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

                           E U R O P E

          Wednesday, November 1, 2017, Vol. 18, No. 217


                            Headlines


B U L G A R I A

HUVEPHARMA EOOD: S&P Affirms 'BB' LT CCR, Alters Outlook to Pos.


C R O A T I A

AGROKOR DD: Crisis Threatens Croatian Government
CROATIAN BANK: Moody's Affirms Ba2 Issuer Rating, Outlook Stable


C Y P R U S

OCEAN RIG: S&P Raises LT CCR to 'B-', Outlook Stable


F R A N C E

REXEL SA: Fitch Affirms BB Long-Term IDR, Outlook Stable


G E R M A N Y

INEOS STYROLUTION: S&P Raises CCR to 'BB', Outlook Stable


G R E E C E

FRIGOGLASS SAIC: Moody's Hikes Corporate Family Rating to Caa1


H U N G A R Y

MFB HUNGARIAN: Moody's Withdraws b2 Baseline Credit Assessment


I C E L A N D

KAUPTHING BANK: Settles Vincent Tchenguiz's GBP2.2-Bil. Lawsuit


I R E L A N D

ST. PAUL'S CLO IV: Moody's Assigns B2 Rating to Class E Notes


I T A L Y

INTERBANCA SPA: Moody's Hikes Long-Term Deposit Rating to Ba1
LOCAT SV: Moody's Lifts Rating on Class C Notes to Ba3
MOSSI GHISOLFI: Due to Present Restructuring Proposals for Units
SIENA LEASE 2016-2: Moody's Raises Class D Notes Rating to B3


L U X E M B O U R G

TES GLOBAL: S&P Cuts CCR to 'CCC+' on Weak Operating Performance


R U S S I A

FIRST COLLECTION: S&P Alters Outlook to Stable & Affirms 'B-' ICR
IG SEISMIC: Moody's Withdraws Caa1 Corporate Family Rating
STAVROPOL REGION: Fitch Affirms BB Long-Term IDR, Outlook Stable
TVER REGION: Fitch Withdraws BB- Long-Term IDR, Outlook Stable


U K R A I N E

UKRAINE: Fitch Affirms B- Long-Term IDR, Outlook Stable


U N I T E D   K I N G D O M

FREIGHT BOOKS: Put Under Control of Provisional Liquidator
HBOS PLC: Sants Agrees to Give Evidence About Lloyds Rescue
SHOP DIRECT: Fitch Affirms 'B+(EXP)' LT Issuer Default Rating


                            *********



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


HUVEPHARMA EOOD: S&P Affirms 'BB' LT CCR, Alters Outlook to Pos.
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Bulgaria-based animal
health company Huvepharma EOOD to positive from stable. At the
same time, S&P affirmed its 'BB' long-term corporate credit
rating on Huvepharma.

S&P also withdrew the 'BB' issue rating on company's senior
secured terms loans at the company's request.

The outlook revision reflects that Huvepharma is demonstrating
its ability to significantly expand and gain market shares while
improving its profitability. S&P expects the company to achieve
revenues of close to EUR430 million in 2017 and EUR460 million in
2018, after an increase of nearly 28% in 2016. This is
accompanied by gradual EBITDA margin improvement, remaining well
above 25% by S&P's estimate, which compares well with peers such
as CEVA (20%) or Zoetis (35%).

The primary drivers of this growth will be newly launched
products. Over the past 12 months, Huvepharma has received 213
registrations globally for new and existing products, including
E.Coli 6-Phytase OptiPhos, to be used for fish, and the probiotic
Bacillus licheniformis (for increasing gut health in fish, sold
under the brand name B-Act). Huvepharma obtained the renewal of
its approval under improved use conditions for Sacox, an
anticoccidial feed additive, and it launched Parofor, used as a
treatment of gastro-intestinal infections caused by Escherichia
coli in pre-ruminant cattle and pigs. Parofor represents a
further step in the penetration of the EU cattle market following
acquisition of Zoetis' portfolio. Furthermore, the company's
various cattle projects include Monensin (an anticoccidial for
cattle) in the U.S., for which it expects to obtain FDA approval.
This would represent a significant step forward for Huvepharma as
its portfolio would be able to compete with that of Elanco, which
currently dominates the U.S. cattle feed additives market through
its strong bundling capacity supported by a current monopoly on
Monensin.

To be able to support this future growth, the company is
investing heavily into new production capacity. We expect capital
expenditure (capex) to increase to EUR59 million in 2017 and
about EUR80 million-EUR100 million per year in 2018 and 2019,
which will be partially financed by drawing on its capex line of
EUR150 million. Due to these heavy investments, it is important
that the company continues to deliver underlying strong growth
and profitability improvements to be able to maintain debt to
EBITDA below 3x on average over the next three years. In S&P's
base-case assumptions, debt to EBITDA will be about 2.9x on
average over the next three years, leaving limited headroom for
operational underperformance either from cash outflows, working
capital mismanagement, or larger-than-expected acquisitions.

Huvepharma is an integrated pharmaceutical company that develops,
manufactures, and markets animal health products and feed
additives. S&P said, "We view Huvepharma's modern and efficient
plants and high-quality fermentation capacity as a key
competitive advantage and as a strong differentiating feature.
Across the industry globally, there is limited existing
fermentation capacity (outside China). We view this as a
competitive advantage when compared with peers, which have to buy
the active pharmaceutical ingredients (APIs). Moreover,
Huvepharma has one of the highest fermentation yields in the
industry and its APIs are known for their high quality."

The company is well diversified geographically with the majority
of revenue stemming from exports. S&P views positively the good
balance between Western Europe and North America, which both are
highly regulated and highly profitable markets. The U.S. has
become Huvepharma's largest market by sales. Historically, the
company's plants were concentrated in Bulgaria, but geographical
spread has improved over the years and the group has now five
sites in the U.S.

Huvepharma controls the distribution channel, which improves the
ability to drive revenues and capture the full extent of the
value chain. It continues to expand its distribution network,
with the acquisition of a distributor in Japan. The company is
also finalizing negotiations to start up a subsidiary in South
Africa. Direct sales reached 87% in 2017 versus 81% in 2015,
which supports higher profitability.

One of the company's key objectives is to increase its vaccine
offer. Vaccines will represent the largest market opportunity by
2020, with an estimated value of about EUR8.3 billion. They offer
an alternative to keep animals healthy, given scrutiny on the use
of antibiotics. Huvepharma entered the market in 2014 through the
acquisition of Advent vaccines, the Lincoln U.S. manufacturing
facility from Novus, and Zoetis cox vaccine Inovocox. However,
despite some progress in vaccines, the business offer in this
segment remains much more limited compared with peers such as
CEVA. In terms of species, Huvepharma remains focused on poultry
(approximately 50% of revenues), and swine (30%), with cattle and
other species accounting for only about 20%. S&P expects this to
improve with the launch of new products. In general, animal
healthcare products, even registered ones, can easily be
replicated due to the less complex process of getting approvals
from drug regulators and a less stringent regulatory process.
Over the last 12 months, Huvepharma has received 213
registrations globally for new and existing products.

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

-- Strong revenue growth of 7% to 13% over the next three years,
    supported by newly launched products.

-- EBITDA margin well above 25% in the next three years;
    supported by a change in product mix toward higher margin
    products.

-- Working capital outflow that could increase up to EUR25
    million, reflecting build-up of inventories and receivables
    due to rapid revenue growth.

-- Capex of about EUR60 million in 2017, about EUR100 million in
    2018 and about EUR80 million in 2019, reflecting heavy
    investments to increase capacity.

-- Small bolt-on acquisitions of EUR5 million-EUR10 million in
    the next two years, reflecting the group's strategy to focus
    on organic growth.

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

-- Debt to EBITDA at about 2.9x on average over the next three
    years.

S&P said, "The positive outlook reflects our expectation that
Huvepharma will continue to gain market shares mainly in poultry
and swine (the segments where it has been historically present),
while improving its business mix toward more profitable products.
This should result in continued strong earnings growth over the
next 12 months. Concurrently, we expect the company will
successfully execute its development projects, increasing its
fermentation capacity and building-up its vaccines portfolio,
which should enable Huvepharma to become a major competitor in
the longer term.

"We would raise the rating on Huvepharma if the company can
demonstrate that it is on track to realize returns on its heavy
investments anticipated over next two years, mainly profitable
growth that will fuel its expansion in the long term. It also
assumes that the company's existing products and its track record
of operational efficiency will support EBITDA and cash flow
generations that will enable the company to maintain debt to
EBITDA below 3x on average. Under these assumptions, the company
should be on track to deliver revenues of at least EUR500
million-EUR600 million and EBITDA of EUR140 million-EUR180
million by 2019-2020. This reflects the strength of the group's
existing franchise and the efficiency of its production and
distribution capabilities, supported by the strategic launches in
the U.S., which should enable the company to increase its
penetration of the cattle market.

"We would revise the company's outlook back to stable if the
company is not able to deliver is growth plan, expand its market
share, and further diversify its portfolio. We would also review
the rating in case of cost overruns or prolonged delays in the
investment phase that could put pressure on profitability and
cash flow generation, causing deterioration in debt protection
metrics, mainly if debt to EBITDA remains above 3x."


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C R O A T I A
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AGROKOR DD: Crisis Threatens Croatian Government
------------------------------------------------
bne IntelliNews reports that the growing scandal surrounding
Croatian food and retail giant Agrokor has threatened to bring
down the government as the opposition Social Democratic Party
(SDP) reportedly prepares to collect signatures for a no-
confidence vote.

The reports -- which have not yet been confirmed by the party --
came after details of a loan agreement between Agrokor and
investment fund Knighthead were leaked to the media, bne
IntelliNews relates.  Meanwhile, the investigation into financial
irregularities revealed that the troubled group is accelerating
with an arrest warrant issued for its founder Ivica Todoric, bne
IntelliNews discloses.

Agrokor is undergoing restructuring after a debt crisis pushed it
to the brink of collapse earlier this year, bne IntelliNews
relays.  A successful conclusion of the restructuring process is
critical for Croatia where it employs around 40,000 people, as
well as a further 20,000 across the Balkans, bne IntelliNews
notes.

According to bne IntelliNews, as rumors of an impending
confidence vote swirled in the local press, Prime Minister
Andrej Plenkovic commented on the issue on Oct. 26, accusing the
SDP of "recklessness and irresponsibility".

"They want to destabilize the restructuring process of Agrokor,
the company that has the greatest impact on the entire Croatian
economy and the financial system. These are the ones who wanted
the biggest Croatian company to go bankrupt, not thinking about
jobs, financial stability, the international image of the
Republic of Croatia.  It is miserable and irresponsible," bne
IntelliNews quotes Mr. Plenkovic as saying in a video posted on
the ruling Croatian Democratic Party's website.

                         About Agrokor DD

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

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

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

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

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

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


CROATIAN BANK: Moody's Affirms Ba2 Issuer Rating, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed Croatian Bank for
Reconstruction and Development's (known as Hrvatska banka za
obnovu i razvitak or HBOR) Ba2 foreign-currency issuer rating and
its provisional (P)Ba2 foreign-currency backed senior unsecured
Medium-Term Note (MTN) programme. The outlook of the long-term
issuer rating remains stable. At the same time, Moody's has
withdrawn the bank's standalone baseline credit assessment (BCA)
of ba2.

HBOR is a 100% government owned development bank and benefits
from an unconditional and irrevocable state guarantee across its
obligations. As such the rating agency is using an approach based
upon the ability and willingness of the government to provide
timely support, as described in Moody's methodology concerning
Government-Related Issuers (GRIs), to derive HBOR's issuer
rating. Previously HBOR's ratings were derived using a
combination of Moody's methodologies for GRIs and Banks.

RATINGS RATIONALE

The Ba2 issuer rating assigned to the Croatian Bank for
Reconstruction and Development (HBOR) derives from the explicit,
irrevocable and unconditional guarantee provided by the
Government of Croatia (Ba2 stable) for HBOR's existing and future
financial obligations.

Given that the Croatian government explicitly and unconditionally
guarantees all of HBOR's liabilities, the bank's ratings are
rated in line with those of the Government of Croatia reflecting
the full risk transfer to the guarantor. This approach takes into
account the bank's (1) unique policy function within the country
with the mandate to facilitate the reconstruction of the Croatian
economy by supporting infrastructure development and SME's access
to finance; (2) full government ownership; and (3) supervision by
the Croatian government and parliament, members of which form
HBORs supervisory board. HBOR's liabilities are included in the
government's debt.

Notwithstanding this approach, Moody's recognise HBOR's robust
capital buffers, with 60.6% Tier 1 ratio as of June 2017, the
elevated asset risk the bank faces stemming from its policy role
which is reflected in the relatively high ratio of non-performing
loans to gross loans of 6.97% as of June 2017 and its stable but
modest profitability. Further, though HBOR has a high reliance on
market funding, this funding is mainly from multilateral
institutions which largely mitigates refinancing risks.

WHAT COULD MOVE THE RATINGS UP/DOWN

The issuer rating of HBOR would move in tandem with the rating of
the government of Croatia given HBOR's policy mandate, its full
government ownership and the state guarantee.

LIST OF AFFECTED RATINGS

Issuer: Croatian Bank for Reconstruction and Development

Affirmations:

-- LT Issuer Rating (Foreign Currency), Affirmed Ba2, Outlook
    Remains Stable

-- BACKED Senior Unsecured MTN Program, Affirmed (P)Ba2

Withdrawals:

-- Baseline Credit Assessment, Rating Withdrawn, previously
rated
    ba2

Outlook Actions:

-- Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Government-
Related Issuers published in August 2017.

As of the end of June 2017, HBOR had total consolidated assets of
HRK27.8billion (US$4.3 billion). HBOR is headquartered in Zagreb,
Croatia.


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C Y P R U S
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OCEAN RIG: S&P Raises LT CCR to 'B-', Outlook Stable
----------------------------------------------------
S&P Global Ratings said that it had raised its long-term
corporate credit rating on Cayman Islands-domiciled drilling
company Ocean Rig UDW Inc. to 'B-' from 'D'. The outlook is
stable.

S&P also assigned a 'B' rating to the new $450 million senior
secured term loan due in 2024. The recovery rating is '2',
indicating S&P's expectation of very high recovery prospects
(70%-90%; rounded estimate: 85%) in the event of a payment
default.

S&P withdrew the issue rating on the following instruments that
were exchanged:

-- Drillships Ocean Ventures Inc.'s $1.3 billion term loan B
    facility.

-- Drill Rigs Holdings Inc.'s $800 million senior secured notes.

-- Drillships Financing Holding Inc.'s $1.9 billion term loan B1
    facility.

-- Ocean Rig's $500 million senior unsecured notes due in 2019.

S&P said, "With the restructuring completed, Ocean Rig is now
well positioned to face the turbulent market conditions in
offshore drilling and the consequent poor operating and financial
performance that we anticipate for all players in the segment
over the next couple of years. With a cash balance close to $700
million (that we view as available for debt repayment) and a $450
million maturity in 2024, the company has ample leeway to
navigate through uncertain times in offshore markets, with
limited demand for rigs and drill ships leading to low dayrates.
As a result, we view the financial risk profile as being
significantly improved, with negative reported net debt and cash
interest charges of only $36 million per year, or about 7x less
than in 2016. However, we note that it is the strong cash balance
and low absolute debt that sustains the solid financial risk
assessment, rather than strong operating performance.

"We forecast funds from operations (FFO) and EBITDA to be weak
and we anticipate FOCF to be negative in 2019. Therefore, the
liquidity protection and maintenance of a high cash balance is
key to our assessment and for maintaining the rating at 'B-. As
such, we do not view the financial risk profile as fully
capturing the credit risks because of the high event risk that
could, in our view, result in a much weaker financial risk
profile if the company and its shareholders decided to engage in
aggressive growth strategies or shareholder-friendly actions. Our
assessment also incorporates the lack of clear financial policy
such as leverage targets, and the track record of the company's
management, which includes high leverage and risk appetite over
the past years, eventually resulting in financial distress and
the restructuring. Recently some of the largest shareholders have
urged the company to consider options regarding the strategy and
capital structure, which creates uncertainty over the longer
term. For those reasons, we have adjusted the rating on what we
view as financial policy weaknesses.

"The financial risk profile assessment is largely benefitting
from the cash balance (available for debt repayment) and the
consequent negative net debt. However, we note that coverage
ratios are weak, even with cash interests at much lower levels
than previously. This is because despite the restructuring, we
have not changed our view of the offshore drilling markets for
the coming years and EBITDA and FFO will remain weak, translating
to cash interest being high on a relative basis when compared
with what cash the business can generate over the next 12-24
months. We note, however, that the company could decide to prepay
the $450 million loan out of cash on hand prior to March 22,
2018, without penalty, which would lead to substantially
improving cash interest coverage."

The difficulties faced by offshore drillers also inform our
business risk assessment. With very high concentration from a
customer and contract perspective, (about 80% of backlog is
related to the Ocean Rig Skyros contract with Total S.A. Angola,
at dayrates way above current market rates), the company is
vulnerable to cancellation risk as we have seen in previous
years. S&P said, "We also note that the fleet is of an overall
high quality with several drill ships from the latest generation
that should be better positioned to get employment in an improved
market environment. But six of those units are currently cold
stacked, which we view negatively because it will be more
difficult, and costly, to re-contract them. Furthermore, we view
the lack of diversification, into shallow or midwater drilling,
for example, as a negative factor because there is uncertainty as
to how deep and ultra-deepwater projects will play out in global
oil and gas production the next five years, leading to
uncertainty in the pace and magnitude of the segment's recovery.
Employment and dayrates for jack-ups have also been more stable
than for floaters. We still believe, however, that Ocean Rigs'
business position has improved following the restructuring
because the balance sheet puts it in a more favorable position in
oil-rig tenders. Not only does a strong balance sheet provide
assurance for potential customers, it also allows for more
competitive pricing, thus increasing chances of keeping the fleet
active."

S&P said, "The outlook is stable, reflecting our view that the
current significant cash balance provides protection over the
coming 12 months against underperformance of the business in the
current difficult market environment. As such, we anticipate
available cash to remain above $500 million and free operating
cash flow to be only modestly negative over the next two years.

"We could lower the rating in the next 12 months if the cash
balances are significantly reduced, such that available liquidity
would fall below $500 million. This would likely occur through
growth initiatives and/or shareholder distributions rather than
weaker-than-expected operating performance. However, we could
lower the ratings if the company were to face contract
cancellations or any other significant negative adverse event
impeding the long-term prospects of the business and the
sustainability of the capital structure.

"We could raise the rating on Ocean Rig in the coming 12 months
if the company was to substantially improve its contract backlog;
for example, by employing stacked rigs and diversifying its
revenue streams, alleviating some of the concentration risk. This
should translate into better EBITDA and cash flow generation than
we currently project and therefore support overall sustainability
of the company's business model. We believe this scenario could
materialize in case of significant improvement in market
conditions, which we do not anticipate in our base case scenario
over the next 12 months. A higher rating on Ocean Rig could also
hinge on a more predictable financial policy and if it uses cash
on hand to repay debt."


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F R A N C E
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REXEL SA: Fitch Affirms BB Long-Term IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Rexel SA's Long-Term Issuer Default
Rating (IDR) and senior unsecured rating at 'BB' and Short-Term
rating at 'B'. The Outlook is Stable.

"The affirmation and Stable Outlook are based on our view that
there will be a positive effect from management refocusing on
core geographies and market segments and organic revenue growth
in its two main markets in Europe and the US in 2017/2018. Taking
advantage of some operational leverage, we expect Rexel to
display improved operating margins, moving above our sensitivity
of 5.0% EBITDA margin in FY17 and towards 5.6% by FY19. Combined
with tight cost control this should allow free cash flow (FCF)
generation to rise to above 1% of sales in 2017, trending towards
1.6% by FY19," Fitch says.

With only moderate bolt-on acquisitions assumed from 2018, this
should result in some de-leveraging in 2018 and 2019. Funds from
operations (FFO) adjusted net leverage should return to within
Fitch's sensitivity of 5.0x by end 2019. With large undrawn
committed debt facilities and commercial paper programmes and
EUR459 million of reported cash at end-June 2017, liquidity is
healthy. Further to the EUR300 million 2024 bond issue in March
2017, Rexel has no major debt repayments now before 2022.

KEY RATING DRIVERS
Organic Sales Recovery: Fitch's rating case for Rexel includes a
return to organic growth in sales from 2017, albeit only
improving to about 2% by FY19. The group's sales slightly reduced
in FY16 on a constant and same-day basis (-1.9%) after several
quarters of declines. However, Rexel has returned to growth in
the last four quarters of trading, reflecting good growth in
Europe and North America and improvements in Asia Pacific. Fitch
assumes management's refocusing on core geographies and market
segments will have a positive effect, together with stronger
markets in Europe and the US this year and return to growth in
other regions from 2019.

EBITDA Margin Improvement: In 2016 Rexel's EBITDA margin remained
just below Fitch's negative sensitivity guidance of 5% for the
second consecutive year, at 4.8%. Fitch expects this will improve
to 5.1% in 2017 and then towards 5.6% by 2019. This steady uplift
mainly reflects its view that organic sales growth will return
from this year, and that the group will benefit from some narrow
positive operating leverage. The latter should also be
compensated for by further optimisation of the group's operating
structure and gross margin, as well some growth from bolt-on
acquisitions from 2018 onwards.

Fitch also assumes the successful achievement of management's new
disposal programme over 2017-2018, which should take out invested
capital from non-core, less profitable assets.

Acquisition Programme Suspended: Following recent management
changes and the decision to concentrate on existing geographies,
Rexel has decided to focus on optimising the existing business,
and broadly suspended the acquisition programme in 2017, barring
the possibility of small in-fill acquisitions. With the group
likely to generate improved FCF margins from 2017, this should
allow some moderate de-leveraging in 2018 and 2019, bringing FFO
adjusted net leverage down below 5.0x by end 2019 and within
Fitch's rating sensitivity.

Resilient FCF: Rexel has a good track record of converting EBITDA
into FCF given the asset-light nature of the business and active
working capital control by management. Maintaining good FCF is
critical for the rating given high leverage. FCF remained
positive in 2016, although weaker than prior years, with a pre-
dividend FCF margin at 1.6% of sales and FCF margin of 0.7%.
Fitch expects annual FCF to return to over EUR200 million by
FY19, with FCF margins improving back to about 1% (pre-dividend
FCF above 2%) this year due to improved profitability and a
further decrease in cash interest due to active debt management,
and to move towards 1.6% by FY19.

Adequate Financial Flexibility: Reduced acquisition activity
should allow the group's financial flexibility to remain adequate
for its rating, despite some weakness in FCF generation in 2016.
Financial flexibility is also underpinned by the group's healthy
FFO fixed-charge cover. Fitch expects this to be in the 2.5x-3.0x
range (2016: 2.2x) over the next three years, driven by reduced
cash interest payments due to increased refinancing of high
coupon debt. Critical additional rating support is management's
strict financial discipline, which Fitch expects to be maintained
through limited year-on-year increases in dividend payments.

Leverage Headroom to Improve: Rexel's FFO adjusted net leverage
reached 6.3x in 2016, exceeding Fitch's guideline of 5.0x for a
'BB' rating driven by past acquisition spending and a challenging
trading environment. The Stable Outlook assumes continued FCF
generation and low acquisition activity which should permit some
deleveraging over the next three years.

Financial Discipline Critical: The Stable Outlook reflects
Rexel's position in the cycle and its reviewed financial policy.
The sustainability of Rexel's leverage headroom under the 'BB'
rating will be contingent on maintaining rigorous financial
discipline. Fitch's 2018-2019 rating case incorporates limited
increases in capex and dividends, moderate bolt-on acquisitions
from 2018 and management achieving its asset disposal plan.
Taking into account clearly improving market conditions in its
major markets and assuming management comply with its more
stringent financial policy, including a stricter long-term
leverage target, Rexel should regain its rating headroom with FFO
adjusted net leverage falling back below 5.0x in 2019.

DERIVATION SUMMARY
Electrical distribution group Rexel has both weak operating
profitability measured as EBITDA and EBITDAR margins and high net
leverage metrics for the 'BB' rating category (FFO adjusted net
leverage median of about 3.5x versus an estimated 5.5x for Rexel
at FY17). Leverage is also high by sector standards compared with
other distributors and retailers such as Wolseley Plc, Wesco
International Inc. and Kingfisher Plc (BBB/Stable).

However, these factors are balanced by its high cash conversion
ratio throughout the cycle (post-dividend FCF margin average of
1.5% p.a. of sales in the last four years), resulting in
resilient FCF and adequate financial flexibility relative to
cyclical industrial manufacturers or building materials producers
in the 'BB' category. The group also displays strong geographical
diversification relative to close peers, with operations in 32
countries across Europe, North America and Asia.

KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
- Positive organic growth in sales from 2017, strengthening
   towards 2.0% in 2019
- Steadily improving EBITDA margin, back to above 5% in 2017 and
   towards 5.6% in 2019
- Working capital outflows along with sales growth, higher in
   FY17 due to increasing inventories in North American business
- Stable annual capex at 0.9%-1.0% of sales
- Limited annual increase in dividend distributions
- Annual growth in FCF, rising to over EUR200 million by FY19
- Annual bolt-on acquisition spending growing along with
   improving operating performance, ranging from EUR50 million in
   2017 up to EUR250 million in 2019
- Asset disposals (approximately EUR800 million of revenues)
   over 2017-2018 with some positive effect on group EBITDA
   margin

RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- EBITDA margin sustained at above 6%, reflecting better product
   mix, successful cost restructuring or higher resilience
   throughout the economic cycle;
- FFO adjusted net leverage below 4.0x on a sustained basis;
- Continued strong cash flow generation, measured as pre-
   dividend FCF margin comfortably above 2% (2016: 1.6%).

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- EBITDA margin consistently below 5%;
- A contraction of pre-dividend FCF margin to below 2% as a
   result of weaker EBITDA margin and/or a less tightly managed
   working capital;
- Inability to achieve de-leveraging consistent with FFO lease
   adjusted net leverage falling below 5.5x by end 2018 and below
   5.0x by end 2019;
- A more aggressive dividend distribution policy leading to an
   erosion of FCF margin to below 1%.

LIQUIDITY
Adequate Liquidity: Liquidity was healthy as of 31 December 2016
with EUR619 million of cash on balance sheet, of which Fitch
considers EUR419 million readily available for debt repayment (as
EUR200m is excluded to account for working capital requirements
during the year). Liquidity is further underpinned by undrawn
committed bank facilities (about EUR1 billion maturing in
November 2021). Rexel also has access to various receivable
securitisation programmes totalling EUR1.4 billion and a EUR500
million commercial paper programme to help finance structural and
rather large working capital requirements.


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


INEOS STYROLUTION: S&P Raises CCR to 'BB', Outlook Stable
---------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Germany-
based styrenics producer INEOS Styrolution Holding Ltd.
(Styrolution) to 'BB' from 'BB-'. The outlook is stable.

S&P said, "At the same time, we raised our issue ratings on the
remaining senior secured instruments to 'BB+' from 'BB'. We
revised the recovery rating to '1' from '2'. The '1' recovery
rating indicates our expectation of very high (95%) recovery
prospects for creditors in the event of a payment default."

The upgrade follows INEOS Styrolution's announcement that it will
repay EUR248 million senior secured term loan held by Ineos Group
Holdings Ltd. out of cash accumulated. This debt repayment,
alongside deleveraging by parent INEOS AG and by Styrolution's
sister company Ineos Group Holdings, results in a higher credit
quality for the group, which we now assess at 'bb'. S&P said, "In
our view, this also strengthens Styrolution's credit quality. We
anticipate that Styrolution will continue reporting robust
operating performance in 2017 and 2018, supported by favorable
conditions in the styrenics markets, pointing to about 1.0x
adjusted debt to EBITDA. We believe this level offers ample
leeway under our current assessment of Styrolution's stand-alone
credit profile (SACP) for investments, acquisitions, or
shareholder distribution if the company opted to do so. We
understand the company's financial policy tends to be more
aligned with a 2.0x adjusted debt-to-EBITDA ratio under current
good cycle conditions (4.0x in cycle trough), which we continue
to regard as commensurate with our 'BB' rating."

S&P said, "We anticipate that Styrolution will report adjusted
EBITDA of over EUR800 million in 2017, following very strong
quarters reported year to date with EUR682 million EBITDA already
realized. The results are driven by strong demand and margins in
the specialties and ABS (acrylonitrile butadiene styrene)
businesses across all regions, notably Asia, as well as a
continued focus on reducing fixed costs. Softer demand for
polystyrene only marginally affected earnings year to date,
mainly in Europe. The group benefited from high benzene prices in
early 2017, although these have moderated since then, and we
understand styrene monomer margins continue to benefit from tight
supply and demand balance. The acquisition of South Korea-based
styrene-butadiene copolymers K-resin also contributed positively
by enhancing exposure in Asia, furthering end-market reach, and
enabling modest synergies. We anticipate that market conditions
should moderate toward the end of 2017 and forecast a potential
return to more mid-cycle conditions in 2018, with around EUR700
million adjusted EBITDA, which continues to be very sensitive to
actual raw material price developments."

Styrolution benefits from a large-scale, integrated, and cost-
competitive asset base, as 75% of its production assets are
positioned in the first and second quartile of the industry cost
curve. In addition, we factor in the company's successful track
record and focus on cost management and efficiencies programs.

S&P said, "However, our view on Styrolution's business is
constrained by the commodity-intensive nature of its products and
its limited diversification as a pure-play styrenics producer,
even though we acknowledge the stability provided by the
company's specialty business, which accounts for about 30% of
EBITDA. We believe Styrolution's product focus can lead to
considerable cyclicality of earnings and cash flows during
periods of lower demand in the company's core cyclical end-
markets, including consumer durables, packaging, automotive, and
construction. Furthermore, volatility in raw material prices
(such as benzene) could erode profitability.

"Our base case points to significant free cash flow in 2017 and
2018, on the back of top cycle conditions, and despite somewhat
increased capital expenditures (capex) on strategic projects such
as the ASA Bayport project, which will start incurring costs in
2018 and peak in 2019.

"We continue to view Styrolution as a moderately strategic
subsidiary of the INEOS AG group, reflecting our understanding
that INEOS' policy is to fund the individual group companies on a
stand-alone basis. Because we now assess INEOS AG's group credit
profile at 'bb', the rating on Styrolution currently incorporates
no adjustment for group support and is aligned with our 'bb'
group credit profile for INEOS.

"The stable outlook reflects our view that Styrolution will
maintain strong operating performance in the current favorable
business environment, translating into adjusted debt to EBITDA of
about 1.0x in 2017 and 2018 under our base case. We view this
level as very strong for the rating, offering ample leeway for
investments, acquisitions, or dividends. We note, in addition,
that the company tends to maintain a financial policy that is
more consistent with a 2.0x adjusted debt to EBITDA, which we
view as commensurate with the rating under the current good cycle
conditions. We consider this ratio could deteriorate to 4.0x
under down-cycle conditions without changing our view of the
group's credit quality. We also factor in Styrolution's
shareholder commitment to maintaining an appropriate balance
between leverage, growth initiatives, and shareholder
distributions."

Rating pressure would arise from deteriorated styrenics market
conditions that resulted in adjusted debt to EBITDA exceeding
4.0x without near-term recovery prospects. An increase in
shareholder returns or large debt-funded acquisitions that
brought adjusted debt to EBITDA over 2.0x in continued favorable
market conditions would also constrain the rating.

Rating upside is relatively limited given the inherent volatility
of the styrenics industry and the effect this volatility would
have on the level of credit metrics we consider to be comfortably
within the threshold for the rating. A higher rating would also
depend on the company's ability and willingness to keep leverage
sustainably below 2.0x (or well below 4.0x in the trough)
alongside further improvement of INEOS AG's credit quality.


===========
G R E E C E
===========


FRIGOGLASS SAIC: Moody's Hikes Corporate Family Rating to Caa1
---------------------------------------------------------------
Moody's Investors Service has upgraded the Greek manufacturer
Frigoglass SAIC's corporate family rating (CFR) to Caa1 from Caa3
and its probability of default rating (PDR) to Caa1-PD from Ca-PD
/LD. The outlook on the ratings remains negative. Concurrently,
Moody's has withdrawn the Ca senior unsecured rating assigned to
the notes issued by Frigoglass Finance B.V. and due in 2018, and
its negative outlook.

RATINGS RATIONALE

The rating action follows the completion on October 23, 2017 of
the capital restructuring. Bondholders who accepted to inject new
cash in the company in the form of a new first lien debt received
in exchange of their outstanding senior unsecured debt a mix of
first lien debt, second lien debt and equity. The non-accepting
bondholders received only second lien notes and equity. Moody's
considers this transaction to be a distressed exchange, which
constitutes a default under Moody's definition.

The new capital structure includes EUR40.6 million of first lien
bank debt, EUR79.4 million of first-lien bonds, EUR42.2 million
second-lien bank debt, EUR98.5 million second-lien bonds and
approximately EUR21 million of debt at the operating subsidiaries
of the group. As part of the restructuring, Frigoglass's major
shareholder, Boval, converted a EUR30 million shareholder loan
into equity and injected a further EUR30 million in equity.

The upgrade of the CFR and PDR reflects Frigoglass's improved
financial structure and liquidity following the restructuring, as
the total quantum of debt has been reduced by approximately
EUR100 million and the company received EUR70 million of new
cash, including both the capital increase and new first-lien
debt. Following the restructuring, Frigoglass's annual interest
cost will reduce by some EUR14 million per annum and the maturity
of its debt has also been extended with the next maturity falling
in December 2021, when the first-lien debt becomes due.

However, Frigoglass's financial structure remains stretched and
Moody's expects that leverage (measured as Moody's-adjusted debt
/EBITDA) will remain between 7.5x and 8.0x in 2018 and in 2019
(from 11.4x in 2016). Moreover, the company's operating
performance remains under pressure, owing to the continued
decline in Ice-Cold Merchandiser (ICM) sales and adverse foreign
currency effects impacting mainly the glass division. In the
first half of 2017, consolidated revenue and reported EBITDA
declined by approximately 10% compared to the same period in
2016. Moody's expect a recovery in EBITDA from 2018, owing to
cost saving measures, but Frigoglass's exposure to emerging
markets and its reliance on the investment decision of few
customers add volatility to its sales, limiting visibility on
future operating performance.

Following the restructuring, Frigoglass will have sufficient
liquidity to cover its needs, including capex. However, cash flow
generation remains weak as evidenced by an expected free cash
flow generation at breakeven in 2018.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the continued uncertainty over the
prospects of a sustainable recovery in the company's operating
performance.

WHAT COULD CHANGE THE RATING - UP/DOWN

Upward pressure on the rating could materialise if Frigoglass's
operating performance improves and its Moody's-adjusted gross
leverage is reduced towards 6.0x and a Moody's-adjusted
EBIT/Interest Expense ratio improves to at least 1x.

Downward pressure could arise from continued material negative
free cash flow, resulting in a deterioration in Frigoglass's
liquidity position, and failure to reduce Moody's adjusted gross
leverage to below 8.0x.

PRINCIPAL METHODOLOGY

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

Incorporated in Greece, Frigoglass has a widespread global
presence, with a focus on countries in both Western and Eastern
Europe, Africa and the Middle East, and Asia and Oceania. The
group produces beverage refrigerators for global players in the
beverage industry, with key customers including Coca-Cola Company
(The) bottlers and major brewers. Truad Verwaltungs A.G.
indirectly owns approximately 45% of Frigoglass and is a long-
term investor in the group. Truad Verwaltungs A.G. is a trust
representing the interests of the Leventis family and no member
has a majority vote.


=============
H U N G A R Y
=============


MFB HUNGARIAN: Moody's Withdraws b2 Baseline Credit Assessment
--------------------------------------------------------------
Moody's Investors Service has affirmed MFB Hungarian Development
Bank Ltd.'s (MFB) Baa3 long-term foreign-currency backed senior
unsecured debt and deposit ratings and its Prime-3 short-term
foreign-currency backed deposit rating. The outlook of the long-
term ratings remains stable. At the same time, Moody's has
withdrawn the bank's standalone baseline credit assessment (BCA)
of b2.

MFB is a 100% state owned development bank and benefits from an
irrevocable state guarantee on its issued bonds, attracted loans
and interbank deposits, as well as replacement costs of currency
and interest rate swaps. As such the rating agency is using an
approach based upon the ability and willingness of the government
to provide timely support, as described in Moody's methodology
concerning Government Related Issuers (GRIs) to derive MFB's
ratings. Previously MFB's ratings were derived using a
combination of Moody's methodologies for GRIs and Banks.

RATINGS RATIONALE

The affirmation of MFB's Baa3 long-term deposit and debt ratings
is driven by the explicit and irrevocable guarantee provided by
the Hungarian state (Baa3 stable) for MFB's aforementioned
financial obligations.

Given that the Hungarian state's guarantee for MFB's
aforementioned liabilities, the bank's ratings qualify for a
credit substitution approach that is based on a full risk
transfer to the guarantor and are therefore positioned at the
same level as the ratings of the guarantor. This approach also
takes into account the bank's (1) unique policy function within
the country with the mandate to support infrastructure
development, agriculture segment and SME's access to finance; (2)
full state ownership; and (3) supervision by the Hungarian
government through delegation of certain members of the Board of
Directors and parliament.

Notwithstanding this approach, the rating agency recognises MFB's
robust capital buffers, with 25.99% total capital adequacy ratio,
the elevated asset risk reflected in a 14% problem loan ratio in
the bank's direct lending portfolio as of year-end 2016, as well
as its moderate profitability and high reliance on market
funding.

WHAT COULD MOVE THE RATINGS UP/DOWN

The issuer rating of MFB would move upwards or downwards in line
with the rating of the government of Hungary given MFB's policy
mandate, its full state ownership and the state guarantee.

LIST OF AFFECTED RATINGS:

-- BACKED LT Bank Deposits (Foreign Currency), Affirmed at Baa3
    Stable

-- BACKED ST Bank Deposits (Foreign Currency), Affirmed at P-3

-- BACKED Senior Unsecured Regular Bond/Debenture (Foreign
    Currency), Affirmed at Baa3 Stable

Outlook Action:

-- Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Government-
Related Issuers published in August 2017.


=============
I C E L A N D
=============


KAUPTHING BANK: Settles Vincent Tchenguiz's GBP2.2-Bil. Lawsuit
---------------------------------------------------------------
Cat Rutter Pooley at The Financial Times reports that property
entrepreneur Vincent Tchenguiz has settled a GBP2.2 billion
lawsuit against Icelandic bank Kaupthing linked to a botched
investigation by the UK anti-fraud agency into the bank's
collapse in the midst of the financial crisis.

According to the FT, the settlement, which is between Kaupthing,
Vincent Tchenguiz and other Tchenguiz Family Trust vehicles and
associated companies, means legal proceedings brought by
Mr. Tchenguiz against accountancy firm Grant Thornton, two of its
partners, a lawyer on the bank's winding-up committee, and
Kaupthing will be withdrawn.

Kaupthing has agreed to make "certain payments" to Vincent
Tchenguiz and the Tchenguiz Family Trust, the FT relates.  The
amounts of the payments and terms of the settlement agreement are
confidential, the FT notes.

Vincent Tchenguiz filed his case in London's Commercial Court in
late 2014 seeking GBP2.2 billion against Grant Thornton,
Steve Akers and Hossein Hamedani who worked for the accountant as
restructuring and forensic investigation specialists, lawyer
Johannes Runar Johannsson and Kaupthing, the FT recounts.

He alleged malicious prosecution and conspiracy by unlawful
means, arguing the defendants were conspirators in a scheme to
pressure him into settling commercial litigation by encouraging
the UK's Serious Fraud Office to open a criminal investigation
into the Tchenguiz brothers, the FT discloses.

                        About Kaupthing Bank

Headquartered in Reykjavik, Iceland Kaupthing Bank --
http://www.kaupthing.com/-- is Iceland's largest bank and among
the Nordic region's 10 largest banking groups.  With operations
in more than a dozen countries, the bank offers a range of
services including retail banking, corporate finance, asset
management, brokerage, private banking, treasury, and private
wealth management.  Kaupthing was created by the 2003 merger of
Bunadarbanki and Kaupthing Bank.  In October 2008, the Icelandic
government assumed control of Kaupthing Bank after taking similar
measures with rivals Landsbanki and Glitnir.

As reported by the Troubled Company Reporter-Europe, on Nov. 30,
2008, Olafur Gardasson, assistant for Kaupthing Bank hf, filed a
petition under Chapter 15 of title 11 of the United States Code
in the United States Bankruptcy Court for the Southern District
of New York commencing the Debtor's Chapter 15 case ancillary to
the Icelandic Proceeding and seeking recognition for the
Icelandic Proceeding as a "foreign main proceeding" under the
Bankruptcy Code and relief in aid of the Icelandic Proceeding.


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


ST. PAUL'S CLO IV: Moody's Assigns B2 Rating to Class E Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to eight classes of notes issued by
St. Paul's CLO IV Designated Activity Company (the "Issuer" or
"St. Paul's CLO IV"):

-- EUR3,500,000 Class X Senior Secured Floating Rate Notes due
    2030, Definitive Rating Assigned Aaa (sf)

-- EUR289,500,000 Class A-1 Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aaa (sf)

-- EUR31,500,000 Class A-2A Senior Secured Floating Rate Notes
    due 2030, Definitive Rating Assigned Aa2 (sf)

-- EUR22,500,000 Class A-2B Senior Secured Fixed Rate Notes due
    2030, Definitive Rating Assigned Aa2 (sf)

-- EUR29,000,000 Class B Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned A2 (sf)

-- EUR24,600,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Baa2 (sf)

-- EUR30,250,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned Ba2 (sf)

-- EUR14,300,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

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

St. Paul's CLO 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 secured senior loans or senior secured bonds and
up to 10% of the portfolio may consist of unsecured senior loans,
second lien loans, high yield bonds and mezzanine loans.

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

In addition to the eight classes of notes rated by Moody's, the
Issuer issued EUR43,410,000 of subordinated notes. Moody's will
not assign rating to this class of notes.

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. ICM's 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.

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

Par Amount: EUR475,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2775

Weighted Average Spread (WAS): 3.50%

Weighted Average Coupon (WAC): 5.0%

Weighted Average Recovery Rate (WARR): 43.0%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3191 from 2775)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2A Senior Secured Floating Rate Notes: -2

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

Class B Senior Secured Deferrable Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3608 from 2775)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

Class A-2A Senior Secured Floating Rate Notes: -3

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

Class B Senior Secured Deferrable Floating Rate Notes: -4

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: -2

Methodology Underlying the Rating Action:

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


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


INTERBANCA SPA: Moody's Hikes Long-Term Deposit Rating to Ba1
-------------------------------------------------------------
Moody's Investors Service has upgraded Interbanca S.p.A.'s
(Interbanca) long-term deposit ratings to Ba1 from B2 and its
long-term Counterparty Risk Assessment (CR Assessment) to Ba1(cr)
from Ba3(cr). The outlook on the long-term deposit ratings
remains stable. Subsequently, the rating agency has decided to
withdraw these ratings together with Interbanca's Not Prime
short-term deposit ratings, Not Prime(cr) short-term CR
Assessment, caa1 standalone baseline credit assessment (BCA) and
b1 adjusted BCA.

RATINGS RATIONALE

Moody's said that the upgrade of the deposit ratings reflects the
unrated parent Banca IFIS S.p.A.'s (Banca IFIS) increased stock
of bail-in-able debt which results from the issuance of EUR300
million senior debt in May 2017 and EUR400 million of
subordinated debt in October 2017. As a result Interbanca's
deposits benefit from a reduced loss-given-failure.

As a domestic subsidiary of Banca IFIS, Moody's assumes, in line
with its methodology, that the resolution of Interbanca would be
undertaken at the consolidated level and hence would involve
Banca IFIS and its other subsidiaries. In a resolution scenario,
junior depositors of Interbanca would rank pari-passu with Banca
IFIS's junior depositors.

Banca IFIS recent issuance of senior and subordinated debt has
reduced the loss-given-failure of Interbanca's deposits. Moody's
considers that, based on the most recent data, the loss given
failure analysis infers that Interbanca's deposits would face
extremely low loss-given-failure. This analysis results in a
three-notch uplift from the b1 adjusted BCA (to be compared to a
one notch below the adjusted BCA previously).

Moody's said the withdrawal of Interbanca's ratings and
assessments follows its merger into its parent Banca IFIS, which
took place on October 23, 2017.

LIST OF AFFECTED RATINGS

Upgrades and will be subsequently withdrawn:

- Long-term Bank Deposits, upgraded to Ba1 Stable from B2 Stable

- Long-term Counterparty Risk Assessment: upgraded to Ba1(cr)
   from Ba3(cr)

Will be withdrawn:

- Baseline credit assessment: caa1

- Adjusted baseline credit assessment: b1

- Short-term Bank Deposits: Not Prime

- Short-term Counterparty Risk Assessment: Not Prime(cr)

Outlook Action:

Outlook remains stable and will be withdrawn

PRINCIPAL METHODOLOGY

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


LOCAT SV: Moody's Lifts Rating on Class C Notes to Ba3
------------------------------------------------------
Moody's Investors Service has upgraded the ratings of Class C
notes in Locat SV S.r.l. - Serie 2006 (LSV4) from B2 (sf) to Ba3
(sf). The rating action reflects the increased levels of credit
enhancement for the affected note as a result of deleveraging.
Moody's has also affirmed the rating of Class B notes at Aa2
(sf).

Issuer: Locat SV S.r.l. - Serie 2006 (LSV4)

-- EUR152M Class B Notes, Affirmed Aa2 (sf); previously on
    Apr 4, 2017 Upgraded to Aa2 (sf)

-- EUR64M Class C Notes, Upgraded to Ba3 (sf); previously on
    Apr 4, 2017 Upgraded to B2 (sf)

Locat SV S.r.l. - Serie 2006 (LSV4) is a static cash
securitization transaction backed by lease receivables belonging
to three different pools: real estate, auto and equipment.

RATINGS RATIONALE

The rating action is prompted by deal deleveraging resulting in
an increase in credit enhancement for the affected tranche C from
3.60% to 8.14% since the last rating action in April 2017.

Moody's has incorporated the sensitivity of the ratings to
borrower concentrations into the quantitative analysis. In
particular, Moody's considered the credit enhancement coverage of
large debtors in the transaction as it shows significant exposure
to large debtors for Class C note. The results of this analysis
limited the potential upgrade of the rating on the Class C note
to Ba3 (sf).

As portfolio performances are in line with Moody's expectations
and given further Class B notes deleveraging, Moody's affirmed
Aa2 (sf) rating due to the country ceiling constraint.

KEY COLLATERAL ASSUMPTIONS

As part of the rating action, Moody's reassessed its default
probability and recovery rate assumptions for the portfolio
reflecting the collateral performance to date.

The performance of the transactions has continued to be stable in
the last year. Total delinquencies as a percentage of current
balance have slightly increased to 3.76% compared to 3.64% a year
prior. Cumulative defaults as a percentage of original balance
have also marginally increased from 10.36% in September 2016 to
10.47% in September 2017.

The current default probability of Locat SV S.r.l. - Serie 2006
(LSV4) is 14.00% of the current portfolio balance and the
assumption for the fixed recovery rate is 45.00%. Moody's has
derived portfolio credit enhancement assumption of 22.90% which,
combined with the revised key collateral assumptions, corresponds
to a coefficient of variation of 47.77%.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating ABS Backed by Equipment Leases and Loans"
published in December 2015.

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties and (4) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the notes' available credit enhancement and
(4) deterioration in the credit quality of the transaction
counterparties.


MOSSI GHISOLFI: Due to Present Restructuring Proposals for Units
----------------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that Mossi Ghisolfi has
120 days, starting Oct. 26, to present debt-restructuring
proposal for all units apart from IBP Srl.

According to Bloomberg, the plan for IBP is due in 60 days.

As reported by The Troubled Company Reporter on Oct. 20, 2017,
ICIS News related that Italian-based polyethylene terephthalate
(PET) producer Mossi Ghisolfi Group filed for an in-court
settlement with its creditors.  The firm filed for "concordato
preventivo" with the Tribunal of Alessandria, in accordance with
article 161 sixth paragraph of the Bankruptcy Law, in order to
ensure equal treatment of creditors, ICIS News disclosed.  This
filing will affect its Mossi & Ghisolfi (M&G), M&G Finanziaria,
Biochemtex, Beta Renewables, Italian Bio Products, IBP Energia,
M&G Polimeri and Acetati Immobiliare companies, ICIS News noted.

Mossi Ghisolfi, founded by the Ghisolfi family in 1953, is famous
for introducing PET, a plastic used for soft drink bottles, in
Italy and across Europe.


SIENA LEASE 2016-2: Moody's Raises Class D Notes Rating to B3
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of Class B
notes, Class C notes and Class D notes on Siena Lease 2016-2
S.R.L. and upgraded the ratings of Class C notes on SIENA PMI
2015 S.r.l.:

Siena Lease 2016-2 S.R.L.:

-- EUR202.5M Class B Notes, Upgraded to Aa3 (sf); previously on
    Apr 4, 2017 Upgraded to A1 (sf)

-- EUR202.5M Class C Notes, Upgraded to Baa3 (sf); previously on
    Apr 4, 2017 Upgraded to Ba1 (sf)

-- EUR251M Class D Notes, Upgraded to B3 (sf); previously on Apr
    4, 2017 Upgraded to Caa1 (sf)

Issuer: SIENA PMI 2015 S.r.l.

-- EUR270.1M Class C Notes, Upgraded to Aa3 (sf); previously on
    Apr 4, 2017 Upgraded to Baa1 (sf)

Siena Lease 2016-2 S.R.L. is a cash securitisation of lease
receivables originated by MPS Leasing & Factoring S.p.A (fully
owned by Banca Monte dei Paschi di Siena S.p.A, rated B3/NP) and
granted to individual entrepreneurs and small and medium-sized
enterprises (SME) domiciled in Italy. SIENA PMI 2015 S.r.l. is a
cash securitisation of loans originated by the banks belonging to
the Banca Monte dei Paschi di Siena Group (MPS) and granted to
individual entrepreneurs and small and medium-sized enterprises
(SME) domiciled mainly in the central and northern regions of
Italy.

RATINGS RATIONALE

The ratings are prompted by the increase in the credit
enhancement (CE) available for the affected tranches due to
portfolio amortization.

CE levels for outstanding tranches have increased since last
rating action in April 2017. Siena Lease 2016-2 S.R.L. Class B
notes credit enhancement levels have increased to 60.3% from
51.2% while for Class C notes have increased to 40.9% from 34.5%
and for Class D have increased to 18.3% from 15.4%. In the case
of SIENA PMI 2015 S.r.l. Class C notes credit enhancement have
increased to 60.6% from 50.2% during the last 6 months.

Eligible investments cap

Current definition of eligible investments for both Siena Lease
2016-2 S.R.L. and SIENA PMI 2015 S.r.l. includes a minimum rating
level at A3. As a result, the maximum achievable rating for Siena
Lease 2016-2 S.R.L. Class B notes and SIENA PMI 2015 S.r.l. Class
C notes based on the methodology is Aa3 (sf) for both tranches.
Please refer to the methodology for further details.
(http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_1038135).

Revision of key collateral assumption

As part of the review, Moody's reassessed its default
probabilities (DP) as well as recovery rate (RR) assumptions
based on updated loan by loan data on the underlying pools and
delinquency, default and recovery ratio update. Moody's
maintained its DP on current balance and Recovery rate
assumptions as well as portfolio credit enhancement (PCE) due to
observed pool performance in line with expectations.

Exposure to counterparties

The rating action took into consideration the notes' exposure to
relevant counterparties, such as servicer and account bank.

Moody's considered how the liquidity available in the
transactions and other mitigants support continuity of notes
payments, in case of servicer default. None of the ratings of the
outstanding classes of either Siena Lease 2016-2 S.R.L. or SIENA
PMI 2015 S.r.l. are constrained by operational risk.

Principal Methodology:

The principal methodology used in rating Siena Lease 2016-2
S.R.L. was "Moody's Approach to Rating ABS Backed by Equipment
Leases and Loans" published in December 2015. The principal
methodology used in rating SIENA PMI 2015 S.r.l. was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in August 2017.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral
that is better than Moody's expected, (2) deleveraging of the
capital structure, (3) improvements in the credit quality of the
transaction counterparties, and (4) reduction in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) performance of the underlying collateral
that is worse than Moody's expected, (2) deterioration in the
notes' available credit enhancement, (3) deterioration in the
credit quality of the transaction counterparties, and (4) an
increase in sovereign risk.


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


TES GLOBAL: S&P Cuts CCR to 'CCC+' on Weak Operating Performance
----------------------------------------------------------------
S&P Global Ratings said that it lowered to 'CCC+' from 'B-' its
long-term corporate credit rating on TES Global Financial
S.a.r.l., the parent company of TES Global Holding Ltd. The
outlook is negative.

S&P said, "We also lowered to 'CCC+' from 'B-' our issue ratings
on the group's senior secured notes. The recovery rating remains
at '4', reflecting our expectation of average recovery (30%-50%,
rounded estimate: 35%) in the event of payment default.

"The downgrade follows our review of TES Global's weakening
operating performance over the past four quarters and our view
that the trend is unlikely to reverse over the next 12 months. As
a result, the group credit metrics have materially deteriorated
and we forecast no improvement over the next 12 months. Hence, we
now view the group's capital structure as unsustainable, despite
no liquidity issue over the next 12 months."

The group's EBITDA contracted particularly on the back of a lower
volume of transactional job advertisements since fourth quarter
2016, down 19% year-on-year in 2017 excluding subscriptions. The
group is also facing a number of external market pressures
including most notably constrained school budgets and increased
regulatory and competitive risk from the U.K. Department for
Education's proposal to implement a free national teacher vacancy
website.

S&P said, "We forecast 2018 S&P Global Ratings-adjusted EBITDA,
to be around GBP31 million-GBP33 million, translating into
company-reported EBITDA after restructuring costs of around GBP35
million-GBP37 million. We estimate that TES Global's adjusted
debt to EBITDA will be above 10x in 2018, with the debt including
the GBP200 million fixed-rate notes due 2020, the GBP100 million
floating-rate notes due 2020, and the shareholder loan we treat
as debt. We view this debt to EBITDA level as unsustainable in
light of the group's weak operating performance and our view of
its deteriorating business risk. We forecast that the EBITDA-
interest-coverage ratio will be below 2.0x over the same period.
Excluding the shareholder loans as debt, our forecast adjusted
debt-to-EBITDA is around 10x in 2018. We anticipate that TES
Global will generate GBP9 million-GBP12 million of free operating
cash flow (FOCF) over the next 12 months and do not foresee any
imminent liquidity issue. The revolving credit facility (RCF) is
currently available to the group for drawing. However, based on
the fourth quarter 2017 management update results, TES is not
able to access the full GBP20 million of limit due to the 30%
springing net leverage covenant set at 7.75x.

"Our view of TES Global's business continues to reflect our
opinion that the group operates in the niche teacher recruitment
market predominately in the U.K., which we view as a mature
market that is exposed to large swings in volumes of job
advertisements. These fluctuations are generally related to the
perception of teacher job security and opportunities, ultimately
the level of teacher churn, demographics, and regulatory and
macro-economic conditions among other factors.

"In our view, other factors constraining TES Global's rating are
the group's limited geographic diversification and its relatively
high fixed-cost base. We note that the continued transition from
print to online in the jobs business is also supressing yield,
with non-subscription yield down 6% year-on-year at end-2017. We
understand revenues in the teacher supply and agency business
were up around 1% in 2017 on a like-for-like basis, with this
business providing a complimentary service in the teacher
recruitment market, albeit at a lower margin than the core job
advertisements business.

"We also note that the U.K. Department for Education's proposal
for a new free national teacher vacancy website has progressed,
with indications of development build in 2018. In our opinion,
there remain many unknown factors around final timing, nature,
and operation of the proposal. Nonetheless, we view this
development and progress as a heightened risk to TES.

"We acknowledge the continued progress of TES Global's
subscription offer, which aims to mitigate the group's exposure
to transactional adverts and provide more visibility on earnings.
We note that the subscription model is yet to provide meaningful
offset to transactional job declines, with run rate subscriptions
revenue around GBP25 million at end-2017 and actual in force
recurring subscription revenues of GBP19.6 million. This
represents subscription penetration of around 33% of English
secondary schools, with the subscription model exhibiting current
renewal rates of around 87%.

"We also note TES Global's leading market position in the U.K.
teacher recruitment market, with a stated greater-than-80% market
share in the print and online teacher job advertisement market.
We also view the group's online resources marketplace, although
not currently profitable, as a differentiator to other teacher
job advertisement competitors. Indeed, we understand site traffic
growth is up 18% for the resources site and 20% for the job site,
year-on-year as of third-quarter 2017."

In S&P's base case for TES Global, it assumes:

-- U.K. GDP growth of 2.9% in 2017 and 0.9% in 2018.

-- Typically TES Global's revenue has been uncorrelated to GDP
    growth and we forecast flat revenue in 2018 (no growth).

-- S&P Global Ratings-adjusted EBITDA of around GBP31 million-
    GBP33 million in 2018. Adjusted EBITDA margin of around 20%-
    25% in financial year ending Aug. 31, 2018 (FY2018).

-- Capital expenditure (capex) of around GBP6 million-GBP7
    million for FY2018.

-- Earnouts and deferred consideration payments of around GBP5.0
    million in FY2018.

-- Flat (no movement in) year-end working capital movement in
    FY2018.

Based on these assumptions, S&P arrives at the following credit
measures for fiscal year 2018:

-- Adjusted debt to EBITDA above 10x.
-- EBITDA interest coverage of 1.5x-2.0x.

S&P said, "The negative outlook on TES Global reflects our view
of a heightened risk that it will underperform our base case and
of continued external market pressures facing the group. Given
the current leverage, we view the current capital structure as
unsustainable. Importantly, we anticipate that TES Global will
continue to report positive FOCF and maintain adequate liquidity
in the next 12 months.

"We could consider lowering the ratings if TES Global's operating
performance deteriorated further over the next 12 months,
resulting in a flagging liquidity position or a further weakness
in earnings. If TES Global were to buy back its outstanding debt
instruments below par, although we understand this is not its
intention, we could also consider a downgrade.

"We could take positive action if the group showed positive
sustainable improvement in operating performance and its adjusted
EBITDA recovers, leading to EBITDA interest coverage sustainably
above 2.0x, alongside sustainable growing positive FOCF. In
addition, we could take this action if TES Global showed reduced
refinancing risk."


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


FIRST COLLECTION: S&P Alters Outlook to Stable & Affirms 'B-' ICR
-----------------------------------------------------------------
S&P Global Ratings said that it has revised its outlook on
Russia-based First Collection Bureau (FCB) to stable from
negative. S&P affirmed its 'B-' long-term issuer credit rating on
the company.

S&P said, "The outlook revision reflects positive dynamics that
we've observed in FCB's performance. In particular, FCB has
closed a significant one-time on-balance-sheet transaction that
had put significant pressure on leverage and raised questions
about its management and governance. In addition, we believe that
FCB has largely integrated its previous acquisition (National
Recovery Service) and, after last year's weak performance, will
show improving EBITDA, margins, and revenues in 2017-2018.

"We also note that FCB has actively worked on deleveraging,
including through early repayment of some of its outstanding
debt. We believe that FCB's debt to EBITDA will decrease to 2.0x-
2.5x by the end of 2017 after an extremely high 90x in 2016. We
understand that management intends to keep leverage at this
level. However, we would need to see a longer track record before
reassessing FCB's cash flow and leverage.

"We view as positive management's efforts to improve FCB's
performance, and note the consistency of its strategy with
organizational capabilities, as well as the ability to track and
control execution of strategy.

"Our assessment of FCB's business risk profile continues to
reflect our view of high country and industry risks to which the
group is exposed, as well as FCB's leading positions in Russia's
distressed-debt collection market. We note that FCB is starting
to benefit from somewhat stronger economic conditions in Russia,
including improved payment patterns, some growth of real
disposable household incomes, and resumed credit activity.
Nevertheless, regulatory pressure remains high, and the court-
collection system, which is an important tool for the industry,
is less effective than in developed countries.

"In our analysis, we note FCB's shareholder structure, where
Baring Vostok -- a large equity fund -- owns the majority of
shares. We classify this structure as financial-sponsor
ownership, which would cap our assessment of the company's
financial policy even if its leverage and cash flow metrics
improve in the future.

"We don't believe FCB's liquidity profile is currently under
pressure, but its capital structure is concentrated. FCB is
funded by a mix of Russian ruble bonds that mature in 2018-2021.
We understand that a significant amount of these bonds is held by
Orient Express Bank, which is ultimately controlled by Baring
Vostok. The largest outstanding bond of Russian ruble 1.8 billion
(about $30 million) starts to amortize in July 2019. FCB does not
have any bullet redemptions before that. We believe that FCB will
aim to amortize some of its funding at lower interest rates,
considering the favorable interest rate environment.

"The combination of the abovementioned factors leads us to derive
a group credit profile (GCP) of 'b-' for the wider FCB group,
which we use as the starting point for our assessment of FCB's
creditworthiness. We consider FCB to be a core subsidiary of the
FCB group, which owns 100% of FCB. FCB is the group's key asset
in the distressed debt-purchase segment. We therefore equalize
our ratings on FCB with our assessment of the GCP.

"The stable outlook on FCB reflects our view that the group will
adequately manage its liquidity to ensure timely debt servicing
in the next 12 months, and gradually improve its credit metrics.

"We would lower our rating on FCB if we see that it is becoming
vulnerable to nonpayment and depends on favorable business,
financial, and economic conditions to meet its financial
obligations, because of lower cash flow or higher leverage.

"We could consider a positive rating action if we believed that
improvements in FCB's credit metrics were permanent, FCB
maintained debt to EBITDA consistently below 5x, and risks of
significant leverage increase were diminishing. We could also
consider positive rating actions if FCB diversifies its funding
mix and funding base with less dependence on one creditor."


IG SEISMIC: Moody's Withdraws Caa1 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of IG Seismic
Services Plc (IGSS), the leading seismic services company in
Russia. At the time of withdrawal the ratings were: corporate
family rating of Caa1 and probability of default rating of Caa3-
PD. The ratings have had a stable outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

Domiciled in Cyprus and headquartered in Moscow, Russia, IGSS is
the Russia's largest seismic services company. The company
provides high-quality seismic data acquisition, data processing
and interpretation services to a diversified client base, and has
a foothold in all major oil and gas provinces in the country.


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

The affirmation and Stable Outlook reflect Fitch's unchanged
baseline scenario regarding expected consolidation of the
region's sound operating performance, stabilisation of debt
metrics and a narrowing budget deficit over the medium-term.

KEY RATING DRIVERS

The 'BB' ratings reflect Stavropol's track record of satisfactory
budgetary performance with an operating balance more than
covering interest payments and moderate debt with a high
proportion of low-cost budget loans. The ratings also take into
account persistent refinancing pressure, below the national
median of socio-economic metrics and a weak institutional
framework for Russian subnationals.

Fitch expects the operating balance will consolidate at 11%-13%
of operating revenue in 2017-2019 (2016: 11.2%), supported by
moderate expansion of the tax base on the back of Russia's
economic recovery and an increase of current transfers from the
federal budget. The latter is mostly the result of a new approach
to general-purpose grants allocation, which will increase 30% yoy
for Stavropol in 2017.

During 8M17 Stavropol has collected 66% of its revenue budgeted
for the full year and incurred only 57% of its full-year budgeted
expenditure, which resulted in an interim budget surplus of
almost RUB6 billion. However, Fitch projects that seasonal
acceleration of expenditure in 4Q17 will likely turn the positive
interim result into a moderate full-year deficit of close to 2.5%
of total revenue. Fitch also expects only small budget deficits
before debt in 2018-2019 while the administration aims to balance
its budget, which will limit the region's borrowing requirements.

Fitch expects the region's direct risk will stabilise at around
45% of current revenue over the medium-term. During 8M17 the
region's direct risk decreased to RUB28 billion from RUB38.5
billion. Low-cost budget loans dominated total debt at 60% as of
1 September 2017; issued debt represented another 30% while the
remainder was bank loans.

As with most of its national peers, Stavropol remains exposed to
refinancing pressure with 66% of maturities due in 2017-2019. The
weighted average life of debt at three years as of 1 September
2017 was lower than the region's direct risk-to-current balance
ratio of 5.5 years in 2016. Positively, the region replaced
costly bank loans due in 2018-2019 with low-cost budget loans,
which will result in material interest savings. Moreover, parts
of the region's budget loans will be restructured with more
favourable repayment terms according to a recent federal
government decision. The refinancing needs for end-2017 amount to
a low RUB1.5 billion and could easily be covered by liquidity,
including RUB14.2 billion of unutilised credit lines as of 1
September 2017.

Stavropol's socio-economic profile is historically weaker than
that of the average Russian region. Its economy is dominated by
agriculture, food processing and the chemicals industry. Its GRP
per capita in 2015 was 66% of the national median. The region's
administration expects the local economy will start to recover
gradually in 2017 after a period of contraction in 2015-2016.
Fitch expects the Russian economy will grow 2% in 2017, and
similar growth for the region.

Russia's institutional framework for subnationals is a constraint
on the region's ratings. Frequent changes in both the allocation
of revenue sources and the assignment of expenditure
responsibilities between the tiers of government limit
Stavropol's forecasting ability and negatively affect the
republic's strategic planning, as well as debt and investment
management.

RATING SENSITIVITIES
Maintaining its sound operating performance and extending its
debt repayment profile that leads to the direct risk-to-current
balance ratio moving towards the weighted average life of the
region's debt could lead to an upgrade of Stavropol.

A consistently weak operating balance that is insufficient to
cover interest expense, coupled with an increase in direct risk
above 60% of current revenue, could lead to a downgrade.


TVER REGION: Fitch Withdraws BB- Long-Term IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has withdrawn Russian Tver Region's 'BB-' Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) with
Stable Outlooks and the region's 'B' Short-Term Foreign-Currency
IDR.

Tver region's outstanding senior unsecured domestic bonds' rating
of 'BB-' has also been withdrawn.

KEY RATING DRIVERS
Fitch has chosen to withdraw Tver's ratings for commercial
reasons. As Fitch does not have sufficient information to
maintain the ratings, accordingly, the agency has withdrawn the
region's ratings without affirmation and will no longer provide
ratings or analytical coverage for Tver Region.

RATING SENSITIVITIES
Not applicable


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


UKRAINE: Fitch Affirms B- Long-Term IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Ukraine's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'B-' with a Stable Outlook.

KEY RATING DRIVERS
Ukraine's ratings reflect weak external liquidity, a high public
debt burden and structural weaknesses, in terms of a weak banking
sector, institutional constraints and geopolitical and political
risks. These factors are balanced against improved policy
credibility and coherence, the sovereign's near-term manageable
debt repayment profile and a track record of bilateral and
multilateral support.

International reserves continue to increase reaching USD18.5
billion in September, the highest level since the end of 2013,
driven by external disbursements and residents' use of FX assets.
Ukraine's external buffers remain weaker than 'B' peers (3.5
months of CXP). Increased exchange rate flexibility, manageable
foreign-currency commitments and moderate external imbalances
mitigate near-term pressures on international reserves. FX
controls still cushion external liquidity, although they continue
to be gradually eased.

Near-term financing risks are limited, as sovereign debt
repayments remain manageable due to the 2015 debt restructuring,
the high proportion of domestic debt held by public sector
institutions and multilateral support. USD1.59 billion in cash in
Ukraine's treasury and domestic FX liquidity provides the
sovereign with space to bridge gaps in external disbursements in
the short term. Ukraine has also actively pursued liability
management operations, mostly with the central bank, to ease its
debt repayment profile and extend maturities over coming years.

Ukraine returned to international debt markets for the first time
since 2013 placing USD3 billion Eurobonds (net USD1.3 billion
financing after repurchasing USD1.7 billion securities, 44%
participation rate, coming due in 2019-2020). The breathing space
provided by the 2015 restructuring ends in September 2019, as
Ukraine faces USD1.6 billion in external amortisations. External
bond amortisations average USD2.3 billion in 2020 and 2021. In
additional to market sentiment, Fitch believes that continued
engagement with the IMF and multilateral partners is fundamental
to maintain access to external markets.

As with previous reviews, the completion of the fourth review
under the IMF EFF has been delayed. Although pension reform (a
key condition) was approved and signed into law in early October,
the heavily amended version has yet to be signed-off by
multilateral partners. In addition, the government needs to put
in place legislation on privatisation and the fight against
corruption. Fitch expects the next programme tranche (possibly
USD1.9 billion) next year after the approval of the 2018 budget
and an agreement between the IMF and the government regarding
changes to the formula to adjust household heating tariffs.
Further disbursements from the IMF and other international
partners will depend on progress in the structural reform agenda,
most notably land reform and delivering results in terms of
privatisation and the fight against corruption, which is subject
to delays and execution risks as the 2019 electoral season picks
up pace.

Gross external financing needs (current account balance plus
public and private sector maturities) have eased but will average
a high 70% of international reserves in 2018-2019. Fitch expects
the current account deficit to increase to 4.1% of GDP in 2017
and average 4% in 2018-2019. In the short term, material net
external borrowing by the private sector and a strong pick-up in
FDI are unlikely, meaning borrowing by the public sector will
provide the bulk of external financing.

Inflation will average 12.9% and finish 2017 above the National
Bank of Ukraine's (NBU) target band of 8%-2% due to supply shocks
(food prices). However, it is likely to decline gradually over
the forecast period and average 7.8% in 2019, still above the 5%
'B' median. Ukraine's strengthened policy framework is
underpinned by increased exchange rate flexibility, the NBU's
commitment to sustainably lowering inflation, and moderate fiscal
imbalances. The delay in the appointment of a new NBU governor
has not led to policy uncertainty due to improved institutional
capacity, recovering domestic confidence and favourable external
environment.

Growth will likely remain weaker than 'B' rated peers, despite a
forecast recovery. Fitch forecast growth at 2% for 2017 and
expects Ukraine to accelerate to 3.2% and 3.7% in 2018 and 2019,
respectively, driven by domestic demand. Private consumption
benefits from improvement in real incomes and increased access to
credit. Investment (21.4% of GDP) is experiencing a cyclical
recovery, but it will remain below 'B' peers (24%).

Ukraine will record a lower general government deficit (2.7% of
GDP) than peers (4.7%) in 2017. Expenditure pressures from wages
and benefits, and potential fiscal loosening before elections
create risks for the government's deficit target of 2.2% in 2019.
Fitch expects deficits to average 2.8% of GDP in 2018-2019. On
the back of primary surpluses, reduced financial sector outlays
and moderate FX depreciation, Fitch forecasts general government
debt to peak at 71.5% of GDP (83.3% including guarantees) this
year, and to decline, for the first time since 2007, to 67.3% in
2018, still above the 58.5% 'B' median. Debt dynamics remain
subject to currency risks (68% FX denominated).

The financial system is stable but weak. It continues to
represent a contingent liability for the sovereign due to the
large state presence (56% of total assets after the
nationalisation of Privatbank). Total bank recapitalisation and
clean-up costs between 2013 and 2017 are estimated at UAH401
billion (14.3% of 2017 GDP). Loan portfolio quality is weak, as
NPLs account for 57% of total loans. NPLs net of provisions
equalled 13% of total loans in H117. Deposit and credit
dollarisation have declined to 42% (from 46.9% end-2016) and 44%
(from 49.3%), respectively.

Despite significant progress in macro stabilisation, energy,
pensions and the fight against corruption, political risks for
the reform agenda stem from powerful vested interests, fragmented
political forces, rising populist voices and the slow recovery
after a deep crisis. Presidential and parliamentary elections are
scheduled for 2019, increasing the political cost of reforms.

The unresolved conflict in eastern Ukraine remains a risk for
overall macroeconomic performance and stability. There are
constant clashes along the contact line, but a material
escalation of hostilities is not part of Fitch base case
scenario. The USD3 billion outstanding debt dispute with Russia
is in the English Court of Appeals. Fitch does not expect the
resolution of the debt dispute to impair Ukraine's capacity to
access external financing and meet external debt service.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Ukraine a score equivalent to a
rating of 'CCC' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LT FC IDR by applying its QO, relative
to rated peers, as follows:

- Macro: +1 notch, to reflect Ukraine's strengthened monetary and
exchange rate policy which will support improved macroeconomic
performance and domestic confidence. Increased exchange rate
flexibility allows the economy to absorb shocks without depleting
reserves

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three year
centred averages, including one year of forecasts, to produce a
score equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within
Fitch criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES
The Stable Outlook reflects Fitch's assessment that upside and
downside risks to the rating are currently balanced. Nonetheless,
the following risk factors could, individually or collectively,
trigger negative rating action:
- Re-emergence of external financing pressures and increased
   macroeconomic instability, for example stemming from delays to
   disbursements from, or the collapse of, the IMF programme.

- External or political/geopolitical shock that weakens
   macroeconomic performance and Ukraine's fiscal and external
   position.

The main factors that, individually or collectively, could
trigger positive rating action are:
- Increased external liquidity and external financing
   flexibility.
- Improved macroeconomic performance and sustained fiscal
   consolidation leading to improved debt dynamics.

KEY ASSUMPTIONS
Fitch expects neither resolution of the conflict in eastern
Ukraine nor escalation of the conflict to the point of
compromising overall macroeconomic performance.

Fitch assumes that the debt dispute with Russia will not impair
Ukraine's ability to access external financing and meet external
debt service commitments.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR affirmed at 'B-'; Outlook Stable
Long-Term Local-Currency IDR affirmed at 'B-'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Short-Term Local-Currency IDR affirmed at 'B'
Country Ceiling affirmed at 'B-'
Issue ratings on long-term senior-unsecured foreign-currency
bonds affirmed at 'B-'
Issue ratings on long-term senior-unsecured local-currency bonds
affirmed at 'B-'
Issue ratings on short-term senior-unsecured local-currency bonds
affirmed at 'B'


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


FREIGHT BOOKS: Put Under Control of Provisional Liquidator
----------------------------------------------------------
Russell Jackson at The Scotsman reports that independent Scottish
publisher Freight Books, which lists Irvine Welsh among its
authors, is under the control of a provisional liquidator as it
looks to be saved.

The Glasgow-based company has faced months of uncertainty
following the resignation of co-founder Adrian Searle who quit
around six months ago, The Scotsman relates.

Freight is now controlled by Ian Wright of WRI Associates, having
been appointed Provisional Liquidator of Freight Design
(Scotland) Limited on Oct. 20 following a court order, The
Scotsman discloses.

Although not formally in liquidation all six employees' contract
have been terminated according to a statement reported by The
Herald, with authors concerned about rights and royalties, The
Scotsman relays.


HBOS PLC: Sants Agrees to Give Evidence About Lloyds Rescue
-----------------------------------------------------------
Jane Croft at The Financial Times reports that Hector Sants, who
headed the former UK financial regulator during the 2008 crisis,
has agreed to give evidence in public in a High Court trial about
the controversial rescue of HBOS by Lloyds Bank.

According to the FT, Sir Hector had been given permission by a
High Court judge to give evidence in secret during a GBP550
million court case where Lloyds and five ex-directors are being
sued by Lloyds shareholders.  The investors claim they were not
told of HBOS' stricken financial position before approving the
acquisition, the FT discloses.  Lloyds and the former directors
deny the claims, the FT notes.

Following an open justice intervention by Guy Vassall-Adams QC on
behalf of five media organizations including the FT, Sir Hector
has now agreed to give his evidence in public.  He is due to
testify for a day in December, the FT relays.


SHOP DIRECT: Fitch Affirms 'B+(EXP)' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Shop Direct Limited's (SDL) Long-Term
Issuer Default Rating (IDR) at 'B+(EXP)' with a Stable Outlook.
Fitch has also affirmed Shop Direct Funding plc's planned GBP550
million senior secured notes at 'B+(EXP)'/'RR4'. The final rating
is contingent upon the receipt of final documents conforming to
information already received by Fitch.

The affirmation reflects the increased financial headroom within
the current rating supported by the lower planned debt issuance
and reduced level of uncertainty regarding the large near-term
shareholder distributions. The 'B+(EXP)' IDR still reflects
management's track record of implementing a coherent and
successful strategy with limited execution risks, leading to a
robust business model with a solid presence in online retail, and
a commercial offer enabled by consumer finance. Such features,
mitigated by moderate scale and limited geographic
diversification indicate a business profile commensurate with the
'BB' rating category.

The rating remains constrained at 'B+' due to high Fitch-adjusted
funds from operations (FFO) net leverage of 5.0x at financial
year-end June 2017 (FYE17) and Fitch expectation of neutral to
mildly positive free cash flow (FCF). In light of the downsized
bond issuance, Fitch expects FFO adjusted net leverage to stay
around 5.1x by FYE19 (instead of Fitch prior expectation of 5.6x)
and fall to 4.7x in FY21 under the assumption of improving sales
and largely stable profit margins despite the uncertainties
around Brexit on consumer confidence, FX and interest rates.

KEY RATING DRIVERS

Captive Client Base, Online Retail: SDL provides wholly owned
consumer financing as a complementary core offering to its online
general merchandise retail operations. Its profitable consumer
finance operations (from loans given to captive retail customers)
allow spending on operating, IT and marketing costs to support
retail sales volume growth in a symbiotic way. Fitch views this
feature as supportive of the company's superior business model
but it exposes the group to non-bank financial institution-type
risks, namely receivable asset quality through the economic
cycle, and funding/liquidity for that purpose.

Growing Very Offsets Declining Littlewoods: SDL has increased its
share of the UK retail market despite competition from
traditional retailers with increasing online presence and pure-
play internet providers (eg Amazon, ASOS and Boohoo). This is
critically driven by the success of Very. However, Fitch's
positive view of SDL's market position is offset by management's
conscious decision to manage the decline of the Littlewoods
brand, focusing on profit and cash optimisation, and its sole
presence in the UK's highly competitive market with a number of
innovations in retail technology and ways of reaching customers.

Profitability Supported by Asset-Light Structure:  SDL has solid
profitability adjusted for consumer financing based on Fitch
criteria relative to pure internet retailers of comparable scale.
SDL is capable of generating adequate profits and healthy FCF
from its inherently asset-light structure dominated mainly by
distribution centres and consumer interface technological
platforms. SDL also benefits from a relatively flexible cost
structure with variable costs representing around 66% of total
costs, which enables the company to maintain profits during
periods of volatility.

The EBITDAR margin is lower than bricks-and-mortar retailers but
this is mitigated by better cash conversion. Payment Protection
Insurance (PPI) -related exceptional costs and the securitisation
interest are incurred purely by Shop Direct Finance Company
Limited (SDFC). SDFC income is generated largely by Very as 80%
of Littlewoods' sales are on interest-free terms. Moreover, the
FCA has confirmed that the deadline for PPI complaints has been
set at 29 August 2019 providing some visibility, especially
beyond this point.

SDFC Funding and Liquidity Constraints: Most of the group's debt
is secured despite the strong cash-flow generation capabilities
at group level and the lack of meaningful debt maturities. The
encumbered nature of the assets reduces financial flexibility in
Fitch view, particularly at the SDFC level.

Pricing Mitigates High Impaired Receivables: SDL's asset quality
is relatively weak, despite improving, as indicated by a four-
year average of impaired and non-performing loans of 11.2%, which
translates to a 'b'/'bb' rating for asset quality under Fitch's
non-bank financial institution criteria. This reflects SDL's
targeted customer base at the medium/lower end of the credit
spectrum and is mitigated by adequate pricing, reflecting a
degree of pricing power, and limited variability in SDL's asset
quality indicators since 2009. Risk management procedures,
including write-off and provisioning policies, are sound.

Sustainable Leverage Following Refinancing: Following the
issuance of GBP550million bonds, FFO adjusted net leverage
(reflecting a proxy of retail-only cash flows and Fitch-adjusted
debt) is likely to stay around 5.1x in FYE19 , and fall towards
4.7x in FY21 mainly due to improving sales and Fitch's
conservative view of largely stable profit margins. However, this
assumes a relatively benign though subdued macroeconomic
environment during Brexit, as well as a maximum of GBP50 million
to be distributed to shareholders before September 2018 as
indicated by management. Such leverage is high but acceptable for
the 'B+' rating given the solid business profile.

Adjustments Follow Hybrid Business Model: "In our approach we
make adjustments by stripping out the results of SDFC to achieve
a proxy for retail cash flows available to servicing debt at SDL.
In our analysis we also deconsolidate the GBP1.3 billion non-
recourse securitisation financing outside of the group under
SDFC. This securitisation debt is core to the group's consumer
financing offer and is repaid by the collection of receivables
predominantly originated from retail," Fitch says.

"However, on the basis of our view of below-average asset quality
and funding and liquidity constraints for SDFC, we add back
GBP274 million of debt to SDL's retail operations. This is
because we consider a hypothetical equity injection from the
rated entity to SDFC (GBP274 million) to attain a capital
structure for SDFC that would require no cash calls to support
finance service operations over the rating horizon."

Adequate Financial Flexibility: "We expect FFO fixed charge cover
ratio will remain strong and above 3.0x over the rating horizon
facilitated by the low use of operating leases and a robust
business profile. In addition, financial flexibility at group
level is supported by the lack of meaningful debt maturities over
the next four years and access to enlarged GBP150 million
revolving credit facilities to support operational needs," Fitch
says.

Some Commitment to Deleveraging: "Management and the group's
owners may remain opportunistic about further shareholder
distributions in future, but we assume that dividend
distributions will depend on future financial performance. SDL's
governance structures are weaker than those of its listed peers,
with concentrated ownership and some lack of transparency or
independent oversight," Fitch says.

"This could translate into misalignment between shareholders and
creditors' interests over time. However, SDFC's board has three
non-executive directors among its six members. We assess
financial transparency as adequate even though SDL conducts
related-party transactions with affiliate logistics entities
Yodel and Arrow XL. These contracts run until 2022, though they
are on an arm's-length basis."

DERIVATION SUMMARY

The asset base is inherently different from other traditional
retailers as over 50% of the group's consolidated total assets
are related to trade receivables. This compares with a 4%
equivalent figure for Marks and Spencer Group plc (BBB-/Stable)
or 6% for New Look Retail Group Ltd (CCC). Financial services
income is driven by the retail customer base, with over 95% of
transactions made with credit accounts (interest bearing or
interest free).

The cost base is also different from that of traditional
retailers, with a focus on online retail operations and its
client base and without any meaningful fixed assets or operating
leases. This is reflected in a stronger EBITDAR-based profit
margin conversion into FCF after dividends. SDL's dedicated
online retail activities are largely made possible by consumer
finance operations via intra-group sale/purchase of receivables.
This is an unusual corporate business arrangement but it helps
support the company's commercial proposition.

SDL's product and service offering to clients is very compelling
relative to key competitor Amazon, Inc. or pure online fashion
retailers such as Bohoo and ASOS. SDL also benefits from an
efficient distribution infrastructure, with the lowest picking
costs and an established online platform without duplication of
costs/capex compared to M&S, New Look or other bricks-and-mortar
retailers with expanding online presence.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:
- annual retail revenue growth rate averaging 3.2% by FY20 over
   the rating horizon;
- retail-only EBITDA margin reaching 11.5% in FY18, then
   gradually falling, reflecting weaker gross margin to help
   recruit customers in a more subdued macroeconomic environment;
- capex/revenue ratio of around 4%;
- pension contribution of GBP15 million a year until 2021
   recorded as other items before FFO;
- non-operating/non-recurring cash outflows mainly related to
   distribution centres, debt refinancing;
- GBP50 million shareholder distribution assumed by Fitch in
   FY18.

KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that SDL would be considered a
going concern in bankruptcy and that the company would be
reorganised rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going-Concern Approach

"We follow a going-concern approach for our recovery analysis as
we expect a better valuation in distress than liquidating the
assets (and extinguishing the securitisation debt) after
satisfying trade payables. Our analysis focuses on a surviving
online retailer with consumer finance structured differently
(joint venture or owned by a third-party bank), and therefore a
corporate," Fitch says.

"We use our proxy retail-only EBITDA of GBP80.8 million excluding
marketing contribution from SDFC. We also strip out the GBP1.3
billion non-recourse securitisation financing outside the group
under SDFC as we assume that consumer finance can be arranged or
structured by a third-party bank or in a joint venture after
restructuring.

"We apply an 8% discount to EBITDA, which results in stabilised
post-restructuring EBITDA of GBP74 million. We use a 5.0x
distressed enterprise value/EBITDA multiple, reflecting the
growing online retail and technology platform and competitive
position enabled by consumer finance, which mitigates the lack of
tangible asset support. Retail peers such as M&S conduct consumer
finance activities in a JV where financing is effectively
provided by external party bank.

"Therefore in a hypothetical distressed situation a relatively
undamaged asset-light online retail brand with adjacent (instead
of core) consumer financing could realise 5.0x post-restructuring
EBITDA in our view.

"For the debt waterfall we assumed a fully drawn super senior
revolving credit facility of GBP100 million and GBP4.3 million of
debt located in non-guarantor entities. This debt ranks ahead of
the planned bonds. After satisfaction of these claims in full,
any value remaining would be available for noteholders (GBP550
million) and a GBP50 million pari passu revolving credit facility
issued by Shop Direct Funding plc. This translates into an
instrument rating for the proposed bonds of 'B+(EXP)'/'RR4'/38%."

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- FFO adjusted net leverage (reflecting a proxy of retail-only
   cash flows and Fitch-adjusted debt) consistently below 4.5x
   (FY17: 5.0x)
- Improvement in the business model through increasing
   diversification and scale, and a proven track record of
   strategy implementation over the medium term, leading to a
   retail-only FFO margin sustainably above 8% (FY17: 8.7%) and
   continuing positive FCF generation through the cycle with FCF
   margin in the low to mid positive single digits
- Significant improvements in asset-quality metrics translating
   into improved profitability within SDFC
- Maintenance of solid FFO fixed charge cover and ample
   liquidity cushion

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Inability or lack of commitment to bring FFO adjusted net
   leverage (as adjusted by Fitch) below 5.5x over the rating
   horizon
- Weak business growth (neutral to mildly positive sales growth)
   and profitability under more challenging market conditions in
   the UK reflected in FFO margin below 7%
- Neutral to positive FCF before exceptional dividend
   distributions over the rating horizon along with FFO fixed-
   charge cover metrics below 3.0x
- Deterioration in SDL's asset quality negatively affecting its
   SDFC profitability and cash flows, and ultimately its ability
   to support its retail activities through SDFC's profitability

LIQUIDITY

Comfortable Liquidity: Sufficient availability exists under the
enlarged committed credit lines (GBP150 million) and headroom
under covenants to temporarily cover short-term liquidity
requirements for operational needs. SDL will benefit from a
comfortable level of liquidity comprising readily available cash
of GBP117 million as of FYE17 and Fitch's expectation of at least
mildly positive FCF.

FULL LIST OF RATING ACTIONS

Shop Direct Limited
-- Long-Term IDR: Affirmed at 'B+(EXP)'
Shop Direct Funding plc
-- Senior secured notes: Affirmed at 'B+(EXP)/RR4'



                            *********

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-
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