TCREUR_Public/171005.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, October 5, 2017, Vol. 18, No. 198


                            Headlines


B E L G I U M

SOLVAY FINANCE: Fitch Affirms BB+ Sub. Hybrid Bond Ratings


D E N M A R K

SYDBANK A/S: Moody's Raises Preferred Stock Rating to Ba1(hyb)


I R E L A N D

ADAGIO IV: Moody's Assigns (P)Ba2 Rating to Cl. E-R Jr. Notes


I T A L Y

GRUPPO WASTE: Unit Files Liquidation Agreement Application


K A Z A K H S T A N

KAZTRANSGAS JSC: Fitch Corrects September 11 Rating Release


M O N T E N E G R O

MONTENEGRO: Moody's Affirms B1 LT Issuer Rating, Outlook Stable


N E T H E R L A N D S

CAIRN CLO VIII: Moody's Assigns (P)B2 Rating to Class F Notes
GLOBAL TIP: S&P Affirms 'B+' Long-Term Corporate Credit Rating
HALCYON STRUCTURED 2007-I: Moody's Affirms B1 Cl. E Notes Rating


P O R T U G A L

CAIXA GERAL: Fitch Withdraws BB- Rating on EUR150MM Notes


R U S S I A

FEDERAL PASSENGER: Fitch Affirms BB+ LT Foreign-Currency IDR
GAZPROMBANK: Fitch Affirms BB+ IDR, Revises Outlook to Positive
INT'L FUND: Put on Provisional Administration, License Revoked
NORD GOLD: Moody's Raises CFR to Ba2, Outlook Stable
TERRITORIAL GENERATING: Fitch Affirms BB+ IDR, Outlook Stable

TRANSCONTAINER PJSC: Fitch Affirms BB+ LT IDR, Outlook Stable
VIM AIRLINES: Future at Risk Over Huge Debt Pile


S W E D E N

ENIRO AB: Completes Recapitalization Plan, Awaits Final Approval
UNILABS HOLDING: S&P Affirms 'B' CCR on Debt Issuance Plans


S W I T Z E R L A N D

DUFRY AG: Fitch Affirms Then Withdraws BB- Long-Term IDR


U K R A I N E

KYIV CITY: Fitch Affirms B- Long-Term IDR, Outlook Stable


U N I T E D   K I N G D O M

ASSURED GUARANTY: S&P Puts Seven Issue Ratings on Watch Positive
GLOBAL SHIP: S&P Affirms 'B' Corp Credit Rating, Outlook Stable
HIGHLANDS INSURANCE: October 16 Scheme Creditors Meeting Set
MONARCH AIRLINES: Unite to Launch Legal Action Over Loss of Jobs
MONARCH AIRLINES: Most Customers Won't Get Automatic Refund

NMG HOLDCO: S&P Assigns 'B' Corp Credit Rating, Outlook Stable
TOGETHER ASSET 1: Moody's Assigns B2 Rating to Class E Notes


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B E L G I U M
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SOLVAY FINANCE: Fitch Affirms BB+ Sub. Hybrid Bond Ratings
----------------------------------------------------------
Fitch Ratings has revised the Outlook on Solvay SA's Long-Term
Issuer Default Rating (IDR) to Positive from Stable and affirmed
the IDR at 'BBB'.

The revision of the Outlook reflects Solvay's strengthened
business profile compared with peers, which is supported by its
focus on price-resilient specialty chemicals. These account for
over 70% of the company's cash flows.

The Positive Outlook also takes into account forecast
deleveraging, with funds from operation (FFO) net adjusted
leverage moving below 2.5x by 2018 from 3.3x at end-2016. This is
driven by strong volume growth and cost efficiencies across all
business units driving strong EBITDA growth over the rating
horizon, slightly reduced capex of around EUR100 million in 2017,
and proceeds received from the sale of Acetow of around EUR1
billion in 2017.

Fitch expects that the proceeds from the recently announced
divestment of the polyamide business to BASF (A+/Stable) for
around EUR1.1 billion of cash in 2018 are likely to be used to
de-lever. Should the company decide to return any proceeds to
shareholders or carry out a further acquisition resulting in
leverage remaining above 2.5x from 2018 then we may revise the
Outlook to Stable.

KEY RATING DRIVERS

Divestments, Performance Drive Deleveraging: Solvay has announced
that it is selling its polyamide business within its functional
polymers division to BASF for EUR1.1 billion cash proceeds and
EUR0.2 billion debt write-off. Solvay's market position and
margins are worse within polyamides compared with its other
product offerings across the business. This suggests the
divestment will overall enhance margins, which along with the
company's intention to use the proceeds to de-lever is likely to
overall improve leverage.

Fitch forecasts Solvay's FFO net adjusted leverage to decrease to
below 2.5x in FY18 following the closure of the polyamide
divestment, which Fitch presumes will be used to de-lever.
Reduced leverage will also be driven by a strong 2017 performance
reflecting volume growth across all business areas, and proceeds
from the sale of Acetow of around EUR1 billion.

Shift in Direction: The polyamide divestment, as well as recent
divestments in Acetow and its Inovyn joint venture, demonstrate a
shift in direction away from commoditised, high volume businesses
(apart from those where it has a significant cost advantage such
as within soda ash) to those where Solvay's product offering is
more differentiated, has pricing power and is within high growth
markets.

Business Profile Strengthening: Solvay's efforts to increase its
specialty chemicals share in its portfolio culminated in the
Cytec acquisition in 4Q15 and led price-resilient specialty
chemicals to account for over 70% of the company's revenues and
cash flows following the recent divestments in Acetow, Inovyn and
Polyamides. The remaining business is mainly commoditised
chemicals like soda ash and peroxides where Solvay is benefiting
from its cost competitiveness and market leadership. Fitch has
seen Solvay's business profile strengthen and strong end market
diversification continuing, and considers the company's
operational profile to be commensurate with the low 'A' range.

Strong 2017 Performance: 2017 YTD has been very strong for Solvay
due to higher volume demand from end markets. Pricing has also
improved marginally, especially within polyamides. Novecare's oil
and gas business improved volumes over 2017 following challenges
from the low price environment. Polyamide sales have also
increased reflecting higher prices due to higher raw material
costs. The growth engine and cash contributor segments of
Advanced Materials and Performance Chemicals have also performed
well with margins of around 30%. In the medium term we expect
flat pricing across the group, as well as volumes moving at GDP
levels of around 2.3%. The reduction in earnings from divestments
mitigates the positive growth we forecast in the remaining
businesses.

Pensions Weigh on FFO: Recurring cash outflows associated with
material pension liabilities increased in absolute terms and
weigh on Solvay's FFO in a low interest rate environment, with
Fitch assuming cash outflows of around EUR210 million a year.
This is despite the pension deficit contraction towards EUR2.7
billion at end-1H17 from EUR2.9 billion at end-2016 as it remains
sensitive to discount rate variations. In line with Fitch's
methodology, our treatment of these obligations focuses on their
cash impact.

Fitch conservatively incorporates almost EUR140 million of annual
environmental and restructuring provisions to be expensed in line
with Solvay's management expectations of EUR686 million cash
outlays for these provisions within the next five years.

50% Equity Credit for Hybrids: Fitch applies 50% equity credit to
Solvay's outstanding hybrid bonds in accordance with its Non-
Financial Corporates Hybrids Treatment and Notching Criteria. The
notes' rating is two notches below Solvay's 'BBB' Long-Term IDR,
reflecting the notes' higher loss severity and risk of non-
performance relative to senior obligations.

The notes qualify for 50% equity credit as they meet Fitch's
criteria with regard to subordination, permanence, having a
remaining effective maturity no less than five years,
unconstrained discretion to defer coupons, and a lack of events
of default.

DERIVATION SUMMARY

Solvay is strongly positioned against its European chemical peers
Akzo Nobel (BBB+/Rating Watch Negative) and Royal DSM (A-/Stable)
in terms of end-market diversification and operating margins.
Royal DSM benefits from more resilient and stable nutritional
end-markets, whereas Akzo Nobel is exposed to more cyclical and
volatile end markets, such as within construction. However,
Solvay's lower Long-Term IDR is warranted by its higher leverage
levels. Solvay's US peers either have larger scale offset by
higher commodity chemicals exposure (Dow Chemicals, BBB/Rating
Watch Positive) or have stronger margins mitigated by high
leverage (Eastman Chemicals, BBB/Stable).

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Solvay
include:
- Revenues and earnings driven by minor improvements in price,
   and volumes moving with Fitch's GDP assumptions of around 2.3%
   over the rating horizon.
- EBITDAR margin to stabilise around 20% from 2017 onwards due
   to the disposal of lower margin businesses.
- No further cash inflows from closed divestments. EUR1.1
   billion of cash inflows assumed from Polyamide sale in 2018
   which is expected to be used to de-lever.
- Annual pension cash outflows of EUR210 million and annual
   environmental and restructuring cash outflows of EUR140
   million
- Low ratio of capex/sales of around 8%
- 3% dividend increase per annum
- No acquisitions or additional/special returns to shareholders
   assumed
- No restricted cash assumed.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:
FFO adjusted net leverage maintained below 2.5x, and neutral to
positive free cash flow, coupled with an EBITDAR margin sustained
above 15%.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:
Stabilisation of Outlook: The Outlook may be revised to Stable
should broad market pressure, aggressive shareholder
distributions or debt-funded M&A, including from the proceeds
from the Polyamide business, lead to FFO adjusted net leverage
remaining over 2.5x

Downgrade: FFO adjusted net leverage above 3x on a sustained
basis or EBITDAR margin rebased at below 12%.

LIQUIDITY

Liquidity Used For Debt Redemption: As of 1H17 the company's
liquidity was tight with EUR1.2 billion of cash and cash
equivalents and a financial instrument receivable of EUR0.6bn on
the balance sheet covering current financial debt maturities of
around EUR1.8 billion over the next 12 months. Fitch forecasts
liquidity to be supported by strong positive free cash flow over
the next 12 months of EUR450 million. In addition, Solvay's
liquidity is enhanced by EUR2.4 billion of undrawn committed bank
facilities.

Solvay has bought back USD291 million equivalent of two long
dated bonds of up to USD650 million, and has put out a tender
offer for the repurchase of a EUR500 million bond. This may place
a liquidity squeeze on Solvay should repurchases be higher than
expected. Fitch assumes this will be managed by new issuance if
necessary and cash flow generation.

FULL LIST OF RATING ACTIONS

Solvay SA
-- Long-Term IDR affirmed at 'BBB', Outlook revised to Positive
    from Stable
-- Senior unsecured rating affirmed at 'BBB'
-- Short-Term IDR affirmed at 'F3'

Solvay Finance (America), LLC
-- Senior unsecured rating affirmed at 'BBB'

Solvay Finance
-- Subordinated hybrid bond ratings affirmed at 'BB+'

Cytec Industries Inc.
-- Senior unsecured rating on Cytec's USD400 million and USD250
    million notes guaranteed by Solvay affirmed at 'BBB'


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D E N M A R K
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SYDBANK A/S: Moody's Raises Preferred Stock Rating to Ba1(hyb)
--------------------------------------------------------------
Moody's Investors Service has affirmed Sydbank A/S's (Sydbank)
long- and short-term deposit ratings at A3/P-2, its long-term
senior unsecured debt ratings at Baa1 and its short-term program
ratings at (P)P-2. Moody's also changed the outlook on Sydbank's
long-term ratings to positive from stable.

The affirmation is the result of two components of the bank's
credit profile that Moody's says have evolved in opposite
directions, specifically 1) an improvement in the bank's
standalone credit profile, owing to a strengthening in asset
quality and profitability, which has resulted in an upgrade of
the bank's baseline credit assessment (BCA) to baa1 from baa2,
combined with 2) a reduction in the rating uplift that the bank's
long-term ratings have been benefitting from under Moody's
Advanced Loss Given Failure (LGF) framework following a recent
decline in the amount of outstanding "bail-inable" debt issued by
the bank as well as changed assumptions surrounding the amount of
junior depositors.

The positive outlook assigned to the bank's long-term deposits
and senior unsecured debt ratings reflects the agency's
expectations of a high likelihood that the volume of senior
unsecured debt will increase again towards the later part of the
12-18 month rating outlook horizon, while continued economic
growth in Denmark will further support Sydbank's solvency and
liquidity profiles.

Along with the BCA upgrade, Moody's has also upgraded Sydbank's
subordinated debt ratings to Baa2 from Baa3, its junior
subordinated MTN ratings to (P)Baa3 from (P)Ba1, its non-
cumulative preferred stock rating to Ba1(hyb) from Ba2(hyb) as
well as the bank's long-term CR Assessment to A1(cr) from A2(cr).
Sydbank's short-term CR Assessment was affirmed at P-1(cr).

A full list of affected ratings and rating inputs can be found at
the end of this press release.

RATINGS RATIONALE

-- UPGRADE OF SYDBANK'S BASELINE CREDIT ASSESSMENT

The upgrade of Sydbank's BCA reflects the bank's improved asset
quality and sustained profitability despite the low interest rate
environment and a reduction in the bank's capitalization.

Sydbank's problem loans as a percentage of gross loans have
already decreased to 6.1% at end-2016, from 8.0% at the end of
2015 (based on Moody's calculations) and the agency expects the
improving trend to continue into 2018 given the ongoing economic
recovery in Denmark, including in some sectors that have posed
challenges in the recent past, such as agriculture and commercial
real estate. Sydbank stands to benefit more than other Danish
banks from this trend given that 63% of its credit exposure
relates to corporates and small and medium sized entities.

Sydbank's profitability has proven resilient over the last few
years, and even showed signs of strengthening despite the low
interest rate environment. During 2016, Sydbank reported a return
on assets (ROA) of 1.0%, compared with 0.80% in 2015. During
1H17, the improving trend continued, as underpinned by an
annualized ROA of around 1.2%. Going forward, Moody's expect the
bank to continue to report healthy profits, sustained by lower
credit costs, tighter cost control and greater business
diversification, as per its so-called "blue growth" strategy
announced in October 2015.

Moody's assessment also takes into account the expected reduction
in the bank's common equity tier 1 (CET1) ratio to around 13.5%,
which will lead to lower excess capital cushion against the
bank's regulatory minimum capital requirements. During 1H2017,
Sydbank's CET1 ratio declined by around 50 basis points to 15.6%
at end-June 2017, compared with 16.1% in 2016, reflecting the
effects from a new share buyback programme as well as the
repayment of hybrid capital instruments.

REDUCTION IN CUSHION OF DEBT THAT CAN BE BAILED IN IF NEEDED IN
TIMES OF STRESS

The other driver for the affirmation of Sydbank's long-term
senior unsecured and deposit ratings relates to a recent decline
in the amount of debt that could be bailed in by regulators in
the unlikely event of the bank's failure, which in turn reduces
the amount of protection that senior debt holders would benefit
from under a bail in scenario, as calculated under Moody's
Advanced Loss Given Failure (LGF) analysis.

The reduced volume of debt calculated by Moody's is attributable
to the recent repayment of subordinated debt by the bank as well
as changed assumptions regarding the volume of junior depositors
that could be bailed in. The change in assumption reflects
Moody's view that only around 10% of Sydbank's deposits can
actually be considered junior and qualify as bail-in-able under
BRRD, as opposed to the previous assumption of 26%.

For deposits, Moody's LGF analysis indicates a low loss-given-
failure, leading to a one notch rating uplift from the bank's
baa1 Adjusted BCA, from two notches of uplift previously.

For senior unsecured debt, Moody's LGF analysis indicates a
moderate loss-given-failure, leading to a positioning of the
rating in line with the bank's baa1 Adjusted BCA, compared to one
notch of uplift previously.

-- RATIONALE FOR THE POSITIVE OUTLOOK ON DEPOSITS, SENIOR
UNSECURED DEBT RATINGS

The rating agency also changed the outlook to positive from
stable on Sydbank's long-term ratings, due to the expectation of
an increase in the volume of senior unsecured debt towards the
end of the outlook period. In addition, Moody's expects that the
bank's key credit characteristics will remain supported by the
benign domestic operating environment over the next 12 to 18
months.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on Sydbank's ratings could develop from (1)
further improvement in asset-quality metrics, especially in
relation to more volatile segments such as agriculture and
commercial real estate; (2) a further sustained and material
improvement in the group's profitability, without a material
increase in its risk profile; and (3) a strengthening of its
capitalization beyond the rating agency's current expectations.

Downward pressure on Sydbank's ratings could emerge if (1) asset
quality deteriorates from current levels; (2) its risk profile
increases (e.g., as a result of increased exposures to more
volatile assets); and/or (3) the bank's capital ratio or
profitability weakens.

Upward rating momentum for the long-term ratings of Sydbank could
develop as a result of a change in the group's funding structure,
such as the issuance of higher volumes of senior unsecured debt
or subordinated debt that would result in notching uplift under
Moody's LGF framework. Also, a lower-than-expected loss for
junior depositors could result if the percentage of junior
deposits is significantly higher than Moody's assumptions of 10%
of total deposits.

Sydbank's long-term ratings could be downgraded following (1) a
downgrade of the bank's BCA; or (2) a significant decrease in the
bank's bail-inable debt cushions, leading to fewer notches of
rating uplift under Moody's Advanced LGF analysis.

LIST OF AFFECTED RATINGS

Issuer: Sydbank A/S

The following ratings of Sydbank were affirmed:

- Long-term bank deposit ratings at A3, outlook changed to
   positive from stable

- Short-term bank deposit ratings at P-2

- Long-term senior unsecured debt rating at Baa1, outlook
   changed to positive from stable

- Senior Unsecured MTN, at (P)Baa1

- Other Short Term at (P)P-2

- Short-term Counterparty Risk Assessment at P-1(cr)

The following ratings and rating inputs of Sydbank were upgraded:

- Long-term Counterparty Risk Assessment to A1(cr) from A2(cr)

- Baseline Credit Assessment to baa1 from baa2

- Adjusted Baseline Credit Assessment to baa1 from baa2

- Subordinated debt to Baa2 from Baa3

- Subordinate MTN to (P)Baa2 from (P)Baa3

- Junior subordinated MTN ratings to (P)Baa3 from (P)Ba1

- Preferred Stock Non-cumulative to Ba1(hyb) from Ba2(hyb)

Outlook Action:

- Outlook changed to positive from stable

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


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I R E L A N D
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ADAGIO IV: Moody's Assigns (P)Ba2 Rating to Cl. E-R Jr. Notes
-------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
seven classes of notes ("Refinancing Notes") to be issued by
Adagio IV CLO Designated Activity Company:

-- EUR200,500,000 Class A-1R Senior Secured Floating Rate Notes
    due 2029, Assigned (P)Aaa (sf)

-- EUR5,000,000 Class A-2R Senior Secured Fixed Rate Notes due
    2029, Assigned (P)Aaa (sf)

-- EUR39,200,000 Class B-1R Senior Secured Floating Rate Notes
    due 2029, Assigned (P)Aa2 (sf)

-- EUR7,000,000 Class B-2R Senior Secured Fixed Rate Notes due
    2029, Assigned (P)Aa2 (sf)

-- EUR18,000,000 Class C-R Deferrable Mezzanine Floating Rate
    Notes due 2029, Assigned (P)A2 (sf)

-- EUR18,600,000 Class D-R Deferrable Mezzanine Floating Rate
    Notes due 2029, Assigned (P)Baa2 (sf)

-- EUR25,200,000 Class E-R Deferrable Junior Floating Rate Notes
    due 2029, Assigned (P)Ba2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will
endeavour to assign definitive ratings. A definitive rating (if
any) may differ from a provisional rating.

RATINGS RATIONALE

Moody's provisional ratings of the Refinancing Notes address the
expected loss posed to noteholders. The provisional ratings
reflect the risks due to defaults on the underlying portfolio of
assets, the transaction's legal structure, and the
characteristics of the underlying assets.

The Issuer will issue the Refinancing Notes in connection with
the refinancing of the following classes of Original Notes: Class
A-1 Notes, Class A-2 Notes, Class B-1 Notes, Class B-2 Notes,
Class C Notes, Class D Notes and Class E Notes due 15 October
2029 (the "Original Notes"), previously issued on September 8,
2015 (the "Original Closing Date"). On the refinancing date, the
Issuer will use the proceeds from the issuance of the Refinancing
Notes to redeem in full its respective Original Notes. On the
Original Closing Date, the Issuer also issued the Class F Notes
as well as one class of subordinated notes, which will remain
outstanding.

As part of this refinancing, the Issuer will (i) reduce the
percentage of fixed rate obligations to 5% from 7.5%, (ii) reduce
the WAC covenant to 4%, and (iii) extend the weighted average
life by one year. In addition, it will amend the base matrix that
Moody's will take into account for the assignment of the
definitive rating.

Adagio IV is a managed cash flow CLO. The issued notes are
collateralized primarily by broadly syndicated first lien senior
secured corporate loans. At least 90% of the portfolio must
consist of senior secured loans and eligible investments, and up
to 10% of the portfolio may consist of second lien loans and
unsecured loans. The underlying portfolio is 100% ramped as of
the refinancing date.

AXA Investments Managers, Inc (the "Manager") manages the CLO. It
directs the selection, acquisition, and disposition of collateral
on behalf of the Issuer and may engage in trading activity,
including discretionary trading, during the transaction's
reinvestment period. After the reinvestment period, which ends in
October 2019, the Manager may reinvest unscheduled principal
payments and proceeds from sales of credit risk obligations and
credit improved obligations, subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017.

The cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.

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

Target Par Amount: EUR350,000,000

Defaulted par: EUR0

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2750

Weighted Average Spread (WAS): 4.00%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 42.00%

Weighted Average Life (WAL): 6.9 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond ratings of A1 or below. According to the
portfolio constraints, the total exposure to countries with a
local currency country risk bond ceiling ("LCC") below Aa3 shall
not exceed 10%, the total exposure to countries with a LCC below
A3 shall not exceed 5% and the total exposure to countries with
LLC below Baa3 shall not be greater than 0%.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the provisional ratings assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case.

Below is a summary of the impact of an increase in default
probability (expressed in terms of WARF level) on the notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds
to higher expected losses), assuming that all other factors are
held equal.

Percentage Change in WARF -- increase of 15% (from 2750 to 3163)

Rating Impact in Rating Notches:

Refinancing Class A-1 Senior Secured Floating Rate Notes: 0

Refinancing Class A-2 Senior Secured Fixed Rate Notes:0

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

Refinancing Class B-2 Senior Secured Fixed Rate Notes: -1

Refinancing Class C Deferrable Mezzanine Floating Rate Notes: -1

Refinancing Class D Deferrable Mezzanine Floating Rate Notes: -1

Refinancing Class E Deferrable Junior Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 2750 to 3575)

Refinancing Class A-1 Senior Secured Floating Rate Notes: 0

Refinancing Class A-2 Senior Secured Fixed Rate Notes:0

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

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

Refinancing Class C Deferrable Mezzanine Floating Rate Notes: -2

Refinancing Class D Deferrable Mezzanine Floating Rate Notes: -2

Refinancing Class E Deferrable Junior Floating Rate Notes: -1

Further details regarding Moody's analysis of this transaction
may be found in the related new issue report published after the
Original Closing Date in October 2015 and available on
Moodys.com.


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I T A L Y
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GRUPPO WASTE: Unit Files Liquidation Agreement Application
----------------------------------------------------------
Reuters reports that Gruppo Waste Italia SpA said its unit Waste
Italia Holding s.r.l. (WIH) has filed application for admission
of WIH to preliminary liquidation agreement procedure.

As reported by the Troubled Company Reporter-Europe on August 2,
2017, the Waste Italia board gave mandate to the company's chief
executive officer to file for credit protection request with
Milan tribunal as per art. 161, par. 6 of Italy's bankruptcy law.

Gruppo Waste Italia SpA, known as Kinexia SpA, is an Italy-based
company engaged in the development activities in the field of
renewable energy.  Its activities include the design,
construction and operation of plants in the fields of
photovoltaic, wind, biogas and district heating.


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K A Z A K H S T A N
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KAZTRANSGAS JSC: Fitch Corrects September 11 Rating Release
-----------------------------------------------------------
This replaces a rating action commentary published on
September 11, 2017 to correct that the operating lease multiple
used for 2016 debt adjustment was 6x, and not 8x as previously
stated.

Fitch Ratings has upgraded KazTransGas JSC's (KTG) and its fully
owned subsidiaries, Intergas Central Asia JSC's (ICA) and
KazTransGas Aimak JSC's (KTGA), Long-Term Foreign- and Local-
Currency Issuer Default Ratings (IDRs) to 'BBB-' from 'BB+'. The
Outlook is Stable. Fitch has also assigned an expected senior
unsecured 'BBB-(EXP)' rating to KTG's proposed bond issue.

The upgrade of KTG and its subsidiaries follows alignment of its
ratings with those of its parent, JSC National Company
KazMunayGas (NC KMG, BBB-/Stable), based on the evidence of
strong support for KTG in the form of regulated tariff increases,
KTG's greater share in NC KMG's actual and projected funds from
operations (FFO), and financial assistance from the parent. KTG's
ties with NC KMG are underpinned by the former's dominant
position in national gas transportation and distribution and
cross-default provisions, as in NC KMG's Eurobonds. KTG's IDR is
currently one notch below that of Kazakhstan (BBB/Stable).

KTG's proposed bond will be guaranteed by ICA. ICA generated
KZT100 billion of Fitch-calculated EBITDA in 2016, while the
group's total EBITDA was KZT162 billion. Proceeds from the notes
will be used by KTG for debt reduction and general corporate
purposes.

KEY RATING DRIVERS

Ratings Aligned with NC KMG's: Fitch aligns ratings of KTG and
its subsidiaries ICA and KTGA with those of NC KMG, its sole
parent. KTG and its subsidiaries serve an important social
function in Kazakhstan by supplying natural gas to millions of
households and tens of thousands of industrial customers.

The rating alignment reflects an increase in regulated gas
transportation tariffs and regulated gas sales prices in 2017,
which support KTG's earnings following the drop in ICA's gas
transit volumes. We expect that the state and NC KMG will
continue regulating KTG's financial profile such as to allow KTG
to generate significant operating cash flow and maintain moderate
leverage. KTG, ICA and KTGA are ultimately fully state-owned
through NC KMG.

NC KMG's Material Subsidiaries: KTG and ICA qualify as material
subsidiaries in NC KMG's Eurobonds and are subject to the bonds'
cross-default provisions. Strong parent-subsidiary links between
KTG and NC KMG are also supported by KTG's "national operator"'
status, the transfer of trunk gas pipelines from the state to
ICA, NC KMG's flexible approach to KTG's dividends, large low-
interest loans from NC KMG to KTG, and the transfer of NC KMG's
50% stake in KazRosGas LLP for trust management.

NC KMG guarantees 50% of the third-party debt of Beineu-Shymkent
Gas Pipeline LLP (BShP), KTG's 50% owned JV, but it does not
guarantee debt of KTG or its subsidiaries. NC KMG also
participates in negotiations between PJSC Gazprom (BBB-/Stable)
and KTG on the gas transit contracts.

Gas Transmission, Distribution Monopoly: KTG's ratings reflect
the company's near-monopoly position in the Kazakh natural gas
transmission and distribution market. Two other gas
transportation operators in Kazakhstan are Asian Gas Pipeline LLP
(AGP) and BShP, both of which are KTG's 50% owned JVs with China
National Petroleum Corporation (CNPC, A+/Stable). We view their
business as augmenting KTG's own operations. KTG's status as the
national operator in the field of gas supply gives it a pre-
emptive right to purchase natural gas produced from domestic
upstream companies and resell domestically and for export.

Subsidiaries Equalised With KTG: We view legal, operational and
strategic intra-group links between KTG, ICA and KTGA as strong
and hence align the ratings of the two subsidiaries with KTG's
'BBB-'. The evidence of strong linkage includes KTG's financial
guarantees for all of ICA's end-1H17 debt and for two-thirds of
KTGA's end-1H17 debt, operational interdependence and a common
planning and budgeting process between the companies. ICA, the
operator of trunk gas pipelines, generated 62% of the group's
consolidated EBITDA in 2016, while KTGA, the domestic gas
distributor, generated 15%.

Customer/Profitability Concentration Decreases: Historically,
Gazprom has been KTG's principal customer. ICA's tariff of
USD2/mcm per 100 km for Gazprom is fixed until 2020, while
transit volumes are set annually. In 2016 and 1H17, Gazprom
accounted for 71% and 68%, respectively, of KTG's pipeline
transit revenue and about 59% and 56%, of ICA's gas
transportation revenue. The drop in 1H17 was due to the end of
Gazprom orders for Turkmen gas and a decrease in transportation
volumes of Uzbek gas.

KTG has been downsizing its operations following the drop of
Gazprom's central Asian transit volumes, eg mothballing unused
pipeline facilities, staff optimisation and seeking other income
sources. For example, KTG's total headcount decreased by 20%
between end-2014 and June 30, 2017, with 2,700 workers made
redundant. These measures have helped KTG maintain its
profitability at above 30% in 2016.

Regulated Domestic Tariffs: The Kazakhstan Natural Monopolies
Committee (NMC) sets domestic tariffs and gas prices separately
for ICA and KTGA for a number of years, subject to annual
adjustments. Tariffs should cover transportation costs and
provide a certain fixed profit. ICA's regulated domestic gas
transmission tariff was increased 60% yoy in 2017.

On January 1, 2017, ICA's average export tariff increased by 56%,
to USD5, for transportation of 1,000 cubic metres of natural gas
for a distance of 100 km. Export transportation tariffs and gas
sale prices are not regulated by the state and are set between
KTG and its customers, sometimes with the involvement of NC KMG.

Stable Capex Expected: We project KTG to broadly maintain the
annual level of capex at KZT100bn over the medium term, investing
in the expansion of the gas pipeline network and the upgrade of
old pipelines. We do not foresee a significant impact on KTG's
creditworthiness from debt repayment by the BShP or AGP, whose
debt is guaranteed by CNPC and NC KMG with no recourse to KTG.
KTG provided loans to its JV constructing the Beineu-Bozoy-
Shymkent pipeline, as NC KMG in turn provided loans to KTG. Over
2014-2017, BShP received loans from KTG amounting to KZT75
billion. BShP increased its FFO to KZT36 billion in 1H17 from a
negative figure in 1H16 as it ramped up gas delivery volumes.

DERIVATION SUMMARY

KTG is the monopoly in domestic gas transmission and distribution
in Kazakhstan. It is also the dominant player in export gas
transportation and sales. Its business profile is similar to that
of JSC KazTransOil (KTO, BBB-/Stable), although KTO, the Kazakh
state-owned oil pipeline operator, has a smaller market share in
the Kazakh oil transportation market. KTG's operating profile is
also comparable to Kazakhstan Electricity Grid Operating Company
(KEGOC, BBB-/Stable), the Kazakh electricity transmission
monopoly.

KTG's revenue and EBITDA are greater than those of KEGOC and KTO.
On the other hand, KTO has very low leverage while KEGOC's
leverage is comparable to KTG's. KEGOC is rated one notch below
the sovereign, and KTG's ratings are aligned with NC KMG and are
currently one notch below the sovereign as well.

KTG's tariffs and gas sale prices are exposed to the evolving
regulatory environment in Kazakhstan, making its revenues less
predictable than those of its peers in Europe, such as eustream
a.s. (A-/Stable) and NET4GAS, s.r.o. (BBB/Stable) that operate
under the ship-or-pay contracts or Enagas S.A. (A-/Stable) and
REN - Redes Energeticas Nacionais, SGPS, S.A. (BBB/Stable) that
are subject to regulated asset base (RAB) tariffs. Although these
European companies have comparable or higher leverage, their
operating environment is different from KTG's. We assess KTG's
standalone rating to be in the high 'BB' category.

The ratings of KTG, ICA and KTGA are aligned with NC KMG's
ratings due to the overall strong links between them. No country-
ceiling or operating environment aspects impact the rating.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- average exchange rate of KZT315 for 1 US dollar in 2017-2021;
- 4bcm of central Asian gas transit to Russia annually shipped
   by ICA from 2017 onwards;
- average tariffs for domestic gas transportation at 2016 level
   in 2017-2021;
- average domestic gas prices and domestic sales volumes
   increasing in the low single digits annually between 2017 and
   2021;
- export gas prices at roughly USD120/mcm in 2017-2021;
- KZT10 billion of dividends to NC KMG starting from 2018;
- annual capex of KZT100bn in 2017-2021.

RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to positive rating action include:
- positive rating action on NC KMG.

Future developments that may, individually or collectively, lead
to negative rating action include:
- negative rating action on NC KMG;
- evidence of weaker ties between NC KMG and KTG, eg, sustained
   deterioration of KTG's credit profile with FFO adjusted gross
   leverage consistently above 4x.

LIQUIDITY

Sufficient Liquidity, Manageable Maturities: At June 30, 2017,
KTG reported consolidated cash of KZT59 billion plus KZT23
billion in short-term bank deposits. This cash plus Fitch-
calculated FCF of KZT10 billion over the following 12 months is
sufficient to cover short-term debt of KZT41 billion. Even though
KTG has no undrawn committed facilities, it has good access to
Kazakh banks. The proposed Eurobond from KTG should significantly
improve its liquidity and average debt tenor.

Significant Natural FX Hedge: We estimate that possible tenge
appreciation to have a largely neutral impact on KTG's leverage
as lower tenge-denominated FX debt will be largely offset by
lower EBITDA as most of ICA's and KTG's revenues are US dollar-
linked while most costs are tenge-linked. Around 85% of the
group's end-2016 debt and around half of 2016 revenues were
effectively US dollar-denominated, while KTG's operating costs
and capex are denominated in tenge, except for a large share of
natural gas purchases.

FULL LIST OF RATING ACTIONS

KazTransGas JSC
Long-Term Foreign-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Long-Term Local-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Short-Term IDR: upgraded to 'F3' from 'B'
National Long-Term rating: upgraded to 'AA+(kaz)' from 'AA(kaz)',
Outlook Stable
Senior unsecured long-term rating: upgraded to 'BBB-' from 'BB+'
Senior unsecured National long-term rating: upgraded to
'AA+(kaz)' from 'AA(kaz)'
Senior unsecured bond guaranteed by ICA: 'BBB-(EXP)'

Intergas Central Asia JSC
Long-Term Foreign-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Long-Term Local-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Short-Term IDR: upgraded to 'F3' from 'B'
National Long-Term rating: upgraded to 'AA+(kaz)' from 'AA(kaz)',
Outlook Stable
Senior unsecured long-term rating: upgraded to 'BBB-' from 'BB+'
Senior unsecured National long-term rating: upgraded to
'AA+(kaz)' from 'AA(kaz)'

KazTransGas Aimak JSC
Long-Term Foreign-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Long-Term Local-Currency IDR: upgraded to 'BBB-' from 'BB+',
Outlook Stable
Short-Term IDR: upgraded to 'F3' from 'B'
National Long-Term rating: upgraded to 'AA+(kaz)' from 'AA(kaz)',
Outlook Stable
Senior unsecured long-term rating: upgraded to 'BBB-' from 'BB+'
Senior unsecured National long-term rating: upgraded to
'AA+(kaz)' from 'AA(kaz)'


===================
M O N T E N E G R O
===================


MONTENEGRO: Moody's Affirms B1 LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has changed the outlook on Montenegro's
B1 long-term issuer and senior unsecured debt ratings to stable
from negative. Concurrently, Moody's has affirmed these long-term
ratings as well as Montenegro's Not Prime (NP) short-term issuer
rating.

The key drivers for the change in outlook to stable from negative
are:

(1) The government's consolidation measures are likely to
stabilize Montenegro's general government fiscal position.

(2) Large investment projects in transportation, tourism and
energy sectors support Montenegro's medium-term growth outlook.

(3) Progress in EU accession negotiations and Montenegro's NATO
membership strengthen institutions and improve the country's
investment climate.

The affirmation of Montenegro's B1 sovereign ratings reflects its
relatively high wealth compared to similarly rated peers -- set
against the economy's very small size and weak diversity; its EU
accession prospects; its moderate institutional strength; its
debt-funded growth strategy; and its moderate event risk, driven
by banking sector risk and to a lesser extent, the economy's
dependence on foreign funding.

Montenegro's long-term foreign currency bond and deposit ceilings
remain at Ba1 and B2, respectively. The short-term foreign
currency bond and deposit ceilings remain Not Prime.

RATINGS RATIONALE

RATIONALE FOR STABLE OUTLOOK

FIRST DRIVER: CONSOLIDATION MEASURES LIKELY TO STABILIZE FISCAL
POSITION

The first driver for changing the outlook to stable from negative
relates to Moody's greater confidence that the authorities'
fiscal consolidation plans will stabilize and then begin the
reverse the recent deterioration in the government's debt
metrics. Significant fiscal consolidation measures comprising
higher revenue generation and expenditure cuts were adopted in
June 2017, which came on top of measures taken to tackle pension
and public-sector wages towards the end of 2016. The latest
adjustments aim to reduce fiscal risks by rolling back the pro-
cyclical fiscal policy that had eroded the government's fiscal
space in recent years, resulting in a greater than twofold rise
in the debt-to-GDP ratio to 68% in 2016 from 28% in 2008.

In Moody's views, regaining fiscal space is especially important
in Montenegro's case due to the full euro-ization of the economy,
which leaves fiscal policy as its main macro tool. The recent
tightening of the fiscal policy stance and the commitment of the
government to reduce government debt and contingent liabilities
are expected to help stabilize Montenegro's fiscal position.
According to the authorities, the accumulated fiscal
consolidation measures taken together will amount to almost 3% of
GDP between 2017 and 2020, with the largest effect coming in
2018. Together with robust economic growth, Moody's expects the
fiscal deficit to narrow in the coming years and the debt-to-GDP
ratio to start to decline after peaking at around 75% in 2019.

The main risk to the fiscal outlook remains the costs of
constructing the priority section of the Bar-Boljare highway
until its completion in 2019. Highway-related fiscal risks
include possible delays to implementation and the foreign
currency risks associated with the dollar-denominated loan taken
from China in 2014. Additionally, while the authorities hope to
attract private investors to build the remaining legs of the
highway project, Moody's believes that risks persist that the
government would eventually be exposed to some form of risk
sharing to complete the project.

SECOND DRIVER: STRONGER MEDIUM-TERM GROWTH POTENTIAL SUPPORTED BY
LARGE INVESTMENT PROJECTS

The second driver for changing Montenegro's rating outlook to
stable is Moody's expectation that the large public and private
projects currently underway in the transportation, tourism and
energy sectors will strengthen Montenegro's medium-term growth
potential and the economy's resilience to shocks. These
investments are likely to reduce Montenegro's infrastructure
bottlenecks, which have been problematic, as reported also by the
World Economic Forum's Executive Opinion Survey. Moody's expects
potential growth to rise to around 3%, an acceleration from the
average growth rate of 1.7% between 2008 and 2016.

The continued expansion of capacity in the tourism sector to
attract wealthier tourists is supporting an increase in
Montenegro's potential growth. In 2016, 20 new large hotels were
opened out of which 42% were 4- or 5-star hotels. Additionally,
new flight routes are being opened to more Western European
locations, although the capacities of the airports remain a
constraint.

Large energy projects now under construction will both support
investment and Montenegro's export potential. The most important
of these is an undersea power cable connecting Montenegro and
Italy -- a link of the 400 kV Trans-Balkan Electricity Corridor
connecting Serbia, Bosnia and Montenegro to the EU grid -- that
will be completed this year. This project is expected to make
Montenegro an important energy hub in the region, increasing the
country's competitiveness and encouraging investments in new
energy sources, particularly renewables.

THIRD DRIVER: PROGRESS IN EU ACCESSION PLUS NATO MEMBERSHIP
STRENGTHEN INSTITUTIONS

The third driver for stabilizing Montenegro's rating outlook is
the further progress that has been made on strengthening
institutions in the country as the government continues its
determined pursuit of EU accession. While Moody's does not expect
Montenegro to join the EU earlier than 2020, the ongoing success
achieved in bringing the legal and operational framework into
line with EU norms enhances local operating conditions and the
country's attractiveness to foreign direct investment (FDI).

28 out of the 35 total EU negotiation chapters have been opened
and three chapters (chapter 25: science and research, chapter 26:
education and culture and since 20 June chapter 30: external
relations) are provisionally closed. Montenegro is thus a front-
runner in EU accession negotiations compared to peers such as
Serbia (8 chapters opened since 2014) and Albania (no chapters
opened since 2014). In addition, Montenegro benefits from EU
assistance amounting to around 1% of GDP per year under the
Second Instrument for Pre-accession (IPA2) for the period 2014-
2020, which aims to support the implementation of key reforms.

Additionally, Montenegro officially became the 29th NATO member
on June 5, 2017. Both the progress in the EU negotiation process
and NATO membership support the country's investment climate and
mitigate Montenegro's external vulnerability risks, which is
primarily driven by its large current account deficits and the
associated dependence on foreign funding.

RATIONALE FOR AFFIRMATION OF THE B1 RATING

The factors supporting the rating affirmation include
Montenegro's higher wealth and stronger institutions compared to
similarly rated peers. Montenegro's position in the Worldwide
Governance Indicators compares favorably to regional peers:
Montenegro fares better compared to Serbia, Albania, Bosnia and
Herzegovina and Moldova in the key categories, including rule of
law, government effectiveness and control of corruption. Balanced
against these strengths are Montenegro's small scale and limited
economic diversification, the government's relatively high debt-
to-GDP levels and the economy's heavy reliance on foreign
funding.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure on Montenegro's credit profile would emerge
should the planned fiscal consolidation effort place the
government's debt trajectory on a sustainable downward path. Also
positive would be the completion of a majority of the EU's acquis
communautaire, which would support progress towards EU accession.
Equally, a reduction in contingent liabilities, stemming from a
combination of materially lower government guarantees and lower
risks posed by banks and SOEs, would also be credit positive.
Finally, further improvements in external competitiveness gained
from the implementation of FDI-funded projects in the tourism and
renewable energy sectors, as well as a material reduction in
external vulnerability, would support Montenegro's sovereign
credit profile.

Downward pressure on Montenegro's credit profile would develop
should the government's debt metrics and contingent liabilities
continue to deteriorate substantially above Moody's baseline
expectations and/or fail to shift to a downward trajectory,
possibly related to the Bar--Boljare highway project. Other
negative factors would be a weakening of Montenegro's external
position, likely reflecting the failure of efforts to gain
competitiveness and grow tourism and other export-oriented
industries.

GDP per capita (PPP basis, US$): 16,449 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 2.5% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 0.8% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -6% (2016 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -18.9% (2016 Actual) (also known as
External Balance)

External debt/GDP: 166.8% (2016 Actual) (also know as Foreign
Debt)

Level of economic development: Moderate level of economic
resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On Sept. 27, 2017, a rating committee was called to discuss the
rating of the Montenegro, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially increased. The
issuer's institutional strength/framework, have materially
increased. The issuer's governance and/or management, have
materially increased. The issuer's fiscal or financial strength,
including its debt profile, has not materially changed.

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2016.

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


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


CAIRN CLO VIII: Moody's Assigns (P)B2 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Cairn CLO
VIII B.V. (the "Issuer"):

-- EUR214,400,000 Class A Senior Secured Floating Rate Notes due
    2030, Assigned (P)Aaa (sf)

-- EUR27,300,000 Class B-1 Senior Secured Floating Rate Notes
    due 2030, Assigned (P)Aa2 (sf)

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

-- EUR23,900,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)A2 (sf)

-- EUR18,500,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Baa2 (sf)

-- EUR22,300,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Ba2 (sf)

-- EUR9,300,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will endeavor
to assign definitive ratings. A definitive rating (if any) may
differ from a provisional rating.

RATINGS RATIONALE

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

Cairn CLO VIII B.V. is a managed cash flow CLO. At least 90% of
the portfolio must consist of senior secured loans and senior
secured bonds and up to 10% of the portfolio may consist of
unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to Cairn
CLO VIII B.V. to hold bonds if Volcker Rule is changed. The
portfolio is expected to be approximately 70% ramped up as of the
closing date and to be comprised predominantly of corporate loans
to obligors domiciled in Western Europe.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR17.8m of subordinated M-1 notes and EUR17.7m
of subordinated M-2 notes, which will not be rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
August 2017. The cash flow model evaluates all default scenarios
that are then weighted considering the probabilities of the
binomial distribution assumed for the portfolio default rate. In
each default scenario, the corresponding loss for each class of
notes is calculated given the incoming cash flows from the assets
and the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

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

Par amount: EUR350,000,000

Diversity Score: 34

Weighted Average Rating Factor (WARF): 2766

Weighted Average Spread (WAS): 3.70%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.5 years.

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling (LCC) of A1 or below. As per the portfolio constraints,
exposures to countries with a LCC between A1 and A3 cannot exceed
10%. In addition, the obligation is not an obligation of an
obligor or obligors domiciled in a country with a LLC of less
than A3. Given the portfolio concentration limit and eligibility
criteria, it is not possible to have exposures to countries with
a LCC below A3.

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3181 from 2766)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

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

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

Class C Senior Secured Deferrable Floating Rate Notes:-2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes:-1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3596 from 2766)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Further details regarding Moody's analysis of this transaction
may be found in the upcoming pre-sale report, available soon on
Moodys.com.

Methodology Underlying the Rating Action:

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


GLOBAL TIP: S&P Affirms 'B+' Long-Term Corporate Credit Rating
--------------------------------------------------------------
S&P Global Ratings said it has affirmed its 'B+' long-term
corporate credit rating on Netherlands-based trailer services
provider Global TIP Holdings Two B.V. (TIP).

S&P said, "We subsequently withdrew the rating at the issuer's
request. At the time of the withdrawal, the outlook was stable.

"At the time of the withdrawal, our rating on TIP continued to be
constrained by our view of the creditworthiness of its 100%
owner, Chinese conglomerate HNA Group Co. Ltd., which we assessed
at 'b+'.  HNA Group operates in the aviation, infrastructure,
real estate, financial services, tourism, and logistics sectors.
In our view, the group benefits from scale and diversification of
operations. However, we view the group's financial policy as
aggressive in terms of its acquisition strategy and it has high
debt leverage. We do not generally rate a strong subsidiary
higher than its weaker parent because, in our view, the
relatively weaker parent could take assets from the subsidiary or
burden it with liabilities during times of financial stress.

"Our view of TIP's stand-alone credit profile (SACP) of 'bb-' was
supported by good customer diversification and the pan-European
span of its operations, as well as by a degree of predictability
in its cash flows owing to the long-term portion of its operating
lease contracts (about 41% of total revenues), backed by a long-
term lease revenue backlog of about EUR530 million at year-end
2016 (a 41% increase over 2015), which we understand has further
increased over the course of 2017. The company delivers its
services to a wide range of end industries including food,
logistics, mail and package express, and industrial goods
manufacturers which should contribute to some earnings stability.

"Our assessment of TIP's SACP was constrained by its small (but
increasing) size relative to some globally rated peers in the
transportation operating leasing industry. Negative free
operating cash flow, driven by rapid business expansion and
resulting in increased leverage, also weighed on the rating."


HALCYON STRUCTURED 2007-I: Moody's Affirms B1 Cl. E Notes Rating
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the
following notes issued by Halcyon Structured Asset Management
European CLO 2007-I B.V. ("Halcyon SAM European CLO 2007-I
B.V."):

-- EUR36M Class C Notes, Upgraded to Aaa (sf); previously on
    March 27, 2017 Upgraded to Aa2 (sf)

-- EUR37.5M Class D Notes, Upgraded to A3 (sf); previously on
    March 27, 2017 Affirmed Ba1 (sf)

Moody's has also affirmed the ratings on the following notes:

-- EUR51M (Current outstanding balance of EUR28.4M) Class B
    Notes, Affirmed Aaa (sf); previously on March 27, 2017
    Affirmed Aaa (sf)

-- EUR22.5M (Current outstanding balance of EUR13.9M) Class E
    Notes, Affirmed B1 (sf); previously on March 27, 2017
    Downgraded to B1 (sf)

Halcyon SAM European CLO 2007-I B.V., issued in May 2007, is a
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European loans. The portfolio is managed by
Halcyon Loan Investors L.P. The transaction's reinvestment period
ended in July 2013.

RATINGS RATIONALE

The upgrade on the notes is primarily a result of the
deleveraging of the senior notes following amortisation of the
underlying portfolio since the last rating action in March 2017.
On the last interest payment date on July 2017, the Class A2
Notes were fully redeemed and the Class B Notes were paid down by
EUR22.6M or 44.3% of their original balance. As a result of this
deleveraging, the OC ratios have increased for Classes B, C, D
and E Notes. According to the August 2017 trustee report, the OC
ratios of Classes B, C, D and E are 436.0%, 192.4%, 121.5% and
106.9% compared to 223.6%, 153.2%, 115.4% and 105.7% respectively
in January 2017.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having
principal proceeds balance and a performing par of EUR121.4M and
GBP6.6M, defaulted par of EUR5.7M, a weighted average default
probability of 25.5% over a 3.6 year weighted average life
(consistent with a WARF of 3903), a weighted average recovery
rate upon default of 46.8% for a Aaa liability target rating, a
diversity score of 12 and a weighted average spread of 4.1% and
weighted average coupon of 4.4%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analysing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower weighted average recovery rate for the
portfolio. Moody's ran a model in which it reduced the weighted
average recovery rate by 5%; the model generated outputs were
unchanged for Classes B and C and were within one notch of the
base-case results for Classes D and E.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

* Around 14.8% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates. As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit
Estimates in Rated Transactions" published in October 2009 and
available at
http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461.

* Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralisation levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analysed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

* Foreign currency exposure: The deal has exposure to non-
EURdenominated assets. Volatility in foreign exchange rates will
have a direct impact on interest and principal proceeds available
to the transaction, which can affect the expected loss of rated
tranches.

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


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


CAIXA GERAL: Fitch Withdraws BB- Rating on EUR150MM Notes
---------------------------------------------------------
Fitch Ratings has withdrawn the following debt level ratings
because of insufficient information to maintain the ratings on
these issues:

Bayerische Landesbank JPY500 million 7% fixed rate notes, ISIN
XS0119363421, guaranteed: senior unsecured debt rating 'AAA',
withdrawn

Caixa Geral de Depositos, S.A. EUR150 million variable rate
notes, ISIN XS0204758543: senior unsecured debt rating 'BB-',
withdrawn

Commerzbank AG JPY1 billion 3.41% notes, ISIN XS0099345539:
senior unsecured debt rating 'BBB+', withdrawn

Commerzbank AG JPY100 million variable rate notes, ISIN
XS0317342235: senior unsecured debt rating 'BBB+', withdrawn

DZ BANK AG Deutsche Zentral-Genossenschaftsbank EUR35 million
floating rate note, senior unsecured debt rating: 'AA-',
withdrawn

DZ BANK AG Deutsche Zentral-Genossenschaftsbank EUR50 million
floating rate note: senior unsecured debt rating 'AA-', withdrawn

Erste Group Bank AG EUR20 million variable rate callable notes,
ISIN AT0000275813: senior unsecured debt rating 'A-', withdrawn

ING Bank N.V. EUR40 million floating rate notes September 2,
2031: senior unsecured debt rating 'A+', withdrawn

UniCredit S.p.A. USD500 million guaranteed floating rate notes:
senior unsecured debt rating 'BBB', withdrawn

RATING SENSITIVITIES
Not applicable


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


FEDERAL PASSENGER: Fitch Affirms BB+ LT Foreign-Currency IDR
------------------------------------------------------------
Fitch Ratings has revised on the Long-Term Issuer Default Ratings
(IDRs) of the Russian Highways State Company - AVTODOR, Agency
for Housing Mortgage Lending (AHML), Post of Russia, Joint Stock
Company Russian Railways (RZD) and Joint Stock Company Federal
Passenger Company (FPC) to Positive from Stable.

KEY RATING DRIVERS

Fitch uses its PSE rating criteria and views AVTODOR, AHML, Post
of Russia, RZD and FPC as credit-linked to the ratings of their
sponsor, the Russian Federation. AVTODOR, AHML, Post of Russia
and RZD's ratings are equalised with those of the Russian
Federation. FPC's ratings are notched down by one notch from
those of the Russian Federation.

Following the recent Outlook revision on Russia's Long-Term IDRs
(see 'Fitch Revises Russia's Outlook to Positive; Affirms at
'BBB-'' dated September 22, 2017 at www.fitchratings.com) Fitch
has taken similar rating actions on the Long-Term IDRs of these
issuers as they are credit linked to the sovereign's ratings.

The rating drivers of the Long-Term and Short-Term IDRs of the
PSEs are unaffected, leading to their affirmation.

RATING SENSITIVITIES

The ratings of AVTODOR, AHML, Post of Russia, RZD and FPC are
linked with the sovereign's ratings, so any rating action on the
Russian Federation will be mirrored in the ratings of the five
PSEs. Weakening links with the sponsor or decline of state
support as a result of legal status change could also lead to
downgrades.

The rating actions are:

AVTODOR
Long-Term Foreign-Currency IDR: affirmed at 'BBB-'; Outlook
revised to Positive from Stable
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR: affirmed at 'F3'
Senior unsecured debt: affirmed at 'BBB-'

AHML
Long-Term Foreign-Currency IDR: affirmed at 'BBB-'; Outlook
revised to Positive from Stable
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook revised
to Positive from Stable
Short-Term Foreign Currency IDR: affirmed at 'F3'
Senior unsecured debt: affirmed at 'BBB-'

Post of Russia
Long-Term Foreign-Currency IDR: affirmed at 'BBB-'; Outlook
revised to Positive from Stable
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR: affirmed at 'F3'
Senior unsecured debt: affirmed at 'BBB-'

RZD
Long-Term Foreign-Currency IDR: affirmed at 'BBB-'; Outlook
revised to Positive from Stable
Long-Term Local-Currency IDR: affirmed at 'BBB-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR: affirmed at 'F3'
Short-Term Local-Currency IDR: affirmed at 'F3'
Senior unsecured debt: affirmed at 'BBB-'

FPC
Long-Term Foreign-Currency IDR: affirmed at 'BB+'; Outlook
revised to Positive from Stable
Long-Term Local-Currency IDR: affirmed at 'BB+'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR: affirmed at 'B'
Short-Term Local-Currency IDR: affirmed at 'B'
Senior unsecured debt: affirmed at 'BB+'


GAZPROMBANK: Fitch Affirms BB+ IDR, Revises Outlook to Positive
---------------------------------------------------------------
Fitch Ratings has revised the Outlooks to Positive from Stable on
23 Russian financial institutions, comprising four state-related
banks, 10 foreign-owned banks, certain subsidiaries of the state-
related and foreign banks and National Clearing Centre (NCC).
Their Long-Term Issuer Default Ratings (IDRs) have been affirmed.
All other ratings of these entities are unaffected.

The rating actions follows the revision of the Outlook on
Russia's sovereign IDRs to Positive from Stable (see 'Fitch
Revises Russia's Outlook to Positive; Affirms at 'BBB-'', dated
September 22, 2017 at www.fitchratings.com).

KEY RATING DRIVERS

The revision of the Outlooks on the Long-Term IDRs of Sberbank of
Russia (SBR, BBB-), Vnesheconombank (VEB, BBB-), Russian
Agricultural Bank (RusAg, BB+) and Gazprombank (JSC) (GPB, BB+)
reflects the increased likelihood of a strengthening of the
government's ability to provide support.

The revision of the Outlook on NCC's Foreign Currency (FC) IDR
reflects the increased likelihood of an upgrade of Russia's
Country Ceiling of 'BBB-' following the change in the sovereign
Outlook. NCC's FC IDR is driven by the entity's Viability Rating
of 'bbb' and capped by Russia's Country Ceiling.

The revised Outlooks on the Long-Term IDRs of Bank of China
(Russia), China Construction Bank (Russia) Limited, AO Citibank,
Credit Agricole CIB AO, Danske Bank (Russia), HSBC Bank (RR) LLC,
ING Bank (Eurasia) JSC, JSC Nordea Bank, SEB Bank JSC,
DeltaCredit Bank, Rosbank and Rusfinance Bank (all BBB-), reflect
the increased likelihood of an upgrade of Russia's Country
Ceiling of 'BBB-' following the change in the sovereign Outlook.

Russia's Country Ceiling captures transfer and convertibility
risks and limits the extent to which support from the foreign
shareholders of these banks can be factored into their Long-Term
FC IDRs. The banks' Long-Term Local Currency IDRs, where
assigned, also take into account Russian country risks.

The change in Outlooks on the Long-Term IDRs of Sberbank Leasing
(BBB-), Kazakhstan-based Subsidiary Bank Sberbank of Russia JSC
(BB+), Sberbank Europe AG (BB+), Sberbank (Switzerland) AG (BBB-
), Gazprombank (Switzerland) Ltd (BB+) and JSC VEB-Leasing (BBB-)
reflects the possible strengthening of their parents' ability to
support them, if needed. The ratings of these entities reflect
their relative strategic importance to, and integration with,
their parents and the record of support.

The affirmation of the Long-Term IDRs of SBR and VEB at the
sovereign level of 'BBB-', and those of RusAg and GPB at 'BB+'
reflects Fitch's view of a very high propensity of the Russian
authorities to support the banks, in case of need, due to:

(i) majority state ownership (100% of VEB and RusAg is
government-owned; 50%+1 share in SBR is owned by the Central Bank
of Russia (CBR)), or a high degree of state control and
supervision by quasi-sovereign entities (GPB);
(ii) the exceptionally high systemic importance of SBR as
expressed by its dominant market shares, VEB's status as a
development bank, RusAg's important policy role of supporting the
agricultural sector and GPB's high systemic importance for the
banking sector;
(iii) the track record of capital support to VEB, GPB and RusAg;
and
(iv) high reputational risks of a potential default for the
Russian authorities/state-controlled shareholders.

The ratings of GPB and RusAg are one notch lower than those of
SBR and VEB as the banks do not have the exceptional systemic
importance of the former or the development bank status of the
latter. The notching from the sovereign also reflects (i) delays
in provision of significant equity support by the state to RusAg,
and potential remaining capital needs of the bank; and (ii) that
GPB is not directly majority-owned by the state.

The foreign-owned banks' IDRs reflect Fitch's view that their
parents will continue to have a strong propensity to support
these banks given their majority ownership, the high level of
operational and management integration between the banks and
their parents, common branding in most cases and the limited size
of the subsidiaries, making any support manageable.

RATING SENSITIVITIES

The Long-Term IDRs could be upgraded if Russia's sovereign
ratings and Country Ceiling are upgraded. The ratings could be
affirmed at their current levels if the Outlook on Russia's
ratings is revised to Stable without the ratings being upgraded.

A list of the Affected Ratings is available at:

                       http://bit.ly/2yPpEhI


INT'L FUND: Put on Provisional Administration, License Revoked
--------------------------------------------------------------
The Bank of Russia, by virtue of its Order No. OD-2852, dated
October 4, 2017, effective October 4, 2017, revoked the banking
license of Moscow-based credit institution Commercial Bank
International Fund Bank Limited Liability Company, further
referred to as the credit institution, according to the press
service of the Central Bank of Russia.

According to the financial statements, as of September 1, 2017,
the credit institution ranked 327th by assets in the Russian
banking system.

The problems in the credit institution's operations owe their
existence to the extremely risky business model, which led to the
emergence on the credit institution's balance sheet of heavy
debts of entities which appear to conduct no real business
operations.  The credit institution regularly understated the
accepted credit risk and avoided meeting the supervisory
authority's demand to create loss provisions -- through technical
asset transformation.  Currently, the credit institution as such
has ceased its activities, while its financial standing is marked
by extremely low asset quality and the presence of elevated risks
stemming from total loss of control and the management's
unscrupulous action.  Of note is the management's ignorance of
the supervisory authority's demands and its actions suggesting
deliberate bankruptcy.

The Bank of Russia repeatedly applied supervisory measures to the
credit institution, including three impositions of restrictions
on household deposit taking.  The management and owners of the
bank failed to take effective measures to normalise its
activities.  As it stands, the Bank of Russia took the decision
to withdraw the credit institution from the banking services
market.

The Bank of Russia takes this extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)", considering a real threat
to the creditors' and depositors' interests.

The Bank of Russia, by virtue of its Order No. OD-2853, dated
October 4, 2017, appointed a provisional administration to for
the period until the appointment of a receiver pursuant to the
Federal Law "On the Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies have been suspended.

Commercial Bank International Fund Bank is a member of the
deposit insurance system.  The revocation of the banking licence
is an insured event as stipulated by Federal Law No. 177-FZ "On
the Insurance of Household Deposits with Russian Banks" in
respect of the bank's retail deposit obligations, as defined by
law.  The said Federal Law provides for the payment of
indemnities to the bank's depositors, including individual
entrepreneurs, in the amount of 100% of the balance of funds but
no more than a total of RUR1.4 million per depositor.


NORD GOLD: Moody's Raises CFR to Ba2, Outlook Stable
----------------------------------------------------
Moody's Investors Service has upgraded Nord Gold SE's corporate
family rating (CFR) to Ba2 from Ba3, probability of default
rating (PDR) to Ba2-PD from Ba3-PD and senior unsecured rating of
Nord Gold's notes to Ba2 (LGD 4) from Ba3 (LGD 4). The outlook on
these ratings has been changed to stable from positive.

RATINGS RATIONALE

The upgrade of Nord Gold's rating to Ba2 primarily reflects
Moody's expectation that the company will restore its gold output
volume, which temporarily declined in 2016, and increase its
scale of operations through commissioning the Gross mine in 2018.
The rating action also reflects Moody's expectation that Nord
Gold will (1) maintain its leverage sustainably below 2.0x
Moody's-adjusted gross debt/EBITDA over the next 12-18 months,
compared with nearly 2.0x at June 30, 2017 and 1.7x at year-end
2016; (2) reduce gross debt and pursue a balanced financial
policy, with positive free cash flow generation and moderate
dividend payouts; and (3) retain at least adequate liquidity and
address its refinancing needs in a timely fashion.

Nord Gold's Ba2 rating also factors in (1) the company's
operational and geographic diversification, with nine active
mines and one under construction; (2) its reserve base dominated
by open-pit mines; (3) its competitive operating costs and high
Moody's-adjusted EBITDA margin of sustainably above 40%; (4)
Moody's expectation that the company will generate positive free
cash flow on a sustainable basis, although a temporary negative
free cash flow is possible in 2017 as a result of high capital
spending at the Gross project; and (5) the company's track record
of organic growth and good corporate governance.

The rating also takes into account (1) the company's fairly small
scale of operations, with gold production of less than one
million ounces projected for 2017; (2) its exposure to volatility
in gold price and local currencies' exchange rates; (3) the
heightened business, political and event risks in countries where
the company operates, primarily Burkina Faso and Guinea (both
unrated); (4) the company's substantial capital spending
programme and execution risks, which are common for mining
companies; and (5) risks related to the company's concentrated
ownership structure, although mitigated by the track record of
good corporate governance.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that Nord Gold
will (1) maintain its Moody's-adjusted debt/EBITDA below 2.0x;
(2) continue to generate positive free cash flow on a sustainable
basis; (3) maintain healthy liquidity and address the upcoming
maturity of its outstanding $448 million notes due May 2018 in a
timely fashion; and (4) pursue a prudent financial policy.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Moody's does not anticipate any positive pressure on the ratings
to develop over the next 12-24 months, due to the company's
fairly small scale of operations and gold output volume, which
will only moderately increase over this period, and substantial
concentration of operations in geographies with heightened
business risks. In a longer term, positive pressure on the
ratings may build up if the company were to (1) materially
increase the scale of its operations and gold output volume, as
well as reduce its operational concentration in geographies with
heightened business risks; (2) retain its robust financial
metrics; (3) generate sustainable positive free cash flow; (4)
pursue a balanced financial policy, such that its capex and
shareholder distributions do not exert pressure on its leverage;
and (5) maintain healthy liquidity.

Moody's could downgrade the ratings if the company's (1) Moody's-
adjusted gross debt/EBITDA were to exceed 2.5x on a sustained
basis; (2) free cash flow were to be negative on a sustained
basis; or (3) liquidity and liquidity management were to
deteriorate materially. Material deterioration in the company's
operating performance, caused by possible operational disruptions
in geographies with heightened business risks, could also exert
negative pressure on the ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Nord Gold SE is an established pure-play gold producer with nine
producing mines, one large-scale development project, and a broad
portfolio of exploration projects and licences located across
West Africa in Guinea and Burkina Faso, Russia, Kazakhstan,
French Guyana and Canada. In 2016, Nord Gold produced 869 koz of
gold (compared with 950 koz in 2015). For the same period, the
company reported revenue of $1.08 billion ($1.13 billion in 2015)
and EBITDA of $488 million ($520 million in 2015). Alexey
Mordashov controls 98.37% of the company's ordinary shares.


TERRITORIAL GENERATING: Fitch Affirms BB+ IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Public Joint-Stock Company Territorial
Generating Company No. 1 (TGC-1)'s Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB+'. The Outlook is Stable.

The affirmation reflects Fitch's expectations that TGC-1's credit
metrics will remain within our rating guidelines in 2017-2021 on
the back of strong funds from operations (FFO) driven by
increased share of revenue generated under capacity supply
agreements (CSAs), despite high capex and a 50% dividend payout.
The rating also incorporates the company's favourable geography
of operations and a strong market position in electricity and
heat generation in St. Petersburg and border regions in the
north-west of Russia.

The rating also benefits from a single-notch uplift to TGC-1's
standalone 'BB' rating, reflecting links with majority indirect
shareholder, PJSC Gazprom (BBB-/Positive), which indirectly owns
51.79% of the company, through its 100% subsidiary
Gazpromenergoholding LLC (GEH).

KEY RATING DRIVERS

CSAs Drive Financial Profile: We expect TGC-1's financial profile
over 2017-2021 will be mainly driven by capacity payments under
CSAs. In 2015-2016 the company benefited from double-digit growth
in tariffs for new capacities, which resulted in CSA power units
contributing 52% of TGC-1's 2016 EBITDA.

We also expect strong tariff dynamics in 2017-2018 as the new
power units commissioned in 2009-2012 are entering the last four
years of the 10-year payback period for new capacity. The CSA
framework implies a hike in new capacity tariffs in year seven to
10 to provide generators with a return on investments after the
payback period was reduced to 10 from 15 years. We expect EBITDA
decline to accelerate after 2020-2021 as the 10-year payback
period for more than half of power units operating under CSA
expires and these capacities revert to the market terms.

Capex Remains Material:  We estimate annual capex to average
RUB11 billion in 2017-2021, which is well above depreciation as
the company will invest in modernisation of inefficient combined
heating power plants (CHPs) and highly amortised heating grids in
St. Petersburg. This is despite the completion of a mandatory
programme under CSAs, which resulted in 1.6GW of new capacities
(almost a quarter of total installed capacity). However,
according to management, there is some flexibility to capex as it
is mostly uncommitted.

Higher Dividends Expected: We assume a dividend payout ratio of
50% from 2018, in line with Russian state-owned companies and our
expectations for other Gazprom subsidiaries. This will weigh on
TGC-1's financial profile. We expect TGC-1's FFO adjusted net
leverage to increase to an average of 1.8x in 2017-2021 (1.3x in
2016) and FFO fixed charge coverage to remain above 4.0x in the
same period (6.0x in 2016).

Rent Drives Leverage Increase: A substantial part of TGC-1's rent
expenses from 2017 will be represented by payments for two units
at Centralnaya CHP, which were built by MRES LLC (100% subsidiary
of Gazprom) and commissioned in 2016. These rent payments are
expected at around RUB2.4 billion per year (excluding VAT) over
2017-2019 and RUB1.2 billion in 2020-2021. The funding scheme was
used by the shareholder to ease TGC-1's leverage in 2013-2014,
avoid potential covenant breaches and launch the CHP on time. At
the same time, TGC-1 will receive payments from capacity sales
under CSAs by Centralnaya CHP's new units.

According to the rent payment agreement, these expenses represent
funding costs incurred by MRES LLC for the construction of these
units for TGC-1. We view TGC-1's obligation as debt-like and
capitalise the annual rent payments using 6x multiple typical for
Russia.

Uplift for Parental Support: Fitch views the strategic,
operational and, to a lesser extent, legal ties between TGC-1 and
its parent company GEH and ultimately Gazprom as moderate under
Fitch's Parent and Subsidiary Rating Linkage methodology. The
strength of the ties is supported by TGC-1's integral role in
Gazprom's strategy of vertical integration, and its substantial
share in GEH's operations. Additionally, TGC-1's gas-fired power
plants are fully reliant on Gazprom's gas supplies and may
benefit from extension of payment terms if necessary.

In addition, around 55% of TGC-1's total outstanding debt as at
mid-August 2017 comprised loans from Gazprom and Gazprombank
Joint-Stock Company (BB+/Positive) at low interest rates. Given
TGC-1's solid credit metrics, significant financial support from
the majority shareholder has not been necessary. However, Fitch
would expect financial support to be available if the need arises
as was the case for Public Joint-Stock Company The Second
Generating Company of Wholesale Power Market (OGK-2, BB/Stable)
in 2012.

DERIVATION SUMMARY

TGC-1's ratings incorporate the company's strong market position
in electricity and heat generation in St. Petersburg, the second-
wealthiest Russian city, and border regions in the north-west of
Russia although it operates on a smaller scale and is less
geographically diversified than PJSC Inter RAO (BBB-/Stable) and
PJSC RusHydro (BB+/Stable). TGC-1's cash flow generation is
supported by a significant share of EBITDA generated under CSAs
with favourable economics and exposure to low-cost HPPs, which
produce around half of the company's electricity volumes.

In comparison to other Gazprom's subsidiaries, TGC-1 has a
stronger financial profile than OGK-2, but weaker than PJSC
Mosenergo (BBB-/Stable). All Russian generation companies
currently rated by Fitch, except for Enel Russia PJSC
(BB+/Stable), incorporate a one notch uplift for parental
support.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- Domestic GDP growth of 1.6% in 2017 and 2-2.2% in 2018-2021
   and inflation of 4.4% in 2017 and 4.5% in 2018-2021;
- Net power output marginal growth at CAGR of below 1% over
   2017-2021;
- Gas tariffs indexation below 3% over 2017-2021;
- Non-regulated electricity prices growth slightly below gas
   prices increase over 2017-2021;
- Regulated electricity tariffs to increase below inflation;
- Dividends at 50% of net income under IFRS starting from 2018,
   which is higher than is set by the company's current dividend
   policy of 35%;
- Capex in line with management expectations; and
- Additional rent payments related to Centralnaya CHP
   construction on average RUB2.4 billion over 2017-2019 and
   RUB1.2 billion over 2020-2021, which are viewed as debt-like
   and capitalised at 6x.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Moderation in capex and dividend or higher-than-expected
   growth in electricity and heat tariffs in comparison with
   domestic gas prices increase resulting in improvement of the
   financial profile (e.g. FFO adjusted net leverage below 1.5x
   and FFO fixed charge cover above 4x on a sustained basis).
- Stronger parental support.
- Increased predictability of the regulatory framework for
   utilities in Russia.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Weaker-than-expected power prices, significant rise in fuel
   prices or more ambitious capex programme resulting in
   deterioration of the financial profile (eg FFO adjusted net
   leverage above 3x and FFO fixed charge cover well below 3x on
   a sustained basis).
- Evidence of weaker parent links, which may result in a removal
   of the one-notch uplift to TGC-1's standalone rating.
- Deterioration of the regulatory and operational environment in
   Russia.

LIQUIDITY

Adequate Liquidity: After the maturity extension of the RUB6.9
billion loan from Gazprom until 2022 we view TGC-1's liquidity
position as solid and adequate. As of August 15, 2017 cash
balances of around RUB3 billion along with uncommitted credit
lines of about RUB35 billion, mostly from major Russian banks,
were sufficient to cover debt due in 2017-2018 of RUB2.7 billion.
The company does not pay commitment fees under unused credit
facilities, which is a common practice in Russia. We expect free
cash flow (FCF) in 2017-2018 to be slightly positive.

Limited FX Exposure: Euro-denominated debt was around 4% (RUB0.8
billion) of total debt as of August 15, 2017. This exposure is
naturally hedged by the revenue stream from electricity export
operations to Scandinavian countries (around RUB1.2 billion in
2016). Additionally, TGC-1 holds a certain portion of its cash in
EUR. Consequently, we view FX risk as small.

FULL LIST OF RATING ACTIONS

Long-Term Foreign and Local Currency IDRs: affirmed at 'BB+',
Stable Outlook
Short-Term Foreign and Local Currency IDRs: affirmed at 'B'
Local currency senior unsecured rating: affirmed at 'BB+'


TRANSCONTAINER PJSC: Fitch Affirms BB+ LT IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Russia-based transportation company
PJSC TransContainer (TC)'s Long-Term Issuer Default Rating (IDR)
at 'BB+' with Stable Outlook.

The affirmation reflects Fitch's view that TC will maintain
healthy credit metrics in the medium-term despite significant
increase in capex.

TC's 'BB+' rating incorporates a single-notch uplift for implied
parental support from the company's ultimate key shareholder JSC
Russian Railways (RZD, BBB-/Stable). TC's standalone 'BB' rating
reflects the company's strong domestic market share of 47% of
total rail container transportation in Russia in 2016, moderate
leverage and diversification in cargoes and customers as well as
smaller scale relative to rolling stock peers.

KEY RATING DRIVERS

One-notch Uplift
TC's ratings continue to incorporate a one-notch uplift for
implied parental support to the company's 'BB' standalone rating
as we assess the ties between TC and its ultimate key shareholder
RZD (through United Transportation and Logistics Company (UTLC)),
as moderate. RZD has reiterated on several occasions that inter-
modal container shipments are part of its core growth plans,
implying support -- tangible and intangible -- for TC, if needed.
RZD owns 99.84% in UTLC, which in turn holds 50% + 2 shares in
TC, resulting in RZD's stake being equal to 49.92% + 2 shares in
TC.

Improved Market Fundamentals
Rail container transportation volumes reached a record high of
3.3 million 20-foot equivalent units (TEU) in 2016, a 10% yoy
increase after an almost 8% yoy drop in 2015. The recovery in
rail container transportation was driven by increased volumes
across all routes, but mainly within Russia. The growth in
volumes has continued so far in 2017, with an increase of 19.8%
yoy in 1H17. Despite this, we expect more conservative growth to
average around high-single-digits over 2017-2018, supported by
moderate economic growth, rouble appreciation and improving
consumer spending, as well as the still low level of
containerisation of freight transportation in Russia (about 5% of
total rail containerised cargo) compared with developed
countries.

Strong 1H17 results
TC reported strong 1H17 results. Its revenue and EBITDA reached
RUB31 billion and about RUB5 billion in 1H17, up by about 30% and
60% yoy respectively. This was mainly driven by the increased
revenue-generating volumes of about 23% yoy and the company's
ability to manage costs including empty runs as well as improved
fleet management and optimisation measures. We expect revenue to
increase by about 23% for the whole of 2017 with high single-
digit increases thereafter and gradual improvements in the EBITDA
margin.

Healthy Credit Metrics
We expect TC to generate strong cash flow from operations in the
medium term but free cash flows (FCF) are expected to be negative
on the back of aggressive expansion capex plans for 2017 and
onwards (on average RUB11 billion annually over 2017-2020 vs. on
average RUB3.9 billion per year during 2013-2016). This is driven
by expected growth in Russian rail container transportation and
following a significant reduction in capex during the last
economic downturn in Russia. Nevertheless we expect TC's funds
from operations (FFO) adjusted net leverage to remain moderate at
around 1.5x over 2017-2021. Fitch believes capex remains flexible
and that TC's ability to adjust it in accordance with market
conditions, and hence free cash flow generation, will help the
company maintain a solid credit profile.

Customer and Geography Diversification
TC's standalone profile is supported by the company's leading
domestic position in rail container transportation with about a
47% market share in Russia, its strong presence in key locations
and a solid financial profile. The company maintains a
diversified customer base with the top 10 customers accounting
for about 25% of total revenue and the single biggest customer
accounting for only 5.3% in 2016. TC's focus on integrated
freight forwarding and logistics services resulted in an increase
in the share of this business to over 65% in 2016 from just 33%
in 2012.

DERIVATION SUMMARY

TC's business profile benefits from strong market share in rail
container transportation in Russia and higher diversification in
cargo and customers than Russian rolling stock peers, including
JSC Freight One (BB+/Stable), a leading rolling stock operator in
Russia, and Globaltrans Investment Plc (BB+/Stable). However, TC
operates in a more volatile market and on a smaller scale than
Freight One and Globaltrans. Its financial profile is stronger
than that of Freight One but is somewhat weaker than
Globaltrans'. Both Freight One and Globaltrans are rated on a
standalone basis whereas TC's rating includes a one-notch uplift
for implied parental support.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:
- Russian GDP growth of 1.6% in 2017, 2.2% in 2018, and 2%
   thereafter;
- Inflation of 4.5% over 2017-2021;
- Freight transportation rates to grow below inflation until
   2018;
- Dividend payments of 50% of IFRS net income over 2018-2021;
- Average interest rate for new borrowings of 11%; and
- Average capex of around RUB10 billion annually over 2017-2021.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- A sustained decrease in FFO lease-adjusted net leverage to
   below 1.25x and FFO fixed charge coverage above 4.5x.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- RZD losing its effective control of TC, which would remove the
   single-notch uplift for implied parental support.
- Changes to the financing structure of UTLC, especially if a
   material amount of debt is raised at the holding company
   level, supported mainly by TC's cash flow.
- A sustained rise in FFO lease-adjusted net leverage above 2.5x
   and FFO fixed charge cover consistently below 3x, owing to
   decreases in earnings combined with high capex, dividends or
   M&A.

LIQUIDITY

Adequate Liquidity: We assess TC's liquidity position as
adequate. As of end-1H17 TC's cash and cash equivalents stood at
RUB4.9 billion, which are sufficient to cover the next 12 months
of maturities of RUB2.7 billion. At end-1H17 TC had cash and
deposits in PJSC Bank Otkritie Financial Corporation. According
to the company, they do not have any risk exposure to Bank
Otkritie (including deposits and cash balances) since July 2017.
TC did not have any unused credit facilities at end-1H17. We
expect TC to generate negative FCF over 2017-2019 given the
increased capex plans. The latter is, however, flexible and
subject to market conditions, which will support the company's
liquidity and funding profile.

FULL LIST OF RATING ACTIONS

-- Long-Term Foreign and Local Currency IDRs: affirmed at 'BB+';
    Outlook Stable;
-- Short-Term Foreign and Local Currency IDRs: affirmed at 'B';
-- Local currency senior unsecured rating: affirmed at 'BB+'.



VIM AIRLINES: Future at Risk Over Huge Debt Pile
------------------------------------------------
Alex Lennane at Loadstar reports that after carrying more than
11,000 tonnes of cargo this year, Russia's VIM Airlines looks set
to close, despite asking for government support to allow it to
continue to operate in the face of huge debts.

While there is no confirmation of its total debts, Russian media
are reporting a figure of between EUR49 million and EUR145
million, owed to airports, fuel providers and banks, Loadstar
notes.

According to Loadstar, Rosaviatsiya says VIM owes six banks some
RUR7 billion (EUR100 million).  It is said to owe RUR500 million
(EUR7.2 million) to Domodedovo Airport and is reported to be
unable to buy fuel, Loadstar relates.

The carrier has suspended all flights, with seven other airlines
tasked to bring passengers back, Loadstar recounts.

Aeroflot has agreed step in to help VIM, with one source saying
it would offer EUR27 million, Loadstar relays, citing Reuters.

VIM Airlines is a Russian private air carrier.  According to
Russian aviation authority figures, VIM is the eleventh-largest
Russian airline in cargo.


===========
S W E D E N
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ENIRO AB: Completes Recapitalization Plan, Awaits Final Approval
----------------------------------------------------------------
Eniro AB (publ) on Oct. 4 disclosed that it has completed the
recapitalisation plan and the exchange offers.

The bank consortium and the underwriting consortium have given
their consent to complete the exchange offers, despite that a 95
percent acceptance level was not achieved.  Final approval from
the banks' credit committees are expected no later than today,
October 5, 2017.

Eniro's board of directors has, as communicated in the press
release dated October 3, 2017, decided to complete the exchange
offers at the achieved acceptance level, provided approval is
given by Eniro's banks and the underwriting consortium.

As at September 29 the exchange offers had been accepted by
preference shareholders with a total holding corresponding to
approximately 74.12 percent of all outstanding preference shares
and by holders of convertible loans with a total holding
corresponding to approximately 88.89 percent of the outstanding
nominal value of the convertible loans in Eniro.

The exchange offers were conditional upon the acceptance of the
exchange offers by both preference shareholders who together own
at least 95 percent of all preference shares and holders of
convertible loans who together hold at least 95 percent of the
outstanding nominal amount

"We are very happy that the recapitalisation plan gained support
and can be carried out.  Large efforts have been made by Eniro's
banks as well as the parties in the underwriting consortium in
order for the recapitalisation plan to now be completed. With the
underwriting consortium in place, the coming cash issue is fully
guaranteed.  Eniro is now able to focus completely on its
business", Bjoern Bjoernsson, chairman of the board in Eniro,
comments

Eniro's banks and the underwriting consortium have now given
their consent to complete the exchange offers at the current
acceptance level.  The bank's decision to complete the exchange
offers is contingent on approval in the bank's credit committees.
Such approval is expected no later than Thursday October 5, 2017

Consequently, Eniro's recapitalisation plan will be carried out.
The next step in this plan is a cash issue of class A ordinary
shares of approximately SEK275 million with preferential rights
for primarily the holders of existing class A ordinary shares
(excluding holders of paid subscribed shares (BTA) received in
the exchange offers).  Ordinary shares not subscribed for with
the support of subscription rights will be offered to other
ordinary shareholders in Eniro as well as others who have
submitted interest to subscribe for shares in the cash issue.
This share issue is fully guaranteed by the underwriting
consortium and entails that the favourable terms negotiated
between the consortium and Eniro's banks[1] will enter into
force.

For the remainder of the recapitalsation plan:

Preliminary time table

October 9 - December 6, 2017
Trading in the paid subscribed shares from the exchange offers

October 23, 2017
Announcement of terms in the cash issue

October 26, 2017
Publication of prospectus regarding the cash issue

October 27, 2017
Record date for participation in the cash issue

November 1 - November 15, 2017
Subscription period in the cash issue

On or about December 6, 2017[2]
Conversion of paid subscribed shares from the exchange offers to
ordinary class A shares

Erneholm Haskel is financial advisor to Eniro regarding the
recapitalisation plans, together with the legal advisors Nord
Advokater and Ramberg Advokater.  Pareto Securities is Sole
Manager and Gernandt & Danielsson Advokatbyra is legal advisor to
Eniro in relation to the exchange offers. Roschier Advokatbyra is
legal advisor to Pareto Securities.

On Oct. 3, Eniro said in a press release that it if consent was
not given for the exchange offers, it would apply for a company
reorganization at the district court.

Eniro -- http://www.enirogroup.com-- is a search company for
individuals and businesses with operations in Sweden, Norway,
Denmark, Finland and Poland. The company specializes in local
search and Eniro's content is available through internet and
mobile services, printed directories, directory assistance and
SMS services.


UNILABS HOLDING: S&P Affirms 'B' CCR on Debt Issuance Plans
-----------------------------------------------------------
S&P Global Ratings said it has affirmed its 'B' long-term
corporate credit rating on Unilabs Holding AB (Unilabs). The
outlook is stable.

Sweden-based diagnostic lab operator Unilabs Holding AB (Unilabs)
intends to issue incremental debt totaling EUR270 million to fund
recent acquisitions, including Portugal-based Base Holdings and
repay its drawn revolving credit facility. These bolt-on
acquisitions are expected to contribute accretive earnings while
also enhancing the group's geographic diversity and exposure to
specialty testing volumes.

S&P said, "At the same time, we affirmed our 'B' issue rating on
the EUR1,080 million term loan B due 2024 (including the proposed
EUR140 million add-on) and the upsized EUR200 million revolving
credit facility (RCF) with a recovery rating of '3', reflecting
our expectation of meaningful (50%-70%; rounded estimate 55%)
recovery in the event of a payment default.

"We are also affirming our 'CCC+' issue rating on the EUR380
million senior notes (including the proposed EUR130 million tap)
due 2025 with a recovery rating of '6', reflecting our
expectation of negligible (0%-10%) recovery in the event of a
payment default."

The affirmation follows Unilabs' plans to issue an incremental
amount of EUR140 million on its existing senior secured term loan
B facility and tap the senior notes by up to EUR130 million. The
group intends to repay the drawn RCF with the proceeds, as well
as complete the acquisition of a number of targets including
Blufstein, CGC Genetics, and Base Holdings. S&P understands the
debt indenture will remain unchanged, with the margin on the term
loan and senior notes priced at 3.0% plus EURIBOR and 5.75%,
respectively, and mature in 2024 and 2025. The RCF will also be
increased by EUR25 million while the owners will invest new
equity instruments totaling EUR10 million to help fund the
transaction.

Unilabs is a European diagnostics company providing clinical
testing and medical diagnostic imaging services to its clients
with a broad geographic footprint in Europe. The group generated
revenues of EUR679.6 million in 2016 (2015: EUR672.6 million) and
is majority-owned by private equity group Apax Partners.

Base Holdings provides diagnostic services to customers in
clinical analysis, radiology, and cardiology and recorded
revenues of close to EUR80 million in 2016. S&P said, "We expect
this acquisition to give Unilabs increased scale and geographic
presence in the fragmented Portuguese market while improving the
existing imaging diagnostic platform, driving organic growth and
operational synergies. We expect Portugal to account for
approximately 15% of the combined pro-forma group EBITDA
generation, which will reduce Unilabs' dependency on the Swiss,
French, and Swedish markets. Specialty testing volumes should
also increase following the acquisition of CGC Genetics, which is
also based in Portugal. The company specializes in clinical and
medical genetic tests in areas including cytogenetics, molecular
diagnostics, and pathology. We expect this acquisition to be
complementary and further strengthen the group's profitability
metrics given the unique and advanced nature of these tests. We
expect fiscal budgets in Europe, however, to continue to be under
pressure, which creates challenging market conditions and
increased competitive rivalry. We view the players with a focus
on cost-management and geographic diversity in earnings
generation as better able to mitigate any adverse movements in
regulation or contract tariffs in the long-term.

"Our fair business risk profile assessment for Unilabs reflects
the group's continued focus on productivity and operating
efficiency and strong positions in its core markets, which
include Switzerland, France, Sweden, and Norway. We expect the
group to achieve EBITDA margins of around 20%-22% with a
continued focus on operational excellence and cash conversion.
The group continues to expand through accretive acquisitions,
however is still smaller than some other major industry players
such as Synlab. We also note that the proportion of testing
volumes originating from Unilabs' specialty tests is lower from
some peers, which often enjoy higher profit margins per test. The
majority of the group's markets remain fragmented, which presents
an opportunity for consolidation. However, competitive rivalry
and the systemic exposure to political vagary in respective
markets remains a risk to Unilabs achieving earnings growth.

"Our highly leveraged financial risk profile assessment reflects
Unilabs' financial sponsor ownership. This is supported by our
core adjusted credit metrics of debt to EBITA of 11.5x-13.5x and
funds from operations (FFO)-to-debt of less than 3% in our
forecasts. Our estimates of debt include the increased EUR1,080
million term loan B facility; EUR380 million senior notes;
approximately EUR925 million of cumulative preference shares and
shareholder loans; and close to EUR115 million of operating lease
and pension obligations in our calculations. Given the financial
sponsor ownership, we do not net-off any cash balances that are
held by Unilabs. Although we view the preference shares and
shareholder loans as debt-like, we recognize their cash-
preserving function. Excluding these debt-like instruments,
Unilabs' financial risk profile would remain in line with a
highly leveraged assessment, with debt to EBITDA of more than
8.0x by Dec. 31, 2017 and remaining at 6.5x-7.5x for the next two
years.

In S&P's base case, it assume:

-- Revenues will increase by about 20%-22% in 2017, reflecting
    the recent Alpha acquisitions, and 15%-20% in 2018,
    reflecting the full-year contribution from the bolt-on
    acquisitions including Base Holding. S&P expects this
    acquisitive growth to be augmented by some organic growth in
    the existing business with increased contract wins,
    particularly in the Imaging segment.

-- Unilabs' continued focus on operating efficiency and
    increasing exposure to specialty volumes will support steady
    improvement in reported profitability metrics with management
    methodically mitigating execution risks linked these
    acquisitions.

-- Annual capital expenditure (capex) is likely to be about
    EUR45 million-EUR55 million annually over the next two years.

-- S&P expects annual acquisitions will not exceed EUR60
    million.

-- No dividend payments.

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

-- Revenues of EUR815 million-EUR835 million in 2017, rising to
    above EUR955 million-EUR975 million in 2018.

-- Stable operating performance resulting in adjusted EBITDA
    margins of 20%-23% in 2017 and 2018.

-- Adjusted debt to EBITDA of above 13.0x in 2017 falling to
    11.5x-12.5x in 2018.

-- FFO cash interest coverage above 3.0x in 2017 and 2018.

-- Adjusted fixed-charge coverage of 2.0x-2.2x in 2017 and 2018.

S&P said, "We understand that there will be a springing leverage
covenant linked to the RCF that will test net senior secured
leverage once 40% of the facility is drawn. We do not forecast
any drawings to this level and, as such, there should be no
breaches. We therefore expect headroom of above 15%.

"The stable outlook reflects S&P Global Ratings' view that
Unilabs' strengthening market positions, increasing scale, and
operating model should enable the group to sustain operating
performance and cash flow generation, despite pressure on
reimbursement tariffs across the industry. In our opinion,
Unilabs should maintain an adjusted fixed charge coverage ratio
of more than 1.5x over the next 12-18 months, enabling it to
comfortably cover its interest payments and rents while
generating modest free operating cash flow (FOCF) above EUR30
million.

"We could consider lowering the ratings if Unilabs failed to
generate positive FOCF or suffered from liquidity or covenant
issues. We could also lower our rating if the group's fixed
charge coverage fell below 1.5x. This would likely be the result
of deteriorating earnings generation and pressure on operating
margins due to an inability to profitably integrate acquired
operations, or material volume attrition under existing
contractual arrangements with customers.

"We would likely take a positive rating action if Unilabs'
adjusted leverage were to fall substantially toward 5.0x thus
reducing the group's long-term refinancing risk. This would also
be supported by adjusted fixed-charge coverage sustainably rising
above 2.2x, from the 2.0x-2.2x currently anticipated by our base-
case scenario. Ratings upside would also be conditional on rising
FOCF generation and the group prioritizing debt reduction. The
most likely operating trigger for such developments would be an
accelerated return on the ongoing investment program, which could
boost the productivity and profitability of the group's
laboratory network, while it continues to increase sales
volumes."


=====================
S W I T Z E R L A N D
=====================


DUFRY AG: Fitch Affirms Then Withdraws BB- Long-Term IDR
---------------------------------------------------------
Fitch Ratings has affirmed Swiss retail group Dufry AG's Long-
Term Issuer Default Rating (IDR) at 'BB-' with Stable Outlook and
Dufry Finance SCA's senior notes at 'BB-' and simultaneously
withdrawn the ratings.

The affirmation reflects Dufry's stable trading performance in
line with Fitch's expectations of strengthening cash flows, which
would allow deleveraging towards 5.0x on funds from operations
(FFO)-adjusted gross leverage basis.

Fitch has chosen to withdraw the ratings for commercial reasons.
Accordingly, Fitch will no longer provide ratings or analytical
coverage of the issuer and its financing instruments.

KEY RATING DRIVERS

Accelerating Organic Growth: Fitch projects low single-digit
organic growth for Dufry's operations, supported by the
implementation of the business operating model (BOM) to stimulate
sales and operating margins. The company's plan to explore the
benefits of digitalisation, which has become indispensable in
traditional retail and under-utilised in travel retail, as well
as the active management of customer data will help mobilise
incremental sales. Realisation of additional synergies of CHF20
million through streamlining of certain corporate functions and
business processes would add up to 50bp to the EBITDA margin in
the medium term.

Supportive Macro-Economic Environment: A generally stable macro-
economic environment with strong performance in the developed
markets in combination with improving consumer confidence in the
emerging markets along with stabilisation of the national
currencies, particularly in Latin America and Russia, should
provide additional impetus for growth. The lift of travel ban for
Russian tourists going to Turkey has reversed the regional
performance to positive in 2H16, supporting our expectations of a
strong 2017 trading performance.

Focus on Execution: The Stable Outlook reflects the evidence of
adequate execution skills of Dufry's management and their
adherence to stated financial policies. The disciplined
integration of two transformational acquisitions, with fully
realised synergies, provides confidence in the timely
implementation of operational improvement measures contained in
the BOM. An early redemption of the USD500 million senior notes
in December 2016 signals Dufry's commitment to the internal
leverage target of 3.0x. An inability to improve operating
performance by end-2018 as planned, coupled with stalling
deleveraging, would put ratings under pressure.

Leverage Still Stretched: Projected FFO-adjusted gross leverage
of 5.9x at end-2017 remains an outlier for an IDR of 'BB-', but
is in line with a lower non-investment grade for the retail
sector. In the absence of contractual debt amortisation,
deleveraging relies solely on Dufry's ability to continuously
improve sales and operating margins. Through the implementation
of sales- and profitability-strengthening initiatives outlined in
the BOM, we project FFO-adjusted gross leverage will reduce
towards 5.0x by 2020, and become more comfortable for the rating.
For the purpose of FFO-adjusted leverage calculation, Fitch
capitalises only the minimum guarantee payments under the
concession contracts estimated at 5% of sales multiplied by 8.

Modified FFO Fixed-Charge Cover Ratio: In line with the change to
the calculation of the FFO fixed-charge cover introduced by Fitch
in 2016, the agency continues to capitalise the entire amount of
concession fees. The resulting ratio of 1.3x is materially below
peers' in the 'BB' rating category for the sector. However, we
consider the ratio of 1.3x in the context of largely flexible
concession fees, linked to Dufry's underlying operating
performance, which does not imply constrained financial
flexibility for the company. On the contrary we expect greater
resilience of the cover ratio through the economic cycle as both
sales and concession fees would decline, albeit not in parallel.
Due to its expected stability through the cycle, the modified FFO
fixed-charge cover levels have no impact on the ratings.

Further Acquisitions Likely: Fitch views bolt-on acquisitions as
part of Dufry's business development strategy. We have therefore
included in our rating case an annual acquisition budget of
CHF200 million starting in 2018, after Dufry has fully absorbed
the transformational acquisitions of recent years. Larger
acquisitions would be considered as event risk.

DERIVATION SUMMARY

The 'BB-' IDR of Dufry reflects a low investment-grade business
risk profile, as evident in its scale, the quality of its
concession portfolio and strong cash flow generation, but which
is constrained by high indebtedness that is more in line with the
'B' rating category. Similarly to traditional retailers, Dufry is
exposed to changes in consumer confidence, or volume risk,
expressed in the number of travellers, while carrying little
price risk as the company benefits from the captive and generally
more affluent air travel audience. At the same time, travel
retailers tend to be more cyclical and seasonal than conventional
general retailers. The uniqueness of Dufry's operations is the
largely flexible cost of the company's concessions, linked to
certain operating performance parameters such as sales. Such
flexibility allows the company to maintain an FFO fixed charge
cover ratio at around 1.3x, without compromising its financial
flexibility.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Dufry include:
- Annual organic growth of 3%-4% until 2020;
- EBITDA margin gradually improving towards 13% in the medium
   term;
- Capex at 3.5% of sales, in line with management guidance;
- Common dividends assumed at CHF100 million-CHF200 million per
   annum based on the results of 2018 when we project Dufry will
   approach its net leverage target of 3.0x;
- Minority dividends of 5% of EBITDA;
- Net trade working capital rising in line with sales, leading
   to an average cash outflow of CHF20 million p.a.;
- Bank debt maturing in July 2019 assumed to be refinanced at
   maturity on the same terms; and
- Add-on acquisitions of CHF200 million per annum from 2018.

RATING SENSITIVITIES

Not applicable

LIQUIDITY

Comfortable Liquidity, Low Refinancing Risk: Fitch projects
comfortable organic liquidity of CHF300 million to CHF400 million
per annum, leading to average non-restricted cash reserves of
CHF350 million until 2020. According to management guidance, cash
drawdown under the revolving credit facility of CHF372 million at
end-2016 will be reduced to zero during 2017. Restricted cash
reserves have been kept at CHF100 million. In light of ready
access to public debt and equity markets, and investors'
familiarity with Dufry's business model, refinancing risk is
viewed as low by Fitch.


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U K R A I N E
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KYIV CITY: Fitch Affirms B- Long-Term IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the City of Kyiv's Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDRs) at 'B-'. The
agency has also upgraded the city's National Long-Term Rating to
A-(ukr) from 'BBB(ukr)'. The Outlooks are Stable.

KEY RATING DRIVERS

The upgrade of the National Rating reflects the city's
consolidated fiscal performance with a continuous surplus before
debt variation leading to stronger liquidity. The ratings also
factor in a weak institutional framework for subnationals in
Ukraine (B-/Stable), still material contingent liabilities and
unsettled liabilities on the non-restructured part of Kyiv's
eurobond.

Fitch projects Kyiv's budgetary performance will stabilise over
the medium term with an operating balance moderately declining to
25% of operating revenue after an exceptionally high almost 40%
result in 2016. During 1H17, the city recorded a UAH5.6 billion
surplus driven by fast tax revenue growth and much slower
expenditure dynamic due to capex concentration in 2H17. We expect
expenditure acceleration until year-end and forecast a full year
surplus of about UAH2 billion or 5% of total revenue, down from
an exceptionally high surplus of UAH3.7 billion (11.6%) in 2015
and UAH5.1 billion (13.2%) in 2016.

The surplus before debt variation could narrow to zero in 2018-
2019 due to expenditure acceleration and lower revenue growth.
High fiscal surpluses in 2015-2016 were achieved amid a high
inflation environment and supported by new revenue sources
allocated to the city, leading to a rapid increase of tax
proceeds that outrun the indexation of major expenditure items.

Following material fiscal surpluses over the last three years
Kyiv's direct risk has been gradually declining to moderate 32%
of current revenue in 2016 from peak of 67% in 2014. However, the
debt is fully USD-denominated exposing the city to FX risk. As of
mid-2017, direct risk consisted of USD351.1 million obligations
to Ukraine's Ministry of Finance (MoF), and USD101.15 million of
the non-restructured part of Kyiv's USD250 million eurobond.
Fitch assesses the prospects of non-restructured debt settlement
as vague over the medium term, given the slow pace of Kyiv's
negotiations with bondholders and the moratorium that was imposed
by central government. Fitch will monitor the pace of Kyiv's
negotiation with bondholders.

Liabilities to the MoF arose as a result of the exchange of
Kyiv's USD550 million eurobonds into Ukraine sovereign debt in
December 2015. According to the terms of debt exchange the city
compensates the state budget with the coupon payment related to
this debt servicing and should repay the principal in two equal
instalments in 2019 and 2020. This exposes the city to
refinancing needs of USD351.1 million (UAH9.2 billion at end-
3Q17). However, part of this debt will be offset according to
recent Ukrainian government decision. In particular the
liabilities will be reduced by UAH1.9 billion (equivalence to
Kyiv's repayment of domestic bonds series G in November 2016),
and by the amount of Kyiv's capex on bridge construction (about
UAH1.1 billion in 2017). Fitch expects the city will continue
negotiations with the central government on restructuring the
remaining part.

Kyiv's contingent risk remains material. The city has issued
several guarantees totaling about UAH2 billion as of mid-2017 to
support projects in public transportation, infrastructure and
energy saving. Most of the guaranteed loans are euro-denominated
and relate to two city-owned companies, Kyivpastrans and
Kyivmetropoliten. The guarantees expire in 2018-2021.

Kyiv benefits from its capital status and remains one of the
wealthiest cities in the country, historically accounting for
more than 20% of the country's GDP. Nevertheless, Ukraine's
wealth metrics remain weak by international standards. Ukraine's
economy demonstrated mild restoration in 2016 and Fitch estimates
Ukraine's GDP grew 2.2% yoy in 2016 (2015: 9.9% contraction) and
expects 2.0%-3.0% growth in 2017-2018.

The weak institutional framework governing Ukrainian local and
regional governments (LRGs) remains a constraint on the city's
ratings. The framework is characterised by long-lasting political
instability and a challenging reform agenda implied by Ukraine's
IMF programme. This resulted in frequent changes in the
allocation of revenue sources and the assignment of expenditure
responsibilities, which hinder the predictability of LRGs' fiscal
policy and its planning horizon remains short.

CRITERIA VARIATION

Fitch has adjusted the application of its International Local and
Regional Governments Rating Criteria - Outside the United States
to address the specific situation where a small minority of
bondholders ("hold-outs") do not participate in the exchange.
Fitch believes the existence of these hold-outs should not
prevent it from considering the exchange completed, since the
issuer (and more broadly, the national government, which piloted
the exchange) achieved the expected result, with a vast majority
of bondholders participating and normalised relations with the
international financial community despite outstanding non-
performing securities.

RATING SENSITIVITIES

The city's ratings are constrained by the sovereign IDRs and
could be positively affected by a sovereign upgrade, providing
the city maintains its current sound fiscal performance.

Negative rating action on Ukraine would be mirrored by the city's
ratings. A material increase of the city's indebtedness, combined
with deterioration of its financial flexibility would lead to
downgrade.


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


ASSURED GUARANTY: S&P Puts Seven Issue Ratings on Watch Positive
----------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with positive
implications its long-term issue ratings on:

-- GBP700 million notes due between 03/31/2028 and 03/31/2031
    and GBP100 million series 3 notes due 03/31/2057 issued by
    Dwr Cymru (Financing) Ltd.

-- GBP250 million series 2002 notes due 07/30/2022; GBP60
    million series 2002 notes due 07/30/2032; GBP200 million
    class A3 notes due 07/30/2032; and GBP100 million series 25
    notes due 07/19/2057 issued by Anglian Water Services
    Financing PLC.

-- GBP769.075 million series B bonds due 03/31/2040 (including
    GBP731.575 million fixed-rate secured and GBP37.5 million
    rescue variation) issued by Aspire Defence Finance PLC.

The bonds benefit from an unconditional and irrevocable guarantee
of payment of scheduled interest and principal from Assured
Guaranty (London) PLC (AG London; formerly MBIA U.K. Insurance
Ltd.; BB/Watch Pos/--). The issue ratings currently reflect the
respective S&P Underlying Rating (SPUR), which is higher than the
rating on the insurer.

Assured Guaranty Ltd. (AGL) is acquiring the guarantee provider,
AG London. Our rating on AG London is on CreditWatch positive,
indicating that we expect AG London to be integrated into AGL's
affiliated European insurance companies. After the acquisition,
its insured obligations will likely carry the same rating as
those European entities (currently 'AA').

S&P said, "We placed the ratings on the bonds on CreditWatch to
reflect our expectation that after the acquisition, the rating on
the project's monoline insurer will be higher than the SPUR. We
will then raise the issue rating to match the rating on the
monoline insurer.

"The CreditWatch placement corrects an error made as part of the
surveillance process in 2017. A misapplication of our guarantee
criteria resulted in these issue ratings not being placed on
CreditWatch positive when the ratings on AG London were placed on
CreditWatch positive on Jan. 12, 2017."

The CreditWatch placement reflects that an upgrade of AG London
will trigger a similar rating action on the insured bonds.

S&P said, "We aim to resolve the CreditWatch after the resolution
of the CreditWatch on AG London. We expect this will lead us to
raise our long-term ratings on the AG London-insured bonds issued
by Dwr Cymru (Financing) Ltd., Anglian Water Services Financing
PLC, and Aspire Defence Finance PLC by several notches to align
them with the rating on the insurer."


GLOBAL SHIP: S&P Affirms 'B' Corp Credit Rating, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'B' long-term
corporate credit rating on Marshall Island-registered container
shipping company Global Ship Lease, Inc. (GSL). The outlook is
stable.

S&P said, "At the same time, we affirmed our 'B' issue rating on
the $346 million first-priority ship mortgage notes. The recovery
rating on these facilities is unchanged at '4' reflecting our
expectation of average (30%-50%) recovery (rounded estimate: 40%)
in the event of a default.

"We also affirmed our 'BB-' issue rating on GSL's $40 million
super senior revolving credit facility. The recovery rating is
unchanged at '1', indicating out expectation of very high (90%-
100%) recovery (rounded estimate: 95%) in the event of a default.

"The affirmation reflects our view that GSL will maintain credit
measures commensurate with the 'B' rating in 2017-2018 because
the company's pace of debt reduction will largely match the
declining EBITDA. We believe that the medium- to long-term
charter profile, underpinned by attractive rates, partly
insulates GSL from the structurally oversupplied industry and
historically low (albeit most recently improved) charter rates.
That said, we forecast that the company will continue re-
employing its containerships at lower rates than previously and
face a contraction in earnings.

"We forecast a moderate reduction in EBITDA to $100 million-$105
million in 2017 (from $115 million in 2016) followed by a more
pronounced drop to $80 million-$85 million in 2018, after seven
vessels were re-chartered at lower rates than the rates in the
existing contracts during 2017 and 2018. According to our base
case, debt reduction will counterbalance the impact of lower
EBITDA, which will result in a weighted average ratio of S&P
Global Ratings-adjusted funds from operations (FFO) to debt of
14%-15% in 2017-2018, which favorably compares with a 'B' rating
guideline of more than 9%.

"We believe that the risk of nonperformance by CMA CGM (a France-
based container liner and the largest charterer of GSL) under the
contracts with GSL has diminished considerably. This is because
of the recovery of freight rates for container liners and the
resulting improved credit quality of CMA CGM over the past 12
months. We also note that the improved charter rates for tonnage
providers (such as GSL), and the resulting smaller gap between
market rates and GSL's contracted rates make the charter
contracts less prone to amendments. That said, GSL's current
charter rates with CMA CGM and Orient Overseas Container Liner
(OOCL; a China-based container liner) are still about twice the
market rate.

"In our view, GSL's substantial dependence on CMA CGM, which
leases 15 of its vessels, and its fairly narrow business model
built around 18 containerships, continue to constrain its
business profile. We furthermore consider the container shipping
sector to have higher-than-average industry risks. This, we
believe, stems from the industry's capital intensity, high
fragmentation, frequent supply and demand imbalances, lack of
meaningful supply discipline, and limited ability to
differentiate services provided.

"We believe GSL's long-to-medium-term time-charter profile,
underpinned by attractive rates, will support its predictable
EBITDA generation and partly mitigate these risks. We understand
that the charter profile includes fully noncancellable contracts,
has a remaining average duration of 3.3 years, and implies about
$550 million of future contracted revenues as of June 30, 2017.
This should add to operating visibility, provided CMA CGM and
OOCL deliver on their commitments, which we assume in our base
case. Furthermore, GSL benefits from its competitive and
predictable cost base, with no exposure to volatile bunker fuel
prices and other voyage expenses, which are borne by the
counterparty as stipulated in the time-charter agreements.

"The stable outlook reflects our assumption that GSL will
refinance the notes due April 2019 in the next few months and
that gradually decreasing debt will allow the company to preserve
credit measures consistent with the 'B' rating, despite
diminishing cash flow generation.

"We consider a ratio of adjusted FFO to debt of above 9% to be
consistent with our 'B' rating on GSL, and we expect the company
will meet or exceed this guideline over the next 12 months.
Furthermore, the rating is predicated on the assumption that
GSL's counterparties will fulfil their commitments under the
charter agreements with GSL, and that any additional vessels that
the company may acquire in the future will be employed at a cash-
accretive charter rate.

"Downward rating pressure would arise if we believed that the
company was unable to refinance the secured notes due April 2019
in a timely fashion, which we consider to be at least 12 months
ahead of the maturity.

"We could also lower the rating, for example, if CMA CGM's credit
profile appears to weaken unexpectedly, increasing the risk of
delayed payments or nonpayment under the charter agreements, or
if GSL's debt increased on account of sizable vessel
acquisitions. This could materially weaken the company's
liquidity and credit measures, for example, with the ratio of
adjusted FFO to debt falling below 9% on a prolonged basis.

"We believe that CMA CGM's continuing performance under the
charter agreements is critical for GSL to preserve its rating-
commensurate credit profile. Given that rates embedded in the
agreements are markedly higher than the current and forecast
market rates, GSL's earnings--and consequently its liquidity--
would come under significant pressure if the company were forced
to re-employ its vessels at market rates.

"An upgrade would follow GSL's successful refinancing of the
notes and improvement of credit measures to reach, for example, a
ratio of adjusted FFO to debt of more than 15% on a sustainable
basis. This could stem from charter rates strengthening above our
base case and continued debt reduction from excess cash flows,
combined with the continuation of the company's strategy of
accretive fleet expansion. Because of high exposure to CMA CGM,
an upgrade of GSL would also depend upon our view of whether CMA
CGM's credit quality, and therefore its financial capacity to
deliver on charter commitments, supported a higher rating on GSL.


HIGHLANDS INSURANCE: October 16 Scheme Creditors Meeting Set
------------------------------------------------------------
Dan Schwarzmann of PricewaterhouseCoopers LLP, Joint Liquidator
of Highlands Insurance Company (U.K.) Limited (in Scheme of
Arrangement and Liquidation), announced that a meeting of Scheme
Creditors is to be held to ratify the appointment by the
Creditors' Committee of Douglas Nigel Rackham as joint Scheme
Administrator in accordance with clause 4.2.7 of the Company's
Scheme of Arrangement which became effective on September 22,
2011.  This follows the replacement of Mark Batten by Mr. Rackham
as joint liquidator of the Company by an order of the High Court
of Justice (Chancery Division) dated July 21, 2017, which became
effective on August 4, 2017.

The Meeting will be held on October 16, 2017, at 10:30 a.m. at
PricewaterhouseCoopers LLP, One Embankment Place, London, WC2N
6RH, United Kingdom, (subject to any adjournment thereof in
accordance with the Scheme).  The resolution to be put to the
Meeting will be as follows:

"We refer to the scheme of arrangement pursuant to Part 26 of the
Companies Act 2006 of Highlands Insurance Company (U.K.) Limited
which became effective on September 22, 2011 (the "Scheme").  We
hereby approve the appointment of Douglas Nigel Rackham as Scheme
Administrator, as defined in, and in accordance with the terms
of, the Scheme."

Only Scheme of Creditors with claims under and in accordance with
the terms of the Scheme may attend and vote at the Meeting,
either in person or by proxy.  Scheme Creditors are requested to
sign the Voting Form provided herewith and return it to the
Company, c/o PricewaterhouseCoopers LLP, 7 More London, London
SE1 2RT, United Kingdom, email: highlandsuk@uk.pwc.com, marked
for the attention of Gary Bray/Chris Goodman by no later than
5:00 p.m. on October 13, 2017, although if not so returned, it
may be handed in at the registration desk at the Meeting prior to
its commencement.

Each Scheme Creditor will be required to register its attendance
at the Meeting.  Registration will commence at 10:00 a.m.

An electronic copy of the resolution is available from
highlandsuk@uk.pwc.com


MONARCH AIRLINES: Unite to Launch Legal Action Over Loss of Jobs
----------------------------------------------------------------
Alistair Smout at Reuters reports that British trade union Unite
said on Oct. 4 it would launch legal action on behalf of over
1,800 workers who lost their jobs when Monarch Airlines went in
to administration earlier in the week.

The airline collapsed on Oct. 2 and made 90% of the staff on
Monarch Airlines and Travel Group redundant, after falling victim
to intense competition for flights and a weaker pound, Reuters
relates.

According to Reuters, the union said it would lodge employment
tribunal proceedings over the company's failure to consult the
workers on redundancies, and said the employers had not given the
necessary notice or statutory pay.

"The manner in which Monarch went into administration and the way
the government allowed it happen means there is a strong claim
for compensation by former Monarch workers," Reuters quotes Unite
national officer Oliver Richardson as saying in a statement.

Monarch Airlines, also known as and trading as Monarch, was a
British airline based at Luton Airport, operating scheduled
flights to destinations in the Mediterranean, Canary Islands,
Cyprus, Egypt, Greece and Turkey.


MONARCH AIRLINES: Most Customers Won't Get Automatic Refund
-----------------------------------------------------------
Press Association reports that new figures show the vast majority
of Monarch Airlines' customers will not receive an automatic
refund following the firm's collapse.

According to Press Association, administrators KPMG estimates
that just 10-15% of the 860,000 customers affected have bookings
which are protected by the Air Travel Organiser's Licence (Atol).

The scheme only covers package holidays or Monarch flight-only
bookings made before Dec. 15, meaning hundreds of thousands of
people will be forced to seek refunds elsewhere, Press
Association notes.

Anyone who booked flights costing more than GBP100 using a credit
card can claim a refund under the Consumer Credit Act, while
those who bought cheaper flights or used a debit card can apply
for a chargeback to get their money back, Press Association
states.

More than 23,000 of the 110,000 Monarch customers abroad when the
administration decision was announced on Oct. 2 were expected to
have been repatriated by Oct. 3, Press Association discloses.

The CAA said they will all be flown home on as close to a normal
schedule as possible at no extra cost until Oct. 15, Press
Association relays.

A further three-quarters of a million people who held future
bookings with the firm have had their travel plans cancelled,
according to Press Association.

CAA chief executive Andrew Haines, as cited by Press Association,
said the CAA was notified by Monarch four-and-a-half weeks ago
that "there were issues they were dealing with" and he understood
that the firm's board decided to go into administration close to
midnight on Sept. 30.

Monarch, Press Association says, was still advertising flights on
its website on Sept. 31, meaning some passengers may have booked
trips even after the company's bosses decided it would stop
trading.

Administrators KPMG said 1,858 of around 2,100 people employed
across Monarch's airline and tour group had been made redundant
after the firm went bust, Press Association relates.

Ninety-eight of those made redundant were employed by Monarch
Travel Group, while 1,760 were employees of Monarch Airlines,
Press Association discloses.

KPMG said the remaining employees will help with the
administration process, and assist the CAA in bringing
holidaymakers abroad back to the UK, Press Association notes.

According to Press Association, administrators are now
considering breaking up the company, which was founded in 1967,
as no buyer has been found to purchase Monarch in its entirety.

Monarch Airlines, also known as and trading as Monarch, was a
British airline based at Luton Airport, operating scheduled
flights to destinations in the Mediterranean, Canary Islands,
Cyprus, Egypt, Greece and Turkey.


NMG HOLDCO: S&P Assigns 'B' Corp Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings said that it had assigned its 'B' long-term
corporate credit ratings to NMG Holdco Ltd. (renamed McLaren
Group Ltd.). The outlook is stable.

S&P said, "At the same time, we assigned our 'B' issue rating and
'3' recovery rating to GBP370 million and $250 million senior
secured notes, issued by NMG Finco PLC (renamed McLaren Finance
Plc). This reflects our expectation of meaningful recovery (50%-
70%; rounded estimate 60%) in the event of a payment default.

"We also assigned our 'BB-' issue rating and '1' recovery rating
to a GBP90 million super senior revolving credit facility (RCF),
with NMG Bidco Ltd (renamed McLaren Holdings Ltd.) and McLaren
Finance Plc as borrowers. This reflects our expectation of very
high recovery (90%-100%; rounded estimate 95%) in the event of a
payment default."

The ratings are in line with the preliminary ratings assigned on
July 5, 2017 ("U.K.-Based Automotive Manufacturer McLaren
Assigned Preliminary 'B' Rating; Outlook Stable"). Instead of the
proposed GBP525 million senior secured notes, the group issued
two senior secured note tranches (GBP370 million and $250
million). Other than that, the final documentation does not
depart from the material reviewed in July. The now slightly
higher issuance amount and somewhat lower achieved interest rates
remain in line with S&P's assessment of the group's financial
risk profile and rating level.

S&P said, "Our ratings on McLaren are supported by the company's
business position as an automotive manufacturer of high-
performance sports cars, coupled with a leading Formula One (F1)
racing team and an applied technologies business. In 2016,
McLaren sold 3,286 cars in the "Sports Series" and "Super Series"
model ranges, with more than 11,000 cars in total sold since
2011. In F1, the company has a history of success. Its heritage
as a leading racing constructor has been integral to the
company's development, reputation, and strong brand recognition.

"That said, the need for heavy spending on new model development
significantly depresses S&P Global Ratings-adjusted
profitability, as we expense all research and development costs
while the company largely capitalizes them." Other constraining
factors include McLaren Automotive Ltd.'s (MAL's) small scale,
limited product range in the super-premium segment, and
concentrated operating diversity with a single production site in
the U.K. In addition, the on-track performance of the F1 racing
team of McLaren Technology Group Ltd. (MTG), is currently weak,
and will remain so until it can be more competitive.

Nevertheless, S&P forecasts continued volume growth from new car
models, as well as much higher adjusted EBITDA, funds from
operations (FFO), and cash flow generation, will help improve
leverage and coverage metrics. Given the need to constantly re-
invest in the development and launch of new products, S&P
anticipates negative free operating cash flow (FOCF) in 2017,
becoming positive from 2018.

MAL is the car manufacturing business and accounted for 73% of
the GBP898 million combined revenues in 2016, with MTG
encompassing the racing (about 22%) and applied technologies
business activities (about 5%). As part of the financing, a new
parent holding company--McLaren Group Ltd.--has been established,
which will bring all McLaren's business activities under a single
ownership structure.

MAL has undertaken a multiyear program, since 2015, of
significant product development and investment to release 15 all-
new cars or derivatives, and gradually increase its annual
production to 4,500 cars per year by 2022. We believe that the
strong McLaren brand name, its established technological
expertise and innovation, and its modular production platform
will help execute this strategy, supported by strong customer
demand. MAL has a good track record of new model development,
which is already bearing fruit: car volumes doubled in 2016
compared with 2015. Volume growth--albeit not at the same pace--
will need to continue to strengthen profitability and generate
positive free cash flows to finance future spending on new
models.

Car sales volumes of 1,186 were 8% lower year on year during the
six months to June 30, 2017, due to lower supply levels, although
about 3,600 are expected by the company in 2017 and more than
4,000 in 2018.

S&P said, "We view MTG's position as a racing car constructor in
F1--which has historically been strong--as supportive of
McLaren's technological development, visibility, and branding.
However, in recent years MTG's F1 racing performance on the track
has been weak, hampered by underperforming engines currently
supplied exclusively by Honda. In the current championship
season, after 15 races McLaren is second to last in the
constructor standings with only 23 points. Its key strategy is to
improve this, but it will remain a challenge until it can regain
its competitiveness on the track, against other leading
constructors, notably Mercedes and Ferrari, who manufacture their
own engines and have substantially larger resources. We note that
McLaren will no longer use engines supplied by Honda after the
current season. McLaren has entered into a new engine supply
partnership with Renault for the 2018-2020 seasons."

F1 revenues come from prize money, sponsorship, and merchandise.
Levels vary over time depending on the success of the F1 team,
but are also largely contractual. Should on-track performance not
improve, revenues will further decline, potentially compromising
the brand and affecting the pricing power and demand for
McLaren's high-performance cars. The racing business also has
high costs and weak profitability, reporting losses in some
years. MTG has a small applied technologies business, which
transfers automotive-related innovation into wider markets such
as transportation and health care.

McLaren's financial risk profile is constrained by its highly
leveraged capital structure. The GBP370 million and $250 million
senior secured notes due 2022 refinanced GBP238 million of bank
debt and the company paid GBP200 million to buy out shares held
by Ron Dennis. The remaining amount covered transaction costs and
added cash to the balance sheet. The shares acquisition was
completed in July 2017. A further GBP75 million will be paid as a
deferred consideration to Ron Dennis, with GBP37.5 million each
in December 2017 and August 2019. The GBP90 million RCF was
undrawn.

The group's combined revenues in 2016 were GBP898 million and
reported EBITDA was GBP148 million. S&P Global Ratings-adjusted
EBITDA was near zero, however, mainly after deducting GBP112
million of capitalized development costs, and S&P's estimate of
foreign-exchange losses. FFO was negative at about GBP15 million,
and FOCF was negative at about GBP35 million.

Pro forma for the bond issue, reported gross debt more than
doubled to GBP564 million. S&P said, "At closing, we estimate pro
forma adjusted debt of about GBP666 million, including the GBP75
million of deferred consideration, and about GBP27 million of
shareholder loans that we consider debt for the purpose of our
credit-ratio calculations.

"In comparison with our initial base case, the now slightly
higher issuance amount increases our adjusted debt level, while
achieved interest rates have been somewhat lower. The changes
remain in line with our assessment of the group's financial risk
profile and the assigned ratings."

With the completion of the transaction, McLaren now has a single
ownership structure, with McLaren Group Ltd. as the parent
holding company of MAL and MTG. The majority shareholder is
Bahrain Mumtalakat Holding Co. (Mumtalakat), which owns 62.5% and
which has a group credit profile of 'bb-'.

Mumtalakat is the investment company for the Kingdom of Bahrain's
strategic assets in sectors other than oil and gas. Mumtalakat is
wholly owned by Bahrain and as of June 1, 2017, held stakes in
over 55 commercial enterprises that represented a portfolio of
approximately Bahraini dinar 2.8 billion (US$7.5 billion). S&P
said, "We regard Mumtalakat as a government-related entity (GRE)
of Bahrain. We do not regard McLaren as a GRE, as we do not
expect that government support or negative intervention from
Bahrain would extend to McLaren. We see Mumtalakat as a strategic
investor (not a financial sponsor) in McLaren. While Mumtalakat
has demonstrated financial support to McLaren in previous years,
we do not factor in future extraordinary group support toward
McLaren, which we regard as a non-strategic entity of Mumtalakat.
The ratings on McLaren therefore reflect its stand-alone credit
profile.

"The stable outlook reflects our view that a rating change is
unlikely during the next year. We factor in McLaren continuing to
successfully deliver on its business strategy of investing in new
car models and increasing car sales volumes, and much higher
adjusted EBITDA, FFO, and cash flow generation. However, the
outlook is initially constrained by McLaren's low profit margins
and negative or limited free cash flow generation due to high
investments and very high leverage.

"We could lower the ratings if McLaren experienced delays or
production problems in the car manufacturing operations, or if it
was unable to reach our expectations for profitability or cash
flow generation. A ratio of FFO to debt below 5% in 2018 would be
negative for the rating. Other risks to the rating could be
additional costs incurred by the F1 team as it strives for
stronger on-track results, or a notable weakening of the McLaren
brand name and demand for its high-performance cars.

"We could raise the ratings if McLaren outperforms our base case,
leading to adjusted credit metrics of debt to EBITDA below 5x and
FFO to debt above 12%. This could materialize, for example, if
car production was higher than expected or of there was an uptick
in the F1 team's performance, leading to higher revenues,
improving profitability, and positive FOCF."


TOGETHER ASSET 1: Moody's Assigns B2 Rating to Class E Notes
------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to Notes issued by Together Asset Backed
Securitisation 1 plc:

-- GBP 222.75M Class A Mortgage Backed Floating Rate Notes due
    March 2049, Definitive Rating Assigned Aaa (sf)

-- GBP 11M Class B Mortgage Backed Floating Rate Notes due March
    2049, Definitive Rating Assigned Aa2 (sf)

-- GBP 11M Class C Mortgage Backed Floating Rate Notes due March
    2049, Definitive Rating Assigned A2 (sf)

-- GBP 11M Class D Mortgage Backed Floating Rate Notes due March
    2049, Definitive Rating Assigned Baa3 (sf)

-- GBP 5.5M Class E Mortgage Backed Floating Rate Notes due
    March 2049, Definitive Rating Assigned B2 (sf)

Moody's has not assigned ratings to the GBP 5.225M Class R Fixed
Rate Notes due March 2049, the GBP 13.787M Class Z Mortgage
Backed Fixed Rate Notes due March 2049 and the Residual
Certificates.

The portfolio backing this transaction consists of first lien and
second lien UK non-conforming residential loans originated by
Together Personal Finance Limited ("TPFL") (not rated), Together
Commercial Finance Limited ("TCFL") (not rated) and Blemain
Finance Limited ("Blemain") (not rated).

On the closing date TPFL, TCFL and Blemain have sold the
portfolio to Together Asset Backed Securitisation 1 plc.

RATINGS RATIONALE

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement (CE) and the portfolio expected loss, as
well as the transaction structure and legal considerations. The
expected portfolio loss of 7.0% and the MILAN CE of 24.0% serve
as input parameters for Moody's cash flow model, which is based
on a probabilistic lognormal distribution.

The portfolio expected loss of 7.0%: this is higher than other
recent UK non-conforming securitisations and is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) 60.2% of the pool consists of second lien mortgages; (ii)
47.2% of the loans in the pool is secured by non-owner occupied
properties; (iii) 47.9% of the loans are interest-only mortgages;
(iv) the current macroeconomic environment and Moody's views of
the future macroeconomic environment in the UK, and (v)
benchmarking with similar transactions in the UK non-conforming
sector.

The MILAN CE for this pool is 24.0%: this is in line with other
recent UK non-conforming transactions and follows Moody's
assessment of the loan-by-loan information taking into account
the historical performance and the following key drivers: (i) the
relatively low weighted-average current LTV of 57.2%, (ii) the
presence of 62.1% loans where the borrower is self-employed,
(iii) borrowers with bad credit history with 13.4% of the pool
containing borrowers with CCJ's of which 8.7% live CCJs; (iv) the
presence of 47.1% of interest-only loans in the pool and (v) the
low weighted-average seasoning of the pool of 1.44 years.

At closing the mortgage pool balance consists of GBP 275.0
million of loans. The reserve fund is funded to 2.0% of the
initial balance of the rated notes via the proceeds of Class R
notes. The reserve fund is amortising and will track 2.0% of the
principal outstanding of the rated notes until it reaches 1.0% of
the initial balance of the rated notes. The reserve fund will
stop amortising if the notes are not repaid on the first optional
redemption date, the interest payment date occurring in September
2021, or if cumulative defaults exceed 5.0% of the initial
portfolio balance. The reserve fund will be replenished junior to
the PDL of Class E notes.

Operational Risk Analysis: TPFL, TCFL and Blemain are acting as
servicers and are not rated by Moody's. In order to mitigate the
operational risk, the transaction has a back-up servicer, Capita
Mortgage Services Limited (not rated). Capita Trust Corporate
Limited (not rated) will be acting as back-up cash manager
facilitator and will find a replacement cash manager in case the
cash manager, Together Financial Services Limited (not rated),
stops performing its duties under this role. To ensure payment
continuity over the transaction's lifetime the transaction
documents incorporate estimation language whereby the cash
manager can use the most recent servicer reports to determine the
cash allocation in case no servicer report is available. At
closing Class A notes benefit from the equivalent of 4 months of
liquidity assuming a stressed LIBOR rate of 5.7%. Also, the most
senior notes outstanding benefit from principal to pay interest
mechanism.

Interest Rate Risk Analysis: The transaction is unhedged with
100.0% of the pool balance linked to SVR. Moody's has taken the
absence of basis swap into account in its cashflow modelling.

The definitive ratings address the expected loss posed to
investors by the legal final maturity of the Notes. In Moody's
opinion the structure allows for timely payment of interest and
ultimate payment of principal at par on or before the rated final
legal maturity date for all rated notes. Moody's ratings only
address the credit risk associated with the transaction. Other
non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 7.0% to 12.25% of current balance, and the
MILAN CE was kept at 24.0%, the model output indicates that the
Class A notes would still achieve Aaa(sf), assuming that all
other factors remained equal. Moody's Parameter Sensitivities
provide a quantitative/model-indicated calculation of the number
of rating notches that a Moody's structured finance security may
vary if certain input parameters used in the initial rating
process differed. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might migrate over time, but rather how the initial rating of the
security might have differed if key rating input parameters were
varied. Parameter Sensitivities for the typical EMEA RMBS
transaction are calculated by stressing key variable inputs in
Moody's primary rating model.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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