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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

          Thursday, November 9, 2017, Vol. 18, No. 223


                            Headlines


F R A N C E

REXEL SA: S&P Assigns 'BB-' Rating to EUR500MM Sr. Unsec. Notes


G R E E C E

NAVIOS HOLDINGS: S&P Rates $300MM Senior Secured Notes 'B-'


I R E L A N D

BLUEMOUNTAIN FUJI II: S&P Affirms B- (sf) Rating on Class F Notes
CLAVIS SECURITIES 2006-01: Fitch Affirms B Ratings on 8 Tranches
GRAND CANAL: Moody's Assigns (P)Ba3 Rating to Class D Notes
OCP EURO 2017-2: Moody's Assigns (P)B2 Rating to Cl. F Notes


I T A L Y

ALITALIA SERVIZI: Dec. 1 Deadline Set for Belac Stake Offers
COOPERATIVA TABACCHI: Nov. 27 Irrevocable Purchase Bid Deadline
GESTHOTELS SPA: Receivers Put Tower Hotel Genova Up for Sale


L U X E M B O U R G

BEFESA SA: S&P Assigns Prelim 'BB-' CCR, Outlook Stable
CORESTATE CAPITAL: S&P Assigns 'BB+' Corporate Credit Rating


N E T H E R L A N D S

PEARL MORTGAGE 1: Fitch Affirms 'Bsf' Rating on Class B Notes


S P A I N

FERROVIAL SA: S&P Rates Subordinated Capital Securities 'BB+'
HAYA REAL ESTATE: S&P Assigns Prelim 'B-' CCR, Outlook Stable
IM EVO: Moody's Assigns (P)Ba2 Rating to Series B 2017-1 Notes


U N I T E D    K I N G D O M

FOUR SEASONS: Major Creditor Rejects Restructuring Plan
HARKAND GULF: November 17 Proofs of Claim Filing Deadline Set
MONARCH AIRLINES: No Right to Sell Airport Slots, Court Rules
MONARCH AIRLINES: Wizz Air Boss Eyes Luton Airport Slots


                            *********



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


REXEL SA: S&P Assigns 'BB-' Rating to EUR500MM Sr. Unsec. Notes
---------------------------------------------------------------
S&P Global Ratings said that it had assigned its 'BB-' issue
rating and '5' recovery rating to the EUR500 million proposed
senior unsecured notes due in 2025 to be issued by France-based
electrical supplies distributor Rexel S.A. The '5' recovery
rating indicates S&P's expectation of modest recovery prospects
(15%) for debtholders in the event of a payment default.

The recovery rating of '5' reflects the notes structural
subordination to sizable prior-ranking liabilities (the four
securitization programs and several other credit facilities at
subsidiary level), combined with a significant amount of
unsecured and unguaranteed debt, limited protection offered to
noteholders, no restricted payments covenants, and reliance on
payments from subsidiaries to service its obligations under the
notes. S&P estimates recovery prospects at 15%, which provides
limited headroom in the current recovery rating.

The issue and recovery ratings on the proposed notes are based on
preliminary information and are subject to their successful
issuance and our satisfactory review of the final documentation.
Rexel intends to use the proceeds of the proposed notes to redeem
the existing EUR500 million senior unsecured notes maturing in
2022. S&P expects the proposed notes' documentation to be fully
in line with that for the existing ones.

Additional debt will remain constrained only by a standard
minimum 2.0x incurrence-based interest coverage ratio under the
notes, with significant carve-outs and permitted debt baskets.
The documentation will come without a restricted-payments
covenant, which S&P views as negative. The documentation for the
company's revolving credit facility includes a 3.50x net total
leverage covenant, tested semi-annually, which can be breached
three times: twice for a maximum 3.75x and once for a maximum of
3.90x. The cross-default and acceleration provisions threshold
will remain in excess of EUR100 million.

S&P said, "In our hypothetical default scenario, we assume
sustained economic slowdowns and increased competitive pressures
in North and South America as well as Asia, leading to declining
demand, shrinking distribution margins, and deteriorated payment
discipline that will materially reduce Rexel's cash generation.
We believe that this, combined with deteriorated capital markets
and liquidity pressure, would prevent the company from
refinancing or repaying its debt when it is due and trigger a
payment default in or before 2022.

"We value Rexel as a going concern, reflecting our view of the
company's leading market positions and wide customer and end-
market diversification."

Simulated default assumptions:

-- Year of default: 2022

-- Jurisdiction: France

-- Emergence EBITDA (after recovery adjustments): EUR317 million

    ---Minimum capital expenditures (capex) at 0.5%

    ---Cyclicality adjustment is +10%, in line with the specific
       industry sub-segment

    ---Operational adjustment: 10%, for further minimum capex
       need around 0.7% of sales (according  to historical
       evidence and the company's expectations)

-- EBITDA multiple: 6.0x

-- Simplified recovery waterfall: Gross recovery value: EUR1,901
    Million

-- Net recovery value for waterfall after administrative
    expenses (5%): EUR1,806 million Estimated priority claims:
    EUR1,463 Million

-- Unsecured debt claims: about EUR2,281 million

-- Recovery prospects: 15%

    --Recovery rating: 5


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


NAVIOS HOLDINGS: S&P Rates $300MM Senior Secured Notes 'B-'
-----------------------------------------------------------
S&P Global Ratings assigned its 'B-' issue rating and '4'
recovery rating to the proposed $300 million senior secured notes
due 2022 to be issued by Navios Holdings Inc. (Navios Holdings;
B-/Stable/--). The company will use the proceeds to refinance
$291 million outstanding under its $350 million senior unsecured
notes due 2019. The issue rating is subject to our review of the
final issuance documents.

S&P said, "In addition, we affirmed our 'B-' rating and '3'
recovery rating on the company's existing $650 million first
priority ship mortgage notes due January 2022.

"We also affirmed our 'CCC' issue rating on the company's
existing senior unsecured notes due 2019. The recovery rating on
these notes is unchanged at '6'. We expect to withdraw the
ratings on the unsecured notes after they have been fully repaid
with the proceeds from the proposed secured notes.

"At the same time, we affirmed our 'B-' long-term corporate
credit rating on Navios Holdings. The outlook remains stable. For
our corporate credit rating rationale, see "Research Update:
Navios Maritime Holdings Outlook Revised To Stable On Improved
Liquidity; 'B-' Rating Affirmed," published May 29, 2017, on
RatingsDirect."

RECOVERY ANALYSIS

Key analytical factors

-- S&P has updated its recovery analysis to account for the
    proposed secured notes and planned refinancing of the
    existing unsecured notes.

-- The '4' recovery rating on the proposed $300 million senior
    secured notes indicates our expectation of average (30%-50%)
    recovery in the event of a payment default (rounded estimate:
    45%)." The company will use the proceeds to refinance $291
    million outstanding under its $350 senior unsecured notes due
    2019. The existing unsecured notes are rated 'CCC' with a
    recovery rating of '6', reflecting our expectation of
    negligible recovery (0%-10%) in the event of a payment
    default (rounded estimate: 0%).

-- The proposed notes will be exclusively secured by the common
    stock owned by Navios Holdings in each of its
    affiliates/subsidiaries: a 20.845% stake in Navios Maritime
    Partners L.P. (Navios Partners; including a 2% general
    partner interest), a 46.185% stake in Navios Maritime
    Acquisition Corp. (Navios Acquisition), a 63.825% stake in
    Navios South American Logistics Inc. (Navios Logistics), and
    a 9.9% stake in Navios Maritime Containers Inc. (Navios
    Containers).

-- Thus, the proposed secured notes will not share collateral
    with the existing $650 million first priority ship mortgage
    noteholders and bank lenders, which will instead hold a
    junior claim over these equity stakes and be entitled only to
    any residual value after the holders of the proposed notes in
    the waterfall.

-- The issue and recovery ratings on Navios Holdings' $650
    million first priority ship mortgage notes remain unchanged
    at 'B-' and '3', respectively. The expected recovery will
    nevertheless weaken to 50% (from 65%) after the proposed
    secured notes' issuance because the ship mortgage notes will
    no longer benefit from the additional value of Navios
    Holdings' equity stakes in affiliates/subsidiaries, given
    that they will be pledged to the proposed secured notes.

-- The proposed secured notes' documentation will mirror the
    existing ship mortgage notes' terms for general debt and
    restricted payment carve-outs, which S&P continues to view as
    weak. This is due to the absence of maintenance covenants and
    significant carve-outs for debt and dividends, with floating
    nonguarantor and general debt baskets starting at $75 million
    and $125 million, respectively, and fixed secured debt
    baskets of $600 million and $200 million for the ship
    mortgage and proposed secured notes, respectively, among
    others. Additional debt, excluding carve-outs, is subject to
    only a minimum 2.0x incurrence-based fixed-charge coverage
    ratio (with additional flexibility for mergers and
    acquisitions), and dividends are limited to a maximum of
    $0.15 per share per quarter. The documentation also includes
    a $30 million cross-acceleration provision to the group's
    debt.

-- The proposed secured notes' documentation prevents any
    collateral sharing, unlike the existing ship mortgage notes.
    The proposed secured notes' additional permitted secured debt
    basket of $200 million will need to be secured by additional
    assets if the company wants to use it, unlike the ship
    mortgage notes, where an additional $600 million secured debt
    basket could be secured by its existing collateral (pledges
    over 22 ships).

-- The proposed notes come with a springing maturity offer that
    will prevent Navios Holdings from refinancing or repaying the
    proposed secured notes ahead of the ship mortgage notes, and
    force it to purchase the ship mortgage notes at 100% plus
    accrued and unpaid interest if the latter are not refinanced
    before Sept. 5, 2021.

-- S&P said, "In our default scenario, we assume a prolonged dry
    bulk shipping industry downturn following sluggish demand for
    commodities from emerging markets, such as China and India,
    and sustained vessel oversupply, keeping charter rates below
    their operating cost breakeven. We believe that this,
    combined with underutilization of vessels, would squeeze cash
    flow and impede the company's ability to service its debt,
    triggering a payment default in or before 2019."

-- S&P said, "We use a going-concern approach because we believe
    the business would retain more value as an operating entity
    and be reorganized in a bankruptcy scenario. Individual ships
    and equity stakes, however, could be sold to generate
    liquidity. We consequently use a discrete asset valuation to
    evaluate the recovery prospects associated with the
    underlying assets, on the basis of deteriorated second-hand
    vessel market values and discounted equity stakes' values.

-- S&P said, "We discount the equity stakes' values because of
    their significant volatility over the industry cycle. We also
    believe that financial distress at Navios Holdings would
    affect the equity values of all Navios-group companies and
    the liquidity of these equity stakes in the capital markets."
    This is because of interlocking business relationships
    between Navios Holdings and the affiliates/subsidiaries
   (namely, Navios Acquisition, Navios Partners, Navios
    Containers, and Navios Logistics), and Navios Holdings'
    ability to influence these entities and the potential for
    upstream support. Furthermore, a severe prolonged downturn in
    commodities' trading and a drop in commodities' prices would
    have a corresponding impact on the stock values of, in
    particular, (i) Navios Partners because its 37-vessel fleet
    comprises 30 dry bulkers and it generates the majority of its
    EBITDA from dry bulk shipping, and (ii) Navios Logistics
    because the company would face a drop in volumes and earn
    lower rates from barges/pushboats, storage, and transshipment
    facilities.

Simulated default assumptions

-- Year of default: 2019
-- Jurisdiction: U.S.
-- Gross enterprise value at default: about $663 million

Simplified waterfall(pro forma for the proposed secured notes)

Pool A - $650 million first priority ship mortgage notes (and
credit facilities)

-- Pool A gross enterprise value share at default: about 75%
-- Administrative costs: 10%
-- Net value available to creditors: about $450 million
-- Secured debt claims (1): about $869 million
-- Recovery expectation (2): 50%-70% (rounded estimate: 50%)

Pool B - $300 million proposed secured notes

-- Pool B gross enterprise value share at default: about 25%
-- Administrative costs: 5%
-- Net value available to creditors: about $155 million
-- Secured debt claims (1): about $312 million
-- Recovery expectation (2): 30%-50% (rounded estimate: 45%)

[1] All debt amounts include six months of prepetition interest.
[2] Rounded down to the nearest 5%.

RATING LIST

  New Rating
  Navios Maritime Holdings Inc.
   Senior Secured (proposed)          B-
    Recovery Rating                   4 (45%)

  Ratings Affirmed
                                       To             From
  Navios Maritime Holdings Inc.
  Corporate Credit Rating              B-/Stable/--   B-/Stable/-
   Senior Secured                      B-             B-
    Recovery Rating                    3 (50%)        3 (65%)
   Senior Unsecured                    CCC            CCC
    Recovery rating                    6 (0%)         6 (0%)


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


BLUEMOUNTAIN FUJI II: S&P Affirms B- (sf) Rating on Class F Notes
-----------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on BlueMountain
Fuji EUR CLO II DAC's class A, B, C, D, E, and F notes following
the transaction's effective date as of Sept. 22, 2017.

Most European cash flow collateralized loan obligations (CLOs)
close before purchasing the full amount of their targeted level
of portfolio collateral. On the closing date, the collateral
manager typically covenants to purchase the remaining collateral
within the guidelines specified in the transaction documents to
reach the target level of portfolio collateral. Typically, the
CLO transaction documents specify a date by which the targeted
level of portfolio collateral must be reached. The "effective
date" for a CLO transaction is usually the earlier of the date on
which the transaction acquires the target level of portfolio
collateral, or the date defined in the transaction documents.
Most transaction documents contain provisions directing the
trustee to request the rating agencies that have issued ratings
upon closing to affirm the ratings issued on the closing date
after reviewing the effective date portfolio (typically referred
to as an "effective date rating affirmation").

S&P said, "An effective date rating affirmation reflects our
opinion that the portfolio collateral purchased by the issuer, as
reported to us by the trustee and collateral manager, in
combination with the transaction's structure, provides sufficient
credit support to maintain the ratings that we assigned on the
transaction's closing date. The effective date reports provide a
summary of certain information that we used in our analysis and
the results of our review based on the information presented to
us.

"We believe the transaction may see some benefit from allowing a
window of time after the closing date for the collateral manager
to acquire the remaining assets for a CLO transaction. This
window of time is typically referred to as a "ramp-up period."
Because some CLO transactions may acquire most of their assets
from the new issue leveraged loan market, the ramp-up period may
give collateral managers the flexibility to acquire a more
diverse portfolio of assets.

"For a CLO that has not purchased its full target level of
portfolio collateral by the closing date, our ratings on the
closing date and prior to our effective date review are generally
based on the application of our criteria to a combination of
purchased collateral, collateral committed to be purchased, and
the indicative portfolio of assets provided to us by the
collateral manager, and may also reflect our assumptions about
the transaction's investment guidelines. This is because not all
assets in the portfolio have been purchased.

"When we receive a request to issue an effective date rating
affirmation, we perform quantitative and qualitative analysis of
the transaction in accordance with our criteria to assess whether
the initial ratings remain consistent with the credit enhancement
based on the effective date collateral portfolio. Our analysis
relies on the use of CDO Evaluator to estimate a scenario default
rate at each rating level based on the effective date portfolio,
full cash flow modeling to determine the appropriate percentile
break-even default rate at each rating level, the application of
our supplemental tests, and the analytical judgment of a rating
committee. (For more information on our criteria and our
analytical tools, see "Global Methodologies And Assumptions For
Corporate Cash Flow And Synthetic CDOs," published on Aug. 8,
2016.)

"On an ongoing basis after we issue an effective date rating
affirmation, we will periodically review whether, in our view,
the current ratings on the notes remain consistent with the
credit quality of the assets, the credit enhancement available to
support the notes, and other factors, and take rating actions as
we deem necessary."

  RATINGS LIST

  BlueMountain Fuji EUR CLO II DAC
  EUR358.7 Million Senior Secured And Deferrable Floating-Rate
  Notes (Including EUR35.8 Million Unrated Notes)

  Ratings Affirmed

  Class            Rating
  A                AAA (sf)
  B                AA (sf)
  C                A (sf)
  D                BBB (sf)
  E                BB (sf)
  F                B- (sf)


CLAVIS SECURITIES 2006-01: Fitch Affirms B Ratings on 8 Tranches
----------------------------------------------------------------
Fitch Ratings has upgraded three tranches of the Clavis RMBS
series and affirmed the others:

Clavis Securities plc Series 2006-01
Class A3a ISIN(XS0255457706); affirmed at 'Bsf'; Outlook Stable
Class A3b ISIN(XS0255438748); affirmed at 'Bsf'; Outlook Stable
Class M1a ISIN(XS0255424441); affirmed at 'Bsf'; Outlook Stable
Class M1b ISIN(XS0255439043); affirmed at 'Bsf'; Outlook Stable
Class M2a ISIN(XS0255425414); affirmed at 'Bsf'; Outlook Stable
Class B1a ISIN(XS0255425927); affirmed at 'Bsf'; Outlook Stable
Class B1b ISIN(XS0255440728); affirmed at 'Bsf'; Outlook Stable
Class B2a ISIN(XS0255426818); affirmed at 'Bsf'; Outlook Stable


Clavis Securities plc Series 2007-01
Class A3a ISIN(XS0302268361); affirmed at 'AAAsf'; Outlook Stable
Class A3b ISIN(XS0302269096); affirmed at 'AAAsf'; Outlook Stable
Class Aza ISIN(XS0302268445); affirmed at 'AAAsf'; Outlook Stable
Class M1a ISIN(XS0302269682); affirmed at 'AAsf'; Outlook Stable
Class M1b ISIN(XS0302270854); affirmed at 'AAsf'; Outlook Stable
Class M2a ISIN(XS0302270185); affirmed at 'Asf'; Outlook Stable
Class M2b ISIN(XS0302271662); affirmed at 'Asf'; Outlook Stable
Class B1a ISIN(XS0302270268); upgraded from 'BBBsf' to 'BBB+sf';
Outlook Stable
Class B1b ISIN(XS0302271829); upgraded from 'BBBsf' to 'BBB+sf';
Outlook Stable
Class B2 ISIN(XS0302270342); upgraded from 'BB+sf' to 'BBB-sf';
Outlook Stable
Class A3b currency swap obligation; affirmed at 'AAAsf'; Outlook
Stable
Class M2b currency swap obligation; affirmed at 'Asf'; Outlook
Stable
Class B1b currency swap obligation; upgraded from 'BBBsf' to
'BBB+sf'; Outlook Stable

KEY RATING DRIVERS
Strong Asset Performance
The affirmations reflect the strong performance of both
transactions, with loans that are in arrears by three months or
more compared to their respective current pool balances
decreasing from 2.9% and 4.8% at end-June 2016 for CL6 and CL7 to
2.8% and 4.4% respectively as at end-June 2017. The upgrades
reflect the ability of the tranches to withstand stresses
associated with the higher rating levels.

Pro Rata Payments
Due to the strong performance, the pro rata conditions are
currently being met in both transactions. As such, future credit
enhancement (CE) build-up will be limited. The credit enhancement
increased from for CL6 from 31.9% to 32.6% and for CL7 from 35.7%
to 36.4%.

Short-Dated Note Maturity
Fitch has conducted further analysis by testing different
prepayment scenarios. In Fitch's analysis the ability of the
transaction to make repayments to the class A3a and A3b notes by
the legal final maturity date is primarily constrained by Fitch
low prepayment rate assumption. This assumption is not usually a
key rating driver because the notes' legal final maturity dates
extend beyond the scheduled loan maturity dates. Under Fitch's
standard low prepayment rate assumption, the class A3a and A3b
notes are not fully repaid by legal final maturity.

In its analysis, for the 'Bsf' rating scenario Fitch instead
applied a low prepayment rate assumption of 11.5% (but higher
than Fitch standard prepayment assumption) based on observed
performance in the past year. In such a scenario the class A3a
and A3b notes are expected to be repaid by the legal final
maturity date. The application of an alternative low prepayment
rate assumption is a variation to the criteria.

The ability of the transaction to make repayment on the class A3a
and A3b notes by the legal final maturity date will also depend
on the extent to which the small number of loans scheduled to
mature after the legal final maturity date are subject to default
and prepayment relative to the loans in the pool that are
scheduled to mature prior to the legal final maturity date.

Counterparty Remedial Action Taken
The Royal Bank of Scotland Group plc (RBS, 'BBB+'/'F2') in its
role of currency swap provider in Clavis 2007-1 (CL7), was
downgraded in May 2015, below the threshold necessary to support
'AAAsf' note ratings. RBS is presently posting collateral that is
sufficient to satisfy Fitch's current criteria.

Interest-Only Concentration
The transactions have a material concentration of interest-only
(IO) loans maturing within a three-year period during the
lifetime of the transaction. In line with its criteria, Fitch
carried out a sensitivity analysis assuming an increased default
probability for these loans. No rating action was deemed
necessary as a result of the interest-only loan concentration.
Nevertheless, Fitch will keep monitoring this risk as the
transactions continue to amortise.

Currency Swap Obligations
The affirmation of the A3b and M2b currency swap obligations and
upgrade of the B1b currency swap obligation for CL7 are based on
Fitch's view that the swap payment obligations rank pro rata and
equally with the referenced notes. Consequently, the credit
profiles of the currency swap payment obligations are consistent
with the long-term rating on the referenced notes.

VARIATIONS FROM CRITERIA

As specified in the key rating drivers, the Clavis 06 class A3
notes are exposed to maturity risk. Under Fitch's standard low
prepayment rate assumption the Class A3a and Class A3b notes are
not fully repaid by legal final maturity. In its analysis, for
the 'Bsf' rating scenario Fitch instead applied a low prepayment
rate assumption of 11.5% based upon observed performance in the
past year. In this scenario the Class A3a and Class A3b notes are
expected to be repaid by the legal final maturity date.

RATING SENSITIVITIES

If the proportion of the pool scheduled to amortise after 2031 in
CL6 falls to 0%, the notes may be upgraded beyond the current
ratings.

In CL7, the 'AAAsf' notes are dependent on RBS posting
collateral. If the amounts posted drop below the amounts required
to support 'AAAsf' note ratings under Fitch's current criteria,
the notes may be downgraded.


GRAND CANAL: Moody's Assigns (P)Ba3 Rating to Class D Notes
-----------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to the following notes to be issued by Grand Canal Securities 2
DAC:

EUR [*] Class A Mortgage Backed Floating Rate Notes due December
2058, Assigned (P)A2 (sf)

EUR [*] Class B Mortgage Backed Floating Rate Notes due December
2058, Assigned (P)Baa3 (sf)

EUR [*] Class C Mortgage Backed Floating Rate Notes due December
2058, Assigned (P)Ba1 (sf)

EUR [*] Class D Mortgage Backed Floating Rate Notes due December
2058, Assigned (P)Ba3 (sf)

Moody's has not assigned ratings to EUR [*] Class E1, EUR [*]
Class E2, EUR [*] Class E3, EUR [*] Class P and EUR [*] Class F
Mortgage Backed Notes due December 2058.

This transaction represents the third securitisation transaction
that Moody's rates in Ireland that is backed by non-performing
loans ("NPL"). The assets supporting the notes are performing
loans ("PLs") and NPLs extended to borrowers in Ireland.

The portfolio is serviced by Mars Capital Finance Ireland DAC
("Mars Capital"; NR). Mars Capital performs the role of the
special servicer in this transaction delegating the primary
servicing to Acenden Limited (NR).

RATINGS RATIONALE

Moody's ratings reflect an analysis of the characteristics of the
underlying pool of the PLs and NPLs, sector-wide and servicer-
specific performance data, protection provided by credit
enhancement, the roles of external counterparties, and the
structural integrity of the transaction.

At the pool cut off date (June 30, 2017) the provisional pool
amounts to EUR[542,401,703]. In order to estimate the cash flows
generated by the pool Moody's has split the pool into PLs and
NPLs.

In analysing the PLs, Moody's determined the MILAN Credit
Enhancement (CE) of [42]% and the portfolio Expected Loss (EL) of
[17.0]%. The MILAN CE and portfolio EL are key input parameters
for Moody's cash flow model in assessing the cash flows for the
PLs.

MILAN CE of [42]%: this is above the average for other Irish RMBS
transactions and follows Moody's assessment of the loan-by-loan
information taking into account the historical performance and
the pool composition including (i) the high weighted average
current loan-to-value (LTV) ratio based on the original property
value as of the loan advance date of [113.9]% and indexed LTV of
[125.4]% of the total pool and (ii) the inclusion of restructured
loans.

Portfolio expected loss of [17]%: This is above the average for
other Irish RMBS transactions and is based on Moody's assessment
of the lifetime loss expectation for the pool taking into account
(i) the historical collateral performance of the loans to date,
as provided by the seller; (ii) the current macroeconomic
environment in Ireland, (iii) benchmarking with similar Irish
RMBS transactions and (iv) the inclusion of restructured loans.

In order to estimate the cash flows generated by the NPLs,
Moody's used a Monte Carlo based simulation that generates for
each property backing a loan an estimate of the property value at
the sale date based on the timing of collections.

The key drivers for the estimates of the collections and their
timing are: (i) the historical data received from the servicer;
(ii) the timings of collections for the secured loans based on
the legal stage a loan is located at; (iii) the current and
projected house values at the time of default and (iv) the
servicer's strategies and capabilities in maximising the
recoveries on the loans and in foreclosing on properties.

Hedging: As the collections from the pool are not directly
connected to a floating interest rate, a higher index payable on
the notes would not be offset with higher collections from the
NPLs. The transaction therefore benefits from an interest rate
cap, linked to one-month EURIBOR, with HSBC Bank plc (Aa3/ P-1/
Aa2(cr)/ P-1(cr)) as cap counterparty. The notional of the
interest rate cap is equal to the closing balance of the class A,
B, C and D notes. The cap expires five years from closing.

Coupon cap: The transaction structure features coupon caps that
apply when five years have elapsed since closing. The coupon caps
limit the interest payable on the notes in case of rising
interest rates following the expiration of the interest rate cap.

Transaction structure: The provisional Class A note size is
[44.6]% of the total collateral balance with [55.4]% of credit
enhancement provided by the subordinated notes. The payment
waterfall provides for full cash trapping: as long as Class A is
outstanding, any cash left after replenishing the Class A reserve
will be used to repay Class A. The transaction benefits from an
amortising Class A reserve equal to [3.0]% of the Class A note
outstanding balance. The Class A reserve can be used to cover
senior fees and interest payments on Class A. The amounts
released from the Class A reserve form part of the available
funds in the subsequent interest payment date and thus will be
used to pay the servicer fees and/or to amortise Class A. The
Class A reserve would be sufficient to cover around [15] months
of interest on the Class A notes and more senior items, at the
strike price of the cap. Class B benefits from a dedicated Class
B interest reserve equal to [7.0]% of Class B balance at closing
which can only be used to pay interest on Class B while Class A
is outstanding. The Class B interest reserve is sufficient to
cover around [33] months of interest on Class B, assuming EURIBOR
at the strike price of the cap. Class C benefits from a dedicated
Class C interest reserve equal to [12.0]% of Class C balance at
closing which can only be used to pay interest on Class C while
Classes A and B are outstanding. The Class C interest reserve is
sufficient to cover around [41] months of interest on Class C,
assuming EURIBOR at the strike price of the cap. Class D benefits
from a dedicated Class D interest reserve equal to [15.0]% of
Class D balance at closing which can only be used to pay interest
on Class D while Classes A, B and C are outstanding. The Class D
interest reserve is sufficient to cover around [40] months of
interest on Class D, assuming EURIBOR at the strike price of the
cap. Unpaid interest on Class B, C and Class D is deferrable with
interest accruing on the deferred amounts at the rate of interest
applicable to the respective note.

Servicing disruption risk: Intertrust Finance Management
(Ireland) Limited (NR) is the back-up servicer facilitator in the
transaction. The back-up servicer facilitator will help the
issuer to find a substitute servicer in case the servicing
agreement with Mars Capital is terminated. Moody's expect the
Class A reserve to be used up to pay interest on Class A in
absence of sufficient regular cashflows generated by the
portfolio early on in the life of the transaction. It is
therefore likely that there will not be sufficient liquidity
available to make payments on the Class A notes in the event of
servicer disruption. In addition, the servicer fee due senior in
the waterfall is capped at [0.40]% and increases to [0.48]% in
case the servicing agreement with Mars Capital is terminated. The
senior servicing fee cap could make it more difficult for the
back-up servicer facilitator to find a substitute servicer
willing to service the portfolio under these conditions. The
insufficiency of liquidity in conjunction with the lack of a
back-up servicer mean that continuity of note payments is not
ensured in case of servicer disruption. This risk is commensurate
with the single-A rating assigned to the most senior note.

Moody's Parameter Sensitivities: The model output indicates that
if on the non-performing pool house price volatility were to be
increased to 7.10% from 5.91% and it would take an additional 12
months to go through the foreclosure process with no changes on
the performing pool assumptions the Class A notes would move to
A3. Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.

The principal methodology used in these ratings was "Moody's
Approach to Rating Securitisations Backed by Non-Performing and
Re-Performing Loans" published in August 2016.

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

Factors that may lead to an upgrade of the ratings include that
the recovery process of the NPLs produces significantly higher
cash flows realised in a shorter time frame than expected and a
better than expected performance on the PLs.

Factors that may cause a downgrade of the ratings include
significantly less or slower cash flows generated from the
recovery process on the NPLs and a worse than expected
performance on the PLs compared with Moody's expectations at
close due to either a longer time for the courts to process the
foreclosures and bankruptcies or a change in economic conditions
from Moody's central scenario forecast or idiosyncratic
performance factors. For instance, should economic conditions be
worse than forecasted, falling property prices could result, upon
the sale of the properties, in less cash flows for the Issuer or
it would take a longer time to sell the properties and the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the rating.
Additionally counterparty risk could cause a downgrade of the
rating due to a weakening of the credit profile of transaction
counterparties. Finally, unforeseen regulatory changes or
significant changes in the legal environment may also result in
changes of the ratings.

The ratings address the expected loss posed to investors by the
legal final maturity. In Moody's opinion the structure allows for
timely payment of interest and ultimate payment of principal with
respect to the Class A notes by the legal final maturity date,
and ultimate payment of interest and principal with respect to
Classes B, C and D by legal final maturity. Moody's ratings
address only the credit risks associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

Moody's issues provisional ratings in advance of the final sale
of securities, but these ratings only represent Moody's
preliminary credit opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavour
to assign definitive ratings to the Notes. A definitive rating
may differ from a provisional rating. Moody's will disseminate
the assignment of any definitive ratings through its Client
Service Desk. Moody's will monitor this transaction on an ongoing
basis. For updated monitoring information, please contact
monitor.rmbs@moodys.com.


OCP EURO 2017-2: Moody's Assigns (P)B2 Rating to Cl. F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by OCP EURO
CLO 2017-2 Designated Activity Company:

-- EUR245,400,000 Class A Senior Secured Floating Rate Notes due
    2032, Assigned (P)Aaa (sf)

-- EUR59,200,000 Class B Senior Secured Floating Rate Notes due
    2032, Assigned (P)Aa2 (sf)

-- EUR26,200,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2032, Assigned (P)A2 (sf)

-- EUR22,300,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2032, Assigned (P)Baa2 (sf)

-- EUR24,100,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2032, Assigned (P)Ba2 (sf)

-- EUR13,200,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2032, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2032. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Onex Credit
Partners, LLC acting through the collateral sub manager Onex
Credit Partners Europe LLP (together "Onex Credit Partners"), has
sufficient experience and operational capacity and is capable of
managing this CLO.

OCP EURO CLO 2017-2 Designated Activity Company is a managed cash
flow CLO. At least 90.0% of the portfolio must consist of senior
secured loans and senior secured bonds and up to 10.0% of the
portfolio may consist of unsecured obligations, second-lien
loans, mezzanine loans and high yield bonds. The bond bucket
gives the flexibility to OCP EURO CLO 2017-2 Designated Activity
Company to hold bonds if Volcker Rule is changed. The portfolio
is expected to be approximately 60% ramped up as of the closing
date and to be comprised predominantly of corporate loans to
obligors domiciled in Western Europe.

Onex Credit Partners 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 six classes of notes rated by Moody's, the
Issuer will issue EUR46.8M of subordinated notes, which will not
be rated.

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

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

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

Loss and Cash Flow Analysis:

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

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

Par amount: EUR425,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2750

Weighted Average Spread (WAS): 3.40%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.0 years.

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. Given the portfolio
constraints and the current sovereign ratings in Europe, such
exposure may not exceed 10% of the total portfolio with exposures
to countries with local currency country risk ceiling of Baa1 to
Baa3 further limited to 5%. As a worst case scenario, a maximum
5% of the pool would be domiciled in countries with A3 and a
maximum of 5% of the pool would be domiciled in countries with
Baa3 local currency country ceiling each. The remainder of the
pool will be domiciled in countries which currently have a local
currency country ceiling of Aaa or Aa1 to Aa3. Given this
portfolio composition, the model was run with different target
par amounts depending on the target rating of each class as
further described in the methodology. The portfolio haircuts are
a function of the exposure size to peripheral countries and the
target ratings of the rated notes and amount to 0.75% for the
Class A Notes, 0.50% for the Class B Notes, 0.38% for the Class C
Notes and 0% for classes D, E and F.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional 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.

Change in WARF: WARF + 15% (to 3163 from 2750)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: 0

Class B Senior Secured Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes.-2

Class E Senior Secured Deferrable Floating Rate Notes: 0

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3575 from 2750)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

Class B Senior Secured Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -3

Class D Senior Secured Deferrable Floating Rate Notes.-2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -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
=========


ALITALIA SERVIZI: Dec. 1 Deadline Set for Belac Stake Offers
------------------------------------------------------------
Prof. Avv. Stefano Ambrosini Prof. Avv. Gianluca Brancadoro Prof.
Dott. Giovanni Fiori, The Extraordinary Commissioners of Alitalia
Servizi S.p.A. in A.S., disclosed that the Company has received
from a possible purchaser a binding offer for the purchase of the
5,27% of shareholding, held in the corporate capital of Belac
LLC, based in USA, for a price of US$300,000 the "Purchase
Offer").  The Italian Ministry of Economic Development, upon
consultation with the Supervisory Committee, through its decision
dated October 16, 2017, has authorized the sale of the
shareholding through private negotiation, subject to the prior
search on the market for any potential better binding offers.
Therefore, the Extraordinary Commissioners invite any party
interested in the purchase of the above shareholding to submit a
binding offer which, subject to the penalty of exclusion, must be
higher than the price indicated in the Purchase Offer, plus any
additional tax as per the applicable laws, and supported by a
guarantee.  In the event of any higher binding purchase offer
duly submitted, the Extraordinary Commissioners, in a public
meeting, will require the offerors to submit increased offers,
for not less than US$10,000 starting from the highest offered
price.  In the event of lack of any higher valid purchase offer
and/or increased offers, the Extraordinary Commissioners hereby
give notice that they will enter private negotiations with the
party which has submitted the Purchase Offer.  Neither offers on
behalf of third parties nor for persons to be designated are
allowed.  Binding offers from the interested parties must be
received no later than 12:00 Italian time on December 1, 2017,
and the exam of such offers will take place starting from 10:00
Italian Time on December 5, 2017, at the presence of the Italian
public notary.  Upon request, the interested parties may have
access to the virtual data room concerning the shareholding
starting from the date of publication of this notice up to the
deadline for the submission of the binding offers.  The full text
of this notice is published, in Italian and English language, on
the website www.alitaliaamministrazionestraordinaria.it together
with all the documents relating to the participation to the sale
procedure.


COOPERATIVA TABACCHI: Nov. 27 Irrevocable Purchase Bid Deadline
---------------------------------------------------------------
Delegate Judge Dr. Pierpaolo Lanni, by decree of October 23,
2017, has ordered the opening of the competitive procedure under
art. 163 bis L.F. regarding Cooperativa Tabacchi Verona a r.l.,
briefly described a follows:

Real estate in Salizzole, used as an office and as a tobacco
processing plant with related processing facilities, in addition
to office furniture and related electronic equipment, carts and
forklifts, figurative mark, internet domains, contracts and
employment relationships with 32 employees;

The company is currently leased and it will be delivered within
three months from the notice of definitive transfer in favor of
the successful tenderer.

The warehouse is not included in the Company.

The sale price in a single lot cannot be less than
EUR5,490,000, which can be paid in 42 monthly installments.  As a
guarantee of the deferred part of the price, there is a retention
of title on the property that compose the company, the transfer
of which will take place with the payment of the last installment
of the price.

Taxes and fees all borne by the successful tenderer.

The analytical composition of the Company and of the assets and
contractual relations included therein are detailed and described
further in the documentation that the Judicial Commissioner
(studiolegale@studiocinti.com) will make available, subject to a
prior written notice of interest by the applicant and the signing
of a commitment of confidentiality.

Now therefore, it is hereby stated:

Invitation to submit irrevocable purchase bid on the Company,
with the methods and under the terms and conditions set forth in
the decree of October 23, 2017, by Delegate Judge Lanni and
summarized below (the full version is published on the internet
portal www.tribunale.verona.giustizia.it):

A. Completion of the competitive procedure for the sale of the
Company will take place on November 28, 2017 at 1:00 p.m. at the
Court of Verona, Delegate Judge Lanni

B. In order to participate in the competition, you must submit an
irrevocable purchase bid in a closed envelope by 12:00 p.m. on
November 27, 2017, at the Chancellery of the Court of Verona, at
the minimum price of not less than EUR5,490,000 with a non-
transferable bank cheque payable to "Cooperativa Tabacchi Verona
in Concordato Preventivo" of EUR120,000 as a security deposit as
well as another cheque of EUR387,180, payable as above, as a
guarantee of the payment of the taxes due by the buyer upon the
signing of the purchase and sale agreement.

C. In the event of several valid offers, the competition will
continue only between those who have submitted a valid offer,
assuming as the auction base the price quoted in the highest
valid offer with a minimum raise of EUR50,000.


GESTHOTELS SPA: Receivers Put Tower Hotel Genova Up for Sale
------------------------------------------------------------
Elena Bernardi, Simone Manfredi and Marco Sogaro, the Official
Receivers of Gesthotels S.p.A. under Extraordinary Administration
and Grandi Hotel S.r.l. under Extraordinary Administration,
following authorization by the MISE, having received a binding
bid for the purchase of the "Tower Hotel Genova" business unit at
the price of EUR500,000 and the absorption of no. 28 units, call
interested parties to submit their expressions of interest within
ten days from October 30, 2017, therefore their improved binding
bids, within the time limits and in accordance with the
procedures set out in the tender specifications available on the
websites www.astagesthotels.it and www.astagrandihotel.it


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


BEFESA SA: S&P Assigns Prelim 'BB-' CCR, Outlook Stable
-------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'BB-'
long-term corporate credit rating to Befesa S.A., the new parent
company of leading European steel and aluminum waste recycling
services company Befesa Medio Ambiente. The outlook is stable.

S&P said, "We also assigned our preliminary 'BB-' rating to the
two main instruments of the refinancing package -- a EUR526
million term loan B and a EUR75 million revolving credit facility
(RCF) -- both to be issued by Befesa S.A. The preliminary
recovery rating is '3', indicating our expectation of meaningful
recovery prospects (50%-70%; rounded estimate: 65%) for creditors
in the event of a payment default.

"At the same time, we placed the 'B' ratings on Befesa Zinc and
its immediate parent company, Bilbao Luxemburg, on CreditWatch
with positive implications. We also placed the 'B' issue-level
rating on Befesa Zinc's EUR300 million senior secured notes --
issued by special-purpose vehicle Zinc Capital S.A. -- and our
'CCC+' rating on Bilbao's EUR150 million payment-in-kind (PIK)
toggle notes on CreditWatch positive.

"Final ratings will depend on our receipt and satisfactory review
of all final transaction documentation. Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, we reserve the
right to withdraw or revise our ratings. Potential changes
include, but are not limited to, utilization of proceeds,
maturity, size and conditions of the new debt, financial and
other covenants, security and ranking.

"The preliminary 'BB-' rating on Befesa S.A. (the ultimate parent
company of Befesa Zinc and Bilbao Luxembourg) reflects the fair
business risk profile of its subsidiaries, and the group's
financial risk profile and financial policy following the pricing
of the IPO and expected subsequent completion of the refinancing
process. As of today, the ratings on the subsidiaries are capped
by the private equity ownership (100%) and less-than-adequate
liquidity.

"On Nov. 3, 2017, private equity owner Triton completed a partial
divestment of its Befesa group stake following the completion of
an IPO, reducing its stake to at least 53% (with a potential
reduction to 39%). We assume that Triton will further reduce its
holding over time. In our view, while the IPO does not change the
capital structure of the company (no material changes in the debt
or equity), we see it as a transformative event that may provide
better visibility to the company's strategy and financial policy
going forward. For example, the company adopted a new dividend
policy, which sets a clear framework for future cash outflows,
while in the past we had also considered a scenario of a large
dividend recapitalization. In our view, a further decrease in
Triton's stake is unlikely to lead us to change the rating.

"Moreover, the group is expected to refinance and simplify its
debt structure by refinancing its EUR300 million senior secured
notes at the Befesa Zinc level and EUR150 million subordinated
PIK notes at the Bilbao Luxembourg level, with EUR526 million of
senior notes (term loan B). The new capital structure will allow
the group to have a better flow of cash between the zinc and the
non-zinc businesses, as well as improving the maturity profile of
the debt and reducing the overall interest expense for the group.

"The group's business risk profile is unchanged post-IPO, and is
predominantly driven by the zinc division. The division generates
about 75% of the group's EBITDA and is supported by the group's
relatively stable service-oriented business model, which benefits
from both multiyear customer contracts and European environmental
regulations governing the disposal of hazardous steel and
aluminum industry waste by-products. The company enjoys a leading
market position in Europe, with a 45%-50% market share in both
steel dust and aluminum salt slags recycling. The systematic
hedging program for zinc supports our assessment further,
providing good visibility of the company's results over the
coming 12-18 months. At the same time, the group's volumes are
exposed to the underlying cyclicality of steel and aluminum
production as well as to volatile zinc prices.

"In our view, Befesa S.A.'s growth pipeline would further
strengthen the company's competitive position and would support a
step-up in its cash flows. The growth will consist of a number of
small and mid-sized projects, in which the company will increase
capacity or replicate existing facilities. The nature of the
projects would allow management to tune up the actual spending as
a function of market conditions. The total capital expenditure
(capex) between 2018 and 2020 is estimated at EUR70 million-EUR80
million. In our view, an increase in the capacity via
acquisitions is less likely. That said, we believe that inorganic
growth into other segments will become more relevant toward 2020.

"Under our base-case scenario, we expect adjusted group EBITDA of
EUR175 million-EUR185 million in 2017 and EUR170 million-EUR190
million in 2018 compared with about EUR130 million in 2016 and
EUR72 million in the first half of the year. The improved results
in 2017, which we expect to continue through 2018, are driven by
supportive zinc prices and higher volumes (an increase of 12% in
the first half of 2017 compared with the first half of 2016)."

The following assumptions underpin S&P's base case:

-- Steel production growth in Europe of 2.5% in 2017 and 1.0%-
    1.5% in 2018, driven by S&P Global Ratings' assumption of GDP
    growth in Europe of 2.3% and 2.0%, respectively.

-- Zinc prices of $2,800/ton for the rest of 2017 and $2,700/ton
    in 2018 compared with the current zinc spot price of around
    $3,300/ton and an average year-to-date of $2,825/ton.

-- Company hedges in place until mid-2020, with over 70% of
    expected zinc volumes hedged at a weighted price of
    EUR2,050/ton in 2018.

-- Aluminum prices of $1,950/ton for the rest of 2017 and
    $1,900/ton for 2018. We understand that changes in the
    aluminum business have a limited effect on the company's
    results.

-- No material changes from existing production, apart from the
    additional volumes coming from the ramp-up of the facility
    expansion in Korea. Starting in 2019, there will also be
    upside in volumes coming mainly from Turkey.

-- A moderate increase in EBITDA margins supported by the higher
    zinc prices and some benefits from the group's cost-cutting
    programs and other initiatives. In 2016, EBITDA margins were
    about 21% and we assume they will increase to the mid-20s in
    the next few years.

-- Total cumulative capex of EUR150 million for 2017-2019,
    including maintenance capex of about EUR20 million-EUR25
    million annually.

-- No further disposals. Earlier this year, the company
    completed the divestment of the remaining industrial
    environmental solutions (IES) business.

-- Limited swings in working capital to support current spot
    prices and higher volumes.

-- Dividend policy of distributing 40%-50% of net profit with
    the first dividend in 2018 based on 2017 reported net profit,
    in line with company guidance.

S&P said, "This translates into a debt-to-EBITDA ratio pro-forma
for the IPO of 2.5x-3.0x in 2017 and 2018, compared with 4.8x in
2016. We expect free operating cash flow (post capex) to be about
EUR40 million-EUR50 million in both 2017 and 2018. When
incorporating the company's new dividend policy, we expect that
discretionary cash flow (free operating cash flow after capex and
dividend) would be around EUR10 million-EUR30 million in 2018.
Moreover, we expect a step-up in the company's cash flow capacity
starting 2019 once some of the projects are coming to
completion -- EUR40 million-EUR60 million in 2019."

BEFESA S.A.

S&P said, "The stable outlook on the group's new holding company
Befesa S.A. reflects our comfort in the company's ability to
improve its EBITDA while building some headroom under the rating
in the next 12 months. We believe that Befesa's maturity profile
after the refinancing and the hedges in place provide good
visibility on the company's results over the short term, and
allow it to absorb unforeseen shocks.

"We view debt to EBITDA below 4.0x and FFO to debt comfortably
above 20% as commensurate with the current rating. Under our
base-case scenario we forecast adjusted debt to EBITDA of 2.5x-
3.0x in 2017 and in 2018.

"The rating would come under pressure if we projected adjusted
debt to EBITDA increasing above 3x or adjusted debt to EBITDA
falling below 20%. Such a scenario could be triggered if Befesa
S.A. saw a material deterioration in operating performance or if
it deviated from its current financial policy, embarking on
higher capex or pursuing large acquisitions.

"Moreover, we note the ongoing legal proceedings with respect to
the guarantee of Abengoa debt. Any material negative updates in
this respect would lead us to review the rating with potentially
negative implications.

"At this stage, we don't expect to raise the rating in the next
12-18 months. A higher rating would require a stronger business
foot-print and a longer track-record as a public company
(including its financial policy)."

BEFESA ZINC AND BILBAO LUXEMBOURG

S&P said, "The positive CreditWatch placement for Befesa Zinc and
Bilbao Luxembourg reflects our expectation that we will equalize
the rating on these core subsidiaries post-IPO with that on
Befesa S.A. after the refinancing.

"In the low likelihood scenario of a failure of the refinancing
process, we will need to reassess the existing rating given the
short period until the maturity of the EUR300 million notes in
May 2018."


CORESTATE CAPITAL: S&P Assigns 'BB+' Corporate Credit Rating
------------------------------------------------------------
S&P Global assigned its 'BB+' long-term corporate credit rating
to Luxembourg-based CORESTATE Capital Holding S.A. (Corestate).
The outlook is stable.

S&P's rating on Corestate, a fully integrated real estate
investment manager focused on German-speaking countries,
primarily reflects its view of its fair business risk profile and
intermediate financial risk profile. With only EUR22 billion of
assets under management (AUM), Corestate is a small asset manager
with a high geographical exposure to Germany, which represents
over 75% of invested AUM. The company derives most of its income
from real estate assets and strategies and is, therefore, also
highly concentrated in terms of industry compared with large
asset managers.

However, Coresate's strategies are relatively well diversified
within real estate as the company offers an extensive range of
investment products to clients, and invests in a wide variety of
real estate assets, such as residential, office, retail, and
student housing.

Furthermore, Corestate partly benefits from its niche position in
the German real estate market and its solid network in Germany's
secondary cities, which tend to have a local investor base and to
be underserved by other large asset managers.

Corestate's business position is further supported by the
positive performance of its investment portfolio in the past two
years and its increasing ability to diversify its investor base
and attract institutional investors to its funds.

Corestate's profitability metrics following the recent
acquisition of Hannover Leasing Group (HL) and Helvetic Financial
Services (HFS) are expected to be well above average for the
asset management industry, with the S&P Global Ratings-adjusted
EBITDA margin forecast to be above 60% from 2017 until 2019.

S&P also views Corestate's earnings volatility as relatively low
following the acquisition of HFS and HL, which increases the
share of recurring fee income to roughly 90% of total revenues.
Corestate's management medium-term target of recurring fees is
between 85% and 90%.

S&P said, "Our view of the company's financial risk is supported
by a large acquisition pipeline following the acquisition of HL
and HFS, which brings visibility to near-term fee income.

"We expect that Corestate should be able to reduce leverage
during our forecast period through a mix of debt repayment and
EBITDA growth following the full-year impact of the HFS and HL
integration in 2018, as well as some margin accretion coming from
the sale of low yielding assets. In our calculation for the
company's net debt to adjusted EBITDA, we see it dropping from
roughly 3.6x in 2017 to 2.0x by 2019, which is consistent with
the company's long-term leverage target of net debt to adjusted
EBITDA below 2.0x.

"We expect that Corestate's appetite for acquisitions and
shareholder distributions will remain unchanged over our forecast
horizon. That said, we believe that the firm's financial policy
is at least moderately conservative, and that management will try
to balance any acquisition or exceptional dividend outflows by
issuing additional equity, as was the case for recent
acquisitions.

"The stable outlook reflects S&P Global Ratings' expectation that
Corestate's operating performance and financial risk profile will
remain commensurate with the current rating over the coming 12
months.

"We expect the ratio of net debt to EBITDA to remain at 2x-3x
over the medium term as Corestate reduces leverage through a mix
of debt reduction and EBITDA improvement. We also expect that
management will be able to successfully manage the operational
integration of the recent large-scale acquisition.

"We could consider a positive rating action if we observed a
sufficient positive track record of Corestate's main business and
financial metrics. This would support a successful integration of
recent acquisitions and stability of core revenues alongside an
improvement of the group's debt profile due to deleveraging and
lengthening of the debt maturity profile. Substantial AUM growth
and further diversification of the business would support the
assessment, as it would reflect a strengthening competitive
advantage for the company and the quality of its earnings, with a
higher proportion of stable and recurring fees.

"We would consider a negative rating action if we saw a worsening
of Corestate's leverage due to the company's operating
environment deteriorating or an increase in debt-funded
acquisitions. More specifically, we could take a negative rating
action if we felt that the debt--net of surplus cash--to adjusted
EBITDA ratio was above 3x, and came to the conclusion that this
reflected a weakening of the company's competitive position. We
could also consider a negative action if we observed a strong
decline in margins or an uptick in success-related fees to the
detriment of recurring fee income as a percentage of total
revenues. This would lead us to reassess the company's business
risk profile. Any material negative surprises in relation to the
integration of the recent acquisitions could also trigger a
negative rating action."


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


PEARL MORTGAGE 1: Fitch Affirms 'Bsf' Rating on Class B Notes
-------------------------------------------------------------
Fitch Ratings has affirmed PEARL Mortgage Backed Securities 1 B.V
(Pearl 1). This follows application of the newly published
European RMBS Rating Criteria. The agency has also resolved the
Rating Watch Evolving (RWE) on all tranches and assigned Stable
Outlooks.

Class A (ISIN XS0265250638): affirmed at 'AAAsf'; off RWE;
Outlook Stable
Class S (ISIN XS0715998331): affirmed at 'BBB+sf'; off RWE;
Outlook Stable
Class B (ISIN XS0265252253): affirmed at 'Bsf'; off RWE; Outlook
Stable

The transaction comprises a 100% Dutch mortgage pool backed by
the Nationale Hypotheek Garantie (NHG) and originated by de
Volksbank N.V. (BBB+/Positive/F2).

KEY RATING DRIVERS

Stable Performance
As of August 2017, arrears over 3 months stood at 0.23% of the
current collateral balance, compared with 0.30% 12 months
earlier.

No Losses Reported
Since closing in 2006, no losses have been reported by the
seller. Defaulted loans have been covered by the NHG guarantee or
repurchased by de Volksbank in accordance with its commitment to
repurchase loans ineligible for the guarantee.

Credit Enhancement (CE)
CE increased given steady pool amortisation to 10.0% and 2.2% on
the class A and S notes, respectively, from 8.5% and 1.5%. The
cash flow analysis of the structure showed that the CE available
to these tranches is sufficient to withstand the updated criteria
assumptions.

As the structure does not incorporate a reserve fund, the class B
notes have no CE and are highly reliant on the 25bp per annum
excess spread generated by the total return swap to cover for
losses over the life of the transaction. Based on the performance
to date, Fitch is of the opinion that the risk associated with
the notes remains reflective of a 'Bsf' rating definition,
resulting in the affirmation of the current rating.

RATING SENSITIVITIES

Deterioration in asset performance and a corresponding increase
in new foreclosures that leads to associated pressure on excess
spread and liquidity facility beyond Fitch's assumptions could
result in negative rating action, particularly for the junior
tranches.


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


FERROVIAL SA: S&P Rates Subordinated Capital Securities 'BB+'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to
the proposed long-dated, optionally deferrable, and subordinated
hybrid capital securities to be issued by a subsidiary of and
guaranteed by Spanish infrastructure group Ferrovial S.A.
(BBB/Stable/A-2). The transaction remains subject to market
conditions.

S&P said, "We consider the proposed securities to have minimal
equity content as the planned size of the issuance is well in
excess of 15% of hybrid capitalization. This follows our approach
to deconsolidate material assets related to non-recourse project
financed activities, and we net from debt the substantial cash
balances at the group level. The size of the hybrid raises
questions regarding its overall equity benefit in the issuer's
capital structure, and we see some uncertainty as to the issuer's
financial policy in respect of the hybrid (see "Hybrid
Instruments That Standard & Poor's Includes As Capital For
Nonfinancial Corporate Issuers," published April 21, 2015, on
RatingsDirect). As part of our usual surveillance and in the
context of the equity content assessment, we will monitor the
level of hybrid capitalization and the group's financial policy
framework. The terms and conditions of the proposed securities
would otherwise be commensurate with intermediate equity content
until their first call date, which falls five and a half years
after issuance."

S&P arrives at its 'BB+' issue rating on the proposed securities
by notching down from its corporate credit rating (CCR) on the
guarantor Ferrovial. The two-notch differential between the issue
rating and the SACP reflects our notching methodology, which
calls for:

-- A one-notch deduction for subordination because our CCR on
    Ferrovial is investment grade (that is, 'BBB-' or above); and

-- An additional one-notch deduction for payment flexibility to
    reflect that the deferral of interest is optional.

The notching of the proposed securities reflects S&P's view that
there is a relatively low likelihood that the issuer will defer
interest. Should S&P views change, it may increase the number of
downward notches that we apply to the issue rating.

KEY FACTORS IN S&P'S ASSESSMENT OF THE INSTRUMENT'S PERMANENCE

Although the proposed securities are perpetual, they can be
called at any time for tax, gross-up, rating, or accounting
events. Furthermore, the issuer can redeem them for cash in the
period three months before their first call date, and every
interest payment date thereafter. Furthermore, the issuer can
repurchase the notes on the open market at any time. In case the
issuer calls or buys back the securities it intends, but is not
obliged, to replace the instrument.

S&P understands that the interest to be paid on the proposed
securities will increase by 25 basis points 5.5 years from
issuance, and by a further 75 basis points 25.5 years after the
respective first call date. S&P considers the cumulative 100
basis points as a material step-up and an effective maturity of
the instrument as it is unmitigated by any commitment to replace
the respective instruments at that time.

KEY FACTORS IN S&P'S ASSESSMENT OF THE INSTRUMENT'S DEFERABILITY

In S&P's view, the issuer's option to defer payment on the
proposed securities is discretionary. This means that the issuer
may elect not to pay accrued interest on an interest payment date
because it has no obligation to do so. However, any outstanding
deferred interest payment will have to be settled in cash if
Ferrovial declares or pays an equity dividend or interest on
equally ranking securities, and if Ferrovial or its subsidiaries
redeems or repurchases shares or equally ranking securities.

KEY FACTORS IN S&P's ASSESSMENT OF THE INSTRUMENT'S SUBORDINATION

The proposed securities (and coupons) are intended to constitute
direct, unsecured, and subordinated obligations of the issuer and
guarantor, ranking senior to their common shares.


HAYA REAL ESTATE: S&P Assigns Prelim 'B-' CCR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B-'
long-term corporate credit rating to Spain-based Haya Real Estate
S.L.U. and Haya Finance 2017 S.A. The outlook is stable.

S&P said, "At the same time, we assigned our preliminary 'B-'
rating to the group's proposed EUR450 million senior secured
notes maturing in 2022. The recovery rating on these facilities
is '4', indicating our view of average recovery prospects of 30%
in the event of a default.

"The final ratings will depend on our receipt and satisfactory
review of all final transaction documentation. Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, we reserve the
right to withdraw or revise our ratings. Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size, and conditions of the loans, financial and other covenants,
security, and ranking."

Haya is currently one of the three largest real estate debt and
asset servicers in the Spanish market, with assets under
management (AUM) of EUR40 billion, and reported revenues of
EUR194 million in 2016.

S&P said, "Our ratings reflect our vulnerable business risk
profile assessment. The Spanish real estate servicing market is
highly competitive, with four to five competing debt and asset
servicers of a similar size to Haya, offering comparable services
to banking clients, making it difficult for operators to offer a
differentiated service and attract a clear price premium. The
nature of the Spanish real estate servicing market is such that
service providers pay a lump sum upfront to secure exclusive
rights to service a book of assets, for a contracted period, with
pre-agreed pricing. While providing barriers to new entrants and
a contracted revenue base for incumbents, it also results in
material reinvestment risk and a relatively small number of
contracts for which market participants must compete in order to
drive revenue and EBITDA growth. Furthermore, service providers
typically have significant levels of customer concentration, with
over 95% of Haya's revenues and EBITDA being derived from four
contracts. The largest, with Spanish state-backed asset
resolution entity SAREB, accounts for over 50% of 2016 revenues.
While we expect customer concentration to decline over time, Haya
will likely continue to face higher levels of concentration risk
than the majority of professional services providers. Haya's
business risk profile is also limited by the material contract
renewal risk it faces, with the existing SAREB contract expiring
at the end of 2019.

"We view Haya's financial risk profile as aggressive. While we
acknowledge that our forecast cash flow leverage metrics are in
line with a stronger financial risk profile assessment, our
assessment is constrained by our view of Haya's financial policy.
Haya is currently 100% owned and controlled by a financial
sponsor, and as a result we expect the company to have a greater
tolerance for higher debt leverage."

The rating incorporates a one-notch negative adjustment under our
comparable ratings analysis modifier. This reflects Haya's
operation in a relatively new industry that we expect to decline
and which may have a finite lifespan. S&P  believes that a
decline in the volume of nonperforming real estate loans in Spain
presents additional refinancing risk.

S&P's base case assumes:

-- S&P Global Ratings-adjusted revenue growth of about 10% in
    2017 and 10%-15% in 2018, following a new mandate in fourth-
    quarter (Q4) 2017 with Spanish bank Liberbank.

-- Adjusted EBITDA margins to remain flat at around 65%-70% in
    2017 and 2018.

-- Capital expenditure (capex) of around EUR5 million-EUR10
    million in 2017 and 2018.

-- Acquisitions of about EUR85 million in 2017 reflecting the
    acquisition of a servicing entity that signed the new mandate
    with Liberbank.

-- Cash payment of about EUR160 million in Q4 2017 representing
    dividends, repayment of shareholder loans, and a new loan to
    Haya's ultimate shareholder.

Based on these assumptions, we arrive at the following forecast
credit measures:

-- Adjusted debt to EBITDA of about 3.0x-3.5x in 2017 and 2.7x-
    3.2x in 2018.

-- Adjusted funds from operations (FFO) to debt of 20%-25% in 2
    2017 and 25%-30% in 2018.

-- Unadjusted free operating cash flow of more than EUR75
million
    in 2017 and 2018.

S&P said, "Our stable outlook reflects its view that Haya will
continue to expand in the next 12 months on the back of a
recovery in the Spanish real estate market and the onboarding of
the newly won Liberbank assets, resulting in free operating cash
generation of above EUR75 million.

"We could consider taking a positive rating action if Haya were
to demonstrate successful management of its contract renewal
risk, and improve its customer diversification through the
onboarding of new asset portfolios with new clients.

"We see limited pressure on the rating in the near term. However,
we could take a negative rating action if we became concerned
about the sustainability of Haya's capital structure.
Specifically, we would consider lowering the rating if free
operating cash generation were to turn negative for a prolonged
period."


IM EVO: Moody's Assigns (P)Ba2 Rating to Series B 2017-1 Notes
--------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to notes issued by IM EVO Finance 1, Fondo de
Titulizacion:

-- EUR273.7M Series A 2017-1 Notes Due September 2050, Assigned
    (P)A2 (sf)

-- EUR25.5M Series B 2017-1 Notes Due September 2050, Assigned
    (P)Ba2 (sf)

Moody's has not assigned a rating to the EUR37.4M Series C 2017-1
Notes Due 2050, which will also be issued at closing of the
transaction. Moody's has also not rated the EUR11.9M line of
credit or the EUR750,000 subordinated loan.

RATINGS RATIONALE

The transaction is an ongoing revolving cash securitisation of
point of sale consumer loans extended to individual borrowers
located in Spain. It is structured as a programme in which
additional notes can be issued or existing notes can be upsized
over time, subject to a maximum notes issuance amount of EUR500
million.

The loans were originated by Evo Finance E.F.C., S.A.U. ("Evo
Finance"). Evo Finance is not rated. This is the second public
securitisation by Evo Finance, which is also acting as servicer
in the transaction.

The provisional portfolio backing the assets is as of 10th
October 2017, and equal to an amount of EUR372.0 million. At
closing, a definitive portfolio will be selected from this pool,
with a size equal to EUR341.75mn. The provisional pool consists
of 242,287 consumer loans with a weighted average seasoning of
9.9 months. The loans are originated at point of sale ("POS
Loans"), granted to predominantly finance medical procedures
(69.0%) as well as purchases of appliances and furniture (23%),
and other typical consumer products. The servicer is Evo Finance
(NR).The majority of POS Loans do not pay interest under the
contract, but are sold at a discount to generate yield for the
pool, which as of closing has a weighted average interest rate of
8.6%.

The soon to be issued notes are due in 2050. This reflects the
expectations that the transaction will revolve on a continuous
basis, however with a requirement that the reinvestment period be
renewed subject to certain conditions, every two years. These
requirements for renewal of the revolving period include
confirmation that a revolving period termination event has not
occurred, and that Moody's has confirmed that renewal of the
revolving period would not prejudice the note ratings. The key
early amortization events include (i) confirmation that the
servicer has not been replaced; (ii) that the cumulative default
rate of the assets has not reached 6% on an annualized basis;
(iii) that the performing pool is at least 101% of the A to C
notes and 106% of the A to B notes; (iv) that the reserve fund
remains fully funded; and (v) that the notes have not missed a
payment.

The structure includes the flexibility to issue additional notes
throughout the life of the deal. The structure envisages that all
notes will be issued in euros and pay monthly fixed interest on
the same payment date. In order to either upsize a series or
issue new series, the following key conditions will need to be
met: (i) the sum of the notes will be less than the maximum of
EUR500m; (ii) an early amortization event has not occurred; (iii)
the reserve fund is fully funded: (iv) that the rating of the
existing series A and B notes will not be affected by the note
increase or new issuance: (v) that the notes will obtain a rating
of at least A2 (sf) and Ba2 (sf) for the series A and B notes
respectively.

The notes will be repaid either out of principal proceeds during
the amortization period or through a refinancing by another
liability of the fund. This refinancing can be funded by the
issuance of (i) further series of notes or by upsizing pre-
existing notes (ii) through the line of credit provided by Evo
Finance (iii) by repurchase of assets from the issuer by Evo
Finance as the seller.

In addition to the series A,B and C notes, the assets will be
funded by a line of credit. It acts as a form of additional
financing that funds the surplus amount of assets that are not
financed by the bonds. As such, its amount can vary depending on
the amount of assets, however if it funds collateral less than 1%
of the sum of the A, B and C notes, the deal will enter early
amortization. The line of credit is fully subordinated during the
amortization period, but during the revolving period interest
payments are due pari passu with the series A notes. The line of
credit has a maximum amount of EUR200mn, although this may be
reduced to EUR100mn if it would not lead to an amortization event
nor negatively impact the ratings of the notes. As of closing, it
is 11.9mn, which funds both the initial reserve fund of
EUR6.732mn and additional assets of EUR5.150mn. The amount of
assets funded by the notes is above the minimum required under
the documents, which requires the line of credit to fund 3.7mn of
assets, equivalent to 1% of the initial A,B and C notes.

The transaction benefits from credit strengths such as the
granularity of the portfolio and the stable historical
performance of POS loans over the 2008-2017 during a stressed
economic period in Spain. However, Moody's notes that the
transaction features some credit weaknesses. The concentration of
service providers in the pool increases the risk of a
deterioration in repayment performance in the event that a
service provider enters into insolvency, and the transactions
reliance on Evo Finance, which is unrated. The transaction is
reliant on Evo Finance both due to its undertaking as seller to
repurchase any assets affected by commercial disputes with the
service providers, and in its role as servicer in helping to
negotiate and resolve such disputes.

COLLATERAL PERFORMANCE ASSUMPTIONS

Moody's determined the portfolio lifetime mean default rate of
6.0%, expected recoveries of 10% and Aa2 portfolio credit
enhancement ("PCE") of 23%. The mean default rate and recoveries
capture Moody's expectations of performance considering the
current economic outlook, while the PCE captures the loss Moody's
expect the portfolio to suffer in the event of a severe recession
scenario. Mean loss and PCE are parameters used by Moody's to
calibrate its lognormal portfolio loss distribution curve and to
associate a probability with each potential future loss scenario
in its ABSROM cash flow model to rate consumer loans ABS.

The portfolio expected mean defaults level of 6.0% is slightly
worse than the EMEA consumer loans average and is based on
Moody's assessment of the lifetime expectation for the pool
taking into account (i) obligor defaults, and (ii) possible
deterioration of portfolio composition during the revolving
period.

The expected recoveries of 10% is slightly worse than the EMEA
consumer loans average and is based on Moody's assessment of the
lifetime expectation for the pool taking into account (i)
historic performance of the defaulted loans, (ii) possible
deterioration of portfolio composition during the revolving
period and (iii) benchmark transactions.

The PCE of 23% is worse than EMEA consumer loan peers on average
and is based on Moody's assessment of the pool, taking into
account (i) the concentration amongst service providers; (ii) the
volatility seen in the historical data; (iii) the relative
ranking to the originators peers in the EMEA ABS market. The PCE
of 23% results in an implied coefficient of variation ("CoV") of
44.3%.

METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in
September 2015.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATINGS:

Factors that may cause an upgrade of the ratings of the class A
and B notes include an upgrade to the Local Currency Ceiling,
significantly better than expected performance of the pool
together with an increase in credit enhancement of notes.

Factors that may cause a downgrade of the ratings of the notes
include a worsening in the overall performance of the pool, or
replacement of Evo Finance as servicer, which would lead to deal
amortization. Evo Finance's experience in servicing the point of
sale consumer loans, which can involve negotiating with service
providers means that if it were replaced as a servicer it could
negatively impact pool recoveries.

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

LOSS AND CASH FLOW ANALYSIS:

Moody's used its cash flow model ABSROM as part of its
quantitative analysis of the transaction. ABSROM enables users to
model various features of a standard European ABS transaction -
including the specifics of the loss distribution of the assets,
their portfolio amortisation profile, yield as well as the
specific priority of payments, swaps and reserve funds on the
liability side of the ABS structure. The model is used to
represent the cash flows and determine the loss for each tranche.
The cash flow model evaluates all loss scenarios that are then
weighted considering the probabilities of the lognormal
distribution assumed for the portfolio loss rate. In each loss
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 loss scenario; and (ii)
the loss derived from the cash flow model in each loss scenario
for each tranche.

STRESS SCENARIOS:

In rating consumer loan ABS, default rate and recovery rate are
two key inputs that determine the transaction cash flows in the
cash flow model. Parameter sensitivities for this transaction
have been tested in the following manner: Moody's tested six
scenarios derived from a combination of mean default rate: 6.0%
(base case), 6.5% (base case + 0.5%), 7.0% (base case + 1.0%) and
recovery rate: 10.0% (base case), 5% (base case - 5%), 0% ( base
case - 10%). At the time the rating was assigned, the model
output indicated that the senior notes would have achieved Baa2
even if the mean default rate was as high as 7% with a recovery
rate as low as 0% (all other factors unchanged).

Moody's issues provisional ratings in advance of the final sale
of securities and the above rating reflects Moody's preliminary
credit opinions regarding the transaction only. Upon a conclusive
review of the final documentation and the final note structure,
Moody's will endeavour to assign a definitive rating to the above
notes. A definitive rating may differ from a provisional rating.
Please note that the actual definitive issuance amounts of the
rated classes may change from those stated above given confirmed
capital structure and final portfolio levels. However, this
aspect should not fundamentally impact the ratings as credit
enhancement and portfolio credit features are expected to be
consistent.


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


FOUR SEASONS: Major Creditor Rejects Restructuring Plan
-------------------------------------------------------
Javier Espinoza and Robert Smith at The Financial Times report
that the largest creditor in Four Seasons, the UK's largest care
provider, has rejected a proposed restructuring plan of its
multi-million pound debt, leading to a bruising fight with its
private-equity owner.

H/2 Capital has launched proposals that it argues create a
business less heavily dependent on debt and does more to improve
the care-home business, the FT relates.

Four Seasons provides care to 17,000 people, and it has publicly
said it will default on its debt next month, having failed to
reach a deal with bondholders, the FT notes.

It is saddled with high-interest debt, owing GBP525 million, the
FT discloses.

The plans comes after Four Seasons, owned by Guy Hands' Terra
Firma, had proposed take on a debt reduction of GBP77 million and
a leverage ratio -- which describes the amount of equity in
comparison to debt -- of 74%, the FT states.

It had also proposed an interest rate on senior secured notes of
8.75% with no new cash equity or cash dedicated to care home
improvement, the FT discloses.  The proposals, which also
included reducing rent to landlords, took the market by surprise
last month, according to the FT.

However, H/2 Capital's proposals argue for a much higher debt
reduction of GBP247 million, a lower leverage ratio of 46% and
lower interest rate payments of 7%, the FT relays.  It is also
proposing a new cash equity injection of GBP135 million plus
GBP25 million to fund home refurbishments for residents, the FT
says.

According to the FT, under the proposals, H/2 also suggested
Baroness Margaret Ford, the former chair of Barchester Healthcare
Limited, as the new chair of Four Seasons board, replacing Robbie
Barr.

It offered a deferral of interest payments on the debt through
March 1st next year, the FT discloses.

Four Seasons, as cited by the FT, said it welcomed the proposals,
which it will consider "with a view of reaching a conclusion that
ensures the long term stability of the group".


HARKAND GULF: November 17 Proofs of Claim Filing Deadline Set
-------------------------------------------------------------
Pursuant to Rule 14.28 of the Insolvency Rules 2016 that the
Joint Liquidators in this matter intend declaring a first and
final dividend to non-preferential creditors.  Such creditors,
other than creditors who are owed GBP1,000 or less, are required
on or before November 17, 2017, being the last date for proving,
to submit their proofs of debt marked for the attention of Nahima
Begum to Deloitte LLP, Four Brindleyplace, Birmingham, B1 2HZ,
United Kingdom and if so requested to provide such further
details or produce such documentation or other evidence as may
appear to the Joint Liquidators to be necessary.  A creditor who
has not proved his debt before the last date for proving is not
entitled to disturb, by reason that he had not participated in
it, any dividend subsequently declared.

The Notice of Intended Dividend only relates to Harkand Gulf
Contracting Limited and not any other Harkand entities.  Should
you wish to submit a claim a Proof of Debt form and documentation
in support of your claim must be sent to the Joint Liquidators.
The dividend will be declared within the period of two months
from the last date for proving.

Date of Appointment: March 16, 2017
Office Holder details: Ian Colin Wormleighton (IP No. 014230);
Philip Stephen Bowers (IP No. 009630) and Michael John Magnay (IP
No. 018312) all of Deloitte LLP, PO Box 810, 66 Shoe Lane,
London, EC4A 3WA.

Please contact Nahima Begum on 0121 695 5303 or
nahibegum@deloitte.co.uk for further information.


MONARCH AIRLINES: No Right to Sell Airport Slots, Court Rules
-------------------------------------------------------------
Alistair Smout at Reuters reports that a court in London ruled on
Nov. 8 that failed airline Monarch does not have the right to
sell its slots at airports, potentially the most valuable
remaining part of the business.

The High Court rejected Monarch's claim that it must be allocated
slots for the summer 2018 schedule and said the airline's summer
2018 will be placed into the slots pool, Reuters relates.

The status of Monarch's airport slots, reportedly worth GBP60
million (US$79 million), had been ambiguous since the airline
went bust at the start of October, Reuters notes.

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


MONARCH AIRLINES: Wizz Air Boss Eyes Luton Airport Slots
--------------------------------------------------------
Bradley Gerrard at The Telegraph reports that Wizz Air boss
Jozsef Varadi has confirmed he is hoping to get his hands on the
slots at Luton airport left vacant by failed rival Monarch.

The chief executive of the Hungary-based low-cost carrier said it
was not yet clear how the slots Monarch held for its four Luton-
based planes would be distributed, The Telegraph relates.

According to The Telegraph, it is thought industry body Airport
Co-ordination Limited may now be able to redistribute the slots,
giving priority to newer airlines.

Mr. Varadi, as cited by The Telegraph, said that once the process
was clear, he would be keen to take control of the slots.

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




                            *********

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.


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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