/raid1/www/Hosts/bankrupt/TCREUR_Public/171124.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, November 24, 2017, Vol. 18, No. 234


                            Headlines


A Z E R B A I J A N

INT'L BANK OF AZERBAIJAN: Fitch Raises IDR to B-, Outlook Stable


C Z E C H   R E P U B L I C

ENERGO-PRO AS: Fitch Rates Proposed Sr. Unsec. Notes 'BB(EXP)'


G R E E C E

NAVIOS MARITIME: Moody's Hikes Corporate Family Rating to B3


I R E L A N D

BLACKROCK EUROPEAN IV: S&P Assigns B-(sf) Rating to Cl. F Notes
HARVEST CLO XIV: Moody's Assigns Ba1 Rating to Cl. E-R Notes
MAGELLAN MORTGAGES 3: S&P Raises Class D Notes Rating to BB(sf)


I T A L Y

ASTALDI SPA: Fitch Lowers Long-Term IDR to B/RR4, Outlook Neg


P O L A N D

ROOF POLAND 2014: Fitch Raises Rating on Class B Notes From BB-


U N I T E D   K I N G D O M

ALLIANCE AUTOMOTIVE: S&P Withdraws 'B+' LT Corp Credit Rating
BELL POTTINGER: Hanover Group Buys Middle Eastern Assets
DEBENHAMS PLC: S&P Alters Outlook to Neg., Affirms 'BB-' CCR
MANLEY CONSTRUCTION: Nenagh Subcontractors Concerned Over Payment
MONARCH AIRLINES: Administrators Win Dispute Over Airport Slots

MONARCH AIRLINES: EasyJet Attracts Applications from Pilots
MULTIYORK: In Administration, Almost 500 Jobs at Risk


X X X X X X X X

* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles


                            *********



===================
A Z E R B A I J A N
===================


INT'L BANK OF AZERBAIJAN: Fitch Raises IDR to B-, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has upgraded Open Joint-Stock Company International
Bank of Azerbaijan's (IBA) Long-Term Issuer-Default Rating to
'B-' from 'RD' (Restricted Default). The agency has also upgraded
IBA's Viability Rating (VR) to 'ccc' from 'f'.

KEY RATING DRIVERS

IDRS, VR AND SENIOR DEBT

The upgrades of the bank's ratings follow the completion of IBA's
debt restructuring on September 1, 2017 and the latest transfer of
bad assets off the bank's balance sheet, which Fitch expects to be
completed shortly.

IBA's VR of 'ccc' reflects the bank's still large exposure to
market risks given the bank's sizable unhedged short foreign-
currency position. However, the bank's VR benefits from a
comfortable liquidity position and currently low-risk asset
exposures.

The one-notch uplift of IBA's Long-Term IDR of 'B-' relative to
the VR of 'ccc' reflects Fitch's view that the probability of the
bank defaulting on its senior third-party obligations (which are
reference liabilities for bank IDRs) is somewhat lower than it
failing (i.e. becoming non-viable, and requiring external support
to address a material capital shortfall). This view is supported
by the bank's sizable liquidity cushion, the potential for
regulatory forbearance from the Central Bank of Azerbaijan (CBA)
and the possibility that, in the near term, some form of solvency
support may be available from the authorities or quasi-sovereign
entities.

Fitch has assessed the bank's post-restructuring credit profile
based on prudential accounts at end-9M17, preliminary consolidated
financial statements according to IFRS at the same date and
management representations.

At end-9M17, IBA didn't comply with regulatory capital
requirements because current year profits, which include most of
the gains from the debt restructuring and bad assets transfer, are
recognised as Tier 2 capital until the end of the year, and also
investments in subsidiary banks are deducted from total capital.
Adjusting capital ratios for current year results and assuming
that the bad asset transfers are completed in 4Q17, Fitch
estimates that end-2017 Tier 1 capital ratio could be close to
20%.

Based on the preliminary IFRS accounts, Fitch estimates IBA's
Fitch Core Capital (FCC) ratio at around 11% at end-9M17. However,
IFRS equity in these accounts (AZN392 million) is understated by
around AZN300 million (management's estimation), as the new USD1
billion Eurobond, issued in exchange for the bank's restructured
obligations, has not yet been restated at fair value based on its
low (3.5%) coupon. Recognising this gain would improve the FCC
ratio by an additional 9 ppts. Adjusting also for the 4Q17 gains
on the bad loans transfers could result in a FCC ratio of up to a
high 30%.

However, Fitch still views the bank's capital position as
vulnerable due to the large unhedged short foreign-currency
position of AZN3.6 billion (9x Tier 1 regulatory capital adjusted
for current year profit and gains on the loan sales). Management
intends to close the currency position during the next few months
via a hedging arrangement with Ministry of Finance and/or
conversion of its manat deposits with the CBA into US dollars.
However, in Fitch's view there is uncertainty about where these
transactions will take place and the terms of any hedges.

IBA's asset quality has significantly improved during the last 12
months due to the further transfers of bad assets. According to
regulatory accounts, the bank's net loan book has contracted to
AZN1.8 billion at end-9M17 (24% of total assets), of which around
AZN300 million is to be transferred in 4Q17. Remaining loans are
of adequate quality, comprising primarily exposures to retail
customers and state-owned corporates. Other assets are mainly
represented by low-risk local currency deposits placed with CBA
(AZN2.9 billion, 38% of total assets at end-9M17) and current
accounts with highly rated foreign banks (a further AZN1.6 billion
equivalent, 21%).

At end-9M17, IBA's liquidity position was comfortable, with liquid
assets (mainly, cash and cash equivalents and placements with CBA
and foreign banks) covering over 100% of customer accounts.
Foreign currency liquidity is also comfortable given a sizable
share of liquid assets placed in foreign banks, and the long-term
nature of most wholesale funding.

As a result of the debt restructuring, the bank has issued a new
USD1 billion Eurobond, which is held mostly by the State Oil Fund
of Azerbaijan Republic, Fitch understands from management. The
issue is rated long-term 'B-', in line with the bank's Long-Term
IDR, reflecting Fitch's view of average recovery prospects, in
case of default.

SUPPORT RATING AND SUPPORT RATING FLOOR

The affirmation of the Support Rating of' 5' and Support Rating
Floor of 'No Floor' reflects Fitch's view that support from the
shareholder, the Azerbaijan sovereign (BB+/Negative), cannot be
relied upon in the long term following the bank's recent default.
However, in Fitch's view some form of forbearance or support may
be made available to the bank in the near term to avoid a repeat
default on third-party senior obligations, should its capital be
depleted by losses resulting from its FX position.

RATING SENSITIVITIES

IBA's VR could be upgraded if the bank is able to hedge its open
foreign currency position and if the hedge is viewed by Fitch as
effective and reliable. Conversely, if the bank fails to close its
currency position and incurs losses as a result of manat
depreciation against the US dollar, then the VR may be downgraded,
potentially to 'f' to reflect a material capital shortfall.

IBA's Long-Term IDR will probably become aligned with the bank's
VR if the latter is upgraded. If the VR is downgraded then the
Long-Term IDR will likely be affirmed at 'B-', unless Fitch
believes there is a real possibility of losses being imposed on
third-party senior creditor to restore the bank's solvency.

Positive rating action on the bank's Support Rating and Support
Rating Floor is unlikely in the near term given the bank's recent
default.

The rating actions are:

Open Joint Stock Company International Bank of Azerbaijan

Long-Term IDR: upgraded to 'B-' from 'RD', Outlook Stable
Short-Term IDR: upgraded to 'B' from 'RD'
Viability Rating: upgraded to 'ccc' from 'f'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt: assigned at 'B-'; Recovery Rating 'RR4'



===========================
C Z E C H   R E P U B L I C
===========================


ENERGO-PRO AS: Fitch Rates Proposed Sr. Unsec. Notes 'BB(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned ENERGO-PRO a.s.'s (EPas) proposed notes
a senior unsecured 'BB(EXP)' rating, in line with EPas's expected
Long-Term Issuer Default Rating (IDR) of 'BB(EXP)', which is on
Stable Outlook.

The final rating is contingent upon the receipt of final
documentation conforming materially to information already
received and details regarding the amount, coupon rate and
maturity.

The notes will be issued by EPas and will constitute direct,
unconditional and unsecured obligations of EPas and will rank
equally among themselves and with all other unsecured and
unsubordinated obligations of EPas. The notes will be fully and
unconditionally guaranteed by ENERGO-PRO Georgia Generation JSC
and ENERGO-PRO Georgia JSC and Energo-Pro Varna EAD, once the
latter redeems its existing bonds. The guarantors together
represented around 73% of consolidated EBITDA in 2016. The
proceeds will be used by EPas for its general corporate purposes,
including the refinancing of group indebtedness.

EPas's ratings reflect the supportive network regulatory regime
and support mechanism available for part of the generation
business, as well as the company's geographic diversification. The
ratings also factor in EPas's small size relative to other rated
European utilities; cash flow volatility due to supply pass-
through items; regulatory changes; and varying hydrology
conditions affecting generation volumes. Operating environment and
key-person risk stemming from ultimate ownership by one individual
are also limiting factors. The ratings further reflect EPas's
consolidated group profile, without notching for subordination
based on the proposed group refinancing plan.

KEY RATING DRIVERS

Diversified Group, Small Size: EPas is an independent hydro power
producer and electricity distributor in the Black Sea region,
operating a portfolio of 35 power plants in Bulgaria (BBB-
/Positive), Georgia (BB-/Stable) and Turkey (BB+/Stable), with
total installed capacity of 854MW (of which 87% are hydro power
plants), up to 3TWh of power generation per annum and about 10TWh
of electricity distributed in Bulgaria and Georgia. Epas is small
compared with most rated European utilities, although the company
benefits from geographical diversification with Georgian and
Bulgaria businesses each contributing about 41% of EBITDA and the
remainder is generated in Turkey.

Among Largest in Georgia and Bulgaria: EPas operates one of the
three electricity distributors in Bulgaria, covering north-eastern
regions of Bulgaria (about 26% of the country). In Georgia EPas
operates one of the largest electricity distribution and supply
companies, covering about 85% of the country's territory. The
company also benefits from access to end-customers payments
through its supply business in Bulgaria and Georgia. In Bulgaria
the supply business reports about 5% EBITDA margin, while in
Georgia the supply business is not legally unbundled at present
and is a pass-through item for the regulated distribution
business.

Nascent Distribution Regulation: The majority of EPas's EBITDA
(about 55%) is derived from regulated distribution businesses in
Bulgaria and Georgia. Fitch view the regulatory framework in these
countries as supportive, but weaker compared with more established
frameworks in most EU countries as although it uses the regulated
asset base principle, it is based on historical book values,
rather than replacement values, of assets. The framework in
Georgia is relatively new, entering its second regulatory period
from 2018 and the regulatory periods in Bulgaria can be relatively
short. In addition to historical tariff changes, the supply cost
pass-through element in Georgia leads to cash flow volatility.

Supported Power Generation: Hydro-based generation represents 35%
of EPas's EBITDA, most of which comes from plants selling power
under feed-in schemes, thus reducing price risk. Tariff support is
available for some plants in Bulgaria until 2024-2025 and in
Turkey until 2019-2020. Fitch takes a positive view of the support
mechanisms in Bulgaria and Turkey. This partially offsets EPas's
small size of operations and the regulation in Georgia (which
constrains revenue there). Partial generation deregulation in
Georgia is planned for 2018 and Fitch expects this will support an
increase in earnings. The Turkish generation business also
benefits from tariffs being determined in US dollars (with actual
payments in Turkish lira). However, FX risk remains a constraint
for EPas.

EBITDA Volatility: EPas's EBITDA has been volatile over the last
four years, ranging from EUR104 million in 2014 to EUR164 million
in 2016 on the back of variable hydrology conditions and tariff
changes. Fitch expect EBITDA to decline in 2017, due to lower
hydro generation in all three countries and temporary volume-
related volatility in the distribution business. However, Fitch
expect EBITDA to recover to 2013-2016 averages in 2018.

Positive Free Cash Flow: Fitch expects EPas to continue generating
healthy cash flow from operations on average of about EUR110
million over 2017-2021. The company expects to increase capex to
on average around EUR58 million over 2017-2020, from an average
around EUR33 million over 2013-2016. The investment programme is
aimed at network upgrades in Georgia and medium- and low-voltage
grid upgrades in Bulgaria. Fitch forecast the company to remain
intrinsically (pre-dividend) free cash flow (FCF)-positive.

FX Exposure: The company is exposed to FX fluctuations as almost
all of its debt at end-2016 was denominated in currencies other
than the currencies in which the company generates revenue. The
majority of debt was from Czech Export Bank (about 61%), mainly to
fund the investment programme. In contrast, all the revenue is
denominated in the local currencies of the countries of operation,
although tariffs in Turkey are determined in US dollars and the
Bulgarian leva is pegged to the euro. EPas does not use any
hedging instruments, other than holding some cash in foreign
currencies. Fitch do not expect major changes to FX exposure with
the proposed refinancing.

Adjusted Debt Includes Guarantees: Fitch includes guarantees
issued by EPas or its subsidiaries for DK Holding or sister
companies within DK Holding group in the adjusted debt
calculations. Fitch view the forecast funds from operations (FFO)
connection-fee and guarantees adjusted net leverage on average of
about 4.3x over 2018-2021 as adequate for the current ratings.

Part of Larger Privately Owned Group: EPas is part of larger DK
Holding Investments s.r.o. (DK Holding) which is ultimately owned
by one individual; therefore, Fitch assesses key-person risk from
a dominant shareholder as higher than for most rated peers. DK
Holding also includes two hydro plants in the Czech Republic,
hydro development and construction projects in Turkey and a hydro
equipment production business in Slovenia. The latter two require
capex, which may be funded through dividends received from EPas,
as it is the major cash-generating subsidiary within DK Holding.
EPas expects its dividend policy to remain flexible and subject to
business needs.

EPas should remain within its internal target of net debt/EBITDA
of 3.5x and well within its proposed restricted payment and debt
incurrence covenants of 4.5x on or before 2019, 4x on or before
2020 and 3.5x thereafter. Fitch expect liquidity to be supported
by comfortable cash holding of EUR60 million. Fitch view these
financial targets as plausible, but Fitch add guarantees from EPas
group to other DK Holding entities to its debt. Fitch expect one-
off shareholder distributions of EUR100 million as part of
refinancing and other one-off cash outflows in 2017, and Fitch
expect dividends may be close to zero in 2018 and about EUR15
million annually thereafter.

DERIVATION SUMMARY

EPas is smaller than other rated European utilities such as EP
Energy, a.s. (BB+/Stable), Energa S.A. (BBB/Stable) or Bulgarian
Energy Holding EAD (BB-/Stable), although it is one of the largest
utilities companies in Georgia (for example compared with Georgian
Water and Power LLC (BB-/Stable)) and Bulgaria. EPas's EBITDA was
more volatile over 2013-2016 compared with many peers', but the
company benefits from mostly neutral-to-positive FCF generation.
EPas's leverage is higher than EP Energy's and Energa's.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

- Bulgarian, Georgian and Turkey GDP growth of 2.5%-3%, 3.5%-4%
   and 4%-4.7% over 2017-2020 respectively;

- Bulgarian, Georgian and Turkey CPI of 1.2%-2.5%, 3.8%-4.5% and
   7.4%-10.7% over 2017-2020 respectively;

- Electricity generation to decline by about 19% yoy in 2017
   before rising to 2013-2017 averages (cumulatively over all
   regions in which EPas operates) from 2018;

- Capex close to management expectations of about EUR58 million
   on average over 2017-2021;

- Dividends payments to the extent that cash remains at a
   comfortable level of about EUR60 million; and

- EUR100 million shareholder distributions and other one-off
   cash outflows in 2017 of around EUR50 million.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- Increased scale of operation, less volatile earnings, strong
   track record of supportive regulation and reduction of FX
   exposure.

- Improved FFO adjusted net leverage (excluding connection fees
   and including group guarantees) below 3.5x on a consistent
   basis.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- A reduction in profitability and cash generation, leading to
   an increase in FFO adjusted net leverage (excluding connection
   fees and including group guarantees) above 4.5x and FFO fixed
   charge coverage below 4x on a consistent basis.

LIQUIDITY

Fitch views EPas's liquidity prior to refinancing as weak, but
manageable. At end-2016, EPas's short-term debt was EUR141 million
against cash and cash equivalents of EUR82 million, along with
unused credit facilities of EUR1.8 million. The company is
considering placing notes at the holding company level to
refinance the majority of its debt at operating companies, except
for working capital loans at EP Georgia and loans from CEB to EP
Bulgaria and EPas's hydro generation business in Turkey. Fitch
expect EPas's FCF to be negative in 2017 and positive over 2018-
2020; with an expected cash balance of around EUR60 million, this
will support its liquidity profile.



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


NAVIOS MARITIME: Moody's Hikes Corporate Family Rating to B3
------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating of
Navios Maritime Holdings, Inc. to B3 from Caa1 and the probability
of default rating to B3-PD from Caa1-PD. Moody's simultaneously
upgraded the rating of Navios Holdings' USD650 million senior
secured ship mortgage notes due 2022 to B2 from B3. Further,
Moody's assigned a definitive rating of Caa2 (changed from
provisional (P)Caa2) to the USD305 million senior secured notes
due 2022 recently issued by Navios Holdings and whose proceeds
will be used to redeem the outstanding USD291 million senior
unsecured notes due 2019. The Caa3 rating of the 2019 notes is
unchanged and it will be withdrawn upon repayment. This concludes
Moody's review for upgrade initiated on
November 6, 2017. The rating outlook is stable.

RATINGS RATIONALE

"Navios Holdings successfully placed its senior secured bonds
addressing its largest near-term maturity," says Maria Maslovsky,
Moody's Vice President -- Senior Analyst and the lead analyst for
Navios Holdings. "This was a key consideration in Moody's review,"
adds Maslovsky.

The rating action reflects Navios Holdings' successful placement
of a USD305 million senior secured note due 2022 which will allow
the company to tender for its outstanding USD291 million senior
unsecured notes due 2019. The USD291 million senior unsecured
notes due 2019 are Navios Holdings' largest near-term maturity. As
Moody's previously indicated, the company's ability to address
this maturity would improve its liquidity such that the agency
would likely conclude its review of Navios Holdings' ratings with
an upgrade.

Navios Holdings issued new senior secured notes with a five-year
tenor and 11.25% coupon. The notes are secured by a first priority
lien on the equity interests of Navios Holdings in each of Navios
Maritime Partners, L.P. (B3 stable), Navios GP L.L.C., Navios
Maritime Acquisition Corporation (B3 stable), Navios South
American Logistics Inc. (B3 stable) and Navios Maritime Containers
Inc. The notes are guaranteed by all of Navios Holdings' direct
and indirect subsidiaries, except for certain subsidiaries
designated as unrestricted subsidiaries, including Navios South
American Logistics Inc.

Moody's recent upgrade of Navios Holdings reflected the
improvements in the dry bulk market, where Navios Holdings' fleet
is deployed, underpinned by rising time charter rates. The upgrade
further reflects Moody's expectation that Navios Holdings'
performance in the coming quarters will strengthen as a result of
market recovery and its credit metrics, particularly leverage,
will improve commensurately. In specific, Moody's anticipates that
Navios Holdings' leverage measured as debt/EBITDA will decline
toward 10x by year-end 2017 and further reduce toward 6x by year-
end 2018 from 12.6x for the twelve months ending June 30, 2017.

Navios Holdings' B3 corporate family rating reflects (1) the
company's large and diverse dry bulk fleet that is slightly
younger than the industry average; (2) some indirect
diversification in a logistics business through Navios South
American Logistics (NSAL) and stakes in various affiliated
companies present in the tanker and container shipping segments;
(3) efficient operations as a result of the economies of scale
owing to the overall size of the Navios Group incorporating close
to 200 vessels; (4) experienced management team; and 5) material,
although improving leverage.

Navios Holdings' liquidity is adequate with USD114 million of
unrestricted cash at September 30, 2017, expected positive free
cash flow (after capex and dividends), no near-term debt
maturities and minimal capex.

The stable rating outlook reflects Moody's expectation that Navios
Holdings will be able to maintain credit metrics in line with the
B3 rating, as well as an adequate liquidity profile. The agency
further anticipates that the company's leverage will be sustained
closer to 6x debt/EBITDA in the next 12-18 months and that the
company will generate positive free cash flow.

Positive rating pressure would be likely if Navios Holdings
charters the majority of its fleet on a longer term basis at fixed
rates such that its leverage is sustained below 5x debt/EBITDA
while maintaining positive free cash flow and adequate liquidity.

Negative rating pressure could result from a downturn in the dry
bulk market or a deterioration in the financial performance or
value of its investment holdings such that Navios Holdings'
leverage increases and is sustained beyond 7x debt/EBITDA. Any
liquidity challenges would also be a concern.

Navios Holdings, which is listed on the New York Stock Exchange,
is a global shipping and logistics company. In addition to its own
operations in the transport of dry bulk commodities, Navios
Holdings owns a 63.8% stake in the logistics company NSAL and
various minority stakes, including (1) a 20.8% stake in the dry
bulk and container shipping company Navios Maritime Partners L.C.;
(2) a 46.2% economic interest in the tanker company Navios
Acquisition and (3) an indirect economic interest of 27.2% in
Navios Maritime Midstream Partners LP. In 2016, Navios Holdings
generated revenues of USD420 million as reported by the company.

The principal methodology used in these ratings was Global
Shipping Industry published in February 2014.



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


BLACKROCK EUROPEAN IV: S&P Assigns B-(sf) Rating to Cl. F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to BlackRock
European CLO IV DAC's class A, B1, B2, C, D, E, and F notes. At
closing, BlackRock European CLO IV also issued unrated
subordinated notes.

BlackRock European CLO IV is a cash flow collateralized loan
obligation (CLO) transaction, securitizing a portfolio of
primarily senior secured loans granted to speculative-grade
corporates. BlackRock Investment Management (UK) Ltd. manages the
transaction.

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs. Following such an
event, the notes will permanently switch to semiannual interest
payments.

The portfolio's reinvestment period will end 4.2 after closing,
and the portfolio's maximum average maturity date is 8.6 years
after closing.

S&P said, "On the effective date, we understand that the portfolio
will represent a well-diversified pool of corporate credits, with
a fairly uniform exposure to all of the credits. Therefore, we
have conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow collateralized debt obligations.

"In our cash flow analysis, we have modelled a portfolio target
par amount of EUR450 million, including 12.5% of assets paying a
fixed rate of interest, a weighted-average spread of 3.70%, a
weighted-average coupon of 5.50%, and the expected weighted-
average recovery rates at each rating level.

"The participants' downgrade remedies are in line with our current
counterparty criteria.

"The issuer is in line with our bankruptcy remoteness criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for each class
of notes."

RATINGS LIST

BlackRock European CLO IV DAC
EUR466.1 mil secured fixed-rate and floating-rate notes

                                   Amount
  Class           Rating        (mil, EUR)
  A               AAA (sf)         270.0
  B1              AA (sf)          38.5
  B2              AA (sf)          20.0
  C               A (sf)           27.0
  D               BBB (sf)         22.5
  E               BB (sf)          25.4
  F               B- (sf)          13.9
  Sub             NR               48.8

  NR--Not rated.


HARVEST CLO XIV: Moody's Assigns Ba1 Rating to Cl. E-R Notes
------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to seven
classes of notes ("Refinancing Notes") issued by Harvest CLO XIV
Designated Activity Company:

-- EUR239,000,000 Class A-1A-R Senior Secured Floating Rate
    Notes due 2029, Definitive Rating Assigned Aaa (sf)

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

-- EUR32,000,000 Class B-1-R Senior Secured Floating Rate Notes
    due 2029, Definitive Rating Assigned Aa1 (sf)

-- EUR10,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
    2029, Definitive Rating Assigned Aa1 (sf)

-- EUR23,000,000 Class C-R Senior Secured Deferrable Floating
    Rate Notes due 2029, Definitive Rating Assigned A1 (sf)

-- EUR25,000,000 Class D-R Senior Secured Deferrable Floating
    Rate Notes due 2029, Definitive Rating Assigned Baa1 (sf)

-- EUR24,500,000 Class E-R Senior Secured Deferrable Floating
    Rate Notes due 2029, Definitive Rating Assigned Ba1 (sf)

Additionally, Moody's has upgraded the existing Class F notes
issued by Harvest XIV:

-- EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2029, Upgraded to B1 (sf); previously on Nov 20,
    2015 Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the rated notes address the expected
loss posed to noteholders by the legal final maturity of the notes
in 2029. The definitive ratings reflect the risks due to defaults
on the underlying portfolio of assets, the transaction's legal
structure, and the characteristics of the underlying assets.
Furthermore, Moody's is of the opinion that the Collateral
Manager, Investcorp Credit Management EU Limited ("Investcorp"),
has sufficient experience and operational capacity and is capable
of managing this CLO.

The Issuer will issue the the Class A-1A-R Notes, the Class A-2-R
Notes, the Class B-1-R Notes, the Class B-2-R Notes, the Class C-R
Notes, the Class D-R Notes and the Class E-R Notes in connection
with the refinancing of the following classes of Original Notes:
the Class A-1A Notes, the Class A-1B Notes, the Class A-2 Notes,
the Class B-1 Notes, the Class B-2 Notes, the Class C Notes, the
Class D Notes and the Class E Notes due November 18, 2029 (the
"Original Notes"), previously issued on November 18, 2015 (the
"Original Closing Date"). On the refinancing date, the Issuer will
use the proceeds from the issuance of the Refinancing Notes to
redeem in full its respective Original Notes. On the Original
Closing Date, the Issuer also issued the Class F Notes as well as
one class of subordinated notes, which will remain outstanding.

The rating action on the Class F is primarily a result of the
increase in the excess spread available to the transaction
resulting from the refinancing of the Original Notes.

As part of this refinancing, the Issuer will extend the weighted
average life of the portfolio by 15 months.

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

Investcorp 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 remaining two-year reinvestment
period. Thereafter, purchases are permitted using principal
proceeds from unscheduled principal payments and proceeds from
sales of credit improved and credit risk obligations, and are
subject to certain restrictions.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

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

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

Target Par Amount: EUR400,000,000

Defaulted par: EUR0

Diversity Score: 51

Weighted Average Rating Factor (WARF): 3085

Weighted Average Spread (WAS): 4.21%

Weighted Average Recovery Rate (WARR): 44.09%

Weighted Average Life (WAL): 7.26 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond ratings of A1 or below. According to the portfolio
constraints, the total exposure to countries with a local currency
country risk bond ceiling ("LCC") below Aa3 shall not exceed 10%.
Furthermore, the eligibility criteria preclude the Issuer from
investing in obligors domiciled in country with a Moody's LLC
rating below A3. Given this portfolio composition, the model was
run without the need to apply portfolio haircuts as further
described in the methodology.

Stress Scenarios:

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

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

Percentage Change in WARF -- increase of 15% (from 3085 to 3548)

Rating Impact in Rating Notches:

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

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

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

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

Class C-R Senior Secured Deferrable Floating Rate Notes: -1

Class D-R Senior Secured Deferrable Floating Rate Notes: -1

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 3085 to 4011)

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

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

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

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

Class C-R Senior Secured Deferrable Floating Rate Notes: -3

Class D-R Senior Secured Deferrable Floating Rate Notes: -3

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0


MAGELLAN MORTGAGES 3: S&P Raises Class D Notes Rating to BB(sf)
---------------------------------------------------------------
S&P Global Ratings raised and removed from CreditWatch positive
its credit ratings on Magellan Mortgages No. 3 PLC's class A, B,
and C notes. At the same time, S&P has raised its rating on the
class D notes.

S&P said, "The rating actions follow our credit and cash flow
analysis of the most recent transaction information that we have
received as of the August 2017 payment date. We have applied our
European residential loans criteria, our structured finance
ratings above the sovereign (RAS) criteria, and our current
counterparty criteria.

"On Oct. 10, 2017, we placed on CreditWatch positive our ratings
on Magellan Mortgages No. 3's class A, B, and C notes following
our Sept. 15, 2017 upgrade of Portugal.

"Since our previous full review, available credit enhancement, has
increased for all classes of notes."

  Class         Available credit
                 enhancement (%)
  A                         9.55
  B                         6.76
  C                         5.46
  D                         2.42

This transaction features a non-amortizing reserve fund, which is
at its required level of EUR9 million. The notes are currently
amortizing pro rata.

S&P said, "Severe delinquencies of more than 90 days (including
defaults) are at 5.45%, and are higher than our Portuguese
residential mortgage-backed securities (RMBS) index. Defaults are
defined as mortgage loans in arrears for more than 360 days in
this transaction. Unlike other Portuguese RMBS transactions that
we rate, the servicer does not report gross cumulative defaults.
The prepayment level, at about 4.42%, is also higher than our
Portuguese RMBS index.

"After applying our European residential loans criteria to this
transaction, our credit analysis results show a decrease in the
weighted-average foreclosure frequency (WAFF) and in the weighted-
average loss severity (WALS)."

  Rating level     WAFF (%)   WALS (%)
  AAA                 12.91       9.62
  AA                   9.54       7.13
  A                    7.73       3.43
  BBB                  5.68       2.00
  BB                   3.58       2.00
  B                    2.97       2.00

S&P said, "The WAFF decreased since our previous review mainly
because it benefitted from the pool's high seasoning and the lower
arrears level. The WALS decreased mainly due to the application of
our updated market value decline assumptions. The overall effect
is a decrease in the required credit coverage for each rating
level.

"Under our RAS criteria, this transaction's notes can be rated up
to six notches above the sovereign rating, subject to credit
enhancement being sufficient to pass an extreme test. As our
unsolicited foreign currency long-term sovereign rating on the
Republic of Portugal is 'BBB-', our RAS criteria cap at 'AA- (sf)'
our rating on the class A notes. For all other classes of notes,
the maximum potential rating is 'A'.

"Following the application of our RAS criteria, our counterparty
criteria, and our European residential loans criteria, we have
determined that our assigned rating on each class of notes in this
transaction should be the lower of (i) the rating as capped by our
RAS criteria, (ii) the rating as capped by our current
counterparty criteria and (iii) the rating that the class of notes
can attain under our European residential loans criteria.

"During our previous full review, we applied an incorrect swap
margin into our cash flow assumptions. As the swap margin is
minimal, this error had no impact on the ratings on the notes.
Taking into account the results of our updated credit and cash
flow analysis and the application of our RAS criteria, we consider
that the available credit enhancement for the class A, B, and C
notes is commensurate with higher ratings than those currently
assigned. Although the class A, B, and C notes can pass at higher
rating levels under our standard assumptions, our ratings on these
classes of notes are constrained by the rating on the sovereign.
We have therefore raised to 'A (sf)' and removed from CreditWatch
positive our ratings on these classes of notes.

"We consider that the available credit enhancement for the class D
notes is commensurate with a higher rating than that currently
assigned. We have therefore raised to 'BB (sf)' from 'B+ (sf)' our
rating on the class D notes.

"In our opinion, the outlook for the Portuguese residential
mortgage and real estate market is not benign and we have
therefore increased our expected 'B' foreclosure frequency
assumption to 3.33% from 2.00%, when we apply our European
Residential loans criteria, to reflect this view."

Magellan Mortgages No. 3 is a Portuguese RMBS transaction, which
closed in June 2005 and securitizes first-ranking mortgage loans
that Banco Commercial Portugues originated.

  RATINGS LIST

  Class           Rating
            To             From

  Magellan Mortgages No. 3 PLC
  EUR1.52 Billion Mortgage-Backed Floating-Rate Notes

  Ratings Raised And Removed From CreditWatch Positive
  A         A (sf)         A- (sf)/Watch Pos
  B         A (sf)         A- (sf)/Watch Pos
  C         A (sf)         BB+ (sf)/Watch Pos

  Rating Raised
  D         BB (sf)        B+ (sf)



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


ASTALDI SPA: Fitch Lowers Long-Term IDR to B/RR4, Outlook Neg
-------------------------------------------------------------
Fitch Ratings has downgraded Italy-based building construction
company Astaldi S.p.A.'s Long-Term Issuer Default Rating (IDR) and
senior unsecured rating to 'B'/'RR4' from 'B+'. The Outlook is
Negative.

The downgrade reflects Astaldi's failure to delever its capital
structure in line with Fitch's expectations. The company's rating
will continued to be pressured by high leverage outside Fitch
negative rating guidelines, the cash outflow due to working-
capital increases despite improved operational performance, and
limited proceeds from disposals of concessions. Fitch expects any
benefit from the usual reverse of the working capital in the last
quarter to be limited and insufficient to materially reduce the
gross debt.

The Negative Outlook is predicated on the risk that the capital
structure will remain weak if the planned capital increase fails
to materialise, and that the asset disposal plan will encounter
further delays.

KEY RATING DRIVERS

High Leverage: Astaldi's gross debt has further increased over the
past nine months mainly due to unfavourable working-capital
dynamics. Delays in the collection of receivables in Algeria and
Romania, and the acceleration of works in Turkey - where payment
terms envisage instalment billing -contributed to the increase in
the debt burden. Even though the company's payment cycle is likely
to turn positive in the last quarter, Fitch anticipates the 2017
year-end gross debt figure to remain above EUR2.0 billion, at a
level similar to end-2016.

The divestment programme is yet to contribute noticeably to debt
reduction. The EUR130 million proceeds from completed asset sales
are partially being reinvested in concession and in the
construction business. The lack of positive cash flow from the
latter and of meaningful proceeds from disposals has resulted in
high leverage, which is not commensurate with a 'B+' rating.

Venezuela Write-Off Impact: The company announced a write-off of
EUR230 million of its credit exposure in Venezuela, which amounted
to EUR430 million before the impairment. Fitch has not factored in
the collection of these receivables in the past and therefore the
impact of the write-off is neutral from a cash-flow perspective.
However, as the net effect of the write-off reduces the net equity
of the company (of around EUR150 million), Astaldi is
renegotiating with its banks a waiver for the covenant on the
EUR500 million RCF (net debt/net of 4.15 for 2017). If Astaldi's
liquidity is reduced as a result, the ratings would probably come
under further pressure.

Revised Year-End Targets: The management has revised down its
financial targets for the year-end. The write-off had an impact on
the income statement, while protracted delays in collecting
receivables and Astaldi's boosting of its construction activity,
resulted in a higher than expected leverage. The company's new net
debt target for this year increased to EUR1.15 billion, EUR150
million higher than the previous guideline.

Operating Performance: Astaldi reported positive top-line growth
(+2% year-on-year) and healthy EBITDA margin (13.8%) in the first
nine months, thanks to its gradual repositioning towards
engineering, procurement, construction (EPC) contracts and its
marketing efforts into new and less risky markets. The order
backlog is solid and provides a degree of revenue visibility over
the next 24 months.

Capital Increase Mildly Positive: The planned EUR200 million
capital increase would be positive for Astaldi's credit profile
only if used to reduce gross debt. The potential additional issue
of EUR200 million of financial instruments, however, whilst
providing better short-term liquidity, could put additional
pressure on the current ratings if in the form of the debt-like
instruments.

DERIVATION SUMMARY

Astaldi has prominent market positions in some business segments
and higher-than-average profitability. Investments in concessions
allowed the company to steadily increase volumes over the past few
years, with the construction business benefiting from captive
orders. Such investments, however, paired with delays in its asset
disposal programme, increased debt and leverage. Its business
profile and engineering capabilities compare favourably with
higher-rated entities such as OHL (B+/Negative) or Salini
(BB+/Stable) in some sub-segments. Its high leverage is similar to
that of its smaller peer Aldesa (B/Stable).

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

- gradual improvement of working-capital dynamics;
- measured capex and very limited investments into concessions;
- dividend distribution similar to the past;
- uncommitted drawn credit lines rolled over annually.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- Successful implementation of the strategic plan leading to
   meaningful gross recourse debt reduction
- Material improvement in working-capital dynamics
- Fitch-adjusted net leverage, including factoring, below 4.5x
   on a sustained basis
- Improved geographic mix with an increased exposure towards
   lower-risk markets, construction contracts with advanced
   payments and reduced order backlog concentration

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- Evidence of a worsening liquidity position
- Failure to deliver its asset disposal plan
- Evidence of material losses on construction projects
- Fitch-adjusted net leverage, including factoring, above 5.5x
   on a sustained basis
- Further material equity injections into concession activity

LIQUIDITY

Liquidity: The company recently negotiated a bank financing
package which includes a mix of committed and uncommitted credit
lines. In addition to the EUR500 million RCF -- the covenants of
which are under renegotiation -- the banks granted Astaldi with a
new committed RCF for EUR120 million. For its short-term needs,
the company historically has had access to short term facilities
(around EUR600 million as at end-September 2017), renewed every
three to six months, although not formally committed. Fitch rating
case for Astaldi assumes these lines are rolled over.



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


ROOF POLAND 2014: Fitch Raises Rating on Class B Notes From BB-
---------------------------------------------------------------
Fitch Ratings has upgraded Roof Poland Leasing 2014 DAC's notes:

PLN636 million class A-1 notes: upgraded to 'AAsf' from 'AA-sf';
Outlook Stable

PLN234.2 million class A-2 notes: upgraded to 'AAsf' from 'AA-
sf'; Outlook Stable

PLN383.5 million class B notes: upgraded to 'BBBsf' from 'BB-
sf'; Outlook Stable

The transaction is a securitisation of lease instalments related
to new and used cars, trucks, trailers and machinery granted to
Polish commercial clients by PKO Leasing S.A. (formerly Raiffeisen
Leasing Polska S.A. (RLP), which was bought by the PKO Group in
December 2016 and merged with PKO Leasing S.A. (PKO) in April
2017). The transaction originally closed in December 2014 and
acquired more assets and issued further notes in December 2015.
The transaction's revolving period ends in December 2017.

KEY RATING DRIVERS

Strong Asset Performance: Cumulative defaults are significantly
lower than Fitch's initial expectation and currently stand at 1.1%
of the current asset balance. Delinquencies in the 60 to 120dpd
bucket are around 0.4%. Fitch expects the favourable economic
conditions for the Polish economy and leasing market to continue
over the transaction's remaining term. Fitch has therefore lowered
its remaining lifetime default base case to 4.0% from 6.6%.

Stable Pool Characteristics: The pool's stratification in client
and lease object segments has not changed materially over the last
year. Lessee exposure concentration is also little changed, with
the 10 biggest lessee exposures at 2.1% of the current balance. As
the revolving period ends in December 2017 Fitch consider a
migration towards a worse pool composition to be unlikely now and
have lowered the 'AA' default multiple to 5.25x from 5.6x.
Additionally, Fitch no longer assumes that at the end of the
revolving period the PDL balance will amount to 0.5% of the then
outstanding asset balance.

Originator Risk Contained: Fitch's analysis takes into account the
possibility of an insolvency of PKO, which would mainly impact the
commingling of funds -- for which Fitch has assumed a 6% loss --
and the exclusion from assumed recoveries of asset sale proceeds,
which the transaction might not be able to access after PKO's
insolvency.

As only leases originated by the former RLP entity are sold to the
SPV, Fitch views the merger as having no impact on origination
quality. Fitch further deems the merged entity PKO as a capable
servicer for the transaction.

Sovereign-Related Cap: As per Fitch's Structured Finance and
Covered Bonds Country Risk Rating Criteria, Polish structured
finance transactions are currently capped at 'AAsf', ie four
notches above the sovereign's Long-Term Local-Currency Issuer
Default Rating (A-). Therefore, rating action on the sovereign
would lead to a review of the notes' ratings.

RATING SENSITIVITIES

Rating sensitivity to increased default rate assumptions
(class A /class B)
Current ratings: 'AAsf' / 'BBBsf'
Increase in default rate by 10%: 'AAsf' / 'BBB-sf'
Increase in default rate by 25%: 'AAsf' / 'BB+sf'
Increase in default rate by 50%: 'AAsf' / 'BBsf'

Rating sensitivity to reduced recovery rate assumptions
(class A / class B)
Current ratings: 'AAsf' / 'BBBsf'
Decrease in recovery rate by 10%: 'AAsf' / 'BBBsf'
Decrease in recovery rate by 25%: 'AAsf' / 'BBBsf'
Decrease in recovery rate by 50%: 'AAsf' / 'BBB-sf'

Rating sensitivity to increased default and reduced recovery rates
(class A / class B)
Current ratings: 'AAsf' / 'BBBsf'
Increase in default rate by 10%, decrease in recovery rate by 10%:
'AAsf' / 'BBB-sf'
Increase in default rate by 25%, decrease in recovery rate by 25%:
'AAsf' / 'BB+sf'
Increase in default rate by 50%, decrease in recovery rate by 50%:
'AAsf' / 'BB-sf'

A downgrade of Poland's Long-Term LC IDR would lead to a review of
the notes' rating.



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


ALLIANCE AUTOMOTIVE: S&P Withdraws 'B+' LT Corp Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew its 'B+' long-term corporate credit
rating on Alliance Automotive Holding Ltd, the parent company of
Alliance Automotive Group (AAG).

S&P said, "We also withdrew the related issue and recovery ratings
on the group's debt.

"We have withdrawn our rating on Alliance Automotive Holding Ltd
at the group's request."

This follows the completion of the acquisition of AAG by U.S.-
based Genuine Parts Company (unrated) and the full redemption of
the EUR640 million senior secured notes issued by Alliance
Automotive Finance Plc, as well as the EUR65 million super senior
revolving credit facility borrowed by Alliance Automotive
Investment Ltd on Nov. 2, 2017.


BELL POTTINGER: Hanover Group Buys Middle Eastern Assets
--------------------------------------------------------
Matthew Garrahan at The Financial Times reports that
European communications consultancy Hanover Group has acquired the
Middle Eastern assets of Bell Pottinger, the PR firm that fell
apart after it was accused of stoking racial tensions in South
Africa as part of its work for the Gupta family.

Financial terms of the deal, which represents another step towards
the break-up of the collapsed firm, were not disclosed, the FT
notes.

In September, a majority of Bell Pottinger's 250 staff were made
redundant, the FT recounts.

According to the FT, administrators from accountancy firm BDO have
been working to salvage what they can from the company, once one
of Britain's best known public relations firms.

Bell Pottinger Middle East was not implicated in the South African
scandal that engulfed the firm and led to its downfall, the FT
states.


DEBENHAMS PLC: S&P Alters Outlook to Neg., Affirms 'BB-' CCR
------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K. department store
retailer Debenhams PLC to negative from stable.

S&P said, "At the same time, we affirmed our 'BB-' long-term
corporate credit rating on Debenhams and our issue-level ratings
on the company's GBP225 million senior unsecured notes (of which
GBP200 million remain outstanding). The recovery rating on the
notes remains unchanged at '3', reflecting our expectation of
meaningful recovery prospects (50%-70%; rounded estimate: 65%) in
the event of default.

"We expect the challenging macroeconomic conditions of the past
several quarters to continue in the remainder of 2017 and through
2019, weighing on Debenhams' topline, margins, and cash
generation. We think that the current weak operating trends in the
U.K. retail sector are the result of cyclical headwinds
exacerbated by the Brexit vote -- which we expect to hamper near-
term consumer confidence and discretionary spending -- and a
secular change in spending habits as consumers continue to shift
their purchases online and toward entertainment-based spending.
This, coupled with pressure from value and discount retailers who
continue to gain market share as consumers seek ever-greater
value, continues to weigh on traditional retailers' operating
performance. We expect further growth-related spending and
restructuring costs, incurred as a part of the "Debenhams
Redesigned" strategy, to compound these profitability pressures,
resulting in a material weakening of the group's cash flows. Under
such a scenario, if the group were to continue paying dividends at
a comparable rate to the GBP42 million paid in FY2017, this could
further erode the group's credit quality, in our opinion."

At the same time, Debenhams continues to implement a number of
initiatives focused on increasing footfall, in-store capacity
utilization, and online revenues. Its modest on-balance-sheet
financial debt, focus on working capital management, and ability
to scale capex and dividends to match earnings expectations should
support cash conversion and financial flexibility, in S&P's
opinion.

S&P said, "We think that Debenhams will maintain its solid mid-
market position as one of the U.K.'s largest department store
retailers, aided by its strong brand awareness and leading market
shares in several product subsegments, such as premium beauty
products and handbags. The holiday trading period, which
encompasses "Black Friday" and Christmas, drives performance in
Debenhams' most earnings- and cash-generative fiscal semi-annual
period ending February, and could provide upside to the company's
credit metrics in the near term.

"To date, the significant impact of the group's operating lease
commitments on our calculation of leverage and coverage metrics,
such as debt to EBITDA and funds from operations (FFO) to debt,
has been somewhat offset by robust reported free operating cash
flow (FOCF) generation in excess of dividend payments. Against a
backdrop of short-term profitability constraints, we think that
Debenhams' ambitious capex program -- which is primarily aimed at
systems and logistics improvements to support online sales growth,
but also includes a significant amount for store modernizations --
could constrain reported FOCF generation over the next two years.
This deterioration in cash flow generation could result in credit
metrics that are no longer commensurate with our current 'BB-'
rating. Moreover, if Debenhams' earnings come under further
pressure, it could constrain headroom under the company's
maintenance financial covenants -- and its fixed charge cover
covenant in particular given the relatively high absolute amount
of rental expenses -- and affect the company's liquidity position.

"That said, the absolute drop in reported EBITDA commensurate with
the risk of a formal breach to become material remains
significant, and such a large fall is not part of our current base
case.

"We expect gross margins to come under further pressure over the
course of the next 12 months as the roll-off of pre-Brexit hedging
contracts could lead to significant inflation on about 25% of the
group's input costs following the weakening of the pound sterling
against the U.S. dollar. We also expect a continued shift in the
company's sales mix toward lower margin non-clothing categories
such as beauty and gifting, along with National Living Wage
increases, and moderate rental expense inflation to contribute to
a further near-term contraction in reported EBITDA margins.

"Although we expect initiatives to reduce markdown sales will
somewhat offset these gross margin pressures, this strategy may be
challenged as soft market conditions cause further promotional
activity among discretionary goods retailers. We continue to view
cost reduction efforts, coupled with new product lines, service
initiatives, and the growth of its online and omnichannel sales,
as crucial for Debenhams to protect its top line and margins, and
strengthen its market position in a highly competitive industry.

"While we expect Debenhams' e-commerce business to continue to
expand, we anticipate that these investments will take time to
bear fruit, limiting short-term cash flow generation. We continue
to expect the group's e-commerce revenues to grow at a slower pace
than pure online players such as Asos and Zalando. As such, we
expect that like-for-like (LFL) declines at physical stores will
continue to at least neutralize any near-term improvements to the
group's e-commerce revenues. We still view the group's own brand
products and growing multi-channel capabilities as key mitigating
factors to the risk of product substitution posed by online
competitors. At the same time, we expect the company's focus on
working capital management and operating cost efficiencies to
allow it to generate positive reported FOCF."

Assumptions:

-- Moderate U.K. real GDP growth of 1.4% in 2017 and 0.9% in
    2018, along with consumer price inflation (CPI) of 2.6% in
    2017 and 2.2% in 2018, with the latter supported by exchange
    rate pressures, some of which will be passed on to consumers
    and suppliers;

-- Mild underperformance in the U.K. retail sector in 2017 and
    2018 relative to nominal GDP, as real wages begin to contract
    and consumer spending continues to shift toward entertainment
    and away from more traditional retail propositions;

-- Modest declines in statutory revenues in both financial year
    (FY) 2017 and FY2018, as online and international LFL sales
    fail to offset declines in U.K. LFL store sales. However, S&P
    do factor in some benefits from increases in U.K. CPI, the
    company's aim to increase sales density within U.K. stores,
    and favorable foreign exchange translation gains on the
    group's international sales;

-- Moderate (50-100 basis points) contraction in reported EBITDA
    margins in FY2018 as staffing and lease-expense increases
    compound gross margin pressures. S&P expects these margins to
    stabilize in FY2018 at this new lower level, before beginning
    to increase again in FY2019 as capex and strategic
    initiatives begin to bear fruit;

-- Capex of up to GBP150 million over the next 12 months as the
    group steps up its investment in mobile platforms. However,
    we think a large part of this spend remains discretionary and
    expect it to be scaled down if not supported by cash flow
    generation; and

-- Stable dividends of about GBP40 million-GBP45 million per
    year, and no share buybacks in the near term.

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

-- Adjusted EBITDA of GBP385 million-GBP395 million in FY2018,
    compared with the GBP407 million generated in FY2017;

-- Adjusted debt to EBITDA of 6.0x-7.0x in FY2018 and FY2019;

-- Adjusted funds from operations (FFO) to debt of 7%-10% in
    both FY2018 and FY2019;

-- Reported FOCF generation of up to GBP40 million annually in
    FY2018 and FY2019;

-- Adjusted FOCF-to-debt of 4%-5% in FY2018 and FY2019, before
    picking up sustainably to above 5% from FY2020 onward;

-- Neutral to marginally negative reported discretionary cash
    flow (DCF) in both FY2018 and FY2019; and

-- Adjusted EBITDAR coverage (defined as reported EBITDA plus
    rent over cash interest plus rent) of 1.7x-1.8x in FY2018,
    improving to about 1.8x in 2018.

S&P said, "The negative outlook reflects our expectation of
increasingly challenging trading conditions for U.K. discretionary
goods retailers, which could constrain Debenhams' operating
performance and cash generation over the next 12 months.

"Management's track record of proactively managing its capex to
match earnings declines historically, underpins our forecast of
positive FOCF generation in the near term. We expect adjusted FOCF
to debt to remain close to 5% over our forecast horizon.

"We could lower the rating if Debenhams fails to make timely
adjustments to its cost base or its financial policy --
particularly with respect to investments and shareholder
returns -- to respond to pressures on operating performance
brought about by soft market conditions. Without these
adjustments, reported FOCF could weaken to such an extent that it
is no longer sufficient to cover dividend payments, resulting in
materially negative reported DCF.

"We could consider a negative rating action if Debenhams' adjusted
FOCF-to-debt ratio fell consistently and materially below 5% or if
its EBITDAR coverage weakened significantly beyond the 1.7x level
implied by our current base case.

"We could also lower the ratings if we thought Debenhams'
liquidity position had weakened, for example, due to a tightening
of covenant headroom that could limit the group's access to its
committed facilities.

"We could revise the outlook back to stable as a result of a
sustained improvement in trading, better profitability, or capex
reductions, Debenhams substantially improved its FOCF generation
so that it materially exceeded forecast dividends. As such, we
would likely expect a return to material positive reported DCF and
adjusted FOCF to debt sustainably above 5%.

"Any positive rating action would also be contingent on Debenhams'
competitive standing remaining robust and management maintaining
stronger credit metrics than our base case currently suggests,
while using DCF for debt reduction."


MANLEY CONSTRUCTION: Nenagh Subcontractors Concerned Over Payment
-----------------------------------------------------------------
Tipperary Star reports that a number of subcontractors working on
the site at Nenagh Hospital are concerned over payment for work
done following the removal of the main contractor from the site.

The Health and Safety Executive (HSE) revoked Manley Construction
Ltd.'s contract last week after the company went into
examinership, Tipperary Star relates.

Now there are concerns that local subcontractors won't be paid,
Tipperary Star notes.

One subcontractor claimed that his company was owed a "substantial
sum" for work carried out, Tipperary Star discloses.

It is believed that the combined amount owed to all of the
subcontractors may be over EUR200,000 in total, Tipperary Star
states.

One subcontractor who contacted the Tipperary Star, Trevor Webster
of RNM Groundworks and Planthire, Two-Mile-Borris, said they were
calling on the HSE not to release moneys owed for extra work
carried out in Nenagh as they feared the money would be given to
the High Court appointed examiner and would then form part of any
debts owed by the Duleek, County Meath, company.

Dermot McMahon of O'Keeffe Electrical based in Ennis, County
Clare, told the Tipperary Star that there was a conciliation
process going on between the HSE and Manley Construction and they
would like to see those funds set aside by the conciliator for
subcontractors.


MONARCH AIRLINES: Administrators Win Dispute Over Airport Slots
---------------------------------------------------------------
Tanya Powley at The Financial Times reports that Monarch's
administrators have won their legal battle over rights to the
failed airline's most valuable assets, allowing them to raise
capital by selling their take-off and landing slots at London
Gatwick and Luton.

The Court of Appeal ruling on Nov. 22 is a boost for KPMG,
Monarch's administrators, as it reverses a High Court decision two
weeks ago that blocked the airline from selling the assets, which
could be worth as much as GBP60 million, the FT notes.

The judgment ruled that the Airport Coordination Limited, an
independent body that deals with airport slots, should immediately
allocate the Gatwick and Luton slots to Monarch, the FT discloses.

According to the FT, the decision does not extend to Monarch's
Manchester and Birmingham slots, which under the High Court
decision were exempted from any Court of Appeal ruling and are in
the process of being reallocated through the general pool of
slots.

Administrators have yet to reveal how much money will be returned
to creditors, the FT states.

The decision is a big win for Monarch's owner, the private equity
group Greybull Capital, as the proceeds from the slots were
critical in giving it the potential to make a profit on its
investment, the FT says.

Greybull, run by brothers Marc and Nathaniel Meyohas, have the
first call on the failed carrier's assets, the FT notes.

Blair Nimmo, partner at KPMG and joint administrator, as cited by
the FT, said: "We must stress there will be no immediate
distributions to any creditors; indeed our statutory proposals to
creditors summarising the status of the administrators have not
yet been published."

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: EasyJet Attracts Applications from Pilots
-----------------------------------------------------------
Bradley Gerrard and Jack Torrance at The Telegraph report that
EasyJet is attracting applications from "hundreds" of pilots from
the failed carrier Monarch, according to the airline's outgoing
chief executive Dame Carolyn.

According to The Telegraph, the no-frills airline is expected to
benefit from the recent demise of Monarch, which was also based at
Luton airport, as well as other rival European carriers such as
Air Berlin and Alitalia.

Roughly 98% of Monarch's capacity was on routes flown by easyJet
and its take-off and landing slots are likely to be divided up
between various airlines, meaning a rival in the same form is
highly unlikely to materialize, The Telegraph discloses.

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.


MULTIYORK: In Administration, Almost 500 Jobs at Risk
-----------------------------------------------------
Hannah Boland at The Telegraph reports that furniture retailer
Multiyork has collapsed into administration, putting almost 550 UK
jobs at risk.

Administrators Duff & Phelps, which also handled BHS's insolvency,
has begun the search for a buyer, though declined to comment on
whether they were also considering selling off parts of the
business, The Telegraph relates.

According to The Telegraph, a spokesman for Duff & Phelps said it
was not putting any time limit on when it would need to find this
buyer by before closing down the business.

Joint administrator Allan Graham -- allan.graham@duffandphelps.com
-- of Duff & Phelps, as cited by The Telegraph, said: "We intend
to continue to trade the business for a short period as we look
for a buyer."

All orders placed with Multiyork up until Wednesday, Nov. 22, will
be honored, The Telegraph notes.

Mr. Graham said the collapse came amid "a sharp fall in consumer
confidence and less money being spent on discretionary items",
with accelerating inflation causing shoppers to become more
cautious, The Telegraph relays.

"Trading conditions for UK retailers continue to be difficult due
to a number of factors including economic uncertainty, rising
commodity prices, increasing business rates and the fall in value
of the pound which has increased the cost of importing raw
materials and products," The Telegraph quotes Mr. Graham as
saying.

Multiyork employs 547 staff across its 50 retail stores and its
manufacturing facility in Norfolk.



===============
X X X X X X X X
===============


* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
-----------------------------------------------------------
Author: Sallie Tisdale
Publisher: BeardBooks
Softcover: 270 pages
List Price: $34.95

Review by Henry Berry
Order your own personal copy at http://is.gd/9SAfJR

An earlier edition of "The Sorcerer's Apprentice" won an American
Health Book Award in 1986. The book has been recognized as an
outstanding book on popular science. Tisdale brings to her subject
of the wide and engrossing field of health and illness the
perspective, as well as the special sympathies and sensitivities,
of a registered nurse. She is an exceptionally skilled writer.

Again and again, her descriptions of ill individuals and images of
illnesses such as cancer and meningitis make a lasting impression.
Tisdale accomplishes the tricky business of bringing the reader to
an understanding of what persons experience when they are ill; and
in doing this, to understand more about the nature of illness as
well. Her style and aim as a writer are like that of a medical or
science journalist for leading major newspaper, say the "New York
Times" or "Los Angeles Times." To this informative, readable style
is added the probing interest and concern of the philosopher
trying to shed some light on one of the central and most
unsettling aspects of human existence. In this insightful,
illuminating, probing exploration of the mystery of illness,
Tisdale also outlines the limits of the effectiveness of
treatments and cures, even with modern medicine's store of
technology and drugs. These are often called "miracles" of modern
medicine. But from this author's perspective, with the most
serious, life-threatening, illnesses, doctors and other healthcare
professionals are like sorcerer's trying to work magic on them.
They hope to bring improvement, but can never be sure what they do
will bring it about. Tisdale's intent is not to debunk modern
medicine, belittle its resources and ways, or suggest that the
medical profession holds out false hopes. Her intent is to report
on the mystery of serious illness as she has witnessed it and from
this, imagined what it is like in her varied work as a registered
nurse. She also writes from her own experiences in being
chronically ill when she was younger and the pain and surgery
going with this.

She writes, "I want to get at the reasons for the strange state of
amnesia we in the health professions find ourselves in. I want to
find clues to my weird experiences, try to sense the nature of
being sick." The amnesia of health professionals is their state of
mind from the demands placed on them all the time by patients,
employers, and society, as well as themselves, to cure illness, to
save lives, to make sick people feel better. Doctors, surgeons,
nurses, and other health-care professionals become primarily
technicians applying the wonders of modern medicine. Because of
the volume of patients, they do not get to spend much time with
any one or a few of them. It's all they can do to apply the
prescribed treatment, apply more of it if it doesn't work the
first time, and try something else if this treatment doesn't seem
to be effective. Added to this is keeping up with the new medical
studies and treatments. But Tisdale stepped out of this
problemsolving outlook, can-do, perfectionist mentality by opting
to spend most of her time in nursing homes, where she would be
among old persons she would see regularly, away from the high-
charged atmosphere of a hospital with its "many medical students,
technicians, administrators, and insurance review artists." To
stay on her "medical toes," she balanced this with working
occasional shifts in a nearby hospital. In her hospital work, she
worked in a neonatal intensive care unit (NICU), intensive care
unit (ICU), a burn center, and in a surgery room. From this
combination of work with the infirm, ill, and the latest medical
technology and procedures among highly-skilled professionals,
Tisdale learned that "being sick is the strangest of states." This
is not the lesson nearly all other health-care workers come away
with. For them, sick persons are like something that has to be
"fixed." They're focused on the practical, physical matter of
treating a malady. Unlike this author, they're not focused
consciously on the nature of pain and what the patient is
experiencing. The pragmatic, results-oriented medical profession
is focused on the effects of treatment. Tisdale brings into the
picture of health care and seriously-ill patients all of what the
medical profession in its amnesia, as she called it, overlooks.
Simply in describing what she observes, Tisdale leads those in the
medical profession as well as other interested readers to see what
they normally overlook, what they normally do not see in the
business and pressures of their work. She describes the beginning
of a hip-replacement operation, the surgeon "takes the scalpel and
cuts -- the top of the hip to a third of the way down the thigh --
and cuts again through the globular yellow fat, and deeper. The
resident follows with a cautery, holding tiny spraying blood
vessels and burning them shut with an electric current. One small,
throbbing arteriole escapes, and his glasses and cheek are
splattered." One learns more about what is actually going on in an
operation from this and following passages than from seeing one of
those glimpses of operations commonly shown on TV. The author
explains the illness of meningitis, "The brain becomes swollen
with blood and tissue fluid, its entire surface layered with pus .
. . The pressure in the skull increases until the winding
convolutions of the brain are flattened out . . . The spreading
infection and pressure from the growing turbulent ocean sitting on
top of the brain cause permanent weakness and paralysis,
blindness, deafness . . . . " This dramatic depiction of
meningitis brings together medical facts, symptoms, and effects on
the patient. Tisdale does this repeatedly to present illness and
the persons whose lives revolve around it from patients and
relatives to doctors and nurses in a light readers could never
imagine, even those who are immersed in this world.

Tisdale's main point is that the miracles of modern medicine do
not unquestionably end the miseries of illness, or even
unquestionably alleviate them. As much as they bring some relief
to ill individuals and sometimes cure illness, in many cases they
bring on other kinds of pains and sorrows. Tisdale reminds readers
that the mystery of illness does, and always will, elude the
miracle of medical technology, drugs, and practices. Part of the
mystery of the paradoxes of treatment and the elusiveness of
restored health for ill persons she focuses on is "simply the
mystery of illness. Erosion, obviously, is natural. Our bodies are
essentially entropic." This is what many persons, both among the
public and medical professionals, tend to forget. "The Sorcerer's
Apprentice" serves as a reminder that the faith and hope placed in
modern medicine need to be balanced with an awareness of the
mystery of illness which will always be a part of human life.



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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.


                 * * * End of Transmission * * *