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

                           E U R O P E

         Wednesday, February 28, 2018, Vol. 19, No. 042


                            Headlines


B E L G I U M

SARENS BESTUUR: S&P Cuts CCR to 'B+' on Pressured Profitability


C Z E C H   R E P U B L I C

KRALOVOPOLSKA RIA: Wants Deadline to Present Rescue Plan Extended


G E R M A N Y

PHOENIX SOLAR: Munich Court Commences Insolvency Proceedings


G R E E C E

ATHENS CITY: Moody's Hikes Issuer Rating to B3, Outlook Positive
HELLENIC TELECOMS: Moody's Raises CFR to B1, Outlook Positive


I R E L A N D

GOLDENTREE LOAN 1: Moody's Assigns (P)B2 Rating to Cl. F Notes
GOLDENTREE LOAN 1: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'


I T A L Y

AC MILAN: Future at Risk Due to Bankruptcy of Owners' Company
BERICA 6: Moody's Affirms B2(sf) Rating on Class D Notes


L A T V I A

ABLV BANK: Shareholders Opt for Liquidation to Protect Clients


L U X E M B O U R G

SAPHILUX SARL: Moody's Assigns B3 CFR, Outlook Stable


N E T H E R L A N D S

THOHR II: S&P Assigns 'B+' Issuer Credit Rating, Outlook Stable


R U S S I A

* Russian RMBS 60+-Day Delinquencies Drop in 6Mos Ended Nov 2017


T A J I K I S T A N

TAJIKISTAN: S&P Affirms 'B-/B' SCRs, Outlook Remains Stable


T U R K E Y

TURKEY: S&P Affirms Unsolicited 'BB/B' Foreign Currency SCRs


U N I T E D   K I N G D O M

EXTERION MEDIA: S&P Cuts CCR to 'CCC+' on Tight Covenant Headroom
GALAXY BIDCO: Moody's Rates New GBP175MM Sr. Secured Notes B2
LAGAN CONSTRUCTION: Administration Impacts University Project
PETRA DIAMONDS: Moody's Confirms B2 CFR & Alters Outlook to Neg.
TOYS R US: U.K. Unit Likely to Enter Into Administration Today


                            *********



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B E L G I U M
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SARENS BESTUUR: S&P Cuts CCR to 'B+' on Pressured Profitability
---------------------------------------------------------------
Belgium-based heavy crane rental provider Sarens Bestuur N.V.
(Sarens) continues to experience challenging conditions in some of
its end markets, coupled with higher-than-expected subcontracting
costs.

S&P Global Ratings lowered its long-term issuer credit ratings on
Belgium-based heavy crane rental provider Sarens Bestuur N.V.
(Sarens) and finance subsidiary Sarens Finance Co. N.V. to 'B+'
from 'BB-'. The outlook is negative.

S&P said, "At the same time, we affirmed our issue rating on the
group's EUR250 million senior unsecured debt issued by Sarens
Finance Co. N.V. at 'BB-'. Although we calculate recovery
prospects comfortably above 85%, we cap the recovery rating at
'2', reflecting the unsecured nature of the notes.

"The downgrade reflects our revised expectations for Sarens for
fiscal-year 2018. The group continues to experience challenging
conditions in some of its end markets, coupled with higher-than-
expected subcontracting costs. Pressure on profitability and a
sustained high level of investment capital expenditure (capex) are
weighing on the group's credit metrics and liquidity, and we also
note that Sarens has thin headroom on its interest coverage
covenant."

Sarens continues to build out the sizable contract with Chevron,
the TCO project, which will continue to ramp up through 2018 and
2019, resulting in good revenue growth. However, the contract is
very front-loaded in terms of the investment required to build out
Sarens' operations on the ground. Sarens started to ramp up capex
in the second half of 2016 and exhibited high investment through
fiscal 2017, and S&P expects the trend to continue through fiscal
2018, resulting in negative free operating cash flow to debt.
Capex should then return to historical levels from the start of
2019. This investment should be credit-positive in the longer run
as it enables Sarens to capture significant revenues as the TCO
contract continues to ramp up. However, the group needs to
carefully balance very high investment against the possibility of
stretching its balance sheet, credit metrics, and liquidity
position too far. Because Sarens exhibits credit metrics right at
the weaker end of the range for its financial risk profile, the
rating incorporates a negative comparable rating analysis
modifier.

Under the TCO agreement, Sarens is contracted to develop and
operate two transshipment bases, one in Finland and one in
Bulgaria, where cargo will be offloaded from ocean-going vessels
and reloaded onto smaller vessels for onward delivery into the
Caspian Sea. At the Kazakhstan building site, Sarens is contracted
to offload, store, stack, and transport the modules to their
installation points.

S&P said, "We continue to assess the group's business risk profile
as fair, although toward the weaker end of the category. The
increased exposure to large contracts (such as TCO) brings with it
increased client concentration risk. Sarens is a leading global
provider of large crane equipment, servicing a diverse range of
industries and clients. The group owns one of the world's most
extensive fleets of large cranes and has a strong track record and
reputation. We consider that there are high barriers to entry for
potential competitors in this niche market. Sarens is exposed to
several particularly cyclical and volatile end markets, which has
resulted in revenue contraction and absolute EBITDA declines in
the past when demand has suddenly fallen. The group's recent rapid
expansion into countries that we consider carry higher risk could
increase the volatility of demand in the future."

S&P's base case assumes:

-- Revenue growth of about 9% to more than EUR650 million in
    2018 and about 5% to more than EUR680 million in 2019.

-- EBITDA margin of about 20%-22% over the same period.

-- Capex of up to EUR110 million in fiscal 2018, gradually
    returning to historical levels from the start of 2019.

-- Gentle working-capital-related outflow as the business grows.

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

-- S&P Global Ratings-adjusted debt to EBITDA peaking at close
    to 5x in 2018 and improving toward 4.5x in 2019;

-- Funds from operations (FFO) to debt of about 13% in 2018 and
    15% in 2019; and

-- Free operating cash flow to debt of less than 5% over the
    same period.

S&P said, "We consider Sarens' operating cash flow to be
sufficient to cover debt service, working capital requirements,
and capital spending for maintenance. We consider management's
ability to pare back capex rapidly when demand slows as an
important factor for the rating. We note that the average economic
life of Sarens' crane fleet is about 15 years.

"In terms of its capital structure, Sarens has a well-balanced and
relatively long-dated debt maturity profile. We assess Sarens'
risk-management policies as adequate. The group generates a large
portion of its revenues in foreign currencies, and hedges its cash
flows to protect against foreign-exchange risk. The group's
financial obligations are mainly euro-denominated. As a majority
family-owned group, we consider Sarens' access to equity markets
to be restricted.

"The negative outlook reflects our view of the possibility that
Sarens could underperform our base case in 2018, which could
result in leverage trending higher and liquidity and covenants
becoming pressured.

"We could lower the ratings if Sarens were to underperform our
base case in 2018, and if profitability or liquidity were to
weaken beyond our current expectations. More specifically, if we
anticipated that debt to EBITDA were to weaken to more than 5x for
fiscal 2018 without the likelihood of a swift improvement, then we
could lower the rating to 'B'. Finally, if liquidity were to
weaken or headroom under covenants were to become tighter, then we
could lower the ratings.

"We could revise the outlook to stable if Sarens were to
overachieve our base case and deleverage to less than 4.5x on a
sustained basis, and we believe that near-to-medium term
macroeconomic and industry conditions would support such a
recovery. Such a revision would also depend on Sarens exhibiting
at least adequate liquidity and headroom under its covenants."



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


KRALOVOPOLSKA RIA: Wants Deadline to Present Rescue Plan Extended
-----------------------------------------------------------------
CTK News reports that Kralovopolska RIA, an engineering company
which has been declared insolvent in December, has asked the Brno
Regional Court to postpone the date of presenting its
reorganization plan to the end of April.

According to CTK, Ctirad Necas, company head and board chairman,
said Kralovopolska RIA is waiting for an expert opinion on the
company's bankruptcy estate.




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G E R M A N Y
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PHOENIX SOLAR: Munich Court Commences Insolvency Proceedings
------------------------------------------------------------
The local court of Munich has opened insolvency proceedings on the
assets of Phoenix Solar AG.

Dr. Michael Jaffe has been appointed as insolvency administrator.

Phoenix Solar AG is a Germany-based photovoltaic systems
integrator.



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G R E E C E
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ATHENS CITY: Moody's Hikes Issuer Rating to B3, Outlook Positive
----------------------------------------------------------------
Moody's Public Sector Europe ("MPSE") has upgraded the City of
Athens' issuer rating to B3 from Caa2. The outlook remains
positive.

This rating action follows Moody's decision to upgrade the Greek
government bond rating to B3 from Caa2 on February 21, 2018.

RATINGS RATIONALE

The rating action on the City of Athens reflects Moody's
assessment of the improvement in the operating environment for
Greek sub-sovereigns, as captured in the rating action on the
sovereign bond rating. The sovereign rating upgrade indicates a
reduction in the systemic risk to which the City of Athens is
exposed given its close operational and financial linkages with
the Greek government. In addition, the institutional linkages
intensify the close ties between the two levels of government
through the sovereign's ability to change the institutional
framework under which Greek municipalities operate.

Moody's expects Athens to benefit from many of the conditions that
factor into the improvement seen at the sovereign level, given its
key role as the country's economic and financial hub. Moody's
expects the city's revenue to benefit from the strengthened
macroeconomic conditions as around 37% of the city's operating
revenues are comprised of taxes and tariffs that are highly
sensitive to the local economic conditions. Also, the improved
sovereign fiscal position should translate to greater
predictability of government transfers to Athens, which account
for an additional 38% of Athens' operating revenue, thus easing
pressure on fiscal consolidation.

The City of Athens' self-imposed fiscal discipline and controlled
spending was key for the city to achieve the positive performance
over the past six years, despite the challenging economic
environment in Greece. Continued successful management of its
financial resources are expected to lead the city to post another
double-digit operating surplus of about 12-13% of operating
revenue in 2017 after achieving a historical high operating
surplus of 13% in 2016. Moody's expects the city's operating
performance to remain solid in 2018, reflecting the improvement in
the operating environment for Greek local governments. The city's
positive operating margin combined with the prudent approach to
capital expenditures should have led to a consecutive financing
surplus in the upper single-digits in 2017.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook on the rating reflects the positive outlook
on the sovereign rating. It also takes into account Moody's
expectations of continued solid financial performances of the City
of Athens, its improving and adequate liquidity position, and
moderate and manageable debt burden.

Moody's notes that the city has satisfactorily managed its cash
flow and gradually reduced its debt burden over the past few
years. As the city remained committed not to borrow in 2017, its
debt stock should have amounted to EUR98 million as of year-end,
representing 27% of its projected operating revenue, down from 30%
in 2016. Moody's expects Athens' debt to gradually increase from
2018 onwards following the commencement of the city's investment
programme (ITI Plan) as part of the 2016-2020 Sustainable
Development Strategy. However, the city's debt-to-operating ratio
should not exceed 32%, a level which Moody's considers as moderate
and manageable for the city. Athens' debt service is in check,
representing 5.4% of total revenue projected in 2017, up from 4.3%
in 2016 and will remain at around 5% in 2018-19 supported by the
favorable amortizing debt structure.

The growing financial surpluses have increased Athens' cash
reserves projected at EUR73 million at year-end 2017, representing
21% of estimated operating expenditure in 2017 compared with 19%
in 2016, which provides a comfortable financial cushion against
potential budgetary pressures and in support of capex funding in
the medium-term.

WHAT COULD MOVE THE RATING UP/DOWN

An upgrade of Athens' rating would require a similar change in
Greece's sovereign rating associated with a continuation of solid
budgetary performance, adequate liquidity position and moderate
debt levels.

Although unlikely given the positive outlook on the sovereign, a
deterioration of the sovereign credit strength would apply
downward pressure on Athens' rating given the close financial and
operational linkages between the two. Fiscal slippage or the
emergence of significant liquidity risks would also exert downward
pressure on the rating.

The sovereign action required the publication of this credit
rating action on a date that deviates from the previously
scheduled release date in the sovereign release calendar,
published on www.moodys.com.

The specific economic indicators, as required by EU regulation,
are not available for the City of Athens. The following national
economic indicators are relevant to the sovereign rating, which
was used as an input to this credit rating action.

Sovereign Issuer: Greece, Government of

GDP per capita (PPP basis, US$): 26,829 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -0.2% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 0% (2016 Actual)

Gen. Gov. Financial Balance/GDP: 0.5% (2016 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -1.1% (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.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On February 21, 2018, a rating committee was called to discuss the
rating of the City of Athens. The main points raised during the
discussion were: The systemic risk in which the issuer operates
has materially decreased.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.

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


HELLENIC TELECOMS: Moody's Raises CFR to B1, Outlook Positive
-------------------------------------------------------------
Moody's Investors Service has upgraded to B1 from B3 the corporate
family rating (CFR) of Greece's leading telecommunications
provider Hellenic Telecommunications Organization S.A. (OTE) and
to B1-PD from B3-PD its probability of default rating (PDR).
Concurrently, Moody's upgraded to (P)B1 from (P)B3 the senior
unsecured rating of the global medium-term note program (GMTN) and
to B1 from B3 the rating on the senior unsecured global bonds
issued by OTE PLC (OTE's fully and unconditionally guaranteed
subsidiary). The outlook on the ratings remains positive.

"The upgrade primarily reflects the recent improvement in the
Greek sovereign's credit profile and the improved outlook for
economic recovery, a positive for OTE which generates a large
portion of its revenues domestically. It also factors in the
company's strong standalone credit profile, proven financial
resilience and Moody's expectations that its operating performance
will continue to improve despite recent changes to its dividend
policy," says Carlos Winzer, a Moody's Senior Vice President and
lead analyst for OTE.

The rating action follows Moody's decision on 21 February to
upgrade the Government of Greece's bond ratings to B3 (positive
outlook) from Caa2.

RATINGS RATIONALE

The rating action follows the improvement of Greece's credit
profile as reflected in Moody's decision to upgrade Greece's
sovereign rating to B3 from Caa2. Greece has achieved material
fiscal and institutional improvements under its current adjustment
programme. Those improvements should in turn help support the
recovery of the economy and benefit domestic corporates such as
OTE. In addition the risk of another sovereign default or debt
restructuring is materially lower now.

OTE has demonstrated a superior degree of resilience to the
macroeconomic challenges suffered by Greece over the past few
years, and has significantly strengthened its balance sheet. OTE's
leverage, as measured by its Debt/EBITDA ratio (as adjusted by
Moody's) has reduced to 2.1x as of year ended 2017 (Moody's
forecast) compared with 3.5x in 2012. Moody's expects OTE's credit
profile to further improve with the repayment of the EUR600
million bond that matured in February 2018 with cash on balance
sheet, which will reduce leverage to around 1.5x by year-end 2018.
However, further improvements beyond this level will be limited,
as the company's new shareholder remuneration policy intends to
distribute 100% of free cash flow generation, through a mix of
ordinary dividends and share buybacks.

OTE's ratings have long been constrained relative to their
notional standalone credit quality. Previously, with Greece at
Caa2 and the country ceiling at B3, the ceiling formed an absolute
constraint so OTE's ratings were capped at B3. With Greece now
having been upgraded to B3 and the ceiling raised to Ba2, the gap
between the sovereign rating and the ceiling has widened such that
the ceiling is no longer the primary constraint.

Now OTE's ratings are constrained by the domestic nature of the
majority of their business, which is addressed through Moody's
methodology on "How Sovereign Credit Quality Can Affect Other
Ratings". Because OTE's reliance on domestic revenue sources is
significant, the company would be exposed to a loss of revenue or
profitability or to increased funding pressures as a consequence
of the macroeconomic and financial disruption that can accompany a
reduction in sovereign creditworthiness.

Since OTE's business is predominantly domestic, that would
normally suggest a rating no more than one notch above the
sovereign even if standalone credit quality appears much stronger.
However, the methodology provides for additional flexibility when
the sovereign is lowly rated as at present. OTE is therefore now
rated two notches above Greece.

At B1, OTE's CFR reflects (1) the fact that approximately 87% of
its EBITDA and 73% of its revenues are generated in Greece; (2)
Moody's expectation that OTE will maintain a comfortable cash
balance to meet upcoming debt maturities; (3) the fact that a non-
Greek financial subsidiary (OTE PLC, which is domiciled in the UK
and is subject to English law) issues its bonds which currently
constitute the main part of its debt; and (4) the implicit support
it receives from its major shareholder, Deutsche Telekom AG (Baa1
stable).

RATIONALE FOR POSITIVE OUTLOOK

OTE's positive rating outlook is in line with the rating outlook
on Greece.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Any potential positive rating development would require an upgrade
of the Greek Sovereign rating, a more substantial dissociation of
the company's business and financial prospects from those of the
Greek economy, and/or more explicit support from Deutsche Telekom
AG.

A rating downgrade could occur if (1) Moody's were to downgrade
Greece's government bond rating; (2) conditions in the domestic
environment were to deteriorate as a result of a weakening of
Greece's credit profile; and/or (3) unexpected pressures on OTE's
liquidity were to emerge, particularly as a result of a failure by
the company to maintain comfortable cash balances.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Hellenic Telecommunications Organization S.A.

-- Corporate Family Rating, Upgraded to B1 from B3

-- Probability of Default Rating, Upgraded to B1-PD from B3-PD

Issuer: OTE PLC

-- BACKED Senior Unsecured Medium-Term Note Program, Upgraded to
    (P)B1 from (P)B3

-- BACKED Senior Unsecured Regular Bond/Debenture, Upgraded to
    B1 from B3

Outlook Actions:

Issuer: Hellenic Telecommunications Organization S.A.

-- Outlook, Remains Positive

Issuer: OTE PLC

-- Outlook, Remains Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

Headquartered in Athens, Hellenic Telecommunications Organization
S.A. (OTE) is the leading telecommunications operator in Greece,
servicing 2.6 million retail fixed access lines, 1.8 million
retail fixed-line broadband connections, 0.5 million TV
subscribers and 8.0 million mobile customers as of December 2017.
In addition to the operations in its domestic market, OTE also
operates in Romania and Albania. The company's revenue and EBITDA
for the 2017 amounted to EUR3.9 billion and EUR1.3 billion,
respectively.

OTE's major shareholder is Deutsche Telekom, with an equity stake
of 40% and right of first refusal over the 6% government holding
(out of which the Hellenic Republic holds 1% and the Hellenic
Republic Asset Development Fund holds 5%). The company is fully
consolidated in Deutsche Telekom's accounts, given the parent has
management control.



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I R E L A N D
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GOLDENTREE LOAN 1: Moody's Assigns (P)B2 Rating to Cl. F Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by GoldenTree
Loan Management EUR CLO 1 Designated Activity Company:

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

-- EUR162,000,000 Class A-1A Senior Secured Floating Rate Notes
    due 2030, Assigned (P)Aaa (sf)

-- EUR49,000,000 Class A-1B Senior Secured Floating Rate Notes
    due 2030, Assigned (P)Aaa (sf)

-- EUR30,000,000 Class A-2 Senior Secured Fixed Rate Notes due
    2030, Assigned (P)Aaa (sf)

-- EUR26,000,000 Class B-1A Senior Secured Floating Rate Notes
    due 2030, Assigned (P)Aa2 (sf)

-- EUR14,000,000 Class B-1B Senior Secured Floating Rate Notes
    due 2030, Assigned (P)Aa2 (sf)

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

-- EUR11,500,000 Class C-1B Senior Secured Deferrable Floating
    Rate Notes due 2030, Assigned (P)A2 (sf)

-- EUR25,000,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Baa2 (sf)

-- EUR27,500,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)Ba2 (sf)

-- EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
    Notes due 2030, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 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, GoldenTree Asset
Management LP has sufficient experience and operational capacity
and is capable of managing this CLO.

GoldenTree Loan Management EUR CLO 1 DAC 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 senior loans, second-lien loans, mezzanine
obligations and high yield bonds. The portfolio is expected to be
at least 87% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

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

In addition to the eleven classes of notes rated by Moody's, the
Issuer will issue EUR31.75M 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.

Methodology Underlying the Rating Action:

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

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

The 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. GoldenTree Asset Management LP investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

Moody's modelled 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.

Par amount: EUR400,000,000

Diversity Score: 37

Weighted Average Rating Factor (WARF): 2700

Weighted Average Spread (WAS): 3.35%

Weighted Average Coupon (WAC): 3.50%

Weighted Average Recovery Rate (WARR): 40.5%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3105 from 2700)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

Class A-2 Senior Secured Fixed Rate Notes: -1

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

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

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

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

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3510 from 2700)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

Class A-2 Senior Secured Fixed Rate Notes: -1

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

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

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

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

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -4


GOLDENTREE LOAN 1: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'
----------------------------------------------------------------
Fitch Ratings has assigned GoldenTree Loan Management EUR CLO 1
DAC notes expected ratings, as follows:

EUR2 million Class X notes: 'AAA(EXP)sf'; Outlook Stable
EUR162 million Class A-1A notes: 'AAA(EXP)sf'; Outlook Stable
EUR49 million Class A-1B notes: 'AAA(EXP)sf'; Outlook Stable
EUR30 million Class A-2 notes: 'AAA(EXP)sf'; Outlook Stable
EUR26 million Class B-1 notes: 'AA(EXP)sf'; Outlook Stable
EUR14 million Class B-2 notes: 'AA(EXP)sf'; Outlook Stable
EUR14 million Class C-1 notes: 'A(EXP)sf'; Outlook Stable
EUR11.5 million Class C-2 notes: 'A(EXP)sf'; Outlook Stable
EUR25 million Class D notes: 'BBB-(EXP)sf'; Outlook Stable
EUR27.5 million Class E notes: 'BB-(EXP)sf'; Outlook Stable
EUR12 million Class F notes: 'B-(EXP)sf'; Outlook Stable
EUR31.75 million subordinated notes: not rated

The assignment of final ratings is contingent on the receipt of
final documents conforming to information already reviewed.

GoldenTree Loan Management EUR CLO 1 DAC is a cash flow
collateralised loan obligation (CLO). Net proceeds from the issue
of the notes will be used to purchase a EUR400 million portfolio
of mostly European leveraged loans and bonds. The portfolio will
be actively managed by GoldenTree Loan Management, LP. The CLO
envisages a four-year reinvestment period and an 8.5-year weighted
average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality
Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
current portfolio is 32.9.

High Recovery Expectations
At least 90% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
current portfolio is 65%.

Limited Interest Rate Exposure
Fixed-rate liabilities represent 7.5% of the target par, while
fixed-rate assets can represent up to 10% of the portfolio. Fitch
modelled both 0% and 10% fixed-rate buckets and found that the
rated notes can withstand the interest rate mismatch associated
with each scenario.

Diversified Asset Portfolio
The covenanted maximum exposure to the top 10 obligors is 22% of
the portfolio balance. This covenant ensures that the asset
portfolio will not be exposed to excessive obligor concentration.

VARIATIONS FROM CRITERIA

The "Fitch Rating" definition was amended so that assets that are
not expected to be rated by Fitch, but that are rated privately by
other rating agencies rating the liabilities, can be assumed to be
of 'B-' credit quality for up to 10% of the collateral principal
amount. This is a variation from Fitch's criteria, which require
all assets unrated by Fitch and without public ratings to be
treated as 'CCC'. The change was motivated by Fitch's policy
change of no longer providing credit opinions for EMEA companies
over a certain size. Instead Fitch expects to provide private
ratings that would remove the need for the manager to treat assets
under this leg of the "Fitch Rating" definition.

The amendment has had only a small impact on the ratings. Fitch
has modelled the transaction at the pricing point with 10% of the
'B-' assets with a 'CCC' rating instead, which resulted in a two-
notch downgrade at the 'A' and 'B-' rating levels and a one-notch
downgrade at other rating levels.

RATING SENSITIVITIES

A 125% default multiplier applied to the portfolio's mean default
rate, and with this increase added to all rating default levels,
would lead to a downgrade of up to two notches for the rated
notes. A 25% reduction in recovery rates would lead to a downgrade
of up to four notches for the rated notes.

Class G mortgage-backed floating-rate notes: 'BB+(EXP)sf'; Outlook
Stable



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


AC MILAN: Future at Risk Due to Bankruptcy of Owners' Company
-------------------------------------------------------------
Daily News Egypt reports that AC Milan is in an unenviable
situation due to financial problems surrounding the club's owner,
Chinese businessperson Li Yonghong, who has declared the
bankruptcy of one of his biggest companies in China.

According to Daily News Egypt, Italy's Corriere dello Sport
newspaper confirmed that the packaging company owned by the
Chinese businessperson has been offered for sale because of its
debts, putting the Milan team in a difficult situation in the
foreseeable future because of UEFA's demand for Rossoneri
officials to provide explanations for the club's contractings last
summer.

AC Milan's administration is planning to enter into negotiations
with Gennaro Gattuso in mid-March in order to discuss the details
of a new agreement, Daily News Egypt relays, citing Italian
newspaper La Repubblica.

AC Milan is a professional football club in Milan, Italy, founded
in 1899.


BERICA 6: Moody's Affirms B2(sf) Rating on Class D Notes
--------------------------------------------------------
Moody's Investors Service has upgraded the ratings of 3 notes in 2
Italian RMBS deals, Capital Mortgage S.r.l. (BIPCA Cordusio RMBS)
and Apulia Finance N. 4 S.r.l., reflecting the increased levels of
credit enhancement for the affected notes and better than expected
collateral performance. Moody's affirmed the ratings of 10 notes,
in these two transactions and in Berica 6 Residential MBS S.r.l.,
that had sufficient credit enhancement to maintain their current
rating.

Issuer: Capital Mortgage S.r.l. (BIPCA Cordusio RMBS)

-- EUR666.3M Class A1 Notes, Affirmed Aa2 (sf); previously on
    Dec 16, 2015 Affirmed Aa2 (sf)

-- EUR185.5M Class A2 Notes, Affirmed Aa2 (sf); previously on
    Dec 16, 2015 Affirmed Aa2 (sf)

-- EUR61.8M Class B Notes, Upgraded to Aa2 (sf); previously on
    Dec 16, 2015 Downgraded to Aa3 (sf)

-- EUR14.3M Class C Notes, Upgraded to A1 (sf); previously on
    Dec 16, 2015 Affirmed A2 (sf)

-- EUR18M Class D Notes, Affirmed A3 (sf); previously on Jul 27,
    2017 Upgraded to A3 (sf)

-- EUR5.5M Class E Notes, Affirmed Baa3 (sf); previously on Dec
    16, 2015 Affirmed Baa3 (sf)

Issuer: Apulia Finance N. 4 S.r.l.

-- EUR346.9M Class A Notes, Affirmed Aa2 (sf); previously on Nov
    27, 2015 Affirmed Aa2 (sf)

-- EUR11.3M Class B Notes, Affirmed Aa2 (sf); previously on Nov
    27, 2015 Affirmed Aa2 (sf)

-- EUR19.1M Class C Notes, Upgraded to A1 (sf); previously on
    Jul 27, 2017 Upgraded to Baa1 (sf)

Issuer: Berica 6 Residential MBS S.r.l.

-- EUR1185M Class A2 Notes, Affirmed Aa3 (sf); previously on Jul
    27, 2017 Upgraded to Aa3 (sf)

-- EUR42.8M Class B Notes, Affirmed Baa1 (sf); previously on May
    22, 2017 Upgraded to Baa1 (sf)

-- EUR28.6M Class C Notes, Affirmed Baa1 (sf); previously on May
    22, 2017 Upgraded to Baa1 (sf)

-- EUR8.6M Class D Notes, Affirmed B2 (sf); previously on May
    22, 2017 Upgraded to B2 (sf)

RATINGS RATIONALE

The upgrade actions are prompted by:

- In the case of Capital Mortgage S.r.l. (BIPCA Cordusio RMBS),
increase in credit enhancement for the affected notes.

- In the case of Apulia Finance N. 4 S.r.l., increase in credit
enhancement for the affected notes and better than expected
performance.

- All rated notes in Berica 6 Residential MBS S.r.l. had
sufficient credit enhancement to maintain their current ratings.

These are three seasoned transactions, issued in 2006 and 2007.
The current pool factors are relatively low in Capital Mortgage
S.r.l. (BIPCA Cordusio RMBS) (34.6%), Berica 6 Residential MBS
S.r.l. (20.6%) and Apulia Finance N. 4 S.r.l. (17.9%).

Increase in Available Credit Enhancement:

Sequential amortization, non-amortising reserve fund in Capital
Mortgage S.r.l. (BIPCA Cordusio RMBS), or trapping of excess
spread led to the increase in the credit enhancement available in
these transactions.

The credit enhancement for the most senior note affected by rating
action in Capital Mortgage S.r.l. (BIPCA Cordusio RMBS) increased
from 10.1% in December 2015, to 14.5% in December 2017. The credit
enhancement for the most senior note affected by rating action in
Apulia Finance N. 4 S.r.l. increased from 21.1% in July 2017, to
23.5% in January 2018. The credit enhancement for the most senior
note affirmed in Berica 6 Residential MBS S.r.l. increased from
33.7% in July 2017, to 35.0% in January 2018, although in this
case the transaction is amortising pro-rata.

Compared to one year ago, the cumulative defaults as percentage
over original balance have increased to 8.67% from 8.48% in Apulia
Finance N. 4 S.r.l., to 6.99% from 6.75% in Capital Mortgage
S.r.l. (BIPCA Cordusio RMBS). The main deterioration is observed
in Berica 6 Residential MBS S.r.l., to 10.93% from 10.60%, and
additionally, the level of loans more than 30 days in arrears
increased from approximately 4% in October 2017 to 9.1% of
outstanding portfolio amount in January 2018.

Moody's has reassessed its lifetime loss expectation for Apulia
Finance N. 4 S.r.l. taking into account the transaction's
underlying collateral performance to date. The Expected Loss
assumption as a percentage over original balance has been
decreased to 5.5% from 5.6% due to a better than expected
performance of the underlying assets.

Moody's has reassessed its lifetime loss expectation for Capital
Mortgage S.r.l. (BIPCA Cordusio RMBS) taking into account the
transaction's underlying collateral performance to date. The
Expected Loss assumption as a percentage over original balance has
been increased to 5.1% from 4.9% due to a worse than expected
performance of the underlying assets.

Moody's has reassessed its lifetime loss expectation for Berica 6
Residential MBS S.r.l. taking into account the transaction's
underlying collateral performance to date. The Expected Loss
assumption as a percentage over original balance has been
increased to 7.1% from 6.9% due to a worse than expected
performance of the underlying assets.

MILAN CE assumptions remain unchanged for the three transactions.

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

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

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

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

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



===========
L A T V I A
===========


ABLV BANK: Shareholders Opt for Liquidation to Protect Clients
--------------------------------------------------------------
Xinhua reports that shareholders of Latvia's troubled ABLV Bank,
which U.S. authorities accused of involvement in money laundering
and bribery, decided on Feb. 26 to wind up the bank in order to
better protect the interests of the bank's clients and creditors.

"The bank is in a great financial shape, so we need to take care
of each client and protection of their rights," Xinhua quotes ABLV
Bank's co-owner and CEO Ernests Bernis as saying after the
decision was made at a meeting on Feb. 26.

"Taking into account previous insolvency and liquidation processes
that have taken place in Latvia, we believe that this is the best
possible decision that could be taken after the European Central
Bank's (ECB) announcement on the start of the wind-up process."

On Feb. 23, ECB decided against rescuing ABLV Bank and told it to
wind up in line with Latvian laws, Xinhua discloses.

In a report released on Feb. 13, the U.S. Department of the
Treasury's Financial Crimes Enforcement Network said that the ABLV
management "used bribery to influence Latvian officials when
challenging enforcement actions and perceived threats to their
high-risk business", Xinhua relates.

According to Xinhua, it also proposed sanctioning ABLV for its
money laundering schemes by banning the bank from opening or
maintaining correspondent accounts in the United States or fully
blocking the bank from the U.S. financial system.



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


SAPHILUX SARL: Moody's Assigns B3 CFR, Outlook Stable
-----------------------------------------------------
Moody's Investors Service has assigned a B3 Corporate Family
rating (CFR) and B2-PD Probability of Default Rating (PDR) to
Saphilux S.a.r.l. Concurrently, Moody's has assigned B2 instrument
ratings to the EUR484 million senior secured term loan B, EUR30
million senior secured acquisition facility, and EUR50 million
senior secured revolving credit facility. The outlook for the
ratings is stable.

Saphilux S.a.r.l. is the holding company of SGG - a leading
provider of Trust and Corporate Services (T&CS) based in
Luxembourg - and the topco entity of the new restricted group.
This is the first time that Moody's has assigned ratings to SGG.

On December 20, 2017, SGG announced the acquisition of First Names
Group ("FNG"). The combined Group will have FY17PF revenue and
EBITDA of c. EUR251 million and c. EUR91 million (including cost
synergies) respectively (c. 37% margin), making it the No.4 player
in the global T&CS market by revenue. The transaction is expected
to close in June 2018.

Pro forma for the announced new capital structure and based on
expected results for FY2017, Moody's adjusted gross leverage is
approximately 8.3x, owing in part to a shareholder loan which
accounts for 1.8x. Moody's expects a slight decrease in leverage
in the next 12-18 months due to the effect of 2017 acquisitions,
however in light of a strategy likely to lead to further
acquisitions as well as the rolling up of PIK interest on the
shareholder loan, only modest deleveraging is expected going
forward. Interest coverage (Moody's adjusted EBITDA/interest
expense) is currently c.2.4x (3.5x excluding the PIK interest).

RATINGS RATIONALE

The B3 CFR reflects SGG's (i) high financial leverage starting at
around 8.3x, although c. 1.8x is represented by the subordinated
shareholder loan which does not comply with Moody's requirements
for equity treatment; (ii) recent and rapid acquisition growth
with limited track record for the combined group; (iii) regulatory
and legal risks given the business model, and; (iv) geographic
concentration in Europe.

More positively the rating reflects SGG's: (i) resilient business
in a fragmented market; although the historical financial
performance of SGG is heavily influenced by rapid growth from
acquisitions, the sector appears to be relatively stable through
the cycle; (ii) well diversified customer base with long-standing
relationships; (iii) strong cash conversion due to high margins
and low capex, and; (iv) positive market outlook underpinned by
consolidation and a flight to quality.

Liquidity Profile

Moody's consider SGG's liquidity to be good, based on (i) strong
operating cash flow which covers all planned needs including
extraordinary capex; (ii) EUR10 million beginning cash balance;
(iii) EUR50 million 6-year RCF with a springing covenant unlikely
to be breached, EUR30 million 7-year acquisition facility
available to be drawn down for one year only, and; (iv) no debt
maturities until 2024.

Structural Considerations

SGG's capital structure comprises a EUR484 million 1st Lien term
loan which ranks pari passu with a EUR50 million revolver and
EUR30 million acquisition facility (all rated B2), a EUR85 million
2nd Lien term loan (unrated) and EUR173 million subordinated
shareholder loan (including capitalized interest) which Moody's
have considered debt because it does not comply with the
requirements for equity treatment under Moody's hybrid
methodology.

Using Moody's Loss Given Default (LGD) methodology, the PDR is one
notch above the CFR. This is based on a 35% recovery rate,
reflecting the combination of weak financial covenants and the
presence of a deeply subordinated debt, which does not pay cash
interest. The senior term loan, acquisition facility and RCF rank
pari passu and carry the same B2 rating, one notch above the CFR,
reflecting their priority relative to the 2nd lien and shareholder
loans.

Rating outlook

The stable outlook reflects Moody's expectation that EBITDA and
cash flow generation will remain stable and that leverage will
remain relatively high with some reduction due to acquisition
synergies. It also assumes no substantial adverse effects due to
regulation, litigation or tax and no material debt-funded
acquisitions or shareholder distributions.

WHAT COULD CHANGE THE RATING UP/DOWN

Whilst unlikely in the near term, upward pressure on the rating
could occur over time if the company achieved a reduction in
Moody's adjusted leverage towards 6.0x on a sustainable basis
whilst maintaining a solid liquidity profile.

Downward pressure in the rating could occur if (1) the conditions
for a stable outlook were not maintained; (2) adjusted leverage
was maintained at or above 8x on a sustained basis; or if (3)
liquidity deteriorated.

PRINCIPAL METHODOLOGY

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

CORPORATE PROFILE

SGG is one of the largest independent fund and corporate services
providers globally. Headquartered in Luxembourg, it has also
developed a strong market presence in the Netherlands, Mauritius,
France, Curaáao, Belgium, Singapore and Hong Kong. SGG provides a
comprehensive range of value-added services and tailored solutions
for funds, corporates and private clients with pro forma combined
revenues of EUR251m in 2017. The addition of FNG with a strong
presence in the crown dependencies and a presence in Ireland,
Cyprus and Asia will give the group a more balanced portfolio of
services and increased geographic diversification and scale.



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


THOHR II: S&P Assigns 'B+' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B+' long-term
issuer credit ratings to THOHR II N.V. (the holding company of
Belgium-based staffing group House of HR) and to The House of
Finance N.V. The outlook on both entities is stable.

S&P said, "At the same time, we assigned our 'B+' issue rating and
'4' recovery rating to The House of Finance's EUR600 million
senior secured term loan maturing in 2024 and EUR80 million senior
secured RCF maturing in 2024. The '4' recovery rating reflects our
expectation of average recovery prospects (30%-50%; rounded
estimate: 45%) in the event of a payment default."

The ratings are in line with the preliminary ratings S&P assigned
on Nov. 28, 2017.

House of HR has agreed to acquire Redmore Group B.V. (Proclus), a
Dutch company offering secondment of professionals and software-
led resources for IT implementation and tooling for a variety of
financial institutions. House of HR refinanced its outstanding
debt and the acquisition through the issuance of a EUR600 million
senior secured facility. As part of the transaction, the group
also arranged an EUR80 million RCF that was undrawn at closing.
Pro forma the recent acquisitions, S&P forecasts House of HR's
revenues at about EUR1.4 billion, with adjusted EBITDA at about
EUR150 million in 2017.

The rating reflects the group's moderate diversification across
several staffing segments, including specialist staffing, general
staffing, and engineering and consulting segments, as well as its
wide customer end-market diversity. S&P said, "We also believe
that market fundamentals for personnel service providers are sound
overall, with positive long-term prospects since companies are
increasingly looking to improve the flexibility of their cost
bases by using temporary staff in periods of increased demand. We
also think that House of HR's strategy of focusing on small and
midsize enterprises and favorable markets with high salaries and
high temporary staff penetration should help the group maintain
its operating margins. We forecast adjusted EBITDA margins of more
than 10% over 2017-2019, which compare favorably with those of
peers in the staffing sector. We also note that House of HR has no
meaningful individual customer concentration."

These strengths are somewhat mitigated by House of HR's operations
in the highly fragmented and competitive staffing markets in
Belgium, Germany, the Netherlands, and France. Staffing markets
are highly correlated with unemployment levels, and deteriorating
business confidence can lead to swift and significant declines of
revenues and operating profits, as experienced by House of HR in
economic downturns, when earnings declined as much as 50%. We also
believe that House of HR's general staffing operations in the
German market benefit from relatively low barriers to entry, and
the group lacks scale compared with some of its globally operating
general staffing peers, like Adecco and Manpower. The group had
expanded rapidly over recent years, both organically and through
acquisitions, and S&P believes risks related to recently acquired
entities remain.

S&P said, "We consider House of HR to be owned by a financial
sponsor, since funds operated by Naxicap own 64% after the
transaction, with the group's founder and management holding the
remainder of shares. We view House of HR's financial risk profile
as aggressive, reflecting the relatively high debt burden, with
debt to EBITDA at about 4.8x at the transaction's close. We
understand that Naxicap does not intend to increase leverage
beyond 5.0x on a sustained basis and is looking to steadily
deleverage over the coming two years, which is why our financial
policy assessment is financial sponsor-5. In our base-case
scenario, we anticipate progressive deleveraging through continued
EBITDA growth, resulting in S&P Global Ratings-adjusted debt to
EBITDA of about 4.5x by the end of 2019, in the absence of any
additional significant debt-financed acquisition.

"We calculate the group's 2017 S&P Global Ratings-adjusted debt to
EBITDA to be about 4.8x pro forma recent acquisitions and the
close of the transaction. Our adjusted debt calculation includes
EUR600 million of term loans, an operating lease adjustment of
EUR75 million, and noncommon equity instruments of about EUR30
million that we treat as debt. In our EBITDA calculation, we
include reported EBITDA of about EUR130 million, lease rentals of
EUR15 million, and EUR5 million related to stock compensation
expenses.

"The financial risk profile is also supported by House of HR's
cash generation ability due to its relatively low capital
expenditure (capex) requirements of about 1% of sales, and
moderate working capital requirements. More specifically, we
anticipate reported free operating cash flow (FOCF) of EUR60
million-EUR70 million in 2018, gradually increasing in subsequent
years.

"The stable outlook reflects our view that House of HR will
maintain its organic growth over the next 12 months as it benefits
from fairly stable business conditions and continued outsourcing
of staffing services. It also incorporates our view that the group
will continue to successfully integrate recent acquisitions while
maintaining stable profitability, allowing it to reduce S&P Global
Ratings-adjusted debt to EBITDA to about 4.5x in 2019, while
maintaining FFO to debt above 12%. Additionally, it reflects our
expectation of a stable debt burden in the absence of large
shareholder returns and significant debt-financed acquisitions.

"We could consider a negative rating action if we saw signs of
weakening profitability or if revenues were to drop significantly
in the event of a macroeconomic downturn, resulting in leverage
significantly above 5.0x and FFO to debt of less than 10% for a
prolonged period. We could also take a negative rating action if
the group undertook significantly larger acquisitions or cash
returns than expected, leading to a significant weakening of
metrics that would likely make us reassess the group's financial
policy.

"In our opinion, the potential for an upgrade is likely to be
driven by a clear commitment to deleveraging for a sustained
period to significantly below 4.5x debt to EBITDA and FFO to debt
of higher than 16%, while maintaining consistent operating
performances with high and stable operating profitability."



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


* Russian RMBS 60+-Day Delinquencies Drop in 6Mos Ended Nov 2017
----------------------------------------------------------------
The performance of the Russian residential mortgage-backed
securities (RMBS) has improved in terms of delinquencies, as 60+
day delinquencies decreased during the six months ended November
2017, according to the latest Performance Update report published
by Moody's Investors Service.

The 60+ day delinquencies on rouble-denominated portfolios
decreased to 0.3% of the current portfolio balance in November
2017 from 0.4% in May 2017.

However, during the same period, the cumulative defaults increased
to 5.0% of the original portfolio balance in November 2017 from
4.4% in May 2017. The outstanding defaults increased to 1.8% of
the current portfolio balance in November 2017 from 1.5% in May
2017.

The constant prepayment rate on rouble-denominated portfolios
increased to 13.6% in November 2017 from 11.9% in May 2017. During
the same period, total redemption rate on rouble-denominated
portfolios increased to 21.9% from 20.6%.

As of November 2017, 31 rouble-denominated Russian RMBS
transactions rated by Moody's had an outstanding balance of
RUB127,620 million, representing an annual decrease of 32.5%.



===================
T A J I K I S T A N
===================


TAJIKISTAN: S&P Affirms 'B-/B' SCRs, Outlook Remains Stable
-----------------------------------------------------------
S&P expects Tajikistan's strong economic growth to continue in
2018-2021, primarily supported by public investments.

At the same time, S&P notes the country's economic base remains
narrow, with a high dependency on remittances from Russia and very
low GDP per capita.

S&P is affirming its 'B-/B' ratings.

The outlook is stable.

RATING ACTION

On Feb. 23, 2018, S&P Global Ratings affirmed its 'B-/B' long- and
short-term foreign and local currency sovereign credit ratings on
the Republic of Tajikistan. The outlook remains stable.

S&P also affirmed the 'B-' long-term issue rating on the senior
unsecured debt.

OUTLOOK

S&P said, "The stable outlook reflects our view that public
investments will continue to support Tajikistan's economic growth
and the government's net debt burden will remain modest.

"We could take a negative rating action in the next 12 months if
pressure on Tajikistan's debt profile were to increase, for
example as a result of widening general government deficits or
deeper currency devaluation. Downward pressure on the rating may
also build if remittances dropped and/or imports increased
sharply, leading to wider current account deficits (CADs) than we
currently anticipate.

"Conversely, we could consider an upgrade in the next 12 months if
we observed a significant improvement in Tajikistan's external
balances that would translate into considerably higher
international reserves. Stronger economic growth, resulting in
higher wealth levels as measured by GDP per capita, could
also result in a positive rating action."

RATIONALE

S&P said, "The ratings on Tajikistan are supported by our opinion
of its resilient growth prospects, underpinned by public
investments. We think these growth prospects will outlast the
series of large shocks the economy has suffered since 2013.

"The ratings are constrained by Tajikistan's narrow export base
(primarily cotton, processed alumina, and electricity) and its
weak external position due to a trade deficit and a remaining
reliance on workers' remittances, largely coming from the Russian
Federation. At $805, Tajikistan's per capita GDP is among the
lowest of all the sovereigns we rate."

Institutional and Economic Profile: Amid relative political
stability, per capita GDP remains low despite faster economic
growth

-- The decision-making process remains highly centralized, which
    reduces policymaking predictability.

-- Political stability has endured under the long-serving
    president.

-- Despite 7.1% real GDP growth in 2017, GDP per capita remains
    low due to population growth.

Tajikistan has been politically stable since the late 1990s, when
it ended a long civil war and recovered from a substantial
economic decline following the collapse of the Soviet Union. S&P
sees this stability as centered on President Emomali Rahmon, who
has ultimate decision-making power. President Rahmon is currently
serving his fourth consecutive term, which ends in 2020.

Decision-making remains highly centralized, which can reduce
policymaking predictability. The president's administration
controls strategic decisions and sets the policy agenda. S&P said,
"Given the centralized nature of political power in the country,
we view accountability and checks and balances as weak. We do not
currently see immediate risks to domestic political stability that
would undermine policy predictability." Relations with Russia are
constructive, the border with Afghanistan is secure, and trade and
financial links with China are increasing.

S&P said, "We project Tajikistan's GDP per capita will remain low,
at $900 on average in 2018-2021, down from $1,106 in 2014,
primarily reflecting the sharp depreciation in the local currency,
the Tajikistani somoni (TJS), in 2015. That said, we forecast real
GDP per capita growth to average a relatively high 4.7% in 2018-
2021, supported by high returns on basic infrastructure investment
in the country, owing to its lower level of absolute productivity,
alongside a stabilizing Russian economy, and a ramp-up in
investment from China."

Flexibility and Performance Profile: The current account deficit
is widening and debt will likely peak at end-2019.

-- S&P expects the current account deficit (CAD) to widen in
    2018-2021 due to increased imports related to the
    construction of the Rogun Hydropower Plant.

-- S&P now projects the fiscal deficit to average 4.0% of GDP in
    2018-2021 (compared with our previous expectations of 1.0%)
    due to overall high infrastructure spending needs, plus the
    Rogun launch.

-- S&P expects net general goverment debt to reach 44% of GDP at
    the end of 2019, which is still moderate by international
    standards.

S&P estimates current account receipts (CARs) fell by almost 64%
between 2013 and 2016, and S&P does not expect them to have
recovered to 2013 levels by 2021. The fall in Tajikistan's CARs
relates to a nearly 50% drop in remittances from Russia over the
same period (in U.S. dollar terms, although not in the amount of
rubles being remitted, owing to the depreciation of the ruble),
alongside a decline in key export prices. Remittances from Russia
accounted for 60% of Tajikistan's CARs in 2017. Russia is
Tajikistan's key trading partner and a source of more than 80% of
workers' remittances, which accounted for 35% of GDP in 2015 and
28% in 2016. These remittances support consumption, private
construction, and imports of goods and services.

The combination of rising aluminum prices and an only moderate
increase in imports in 2017 might help Tajikistan to post a
current account surplus by the end of 2017. S&P said, "We project
an increase in imports (mostly related to Rogun) and a subsequent
deterioration in the CAD between 2018-2021 to 5.6% of GDP, close
to the 2014-2016 average of 6%. After a $500 million Eurobond
placement in September 2017, usable reserves increased to four
months of current account payments (compare to two and a half
previously), which is the highest over the past several years. In
our base case we assume another $500 million bond issuance in 2019
and that the government will spend about $200 million annually on
the Rogunproject. Therefore usable reserves might decline to three
months of CARs by the end of 2021. We estimate Tajikistan's narrow
net external debt net of liquid assets to average 65.7% of CARs in
2018-2021, which is relatively high for a developing economy. At
the same time, we project gross external financing needs will
consistently exceed 100% of CARs plus usable reserves."

S&P said, "We believe that the CAD will be financed primarily by
foreign direct investment (FDI). In 2018-2021, net FDI should
average about 2% of GDP, given ongoing Chinese investments in a
broad array of products, including in materials, aluminum,
metallurgy, and retail. We assume Tajikistan will continue raising
debt with official lenders, particularly to finance infrastructure
needs, and also might consider another commercial borrowing for
the Rogun project. Our external analysis of Tajikistan is
complicated by gaps in reported external data (such as an
international investment position statement) and inconsistencies
between debt stocks and flows.

"We view positively that the National Bank of Tajikistan (NBT)
decreased the scale of interventions to support the local currency
in 2016-2017, accumulating some reserves while relaxing a number
of constraints on the foreign-exchange operations it had imposed
in 2015. During 2017 the somoni depreciated by another 12% against
the U.S. dollar (following 13% depreciation
in 2016).

"In 2017, consumer price inflation stood at 6.7% (compared with
6.1% in 2016) according to official statistics. Tajikistan's
economy is reliant on agriculture, mineral resources, remittances
from abroad, and key export prices. Given low incomes, consumption
is also highly sensitive to key import prices, particularly of
food and fuel. We project that inflation will stay within the
NBT's target of 7% over the next few years, due to the gradual
rise of the oil price, especially in somoni terms, as well as
ongoing increases in regulated electricity tariffs.

"We expect that budget deficits, as well as moderate currency
depreciation -- as over 80% of debt stock is denominated in
foreign currency -- will keep the annual change in net general
government debt at 6.4% of GDP over 2018-2021 (contrary to our
previous expectations of a 3.0% change). Our projected 4.0% fiscal
deficit and another potential Eurobond placement will likely
contribute to this increase. As a result, Tajikistan's general
government debt net of liquid assets will peak at 44% of GDP in
2019 against just 22% in 2014. Despite this pronounced hike,
government debt as a share of GDP remains modest by international
standards.

"Nevertheless, our assessment of the government's fiscal profile
includes contingent liabilities from state-owned enterprises
(SOEs) and banks. SOEs account for 30% of employment and more than
40% of GDP, and they are regularly involved in quasi-fiscal
activities. By the Tajikistan government's estimate, debt of the
18 largest SOEs (including the Talco aluminum plant, the main
electricity utility, and a state railway monopoly) amounted to
approximately 26% of GDP in 2016. Although nonperforming loans
(NPLs, overdue by more than 30 days according to NBT's reporting
standards) declined over the past year, NPLs to total loans
remained high -- at 36.5% of total loans in the banking system as
at December 2017. NPLs stem largely from directed lending,
predominantly to the SOEs."

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 the fiscal assessment had deteriorated.
All other 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        Rating
                                        To            From
  Tajikistan
   Sovereign Credit Rating
    Foreign and Local Currency           B-/Stable/B   B-/Stable/B

   Transfer & Convertibility Assessment  B-            B-
    Senior Unsecured
     Foreign Currency                    B-            B-



===========
T U R K E Y
===========


TURKEY: S&P Affirms Unsolicited 'BB/B' Foreign Currency SCRs
------------------------------------------------------------
S&P Global Ratings, on Feb. 23, 2018, affirmed its unsolicited
'BB/B' foreign currency long- and short-term sovereign credit
ratings and its unsolicited 'BB+/B' local currency long- and
short-term sovereign credit ratings on Turkey. The outlooks remain
negative.

At the same time, S&P affirmed its unsolicited 'trAA+/trA-1' long-
and short-term national scale ratings on Turkey.

OUTLOOK

The negative outlook on Turkey reflects risks that a change in
external financial conditions could eventually restrict Turkey's
financial and corporate sectors' ability to roll over their large
external debt, with negative implications for the country's
leveraged economy. An external shock might also occur via
geopolitical developments, for example through the imposition of
U.S. sanctions on one or more Turkish financial institutions. S&P
said, "Turkey's net and gross external financing requirements are
among the highest of all emerging market sovereigns we rate. In
case of an associated economic slowdown, we expect Turkey's
government would increasingly rely on budgetary and quasi fiscal
stimulus to support the economy, as it did in 2017 and 2009,
resulting in larger fiscal deficits and a rise in public debt that
could lead us to lower the ratings."

S&P said, "In addition, we could downgrade Turkey should monetary
policy prove inadequate to curb inflation and currency pressures,
which could intensify due to Turkey's reliance on volatile
portfolio inflows to finance its sizable current account deficit.
Additional currency weakness could, in our view, lead to a
deterioration of asset quality in the financial sector, given the
substantial share of foreign currency claims on residents by
Turkish banks.

"We will continue assessing these risks over the next 12 months.
We recognize that a country like Turkey, with high investment
needs, a young population, and less-developed capital markets,
will generate external deficits. However, we also consider that
the composition of Turkey's external financing (mostly debt with
little equity) and the use of the proceeds (primarily investment
in construction and public consumption) represent a risk to its
future economic and financial stability.

"We could revise the outlook to stable if Turkey's fiscal position
continued to support a reduction of the government's debt-to-GDP
ratio and inflationary pressures abated, likely reflecting a
stabilization in the Turkish lira's value, gradually improving
growth prospects, and a more balanced external position."

RATIONALE

S&P said, "Our ratings on Turkey are supported by the sovereign's
currently moderate debt burden and our base-case projection of an
only modest accumulation of government liabilities relative to GDP
over the next few years.

"We expect Turkey's flexible exchange rate regime will enable the
economy to adjust to external shocks, although high dollarization,
especially in the corporate sector, limits the benefits of a
weaker lira to the economy. However, Turkey's persistent debt-
financed current account deficits and high external financing
needs constrain its creditworthiness because they make economic
growth vulnerable to external refinancing risks. We also consider
Turkey's institutional settings to be weak. In our view, this is
characterized by increasingly centralized decision-making
processes, with dwindling checks and balances and impaired
transparency, which also has implications for property rights."

Institutional and Economic Profile: The economy will likely slow
down

-- In January 2018, the Turkish government extended the
    country's state of emergency for the sixth consecutive time.

-- Reacting positively to government stimulus and favorable
    external conditions, Turkey's economy boomed in 2017 but is
    set to slow down this year.

-- Significant tail risks due to geopolitical developments cloud
    Turkey's outlook over 2018-2019.

S&P said, "In 2017, Turkey displayed the third-fastest economic
growth among the 131 sovereigns we rate, according to official
data, expanding by an estimated 7%. Strong fiscal and credit
stimulus, combined with a very favorable external environment,
fueled the economy's rebound from a slump in 2016 following the
attempted coup and terrorist attacks. The credit guarantee fund
(CGF), a government-sponsored scheme that covers the first 7% of
credit losses on loans extended under the program, was
instrumental to last year's strong credit growth, which exceeded
20%. Additional measures, such as temporary tax cuts on white
goods purchases and substantial subsidies on employment, further
stimulated domestic demand.

"We consider last year's pace of credit and GDP growth to be
unsustainable. We forecast that real GDP growth will slow to 4%
this year and average 3.2% over 2019-2021 but, as in the past,
these projections are subject to uncertainty. Key supports for the
economy are likely to include continued, albeit moderating, fiscal
stimulus, a further recovery of tourism arrivals, and solid
external demand for Turkish merchandise exports.

"Credit growth is set to declerate markedly, according to our
estimates. This year, Turkey's banks will be able to use the
remaining funds under the CGF program and roll over some maturing
loans, equivalent to Turkish lira (TRY) 130 billion (about $31.3
billion) or 4.2% of GDP, but the program is set to expire by 2019.
Moreover, the banking system's financing capacity is already
dwindling, given the strong loan growth last year, as well as the
rising cost of wholesale funding and domestic deposits. In this
respect, the CGF has delayed but not prevented a liquidity squeeze
in Turkey's private sector, which we think could become more
apparent as credit conditions tighten during the remainder of
2018.

"Exports continue to be a bright spot in the economy, reflecting
the recovery in the tourism sector, strong demand from the EU, a
more competitive exchange rate, as well as the resilience of the
manufacturing sector."

Several elections are currently scheduled for 2019, local ones in
March and the parliamentary/presidential vote in November. Because
the ruling Justice and Development Party has a majority in
parliament, it could choose to hold elections earlier. Beyond the
timing of these elections, S&P views Turkey's system of checks and
balances as weak, due to the centralization of power, which is
likely to be consolidated further under the new executive
presidency.

Since the July 2016 coup, the government has purged the civil
sector, educational institutions, and the military, while
curtailing media freedoms. In S&P's view, these changes alongside
state asset seizures over the past two years raise questions about
the durability of property rights in Turkey, as well as the
transparency and accountability of government activities, and
other aspects of country risk.

Turkey's relations with key allies and trading partners, including
the U.S. and EU, remain complicated. In particular, we understand
that the U.S. government may consider imposing fines or other
penalties on one or more Turkish financial institutions, including
state-owned entities, and potentially companies in other sectors,
for allegedly enabling Iranian counterparties to evade U.S.
sanctions. An escalation of tensions with the U.S. could have
serious economic and financial consequences for Turkey, given
Turkish banks' reliance on external financing. In recent months,
Turkey's relations with certain EU members, notably Germany, have
thawed somewhat but those with others remain at a standstill, as
demonstrated by the formal withdrawal of the Dutch ambassador to
Turkey. The Turkey-EU refugee deal, and important bilateral trade
relations fostered through Turkey's customs union membership, are
important anchors for bilateral relations; that said, full EU
membership appears highly unlikely in the foreseeable future.

Flexibility and Performance Profile: External financing needs loom
large

-- Last year, Turkey's current account deficit--in dollar terms--
    was the world's third largest.

-- Fiscal and quasi-fiscal policy is playing a larger role in
    the economy.

-- Despite temporary base effects, inflation remains high.

With the prospects of gradually rising global interest rates,
Turkey's external vulnerabilities could mount. S&P said, "As we
anticipated, Turkey's current account deficit widened further in
2017, to 5.2% of GDP or $47 billion, the third largest in dollar
terms in the world after the U.S. and U.K. Despite strong export
growth, buoyant domestic demand pushed up imports (including for
nonmonetary gold) throughout last year. We expect the current
account deficit will narrow somewhat in 2018 to 4.5% of GDP on the
back of continued export growth. On average, we forecast a current
account deficit of 4.1% through to 2021. Since energy import
substitution will take time to implement, higher oil prices are an
additional factor that poses a risk to our forecast."

S&P said, "Our forecast of Turkey's current account deficit relies
as much on our assumptions on the availability of external
financing as it does on our projections for net exports. For this
reason, we highlight the shift in the composition of Turkey's
current account financing toward debt from equity. As recently as
2015, foreign direct investments covered up to 55% of Turkey's
current account deficit. During 2017, however, most of Turkey's
external financing came via more volatile portfolio inflows,
especially in the government bond market. In view of global
investors' highly supportive risk appetite, we do not expect this
picture will change materially in the near term, despite ongoing
political uncertainties in Turkey. Nevertheless, compared with
many of its emerging market peers, Turkey remains vulnerable to a
marked deterioration in external financing conditions."

Persistent current account deficits since 1998, which are common
among rapidly expanding emerging market sovereigns, have pushed up
Turkey's external debt, which has more than quadrupled since then.
S&P said, "In 2017, Turkey's narrow net external debt exceeded
current account receipts (CARs) by about 135%, the third highest
ratio among the 20 largest emerging market sovereigns we rate.
This high external debt leads to average gross external financing
needs of 172% of CARs over 2018-2021 according to our forecast.
Turkey's net foreign exchange reserves -- which we estimate at $33
billion in 2017 -- are a weak buffer and provide coverage for only
about two months of current account payments, the second lowest in
the emerging market peer group." Moreover, the large net open
foreign currency position of corporate borrowers (25% of GDP in
November 2017) indirectly exposes the banking system to risks in
the event of a steep depreciation of the lira. Although banks
typically hedge foreign currency risk, foreign currency funding
could represent a risk, if their hedges do not hold due to
counterparty risk.

The lira's continued weakening since the end of 2017 poses a major
risk to banks' capital levels and asset quality. However, so far,
asset quality has remained relatively resilient, and profitability
remains strong. Banks' return on equity averaged 14.3% in the
first nine months of 2017, while nonperforming loans (NPLs)
amounted to only 2.9% of total assets at the end of the year.
However, this ratio alone does not reveal the full picture
regarding potential problem loans in Turkey. If S&P adds problem
assets sold since 2010, the NPL ratio rises by 1.5 percentage
points. Furthermore, restructured loans in regulatory
classifications Group I and II represent a further 3.8%. Hence,
when adjusted to include problem asset sales by large Turkish
banks, and restructurings not included in NPLs, the NPL ratio
rises to over 8%. Mounting financial pressures on leveraged
property developers -- due to excess supply of residential
housing, especially in Istanbul and Ankara where valuations are
declining and most developers funded land purchases in foreign
currency -- could lead to further deterioration of asset quality.
There is also recent evidence of rising distress in pockets of the
corporate loan book. That said, domestic banks remain well
regulated and amply capitalized, which mitigates some of the
risks. S&P said, "Our Banking Industry Country Risk Assessment
places Turkey's banking sector in group '6' (on a scale of '1' to
'10', with group '1' denoting the lowest-risk banking systems),
although we see negative trends for both economic and industry
risk."

Turkish banks have a structural lack of long-term lira funding,
which makes them reliant on swaps to close their currency
positions. They use currency swaps to convert not only borrowing
in foreign currencies, but also high amounts of domestic deposits
in foreign currencies, owing to the use of dollars to fund lending
in lira. This is evident from the disparity between the loan-to-
deposit ratio in lira and that in foreign currency. For lira, this
ratio was a high 138%, while for foreign currency it was only 93%
as of Dec. 31, 2017. S&P also notes that the trend has been
negative since year-end 2013, when the loan-to-deposit ratio in
lira was about 120%. These hedging instruments have shorter tenors
(less than 24 months) than the liabilities they are hedging, which
represents roll-over risk for Turkish banks. Additionally, the
swaps expose banks to counterparty risk if they become
ineffective. Moreover, state-owned banks are relatively large,
representing about one-third of total banking system assets. One
or more of these institutions could potentially be subject to U.S.
sanctions as a result of transactions that appear to have
circumvented U.S. sanctions on Iran. In S&P's base case, it does
not anticipate any related fines will be large enough to create
systemic risks for Turkey's banking sector, but there remains a
risk of more substantial repercussions.

A string of measures designed to prop up the economy after the
July 2016 coup led to further widening of the general government
fiscal deficit in 2017 to about 1.6% of GDP. This headline
budgetary deficit ratio may appear low as a percentage of GDP.
However, in nominal terms, the financing of the 2017 central
government deficit required the issuance of TRY116.5 billion in
central government debt, an increase of 7.5x in net central
government issuance compared with the 2012 figure.

The majority of the government's stimulus measures, including
temporary cuts to taxes on white goods sales and income tax
exemptions, were phased out toward the end of last year. Others,
for example various subsidies to employment, and alternative tax
exemptions, remain in place. The 2018 budget encompasses some tax
increases, for instance of the corporate income tax to 22% from
20%. Still, S&P believes fiscal policy will remain accommodative
in the near term as the government continues to use its fiscal
space to support the economy, including through continuation of
the CGF. Moreover, the government has recently decided to turn
roughly one million contractors into public servants, which may
boost consumer confidence in the short term but increases the
sovereign's obligations in the long term. Overall, S&P forecasts
fiscal deficits averaging 2.2% over 2018-2021 due to the continued
need to support the economy, especially in the run-up to the
elections.

Despite continued fiscal stimulus, general government debt remains
low as a percentage of the upwardly revised GDP figures, at an
estimated 27.5% of GDP in 2017. Roughly 40% of the central
government debt was denominated in foreign currency at year-end
2017, up from its 2012 low of about 27% on the back of a 112%
depreciation of the lira against the dollar. The high share of
foreign currency debt highlights Turkey's vulnerability to adverse
exchange rate movements. S&P said, "In line with our expectations
of average nominal GDP growth of 11.5% through to 2021, we expect
Turkey's debt ratio will stay broadly stable through the forecast
horizon. Still, in nominal terms we forecast debt will increase
55% by 2021. Contingent liabilities may represent a risk to our
debt forecast, however. The Turkish Treasury strictly limits new
guarantees to a maximum of 0.5% of 2017 GDP ($4.5 billion); its
outstanding guarantees currently amount to about 1.6% of GDP.
However, we understand that one of the government decrees
extending the state of emergency (Decree 696) allows the treasury
to onlend to companies within the newly established, so-called
sovereign wealth fund, beyond the limits stipulated in the budget
law." This could become particularly relevant should U.S.
sanctions be more significant than expected.

S&P said, "We expect inflation in Turkey will lessen over 2018-
2021. But given the lira's volatility, the Turkish central bank's
monetary policy response may prove insufficient to anchor its
inflation-targeting regime, despite 275 basis point increases to
the late liquidity window rate over 2017. In particular, 12-month
inflationary expectations, as published in the central bank's
Survey of Expectations, remain stubbornly high, over 100 basis
points above the figure in February 2017. Nevertheless, we note
that inflation decelerated somewhat in January 2018 to 10.35%
versus its peak of almost 13% in November 2017. This figure is
still well above the central bank's medium-term inflation target
of 5%." A large contributor to Turkey's elevated inflation rates
is the relatively high pass-through impact of the exchange rate,
which could raise prices by 15% according to central bank
estimates. The Turkish government has also initiated a commission
to examine another driver of inflation, food prices, although it
will take time before this could meaningfully impact food
inflation, which still accounts for 21.8% of the consumer price
index basket.

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
  Turkey
   Sovereign Credit Rating
    Foreign Currency|U~         BB/Negative/B      BB/Negative/B
    Local Currency|U~           BB+/Negative/B     BB+/Negative/B
    Turkey National Scale|U~    trAA+/--/trA-1     trAA+/--/trA-1
    Transfer & Convertibility
    Assessment|U~               BBB-               BBB-

|U~ Unsolicited ratings with no issuer participation and/or no
access to internal documents.



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


EXTERION MEDIA: S&P Cuts CCR to 'CCC+' on Tight Covenant Headroom
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Doubleplay I Ltd., the holding company of U.K.-based out-of-home
(OOH) advertising group Exterion Media (Exterion hereafter), to
'CCC+' from 'B-'. At the same time, S&P removed the rating from
CreditWatch with negative implications, where it had been placed
on Dec. 22, 2017. The outlook is stable.

S&P said, "We also lowered to 'CCC+' from 'B-' our long-term issue
ratings on the group's GBP150 million senior secured six-year term
loan B and the GBP40 million multicurrency, five-year revolving
credit facility (RCF). The '3' recovery rating on these
instruments is unchanged, reflecting our expectation of meaningful
recovery prospects (50%-70%; rounded estimate: 65%) in the event
of default.

"The downgrade reflects our opinion that Exterion's current
covenant schedule is unsustainable in the long term and that the
group is now dependent upon favorable business, financial, and
economic conditions to comply with its financial maintenance
covenant. We are not aware of management having yet taken any
steps to relieve this covenant pressure, which we expect to build
further as the requisite test levels step down through 2018. We
expect Exterion's operating performance to remain under pressure
as difficult macroeconomic conditions in several of its key
markets--particularly the U.K.--limit its ability to increase its
earnings and generate free operating cash flows (FOCF).

"In our view, Exterion's operating performance is likely to remain
mixed. Although performance through the past few months of 2017
was broadly in line with budget, earnings visibility through 2018
and 2019 remains low. We expect profitability to improve only
moderately in 2018, relative to last year. In our view, the
group's relatively small overall scale and limited geographic
diversify leave it exposed to a further slowdown in U.K. private
consumption growth. Furthermore, we expect tough conditions in the
group's main international markets--particularly in France--to
suppress volumes on a constant-currency basis."

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

-- Moderate U.K. real GDP growth 1.0% in 2018 (1.5% in 2017) and
    consumer price inflation of 2.4% in 2018 (2.7% in 2017),
    supported by exchange-rate pressures;

-- Slightly stronger conditions in the eurozone, with forecast
    real GDP growth of 2.3% in 2018 and 2.0% in 2019;

-- Slower growth in the U.K. OOH advertising market, mirroring
    that of the overall economy, and affected by S&P's
    expectation of a significant decline in real private
    consumption growth to 0.8% in 2018, from an expected 1.7% in
    2017;

-- Revenue growth of 3%-5% in 2018, reflecting some recent
    contract wins, after contracting by 2% in 2017 (from GBP381
    million in 2016); and

-- Moderate EBITDA margin improvements in 2017 and 2018--to just
    above 9% and near 10% respectively--from 7.7% in 2016, fueled
    by lower restructuring expenses, operating efficiencies, and
    increased value added, thanks to capital spending on
    digitalization of key assets.

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

-- S&P Global Ratings-adjusted EBITDA of GBP35 million-GBP45
    million in 2018;

-- Adjusted debt to EBITDA of 5.5x-6.5x in 2018;

-- Slightly negative reported FOCF generation in 2018;

-- EBITDA interest coverage ratio of 2.0x-2.5x in 2018;

-- Very tight headroom of less than 5%, under the June and
    September 2018 covenant tests--both tested at 3.75x--with the
    potential for a breach in the event of underperformance or
    unfavorable working capital movements, unless the covenants
    are renegotiated or waived; and

-- High likelihood of a breach of the 3.5x December 2018
    covenant test, unless the covenant is renegotiated or waived.

S&P said, "The stable outlook reflects our view that Exterion's
operating performance will remain under pressure over the next 12
months against a backdrop of difficult conditions in the U.K.,
such that we now consider the group dependent upon favorable
business, financial, and economic conditions to comply with its
financial maintenance covenant. That said, we expect management
will--in collaboration with the group's financial-sponsor owner--
appropriately manage the tightening of its covenant headroom.

"We could lower the rating if we perceived Exterion's liquidity
position to have further weakened, or if we believed that the risk
of a debt restructuring occurring within the next 12 months has
further increased. This could be caused by a drop in Exterion's
revenues or operating margins, such that reported EBITDA falls
short of our forecast, reported FOCF burn exceeds the GBP10
million we currently expect, or if the group was to breach its
covenants.

"We could raise the rating if, on the back of meaningful earnings
growth or amendments to the group's covenant schedule, Exterion
were to restore adequate headroom of at least 15% under its
financial covenants, on a sustainable basis. An upgrade would be
dependent on our perception that the business model and the
capital structure remains sustainable in the long term."


GALAXY BIDCO: Moody's Rates New GBP175MM Sr. Secured Notes B2
-------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the new
senior secured GBP175 million floating rate notes due 2020, issued
by Galaxy Bidco Limited, a subsidiary of UK-based extended
warranty and service provider Galaxy Finco Limited (Domestic &
General, D&G or the company). Concurrently Moody's has changed the
outlook on the all ratings to stable from positive.

The rating action reflects the following:

* The exchange offer of the new floating rate notes (FRNs) to
refinance existing FRNs due 2019 on substantially the same terms

* The expectation that the company will distribute up to GBP75
million to shareholders from cash and surplus funds within its
insurance subsidiary

* The change in strategy towards greater insurance and maintenance
service products, leading to increased costs and regulatory
capital requirements

At the same time, Moody's has affirmed the company's corporate
family rating (CFR) of B2, the B3 rating on the GBP125 million
senior unsecured notes issued by Galaxy Finco Limited and the B2
rating on the GBP200 million senior secured fixed rate notes due
2020 issued by Galaxy Bidco Limited. The rating agency has also
changed the probability of default rating of Galaxy Finco Limited
to B2-PD from B1-PD. The B2 rating on the existing senior secured
FRNs will be withdrawn following their repayment on completion of
the exchange offer.

RATINGS RATIONALE

The company's B2 CFR reflects its (1) solid market position in the
UK as the largest independent extended warranty provider for
domestic appliances; (2) longstanding relationships with 10 of the
12 largest white goods OEMs in the UK; (3) strong revenue
visibility driven by high retention rates from sales through
direct-debit; (4) track record of stable operating performance and
cash flow generation throughout the economic cycle.

However, the rating is constrained by (1) the company's high
Debt/EBITDA ratio of 5.3x at December 2017, as adjusted by
Moody's; (2) the highly competitive environment, in which D&G is
challenging large retailers and utility suppliers such as Dixons
Carphone plc and British Gas in the UK that substantially control
the sale of extended warranties for many appliances; (3) execution
risks and additional costs in relation to the company's strategy
to transition to insurance and maintenance service plans; (4) the
company's large exposure to its core UK market where it generates
81% of sales; (5) regulatory event risk for the company's
insurance-regulated subsidiary; (6) the expectation of dividend
distributions reducing liquidity.

In October 2017, the company announced its new strategy, under
which it plans to transition its customers to an insurance and
maintenance service plan product, and reducing its non-insurance
warranty and repair product. Whilst this is expected to improve
service levels and improve the business profile in the longer
term, there are execution risks and additional costs associated
with the strategy.

In particular, the company needs to renegotiate terms with OEMs,
transition customers without impacting retention rates, incur
additional costs of customer acquisition and product service,
increase regulatory capital, and restructure and invest in IT and
call centres. The company estimates that the new strategy will
result a 200 basis point reduction in reported EBITDA margin,
whilst the outcome is currently uncertain and cost estimates may
be exceeded. Nevertheless Moody's expects that the additional
costs will be offset by ongoing revenue growth, based on strong
current momentum, including sales growth of 7.5% in the current
year (nine months ended December 2017).

Liquidity

The company's liquidity is expected to remain adequate, after
considering a possible dividend distribution of up to GBP75
million. At December 31, 2017 the company had GBP95 million of
available cash and surplus funds available for distribution from
its insurance subsidiary. Liquidity is further supported by a
super senior revolving credit facility, which will be upsized to
GBP100 million from GBP80 million as part of the current
refinancing transaction, of which GBP77 million is available after
L/C utilization.

Structural Considerations

The B2 instrument ratings on the senior secured FRNs and senior
secured fixed rate notes are in line with the CFR, which reflects
their ranking ahead of the senior notes, but behind the super
senior RCF. The senior unsecured notes are rated B3, which
reflects their junior ranking within the capital structure. The
senior secured instruments are guaranteed by at least 85% of the
non-regulated subsidiaries, although total guarantor coverage is
limited because the regulated insurance company does not provide
guarantees. Security includes a UK debenture over UK assets and
receivables of guarantors.

The B2-PD probability of default rating is in line with the B2 CFR
reflecting Moody's assumption of a 50% recovery rate typical for
transactions including senior secured and unsecured instruments.

Outlook

The stable outlook reflects the expectation that D&G will report
limited growth in Moody's-adjusted EBITDA over the next 12-18
months as the additional service and other costs of the new
strategy offset the benefits of revenue growth. The new strategy
is also expected to limit cash flows to around breakeven or low
positive levels. The outlook also assumes that the company will
continue to comply with regulatory requirements within its
insurance subsidiary.

What could change the ratings up /down

Upward rating pressure could occur if D&G were to successfully
execute its new strategy such that the Moody's-adjusted
Debt/EBITDA ratio remains below 5.5x, the company generates
material positive free cash flow and maintains an adequate
liquidity profile.

Negative rating pressure would arise if the Moody's-adjusted
Debt/EBITDA ratio were to rise above 6.25x, if its free cash flow
were negative for a sustained period, or if the liquidity profile
weakens.

Principal Methodology

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

Other Considerations

The company's business model continues to transition towards
having insurance-like activities as its primary focus and over
time Moody's may mirror this by transitioning its approach to
using an insurance methodology.

Company profile

D&G is a UK-based warranty and warranty service provider. The
company offers various warranty products for domestic appliances
and consumer electronics to end-customers and households,
primarily through original equipment manufacturers but also
through retailers at the point-of-sale. The company generates the
largest part of its revenues in the UK (80% of revenues in fiscal
2017, ended March 31, 2017) with the remainder in the largest
economies in Europe and Australia (20% in international division).
In fiscal 2017 reported revenues and adjusted EBITDA of GBP716
million and GBP95 million respectively.


LAGAN CONSTRUCTION: Administration Impacts University Project
-------------------------------------------------------------
Margaret Canning at Belfast Telegraph reports that the new GBP250
million Ulster University campus in Belfast has been mothballed
and workers sent home over a litany of legal problems.

According to Belfast Telegraph, work on the campus came to a
standstill on Feb. 26, two days after chief contractor Lagan
Construction Group announced it was putting four of its companies,
including the firm charged with building the university, into
administration.

The Belfast Telegraph further relays that business advisory firm
KPMG will be appointed as administrator in a High Court hearing
today, Feb. 28.

The university has said that joint venture partner Somague will
pick up the work, Belfast Telegraph relates.  However, staff at
other companies on-site have been laid off as discussions begin
over the site's future, Belfast Telegraph relays.

It's understood senior directors from Somague in Portugal will
visit Belfast for talks with the administrators today, Feb. 28,
Belfast Telegraph discloses.

KPMG is being appointed administrators to Lagan Construction Group
Holdings, Lagan Construction Group, Lagan Building Contractors and
Lagan Water, Belfast Telegraph states.  But the group has said 24
other companies are unaffected, Belfast Telegraph notes.

According to Belfast Telegraph, it's expected the parties may
discuss finding another joint venture partner with KPMG.


PETRA DIAMONDS: Moody's Confirms B2 CFR & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service has confirmed diamond mining group Petra
Diamonds Limited's corporate family rating (CFR) at B2 and its
probability of default rating (PDR) at B2-PD. At the same time,
Moody's changed the outlook on the ratings to negative from review
for downgrade. These actions conclude the rating review initiated
on Oct. 18, 2017.

"Our decision to confirm Petra's ratings reflects a drop in near-
term liquidity risk the company faces after it successfully agreed
a waiver and reset of 2017-18 bank covenant tests that it was
uncertain to pass. However, the negative outlook factors in the
likelihood that it may again need to seek additional waivers or
resets for upcoming tests in 2019," says Douglas Rowlings, a
Moody's Vice President and Senior Analyst.

At the same time, Moody's has confirmed the B3 rating assigned to
the $650 million senior secured notes due 1 May 2022.

RATINGS RATIONALE

The confirmation of Petra's CFR at B2 and PDR at B2-PD is based on
Moody's forecasts that Petra's gross debt/EBITDA reduces towards
3.5x over the next 18 months, and EBITDA/Interest Expense moving
above 3x over the same period. At the same time, Moody's forecasts
that the company will generate around $6 million in free cash flow
during the financial year ending June 30, 2018 (resulting in net
debt forecast of ca. US$ 600 million at June 30, 2018) and a
further $80 million during the financial year ending June 30,
2019. This positions Petra strongly within the B2 rating category
relative to credit metric guidance levels normally attributed to
diamond mining companies of a similar small scale, along with a
high degree of mine and country concentration.

Moody's forecasts take into account a South African rand versus US
dollar exchange rate of 12 given Petra's intention to protect a
floor exchange rate at this level through short-term hedging
initiatives. However, this has also been flexed downwards to 11.6
South African rand to the US dollar. Notwithstanding further
remedial measures that Petra would likely take if the exchange
remained at this level, the impact on trend lines for gross
debt/EBITDA and EBITDA/Interest Expense over the next 18 months
would not be altered materially.

Moody's however recognizes the potential for downside risk to
Petra's business profile and credit metrics should the South
African rand continue to appreciate further relative to the US
dollar. Petra would likely have to consider drastic remedial
measures which would likely include putting their higher cost
production, such as their Kimberly Ekapa Mining operations and
Koffiefontein mine, on care and maintenance.

At the same time, Petra could continue to face challenges in
delivering grades and dollar per carat yields according to plan
from new undiluted ore minings areas at their Finsch mine and
especially at their Cullinan mine given recent challenges in this
regard. These duel downside risks further support Moody's negative
outlook on the ratings, which could see adverse pressure on credit
metrics should either material operating challenges or a
significant strengthening in South African rand transpire.

Petra's net debt to EBITDA bank covenant steps down to 2.5x and
Moody's forecasts that the company will register 2.9x for both
their June 30, 2019 and December 31, 2019 covenant tests as
defined by the banks. Similarly, Moody's forecasts that the
company will register covenant levels of 3.6x at June 30, 2019 and
4x at December 31, 2019 for their EBITDA/Interest Expense as
defined by the banks, with the threshold level increasing to 4x at
both these reporting dates. These forecasts assume a South African
rand versus US dollar exchange rate of 12 considering Petra's
intention to protect a floor exchange rate at this level through
short-term hedging initiatives. Moody's expects that as result of
these expected covenant breaches, Petra will again need to
approach their banks for a waiver or reset, or a combination of
both.

Petra has continued to obtain waivers and amendments to their
banking covenants from a consortium of South African banks
throughout their project build cycle at their Finsch and Cullinan
mines. The company has established relationships dating back more
than 10 years with these banks. The company has also significantly
de-risked their business profile following a period of heavy
investment over the past 5 years. Petra has commissioned their
Cullinan plant and is delivering undiluted ore from new mining
areas at both their Finsch and Cullinan mines. Moody's sees the
business risk continuing to reduce as time goes on and Petra
delivers higher production levels from these new undiluted ore
mine areas with greater optimization being applied to the new
Cullinan plant.

A default on their bank facilities will not constitute a default
on their $650 million senior secured notes due 1 May 2022,
assuming that Petra can still make timely payment on their coupon
commitments for the notes. Petra's debt obligation agreements also
do not contain cross-acceleration of debt repayment clauses or
cross default clauses.

STRUCTURAL CONSIDERATIONS

Petra's $650 million notes due in 2022 are senior to certain
subordinated obligations of the company, supporting Moody's loss
given default assessment while also benefiting from a second lien
position relative to guarantees and collateral provided to other
senior lenders through a security SPV structure. Senior facilities
along with the approximate $116 million Black Economic Empowerment
(BEE) refinancing loan obligation by BEE stakeholder to Petra's
senior lenders are supported by guarantees on a first lien basis
from Petra's major operating subsidiaries, including additional
collateral of their shares and bank accounts which, all together,
are part of the security SPV structure. Moody's reflects the BEE
refinancing loan guarantee obligation as part of the first lien
creditor class, given that the guarantee would more than likely be
called upon in the event of default. Senior debt facilities,
including the BEE refinancing loan guarantee obligation, are
therefore a larger input versus subordinated obligations into the
debt capital structure, thereby leading to the B3 rating on the
notes relative to the B2 CFR.

WHAT COULD CHANGE THE RATING UP/DOWN

The CFR could be upgraded to B1 if Petra is able to maintain net
debt/EBITDA sustainably below 2x and EBITDA/Interest trending
sustainably above 4x.

The CFR could be downgraded to B3 if for more than 18 months
Petra's net debt/EBITDA is sustained above 3.5x and
EBITDA/interest expense is sustained below 3x. Similar downward
pressure could result if Petra were to face (1) long-term
challenges in accessing undiluted ore at their Cullinan and Finsch
mines; or (2) a deterioration of their liquidity profile.

List of Affected Ratings:

Confirmations:

Issuer: Petra Diamonds Limited

-- Corporate Family Rating, Confirmed at B2

-- Probability of Default Rating, Confirmed at B2-PD

Issuer: Petra Diamonds US$ Treasury Plc

-- BACKED Senior Secured Regular Bond/Debenture, Confirmed at B3

Outlook Actions:

Issuer: Petra Diamonds Limited

-- Outlook, Changed To Negative From Rating Under Review

Issuer: Petra Diamonds US$ Treasury Plc

-- Outlook, Changed To Negative From Rating Under Review

Petra Diamonds Limited is a rough diamond producer listed on the
Main Market of the London Stock Exchange. The company is
registered in Bermuda and domiciled in Jersey.

Petra has controlling interests in five mines (four in South
Africa and one in Tanzania), extensive tailings operations in
Kimberley (via their 79.5% interest in the Kimberley Ekapa Mining
joint venture), and an exploration programme in Botswana.

During the 12 months to December 31, 2017, Petra produced 4.2
million carats of diamonds, accounting for less than 4% of the
estimated total production globally by volume and value at
December 31, 2017.

For the 12 months to December 31, 2017, Petra generated $474
million in revenues and $158 million in terms of Moody's-adjusted
EBITDA. As of February 22, 2018, the company had a market
capitalization of GBP358 million ($500million).


TOYS R US: U.K. Unit Likely to Enter Into Administration Today
--------------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that Toys "R" Us Inc.'s
U.K. arm is likely to start a court-led administration process
today, Feb. 28, after failing to secure new financing to meet a
tax liability due this month.

According to Bloomberg, a person familiar with the matter said the
U.K. unit faces a GBP15 million (US$21 million) value added tax
bill and talks with potential buyers fell through earlier this
month.

Sky News reported on Feb. 23 that Toys "R" Us U.K. was on the
brink of appointing administrators, Bloomberg relays.

The person said weak trading during the crucial Christmas shopping
season thwarted the company's plans to restructure the business in
the country through store closures and rent cuts, as agreed in
December with creditors, Bloomberg relates.

The person said the retailer is also seeking buyers for its
remaining European operations, Bloomberg notes.

                      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 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-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

Copyright 2018.  All rights reserved.  ISSN 1529-2754.

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