have historically declined due to
competition and structural decline in the sector. The
introduction of wholesale fibre-based, multi-play products, a
state of the art TV platform and end-to-end service focus is
helping Sunrise grow its customer base and moderate the decline,
which slowed to -2.4% YoY in 1H17 from -5.7% in 2016 (excluding
hubbing). It is likely that ongoing improvements will continue
albeit gradually due to a lack of customer liquidity in the
market.

EBITDA Profile Turning: Sunrise's EBITDA increased by 1% YoY in
1H17. The increase reversed a long period of decline that
averaged 4% between 2014 and 2016. The improvement is a result of
margin expansion driven by a combination of factors. These
include cost reduction, improvements in customer mix, subscriber
growth, the launch of convergent products and reducing
incremental impact from structural factors in the sector such as
OTT in mobile. Our base case forecast assumes gradual
improvements in EBITDA are likely to continue. However, we remain
cautious about the pace of growth ahead of any potential
competitive reaction to Sunrise's recent success.

Tower Sale Maintaining Comparability: Sunrise announced the sale
of its passive tower infrastructure to a consortium led by
Cellnex Telecom for an EV of CHF500 million. As part of the
transaction, Sunrise has entered into a long-term service
agreement with Cellnex for the provision of infrastructure
services. The service nature of the contract with Cellnex means
that operating lease rental obligations associated with the sold
passive infrastructure will no longer be classified as such under
IFRS, resulting in a decline in reported operating lease costs
that affect Sunrise's adjusted gross debt.

To maintain the comparability of ratings between issuers in the
sector, Fitch has reclassified a proportion of the service cost
paid to Cellnex for the use of the sold infrastructure as an
equivalent to an operating lease expense. As a result of the
reclassification, Fitch has increased Sunrise's pro-forma annual
lease rental expense by around CHF18 million to CHF117 million.
The adjustment is based on our estimate of the annual incremental
cost of replicating the non-service elements of the sold assets
(see below). As per Fitch's criteria for rating non-financial
corporates, operating lease obligations in Switzerland are
capitalised by a multiple of 9.0x.

Tower Sale Improves Leverage: Sunrise has used CHF450 million of
proceeds from the sale of its tower infrastructure to reduce
debt. This has off-set a pro-forma increase in adjusted debt of
CHF167 million compared with 2016 as a result of Fitch's
adjustment to operating lease expense, as detailed above. The net
result is an expected decrease in pro-forma total gross adjusted
debt by around CHF280 million and an improvement in funds from
operations (FFO) adjusted net leverage by a factor of 0.2x-0.3x.
Combined with improvements in EBITDA and interest costs, we
project Sunrise's FFO adjusted net leverage is likely to reduce
to 3.3x in 2018 from 3.8x in 2016.

Dividend Policy Retains FCF: Sunrise has a flexible dividend
policy based on a 65% pay-out ratio of its equity free cashflow
(FCF). The company is targeting a pay-out ratio of 85% once net
debt to adjusted EBITDA below 2.0x. Our base case forecasts
indicate that it is likely that this will be reached over the
next 12 to 24 months, leading to a potential increase in dividend
payments. Nonetheless, Sunrise is likely to improve its FCF
margin to around 2% by 2018 and generate between CHF30 million-
CHF40 million of retained FCF per year. The flexibility in the
dividend payment is an important element of Sunrise's rating as
it provides flexibility to manage operational risks.

DERIVATION SUMMARY
Sunrise's rating reflects its predominantly mobile-centric
operating profile that drives a majority of the company's profits
and its challenger position in a market that is dominated by
incumbent Swisscom. Sunrise has demonstrated historic stability
in service revenue market share, some flexibility in dividend
policy and improving leverage headroom within the rating support
the company's strong 'BB+' rating.

Higher rated peers in the sector have stronger operating profiles
as a result of greater mobile only in-market scale and lower
adjusted net leverage metrics such as Telefonica Deutschland
Holdings AG (BBB/Positive) or have strong domestic positions in
both mobile and fixed with the ownership of local loop
infrastructure such as Royal KPN N.V. (BBB/Stable) or TDC A/S
(BBB-/Stable). Operators such as VodafoneZiggo Group B.V (BB-
/Negative) and Wind Tre S.p.A (B+/Stable) have relatively
stronger domestic positions but manage leverage at higher levels.

KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
- Low single digit revenue decline in 2017 with 0% to 1% growth
thereafter.
- Broadly stable EBITDA margin around 32%.
- Capex (excluding spectrum)-to-revenue of 17% in 2017 declining
   to around 14% thereafter.
- Dividend payments of CHF150 million in 2017 and 85% of pre-
   dividend FCF from 2019.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- FFO-adjusted net leverage below 3.0x (2016: 3.8x)
- FFO fixed charge cover above 3.7x on a sustained basis (2016:
   4.4x)

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Failure to reduce FFO-adjusted net leverage to 3.5x on a
   sustained basis
- FFO fixed charge cover below 3.2x on a sustained basis
- Loss of service revenue market share or expectations of
   negative free cash flow, excluding spectrum payments, in the
   next two years

LIQUIDITY

Comfortable Liquidity: We expect Sunrise to generate between
CHF30 million to CHF40 million of FCF per annum and has an
undrawn revolving credit facility of CHF200 million that matures
in 2020. Cash and equivalents amounted to CHF159 million (1H17).
The combination of internal cash generation and available
revolving credit facilities comfortably cover short-term debt
liabilities of CHF7.3 million.

FULL LIST OF RATING ACTIONS

Sunrise Communications Holdings SA
-- Long-Term IDR: affirmed at 'BB+' ; Outlook Stable
-- Senior secured notes due 2022: affirmed at 'BBB-'

Sunrise Communications AG
-- Term loan B facility due 2022: affirmed at 'BBB-'


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


PETROBRAS GLOBAL: S&P Rates Proposed $2BB Sr. Unsec. Notes 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' debt rating on Petrobras
Global Finance B.V.'s (PGF's) proposed senior unsecured notes due
January 2025 and January 2028, in an expected amount of up to
$2.0 billion, subject to market conditions. PGF is a wholly-owned
finance subsidiary of Brazilian oil and gas company Petroleo
Brasileiro S.A. - Petrobras (BB-/Stable/--). Petrobras will
unconditionally and irrevocably guarantee the notes. The state-
owned oil company will use this issuance for general corporate
purposes, including refinancing of upcoming maturities. The
company has also announced two concurrent liability management
transactions in order to purchase or exchange certain bonds that
will mature in 2019, 2020 and 2021. We don't expect changes to
the company's net leverage following those transactions.

"Our 'BB-' corporate rating on Petrobras reflect its improved
liquidity position and governance standards after the "Lava Jato"
corruption investigation as well as ongoing debt refinancing,
which has allowed the company to extend debt maturities and to
maintain a solid cash position. We consider Petrobras' business
model as its main strength, underpinned by sound scale, quality,
and operational efficiency of its exploration and production
segment. The capital expenditure (capex) cuts and the
implementation of the new pricing policy have also contributed to
improved cash flow generation prospects and strengthened capital
structure.

"Also, the ratings continue to reflect Petrobras' ultimate
relationship with its controlling shareholder, the Brazilian
government, and the latter's incentives, capacity, and tools to
support the company. We believe there is a very high likelihood
that the government would provide timely and sufficient
extraordinary support to Petrobras in the event of distress.

"As a result, according to our government-related entity
criteria, absent any sovereign rating action, while our current
assessment of extraordinary government support remains unchanged,
a downgrade of Petrobras would occur if its stand-alone credit
profile were to fall to 'b-' or lower (from the current 'bb-') or
if we were to downgrade Brazil by more than one notch, given that
we don't believe the company can have a higher rating than its
controlling shareholder."

Any upgrade of Petrobras, on the other hand, could result from
the successful execution of the divestment program, the
effectiveness and sustainability of the new governance standards
and pricing policy, and the higher capex efficiency, resulting in
adjusted net debt to EBITDA consistently at 3.0x-3.5x, funds from
operations to net debt at 20%-25%, and free operating cash flow
to net debt of 10%-15%.

RATINGS LIST

  Petroleo Brasileiro S.A. - Petrobras
    Corporate credit rating                   BB-/Stable/--

Rating Assigned

Petrobras Global Finance B.V.
    Senior unsecured                            BB-


===============
P O R T U G A L
===============


BANCO SANTANDER: Moody's Affirms Ba1 Sr. Unsecured Debt Ratings
---------------------------------------------------------------
Moody's Investors Service has affirmed the ratings and
assessments of Banco Santander Totta S.A. (BST). Specifically,
the rating agency has affirmed BST's: (1) Baa3/Prime-3 deposit
ratings; (2) Ba1 senior unsecured debt ratings; (3) baseline
credit assessment (BCA) of ba3 and adjusted BCA of ba1; (4)
counterparty risk assessment (CRA) of Baa3(cr)/Prime-3(cr) and
affirmed Banco Santander Totta S.A., London (P)Ba2 subordinate
program rating and (P)Ba3 junior subordinate program rating. The
outlook on BST's long-term deposit and senior unsecured debt
ratings has been changed to stable from positive.

The rating action was triggered by the bank's announcement on 5
September 2017 that its board of directors had approved the
acquisition and integration of Banco Popular Portugal(BPP,
unrated). The affirmation of BST's ratings reflects Moody's views
that the bank's credit profile will remain resilient after the
acquisition of BPP despite its weaker financial fundamentals,
namely in terms of asset risk.

The change in the outlook to stable from positive, reflects the
rating agency's view that the integration of BPP is expected to
have an impact on BST's capital and asset risk metrics that limit
the upside rating pressure that Moody's anticipated for BST prior
to this acquisition.

RATINGS RATIONALE

-- RATIONALE FOR THE AFFIRMATION OF BST's RATINGS

The affirmation of BST's BCA follows Moody's assessment of the
impact on BST's credit profile of the acquisition and integration
of BPP; with total assets of EUR7.7 billion at end-June 2017, it
represents around 18% of the bank's balance sheet. The merger is
expected to be concluded in Q4 2017, pending receipt of the
necessary approvals. The IT, operational and commercial
integration is expected to materialize in H1 2018, when all
business activities of BPP will be conducted under the single
brand of BST.

BST will not receive any capital injection from its parent Banco
Santander S.A. (Spain) (LT bank deposit A3/LT issuer rating A3
stable, BCA baa1) to finance BPP's acquisition. In affirming
BST's ratings, Moody's has taken into consideration the impact
that the transaction is expected to have on the bank's capital
ratios, with the tangible common equity to risk weighted assets
ratio estimated to decline to 10.3% from 13% at end-June 2017.
The rating agency expects this impact to be partly mitigated by
BST's sound capital generation capacity through profit retention,
which is expected to remain broadly unchanged after the
integration of BPP.

At end-June 2017, BST reported a non-performing (NPL) ratio of
7.7% and a coverage of NPLs by provisions of 60%. These ratios
are expected to deteriorate to around 9% and 54%, respectively,
after the merger with BPP, but Moody's expects that BST will
continue to focus on improving its asset risk indicators as it
has been doing since 2016 following the acquisition of the assets
and liabilities of Banif (unrated).

BST's ba3 BCA also reflects its adequate liquidity profile,
supported by a large deposit base (representing 69% of total
funding at end-June 2017), that is expected to be mildly
negatively affected after the acquisition of BPP.

Overall, Moody's considers that BST's stronger financial
fundamentals and proven track-record in integrating weaker banks
provide it with sufficient capacity to absorb BPP's acquisition
while preserving a credit profile commensurate with a BCA of ba3.

The affirmation of BST's Baa3/Prime-3 deposit ratings and its Ba1
senior unsecured debt ratings, with a stable outlook, reflect:
(1) the affirmation of the bank's ba3 BCA; (2) the high
probability of support from its parent, Banco Santander,
resulting in a two-notch uplift and an adjusted BCA of ba1; and
(3) the result from the rating agency's advanced loss-given
failure (LGF) analysis after considering the impact of the
transaction, leading to one notch of additional ratings uplift
for the deposit ratings and no further uplift for the debt
ratings.

-- RATIONALE FOR CHANGING THE OUTLOOK TO STABLE FROM POSITIVE

As part of rating action, Moody's changed the outlook on BST's
long-term Baa3 deposit ratings and long-term Ba1 senior unsecured
debt ratings to stable from positive. The change in the outlook
reflects the rating agency's view that the integration of BPP is
expected to have an impact on BST's capital and asset risk
metrics that limit the upside rating pressure that Moody's
anticipated for BST prior to this acquisition. The stable outlook
now reflects Moody's view of BST's resilient credit profile
despite the expected pressure on some of its key financial
indicators.

-- RATIONALE FOR AFFIRMING THE CR ASSESSMENT

As part of rating action, Moody's has also affirmed the CR
Assessment of BST at Baa3(cr), one notch above the adjusted BCA
of ba1 and reflecting the cushion provided by the volume of bail-
in-able debt and deposits (16% of tangible banking assets at end-
December 2016 latest data available), which would likely support
operating obligations in the event of a resolution.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward pressure on the BCA could result once BST completes BPP's
integration and makes progress in improving its key financial
metrics namely capital and asset risk.

Downward pressure on BST's BCA could develop if the bank's
financial profile deteriorates further than anticipated, as a
result of BPP's integration.

As the bank's debt and deposit ratings are linked to the
standalone BCA, any change to the BCA would likely also affect
these ratings. Furthermore, BST's deposit and senior debt ratings
could be affected as a result of an upgrade/downgrade of the
standalone BCA of the parent (Banco Santander S.A. (Spain)).

BST's senior unsecured debt and deposit ratings could also change
due to changes in the loss-given failure faced by these
securities.

LIST OF AFFECTED RATINGS

Issuer: Banco Santander Totta S.A.

Affirmations:

-- LT Bank Deposits, Affirmed Baa3, Outlook Changed To Stable
    From Positive

-- ST Bank Deposits, Affirmed P-3

-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba1,
    Outlook Changed To Stable From Positive

-- Senior Unsecured MTN Program, Affirmed (P)Ba1

-- Other Short Term, Affirmed (P)NP

-- Commercial Paper, Affirmed NP

-- Adjusted Baseline Credit Assessment, Affirmed ba1

-- Baseline Credit Assessment, Affirmed ba3

-- LT Counterparty Risk Assessment, Affirmed Baa3(cr)

-- ST Counterparty Risk Assessment, Affirmed P-3(cr)

Outlook Actions:

-- Outlook, Changed To Stable From Positive

Issuer: Banco Santander Totta S.A., London

Affirmations:

-- Senior Unsecured MTN Program, Affirmed (P)Ba1

-- Subordinate MTN Program, Affirmed (P)Ba2

-- Junior Subordinate MTN Program, Affirmed (P)Ba3

-- Other Short Term, Affirmed (P)NP

-- LT Counterparty Risk Assessment, Affirmed Baa3(cr)

-- ST Counterparty Risk Assessment, Affirmed P-3(cr)

Issuer: TOTTA (IRELAND) p.l.c.

Affirmations:

-- BACKED Commercial Paper, Affirmed NP

PRINCIPAL METHODOLOGY

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


=============
R O M A N I A
=============


* ROMANIA: Business Insolvencies Drop to 8,053 in 2016
------------------------------------------------------
SeeNews reports that French credit insurance agency Coface said
last year showed a continued period of improvement for Romanian
businesses.

According to SeeNews, whereas just three years previously there
were nearly 28,000 insolvencies in Romania, this figure dropped
to 8,053 in 2016.

Coface said the sizeable contraction of 20.8% in company
insolvencies does, however, mask some specifics, SeeNews notes.
This significant decrease is recorded against the backdrop of a
base effect and the high weight of insolvencies among very small
companies, SeeNews states.

Nevertheless, 2016 also saw the start of a major decrease in
insolvencies among large companies, SeeNews discloses.

In a sectorial split, construction and the manufacturing of
textile products, clothing and footwear, as well as hotels and
restaurants, recorded the highest insolvency rates, SeeNews
relays.



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


B&N BANK: Russia's Central Bank Agrees to Bail-Out Lender
---------------------------------------------------------
Jake Rudnitsky, Olga Tanas and Anna Baraulina at Bloomberg News
report that Russia's central bank agreed to bail out B&N Bank,
one of the top five closely held lenders, as the second major
rescue in less than a month stokes concerns of a wider crisis.

According to Bloomberg, the regulator said in a statement on
Sept. 20 the Bank of Russia will provide B&N with funds to
bolster its liquidity after the lender asked for the help.

Last month, it took over Bank Otkritie FC following a run on
deposits, Bloomberg recounts.

B&N was among a handful of private lenders picked by the
regulator to help rescue other ailing banks, unchecked expansion
and mounting bad debt, Bloomberg notes.

B&N appealed to the regulator after some of the banks it acquired
since 2014 turned out to be in worse shape than it expected,
Bloomberg relays, citing a statement from the company.

B&N, owned by billionaire Mikhail Gutseriev and his nephew
Mikail Shishkhanov, saw its assets grew fivefold in less than
four years, Bloomberg discloses.  It was among non-state banks
including Otkritie and Promsvyazbank PJSC, that rapidly
expanded since 2014 through acquisitions and received state money
to rescue smaller competitors, Bloomberg states.

B&N, as cited by Bloomberg, said Mr. Shishkhanov plans to oversee
the lender's bailout with the support of the central bank without
imposing a moratorium on payments.  That would mirror the
treatment of Otkritie, in which the consolidation fund has taken
a stake of at least 75% while continuing to service the lender's
debt, according to Bloomberg.

"The size of the hole at B&N Bank will likely be substantial,"
Bloomberg quotes Kirill Lukashuk, an analyst at the Russian
rating company AKRA, as saying.  "We're not talking about a
crisis in the banking system, which is fundamentally strong."

B&N Bank is one of Russia's largest commercial banks organized as
a public joint-stock company under the laws of the Russian
Federation.



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


MHP SE: Fitch Raises IDR to 'B' on Improved Liquidity Profile
-------------------------------------------------------------
Fitch Ratings has upgraded MHP SE's Long-Term Foreign-Currency
(FC) Issuer Default Rating (IDR) and senior unsecured rating to
'B' from 'B-' and removed them from Rating Watch Positive.

The upgrade follows the improvement in MHP's liquidity profile
and hard currency debt service ratio after refinancing of a
substantial portion of its debt with the proceeds of its Eurobond
issue and the extension of the tenor of its pre-export finance
(PXF) facility from one to three years.

KEY RATING DRIVERS

Increased Financial Flexibility: MHP's liquidity improved and
refinancing risks fell after the net USD240 million proceeds from
the seven-year Eurobond placed in May 2017 were used to repay
short-term debt and create a liquidity buffer. The remaining
USD245 million financed a tender for a portion of the USD750
million Eurobond due April 2020. In addition, in the end of
August 2017 MHP extended the tenor of its USD100 million PXF
facility from one to three years, which will cover the funding
needs for its sunflower crushing operations. MHP's financial
flexibility improved due to a lower concentration of debt
maturities and the extension of the debt maturity profile.

Piercing of Country Ceiling: Fitch upgraded MHP's FC IDR to 'B',
one notch above Ukraine's Country Ceiling of 'B-' due to the
improvement in the company's hard-currency external debt service
ratio upon completion of the refinancing of debt due 2017-2018
and extension of the PXF facility to three years. We expect the
ratio to be sustained within 1.0x-1.5x until 2020 when one of the
company's Eurobonds matures.

Higher Average Poultry Prices: In 1H17 MHP's average poultry
prices increased by 12% in US dollars and contributed to 26% yoy
growth in the company's EBITDA. This was driven by MHP's export
product mix optimisation as well as geographic diversification
and slight increase in international poultry prices. In addition
domestic selling prices grew in US dollar terms for the first
time since 2013 due to price increases in 2H16 and relatively
stable exchange rates. Nevertheless, we expect domestic prices to
remain below export prices due to weak consumer sentiment in the
country.

Subsidies Only in 2017: Our EBITDA forecast for 2017 incorporates
the government subsidies to agricultural producers of around
USD30 million in 2017. This will substitute income from the
special VAT regime that was fully cancelled from 2017 (2016:
USD34 million). However, we do not factor in similar subsidies
after 2017, due to the introduction of material limitations on
their amounts per legal entity. A subsequent drop in EBITDA in
2018 will be smoothed by growing poultry exports as new
production capacity ramps up.

Neutral to Positive FCF: Fitch expects MHP to generate neutral to
positive FCF over 2017-2020, despite large investments in new
production lines in the Vinnytsia poultry complex and dividends.
We also take into account some scope for reducing future
distributions to shareholders and expansion capex if there is
operating underperformance.

Strong Business Profile: The ratings benefit from MHP's strong
market position as the dominant poultry and processed meat
producer in Ukraine, with larger scale, better access to bank
financing and a higher degree of vertical integration than its
local competitors. The company's ability to expand and diversify
export markets is another strong driver of MHP's business
profile.

Material FX Mismatch: The FX mismatch continues to weigh on MHP's
credit profile, as the company's debt is in US dollars and euros,
while domestic operations accounted for 42% of revenue in 1H17.
We do not expect a material reduction in FX risks over the medium
term, although poultry exports should grow once the planned
extension of production capacity is completed between 2018 and
2020.

DERIVATION SUMMARY

MHP is smaller than international meat processors BRF S.A.
(BBB/Negative), Tyson Foods Inc. (BBB/Stable) and JBS S.A.
(BB/RWN). It has similar credit metrics and a similarly
vertically integrated business model to the largest Russian pork
producer, Agri Business Holding Miratorg LLC (B+/Stable). MHP's
has better corporate governance practices and slightly stronger
business profile due to its access to export markets but is more
exposed to FX risks. MHP's LC IDR is lower because it is
constrained by the large portion of its operations that take
place in Ukraine, being therefore largely exposed to a weak
operating environment.

MHP's FC IDR exceeds the Ukraine's Country Ceiling by one notch
due to sufficiently high hard-currency debt service ratio over
the next three years.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- USD/UAH at 28.0 in 2017, 29.3 in 2018 and 30.2 thereafter
- 5% CAGR in sales volumes over 2017-2021 (mostly from
   increasing exports);
- domestic poultry price growth slightly below Ukraine's CPI;
- mid-single-digit growth in average export prices due to
   product mix adjustments, but no recovery in international
   grain and vegetable oil prices over 2017-2018;
- government subsidies of around USD30 million in 2017 and zero
   thereafter;
- construction of new poultry production capacity and land bank
   expansion, leading to capex at 10%-15% of revenue over 2017-
   2020;
- EBITDA margin above 30%;
- dividends not exceeding USD80 million a year;
- no M&A;
- maintenance of offshore cash balances of around USD100
   million.

RATING SENSITIVITIES

For Local-Currency IDR:
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Improved operating environment in Ukraine reflected in a
   higher sovereign LC IDR or
- Reduction in MHP's dependence on the local economy as measured
   by material decrease in proportion of domestic sales in
   revenues

In both cases an upgrade would be subject to the maintenance of
adequate liquidity and FFO adjusted leverage staying sustainably
below 3.5x.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- FFO-adjusted leverage above 4.5x and RMI-adjusted FFO fixed
   charge cover below 2.0x, both on a sustained basis
- Liquidity ratio below 1x on a sustained basis coupled with
   deteriorated access to external funding

For Foreign-Currency IDR:
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Hard-currency debt service ratio above 1.5x over the rating
   horizon, as calculated in accordance with Fitch's methodology
   "Rating Non-Financial Corporates Above the Country Ceiling" or
- Ukraine's Country Ceiling being raised to 'B+' or above

In both cases an upgrade would be subject to the maintenance of
adequate liquidity and FFO adjusted leverage sustainably below
3.5x.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- FFO-adjusted leverage above 4.5x and RMI-adjusted FFO fixed
   charge cover below 2.0x, both on a sustained basis
- Liquidity ratio below 1x on a sustained basis coupled with
   deteriorated access to external funding
- Hard-currency debt service ratio below 1x over the rating
   horizon

LIQUIDITY, DEBT AND GROUP STRUCTURE

Improved Liquidity: As of 1 September 2017 MHP's liquidity
position was strong as short-term debt of USD36 million was well
covered by Fitch-adjusted unrestricted cash of USD165 million.
Short-term debt has fallen substantially since end-March (USD271
million) due to the recent refinancing. In addition, liquidity
and refinancing risks fell after MHP extended the tenor of its
committed USD100 million PXF facility from one to three years.

Average Recoveries for Unsecured Bondholders: The ratings of the
senior unsecured Eurobonds have been upgraded and aligned with
MHP's Long-Term IDR of 'B', reflecting average recovery prospects
given default. Fitch treats the Eurobonds as pari passu with
other senior unsecured debt of the group, which is raised
primarily by operating companies, despite being issued by the
holding company. There are no structural subordination issues, as
the Eurobond is covered by suretyships (which we consider akin to
guarantees) from operating companies, altogether accounting for
around 90% of the group's EBITDA in 2016.

Parent/Subsidiary Linkage: The Long-Term IDRs of PJSC Myronivsky
Hliboproduct, MHP S.A.'s 95.4% owned subsidiary, are equalised
with those of the parent, due to the strong strategic and legal
ties between the companies. Myronivsky Hliboproduct is a
marketing and sales company for goods produced by the group in
Ukraine. The strong legal links with the rest of the group are
ensured by the presence of cross-default/cross-acceleration
provisions in Myronivsky Hliboproduct's major loan agreements and
suretyships from operating companies generating a substantial
portion of the group's EBITDA.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that MHP SE would be considered a
going concern in bankruptcy and that the company would be
reorganised rather than liquidated. We have assumed a 10%
administrative claim.

Going-Concern Approach: MHP's going concern EBITDA is based on
LTM June 2017 EBITDA. The going-concern EBITDA estimate reflects
Fitch's view of a sustainable, post-reorganisation EBITDA level
upon which we base the valuation of the company.

The going-concern EBITDA is 45% below LTM EBITDA to reflect the
company's vulnerability to FX risks and the volatility of
poultry, grain and sunflower seeds prices, as well as costs of
certain raw materials.

An EV/EBITDA multiple of 4x is used to calculate a post-
reorganisation valuation and reflects a mid-cycle multiple. The
multiple is same as for Kernel Holding S.A., a Ukrainian
agricultural commodity trader and processor.

Fitch debt waterfall assumptions take into account debt at 1
September 2017. In addition, the new secured USD100 million PXF
facility is assumed to be fully drawn upon default. Senior
unsecured Eurobonds (USD1 billion in total) and unsecured bank
loans are structurally subordinated to the secured PXF.

The waterfall results in a 'RR3' Recovery Rating for senior
unsecured Eurobonds. However, the recovery rating is capped at
'RR4' due to the Ukrainian jurisdiction. Therefore, the senior
unsecured Eurobonds are rated 'B'/'RR4'/50%.

FULL LIST OF RATING ACTIONS

MHP SE
-- Long-Term Foreign-Currency IDR: upgrade to 'B' from 'B-', off
    RWP, Stable Outlook
-- Long-Term Local-Currency IDR: affirm at 'B', Stable Outlook
-- Foreign-currency senior unsecured rating: upgrade to 'B' from
   'B-'; Recovery Rating of 'RR4', off RWP

OJSC Myronivsky Hliboproduct (95.4% owned subsidiary of MHP SE)
-- Long-Term Foreign-Currency IDR: upgrade to 'B' from 'B-', off
    RWP, Stable Outlook
-- Long-Term Local-Currency IDR: affirm at 'B', Stable Outlook
-- National Long-Term rating: affirm at 'AA+(ukr)', Stable
    Outlook


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


CO-OPERATIVE BANK: CFO Steps Down After GBP700MM Restructuring
--------------------------------------------------------------
Emma Dunkley at The Financial Times reports that The Co-operative
Bank's chief financial officer John Worth is leaving the loss-
making lender just weeks after it completed a GBP700 million
restructuring.

According to the FT, the bank announced on Sept. 20 that
Mr. Worth will be replaced by Tom Wood, a director at the bank,
who will continue with his responsibilities as chief
restructuring officer.

Mr. Worth's departure comes after the bank secured a rescue deal
from existing hedge fund investors earlier in the year, who now
own 99% of the bank, with the Co-operative Group retaining a
nominal stake, the FT relates.

The rescue package was formed after the bank warned at the start
of the year that it was unlikely to meet its capital requirements
over the medium term, the FT notes.

Following months of protracted negotiations, the bank struck a
deal to raise GBP250 million of new equity from existing
investors and GBP450 million from bondholders swapping into
equity, the FT recounts.

The rescue package was necessary to avoid being wound down by the
Bank of England, the FT states.

                     About Co-operative Bank

The Co-operative Bank plc is a retail and commercial bank in the
United Kingdom, with its headquarters in Balloon Street,
Manchester.

In 2013-2014, the Bank was the subject of a rescue plan to
address a capital shortfall of about GBP1.9 billion.  The Bank
mostly raised equity to cover the shortfall from hedge funds.

In February 2017, the Bank's board announced that they were
commencing a sale process for the Bank and were "inviting
offers."

The Troubled Company Reporter-Europe reported on Sept. 12, 2017,
that Moody's Investors Service 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
increase.

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.


ELITE INSURANCE: Fitch Lowers IFS Rating to BB and Then Withdraws
-----------------------------------------------------------------
Fitch Ratings has downgraded Gibraltar-based Elite Insurance
Company Limited's (Elite) Insurer Financial Strength (IFS) Rating
to 'BB' from 'BBB-' and removed the rating from Rating Watch
Negative (RWN). The Outlook is Negative.

At the same time Fitch has withdrawn Elite's ratings as the
company has chosen to stop participating in the rating process.
Therefore, Fitch will no longer have sufficient information to
maintain the rating. Accordingly, Fitch will no longer provide
ratings or analytical coverage for Elite.

KEY RATING DRIVERS

The downgrade reflects the company's weakened capitalisation, as
evidenced by Elite's shortfall in coverage of the Solvency II
Solvency Capital Requirement (SCR) of GBP12.3 million as at 31
March 2017 as reported in the company's published Solvency and
Financial Condition Report (SFCR), which is equivalent to SCR
coverage of 71% (31 March 2016: 119%). However, Elite maintained
a surplus over its minimum capital requirement (MCR) of GBP19.7
million at 31 March 2017, equivalent to 285% of MCR coverage.

The Negative Outlook reflects uncertainty regarding the future
development of loss reserves and consequently the prospective
level of capital adequacy.

The SFCR states that the company made a technical loss of GBP23.4
million for the year ending March 31, 2017 (March 31, 2016: a
profit of GBP8.7 million) due to significant reserve
strengthening affecting UK legal expenses, French construction
and UK motor liability insurance lines. This led to a reduction
in shareholders' funds to GBP24.5 million at March 31, 2017, from
GBP47.9 million at March 31, 2016.

The reduction in available shareholders' funds will result in a
deterioration of Fitch's Prism Factor Based Model score for
Elite, which is likely to fall to the 'Somewhat Weak' category
from 'Adequate' at March 31, 2017.

Elite announced on July 5, 2017, that it will cease writing new
business with immediate effect and go into run-off. Fitch's last
review of Elite was on December 14, 2016 (see " Fitch Rates Elite
Insurance IFS 'BBB-'; Outlook Stable).


HERO ACQUISITIONS: Moody's Lowers CFR to B2, Outlook Negative
-------------------------------------------------------------
Moody's Investors Service has downgraded Hero Acquisitions
Limited's (HSS) corporate family rating (CFR) to B2 from B1 and
probability of default rating (PDR) to B2-PD from B1-PD.
Concurrently, Moody's has downgraded to B3 from B2 the instrument
rating on the GBP136 million outstanding senior secured notes
maturing in 2019 issued by HSS Financing plc, a subsidiary of
HSS. The outlook on the ratings is negative.

RATINGS RATIONALE

"The downgrade of the CFR to B2 reflects (1) the significant
increase in HSS' adjusted leverage to 5.0x as of the end of Q2
2017 from 4.1x as of fiscal year (FY) end 2016 with the
expectation of only moderate de-leveraging towards 4.5x by FY end
2017, (2) the prolonged albeit slowing decline in rental revenues
since Q1 2017 which Moody's expects to continue over at least Q3
2017, and (3) the very tight liquidity position based on the
rating agency's forecast that the GBP80 million revolving credit
facility (RCF) will remain largely drawn due to a modest free
cash flow (FCF) generation in H2 2017 and throughout 2018", says
Sebastien Cieniewski, Moody's lead analyst for HSS.

The key constraint on the rating lies in Moody's expectation that
HSS' adjusted leverage (as adjusted by Moody's mainly for
operating leases and impairment of property, plant, and
equipment) will remain elevated at above 4.5x by FY end 2017 with
only moderate de-leveraging towards 4x in FY 2018. HSS
experienced a significant deterioration of its adjusted gross
leverage (as adjusted by Moody's mainly for operating leases and
impairment of property, plant, and equipment) to 5.0x as of the
last twelve months (LTM) period to Q2 ending July 1, 2017 from
4.7x a quarter earlier and 4.1x as of FY 2016. Going forward de-
leveraging should be mainly driven by significant annualized cost
savings estimated by management at c.GBP13 million compared to
the Q1 2017 annualized cost base. Moreover, Moody's notes that
management has also announced the launch of a comprehensive
strategic review with the aim to accelerate profitable market
share gains and to de-lever the business.

While management benefits from a good visibility on cost savings
as the majority of cost actions were implemented by the end of Q2
2017, the rating agency considers that a return to a sustainable
growth in the rental (and related revenues) segment remains
uncertain. In the 26 weeks ended July 1, 2017, group revenues
declined by 3.4% compared to the 27 weeks ended July 2, 2016. The
decline was driven by rental revenues (74% of group revenues),
which declined by 7.3% during the same period while the services
segment (26% of group revenues) continued growing at 10.1%.
Positively, as a result of management sales initiatives focused
on reinvigorating rental (and related) revenues, the decline in
rental (and related) revenues has reduced from a decline of 10.1%
year on year in Q1 2017 to a decline of 4.4% year on year in Q2
2017.

Due to the rental segment's significantly higher contribution as
a percentage of revenues at 61.9% compared to 12.6% for the
services segment in the 26 weeks ended July 1, 2017, adjusted
group EBITDA (as reported by the company) declined significantly
to GBP53.3 million on an LTM basis to H1 2017 from GBP68.5
million in FY 2017.

While sales initiatives implemented in Q2 2017 had a positive
impact on rental revenues, the rate of recovery has been
materially slower than targeted. A continued decline in rental
revenues, which could be driven by a weaker gross domestic
product growth in the UK in 2017 and 2018 compared to 2016 as
anticipated by Moody's, could thus constrain de-leveraging going
forward by offsetting the positive impact on EBITDA from the cost
savings plan.

Moody's projects that HSS should maintain an adequate liquidity
position over the next 4 quarters although with a relatively
modest headroom. In the short-term, the rating agency does not
anticipate any meaningful reduction in the GBP68.5 million of
drawings as of H1 2017 under the GBP80 million revolving credit
facility or increase in the cash balance which stood at GBP7.1
million as of the same date. Indeed Moody's projects a weak or no
positive FCF generation in H2 2017 and FY 2018 despite a tight
control of working capital and capital expenditures. The rating
is also constrained by the maturities of the revolving credit
facility and senior notes due in February and August 2019,
respectively. Any failure to address these maturities well in
advance of their due dates due to continued weak trading or
ongoing and comprehensive strategic review could lead to a
further downgrade of the ratings.

HSS's PDR at B2-PD, at the same level as the CFR, reflects
Moody's assumptions of a 50% family recovery rate given the mix
of bank debt and bonds in the capital structure. The RCF has a
springing leverage covenant only that also acts as a draw stop,
which requires a minimum EBITDA of GBP35 million and tested only
once 25% of the facility is drawn. The senior secured notes are
rated B3, one notch below the CFR, reflecting the size of the
super senior RCF ranking ahead in the event of enforcement.

RATING OUTLOOK

The negative outlook reflects the limited headroom for
underperformance over the next 12 months for HSS to reduce its
leverage from a high level in Q2 2017 in the context of
approaching debt maturities.

WHAT COULD CHANGE THE RATING --UP

While there is no upwards pressure on the ratings in the short-
term, the outlook could be stabilized if HSS (1) stabilizes at
least its rental revenues while delivering the full extent of the
cost savings plan, (2) reduces adjusted leverage (as calculated
by Moody's) towards 4.0x on a sustainable basis, and (3)
maintains an adequate liquidity position.

WHAT COULD CHANGE THE RATING --DOWN

HSS could be downgraded if (1) the company continues experiencing
a declining in rental revenues, (2) adjusted leverage is
maintained at or above 5.0x on a sustained basis, (3) the
liquidity position deteriorates further by a decrease in cash and
availability under the revolving credit facility, or (4) the
company fails to refinance its debt well in advance of the due
date.

The principal methodology used in these ratings was Equipment and
Transportation Rental Industry published in April 2017. Please
see the Rating Methodologies page on www.moodys.com for a copy of
this methodology.

HSS is a provider of tool and equipment hire and related services
in the UK and Ireland. The company operates mainly in the
business-to-business market (in excess of 90% of total turnover)
through its flagship brand HSS Hire for its core tool and
equipment rental activities. Thanks to acquisitions, the company
has diversified its product offering to include temporary power
solutions, powered access, and temporary cooling and heating
solutions. In February 2015, HSS Hire Group plc, HSS's top
holding company, listed its share capital on the London Stock
Exchange.


INTEROUTE FINCO: Moody's Puts B1 Rating to EUR640MM Term Loan B
---------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the EUR640
million Term Loan B issued by Interoute Finco plc (Interoute
Finco). Proceeds from the term loan will be used to refinance
Interoute's existing EUR275 million Term Loan B due November
2023, refinance Interoute Finco's EUR350 million Fixed Rate
Senior Secured Notes due October 2020 plus the applicable
redemption premium, as well as pay associated fees with any small
surplus proceeds used for general corporate purposes.

This refinancing transaction is leverage-neutral and does not
affect the existing ratings or outlook of Interoute Finco or
Interoute Communications Holdings SA (Interoute Communications).

RATINGS RATIONALE

The B1 rating on the Term Loan B reflects its secured claim and
pari passu status vis-a-vis the existing Term Loan B amount (of
EUR275 million) and the company's revolving credit facility
(RCF), which was fully undrawn as of June 30, 2017. The term loan
B will mature in November 2023.

Moody's expects the company's gross leverage ratio (as adjusted
by Moody's) for FY2017 will remain around 3.8x and essentially
unchanged by this transaction. The term loan is covenant-lite,
with incurrence-based covenants that include a Consolidated Net
Senior Secured Debt/EBITDA test of 4.0x (where EBITDA includes
annualized synergies) and a Consolidated Net Debt/EBITDA test of
5.0x. The RCF contains a Consolidated Senior Secured Net Debt /
EBITDA maintenance covenant of 5.5x triggered at a utilization
level above 35% which does not change with this transaction.
Through this refinancing the company targets an annual interest
savings which would support the company's free cash flow
generation in 2018.

Interoute's B1 CFR continues to reflect: (1) the fragmented,
competitive nature and low growth of the European business
telecoms market; (2) the company's modest size, margins and cash
flow relative to larger competitors and incumbents in an industry
with scale economies; and (3) its moderate leverage and the
potential for higher leverage in future periods as its strategy
shifts to higher than historic growth.

These factors are balanced by: (1) the company's largely owned,
high bandwidth, all-IP fiber network without legacy costs or
issues; (2) a high proportion of contracted recurring revenues
combined with a solid revenue backlog and low churn; (3) strong
secular demand and attractive growth prospects for its Enterprise
Services (approximately 60% of revenues for the first half of
FY2017 ended June 30, 2017); (4) moderate capex (c.12% of FY 2016
revenues for Interoute on a standalone basis), of which 15% was
maintenance capex, coupled with structurally negative working
capital; and (5) stable management team and the presence of a
long-standing anchor shareholder, The Sandoz Family Foundation.

RATIONALE FOR STABLE OUTLOOK

Interoute's stable outlook reflects Moody's expectations that
Interoute is close to finalizing the integration of Easynet and
has realized, as of June 30, 2017, more than three-fourths of its
final targeted synergies from Easynet of EUR32 million. Moreover,
the stable outlook does not anticipate Interoute undertaking
additional significant leveraging transactions over the next two
years. It also anticipates that over the medium term Interoute
will apply its increasing free cash flow to deleverage toward
3.0x net debt/EBITDA (as defined by the company and unadjusted).

WHAT COULD MOVE THE RATING UP/DOWN

Positive pressure on the rating could develop should Interoute's
adjusted gross debt/EBITDA decreases sustainably below 3.25x and
adjusted free cash flow/gross debt increases consistently above
5%.

Downward rating pressure could develop if the company's earnings
or liquidity deteriorate, or its capital intensity and/or debt
load increases such that Interoute is unable to generate
sustainable positive free cash flow or if leverage (gross
debt/EBITDA as adjusted by Moody's) remains consistently above
4.25x.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was
Telecommunications Service Providers published in January 2017.
Please see the Rating Methodologies page on www.moodys.com for a
copy of this methodology.

Interoute is one of Europe's leading information communication
technology and cloud computing companies, offering data transport
and information communication products and services across its
fiber network and data center platform. Interoute's all-IP fiber
network includes 24 metro area networks and covers 31 countries,
complemented by the company's 17 hosting data centers and 31
colocation data centers. Leveraging its next generation
infrastructure, the company provides network services primarily
to fixed and mobile telecoms companies, financial institutions
and multinationals, as well as cloud-centric Infrastructure-as-a-
Service (IaaS) overlaid on its Network Services offerings. It
also offers enterprise services (communications, computing, VPN
and network security) to a range of private enterprises and
governmental entities. In the twelve months to June 30, 2017,
Interoute reported EUR720 million of revenues and EUR158 million
of (Adjusted) EBITDA.


MILLER HOMES: Fitch Assigns 'B+(EXP)' LT Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has assigned a Long-Term Issuer Default Rating of
'B+(EXP)' to UK Housebuilder, Miller Homes Group Holdings PLC
(Miller Homes). At the same time, Fitch assigned an expected
instrument rating of 'BB-(EXP)'/'RR3'/61% to the group's proposed
GBP425 million senior secured notes. The Outlook on the IDR is
Stable.

The IDR reflects Miller Homes' significantly leveraged financial
profile resulting from its acquisition by Bridgepoint. Fitch
expects funds from operations (FFO)-adjusted leverage of over
4.5x following the issuance of a proposed GBP425 million of
senior secured notes. Conversely, management's prudent approach
to deleveraging and the structural undersupply of housing across
the UK are positive factors which could support an upgrade in the
future.

The rating of the senior secured notes reflects their superior
recovery, supported by the value of available land in a
liquidation scenario.

KEY RATING DRIVERS

Leverage Constrains the Ratings: Fitch assumes the issuance of
GBP425 million senior secured notes will increase total debt by
2.5x compared to end-2016 (GBP163 million). Fitch expects pro
forma FFO adjusted leverage to increase to around 4.6x in 2017,
before falling to around 3.9x in 2018. Even though operationally
solid, with a conservatively managed business, the new capital
structure is a major rating constraint.

Robust Business Profile: Over the last few years, Miller Homes
has successfully managed land and development spending,
generating meaningful cash flows. Fitch expects that the recent
increase in EBITDA margins, mainly driven by higher volumes with
related scale benefits, will be sustained, supported by Miller
Homes' identification of more attractive sites and house prices
rising faster than production cost inflation.

The high level of standardisation of Miller Homes' houses reduces
the complexity and increases the cost "certainty", minimising the
risk of cost overruns. The company's ability to pass on any cost
increases to the landowner via a lower land purchase price is a
further business strength.

Low Risk Approach: Discretionary yet measured land spending,
combined with the use of land options, limits the amount of
capital required to operate. In addition, the company's largely
presale strategy reduces the risk of excess inventory. At end-
2016, forward sales exceeded the value of development work in
progress and Fitch expects this to continue in the coming years.

Benign Market Environment: The UK market is cyclical in terms of
price and volume, with additional uncertainty as a result of the
Brexit referendum. However, the structural undersupply of houses
in the UK makes it a favourable market. Current supportive
government schemes and a low interest-rate environment helped the
company to increase revenues and profitability over the last few
years. In the absence of further selling price increases, Fitch
expects revenue growth to be driven by increased volumes.

Good Recovery: Fitch applies a one-notch uplift to the senior
secured notes compared to the IDR. Fitch's recovery is based on a
liquidation approach, supported by the value of inventory (mainly
land), which we discounted at 30%. Fitch assumes the super senior
facilities to be fully drawn and ranking prior to the notes'
creditors. This results in an expected senior secured rating of
'BB- (EXP)'.

DERIVATION SUMMARY

Miller Homes is a mid-size player in the UK housebuilding sector,
regionally focused on the Midlands, the north of England and the
central belt of Scotland. Despite its smaller scale, the company
is able to compete locally with very large players such as Taylor
Wimpey (BBB-/Stable) and Barratt, and large companies such as
Bellway. The rating of Miller Homes is constrained by its
leverage, which is high for the industry, rather than a business
profile and development appetite which display features in common
with higher-rated entities.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- low single-digit growth of average selling price (ASP);
- increasing production volumes of around 9% per year over the
   rating horizon;
- no cash return to shareholders over the next four years.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- FFO adjusted leverage below 3.5x on a sustained basis
- Maintaining Order book/Development WIP around or above 100% on
   a sustainable basis

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- FFO adjusted leverage above 5.0x on a sustained basis
- Order book/Development WIP materially below 100% on a
   sustainable basis, indicative of speculative development
- Extraction of dividends that would lead to a material
reduction
   in free cash flow generation and reduce deleveraging

LIQUIDITY

Sufficient Liquidity: Miller Homes' liquidity is adequate. It
includes a GBP80 million committed revolving credit facility.
Fitch expects Miller Homes to have readily available cash
balances of about GBP20 million at year-end 2017. This is
sufficient to cover maximum working-capital swings of around
GBP30 million. The successful issuance of the secured notes,
assuming a term of at least six years, means that there will be
no maturities in the next 24 months.

FULL LIST OF RATING ACTIONS

Miller Homes Group Holdings plc
- Issuer Default Rating (IDR): 'B+ (EXP)' with Stable Outlook.
- Senior Secured Rating: 'BB-'/'RR3'/61% (EXP)
- Proposed GBP425 million senior secured notes: 'BB- (EXP)'


QUOTIENT LIMITED: Inks Change of Control Pact With Top Management
-----------------------------------------------------------------
Quotient Limited entered into a Change of Control Agreement with
the following executive officers: Paul Cowan, Christopher Lindop,
Edward Farrell, Jeremy Stackawitz and Roland Boyd.  The purpose
of the CIC Agreements is to establish certain protections for the
Company's officers upon a qualifying termination of their
employment in connection with a change of control of the Company.

Each CIC Agreement provides that, if the Company terminates the
executive's employment without "Cause" (as defined in the CIC
Agreement) or the executive terminates his employment for "Good
Reason" (as defined in the CIC Agreement) and, in either case,
that termination occurs no more than 24 months following a
"Change of Control" (as defined in the CIC Agreement), then,
subject to the executive signing and not revoking a release and
waiver of claims, the executive will receive a lump sum payment
of the following:

   * any Accrued Obligations owed to the executive, which
     include: (i) any of the executive's annual base salary
     earned through the effective date of termination that
     remains unpaid; (ii) any bonus payable with respect to any
     fiscal year which ended prior to the effective date of the
     executive's termination of employment, which remains unpaid;
     and (iii) any expense reimbursement due to the executive on
     or prior to the date of termination which remains unpaid to
     the executive; and

   * a cash payment equal to 150% of the sum of the executive's
     base salary plus target annual bonus in effect on the date
     of termination, without taking into effect any reduction in
     the executive's annual base salary that may constitute "Good
     Reason" under the CIC Agreement.

Each CIC Agreement will expire on Aug. 7, 2020, and will
automatically renew for successive one year terms unless the
Board of Directors provides written notice of expiration of the
CIC Agreement at least 90 days prior to Aug. 7, 2020, or the
applicable anniversary thereof.

                   About Quotient Limited

Penicuik, United Kingdom-based Quotient Limited --
http://www.quotientbd.com/-- develops, manufactures and sells
products for the global transfusion diagnostics market.  Products
manufactured by the Group are sold to hospitals, blood banking
operations and other diagnostics companies worldwide.  Quotient
Limited completed an initial public offering for its ordinary
shares on April 30, 2014 pursuant to which it issued 5,000,000
units each consisting of one ordinary share, no par value and one
warrant to purchase 0.8 of one ordinary share at an exercise
price of $8.80 per whole ordinary share, raising $40 million of
new equity share capital before issuing expenses.

Quotient Limited reported a net loss of US$85.06 million on
US$22.22 million of total revenue for the year ended March 31,
2017, compared to a net loss of US$33.87 million on US$18.52
million of total revenue for the year ended March 31, 2016.

As of March 31, 2017, Quotient Limited had US$109.97 million in
total assets, US$134.06 million in total liabilities and a total
shareholders' deficit of US$24.09 million.

Ernst & Young LLP, in Belfast, United Kingdom, issued a "going
concern" opinion in its report on the consolidated financial
statements for the year ended March 31, 2017, citing that the
Company has recurring losses from operations and planned
expenditure exceeding available funding that raise substantial
doubt about its ability to continue as a going concern.


===================
U Z B E K I S T A N
===================


VEON LTD: Uzbek Currency Devaluation Neutral on Fitch BB+ Rating
----------------------------------------------------------------
Fitch Ratings says the recent changes to the Uzbek currency
control regulation and the concurrent som devaluation are
unlikely to have a significant impact on VEON Ltd's leverage
metrics, and are neutral for its 'BB+' rating.

The negative impact of an expected decline in USD-translated
EBITDA and cash flow generation due to currency devaluation in
Uzbekistan could be mitigated by VEON's access to cash in the
country. Under Fitch's current approach, cash in Uzbekistan is
treated as restricted and excluded from its net leverage ratio
calculations. Assuming that the currency controls are
sufficiently relaxed, Fitch may start treating it as regular
cash, leading to a reduction in the estimated net debt.

We expect that the positive impact from higher available cash
would largely mitigate the negative effect of lower EBITDA and
cash flow on Fitch-calculated leverage metrics. VEON estimated
the value of cash in Uzbekistan at approximately USD350 million
at the current market exchange rate. This is comparable with the
expected annualised EBITDA decline of USD175million-USD225
million.

Uzbekistan initiated FX regulation reforms on 5 September by
abolishing a dual exchange rate mechanism, likely leading to
liberalisation of currency controls. VEON announced that under
the liberalised exchange rules it may be able to more effectively
repatriate cash from Uzbekistan in the longer term. The company
estimated that the approximately 92% som devaluation that
followed may shed USD300million-USD350 million of its Uzbek
revenues and USD175 million-USD220 million of the underlying
EBITDA on an annualised basis, leading to an immediate rise in
the company's calculated net debt/underlying EBITDA leverage
ratio by 0.1x.



                            *********

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
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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
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like the definitive compilation of stocks that are ideal to sell
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                            *********


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-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

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

This material is copyrighted and any commercial use, resale or
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