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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, February 22, 2018, Vol. 19, No. 038


                            Headlines


B O S N I A  &   H E R Z E G O V I N A

BOSNIA AND HERZEGOVINA: Moody's Affirms B3 LT Issuer Ratings


B U L G A R I A

BULGARIAN ENERGY: Fitch Hikes Long-Term IDR to BB, Outlook Stable


C R O A T I A

AGROKOR DD: Ante Ramljak Resigns as Commissioner
AGROKOR DD: Slovenia to Support Any Rescue Option for Mercator


D E N M A R K

EVERGOOD 4: Moody's Assigns B2 CFR on Nets A/S Acquisition Deal
TDC AS: Fitch Puts BB Hybrid Securities Rating on Watch Negative


G E R M A N Y

BEATE UHSE: Opens Insolvency Proceedings for Dutch Unit
DECO 10: Fitch Affirms D Rating on EUR19MM Class D Notes


I R E L A N D

BLACKROCK EUROPEAN I: S&P Assigns B-(sf) Rating to Cl. F-R Notes
TORO EUROPEAN 5: Moody's Assigns (P)B2 Rating to Class F Notes


I T A L Y

AUTOSTRADA BRESCIA: Fitch Affirms BB+ Rating on EUR400MM Bond


K A Z A K H S T A N

CAPITAL BANK KAZAKHSTAN: S&P Withdraws CCC+/C Global Scale ICRs


P O R T U G A L

CHAVES SME 1: Moody's Hikes Class D Notes Rating to Ba1


R U S S I A

ORIENT EXPRESS: Moody's Hikes Long-Term Deposit Ratings to B3
RUSHYDRO CAPITAL: Fitch Gives Final BB+ Rating to RUB20BB LPNs
SAKHA REPUBLIC: S&P Affirms 'BB' ICR & 'BB' Sr. Unsec. Bond Rating


S P A I N

RURAL HIPOTECARIO VIII: Fitch Affirms CC Rating on Cl. E Notes


U N I T E D   K I N G D O M

JAMIE OLIVER: Celebrity Chef Buys Back Barbecoa Outlet
PRECISE MORTGAGE 2015-1: Fitch Affirms BB Rating on Class E Debt
TOYS R US: PPF Wants Directors Not to Appoint A&M as Adviser


                            *********



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B O S N I A  &   H E R Z E G O V I N A
======================================


BOSNIA AND HERZEGOVINA: Moody's Affirms B3 LT Issuer Ratings
------------------------------------------------------------
Moody's Investors Service has affirmed Bosnia and Herzegovina's B3
long-term issuer ratings. The outlook is stable.

The factors supporting affirmation are:

(1) Bosnia and Herzegovina's (Bosnia) resilient economic growth
supports its credit profile, although structural challenges,
including very high unemployment, weigh on economic strength;

(2) Ongoing political volatility impairs effective policy-making
and keeps susceptibility to political event risk high; and

(3) A moderate debt burden, mainly due to concessional creditors,
supports fiscal strength, although limited access to external
financing keeps Bosnia reliant on official support.

The stable outlook on Bosnia's B3 rating reflects Moody's
expectation that Bosnia will continue to meet the conditions for
concessional external financing, albeit with delays, which would
provide the needed financial and technical assistance to continue
to gradually progress the reform agenda.

However, significant reform progress will be hampered by ongoing
political disagreements which distract from a country-wide reform
focus and limit Bosnia's ability to address the notable structural
constraints needed to improve its credit profile, including
material improvements to the business environment, a strengthening
of institutions and addressing risks to debt sustainability at all
levels of government.

Bosnia and Herzegovina's local-currency bond and deposit ceilings
and long-term foreign-currency bond and deposit ceilings are
unchanged at B3. The short-term foreign currency bond and deposit
ceilings are also unaffected by this rating action and remain Not
Prime (NP).

RATINGS RATIONALE

RATIONALE FOR RATING AFFIRMATION

FIRST FACTOR: BOSNIA AND HERZEGOVINA'S RESILIENT ECONOMIC GROWTH

The first factor for Moody's decision to affirm the B3 rating on
Bosnia and Herzegovina (Bosnia) is the country's resilient
economic performance despite a number of headwinds in recent
years, including unfavourable weather conditions and the country's
volatile political dynamics.

Real GDP has grown by an estimated average 3.2% over the past
three years, with household consumption benefitting from
remittance inflows, an acceleration in bank lending and modest
employment gains. Furthermore, improved access to the European
Union (EU) market, through higher quotas for tariff-free exports
including in the agricultural sector, has supported double-digit
goods export growth in 2017. Similar to other Balkan countries,
tourism has been a bright spot with the number of foreign arrivals
growing by around 19% in 2017. Moody's expects real GDP growth to
continue to remain robust in the coming years (3.7% in 2018)
supported by private consumption and improving regional growth
prospects, although the economy will still continue to grow below
pre-crisis rates.

However, there remain significant impediments to generating the
higher growth needed to help close the income gap with EU peers.
In particular, Bosnia's large and inefficient public sector
undermines the development of a competitive private sector.
Importantly, foreign direct investment, which remains below pre-
crisis levels, will continue to be restrained by the weak business
environment, reflected in Bosnia's scores on the World Bank Doing
Business Survey which are lower than regional peers, acting as a
limit on potential growth.

These factors partly explain the persistently high unemployment
rate, which stood at 20.5% in 2017 according to the Labour Force
Survey, although local unemployment offices point to a much higher
rate of around 39% as of November 2017. Employment gains,
supported by past labour reforms, have helped to reduce the very
high unemployment rate although this also reflects the substantial
emigration of the working age population, which declined by 3.3%
in 2017 alone.

SECOND FACTOR: ONGOING POLITICAL VOLATILITY WEIGHS ON
INSTITUTIONAL STRENGTH

The second factor supporting the affirmation is the ongoing
political volatility which impairs the effectiveness of policy
formation and implementation in Bosnia, reflecting the complex
structure of the government created to protect the interests of
the three major political groupings. This is reflected in Bosnia's
ranking in the bottom 25% among Moody's rated universe on the
Worldwide Governance Indicator for effective functioning of the
government.

Importantly, weak government effectiveness is reflected in
Bosnia's ongoing delays in complying with the requirements under
International Monetary Fund (IMF) programmes. For example, Bosnia
did not complete its 2012-2015 IMF agreement and the completion of
the first review under its follow-up Extended Fund Facility was
delayed by more than 12 months largely due to political
disagreements around excise tax rises. Moody's notes that
legislative bottle-necks hinder the necessary approvals to release
funding for budget support or investment projects. In contrast,
Bosnia's currency board arrangement, supported by significant
reserve coverage of Bosnia's monetary liabilities, enjoys a high
level of confidence and credibility, providing stability to
monetary policy and support to Moody's assessment of institutional
strength.

Furthermore, Moody's expects Bosnia's weakness in policy
implementation will slow its progress on the path of EU accession,
which would provide a framework to align the country's judicial,
institutional and policy environment closer to EU norms. In this
regard, Bosnia continues to lag behind regional peers, such as
Serbia (Ba3 Stable) and Montenegro (B1 Stable), which have seen
faster progress towards EU accession in light of their stronger
reform momentum.

At the same time, the very challenging political landscape keeps
susceptibility to political event risk high. The crystallisation
of these political risks have had damaging consequences, for
example the substantial delay in forming a government following
elections in 2010 and again in 2014, and further challenges to
government formation cannot be excluded for the upcoming election
period. Moody's expects a focus on policies to promote entity
interests or challenge the legitimacy of state level institutions
will continue to foster divisive politics and strain relations
with international partners, such that domestic political risk
acts as an overall constraint on the government's rating.

THIRD FACTOR: MODERATE DEBT BURDEN SUPPORTS FISCAL STRENGTH

The third factor for Moody's decision to affirm Bosnia's B3 issuer
rating is the moderate and relatively affordable debt burden,
although government finances continue to be reliant on IMF
programme disbursements.

Bosnia's general government debt to GDP ratio, at an estimated
42.5% in 2017, remains moderate and is below the median of B-rated
peers (57% in 2017). Importantly, the debt burden has been on a
gradually declining path since 2015 and Moody's expects that
modest budgets, helped by continued wage restraint, as well as
robust economic growth will support a further debt reduction in
2018 to below 41% of GDP. However, Moody's notes that arrears from
the health sector and state-owned enterprises pose material
contingent liability risks.

Bosnia's fiscal strength also benefits from a high degree of debt
affordability compared to most sovereigns, with its interest
expense to general government revenue ratio estimated at around
2.4% in 2017, well below the median of its B-rated peers of around
10%. This reflects Bosnia's large concessional creditor base,
which has extended funding on very favourable terms.

However, Bosnia's limited access to private external capital means
it remains reliant on external financing support from multilateral
institutions such as the IMF. Indeed, recent delays in meeting IMF
conditionality has meant entity level governments have
increasingly relied on more costly domestic debt to meet short
term liquidity needs. Nevertheless, Moody's notes that financing
conditions for the entity level governments have remained
manageable in 2017, helped by strong growth in tax revenues and
alternative sources of finance. Furthermore, domestic issuances,
when needed, have continued to be comfortably met by domestic
demand.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on Bosnia's B3 rating reflects Moody's
expectation that Bosnia will continue to meet the conditions for
concessional external financing, albeit with delays, which would
provide the needed financial and technical assistance to continue
to gradually progress the reform agenda. However, significant
reform momentum will be hampered by ongoing political
disagreements which distract from a country-wide reform focus and
limit Bosnia's ability to address the notable structural
constraints needed to improve its credit profile.

For example, there has been a marked slowdown in progressing the
country's reform agenda in 2017, evidenced by the delay in
completing the first IMF programme review, and Moody's expects the
prospects for further important legislative achievements,
demonstrated during the early part of the reform agenda, to remain
limited. Notably, the political discourse in 2017 has likely been
impacted by the forthcoming October elections and Moody's expects
this will continue to pose a significant risk to reform momentum
in the near term.

Nevertheless, Moody's expects the authorities' commitment to
progress EU integration, reflected in the EU candidacy application
in early 2016, will continue to provide an anchor for the
country's reform direction, supported as well by the European
Commission's (EC) recent adoption of its engagement strategy for
the Western Balkan states. However, Moody's expects progress on
the path of EU accession will continue to remain halting and slow
given ongoing political challenges to central government powers.
For example, the EC's technical questionnaire, a pre-requisite for
candidacy status, which is expected to be delivered to the EC by
the end of February 2018, has progressed far slower than for other
potential EU candidacy countries.

At the same time, Moody's expects that government financing, an
ongoing credit concern, will continue to remain manageable in
2018. Notably, the financing of entity level budgets will benefit
from the build-up of savings in 2017, ongoing expenditure
constraint as well as continued strong proceeds from indirect tax
revenues due to ongoing improvements in tax collection and robust
economic growth.

Moreover, recent progress in mobilising significant funding
opportunities for Bosnia provide some upside risk to Moody's
medium term growth assessment. In particular, the recent agreement
to raise excise duties on fuels could allow significant funding
directed to road infrastructure investment. For example, the EUR70
million (0.4% of GDP) already committed by the European Bank for
Reconstruction and Development (Aaa stable) for supporting the
Bosnian leg of the trans-European Corridor Vc road network,
helping to improve the road links within the country and with the
EU. Furthermore, recent foreign investments in the energy sector
could help to stimulate this important export sector. However,
Moody's expects ongoing capacity constraints and the very
challenging business environment will serve to limit the potential
to leverage these opportunities over Moody's rating horizon.

On the other hand, Bosnia's credit rating faces material downside
risks from the crystallisation of high political event risks,
particularly in an election year. For example, disagreements
around amendments to the Bosnia and Herzegovina Election Law in
compliance with Constitutional Court decisions could potentially
hamper the implementation of the 2018 general elections and lead
to a longer than expected delay in government formation, halting
progress on the reform agenda and placing concessional external
funding at risk.

WHAT COULD CHANGE THE RATING UP/DOWN

A streamlining of the policymaking process resulting from greater
internal consensus, improving Moody's political risk assessment,
would place upward pressure on the rating. In particular, a more
stable policy making environment resulting in a stronger reform
momentum that helps to strengthen institutions and address
significant economic constraints leading to a material increase in
medium term growth prospects, would be credit positive.
Furthermore, ongoing timely compliance with the IMF agreement,
helping to addresses fundamental aspects of fiscal reforms to
ensure debt sustainability at all levels of government, would be
credit positive.

A negative rating action could occur in the event the country is
not able to meet the conditions to release concessional external
financing disbursements, increasing risks to government financing
and its ability to roll over forthcoming IMF repayments. In
addition, a halt in the reform agenda, including to deepen
Bosnia's integration with the EU, would also be credit negative,
which may result from a longer than expected delay in forming a
government following the forthcoming elections. Furthermore, a
marked escalation in political volatility resulting in increased
concern for the country's future as one sovereign nation, could
also lead to downward rating pressure.

GDP per capita (PPP basis, US$): 10,908 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 3.2% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): -0.3% (2016 Actual)

Gen. Gov. Financial Balance/GDP: 0.4% (2016 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -5.1% (2016 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: Low level of economic resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

On 13 February 2018, a rating committee was called to discuss the
rating of the Government of Bosnia and Herzegovina. The main
points raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutional strength/ framework, have not
materially changed. The issuer's fiscal or financial strength,
including its debt profile, has not materially changed. The
issuer's susceptibility to event risks has not materially changed.

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

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



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B U L G A R I A
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BULGARIAN ENERGY: Fitch Hikes Long-Term IDR to BB, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has upgraded Bulgarian Energy Holding EAD's (BEH)
Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR)
and foreign currency senior unsecured rating to 'BB' from 'BB-'
and removed these ratings from Rating Watch Positive (RWP). The
Outlook on the IDRs is Stable.

The upgrade follows improvement in BEH's standalone credit profile
after both recovery and greater visibility in earnings as well as
the publication of Fitch's new "Government-Related Entities Rating
Criteria" (GRE criteria), which Fitch have applied in Fitch
assessment of BEH's ratings. The ratings were put on RWP in
December 2017 after the release of the exposure draft of the GRE
criteria.

KEY RATING DRIVERS

Improved Results: BEH's results have stabilised in 2016 with
Fitch-calculated EBITDA at about BGN0.7 billion and Fitch expect
that it will remain at this level over 2017-2021. This is largely
due to legislative and regulatory changes, implemented in 2015 and
remaining in force, which have narrowed power tariff deficits at
BEH's subsidiary, Natsionalna Elektricheska Kompania EAD (NEK), a
public supplier of electricity in Bulgaria. Consequently, Fitch
expect the group's funds from operations (FFO) adjusted net
leverage to stabilise at about 3.7x, which led us to revise the
group's standalone credit profile to 'BB-' from 'B+'.

Regulatory Regime's Weakness: Despite positive developments
addressing NEK's tariff deficit, BEH and its subsidiaries are yet
to establish a track record of improved cash flows while the
Bulgarian operating environment remains subject to high regulatory
and political risk. This is a constraint on the ratings despite
BEH's strong projected credit metrics for the ratings and BEH's
strong position as the leading integrated utility in Bulgaria. The
energy market in Bulgaria is being liberalised, which can provide
some upside to the group's EBITDA in the future.

Belene Payment Removes Event Risk: In December 2016, NEK paid
BGN1,177 million, including accrued interest, to Russia's
Atomstroyexport for the nuclear power plant equipment following a
long arbitration process related to the terminated Belene nuclear
power plant project. Funds for the payment were provided by the
state in the form of an interest-free loan maturing in 2023. Fitch
deem the payment as positive for BEH as it has eliminated a large
event risk for the company. That the payment was made from state-
loan funds underlines BEH's strengthened links with the 100% owner
Bulgarian State (BBB/Stable).

Parent Support Assessment: The share of state-guaranteed debt at
BEH has fallen in Fitch projections to about 5% at end-2017 (from
50% in 2012), but with the expected receipt of state guarantees to
BEH's gas interconnector project between Greece and Bulgaria (IGB
project) as well as counting in the interest free state-loan given
to NEK, the share of state-guaranteed and state-provided debt was
at about 40% at end-2017 and should remain at this level over
Fitch five-year rating horizon. Moreover, the Ministry of Energy
provided BEH with a letter of support (not a formal guarantee)
before its 2016 Eurobond bond issue, stating that the Bulgarian
State will undertake necessary measures to financially support BEH
so that it meets its obligations to bondholders.

Fitch therefore view the status, ownership and control links
between BEH and the State as strong, although support track record
and expectations are only moderate. Fitch deem the socio-political
and financial implications of BEH's potential default for the
Bulgarian State as moderate. Consequently, BEH's IDRs include a
single-notch uplift from the group's standalone profile.

Corporate Governance Limitations: The ratings continue to reflect
BEH's corporate governance limitations, including a qualified
audit opinion for BEH's 2009-2016 consolidated financial
statements. Fitch view the group's financial transparency,
including on business segments, as weak compared with its European
peers.

DERIVATION SUMMARY

BEH has a dominant position in the Bulgarian gas and electricity
market through its ownership of most of Bulgaria's power
generation assets (including a nuclear power plant, lignite-fired
and hydro power plants), the country's largest mining company, the
country's electricity transmission network, gas transmission and
transit networks and through its position as the public supplier
of both electricity and gas in Bulgaria.

BEH's integrated business structure and strategic position in the
domestic market makes it comparable to some of central European
peers such as CEZ, a.s. (A-/Negative) and PGE Polska Grupa
Energetyczna SA (PGE, BBB+/Stable). However, BEH operates in a
more volatile and less transparent regulatory environment than CEZ
or PGE and its results are less predictable with some corporate
governance issues. BEH's rating includes a single-notch uplift to
reflect its links with the sovereign, whereas this is not the case
for CEZ or PGE.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for the Issuer

- Marginally positive EBITDA at NEK with impact of the remedy
   actions maintained
- Capex for 2017-2021 at BGN2.8 billion
- Dividend at 50% of group net income
- Forthcoming tangible state support in case of tight liquidity

RATING SENSITIVITIES

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

- Further tangible government support, such as additional state
   guarantees materially increasing the share of state-guaranteed
   debt or cash injections, which would more tightly link BEH's
   credit profile with Bulgaria's stronger credit profile
- Upgrade of the sovereign rating
- Stronger standalone credit profile due to lower regulatory and
   political risk, higher earnings predictability, better
   corporate governance or FFO adjusted net leverage falling
   below 3x on a sustained basis

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

- Weaker links with the Bulgarian State
- Weaker standalone credit profile, eg. due to escalation of
   regulatory and political risk, FFO adjusted net leverage
   exceeding 4x on a sustained basis or insufficient liquidity
- Sustained increase in prior-ranking debt to above 2x EBITDA
   (2016: 2.0x; 2017-2021: averaging just below 2.0x), which
   would be negative for the senior unsecured rating of BEH

LIQUIDITY

Liquidity Gap: At end-September 2017 BEH had BGN1,186 million of
unrestricted cash against short-term financial liabilities of only
BGN147 million. However, the group's EUR500 million (BGN980
million) Eurobond is due in November 2018. Fitch expects BEH to
refinance the Eurobond during 2018.

Should BEH not refinance the Eurobond, the amount of cash on
balance should be sufficient to cover redemption needs. However,
Fitch expects BEH to incur new debt to cover negative free cash
flow forecasted for 2018-2019, totalling about BGN0.2 billion, or
reduce capex.



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C R O A T I A
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AGROKOR DD: Ante Ramljak Resigns as Commissioner
------------------------------------------------
Jasmina Kuzmanovic, Luca Casiraghi and Jake Rudnitsky at Bloomberg
News report that Agrokor d.d's commissioner
Ante Ramljak resigned on Feb. 21, opening a new chapter in the
state-led restructuring process, which may end up favoring its
biggest creditor Sberbank PJSC.

Mr. Ramljak, who has been criticized for fees paid to his former
consultancy company, said he wanted to remove "uncertainty" tied
to his position, Bloomberg relates.  The departure less than a
year into the rescue procedure threatens to disrupt talks with
creditors, Bloomberg states.  The restructuring has already been
marred by disagreements between interested parties, as well as a
court battle with Sberbank, Bloomberg notes.

Mr. Ramljak has denied any wrongdoing related to the consultancy
fees and says he helped stabilize Agrokor and safeguard jobs at
the retailer and its suppliers, Bloomberg relays.  He told
lawmakers in a hearing last week any mistakes made during the
restructuring process resulted from the haste of the rescue
effort, Bloomberg recounts.

Mr. Ramljak's resignation raises the question whether lenders
behind a EUR1.06 billion (US$1.3 billion) rescue loan, arranged in
June, will exercise their right to exit the credit agreement if he
is replaced, according to Bloomberg.  It's unclear whether the key
lender, Knighthead Capital Management, and other creditors have
discussed with the government who would replace him, Bloomberg
notes.

That credit agreement is central to Sberbank's complaint against
Agrokor's insolvency procedure, which a London court is hearing on
Feb. 21, Bloomberg states.  The lender, which is owed EUR1.1
billion, is appealing the decision to exclude it from the
creditors' council and settlement preparations, Bloomberg relays.

The current controversy relates to Mr. Ramljak's hiring of
AlixPartners as chief restructuring adviser last year, which, in
turn, hired Mr. Ramljak's former company Texo, Bloomberg
discloses.

Agrokor's settlement with creditors must be concluded by July 10
to prevent the bankruptcy of the company whose network of units
and suppliers spans much of the western Balkans, Bloomberg says.

                        About Agrokor DD

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

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

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

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

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

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


AGROKOR DD: Slovenia to Support Any Rescue Option for Mercator
--------------------------------------------------------------
The Slovenia Times reports that Slovenian Economy Minister Zdravko
Pocivalsek told Bloomberg the government will support "any option"
that would help overhaul the retailer Mercator, a unit of troubled
Croatian Agrokor, and has no interest in acquiring the company
itself.

There are companies interested in investing in Mercator, he said,
but declined to elaborate, The Slovenia Times relates.

According to The Slovenia Times, Mr. Pocivalsek said on several
occasions that the government was seeking a stable long-term owner
for Mercator, which would allow the company to develop.

Mercator, one of Slovenia's largest employers, needs a strong
partner to address its "three key problems," Mr. Pocivalsek, as
cited by The Slovenia Times, said in a phone interview with
Bloomberg on Feb. 20.

It needs to lower its debt-to-earnings ratio, become more
competitive in a market dominated by discounters, and improve its
logistics, The Slovenia Times relays, citing Mr. Pocivalsek.

Mercator is owned by the Croatian government-controlled Agrokor,
but a change in ownership is possible based on an agreement and a
sales contract, The Slovenia Times discloses.  There is an "open
battle for Mercator ownership" in certain debt collection
procedures led by a major foreign bank, the minister told the on-
line issue of the newspaper Vecer in a reference to the Russian
Sberbank, according to The Slovenia Times.

Mercator will get a new owner in the coming months, The Slovenia
Times states.  If Agrokor creditors back the restructuring plan to
avoid its bankruptcy, the new owner will be the new Agrokor that
is to be set up on the ruins of the current conglomerate, The
Slovenia Times says.

                        About Agrokor DD

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

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

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

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

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

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



=============
D E N M A R K
=============


EVERGOOD 4: Moody's Assigns B2 CFR on Nets A/S Acquisition Deal
---------------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 corporate
family rating (CFR) and first time B2-PD probability of default
rating (PDR) to Evergood 4 ApS. The rating agency has also
assigned a definitive B1 instrument rating to the EUR1,860 million
first lien senior secured term loan BE due 2025, NOK2,795 million
first lien senior secured term loan BN due 2025, and EUR200
million senior secured revolving credit facility (RCF) due 2024
(together the new first lien credit facilities), all raised by
Evergood 4 ApS. The outlook on the ratings is stable.

Concurrently, Moody's has withdrawn Nets A/S' Ba2 CFR and Ba2-PD
PDR and downgraded to B1 from Ba2 with a stable outlook the
instrument rating on the EUR400 million senior unsecured notes due
2024 issued by Nassa Topco AS (the notes), a subsidiary of Nets
A/S.

Nets A/S announced on February 2, 2018 that all conditions for the
voluntary recommended public offer of Evergood 5 ApS to Nets A/S'
shareholders have been satisfied after the acquisition vehicle
received 94% acceptance from the target's shareholders. Evergood 5
ApS, a direct subsidiary of Evergood 4 ApS, is a newly formed
company controlled by funds managed and advised by Hellman &
Friedman LLC (Hellman & Friedman) which owns 70% of the
acquisition vehicle together with a group of minority investors,
including Sampo PLC, funds managed and advised by StepStone Group
LP, and a fund managed by Fisher Lynch Capital LLC. The remaining
equity is held by GIC Private Limited, funds managed and/or
advised by Advent International Corporation, and funds managed
and/or advised by Bain Capital Private Equity (Europe) LLP. The
formal offer, which was sent to Nets A/S' shareholders on October
23, 2017, was conditional to receiving approval from more than 90%
of the share capital and voting rights of Nets A/S.

Subsequent to the satisfaction of the conditions for the takeover
of Nets A/S, Evergood 5 ApS decided to exercise its rights to
complete a compulsory redemption of the shares in the target held
by minority shareholders and requested the delisting of Nets A/S's
shares from Nasdaq Copenhagen A/S to be effective on February 12,
2018.

RATINGS RATIONALE

The action to assign definitive ratings to Evergood 4 ApS reflects
the closing of the acquisition of Nets A/S by the consortium of
investors and the fact that the final terms of the legal
documentation of the new first lien credit facilities and those of
the second lien term loans (unrated) are mostly in line with the
drafts reviewed for the assignment of provisional ratings on
November 20, 2017.

The withdrawal of Nets A/S' CFR and PDR reflects the fact that
Evergood 4 ApS is the top entity of the new banking group
following the raising of the new first lien and second lien credit
facilities and will produce audited consolidated accounts going
forward.

The downgrade of the notes to B1, at the same level as the new
first lien credit facilities, reflects the fact that Moody's
considers these instruments to benefit from similar guarantee and
security packages and thus assumes that the instruments are
subject to a comparable loss given default. While the term loans
currently outstanding at Nassa Topco AS will be repaid upon the
closing of the transaction, the redemption of the notes is subject
to the noteholders' exercising their put option following the
change of control. Drawings under the first lien term loans will
be reduced accordingly to the amount of notes which will remain
outstanding due to noteholders not exercising their put option.

The rating agency considers that both the notes and first lien
credit facilities benefit from an extensive guarantor package.
Based on the offering memorandum, the notes' guarantors
represented 78%, 77%, and 88% of the group's revenues, EBITDA, and
total assets, respectively, for the year ended December 31, 2016.
On the other hand, the first lien term loans benefit from
guarantees from material subsidiaries representing at least 80% of
group EBITDA, subject to restrictions. Additionally, while the
notes are unsecured, the first lien credit facilities benefit from
a relatively weak security package limited to a pledge over
shares, bank accounts, and intercompany receivables. The second
lien term loans benefit from the same guarantee and security
package as the first lien facilities but on a second lien basis
and are thus considered to be subordinated to both the first lien
credit facilities and the notes.

The B1 ratings assigned to the first lien credit facilities and
the notes, one notch above the CFR, reflects the cushion provided
by the second lien term loans ranking below. The B2-PD PDR is at
the same level as the CFR reflecting Moody's assumption of a 50%
family recovery rate typically used for transactions including a
mix of first lien and second lien facilities.

The stable outlook on the ratings reflects Moody's expectation
that the company will continue experiencing organic growth rate at
mid-single digit rates and generating free cash flow (FCF) at
around 5% as a percentage of adjusted gross debt enabling the
company to de-leverage towards 7x (on a Moody's adjusted basis)
within 12-18 months from the closing of the transaction.

Factors that Could Lead to an Upgrade

Due to the weak positioning of Nets' rating within the B2 rating
category, Moody's considers that an upgrade is unlikely in the
short-term. Positive pressure on the rating could develop over
time if (1) Nets maintains a strong momentum in terms of revenue
growth at or above high-single digit rates while increasing its
EBITDA margin, (2) Moody's adjusted gross leverage decreases
towards 6x on a sustained basis, (3) the company generates FCF-to-
debt at well above 5% on a sustained basis with a significant
portion of the excess cash flow to be used for debt prepayment,
and (4) Nets maintains a conservative financial policy and a good
liquidity position.

Factors that Could Lead to a Downgrade

Negative pressure could arise if (1) Nets is subject to
unfavorable regulatory changes or negative market developments
leading to stable or declining revenues, (2) the company maintains
a Moody's adjusted gross leverage at above 7.5x on a sustained
basis resulting for example from large debt-funded acquisitions,
or (3) its liquidity position weakens.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Headquartered in Copenhagen, Denmark, Nets is the largest pan-
Nordic payments processor focusing on Norway, Denmark, Finland,
and Sweden, and second largest in Europe. Nets generated revenues
of DKK7,385 million and EBITDA before special items (company
reported) of DKK2,619 million in fiscal year (FY) 2016. Nets is
present at various points in the digital value payment chain by
providing the merchant payment solutions, by acquiring the
transactions, and by clearing and processing the transactions for
issuers.


TDC AS: Fitch Puts BB Hybrid Securities Rating on Watch Negative
----------------------------------------------------------------
Fitch Ratings has placed TDC A/S's Long-Term Issuer Default Rating
(IDR) and senior unsecured ratings of 'BBB-' on Rating Watch
Negative (RWN). This follows an announcement by a consortium led
by Macquarie Infrastructure and Real Assets that they intend to
launch a voluntary public takeover of the entire share capital of
TDC.

The RWN reflects current limited visibility on the consortium's
funding strategy and a potential increase in leverage for the
overall group if the transaction is funded with a significant debt
component. TDC has limited leverage headroom at its current 'BBB-'
rating with an additional debt capacity of around DKK2 billion to
DKK2.5 billion (assuming the loss of equity credit for its
existing hybrid bonds). Any increase in debt above this level
would lead to at least a one-notch downgrade, depending on the
exact funding structure and the new operational strategy that
might follow.

KEY RATING DRIVERS

Takeover Offer by Consortium: DK Telekommunication ApS, a company
controlled by a consortium comprising Macquarie Infrastructure and
Real Assets and Danish pension funds (PFA, PKA, and ATP),
announced a voluntary public takeover of TDC. The takeover was
recommended to shareholders by the Board of Directors of TDC. The
transaction values TDC's equity at DKK40.3 billion, or an
enterprise value (EV) multiple of 8x EBITDA. The consortium has
confirmed that the transaction will be funded by debt and equity,
although the exact funding mix and structure is yet to be
disclosed.

Merger with MTG Off: The offer by DK Telekommunications ApS is
subject to TDC's planned merger with MTG's Nordic Entertainment
and Studio businesses not proceeding. As the board of directors of
TDC view the acquisition offer as highly attractive and securing
immediate value, they intend to withdraw their recommendation to
TDC shareholders to vote in favour of the merger.

Potential Increase in Leverage: The consortium has indicated that
they do not expect debt to increase at the TDC level. However, it
is likely that the funding structure for the acquisition may
include a significant proportion of new debt at the parent level.
Combined with the potential loss of 50% equity credit for TDC's
EUR750million hybrid securities (for economic reasons due to an
increase in the instrument's coupon following a change of control
event), the group's combined leverage may increase to a level that
would be more consistent with a sub-investment grade credit
profile. The lack of visibility on the eventual capital structure
and potential increase leverage is reflected in the RWN.

Strong Position, Managing Decline: TDC benefits from the ownership
of both copper and cable local loop infrastructure and low
competition for infrastructure-based local access in its domestic
market. This enables the company to sustain higher leverage
headroom for its 'BBB-' rating than other European incumbent
operators. TDC has been managing decline in its EBITDA as a result
of increased competition in mobile and pressures in the B2B
segment. The company's strategy to reduce cost and improve
implementation should help stabilise EBITDA.

Limited Leverage Headroom TDC's funds from operations (FFO)
adjusted net leverage at end-2017 was 3.6x, versus Fitch downgrade
sensitivity of 4.2x. This provides additional debt capacity of
DKK2 billion to DKK2.5, billion assuming no equity credit for
TDC's hybrid securities. If the funding mix for the acquisition
comprises 50% equity and 50% debt, Fitch expects FFO adjusted net
leverage for 2018 to increase to 4.5x-5.0x. This is likely to
result in up to two notches of downgrade, depending on the
operational strategy.

DERIVATION SUMMARY

The ratings of TDC reflect its leading position within the Danish
telecoms market. The company has strong in-market scale and share
that spans both fixed and mobile segments. Ownership of both cable
and copper-based local access network infrastructure reduces the
company's operating risk profile relative to domestic European
incumbent peers, which typically have infrastructure-based
competition from alternative cable operators.

TDC is rated lower than its Dutch market-focused peer Royal KPN
N.V (BBB/Stable) due to its higher leverage, lower financial
flexibility and early stage of its current cost-reduction strategy
for 2015-2018. Higher-rated peers such as Orange S.A.
(BBB+/Stable), Deutsche Telekom AG (BBB+/Stable) and Telefonica SA
(BBB/Stable) have similar strong domestic profiles but also
benefit from greater geographic diversification and lower
leverage.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for TDC on a
standalone basis:

- Stabilising revenue from 2018 onwards with modest growth by
   2021;
- Broadly stable EBITDA margin at around 40% over the next three
   years;
- Capex at 21% to 22% of revenue;
- Dividend to increase by around 9% in 2019 owing to higher
   dividend per share for 2018 guided by management, followed by
   around 5% growth annually; and
- The potential impact of the transaction (e.g. M&A, further
   indebtedness) is not currently reflected in Fitch's forecasts.

RATING SENSITIVITIES

The following sensitivities reflect TDC's credit profile as it
currently stands, pre-takeover.

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- Expectation that FFO-adjusted net leverage will fall below
   3.7x on a sustained basis.
- An improvement in TDC's domestic operating environment
   enabling a sustained stabilisation in domestic EBITDA

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- FFO-adjusted net leverage above 4.2x on a sustained basis.
- Further declines in the Danish business leading to free cash
   flow margins in mid-to-low single digits.

The RWN would be resolved upon visibility of DK Telekommunication
ApS's funding structure for the acquisition of TDC. An increase in
leverage of the combined group above the threshold of a 'BBB-'
rating could lead to a multiple- notch downgrade. Fitch would
affirm the IDR at 'BBB-' if the acquisition does not proceed.

LIQUIDITY

Adequate Liquidity: TDC's liquidity is adequate with cash and cash
equivalents of DKK1.97 billion as of December 2017, access to a
EUR700 million committed undrawn revolving credit facility, and an
established track record of accessing debt markets. This is
complemented by a diversified debt maturity profile.

FULL LIST OF RATING ACTIONS

TDC A/S

- Long-Term 'BBB-' IDR placed on Rating Watch Negative
- Short-Term 'F3' IDR placed on Rating Watch Negative
- Senior unsecured 'BBB-' rating placed on Rating Watch Negative
- Subordinated 'BB' hybrid securities rating placed on Rating
   Watch Negative



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


BEATE UHSE: Opens Insolvency Proceedings for Dutch Unit
-------------------------------------------------------
Reuters reports that Beate Uhse AG has opened insolvency
proceedings under self-administration for unit Beate Uhse
Netherlands B.V.

As reported by the Troubled Company Reporter-Europe on Dec. 18,
2017, Reuters related that German sex shop group Beate Uhse filed
for insolvency after failing to secure financing from a group of
investors.

The company was started in 1946 by a former female pilot with the
same name.


DECO 10: Fitch Affirms D Rating on EUR19MM Class D Notes
--------------------------------------------------------
Fitch Ratings has affirmed DECO 10 - Pan Europe 4 p.l.c.'s (DECO
10) floating-rate notes due October 2019:

  EUR10 million class C (XS0276273074) affirmed at 'CCsf';
  Recovery Estimate (RE) revised to 65% from 75%

  EUR19 million class D (XS027673660) affirmed at 'Dsf'; RE 0%

DECO 10 closed in December 2006 and was originally the
securitisation of 14 commercial real estate loans. In January
2017, two loans remained with collateral located in Germany.

KEY RATING DRIVERS

The 'CCsf' rating on the class C notes reflects probable default.
Despite the full repayment of the Rubicon Nike and ECP MF
Portfolio loans, which have resulted in the redemption of the
class A2 and B notes since the last rating action in February
2017, sale proceeds from the Treveria II loan have not reached
levels that would ensure the repayment of the class C notes,
resulting in an RE of 65%. The class D notes have already suffered
a loss, as reflected in the 'Dsf' rating.

The defaulted EUR50.4 million Treveria II loan (of which 50% is
securitised in DECO 10) is in the process of being liquidated.
While seven properties have been sold since the last rating
action, redeeming the loan by EUR7 million, four properties
remain. These remaining properties have been notarised with gross
sales proceeds of EUR10.8 million. As the sale is still yet to be
finalised, and further extensions continue to be granted, Fitch
has accounted for possible discounts upon final sale in its RE. A
further EUR4.8 million cash reserve has been escrowed for capital
expenditure and expenses. The Treveria II loan is likely to
experience a large loss once the asset sales are completed.

The EUR1.6 million Lubeck Retail loan is entirely secured by a
EUR2 million reserve fund.

RATING SENSITIVITIES

The class C notes will be downgraded if a loss is realised on the
tranche.



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


BLACKROCK EUROPEAN I: S&P Assigns B-(sf) Rating to Cl. F-R Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
BlackRock European CLO I DAC's class A-R, B-1-R, B-2-R, C-R, D-R,
E-R, and F-R notes.

Blackrock European CLO I is a European cash flow corporate loan
collateralized loan obligation (CLO) securitization of a revolving
pool, comprising euro-denominated senior secured loans and bonds
issued mainly by European borrowers. BlackRock Investment
Management (UK) Ltd. is the collateral manager.

On the reissuance date, the issuer will redeem the class A-1, A-2,
B-1, B-2, C, D, and E notes through liquidation and use the
proceeds from the issuance of the reissued class A-R, B-1-R, B-2-
R, C-R, D-R, E-R, and F-R notes to repurchase the portfolio.

The preliminary ratings reflect:

-- The diversified collateral pool, which will consist primarily
    of broadly syndicated speculative-grade, senior secured, term
    loans and bonds that are governed by collateral quality
    tests.
-- The credit enhancement provided through the subordination of
    cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect
    the performance of the rated notes through collateral
    selection, ongoing portfolio management, and trading.

-- The transaction's legal structure, which S&P considers to be
    bankruptcy remote.

S&P said, "We consider that the transaction's documented
counterparty replacement and remedy mechanisms will adequately
mitigate its exposure to counterparty risk under our current
counterparty criteria.

"Following the application of our structured finance ratings above
the sovereign criteria, we consider the transaction's exposure to
country risk to be limited at the assigned rating levels, as the
exposure to individual sovereigns does not exceed the
diversification thresholds outlined in our criteria.
"We also considered that the transaction's legal structure will be
bankruptcy remote, in line with our legal criteria.

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

PRELIMINARY RATINGS ASSIGNED

  Blackrock European CLO I DAC
  EUR474.0 Million Senior Secured Floating- And Fixed-Rate Notes
  (Including EUR50.0 Million Subordinated Notes)

  Class                Prelim.       Prelim.
                       rating         amount
                                    (mil. EUR)

  A-R                  AAA (sf)        266.0
  B-1-R                AA (sf)         39.68
  B-2-R                AA (sf)         26.32
  C-R                  A (sf)           32.0
  D-R                  BBB (sf)         24.0
  E-R                  BB- (sf)         25.5
  F-R                  B- (sf)          10.5
  Subordinated notes   NR               50.0


TORO EUROPEAN 5: Moody's Assigns (P)B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Toro
European CLO 5 Designated Activity Company:

-- EUR2,250,000 Class X Secured Floating Rate Notes due 2030,
    Assigned (P)Aaa (sf)

-- EUR232,500,000 Class A Secured Floating Rate Notes due 2030,
    Assigned (P)Aaa (sf)

-- EUR34,000,000 Class B-1 Secured Floating Rate Notes due 2030,
    Assigned (P)Aa2 (sf)

-- EUR22,850,000 Class B-2 Secured Fixed Rate Notes due 2030,
    Assigned (P)Aa2 (sf)

-- EUR14,500,000 Class C-1 Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)A2 (sf)

-- EUR10,000,000 Class C-2 Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)A2 (sf)

-- EUR21,720,000 Class D Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)Baa2 (sf)

-- EUR23,450,000 Class E Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)Ba2 (sf)

-- EUR11,850,000 Class F Secured Deferrable Floating Rate Notes
    due 2030, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

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

Toro European CLO 5 Designated Activity Company is a managed cash
flow CLO. At least 90% of the portfolio must consist of senior
secured loans and senior secured bonds and up to 10% of the
portfolio may consist of unsecured obligations, second-lien loans,
mezzanine loans and high yield bonds. The portfolio is expected to
be approximately at least 70% ramped up as of the closing date and
to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe.

Chenavari 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 obligations, and are subject to certain restrictions.

In addition to the nine classes of notes rated by Moody's, the
Issuer will issue EUR41.25m 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. Chenavari's investment decisions and management
of the transaction will also affect the notes' performance.

Loss and Cash Flow Analysis:

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

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

Par amount: EUR400,000,000

Diversity Score: 34

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.70%

Weighted Average Recovery Rate (WARR): 43%

Weighted Average Life (WAL): 8.5 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign government
bond ratings of the eligible countries, as a worst case scenario,
a maximum 10% of the pool would be domiciled in countries with A3.
The remainder of the pool will be domiciled in countries which
currently have a local or foreign currency country ceiling of Aaa
or Aa1 to Aa3.

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class X Secured Floating Rate Notes: 0

Class A Secured Floating Rate Notes: 0

Class B-1 Secured Floating Rate Notes: -2

Class B-2 Secured Fixed Rate Notes: -2

Class C-1 Secured Deferrable Floating Rate Notes: -2

Class C-2 Secured Deferrable Floating Rate Notes: -2

Class D Secured Deferrable Floating Rate Notes: -2

Class E Secured Deferrable Floating Rate Notes: 0

Class F Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

Class X Secured Floating Rate Notes: 0

Class A Secured Floating Rate Notes: -1

Class B-1 Secured Floating Rate Notes: -3

Class B-2 Secured Fixed Rate Notes: -3

Class C-1 Secured Deferrable Floating Rate Notes: -4

Class C-2 Secured Deferrable Floating Rate Notes: -4

Class D Secured Deferrable Floating Rate Notes: -2

Class E Secured Deferrable Floating Rate Notes: -1

Class F Secured Deferrable Floating Rate Notes: 0



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


AUTOSTRADA BRESCIA: Fitch Affirms BB+ Rating on EUR400MM Bond
-------------------------------------------------------------
Fitch Ratings has affirmed Autostrada Brescia Verona Vicenza
Padova's (ABVP) EUR400 million senior secured bond at 'BB+'. The
Outlook is Stable.

KEY RATING DRIVERS

The 'BB+' rating considers ABVP's solid operating profile as well
as bond exposure to refinancing risk.

ABVP operates one of the busiest Italian toll road networks under
an unusual concession structure where capex and related debt are
recovered through a terminal value (TV) payment. The TV is paid by
a new concessionaire at concession maturity (2026) or, in case of
delays, two years later by the grantor in 2028. If the TV is not
paid, ABVP will continue to operate the concession. In Fitch's
view, the TV mechanism is robust as its payment is contractually
calculated on net book value, allowing ABVP to recover realised
investments. However, the TV scheme is unusual and broadly
untested in Italy, which may affect banks' appetite to refinance
such transaction structures.

Robust Traffic, Moderate Volatility - Revenue Risk (Volume):
Midrange

The network is strategically located at the centre of the A4
corridor linking the east-west stretch of northern Italy, a
wealthy and industrialised catchment area. Traffic in vehicles km
experienced a peak to trough of 8% in 2012-2013 as austerity
measures led to a collapse in domestic consumption. This is
slightly better than Italian peers Autostrade per l'Italia (-11%)
and Sias (-12%). In Fitch view, the inherent uncertainty of
traffic related to the new Valdastico Nord stretch is not material
for the rating given the small proportion of cash flow expected
from this part of the network.

RAB-Based Model - Revenue Risk (Price): Midrange

The price mechanism allows a return on the asset base and recovery
of operating costs and depreciation of assets. Historical fairly
low tariff increases (0.5% in 2005-2009) as well as the recent
tariff suspension or cap indicate some political interference.
However, the grantor appears to be committed to allowing ABVP to
recover the tariff shortfall when the updated business plan is
approved.

Ambitious Capex Plan - Infrastructure Development and Renewal:
Midrange

The company faces an ambitious and largely debt funded capex
programme of around EUR2 billion until 2026, including the
Valdastico Nord, a greenfield project covering the north-east of
Italy in ABVP's network. The final design and location of a
section of this project is still under discussion and exposed to
cost increase. The concession framework provides comfort as higher
than expected capex would ultimately increase the TV paid at
concession maturity. Furthermore, ABVP experience in delivering
investments on its network and the grantor's extensive oversight
in the tender and execution phase of Valdastico Nord mitigate the
execution risk.

Unusual Debt Structure - Debt Structure: Weaker

The rated bond is senior secured, bullet and fixed-rate. Caps on
distribution and lock-up covenants are protective features as are
the broad set of ring-fencing provisions included in the
concession agreement.

ABVP will remain cash flow-negative post interest payment until
2025 due to high capex requirements. New lenders considering
refinancing the bond in 2020 will therefore rely on the TV payment
at concession maturity. A delay in the receipt of the TV payment
would mechanically delay the reimbursement of that loan and ABVP
would continue to run the concession. This would incentivise
lenders to roll over their debt until the TV is paid. However, in
Fitch view, the uncertainty around banks' and the capital market's
appetite for financing such a transaction structure leaves
bondholders exposed to material refinancing risk.

Financial Profile

The minimum project life coverage ratio (PLCR) under the updated
Fitch rating case (FRC) is 1.2x and the TV/net debt remains
largely above 1.3x over the concession period, ensuring adequate
coverage of the outstanding debt. PLCR and TV/net debt are
relevant as a large part of debt raised will be reimbursed through
the TV payment. The average three-year interest coverage ratio is
above 10x and projected three-year leverage is 2.0x.

PEER GROUP

ABVP is not directly comparable with any peer. Its transaction
structure is fully based on the TV payment at concession maturity
rather than the usual path of debt-funded capex and subsequent
debt repayment by free cash flow available by concession maturity.

ABVP is significantly smaller than national toll road operators
such as Autostrade per l'Italia (A-/RWN), Sias (BBB+/Stable),
Abertis (BBB+/RWN) and Brisa (BBB+/Stable). Similar to most of
Fitch-rated EMEA toll road issuers, ABVP's debt structure is
bullet but the company's ambitious debt-funded capex programme,
single bullet debt and refinancing risk related to the TV payment
scheme position the rating at sub-investment grade.

RATING SENSITIVITIES

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

  - Minimum PLCR breaching 1.1x or minimum TV/net debt below 1.2x
    under the FRC would put pressure on the rating.

  - Adverse changes to the regulatory framework or the TV scheme
    or material cost overruns on the Valdastico Nord project not
    being recognised in TV could also be rating-negative.

  - Failure to refinance the bond well in advance would be credit
    negative as would an increase in current refinancing risk.

  - Fitch views the grantor's obligation to pay the TV as
    subordinated to Italy's financial obligations and ABVP's issue
    rating would be negatively affected if Italy's rating were
    downgraded by more than one notch.

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

  - A substantially higher than expected minimum PLCR or minimum
    TV/net debt would be rating positive but unlikely to trigger
    an upgrade until there is clear evidence of the refinancing
    process.



===================
K A Z A K H S T A N
===================


CAPITAL BANK KAZAKHSTAN: S&P Withdraws CCC+/C Global Scale ICRs
---------------------------------------------------------------
S&P Global Ratings withdrew its 'CCC+/C' long- and short-term
global scale issuer credit ratings on Capital Bank Kazakhstan
(CBK) at the company's request as well as its 'kzB-' long-term
Kazakhstan national scale rating on the bank. At the time of
withdrawal, the long-term global and national scale ratings were
on CreditWatch with negative implications.



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


CHAVES SME 1: Moody's Hikes Class D Notes Rating to Ba1
-------------------------------------------------------
Moody's Investors Service has upgraded the rating of Chaves SME
CLO No.1 class D notes to Ba1 (sf) from Ca (sf) and affirmed class
E notes at C (sf).

-- EUR4.9M (Current outstanding amount of EUR3.8M) Class D
    Notes, Upgraded to Ba1 (sf); previously on Jun 16, 2015
    Affirmed Ca (sf)

-- EUR9.6M Class E Notes, Affirmed C (sf); previously on Jun 16,
    2015 Affirmed C (sf)

Chaves SME CLO No.1 is a Portuguese asset-backed securities (ABS)
securitisation of loans to small and medium sized enterprises
(SME). The originator is BPN - Banco Portugues de Negocios, S.A.,
a non-rated entity which was acquired by Banco BIC Portugues, S.A.
in 2012 (not rated).

RATINGS RATIONALE

The upgrade is prompted by the full repayment of the Class C Notes
in November 2017. As per the Class C noteholders meeting
resolution, noteholders consent to release the EUR12.2M reserve
fund and use EUR7 M of additional contribution made by the
remaining noteholders to repay Class C. Following such repayment,
the credit enhancement level of Class D has increased to 86.1%
from -18.9% since last rating action in June 2015 and Class D has
become the most senior tranche. As of January 2018, the
transaction's performing pool balance amount is at EUR9.8M and
there is a EUR2.4M reserve fund still available.

Revision of key collateral assumptions

As part of the review, Moody's reassessed its default
probabilities (DP) as well as recovery rate (RR) assumptions based
on updated loan by loan data on the underlying pools and
delinquency, default and recovery ratio update.

Exposure to counterparties

The rating action took into consideration the notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.

Moody's considered how the liquidity available in the transactions
and other mitigants support continuity of notes payments, in case
of servicer default, using the CR Assessment as a reference point
for servicers.

Moody's also matches banks' exposure in structured finance
transactions to the CR Assessment for commingling risk, with a
recovery rate assumption of 45%.

Moody's also assessed the default probability of the account bank
providers by referencing the bank's deposit rating.

Moody's assessed the exposure to the swap counterparties. Moody's
considered the risks of additional losses on the notes if they
were to become unhedged following a swap counterparty default by
using CR Assessment as reference point for swap counterparties.

Principal Methodology:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in August 2017.

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

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

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



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


ORIENT EXPRESS: Moody's Hikes Long-Term Deposit Ratings to B3
-------------------------------------------------------------
Moody's Investors Service has upgraded to B3 from Caa1 the long-
term local- and foreign-currency deposit ratings of Orient Express
Bank. The bank's local-currency senior unsecured debt rating was
also upgraded to B3 from Caa1. The outlook on these ratings is
stable. Concurrently, Moody's upgraded Orient Express Bank's
baseline credit assessment (BCA) and adjusted BCA to b3 from caa1.
The bank's Not Prime short-term local-currency and foreign-
currency deposit ratings were affirmed.

Moody's has also upgraded Orient Express Bank's long-term
Counterparty Risk Assessment (CR Assessment) to B2(cr) from B3(cr)
and affirmed the bank's short-term CR Assessment of Not Prime(cr).

RATINGS RATIONALE

The ratings upgrade reflects the improvements in the bank's
profitability and capital adequacy in 2017, which Moody's expects
to protract into 2018. At the same time, the ratings continue to
incorporate downside asset risk to the bank's financial
fundamentals, mainly stemming from a weak quality of its corporate
loan book and a material non-core asset holding.

Orient Express Bank's problem loan ratio has stabilized at around
14% of its total loan portfolio, as reported at September 30,
2017, which is close to Moody's estimate of a 12% sector-average
problem loan ratio. While the bank's retail loans overdue by more
than 90 days were fully covered by loan loss reserves as of
September 30, 2017, the loan loss reserves coverage of corporate
problem loans was low at 24% as of the same reporting date
(Moody's definition of problem loans includes loans that are
either overdue by more than 90 days or individually impaired). A
mitigating factor is that the corporate loans account for only one
third of Orient Express Bank's total loan book, because the bank's
balance sheet is skewed to retail business. Moody's believes that
Orient Express Bank will need to charge more provisions for its
corporate loans in 2018, which will result in the bank's overall
credit losses remaining at elevated levels, according to the
rating agency's central scenario expectations.

Orient Express Bank posted RUB4 billion net IFRS profits for the
first nine months of 2017, and the bank's management expects RUB5
billion profits for the whole of 2017. This expectation is in line
with Moody's central scenario. The rating agency anticipates that
Orient Express Bank's historically ample net interest margin
(10.6% reported for the first nine months of 2017, in annualised
terms), coupled with solid fee and commission income, will be
sufficient to absorb both the bank's credit losses and its
administrative expenses. The latter will likely moderate in 2018
compared to the 2017 level, thanks to the economy of scale
expected to be achieved following Orient Express Bank's merger
with Bank Uniastrum in early 2017.

Orient Express Bank's return to profitability, coupled with low
expected growth in its risk-weighted assets, will lead to an
increase in the bank's capital adequacy, further amplified by the
upcoming RUB5 billion capital injection recently announced by the
bank's shareholders. Moody's expects that, with the strengthened
loss absorption capacity, the bank will be better positioned to
address any downside risks stemming from a potential decline in
market value of its non-core property holding. As of September 30,
2017, this non-core property accounted for approximately one third
of Orient Express Bank's Tier 1 capital.

WHAT COULD MOVE THE RATINGS UP / DOWN

Moody's may upgrade Orient Express Bank's deposit and debt ratings
if it observes further sustainable improvements in the bank's
solvency metrics coupled with the reduction in the volume of its
non-core property holding.

Orient Express Bank's ratings might be downgraded, or the rating
outlook might be revised to negative from stable if the bank's
shareholders fail to make capital injection to the bank, as per
the announced plan, or if the bank faces material losses exceeding
Moody's central scenario expectations that are not sufficiently
addressed by this capital injection.

LIST OF AFFECTED RATINGS

Issuer: Orient Express Bank

Upgrades:

-- LT Bank Deposits, Upgraded to B3 from Caa1, Outlook remains
    Stable

-- Senior Unsecured Regular Bond/Debenture, Upgraded to B3 from
    Caa1, Outlook remains Stable

-- Adjusted Baseline Credit Assessment, Upgraded to b3 from caa1

-- Baseline Credit Assessment, Upgraded to b3 from caa1

-- LT Counterparty Risk Assessment, Upgraded to B2(cr) from
    B3(cr)

Affirmations:

-- ST Bank Deposits, Affirmed NP

-- ST Counterparty Risk Assessment, Affirmed NP(cr)

Outlook Actions:

-- Outlook, Remains Stable

PRINCIPAL METHODOLOGY

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

Headquartered in Khabarovsk, Russia, Orient Express Bank reported
total assets of RUB219 billion and total shareholder equity of
RUB30.5 billion under unaudited IFRS financial statements as of
September 30, 2017. The bank's IFRS profits for the nine months of
2017 stood at RUB4.0 billion.


RUSHYDRO CAPITAL: Fitch Gives Final BB+ Rating to RUB20BB LPNs
--------------------------------------------------------------
Fitch Ratings has assigned RusHydro Capital Markets DAC's RUB20
billion 7.4% rouble-denominated loan participation notes (LPNs)
due in 2021 a 'BB+' final senior unsecured rating, in line with
PJSC RusHydro's (RusHydro) Long-Term Issuer Default Rating (IDR)
of 'BB+', which has a Stable Outlook.

RusHydro Capital Markets DAC is an orphan special purpose
financing vehicle. The LPNs are issued on a limited recourse basis
for the sole purpose of funding a loan to RusHydro. The
noteholders will rely solely and exclusively on RusHydro's credit
and financial standing for the payment of obligations under the
LPNs. RusHydro plans to use the net proceeds from the notes for
general corporate purposes, including the refinancing of upcoming
debt maturities and capex funding.

The 'BB+' IDR reflects RusHydro's improved credit metrics and
solid business profile. Fitch forecast RusHydro's funds from
operations (FFO)-adjusted net leverage will be below 3.0x during
2017-2021 due to strong financial and operational performance in
2016 and over the next five years.

RusHydro's IDR incorporates a single-notch uplift for state
support from the company's standalone rating of 'BB', due to
strong strategic, operational and, to a lesser extent, legal ties
between the company and its majority shareholder, the Russian
Federation (BBB-/Positive).

KEY RATING DRIVERS

State Support: RusHydro continues to receive tangible state
support. In 2012-2016 the company received support of more than
RUB173 billion, including a RUB50 billion equity injection for the
construction of four thermal power plants in the Far East in 2012,
direct subsidies of RUB68 billion as compensation for low tariffs
in the Far East, and a recent RUB55 billion injection from state-
owned VTB Bank for the repayment of Far East debt.

Nevertheless, the consolidation of financially weaker RAO Energy
System of the East Group (RAO UES East) in 2011 and the
government's decision to increase dividend payments for 2016 to
50% of net income weakened the company's operating and financial
profile, underlining the negative implications of state
involvement.

Forward Contract with VTB: In March 2017, RusHydro received a
RUB55 billion cash injection from the state, via a 13% share
purchase by VTB. These proceeds were used to repay RAO UES East's
debt. VTB has also signed a non-deliverable (with no obligation on
RusHydro to buy back its shares from VTB) five-year forward
contract with RusHydro. Either RusHydro or VTB must compensate for
the difference between the forward value (share price at which the
deal was made) and the value at sale of RusHydro's shares in five
years: that is, if the value at sale is below the forward value,
the difference is paid by RusHydro to VTB, and vice versa.

The company states that the sale of this stake would require state
approval. In Fitch rating case, Fitch treat this RUB55 billion
fully as debt before the expiry of this contract as the potential
liability under this forward contract would rank pari passu with
existing senior unsecured debt and there is no deferral option on
RusHydro's payments to VTB for the duration of the contract. Fitch
will reclassify any amount remaining with RusHydro after the
contract termination as equity, which will have a positive effect
on its credit metrics, other things being equal. However, the
rating is not constrained by Fitch current treatment of the
contract.

Solid Financial Profile: Fitch forecast RusHydro's FFO-adjusted
net leverage to be below 3.0x during 2017-2021 due to strong
financial and operational performance in 2016-9M17 and over the
next five years. Fitch also forecasts 2017-2021 EBITDA will remain
at around RUB98 billion (RUB93 billion in 2016) and that the
EBITDA margin will remain at around 24%. This is based on Fitch
expectation that tariffs will be increased below CPI, whereas a
large part of the operating costs (eg fixed costs) will increase
at the rate of CPI. The resulting impact is partially offset by
new capacity coming online.

Capex Results in Negative FCF: Fitch expects RusHydro to continue
to generate negative free cash flow (FCF) on average of around
RUB20 billion, owing to its substantial capex programme of RUB342
billion (including VAT) over 2017-2020, which Fitch expect will be
partially debt-funded. Around a third of RusHydro's capex relates
to RAO UES East. This contrasts with positive FCF generation by
RusHydro's closest peers, PJSC Inter RAO (BBB-/Stable), PJSC
Mosenergo (BBB-/Stable) and Enel Russia PJSC (BB+/Stable), which
have completed their expansionary capex programmes.

However, RusHydro has flexibility to cut back its investment
programme if there is a lack of available funding or material
deterioration in its credit metrics, especially in the context of
increased dividend payments from 2016, as demonstrated in the
past. In 2016 capex fell by more than 30% yoy.

'BB' Standalone Rating: RusHydro's standalone rating of 'BB'
reflects the company's strong market position as a leading, low-
cost electricity producer in Russia with a large portfolio of
hydro power plants with installed electric power capacity of about
39GW. The standalone profile also reflects exposure to regulated
tariffs via its RAO UES East division, which will remain a drag on
profitability and cash flows. The standalone rating also factors
in the risks associated with the regulatory framework in the
Russian utilities sector in the medium term and the general
operating environment in Russia.

DERIVATION SUMMARY

RusHydro is one of the largest power generation companies in
Russia and listed hydroelectric generation companies in the world
by installed capacity. It is also exposed to fossil-fuel
generation via its RAO UES East division, and compares well with
other rated generating companies such as Inter RAO, Mosenergo and
Public Joint Stock Company Territorial Generating Company No. 1
(TGC-1, BB+/Stable) by operational metrics. Peers are also subject
to regulatory uncertainties and have large investment programmes.
However, in contrast to RusHydro, Inter RAO, Mosenergo and Enel
Russia generate a large share of their cash flows from capacity
sales under capacity supply agreements, which support their cash-
flow stability.

RusHydro's financial profile is weaker than Inter RAO's and
Mosenergo's in terms of FFO-based net leverage, and quite similar
to TGC-1's, varying historically between 2.0x and 3.0x. The
ratings of Russian utilities reflect the uncertainty pertaining to
the regulatory framework in the sector and general operating
environment in Russia. RusHydro's IDR incorporates a one-notch
uplift to the company's 'BB' standalone rating for parental
support from the ultimate indirect majority shareholder, the
Russian Federation.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for RusHydro
include:

- Domestic GDP and inflation increase of 2.2% and 4.3% in 2018
   and by 2% and 4.5% in 2019-2021;
- Electricity and heat tariffs and power prices to increase below
   CPI over 2017-2021;
- Dividends at 50% of net income under IFRS for 2017-2021;
- RUB55 billion cash injection by VTB fully treated as debt; and
- Haircuts to capex for 2017, 2018 and 2019 of 20%, 20% and 10%,
   respectively, compared with management expectations.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- Capex and opex moderation resulting in improvement of the
   financial profile (eg generation of positive FCF and FFO net
   adjusted leverage below 2.0x and FFO fixed charge coverage
   above 4x on a sustained basis).

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- The inability to maintain FFO adjusted net leverage below 3.0x
   and FFO fixed charge coverage above 3.0x, due to weaker
   financial profile and a more ambitious capex programme.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At end-2017 RusHydro had cash and deposits of
around RUB69 billion (excluding the remaining state financing of
around RUB6 billion, which includes cash injection in December
2012 for financing RAO UES East's projects). In addition to
available uncommitted credit lines totalling around RUB117
billion, including from such large state-owned banks as VTB Bank,
Gazprombank (Joint-stock Company) (BB+/Positive) and Sberbank of
Russia (BBB-/Positive), this is sufficient to cover short-term
debt of RUB74 billion.

Limited FX Exposure: RusHydro has limited exposure to foreign-
currency risks. At end-2017 around 5% of RusHydro's debt was
denominated in foreign currencies, mainly euros, while almost all
its revenue is in local currency.

Eurobond Placement: The LPNs issued by RusHydro Capital Markets
DAC are ranked pari passu with other senior unsecured obligations
of RusHydro. The LPNs have the benefit of change of control clause
if Russia ceases to own or control (directly or indirectly) in
excess of 50% of voting shares, negative pledge clauses and
certain restrictions on mergers, acquisitions and disposals.
Events of default include non-payment under this issue and non-
payment of any other indebtedness exceeding a USD50 million
threshold.


SAKHA REPUBLIC: S&P Affirms 'BB' ICR & 'BB' Sr. Unsec. Bond Rating
------------------------------------------------------------------
On Feb. 16, 2018, S&P Global Ratings affirmed its 'BB' long-term
issuer credit rating on the Republic of Sakha, a region in
Russia's Far Eastern federal district. The outlook is stable.

At the same time, S&P affirmed its 'BB' issue rating on Sakha's
senior unsecured bonds.

OUTLOOK

The stable outlook reflects S&P's view that Sakha will maintain
only a modest deficit after capital accounts and a positive
operating balance, as well as timely secure treasury credit
facilities, while it will keep free cash in sufficient amounts to
maintain adequate liquidity.

Downside Scenario
S&P could take a negative rating action if Sakha failed to secure
a sufficient amount of credit facilities ahead of debt repayment
or if its access to short-term State treasury loans or capital
markets worsened, thereby raising refinancing risks.
Alternatively, a materially higher-than-expected deficit after
capital accounts, leading to the debt service coverage ratio
falling below 120%, could trigger a downgrade.

Upside Scenario

S&P could take a positive rating action if stronger revenue
performance, together with budget austerity measures, enabled
Sakha to structurally improve its budgetary performance and
gradually reduce tax-supported debt to less than 30% of operating
revenues.

RATIONALE

S&P said, "The ratings on Sakha are constrained by our view of
Russia's volatile and unbalanced institutional framework and the
region's weak budgetary flexibility under existing legislation.
Sakha demonstrates wealth levels above the Russian average and, in
our view, enjoys above-average growth prospects. We believe that
in the near term Sakha will maintain its average budgetary
performance, adequate liquidity, and moderate contingent
liabilities. The ratings are supported by Sakha's relatively low
debt burden."

A relatively wealthy economy in the context of a volatile
institutional framework

Under Russia's volatile and unbalanced institutional framework,
Sakha's budgetary flexibility and performance is significantly
affected by the federal government's decisions regarding key
taxes, transfers, and expenditure responsibilities. S&P said, "We
estimate that federally-regulated revenues will continue to make
up more than 95% of Sakha's budget revenues, which leaves very
little revenue autonomy for the region. The federal budget law for
2018-2020 does not have provisions for new budget loans; we
understand stronger regions, like Sakha, will not receive support
through budget loans in the coming three years. At the same time,
we understand that the region will not participate in the
restructuring of the outstanding budget loans proposed by the
federal Ministry of Finance, but will benefit from the extension
of the revolving federal treasury facility to 90 days starting
from 2018, from 50 days previously."

Sakha enjoys higher-than-domestic-average economic wealth levels,
owing to an abundance of natural resources, including diamonds,
oil, gas, coal, and precious metals. The local economy has
continued to grow in the past three years, despite the slowdown at
the national level, and S&P believes that the republic will
demonstrate above-domestic-average real GDP growth in the near
term, as Sakha's economy will continue to be supported by ongoing
investments in a number of large long-term projects in resource
extraction, such as the Chayandinskoye and Talakanskoye field
developments. However, the concentration of the economy on the
mining industry, which accounts for nearly half of gross
regional product, leads to potential volatility in Sakha's
revenues. Moreover, the tax base is dominated by a few large
taxpayers. More than 40% of tax revenues come from Alrosa and its
subsidiaries. Oil producer OJSC Surgutneftegas (SNG) and oil
pipeline operator OAO AK Transneft contribute another 7%.

Similar to most Russian local and regional governments (LRGs),
Sakha's modifiable revenues (mainly transport tax and nontax
revenues) are low and don't provide much flexibility. At the same
time, based on a good track record, including a successful share
sale of the world's largest diamond producer, Alrosa OJSC, in the
past and a significant amount of assets still in the Republic's
possession, S&P believes Sakha has above-average ability to
generate revenues from asset sales compared with its local peers.
Overall, Sakha's expenditure flexibility remains weak because of
the region's huge territory and harsh subarctic climate, which
translate into high operating costs and large infrastructure
development needs.

S&P believes that the region enjoys higher political and
managerial strength as well as stronger revenue and expenditure
management then most international peers. At the same time, like
all Russian LRGs, Sakha lacks reliable long-term financial
planning and doesn't have sufficient mechanisms to counterbalance
the volatility that stems from the concentrated nature of its
economy and tax base in an international comparison.

A stable budgetary performance will result in low debt and
adequate liquidity

S&P said, "We forecast that Sakha will maintain operating balances
below 5% of operating revenues in 2018-2020, and a modest deficit
after capital accounts. In 2017, the region demonstrated a higher
deficit after capital accounts then we previously forecast, due to
the decreased contributions from SNG, following the revaluation of
the company's large foreign currency-denominated deposit, based on
continuous appreciation of the ruble last year. Going forward, we
expect the region's financial performance to recover and to remain
stable. We believe performance of corporate profit tax (CPT) and
mineral extraction tax will be supported by a more stable ruble
exchange rate, and we expect higher transfers from the central
government after the increase in equalization grants, based on
changes in the federal methodology introduced in 2017 and applied
to remote regions."

Moderate deficits after capital accounts will translate into tax-
supported debt gradually expanding to about 44% of consolidated
operating revenues by year-end 2020. S&P said, "We also believe
that the share of commercial debt in the region's debt structure
will gradually expand, as we do not expect Sakha to receive new
budget loans in the near term. Given Sakha's established track-
record, we anticipate it will continue issuing regularly and
obtaining bank loans. Our estimates of tax-supported debt factor
in direct debt, guarantees, which the region regularly issues, and
the debt of non-self-supporting government-related entities
(GREs)."

S&P said, "In our view, Sakha's contingent liabilities will remain
moderate in the near term. While Sakha's numerous GREs provide
vital services and frequently require subsidies, capital
injections, budget loans, and guarantees, we estimate that in 2018
Sakha might need to provide between 10% and 15% of its operating
revenues to them, a moderate level by international standards.

"We assume that, in the next 12 months, the republic's average
cash reserves net of the deficit after capital accounts, together
with available state treasury facilities, will cover debt service
by more than 120%. Sakha will have to rely on access to market
borrowing in order to refinance its maturing debt in 2018-2019. At
the same time, we incorporate the region's limited access to
external liquidity in our overall assessment of its liquidity.
This is because of the weaknesses of the domestic capital market."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

                                        Rating
                                  To               From
  Sakha (Republic of)
   Issuer Credit Rating
    Foreign and Local Currency    BB/Stable/--     BB/Stable/--
   Senior Unsecured
    Local Currency                BB               BB



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


RURAL HIPOTECARIO VIII: Fitch Affirms CC Rating on Cl. E Notes
--------------------------------------------------------------
Fitch Ratings has upgraded nine tranches of Rural Hipotecario VI,
VII and VIII, affirmed three tranches and removed all notes from
Rating Watch Evolving (RWE):

Rural Hipotecario VI, FTA
Class A (ES0374306001); upgraded to 'AAAsf' from 'AA+sf'; off RWE;
Outlook Stable
Class B (ES0374306019); upgraded to 'AAsf' from 'A+sf'; off RWE;
Outlook Stable
Class C (ES0374306027); upgraded to 'Asf' from 'BBB+sf'; off RWE;
Outlook Stable

Rural Hipotecario VII, FTA
Class A1 (ES0366366005); upgraded to 'AAAsf' from 'AA+sf'; off
RWE; Outlook Stable
Class B (ES0366366021); affirmed at 'A+sf'; off RWE; Outlook
Stable
Class C (ES0366366039); upgraded to 'Asf' from 'BBB-sf'; off RWE;
Outlook Stable

Rural Hipotecario VIII, FTA
Class A2a (ES0366367011); upgraded to 'AAAsf' from 'AA+sf'; off
RWE; Outlook Stable
Class A2b (ES0366367029); upgraded to 'AAAsf' from 'AA+sf'; off
RWE; Outlook Stable
Class B (ES0366367037); affirmed at 'A+sf'; off RWE; Outlook
Stable
Class C (ES0366367045); upgraded to 'A+sf' from 'BBBsf'; off RWE;
Outlook Stable
Class D (ES0366367052); upgraded to 'Asf' from 'BB+sf'; off RWE;
Outlook Stable
Class E (ES0366367060); affirmed at 'CCsf'; off RWE; Recovery
Estimate (RE) revised to 0% from 60%

The transactions comprise residential mortgage loans originated
and serviced by multiple rural saving banks in Spain.

KEY RATING DRIVERS

Sovereign-Related Cap Lifted
Following Fitch's upgrade of Spain's Long-Term Local-Currency
Issuer Default Rating (IDR) to 'A-' on 19 January 2018, and in
line with Fitch's Structured Finance and Covered Bonds Country
Risk Rating Criteria, Spanish structured finance transactions are
no longer capped at 'AA+sf', but can be rated up to 'AAAsf', i.e.
six notches above the sovereign's rating. This is reflected in the
upgrade of the transactions' senior notes to 'AAAsf' from 'AA+sf'.

European RMBS Rating Criteria
The application of the European RMBS Rating Criteria has generally
led to smaller expected losses, contributing to the upgrades.

Stable Asset Performance
All three transactions are quite seasoned. As such, the weighted
average current loan-to-value (LTV) ratios have dropped below 40%,
compared with the weighted average original LTV of around 70%.

The transactions continue to show sound asset performance trends
with three-month plus arrears (excluding defaults) ranging between
0.6% and 1.4% of the portfolio outstanding balance, and cumulative
gross defaults (defined as loans in arrears for more than 18
months) ranging between 0.8% and 2.1% of the initial portfolio
balance at the time of the review.

Increasing Credit Enhancement (CE)
All three transactions include pro-rata amortisation mechanisms so
long as performance and tranche thickness (tranche size relative
to total outstanding) triggers are fulfilled. As the transactions
amortise, Fitch expects CE to increase for all rated notes due to
the availability of a floored cash reserve. CE is expected to
increase only slightly for Rural Hipotecario VI's senior tranches
as the pro-rata amortisation of all classes of notes continues,
but CE ratios for Rural Hipotecario VIII's senior notes should
increase more as the transaction is currently paying pro-rata for
both the senior class A2a and A2b notes. The other notes are paid
fully sequentially. Rural Hipotecario VII's senior notes should
also see only a slight increase in CE as the pro-rata currently
applies to senior and mezzanine notes.

CE for the junior notes consists solely of the amounts from the
floored cash reserve. As this exposure is present for more than 12
months, in line with Fitch's counterparty criteria, the junior
notes' ratings are not viewed as sufficiently isolated to achieve
ratings higher than the account bank's (Citibank Europe Plc) 'A'
rating.

Interest Deferability
Interest deferrals for mezzanine and junior notes are permitted
under the terms of the transaction documents. In line with its
Global Structured Finance Rating Criteria, Fitch will not assign
ratings in the 'AAsf'-category or higher to notes that it expects
would defer interest under stress scenarios associated with those
rating categories.

RATING SENSITIVITIES

A worsening of the Spanish macroeconomic environment, especially
employment conditions or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability. This could
have negative rating implications, especially for junior tranches
that are less protected by structural CE.

The ratings of the senior notes are sensitive to changes in
Spain's Long-Term Foreign-Currency IDR, which affects the highest
achievable rating for Spanish structured finance notes. Therefore,
a downgrade of the sovereign would lead to a review of the senior
notes' ratings.

The junior notes' ratings are sensitive to changes in the account
bank's rating. Therefore, a change in the account bank's rating
could lead to a review of the junior notes' ratings.



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


JAMIE OLIVER: Celebrity Chef Buys Back Barbecoa Outlet
------------------------------------------------------
BBC News reports that Jamie Oliver's two flagship London
restaurants have gone into administration, although the celebrity
chef immediately bought one back.

His upmarket Barbecoa steak restaurant in London's Piccadilly will
close a year after it was re-launched, BBC discloses.

The other outlet, near St. Paul's Cathedral, has been saved after
the chef bought it for an undisclosed sum via a newly-created
subsidiary, BBC relates.

The move comes as Mr. Oliver makes cuts in other parts of his
business, BBC notes.

According to BBC, Barbecoa St Paul's was bought back under a so-
called pre-pack arrangement, which allows the purchase of the best
assets of a business before it actually goes into administration.

The Jamie Oliver Restaurant Group was already cutting costs in
other areas, despite the chef putting GBP3 million of his own
money into the business in December, relays.

Last month, it announced that it was shutting down 12 of its 37
Jamie's Italian restaurants -- the mainstay of the group -- as
part of a rescue plan with creditors that would enable it to
continue trading, BBC recounts.

The closure of the 12 restaurants will affect at least 200 jobs,
BBC states.

According to BBC, court documents revealed that Jamie's Italian
had debts of GBP71.5 million.


PRECISE MORTGAGE 2015-1: Fitch Affirms BB Rating on Class E Debt
----------------------------------------------------------------
Fitch Ratings has upgraded three tranches of Precise Mortgage
Funding 2015-1 Plc (PMF 15-1) and Precise Mortgage Funding 2015-2B
Plc (PMF 15-2B) and affirmed the remaining tranches.

PMF 15-1 is a securitisation of a mixed pool of owner-occupied and
buy-to-let (BTL) residential mortgages while PMF15-2B is entirely
backed by BTL loans. The loans were originated by Charter Court
Financial Services (CCFS), trading as Precise Mortgages (Precise)
in the UK (excluding Northern Ireland).

KEY RATING DRIVERS

Sufficient Credit Enhancement
High prepayments have substantially increased the credit
enhancement available to the structures. The build-up of credit
enhancement, together with a non-amortising overall reserve fund,
has contributed to the upgrades.

Prime Underwriting, Limited Credit History
Fitch views Precise's owner-occupied and Tier 3 BTL originations,
for which the underwriting criteria permit some prior adverse
credit history, as better credit quality than the non-conforming
universe on which the agency bases its assumptions. Consequently,
Fitch used the non-conforming matrix to calculate the base
foreclosure frequency but applied a 10% reduction in its lender
adjustment.

The remaining portions of the securitised portfolios consist of
Tier 1 and Tier 2 BTL loans which the agency treated as prime BTL
products. Fitch increased the base default probability by 10% on
these mortgage products due to the relatively short history of
available data.

The near-prime nature of the asset portfolios is reflected in the
stable performance so far. As of end-2017, the balance of
mortgages in 3m+ arrears as a percentage of the outstanding
portfolios was under 0.5% across the two transactions. Fitch
expects the transactions' performance to remain stable in the
short to medium term, as the bulk of mortgage loans are interest-
only.

Payment Interruption Risk Mitigated
Fitch tested the structures' ability to cope with a payment
interruption as a result of a servicer replacement. The agency
views the cash provided by the reserve funds' liquidity sub-
ledgers as sufficient to cover the risk of an interruption in
payments of senior fees and interest on the notes rated above
'A+sf', under stressed Libor assumptions, for more than one
interest payment date.

RATING SENSITIVITIES

An increase in market interest rates will put pressure on
borrowers' affordability, and potentially cause deterioration of
asset performance. Should this result in defaults and losses on
properties sold in excess of Fitch's expectations, Fitch may take
negative rating action on the notes.

Fitch has taken the following rating actions:

PMF 15-1
Class A (ISIN XS1183245106) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS1183245957) affirmed at 'AAAsf'; Outlook Stable
Class C (ISIN XS1183250361) upgraded to 'AAAsf' from 'AA+sf';
Outlook Stable
Class D (ISIN XS1183250874) upgraded to 'Asf' from 'BBB+sf';
Outlook Stable

PMF 15-2B
Class A (ISIN XS1117293875) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS1117293792) affirmed at 'AAAsf'; Outlook Stable
Class C (ISIN XS1117294253) upgraded to 'AAsf' from 'A+sf';
Outlook Stable
Class D (ISIN XS1117293958) affirmed at 'BBBsf'; Outlook Stable
Class E (ISIN XS1117293362) affirmed at 'BBsf'; Outlook Stable


TOYS R US: PPF Wants Directors Not to Appoint A&M as Adviser
------------------------------------------------------------
Molly Kissler at Bloomberg News, citing Sky, reports that the
Pension Protection Fund has written to the directors of Toys R US
UK to urge them not to appoint their existing adviser on its
restructuring to oversee any insolvency proceedings.

According to Bloomberg, PricewaterhouseCoopers is likely to be the
PPF's preferred choice as administrator PPF is "uncomfortable"
with Alvarez & Marsal handling the administration.

A spokesman for Alvarez & Marsal said in a statement issued to
Sky: "We understand that the PPF has written to the directors of
Toys R Us UK," and the firm is "aware of our professional
responsibilities", Bloomberg relates.

                        About Toys "R" Us

Toys "R" Us, Inc., is an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey,
in the New York City metropolitan area.  Merchandise is sold in
880 Toys "R" Us and Babies "R" Us stores in the United States,
Puerto Rico and Guam, and in more than 780 international stores
and more than 245 licensed stores in 37 countries and
jurisdictions.  Merchandise is also sold at e-commerce sites
including Toysrus.com and Babiesrus.com.

On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company.  Toys "R" Us is now a privately owned entity but still
files with the Securities and Exchange Commission as required by
its debt agreements.

The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders'
deficit of $1.319 billion as of April 29, 2017.

Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its
Canadian subsidiary voluntarily filed for relief under Chapter 11
of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No.
17-34665) on Sept. 19, 2017.  In addition, the Company's Canadian
subsidiary voluntarily commenced parallel proceedings under the
Companies' Creditors Arrangement Act ("CCAA") in Canada in the
Ontario Superior Court of Justice.  The Company's operations
outside of the U.S. and Canada, including its 255 licensed stores
and joint venture partnership in Asia, which are separate
entities, are not part of the Chapter 11 filing and CCAA
proceedings.

Grant Thornton is the monitor appointed in the CCAA case.

Judge Keith L. Phillips presides over the Chapter 11 cases.

In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland &
Ellis International LLP serve as the Debtors' legal counsel.
Kutak Rock LLP serves as co-counsel.  Toys "R" Us employed
Alvarez & Marsal North America, LLC as its restructuring advisor;
and Lazard Freres & Co. LLC as its investment banker.  It hired
Prime Clerk LLC as claims and noticing agent.  A&G Realty
Partners, LLC, serves as its real estate advisor.

On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an
official committee of unsecured creditors.  The Committee
retained Kramer Levin Naftalis & Frankel LLP as its legal
counsel; Wolcott Rivers, P.C. as local counsel; FTI Consulting,
Inc. as financial advisor; and Moelis & Company LLC as investment
banker.



                            *********

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 2018.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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