/raid1/www/Hosts/bankrupt/TCREUR_Public/180315.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, March 15, 2018, Vol. 19, No. 053


                            Headlines


A R M E N I A

ARMENIA: Moody's Alters Outlook to Pos & Affirms B1 Issuer Rating


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

BOSNIA AND HERZEGOVINA: S&P Affirms 'B/B' SCRs, Outlook Stable


G E R M A N Y

HYDROTEC AG: Files for Opening of Insolvency Proceedings


I R E L A N D

CARLYLE EURO 2018-1: S&P Assigns Prelim B- Rating Class E Notes
CBL INSURANCE: Central Bank Concerned on Ability to Pay Debt
EURO CLO 2018-1: Moody's Assigns (P)B2 Rating to Class E Notes


L U X E M B O U R G

MHP SE: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
MHP SE: S&P Rates New US$500MM Senior Unsecured Eurobond 'B'


N E T H E R L A N D S

DRYDEN 59: Moody's Assigns (P)B2 Rating to Class F Notes


S P A I N

FTPYME TDA 4: Fitch Affirms 'C' Rating on Class D Notes


T U R K E Y

ISTANBUL: Moody's Lowers Long-Term Issuer Ratings to Ba2
MERSIN ULUSLARARASI: Moody's Cuts Rating on US$450MM Bond to Ba1
TURKEY: Moody's Takes Rating Actions on 17 Banks
TURKEY: Moody's Lowers Rating on Five Companies to Ba1


U N I T E D   K I N G D O M

CONTOURGLOBAL PLC: Fitch Assigns BB- IDR, Outlook Stable
CO-OP BANK: Suffers Fifth Consecutive Year of Losses in 2017
HEALTHCARE SUPPORT: S&P Affirms BB+ Debt Ratings, Outlook Stable
LLOYDS BANKING: S&P Affirms BB- Rating on Tier 1 Hybrid Issuance
TULLOW OIL: Sells US$650 Mil. Bonds to Cover Debt Repayments

* UK: Fewer Phoenix-Type Pre-Pack Sales Put Up for Scrutiny
* UK: Restaurant Bosses Call for Action Amid Sector Woes


                            *********



=============
A R M E N I A
=============


ARMENIA: Moody's Alters Outlook to Pos & Affirms B1 Issuer Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Armenia's
rating to positive from stable and affirmed the B1 long-term
issuer and senior unsecured debt ratings.

The positive outlook is underpinned by macroeconomic policies that
should reduce Armenia's vulnerability to external shocks.
Moreover, ongoing reforms of the fiscal framework may shore up
fiscal strength over time.

Armenia's B1 rating balances credit strengths from robust growth
potential and improving institutional strength against credit
challenges stemming from a small and low income economy that
remains exposed to external developments, a moderately high debt
burden that relies on external funding, and latent geopolitical
tensions with neighbouring Azerbaijan.

Moody's has also raised Armenia's long-term local-currency bond
and deposit ceilings to Baa3 from Ba2. Armenia's long-term and
short-term foreign currency bond and deposit ceilings remain
unchanged at Ba2/"Not Prime" and B2/"Not Prime", respectively.

RATINGS RATIONALE

RATIONALE FOR THE POSITIVE OUTLOOK

MACROCONOMIC POLICIES POINT TO REDUCED VULNERABILITY TO EXTERNAL
SHOCKS

Given Armenia's small size, low levels of incomes, open economy
and significant reliance on external funding, the sovereign's
credit profile is vulnerable to external shocks. While some
vulnerabilities remain, improvements in the effectiveness of
macroeconomic policies should bolster Armenia's resilience to
potential external shocks.

In particular, effective monetary and prudential policies support
relative macroeconomic and currency stability, an important
feature given the government's and banking system's reliance on
external and foreign currency funding.

This was illustrated during the 2014-16 regional economic shock,
caused by the sharp drop in commodity prices. The Armenian dram
depreciated the least among peers in the CIS region (by 22%
between January 2014 and February 2016), while inflation
expectations were anchored, preventing a flight to US dollars.
Inflation peaked at 5.8% year-on-year in March 2015 and averaged
1.6% between 2014 and 2017. The deterioration in banks' asset
quality was limited and non-performing loans have fallen to 5.5%
of total loans in December 2017, below the January 2014 level. In
turn, this allowed bank credit to continue to expand, supporting
economic activity.

Armenia's fiscal metrics remain exposed to external shocks that
weaken the currency and affect GDP growth. Indeed, general
government debt increased markedly to 58.6% of GDP in 2017 from
40.8% in 2013. However, a continuation of monetary and prudential
policies effective at mitigating the extent of the currency
depreciation would limit that exposure.

Moreover, the full implementation in July 2018 of mandatory
pension contributions will help raise domestic savings and reduce
further the savings-investment gap, the source of Armenia's
external vulnerability. The pension reform requires mandatory
contributions for employees born after 1 January 1974, which make
up an estimated 60% of Armenia's workforce. Moody's expects that
the formalisation of savings worth 10% of wage incomes -- 5% by
the employee with the state topping up another 5% -- would, over
time, reduce Armenia's reliance on external funding and create a
sizeable domestic institutional investor base for long-term dram
assets.

REFORMS OF THE FISCAL FRAMEWORK MAY SHORE UP FISCAL STRENGTH OVER
TIME

Armenia is reforming its fiscal framework with a view to reinforce
fiscal discipline, while preserving some fiscal flexibility in
response to cyclical shocks. Over time, consistent implementation
of this framework may contribute to a gradual strengthening of
fiscal metrics.

Fiscal discipline will be fostered through the implementation of
budget allocation rules for projects and a new e-procurement
system. Under the new rules, budgets for projects will only be
allocated with explicit cost estimates, obtained through the e-
procurement system, which imposes restrictions on single source
tenders and ensures transparency of data. These should reduce the
scope for corruption and enhance fiscal discipline.

A further key component is the introduction of a new and
modernised fiscal rule effective 2018, which, if adhered to, will
keep current expenditures in check should debt levels exceed pre-
specified thresholds of 50% and 60% of GDP, while allowing the
government to implement counter-cyclical policies through capital
spending. Specifically, if government debt exceeds 50% of GDP,
growth in current expenditures would be capped at the rate of
nominal GDP growth over the past several years; if government debt
exceeds 60% of GDP, current expenditures cannot exceed tax
revenues. The new rule also requires a debt reduction plan when
debt levels exceed 50% of GDP, although the authorities will only
flesh this out in the next update of the medium-term expenditure
framework in July 2018.

The impact of these measures on Armenia's fiscal strength will
only materialise over time and through economic cycles. Taking
into account the government's fiscal plans, Moody's expects the
government's fiscal deficit to narrow to 2.6% of GDP in 2018 and
2.5% in 2019, from 4.7% in 2017. Moody's also expects Armenia's
general government debt to gradually decline to 56.5% of GDP by
end-2018 and 54.2% by end-2019.

RATIONALE FOR AFFIRMING ARMENIA'S RATING AT B1

The affirmation of the B1 rating reflects Moody's view that the
rating appropriately balances Armenia's credit strengths owing to
robust GDP growth and the government's strengthening track record
of effective economic and financial management, against credit
challenges stemming from a small and low income economy that
remains exposed to external developments, including in Russia, a
moderately high debt burden that relies on external funding, and
persistent latent geopolitical tensions with neighbouring
Azerbaijan.

In particular, Armenia will remain vulnerable to external shocks
over the medium term given the high level of dollarisation in the
economy. The central bank has introduced differentiated prudential
requirements for foreign currency loans and deposits to
disincentivise dollarisation -- including higher reserve
requirements and risk-weights for foreign currency deposits and
loans, respectively. Although these, together with monetary policy
credibility, have contributed to lower dollarisation levels
(measured by the ratio of foreign currency deposits to total
deposits), they remain high at around 60% at end-2017.

WHAT COULD CHANGE THE RATING UP

Upward pressure on Armenia's rating would stem from further
economic and/or institutional reforms that point to sustained
improvements in economic competitiveness and institutional
strength. In particular, these reforms could be fostered by the
Comprehensive and Enhanced Partnership Agreement (CEPA) that
Armenia signed with the European Union in November 2017, although
any tangible impact would likely materialise over the medium term.
Indications that Armenia's debt burden is falling durably and
markedly faster than Moody's currently expects would also be
credit positive in rebuilding some of the fiscal buffers that
eroded in 2014-16.

WHAT COULD CHANGE THE RATING DOWN

The positive outlook signals that a rating downgrade is unlikely
over the next 12-18 months. However, the outlook could be changed
to stable if there was a loss of reform momentum, fiscal slippage
removing prospects that the government debt burden will decline
over the medium-term, and/or an escalation of the conflict with
Azerbaijan over the Nagorno-Karabakh territory.

GDP per capita (PPP basis, US$): 8,637 (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): -0.9% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -5.5% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -2.3% (2016 Actual) (also known as
External Balance)

External debt/GDP: 94.1% (2016 Actual)

Level of economic development: Low level of economic resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

SUMMARY OF MINUTES FROM RATING COMMITTEE

On March 6, 2018, a rating committee was called to discuss the
rating of the Armenia, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutional strength/framework have materially
increased. The issuer's fiscal or financial strength, including
its debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.



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


BOSNIA AND HERZEGOVINA: S&P Affirms 'B/B' SCRs, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings, on March 9, 2018, affirmed its 'B/B' long- and
short-term foreign and local currency sovereign credit ratings on
Bosnia and Herzegovina (BiH). The outlook is stable.

OUTLOOK

S&P said, "The stable outlook on BiH balances our assessment of a
solid cyclical upswing in economic activity against our concerns
that political maneuvering ahead of the general election in
October 2018 could result in notable gridlock -- characterized by
derailed structural reform momentum and disruptions in external
debt inflows -- and ultimately curtail growth potential. While
depopulation boosts per capita wealth levels, we take into account
our expectations that BiH's income levels will continue to improve
amid the economic upswing.

"We could raise the ratings on BiH if external financing flows
proved resilient and the political setting recovered its reform
agility, resulting in maintained, solid growth momentum by
supporting investments and markedly lifting income levels. Ratings
upside could stem from a lessened impact of structural,
depopulation-related matters on wealth levels. Less antagonistic
relations across BiH's multilayered governments, exemplified by
upheld reform stringency and smoother discourse, would also be
credit-positive.

"We could lower the ratings if political developments in 2018
create a bottleneck that reverts progress made under the reform
agenda so far, hinders external financing, and notably reduces the
growth momentum."

RATIONALE

S&P's ratings on BiH are supported by the sovereign's steady
economic growth, which supports indirect tax revenues that BiH
uses to service its external debt, together with its relatively
low and predominantly concessional debt burden. BiH's stable
fiscal position and our assessment that the sovereign will
continue to contain its budget deficits during periods of less-
available external financing also underpin the ratings.

The ratings are constrained by the country's divisive politics,
which frequently bring policymaking to a standstill. S&P also
factors in BiH's limited monetary policy flexibility and its still
low income levels. Moreover, while external financing channels
have recently turned benevolent, sustained and notable current
account deficits give rise to substantial external financing needs
that weigh on the ratings.

Institutional and Economic Profile: Divisive politics remain a key
obstacle to economic transformation despite recent reform success

-- Successful reform implementation has put the International
    Monetary Fund's (IMF's) extended fund facility (EFF) back on
    track and unlocked external financing.

-- Political tensions have intensified as the constituents gear
    up for the general election in October. This is likely to
    make 2018 a lost year in terms of meaningful reform, creates
    uncertainties regarding the predictability of concessional
    debt inflows, and challenges fiscal policymaking and the
    transition to investment-led growth.

-- Despite the unpredictable domestic politics, S&P expects
    economic growth to remain solid, supported by private
    consumption, a positive external environment, and large-scale
    public investment projects.

In late 2017, Bosnian policymakers legislated an excise tax hike
that meets a key requisite to complete the first review under
BiH's current three-year EUR550 million EFF, with the IMF securing
the disbursement of EUR75 million and the possibility of
additional two tranches in June and September this year. The IMF
program is an important anchor for the country's structural reform
agenda, and its positive momentum enables BiH to access external
financing for key infrastructure projects. As such, several
external financing channels have opened up to fund meaningful
growth-enhancing infrastructure investment over the coming three
years. In this regard, S&P notes that in February, the European
Bank for Reconstruction and Development signed a memorandum of
understanding to disburse a three-year EUR700 milllon loan to
finance highway construction throughout the country.

BiH's multilayered institutional set-up hinders effective
policymaking and complicates meaningful progress toward being
granted EU candidate status (BiH applied in early 2016). While S&P
expects the European Council to deliver an opinion on the progress
of BiH's accession to the EU toward the end of the year, it does
not anticipate any notable traction in the short term. In
particular, confrontational political rhetoric continues to impede
the longer-term effectiveness of reforms necessary to secure
structural improvements in the business sector and the labor
market to strengthen growth potential and bolster income levels.
Moreover, while S&P expects BiH's wealth levels to continue to
improve, it observes that the headline number appears stronger due
to the ongoing decline in population and the debate over the
handling of population statistics.

S&P said, "We anticipate that the frequent confrontations along
party lines and between the country's constituents will intensify
ahead of the general election this October. Importantly, aspects
of the election law need to be rectified, following a July 2017
court ruling, and the amendments would need parliamentary approval
before elections can move ahead as planned. This requires swift
resolution since the general election would have to be called in
May for it to take place in October. We believe that failure to
reach an agreement could extend delays to the planned elections,
hampering the performance of the executive and legislative
institutions. We do not exclude that the the orderly formation of
government following the general election could be compromised.
Moreover, while calls for a referendum on the independence of
Republika Srpska have been muted lately, we do not rule out that
further attempts could resurface and create additional political
tensions.

"Nevertheless, we do not expect these factors to materially deter
BiH's growth trajectory, which we believe is experiencing a solid
cyclical upswing. Furthermore, we believe that the international
community will continue to support BiH on its European integration
path.

"We have revised up our growth projections for BiH in line with
our base-line expectation that a resumption of external financing
will spur key infrastructure investments. In our view,
investments, alongside solid exports, will increasingly contribute
to growth over the medium term. We forecast a growth path for the
country of 3.2% on average over 2018-2021. However, the pick-up in
infrastructure investment is also likely to bolster imports of
machinery, which will probably weigh on net exports and ultimately
on growth. As in the past, we project that private consumption
will be a key growth contributor, financed by substantial
remittances inflows. We also observe that foreign direct
investment (FDI) jumped in 2017 to 2.2% of GDP from 1.6% in 2016.
Still, this increase was primarily driven by existing companies
reinvesting their profits and less by new green-field investments.
We view weaknesses in the business sector and political
uncertainty as key deterrents to further private investment."

The labor force survey indicated that the unemployment rate was at
20.5% in 2017, down from 25.4% in 2016. The significant decline is
driven by an increase in employment, but also from a fall in the
activity rate and a reduction of the labor force. Domestic
private-sector development is hampered by the availability of
skilled and educated labor -- a shrinking pool because of the
migration of working-age people to the EU and other neighboring
countries.

While S&P expects improvements in the country's labor market due
to the improved investment and growth prospects, continuing
emigration and aging are set to be an obstacle.

Flexibility and Performance Profile: Resumed external financing
facilitates investments, but current account deficits are widening

-- S&P projects the current account deficit to widen through
    2021 as infrastructure investments drive imports.

-- Renewed availability of external funding is resulting in
    increasing external indebtedness.

-- Although BiH's currency board arrangement has stabilized the
    structural reform agenda, it restricts monetary policy
    flexibility.

S&P said, "The moderate external indebtedness of BiH at year-end
2017, compared with that of other sovereigns we rate, reflects the
government's reduced external borrowing due to constrained
financing availability of international concessional inflows and
the resulting investment delays in 2016-2017. In addition, due to
an externally consolidating banking sector in recent years, as
well as increasing levels of foreign exchange reserves in order to
cover monetary liabilities, we position the country's narrow net
external debt at a comfortable 31% of current account receipts in
2017. Nevertheless, even though we expect international
concessional inflows to pick up in 2018-2020, we incorporate an
element of uncertainty to their predictability and note that,
absent such flows, BiH faces external issuance constraints. Even
so, the improved external financing environment will drive an
increase in BiH's external indebtedness, with narrow net external
debt returning to levels over 40% of current account receipts by
2021, according to our forecast.

"We expect imports to increase on the back of externally financed
infrastructure investments. We therefore project a gradual
widening of the current account deficit to more than 7.0% of GDP
in 2021 from 5.2% of GDP in 2017. At the same time, gross exports
continue to grow robustly and the country has enjoyed a record
tourist season in 2017, notably thanks to vacationers from the
Middle East. We estimate debt-creating inflows to pick up
in 2018 to, net of amortization, about 2.1% of GDP together with
net foreign direct investment of 1.9% of GDP, and inflows to the
capital account making up the rest. Further structural reforms in
the business sector could also help attract more FDI, which we
currently project at 2.2% of GDP in 2018-2021."

Financing constraints due to disruption in the EFF program in 2017
prompted the general government to cut public expenditures
markedly, especially on investments, to bring the general
government position into meaningful surplus for the full year.
However, S&P assumes that the fiscal deficit will reach up to
1% of GDP annually over the forecast horizon because of likely
higher spending this year linked to the upcoming election,
increased investments as official funding returns, and pressure on
social security expenditure.

S&P said, "We believe that the constituents' governments would
have access to the domestic capital markets to cover temporary
deficits if there was a disruption in concessional funding
inflows. Importantly, we have seen that, historically, they have
cut investment spending in the absence of concessional inflows,
and we expect them to do so again if needed to balance their
budgets. However, we see BiH's vulnerability to shifts in official
funding as a risk, and we believe external financing pressures
could again heighten if reform progress was derailed, deterring
concessional financing inflows.

"Net general government debt decreased in 2016 and 2017, chiefly
due to availability constraints and delayed investments. However,
we expect it to increase again over our forecast horizon, with net
general government debt climbing to slightly more than 30% of GDP
by 2020. The majority of government debt will continue to be
denominated in foreign currency and primarily concessional. All
revenues from the constituents' governments are collected by
the state-level Independent Taxation Authority (ITA) and
redistributed to the entities net of external debt service on the
basis of a consumption-linked coefficient. BiH's budgetary
procedures thus explicitly prioritize external debt service
payments above all other outlays."

BiH has a currency board regime and its currency, the
konvertibilna marka (BAM), is pegged to the euro. The currency
board contributes to macroeconomic stability and has successfully
contained inflationary pressures, necessary elements for the
implementation of the structural reform agenda. While appropriate
for the country so far, it restricts policy response, in S&P's
view.

S&P said, "We also view the high share of loans denominated in, or
indexed to, foreign currency (more than 50% of total system loans)
as constraining the monetary flexibility of BiH's central bank.
Although reserves covered monetary liabilities through 2017, the
central bank cannot act as a lender of last resort under BiH law.
We understand that BiH is committed to maintaining the
independence of the central bank and preserving the stability of
the currency board, which entails full coverage of the monetary
base by the central bank's foreign currency reserves."

At the same time, BiH's banking system appears relatively well
capitalized and nonperforming loans (overdue 90 days or more) have
decreased to 10.0% of total loans as of December 2017. The
consolidation trend in the banking sector ended at mid-year 2017
and private sector lending has been picking up. This lending has
largely been financed by domestic deposits. Vulnerabilities at
smaller domestic banks with weaker corporate governance practices
have surfaced over the past couple of years, but S&P recognizes
that the recent adoption of new banking legislation in both
entities, in line with EU directives, as a step toward improved
supervision.

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.

RATINGS LIST

                                         Rating       Rating
                                         To           From
  Bosnia and Herzegovina
   Sovereign Credit Rating
    Foreign and Local Currency           B/Stable/B   B/Stable/B
   Transfer & Convertibility Assessment  BB-          BB-



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


HYDROTEC AG: Files for Opening of Insolvency Proceedings
--------------------------------------------------------
Reuters reports that Hydrotec AG has filed for opening of
insolvency proceedings.

Hydrotec AG develops, produces, and distributes technical
solutions and water treatment products worldwide.  The company was
founded in 1985 and is based in Rehau, Germany.



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


CARLYLE EURO 2018-1: S&P Assigns Prelim B- Rating Class E Notes
---------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Carlyle Euro CLO 2018-1 DAC's class A-1, A-2A, A-2B, B, C, D, and
E notes. At closing, Carlyle Euro CLO 2018-1 will also issue an
unrated subordinated class of notes.

Carlyle Euro CLO 2018-1 is a European cash flow collateralized
loan obligation (CLO) transaction, securitizing a portfolio of
primarily senior secured euro-denominated leveraged loans and
bonds issued by European borrowers. CELF Advisors LLP is the
collateral manager.

Under the transaction documents, the rated notes will pay
quarterly interest unless there is a frequency switch event.
Following such an event, the notes will permanently switch to
semiannual payment. The portfolio's reinvestment period will end
approximately four and a half years after closing.

S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average 'B' rating. We consider that the portfolio at
closing will be well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds. Therefore, we have conducted our credit and cash
flow analysis by applying our criteria for corporate cash flow
collateralized debt obligations.

"In our cash flow analysis, we used the EUR400 million target par
amount, the covenanted weighted-average spread (3.60%), the
covenanted weighted-average coupon (4.5%), and the target minimum
weighted-average recovery rates for all rating levels. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category."

Elavon Financial Services DAC, U.K. Branch is the bank account
provider and custodian. At closing, S&P anticipates that the
documented downgrade remedies will be in line with its current
counterparty criteria.

S&P said, "Following the application of our structured finance
ratings above the sovereign criteria, we consider that the
transaction's exposure to country risk is sufficiently mitigated
at the assigned preliminary rating levels.

"At closing, we consider that the issuer will be bankruptcy
remote, in accordance with our legal criteria.

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

RATINGS LIST

  Carlyle Euro CLO 2018-1 DAC
  EUR413.5 mil senior secured floating- and fixed-rate notes
  (including EUR43.1 mil subordinated notes)

                                            Prelim Amount
  Class                 Prelim Rating         (mil. EUR)
  A-1                   AAA (sf)               226.8
  A-2A                  AA (sf)                 42.8
  A-2B                  AA (sf)                 20.0
  B                     A (sf)                  26.8
  C                     BBB (sf)                21.2
  D                     BB (sf)                 20.8
  E                     B- (sf)                 12.0
  Sub                   NR                      43.1

  NR--Not rated


CBL INSURANCE: Central Bank Concerned on Ability to Pay Debt
------------------------------------------------------------
Colm Kelpie at Independent.ie reports that the Central Bank has
said there is now a "significant question" as to the ability of
CBL Insurance Europe (CBLIE) to pay its debts.

Kieran Wallace has now been appointed administrator to the
troubled New Zealand-owned insurer, which has 12,500 policies in
Ireland, Independent.ie discloses.

New Zealand's High Court has placed insurance firm CBL Insurance
Ltd, the main subsidiary of CBL Corporation Ltd, in interim
liquidation after a request from the country's central bank,
Independent.ie relates.

The Central Bank of Ireland has said, in an affidavit published by
the regulator on March 12, that its primary and most urgent
current concern arises as a result of the interim liquidation,
according to Independent.ie.

"There must now be a significant question as to the ability of the
Insurer [CBLIE] to pay its debts, having regard to the extent of
its reliance on the financial position of CBLNZ [CBL Insurance] as
its primary reinsurer," Independent.ie quotes the affidavit as
saying.

"In light of the public nature of the financial difficulties faced
by the CBL Group, the policy holders of the insurer face
considerable uncertainty with regard to the future of the insurer
and its ability to continue to meet its obligations to them."

The Central Bank said it has taken its action to protect CBLIE
policyholders, Independent.ie notes.

It said existing policies continue to remain in force,
Independent.ie relays.

According to Independent.ie, the affidavit said that the regulator
believes CBLIE is in a "financially distressed position" and that
it is "incumbent upon the [Central] Bank to take such action as is
necessary to protect the interests of policyholders and the
integrity of the insurance market within the State."

The Central Bank said it could not support an examinership
petition by CBLIE, Independent.ie relates.

The Central Bank said the administration will protect CBLIE, and
its policy holders, from the risk of insolvency proceedings being
commenced by its creditors, including CBLNZ, Independent.ie
discloses.

"An administration would enable an administrator to take control
of the business of the insurer, and secure its business, assets
and records, so that he can take immediate steps to determine
whether the insurer can be restored to a sound financial footing
and continue as a going concern," Independent.ie quotes the
Central Bank as saying.


EURO CLO 2018-1: Moody's Assigns (P)B2 Rating to Class E Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Carlyle
Euro CLO 2018-1 DAC (the "Issuer"):

-- EUR226,800,000 Class A-1 Senior Secured Floating Rate Notes
    due 2031, Assigned (P)Aaa (sf)

-- EUR42,800,000 Class A-2A Senior Secured Floating Rate Notes
    due 2031, Assigned (P)Aa2 (sf)

-- EUR20,000,000 Class A-2B Senior Secured Fixed Rate Notes due
    2031, Assigned (P)Aa2 (sf)

-- EUR26,800,000 Class B Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)A2 (sf)

-- EUR21,200,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)Baa2 (sf)

-- EUR20,800,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)Ba2 (sf)

-- EUR12,000,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. 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, CELF Advisors LLP
("CELF Advisors"), has sufficient experience and operational
capacity and is capable of managing this CLO.

Carlyle Euro CLO 2018-1 DAC is a managed cash flow CLO. At least
96.0% of the portfolio must consist of senior secured loans and
senior secured bonds and up to 4.0% of the portfolio may consist
of unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to Carlyle
Euro CLO 2018-1 DAC to hold bonds. The portfolio is expected to be
approximately 90% ramped up as of the closing date and to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe.

CELF Advisors 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 4.5-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations, and are subject to certain restrictions.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR43.1M 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. CELF Advisors' investment decisions and
management of the transaction will also affect the notes'
performance.

Loss and Cash Flow Analysis:

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

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

Par amount: EUR400,000,000

Diversity Score: 43

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.60%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 8.5 years.

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

Stress Scenarios:

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

Change in WARF: WARF + 15% (to 3335 from 2900)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

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

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

Class B Senior Secured Deferrable Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: 0

Class E Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3770 from 2900)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

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

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

Class B Senior Secured Deferrable Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes.-1

Class E Senior Secured Deferrable Floating Rate Notes: 0



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


MHP SE: Fitch Affirms 'B' Long-Term IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed MHP SE's Long-Term Foreign-Currency
Issuer Default Rating (IDR) and senior unsecured ratings at 'B'.
The Outlook on the IDR is Stable. The agency has also assigned a
senior unsecured rating of 'B(EXP)' to MHP Lux S.A.'s new up to
USD500 million bond issue announced.

The affirmation reflects continued growth in revenues and profits
at MHP's core business of chicken raising, slaughtering and
marketing, particularly thanks to the successful implementation of
an export-led strategy. In 2017 this compensated for a contraction
in EBITDA from the company's grain-growing operations, which were
affected by a country-wide weak harvest.

Leverage remains conservative despite an increase in capex and
continuing dividend payments. The prospective new Eurobond will
enhance the company's liquidity position and enable it to maintain
a sufficiently strong hard-currency debt service coverage ratio to
justify a rating of one notch above Ukraine's Country Ceiling of
'B-'.

The assignment of the senior unsecured bond final rating is
contingent on the receipt of final documents, along with the
confirmation of amount and pricing in line with Fitch expectations
and information already received.

KEY RATING DRIVERS

Longer Maturities Support Rating: MHP is launching a new up to
USD500 million Eurobond with up to 10 years maturity to lengthen
its debt repayment profile. The company aims to use the proceeds
to tender for most of the outstanding USD500 million Eurobond
maturing in 2020 and raise funds to part-cover its capex.

This, together with other financing transactions concluded in
2017, should contribute to the maintenance of a comfortable
liquidity position. Fitch project that the more comfortable
repayment schedule should enable MHP's hard-currency external debt
service ratio to remain above 1.5x in 2018 and between 1.0x and
1.5x in 2019-2020, continuing to allow MHP's ratings to pierce
Ukraine's Country Ceiling of 'B-' by one notch.

Improving Sales Mix: In 2017, the company further refined its
export strategy, pursuing sales contracts that allow it to
maximise its sales mix by selling higher-value parts of its
chicken into markets that are prepared to pay for them. This,
combined with price increases in Ukraine, meant MHP's core chicken
operations achieved higher EBITDA/kg in US dollar terms, and the
unit's EBITDA rose significantly to USD338 million from USD264
million in 2016. Exports have now reached 57% of MHP's sales and
will continue to increase as new capacity is added at the
Vinnytsia plant.

Above-Peers EBITDA Margin:  Fitch do not view the high EBITDA
margin achieved in 2017 as repeatable and project that this margin
should trend towards 30.8% in 2020-2021, from 34% in 2017. The
lower EBITDA margin will result from above-inflation poultry
production cost increases and a drop in government support in
2018. However, MHP should maintain its EBITDA margins above those
of international peers in the meat-processing industry thanks to
its integrated business model and the growing proportion of
exports to EU countries.

Government Support Abates: MHP received USD53 million in subsidies
in 2017. This was higher than in 2016 but materially lower than
amounts received historically. The Ukrainian government continues
to review its financial support to the agricultural industry due
to its budget constraints. Therefore Fitch do not factor in any
subsidies from 2018 onwards. Nevertheless, Fitch project that MHP
should compensate for the adverse effect on its EBITDA due to
growing poultry exports as new production capacity ramps up.

Varying FCF Position: Fitch calculates that 2017 free cash flow
(FCF) generation was around USD40 million. Fitch expect MHP to
generate negative FCF in 2018 as a result of the increase in capex
for the new production lines in the Vinnytsia poultry complex in
2018-2019, but FCF should turn positive in 2019 as production
increases. Overall Fitch view pre-dividends FCF as strong. Fitch
also believe there is some scope for reducing future distributions
to shareholders or delaying expansion capex if operating
underperformance occurs.

Continuing FX Mismatch: The FX mismatch continues to weigh on
MHP's credit profile, as the company's debt of USD1.2 billion at
end-2017 is mainly denominated in US dollars and euros, while
domestic operations accounted for 43% of revenue in 2017. Fitch do
not expect a material reduction in FX risks over the medium term,
although poultry exports should continue to grow, particularly
once the planned extension of production capacity is completed
between 2018 and 2020.

Average Recoveries for Unsecured Bondholders: Ratings of senior
unsecured Eurobonds are aligned with MHP's Long-Term IDR of 'B',
reflecting average recovery prospects given default. Fitch treats
Eurobonds pari passu with other senior unsecured debt of the
group, which is raised primarily by operating companies, despite
being issued by the holding company. There are no structural
subordination issues, as the Eurobond is covered by suretyships
from operating companies, together accounting for around 90% of
the group's EBITDA in 2017.

Strong Parent-Subsidiary Links: The Long-Term IDRs of PJSC
Myronivsky Hliboproduct, MHP SE's 99.9% owned subsidiary, are
equalised with those of the parent, due to strong strategic and
legal ties between the companies. Myronivsky Hliboproduct is a
marketing and sales company for goods produced by the group in
Ukraine. The strong legal links with the rest of the group are
ensured by the presence of cross-default/cross-acceleration
provisions in Myronivsky Hliboproduct's major loan agreements and
suretyships from operating companies generating a substantial
portion of the group's EBITDA.

DERIVATION SUMMARY

MHP has smaller business size and weaker ranking on a global scale
than international meat processors BRF S.A. (BBB-/Stable), Tyson
Foods Inc. (BBB/Stable) and Smithfield Foods Inc. (BBB/Stable).
MHP has similar credit metrics and vertically integrated business
model to the largest Russian pork producer, Agri Business Holding
Miratorg LLC (B+/Stable). MHP's business profile is slightly
stronger than Miratorg's due to access to export markets, but this
is offset by higher exposure to FX risks. In addition, MHP's
Local-Currency IDR is constrained by the fact that most of its
operations take place in Ukraine, which has a sovereign Local-
Currency IDR of 'B-'.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

- EBITDA margin trending towards 30.8% in 2018-2021

- Average hryvnia/US dollar exchange rate at 28.9 in 2018, 31.0
   in 2019, 32.9 in 2020 and 34.5 in 2021

- 8% CAGR in chicken meat production volume, driven by the
   expansion of the Vinnytsia complex

- Revenues from export of poultry products increasing towards
   48% of total sales in 2021, absorbing the majority of
   production volume growth

- No government grants or VAT discounts from 2018 onwards

- Capex at 15%-20% in 2018-2019 due to the development of the
   Vinnytsia complex, at 9% of sales thereafter

- Cash held offshore equal to 70% of total cash

- Dividends of USD80 million a year in 2018-2021

RATING SENSITIVITIES

For Local-Currency IDR

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

- Improved operating environment in Ukraine reflected in a
   higher sovereign Local-Currency IDR

- Reduction in MHP's dependence on the local economy as measured
   by material decrease in proportion of domestic sales in
   revenues

- In both cases, upgrade would be subject to maintenance of
   adequate liquidity and FFO adjusted leverage sustainably below
   3.5x.

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

- FFO adjusted leverage above 4.5x and FFO fixed-charge cover
   below 2.0x on a sustained basis

- Liquidity ratio below 1x on a sustained basis coupled with
   deteriorated access to external funding

For Foreign-Currency IDR:

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

- Hard-currency debt service ratio above 1.5x over the rating
   horizon, as calculated in accordance with Fitch's methodology
   "Rating Non-Financial Corporates Above the Country Ceiling"

- Ukraine's Country Ceiling being raised to 'B+' or above

In both cases, upgrade would be subject to maintenance of adequate
liquidity and FFO adjusted leverage sustainably below 3.5x.

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

- FFO adjusted leverage above 4.5x and FFO fixed-charge cover
   below 2.0x on a sustained basis

- Liquidity ratio below 1x on a sustained basis coupled with
   deteriorated access to external funding

- Hard-currency debt service ratio below 1x over the rating
   horizon

LIQUIDITY

Improved Debt Maturity Profile: The new USD500 million Eurobond
will allow for an extension of the average debt maturity profile
as Fitch expect most of the proceeds to be used to repay the
outstanding USD495.6 million Eurobond maturing in 2020. In
addition, at end-2017 the company had USD100 million Fitch-
calculated readily available cash, along with USD130 million
committed bank lines. This represents enough funding to cover
short-term debt and finance the sunflower crushing cycle to
produce fodder as animal feed.

FULL LIST OF RATING ACTIONS

MHP SE:

-- Long-Term Foreign-Currency IDR: affirmed at 'B', Stable
    Outlook
-- Long-Term Local-Currency IDR: affirmed at 'B', Stable Outlook
-- Foreign-currency senior unsecured rating: affirmed at 'B';
    Recovery Rating of 'RR4'

PJSC Myronivsky Hliboproduct (99.9% owned subsidiary of MHP SE)

-- Long-Term Foreign-Currency IDR: affirmed at 'B', Stable
    Outlook
-- Long-Term Local-Currency IDR: affirmed at 'B', Stable Outlook
-- National Long-Term Rating: affirmed at 'AA+(ukr)', Stable
    Outlook

MHP Lux S.A.:

-- Foreign-currency senior unsecured rating: assigned 'B(EXP)';
    Recovery Rating of 'RR4'


MHP SE: S&P Rates New US$500MM Senior Unsecured Eurobond 'B'
------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating to the senior
unsecured Eurobond to be issued by MHP Lux SA, a financing vehicle
of Ukrainian-based poultry producer MHP SE. The proposed Eurobond
will be fully and unconditionally guaranteed by MHP.

S&P understands the proposed Eurobond will amount to about US$500
million, and that the group will use the cash proceeds mainly for
general purposes, including the refinancing of its Eurobond
maturing 2020.

S&P said, "The 'B' issue rating reflects our assessment that the
existing and proposed senior unsecured Eurobond issued by MHP Lux
has limited structural subordination within the group's capital
structure.

"Despite the debt increase, we assume that MHP's credit metrics
should not materially deviate from our current base-case
projections, given that a major part of the proceeds are earmarked
for debt repayment."



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


DRYDEN 59: Moody's Assigns (P)B2 Rating to Class F Notes
--------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Dryden 59
Euro CLO 2017 B.V.

-- EUR294,500,000 Class A Senior Secured Floating Rate Notes due
    2032, Assigned (P)Aaa (sf)

-- EUR37,400,000 Class B Senior Secured Fixed Rate Notes due
    2032, Assigned (P)Aa2 (sf)

-- EUR29,000,000 Class C-1 Mezzanine Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)A2 (sf)

-- EUR31,000,000 Class D-1 Mezzanine Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Baa2 (sf)

-- EUR35,600,000 Class E Mezzanine Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)Ba2 (sf)

-- EUR11,875,000 Class F Mezzanine Secured Deferrable Floating
    Rate Notes due 2032, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale of
financial instruments, but these ratings only represent Moody's
preliminary credit opinions. Upon a conclusive review of a
transaction and associated documentation, Moody's will 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 2032. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's is
of the opinion that the collateral manager, PGIM Limited has
sufficient experience and operational capacity and is capable of
managing this CLO.

Dryden 59 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 80% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

PGIM Limited 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 and a half
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk and credit improved
obligations, and are subject to certain restrictions.

In addition to the six classes of notes rated by Moody's, the
Issuer will issue EUR48.6M 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. PGIM Limited's 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: EUR475,000,000

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2820

Weighted Average Spread (WAS): 3.4%

Weighted Average Coupon (WAC): 4.0%

Weighted Average Recovery Rate (WARR): 41.0%

Weighted Average Life (WAL): 8.75 years (8.0 years initially)

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's have addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. For countries which are not member of the
European Union, the foreign currency country risk ceiling applies
at the same levels under this transaction. Following the effective
date, and given the portfolio constraints and the current
sovereign ratings in Europe, such exposure may not exceed 15% of
the total portfolio. As a result and in conjunction with the
current foreign government bond ratings of the eligible countries,
as a worst case scenario, a maximum 10% of the pool would be
domiciled in countries with local or foreign currency country
ceiling of A1 or lower, a maximum 5% of the pool would be
domiciled in countries with local or foreign currency country
ceiling of Baa1 or lower. The remainder of the pool will be
domiciled in countries which currently have a local or foreign
currency country ceiling of Aaa or Aa1 to Aa3. Given this
portfolio composition, the model was run with different target par
amounts depending on the target rating of each class as further
described in the methodology. The portfolio haircuts are a
function of the exposure size to peripheral countries and the
target ratings of the rated notes and amount to 0.75% for the
Class A notes, 0.5% for the Class B, 0.375% for the Class C-1, and
0% for Class D-1,Class E and F notes.

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 3243 from 2820)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

Class B Senior Secured Fixed Rate Notes: -2

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

Class D-1 Mezzanine Secured Deferrable Floating Rate Notes: -2

Class E Mezzanine Secured Deferrable Floating Rate Notes: -1

Class F Mezzanine Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3666 from 2820)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

Class B Senior Secured Fixed Rate Notes: -3

Class C-1 Mezzanine Secured Deferrable Floating Rate Notes: -3

Class D-1 Mezzanine Secured Deferrable Floating Rate Notes: -2

Class E Mezzanine Secured Deferrable Floating Rate Notes: -2

Class F Mezzanine Secured Deferrable Floating Rate Notes: -3



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


FTPYME TDA 4: Fitch Affirms 'C' Rating on Class D Notes
-------------------------------------------------------
Fitch Ratings has upgraded FTPYME TDA CAM 4's class B notes and
affirmed the others:

Class A2: affirmed at 'Asf'; Outlook Stable
Class A3(CA): affirmed at 'Asf'; Outlook Stable
Class B: upgraded to 'Asf' from 'BB+sf'; Outlook Stable
Class C: affirmed at 'CCsf'; Recovery Estimate (RE) increased to
  80% from 60%
Class D: affirmed at 'Csf'; RE 0%

FTPYME TDA CAM 4, FTA, is a granular cash flow securitisation of a
static portfolio of secured and unsecured loans granted to Spanish
small- and medium-sized enterprises by Caja de Ahorro del
Mediterraneo (now part of Banco de Sabadell).

KEY RATING DRIVERS

Good Portfolio Performance
Thanks to the relative few new defaults, the transaction has
recovered from the significant under-collateralisation of past
years, and the reserve fund has started to replenish, albeit
significantly below its target level of EUR29.3 million.

Continued Deleveraging
The pari-passu class A2 and A3(CA) notes have received EUR34
million of principal proceeds between them in the last 12 months.
Consequently, and also thanks to the end of the transaction's
under-collateralisation, credit enhancement has increased for all
notes over the same period.

Low, Stable Delinquencies
Loans in arrears of more than 90 days account for 0.4% of the
portfolio, the same level as one year ago. Delinquencies have been
declining from a peak in early 2013 and have been at low levels
for the last three years.

Note Interest Deferral
Payment of the class C notes' interest is currently subordinated
to principal repayment on the notes in the transaction's combined
waterfall due to the breach of the relevant cumulative default
trigger. Due to the good asset performance, the class C notes have
repaid in full previously unpaid interest (EUR1.0 million as at
the last annual review). However, the class C notes' credit
enhancement remains dependent on the replenishment of the reserve
fund, which Fitch does not expect to last for a sufficient time to
avoid the notes' default.

Given limited headroom on the class B interest deferral trigger,
Fitch views it likely that interest on the class B notes will also
be deferred in the near future. The cumulative default trigger as
per initial balance is 8%, and the current level is 7.8%. However,
thanks to the good asset performance and short remaining life of
class A notes, Fitch does not expect the class B notes to miss
interest payments, and has therefore upgraded the notes to to
'Asf' from 'BB+sf'.

Payment Interruption Risk
The highest achievable note rating in this transaction is capped
at 'Asf' due to exposure to payment interruption risk. The reserve
fund remains almost depleted and so the structure would lack a
source of liquidity, should the servicer default. The class D
notes were issued to fund the reserve account and have been
affirmed at 'Csf', as Fitch does not expect the reserve fund to be
replenished back to its target amount before the maturity of the
notes.

RATING SENSITIVITIES

A 25% increase in the obligor default probability or a 25%
reduction in expected recovery rates would not lead to a downgrade
of the notes.



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


ISTANBUL: Moody's Lowers Long-Term Issuer Ratings to Ba2
--------------------------------------------------------
Moody's Public Sector Europe (MPSE) has downgraded to Ba2 from Ba1
the long-term issuer ratings of the Metropolitan Municipalities of
Istanbul and Izmir, as well as the long-term issuer rating of
Turkey's Housing Development Administration (Toplu Konut Idaresi
Baskanligi, TOKI). Moody's has affirmed the existing National
Scale Ratings (NSRs) of Aaa.tr on Izmir and TOKI. The outlook on
the ratings changes to stable from negative.

The rating action reflects Moody's assessment of the heightened
systemic risk for Turkish sub-sovereigns due to their close
operational and financial linkages with the Turkish government. In
addition, institutional linkages intensify the close ties between
the two levels of government through the sovereign's ability to
change the institutional framework under which Turkey's sub-
sovereigns operate.

The downgrade of the ratings on the metropolitan municipalities of
Istanbul and Izmir also reflects the lack of special status, which
prevents the municipalities from being rated above the sovereign.
Metropolitan municipalities in Turkey, including Istanbul and
Izmir, cannot act independently from the sovereign and do not have
enough financial flexibility to permit their credit quality to be
stronger than that of the sovereign.

RATINGS RATIONALE

- ISTANBUL AND IZMIR -

The decision to downgrade the issuer ratings of Istanbul and Izmir
takes into account the fact that they:

1) Are highly reliant on central government shared taxes and are
subject to potential changes in legislation, such as tax
redistribution. The metropolitan municipalities of Istanbul and
Izmir derive between 75%-80% of their operating revenues from
central government shared taxes.

2) Are strongly dependent on the sovereign's macroeconomic and
operating environment. Istanbul and Izmir's local economic bases
are heavily integrated with that of the national economy.

3) Are exposed to increased debt service costs arising from the
depreciation of the Turkish lira, especially for Istanbul, which
has a high proportion of FX-denominated debt.

Offsetting these factors, Istanbul's large and dynamic economy and
sound financials will continue to underpin its Ba2 rating and
Moody's expects it will continue to translate into adequate
budgetary resources available for financing public service
operations and capital investments -- a lingering source of
pressure for the municipal budget.

Similarly, Izmir's Ba2 ratings continue to reflect the city's
dynamic economy, although it is smaller than that of Istanbul, as
well as its solid budgetary performances and prudent financial
management.

- TOPLU KONUT IDARESI BASKANLIGI (TOKI) -

The decision to downgrade the issuer rating of TOKI to Ba2 from
Ba1 with a stable outlook reflects the very strong linkages
between TOKI and its support provider, the Government of Turkey.
It also takes into account (1) the credit profile of TOKI, which
in Moody's view, is closely linked to that of its owner, (2) its
clear public policy mandate and its key role in the development of
the National Urbanization and Social Housing Production Plan, and
(3) Moody's assessment of the very high likelihood that the
central government would provide timely support should the entity
face acute liquidity stress.

RATIONALE FOR THE CHANGES IN OUTLOOK TO STABLE

The stabilization of the outlook on the ratings reflects the
stable outlook on the sovereign rating. It also takes into account
Moody's expectations of continued robust financial performances of
the metropolitan municipalities of Istanbul and Izmir, their
adequate liquidity position, and manageable debt burden.

WHAT COULD MOVE THE RATINGS UP/DOWN

An upgrade of the sub-sovereigns' ratings will require a similar
change in Turkey's sovereign rating.

A downgrade of Turkey's sovereign rating would lead to a downgrade
of the sub-sovereigns' ratings, given their close institutional,
operational and financial linkages. For Istanbul, downward ratings
pressure may also arise from a sustained growth in debt and debt
servicing costs.

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

Sovereign Issuer: Turkey, Government of

GDP per capita (PPP basis, US$): 24,986 (2016 Actual) (also known
as Per Capita Income)

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

Inflation Rate (CPI, % change Dec/Dec): 8.5% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -1.7% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -3.8% (2016 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: Moderate level of economic
resilience

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

On March 6, 2018, a rating committee was called to discuss the
rating of Istanbul, Metropolitan Municipality of; Izmir,
Metropolitan Municipality of; and Toplu Konut Idaresi Baskanligi.
The main points raised during the discussion were: The systemic
risk in which the issuer operates has materially increased.

The principal methodology used in rating Izmir, Metropolitan
Municipality of and Istanbul, Metropolitan Municipality of was
Regional and Local Governments published in January 2018.The
principal methodology used in rating Toplu Konut Idaresi
Baskanligi was Government-Related Issuers published in August
2017.


MERSIN ULUSLARARASI: Moody's Cuts Rating on US$450MM Bond to Ba1
----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
senior unsecured rating of Mersin Uluslararasi Liman Isletmeciligi
A.S. (MIP)'s US$450 million bond. Concurrently, MIP's Baa3 issuer
rating has been withdrawn and a Corporate Family Rating (CFR) of
Ba1 and a Probability of Default Rating of Ba1-PD have been
assigned to MIP. The rating outlook has changed to stable from
negative.

RATINGS RATIONALE

In spite of its strong operating performance and relatively low
leverage, Moody's do not currently expect MIP to be rated more
than one notch higher than the sovereign rating of the country in
which it is domiciled, given the multiple channels of contagion
that exist between sovereign and corporate issuers. As a
consequence, the downgrade in Turkey's rating has resulted in a
downgrade of MIP's rating.

MIP's Ba1 CFR reflects a Probability of Default Rating of Ba1-PD
and a 50% Family-wide loss given default assumption. The CFR is an
opinion of MIP's ability to honour its financial obligations and
is assigned to MIP as if it had a single class of debt. The Ba1 /
LGD4 rating assigned to the USD450 million senior unsecured bond
reflects the bonds' pari-passu ranking among MIP's other debt and
debt-like liabilities.

MIP's Ba1 CFR reflects positively (1) MIP's very strong
competitive position serving an extensive hinterland; (2) the
supportive long-term concession agreement under which it operates;
(3) the strong operational support from its 51% owner, PSA
International Pte Ltd. and (4) a prudent financial policy.

However, the CFR also reflects the following challenges: (1) MIP's
high exposure to container volume variations and (2) capital
expenditure, albeit modest, that is key to adapting to trends in
the shipping industry but which also suggests higher exposure to
more volatile and less profitable transhipment volumes in the
future.

MIP's ratings are one notch higher than the rating of the
Government of Turkey because (1) a significant element of MIP's
revenue derives from overseas markets, (2) it has minimal exposure
to local debt markets over the short to medium term, and (3) the
ownership of 51% of MIP by a strong overseas shareholder, PSA
International Pte. Ltd. (PSA; Aa1, Stable) of Singapore, affords
the possibility of external support if the shareholder felt this
was appropriate. Nevertheless, MIP's credit ratings are
constrained by the rating of the Government of Turkey.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that MIP's volumes
will continue to grow, aided by its balanced mix of import and
export trade that confers a natural hedge against currency
fluctuations. The outlook also reflects the stable outlook on the
rating of the government of Turkey, given that Moody's do not
expect the company to be rated more than one notch higher than the
rating of the Government of Turkey.

WHAT COULD CHANGE THE RATING UP / DOWN

Moody's sees little potential for upward pressure on the ratings
absent an upgrade in the sovereign rating.

The ratings could come under downward pressure if MIP's Funds From
Operations (FFO) / Debt were to be below the mid-teens in
percentage terms or if its FFO interest cover ratio were to fall
below 3.0x on a sustained basis. Moody's could also downgrade the
rating in the event that PSA decides to reduce its ownership
interest in MIP or if MIP's concession agreement is at risk of
being terminated for whatever reason. A downgrade of the rating of
the Government of Turkey could also lead to a downgrade of MIP's
ratings.

The principal methodology used in these ratings was Privately
Managed Port Companies published in September 2016.

CORPORATE PROFILE

Mersin Uluslararasi Liman Isletmeciligi A.S. holds the concession
for the operation of Mersin Port, one of the largest port
terminals by both tonnage and import/export container throughput
in Turkey. The port is located on the south eastern coast of
Turkey in Mersin and close to Adana, both of which are large
regional cities, and derives its revenues from a full range of
port services, including container terminal services (76% of 2016
revenues), conventional cargo services (16% of 2016 revenues), and
towage and pilotage services (8% of 2016 revenues).


TURKEY: Moody's Takes Rating Actions on 17 Banks
------------------------------------------------
Moody's Investors Service has taken rating actions on 17 Turkish
banks. The long-term ratings of 14 banks were downgraded while the
rating of 3 other banks were affirmed. The outlook on 12 banks was
changed to stable from negative whilst the outlook on five other
banks remains negative.

                                     Baseline Credit Assessment
  Bank                                Former  Post Latest Rating
  ----                                ------  ------------------
Turkiye Is Bankasi A.S.               ba2           ba3
T.C. Ziraat Bankasi                   ba2           ba3
Turkiye Garanti Bankasi A.S.          ba2           ba3
Akbank TAS                            ba2           ba3
Yapi ve Kredi Bankasi A.S.            ba2           ba3
Turkiye Vakiflar Bankasi TAO          ba2           b1
Turkiye Halk Bankasi A.S.             b1            b2
Turk Ekonomi Bankasi A.S.             ba3           ba3
ING Bank A.S. (Turkey)                b1            b1
Sekerbank T.A.S.                      b2            b2
Turkiye Sinai Kalkinma Bankasi A.S.   ba2           ba3
Alternatifbank A.S.                   b1            b1
Export Credit Bank of Turkey A.S.     ba2           ba3
QNB Finansbank AS                     ba3           ba3
HSBC Bank A.S. (Turkey)               b2            b2
Denizbank A.S.                        ba3           ba3
Odea Bank A.S.                        ba3           ba3

The rating actions were driven by (1) the weakened capacity of the
Turkish government to provide support to the country's banks,
reflected in the downgrade of Turkey's government debt rating to
Ba2 with stable outlook from Ba1 with negative outlook on 7 March,
2018; (2) Moody's lowering of its Macro Profile for Turkey to
Weak+ from Moderate- and (3) its view that the operating
environment in Turkey will become more challenging in 2018.

The downgrade of Turkey's government debt rating was driven by
Moody's view of (1) the continued loss of institutional strength
and (2) the increased risk of an external shock crystallising.

RATINGS RATIONALE

A list of the Affected Credit Ratings is available at
http://bit.ly/2phK1jJThis list is an integral part of this Press
Release and provides, for each of the credit ratings covered,
Moody's disclosures on the following items:

* Principal Methodology

WEAKENED GOVERNMENT CAPACITY TO SUPPORT

Moody's says that there has been a weakening of the Turkish
government's capacity to provide support to the country's banks in
case of need, as reflected in the downgrade to Ba2 from Ba1 of the
government's debt rating. Although Moody's now incorporates one or
two notches of government support for 7 government-owned and
systemically important banks, their long-term deposit ratings have
been downgraded by one notch and the outlooks changed to stable
from negative, in line with the downgrade of the sovereign rating.

The rating agency also notes that the sovereign rating action
takes into account the government's limited foreign currency
resources, with the Central Bank's net foreign currency reserves
reducing to USD27 billion at year-end 2017 (from approximately
USD38.5 billion at end-January 2017). This compares to about USD78
billion of banking system short-term wholesale FX refinancing
needs, which could result in the country's authorities becoming
more selective in providing support to the banking system in a
stress scenario.

LOWER MACRO PROFILE

Moody's says that a key driver for the lowering of Turkish banks'
BCAs is the lowering of its Macro Profile for Turkey. This was
driven by the following considerations, which underlie the
downgrade of the sovereign rating:

1) The continued loss of institutional strength, as evidenced for
example by further erosion in the effectiveness of monetary
policy;

2) The increased risk of an external shock crystallising, in the
context of heightened political risk and rising global interest
rates.

Moody's has captured the impact that these developments may have
on the Turkish banks, through the sovereign factors incorporated
in its Banking Country Risk assessment, resulting in a lowering of
the Macro Profile it assigns to Turkey to Weak+ from
Moderate-.

DOMESTIC OPERATING ENVIRONMENT WILL BECOME MORE CHALLENGING IN
2018

Moody's acknowledges Turkey's strong GDP growth at an estimated
rate of nearly 7% in 2017 and Turkish banks' improved
profitability and asset quality trends. The banking system
reported low problem loans of 3% of gross loans as at end-2017,
however this was supported by high loan growth of 21%, driven by
government stimulus measures and, to some extent, relaxation of
regulatory standards. Banks reported good profitability (16%
return on average equity), adequate capital (c.17% Capital
Adequacy Ratio) and unconstrained access to foreign exchange (FX)
funding.

Moody's says it however expects that the operating environment
will become less supportive in the coming year, with GDP growth
slowing to 4.0% in 2018, high inflation which is unlikely to fall
to single digit, high unemployment, particularly among younger
people, continued political risk and a weak investment climate
affecting the standalone credit strength of the Turkish banks.

Specifically Moody's expects that the competitive dynamics will
increase pressure on domestic funding costs, increasing pressure
on net interest margins. At the same time it expects asset quality
to deteriorate, as high corporate FX exposures, the weakening of
the construction sector and the difficulties of some large
borrowers will likely lead to higher levels of problem loans.

Turkish banks continue to have a significant dependence on
wholesale FX funding, given a high system-wide loan to deposit
ratio of 126% at end-2017. Moody's estimates that the banking
system's short-term FX wholesale refinancing needs are around
USD78 billion, about 50% of total FX wholesale funding. This makes
the banking system particularly sensitive to potential shifts in
investor sentiment, as these foreign currency liabilities must be
refinanced on an ongoing basis. Moody's considers that an
increased risk of an external shock means that the banking system
is more susceptible to a loss of investor confidence. In such a
scenario, banks would be forced to reduce lending to the economy,
with negative effects on asset quality, profitability and
ultimately capital.

Capital ratios also remain vulnerable to: 1) further currency
depreciation, as about 39% of the institutions' assets are in
foreign currencies, while Tier 1 capital buffers held against
these assets are in Turkish liras; and 2) lending growth above the
internal capital creation rates, as occurred in 2017.

RATIONALE OF THE OUTLOOK CHANGES

The change of outlook to stable from negative of 12 Turkish banks
is driven by the change of outlook to stable from negative of
Turkey's sovereign debt rating of Ba2. Five other banks continue
to have a negative outlook for bank-specific considerations
(details below).

These banks' ratings already incorporate Moody's expectations of a
weakening of financial fundamentals.

FOREIGN BANKS' AFFILIATE SUPPORT CONSIDERATIONS

Moody's considers that, despite the adverse operating environment,
existing support assumptions regarding parent companies' capacity
and willingness to provide support remain correctly positioned and
are unaffected by this rating action. As a result, nine Turkish
subsidiaries of foreign banks continue to benefit from an uplift
above their BCA in the range of 1-3 notches.

WHAT COULD MOVE THE RATINGS UP/DOWN

The standalone BCAs could be upgraded if banks 1) improve their
loan to deposit ratios to more sustainable levels; 2) are able to
maintain the strong 2017 performance when the economic stimulus
and regulatory relaxation are withdrawn and 3) the operating
environment improves.

Conversely, the BCAs could be downgraded if the deterioration in
the operating environment leads to a significant weakening in
refinancing capability, asset quality and capital of the banks.

Long-term deposit or debt ratings, which incorporate an uplift
from government support, could be affected by changes in the
sovereign rating, Moody's views on the government's willingness to
provide support, or sovereign ceilings.

Similarly, long-term deposit and debt ratings incorporating uplift
from affiliate support could also be affected if Moody's views of
parental rating and/or support incorporated into the ratings
change. This could reflect a deterioration of operating conditions
in Turkey leading to a parent having a lower incentive to provide
support to subsidiaries in the country.

BANKS' RATINGS RATIONALE

Turkiye Is Bankasi A.S. (Isbank)

The long-term foreign currency senior unsecured debt and local
currency deposit ratings of Isbank were downgraded to Ba2 from
Ba1, with negative outlook. The bank's long-term foreign currency
deposit rating was downgraded to Ba3 from Ba2 (constrained by the
lower sovereign ceiling at Ba3). The BCA was downgraded to ba3
from ba2.

The principal drivers for the rating action are the downgrade of
the Turkish sovereign rating to Ba2 from Ba1 and foreign currency
deposit ceiling to Ba3 from Ba2 and lowering the bank's standalone
BCA.

While Moody's continues to assume a high probability of support,
given the systemic importance of Isbank as Turkey's largest
private-sector institution, the rating action reflects a potential
weakening in the government's capacity to provide support in case
of need, as signaled by the downgrade of the sovereign rating.

Moody's also downgraded Isbank's standalone BCA to ba3 from ba2
because of the sensitivity of its standalone credit profile to the
weakened operating environment as expressed in the lower Macro
Profile for Turkey. Moody's expects the bank's asset quality to
come under further pressure albeit from a low level of problem
loans at 2% of total loans as at end-2017. The bank's
capitalisation has declined for the last three years with Moody's
adjusted Tangible Common Equity ratio at 8.7% as at end-2017 vs.
9.45% as at end-2014. At the same time, the bank maintains a high
level of provisioning coverage and, consequently, risk absorption
capacity, which is in line with other leading Turkish banks. The
bank has a proven track-record of refinancing its wholesale
liabilities (market funds at 29% of tangible banking assets as at
end-2017) during challenging periods and large holdings of liquid
assets also mitigate the bank's refinancing risk while its
profitability remains adequate.

The negative outlook on the long-term senior unsecured debt and
deposit ratings is due Moody's expectation that the challenging
operating environment could further weaken the bank's standalone
credit profile.

T.C. Ziraat Bankasi (Ziraat)

The long-term foreign currency senior unsecured debt and local
currency deposit ratings of Ziraat were downgraded to Ba2 from
Ba1, and the outlook changed to stable from negative. The bank's
long-term foreign currency deposit rating was downgraded to Ba3
from Ba2 (constrained by the lower sovereign ceiling at Ba3), and
the outlook changed to stable from negative. The BCA was
downgraded to ba3 from ba2.

The principal driver for the rating action is the downgrade of the
sovereign rating to Ba2 with stable outlook from Ba1 from negative
outlook and the lowering of foreign currency deposit ceiling to
Ba3 from Ba2. While Moody's continues to assume a very high
probability of support for this fully government-owned bank, the
rating action reflects a weakening in the government's capacity to
provide support in case of need, as signaled by the downgrade of
the sovereign rating. The stable outlook on Ziraat's long-term
senior unsecured debt and deposit ratings is consistent with the
outlook on Turkish sovereign rating.

Moody's has also downgraded Ziraat's standalone BCA to ba3 from
ba2 because of the sensitivity of its standalone credit profile to
the weakened operating environment as expressed in the lower Macro
Profile for Turkey. Moody's expects the bank's asset quality to
deteriorate gradually, albeit from a very low level of problem
loans at 1.6% of total loans at September-2017, putting pressure
on its currently strong net profitability. Ziraat's capitalisation
(Moody's adjusted Tangible Common Equity ratio of 11.2% at
September-2017) may come under pressure due to rapid loan growth
and/or foreign currency volatility. Ziraat's dependence on
wholesale funding, has increased in recent years (market funds at
26% of tangible banking assets at September 2017) although
mitigated by ample liquid resources (with liquid assets at 30% of
tangible banking assets at September 2017).

Turkiye Garanti Bankasi A.S. (Garanti)

The long-term foreign and local currency senior unsecured debt and
local currency deposit ratings of Garanti were downgraded to Ba2
from Ba1, and the outlook changed to stable from negative. The
bank's foreign currency deposit rating was downgraded to Ba3 from
Ba2 (constrained by the lower sovereign ceiling at Ba3), and the
outlook changed to stable from negative. The BCA was downgraded to
ba3 from ba2.

The principal driver for the downgrade is the impact of the
weakened operating environment on Garanti's standalone financial
fundamentals, as expressed in the lower Macro Profile for Turkey.
Moody's expects the bank's asset quality to weaken from a low
level at 2.54% as at end-2017. At the same time, Moody's
acknowledges that the bank's profitability remains strong despite
economic slow-down and headwinds from the operating environment.
Although the bank's capitalisation is exposed to the currency
depreciation it is one of the strongest among similarly-rated
peers, with Moody's adjusted Tangible Common Equity at 12.8% as at
end-2017. Garanti's market funding reliance is broadly in line
with the Turkish peers with market funds at 26% of tangible
banking assets as at end-2017. However, Moody's notes that the
bank has demonstrated its ability to refinance its wholesale
liabilities during challenging periods.

The stable outlook is due to the resilience of the bank's
standalone financial fundamentals to further expected volatility
in the operating environment.

Garanti's long-term ratings continue to incorporate a moderate
probability of affiliate support from Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA) (A3 LT bank deposits stable, BCA baa2)
leading to a one notch uplift from its standalone BCA. The current
government support assumptions do not result in any additional
uplift for the bank's long-term ratings.

Akbank TAS (Akbank)

The long-term foreign currency senior unsecured debt and local
currency deposit ratings of Akbank were downgraded to Ba2 from Ba1
and the outlook changed to stable from negative. The bank's long-
term foreign currency deposit rating was downgraded to Ba3 from
Ba2 (constrained by the lower sovereign ceiling at Ba3), and the
outlook changed to stable from negative. The BCA was downgraded to
ba3 from ba2.

Moody's says the principal driver for the rating action is the
downgrade of the Turkish government's debt rating to Ba2 with
stable outlook from Ba1 with negative outlook and the lowering of
foreign currency deposit ceiling to Ba3 from Ba2. While Moody's
continues to assume a high probability of support for this
systemically important bank, leading to one notch of uplift for
the debt and local currency deposit ratings, the rating action
reflects a weakening in the government's capacity to provide
support in case of need, as signalled by the downgrade of the
sovereign rating. The stable outlook on Akbank's long-term ratings
is consistent with the outlook on the sovereign rating. The stable
outlook also reflects the fact that Akbank's ratings already
incorporate Moody's expectations of a weakening of financial
fundamentals.

The rating agency has downgraded Akbank's standalone BCA because
of the sensitivity of Akbank's standalone credit profile to the
challenging operating environment, particularly its asset quality
and funding. Moody's expects the bank's asset quality to weaken
from a low level of problem loans (at 2.1% of gross loans at end-
2017), dampening its strong net profitability. The bank's loss
absorption capacity is supported by high provisioning coverage and
good capitalisation. Akbank's capitalisation has slightly weakened
for the last three years (Moody's adjusted Tangible Common Equity
ratio has declined from 13.1%% at end-2015 to 12.5% at end-2017)
and may decline further due to loan growth and/or foreign currency
volatility. Akbank's dependence on wholesale funding remains
significant, with market funds at 29% of tangible banking assets,
but with manageable refinancing risk.

Yapi ve Kredi Bankasi A.S. (YapiKredi)

The long-term foreign currency senior unsecured debt and local
currency deposit ratings of YapiKredi were downgraded to Ba2 from
Ba1, with negative outlook. The bank's long-term foreign currency
deposit rating was downgraded to Ba3 from Ba2, with negative
outlook (constrained by the lower sovereign ceiling at Ba3). The
BCA was downgraded to ba3 from ba2.

The principal driver for the downgrade is the impact of the
weakened operating environment on YapiKredi's standalone financial
fundamentals, as expressed in the lower Macro Profile for Turkey.
Despite the improving trends in 2017, Moody's expects the bank's
asset quality to weaken given its exposure to the unsecured retail
segment. With problem loans as percentage of total loans at 4.1%
as at end-2017 the bank's asset quality remains weaker compared
with the leading Turkish banks. The bank's capitalisation is
sensitive to foreign currency devaluation with Tangible Common
Equity ratio at 9.2% as at end-2017 and weaker compared with other
leading private-sector peers. YapiKredi's dependence on wholesale
market, however, is in line with the peers with market funds at
30% of tangible banking assets as at end-2017. At the same time,
Moody's notes that YapiKredi successfully raised long-term debt
during the last year and its refinancing needs in the coming
period remain low given the longer average duration of its debt
compared with peers. In addition, Moody's into account the bank's
improving profitability trends, although this may come under
pressure due to the macro-economic volatility.

The negative outlook on the long-term senior unsecured debt and
deposit ratings is due to Moody's expectation that the challenging
operating environment could further weaken the bank's standalone
credit profile.

YapiKredi continues to incorporate a moderate probability of
affiliate support from UniCredit S.p.A. (Baa1 LT bank deposits
positive, BCA ba1) leading to a one notch uplift on its standalone
BCA. The current government support assumptions do not result in
an additional uplift on the bank's long-term ratings.

Turkiye Vakiflar Bankasi TAO (Vakifbank)

The long-term foreign currency senior unsecured debt and local
currency deposit ratings of VakifBank were downgraded to Ba2 from
Ba1 and the outlook changed to stable from negative. The bank's
long-term foreign currency deposit rating was downgraded to Ba3
from Ba2 (constrained by the lower sovereign ceiling at Ba3), and
the outlook changed to stable from negative. The BCA was
downgraded to b1 from ba2.

Moody's says the principal driver for the rating action is the
downgrade of the Turkish government's debt rating to Ba2 with
stable outlook from Ba1 with negative outlook and the lowering of
foreign currency deposit ceiling to Ba3 from Ba2. While Moody's
continues to assume a very high probability of support for this
government-owned bank, leading to two notches of uplift (from one
previously) for the debt and local currency deposit ratings, the
rating action reflects a weakening in the government's capacity to
provide support in case of need, as signalled by downgrade of the
sovereign rating. The stable outlook on VakifBank's long-term
ratings is consistent with the outlook on the sovereign rating.
The stable outlook also reflects the fact that VakifBank's ratings
already incorporate Moody's expectations of a weakening of
financial fundamentals.

The rating agency has downgraded VakifBank's standalone BCA
because of the high sensitivity of VakifBank's standalone credit
profile to the challenging operating environment, particularly its
asset quality, capitalisation and funding. Moody's expects the
bank's asset quality to weaken from a higher than average level of
problem loans of 4% of gross loans at end-2017, dampening its
currently strong net profitability. The bank's limited loss
absorption capacity is constrained by moderate capitalisation and
accompanied by adequate provisioning coverage. VakifBank's
capitalisation has improved slightly for the last three years
(Moody's adjusted Tangible Common Equity ratio has risen from 9.5%
at end-2015 to 10.3% at September-2017) but may decline due to
loan growth and/or foreign currency volatility. VakifBank's
dependence on wholesale funding remains significant, with market
funds at 28% of tangible banking assets, but with manageable
refinancing risk.

Turkiye Halk Bankasi A.S. (Halkbank)

The long-term foreign currency senior unsecured debt and long-term
foreign- and local-currency deposit ratings of Halkbank were
downgraded to Ba3 from Ba2. The outlook on the banks long-term
senior unsecured debt and deposit ratings is negative. The BCA was
downgraded to b2 from b1.

The principal the drivers for the rating action are the downgrade
of the Turkish sovereign rating to Ba2 from Ba1 and foreign
currency deposit ceiling to Ba3 from Ba2 and lowering the bank's
standalone BCA.

While Moody's continues to assume a very high probability of
support for this majority government-owned bank, the rating action
reflects a weakening in the government's capacity to provide
support in case of need, as signaled by the downgrade of the
sovereign rating.

Moody's also downgraded Halkbank's standalone BCA to b2 from b1
because of the sensitivity of its standalone credit profile to the
weakened operating environment as expressed in the lower Macro
Profile for Turkey. Moody's expects the bank's asset quality to
weaken with problem loans at 3% as at end-2017. The bank's
capitalisation has been on a downward trajectory with Moody's
adjusted Tangible Common Equity ratio at 9.9% as at end-2017
compared to 10.9% as at end-2014. Moody's expects capitalisation
to remain under pressure given the rapid growth of its assets and
volatility in the operating environment. Although the bank's net
interest margin stabilised in Q4 2017 it is weaker than its peers
and remains constrained by the bank's reliance on costly domestic
funding sources.

Halkbank's reliance on shorter-term wholesale funding, including
secured funding from the Central Bank of the Republic of Turkey,
is relatively high. As of end-2017, the bank's reliance on
wholesale funds with the contractual maturity of up to 3 months
increased to 70% of wholesale liabilities, from 60% in Q1 2017. In
Moody's view, this short-term liability structure exposes the bank
to a heightened refinancing risk.

The principle driver for the negative outlook on the bank's long-
term senior unsecured debt and deposit ratings is Moody's
expectation that the challenging operating environment could
further weaken the bank's standalone financial fundamentals as
well as a potential risk of direct or indirect repercussions on
the bank's credit profile from the legal proceedings against its
former deputy-CEO who was convicted by the US authorities for
facilitating transactions with prohibited parties.

Denizbank A.S. (Denizbank)

The local currency long-term deposit ratings of Denizbank were
affirmed at Ba2, with negative outlook. The bank's long-term
foreign currency deposit rating was downgraded to Ba3 from Ba2
(constrained by the lower sovereign ceiling at Ba3), with a
negative outlook. The BCA was affirmed at ba3.

The principal the drivers for the rating action was the lowering
of the country's foreign currency deposit ceiling to Ba3 from Ba2.

The principal driver for the affirmation of the BCA is the
resilience of Denizbank's BCA at the ba3 level to the challenging
operating environment. The bank's capitalisation benefited from a
high internal capital creation rate and injection of Tier 1
capital in 2016. The bank's refinancing risk is relatively low
with market funds at 16% of tangible banking assets as at
September 2017. Moody's expects the bank's profitability to remain
under pressure, however, given the headwinds in the operating
environment and the relatively high concentration in the bank's
loan portfolio.

The negative outlook on the long-term deposit ratings is due to
Moody's expectation that the challenging operating environment
could further weaken the bank's standalone credit profile.

Denizbank continues to incorporate a high probability of affiliate
support from its 99% shareholder Sberbank, leading to one notch of
uplift on its standalone BCA (unchanged).

HSBC Bank A.S. (Turkey) (HSBC-TR)

The foreign and local currency long-term deposit ratings of HSBC-
TR's were affirmed at Ba3, with a negative outlook. The BCA was
affirmed at b2. The bank's long and short-term National Scale
Rating was also affirmed at A2.tr/TR-1.

The principal driver for the affirmation is the resilience of the
bank's relatively low b2 standalone BCA to the challenging
operating environment. Moody's expects the bank's asset quality to
weaken gradually. With non-performing loans as percentage of total
loans at 5.8% as at September 2017, it is one of the weakest with
the peer group. The bank's capitalisation with Tangible Common
Equity ratio of 7.7% as at September 2017 remains weaker than its
peers. The bank managed to stay profitable in 2017 after a loss-
making performance since 2014, although with a relatively high
cost-to-income ratio at 65% as at September 2017. The bank's
refinancing risk remains manageable with market funds at 23.5% of
tangible banking assets as at September 2017.

The principal driver for the negative outlook on the bank's long-
term deposit ratings is Moody's expectation that the challenging
operating environment could further weaken the bank's standalone
financial fundamentals.

HSBC-TR continues to incorporate a high probability of affiliate
support from its 100% shareholder HSBC Holdings plc (Senior
unsecured A2 Negative) leading to two notches of uplift in its
ratings (unchanged).

Turk Ekonomi Bankasi A.S. (TEB)

The long-term local currency deposit rating of TEB was downgraded
to Ba2 from Ba1, and the outlook changed to stable from negative.
The bank's long-term foreign currency deposit rating was
downgraded to Ba3 from Ba2 (constrained by the lower sovereign
ceiling at Ba3), and the outlook changed to stable from negative.
The BCA was affirmed at ba3 and the adjusted BCA was affirmed at
ba1.

Moody's says, the principal driver for the rating action is the
downgrade of the Turkish government's debt rating to Ba2 with
stable outlook from Ba1 with negative outlook and the lowering of
foreign currency deposit ceiling to Ba3 from Ba2. The stable
outlook on TEB's local and foreign currency deposit ratings is
consistent with the outlook on Turkish government bond rating. The
stable outlook also reflects Moody's expectation that the support
from TEBs parent - BNP Paribas (BNPP, LT deposit rating Aa3
stable, BCA baa1) - remains unchanged at high which results in a
two notch uplift to the ba1 adjusted BCA.

The rating agency has affirmed TEB's ba3 standalone BCA given the
bank's resiliency at this rating level to the challenging
operating environment, as evidenced by stronger profitability (net
income to tangible banking assets at 1.3% for nine months ending
September 2017) and improving capitalisation (tangible common
equity ratio at 12% as of September 2017 up from 10% as of
December 2016). The bank's asset quality has also remained stable,
with problem loans at a low level of around 3.1% of gross loans as
of September 2017. TEB's dependence on wholesale funding remains
at an acceptable level, with market funds at 20% of tangible
banking assets, and refinancing risk is mitigated by the fact that
almost half of this market funding is sourced from the parent.

QNB Finansbank AS (QNB Finansbank)

The long-term local currency deposit rating of QNB Finansbank was
downgraded to Ba2 from Ba1, and the outlook changed to stable from
negative. The bank's long-term foreign currency deposit rating was
downgraded to Ba3 from Ba2 (constrained by the lower sovereign
ceiling at Ba3), and the outlook changed to stable from negative.
The BCA was affirmed at ba3 and the adjusted BCA was affirmed at
ba1.

Moody's says, the principal driver for the rating action is the
downgrade of the Turkish government's debt to Ba2 with stable
outlook from Ba1 with negative outlook and lowering of foreign
currency deposit ceiling to Ba3 from Ba2. The stable outlook on
QNB Finansbank's local and foreign currency deposit ratings is
consistent with the outlook on the government's bond rating. The
stable outlook also reflects Moody's expectation that support from
QNB Finansbank's parent -- Qatar National Bank (Q.P.S.C.) (QNB, LT
bank deposits Aa3 negative, BCA baa1) -- will continue to drive
two notches of uplift to ba1 adjusted BCA. Although the uplift
resulting from Moody's affiliate support assumptions remained
unchanged, the rating agency now incorporates a 'very high'
support assumption from QNB compared to 'high' previously. This
has been driven by the strategic importance of the bank to QNB,
greater integration and increasing significance to the parent as
it now represents 16% of QNB's assets.

The rating agency has affirmed QNB Finansbank's ba3 standalone BCA
given the bank's resiliency at this rating level to the
challenging operating environment, as evidenced by stronger
profitability (net income to tangible banking assets at 1.47% as
of September 2017) and stable capitalisation (tangible common
equity ratio at 11.7% as of September 2017). The bank's asset
quality although remains weak relative to domestic peers but has
been improving with problem loans down to 5.2% of gross loans as
at September 2017 from 5.6% as of end-2016, This weaker asset
quality is partly mitigated by a stable and high provisioning
coverage at 86% compared to the domestic average at around 80%. On
funding, the bank's dependence on wholesale funding remains high,
with market funds at 29% of tangible banking assets as of
September 2017, however refinancing risk is mitigated as this
level includes capital market issuances and syndication
transaction which are generally longer term.

Alternatifbank A.S.(Alternatif Bank)

The long-term local currency deposit rating of Alternatif Bank was
downgraded to Ba2 from Ba1, and the outlook changed to stable from
negative. The bank's long-term foreign currency deposit rating was
downgraded to Ba3 from Ba2 (constrained by the lower sovereign
ceiling at Ba3), and the outlook changed to stable from negative.
The BCA was affirmed at b1 and the adjusted was affirmed BCA at
ba1.

Moody's says, the principal driver for the rating action is the
downgrade of the Turkish government's debt rating to Ba2 with
stable outlook from Ba1 with negative outlook and lowering of
foreign currency deposit ceiling to Ba3 from Ba2. The stable
outlook on Alternatif Bank's local and foreign currency deposit
ratings is consistent with the outlook on the government's bond
rating. The stable outlook also reflects the rating agencies
expectation that the support from Alternatif Bank's sole
shareholder --The Commercial Bank (P.S.Q.C.) (CBQ, LT bank
deposits A2 negative, BCA baa3) based in Qatar - remains unchanged
at very high which results in a three notch uplift to ba1 adjusted
BCA.

Moody's has affirmed Alternatif Bank's b1 standalone BCA given the
bank's resiliency at this rating level to the challenging
operating environment, as evidenced by improving asset quality,
capital and profitability. Although, the bank's asset quality has
been improving with problem loans down to 4.0% of gross loans as
at September 2017 from 5.0% as of end-2016 it remains weak
relative to domestic peers. During the same period, profitability
has improved to 0.6% from 0.2% of tangible assets and tangible
common equity ratio up to 10.4% from 8.5%. These improvements
result from a restructuring exercise following CBQ's acquisition
of Alternatif Bank in December 2016. Alternatif Bank has also
changed its risk management team including underwriting standards
as part of its restructuring exercise which resulted in enhancing
collection efforts and reducing the stock of problem loans. On
funding, the market funding level remains very high at 35% of
tangible banking assets. The refinancing risks related to this
funding is partly mitigated by the longer maturity of some of this
funding and high stock of liquid assets at 26% of tangible banking
assets.

ING Bank A.S. (Turkey) (ING-TR)

The long-term local currency deposit ratings of ING-TR was
downgraded to Ba2 from Ba1, and the outlook changed to stable from
negative. The bank's long-term foreign currency deposit rating was
downgraded to Ba3 from Ba2 (constrained by the lower sovereign
ceiling at Ba3), and the outlook changed to stable from negative.
The BCA was affirmed at b1 and the adjusted BCA was affirmed at
ba1.

Moody's says, the principal driver for the rating action is the
downgrade of the Turkish government's debt to Ba2 with stable
outlook from Ba1 with negative outlook and lowering of foreign
currency deposit ceiling to Ba3 from Ba2. The stable outlook on
ING-TR's local and foreign currency deposit ratings is consistent
with the outlook on the government's bond rating. The stable
outlook also reflects the rating agencies expectation that the
support from ING-TR's parent -- ING Bank N.V. (ING Bank, LT bank
deposits Aa3 stable, BCA baa1) - remains unchanged at very high
which results in a three notch uplift to the ba1 adjusted BCA.

Moody's has affirmed ING-TR's b1 standalone BCA given the bank's
resiliency at this rating level to the challenging operating
environment, as evidenced by stronger profitability (net income to
tangible banking assets at 1.7% for nine months ending September
2017) and improving capitalisation (tangible common equity ratio
at 11.55% as of September 2017 up from 9.5% as of December 2016).
The bank's asset quality has although marginally weakened with
problem loans at around 3.7% of gross loans as at September 2017
from 3.2% as of end-2016, This is largely due to the fact that
unlike its domestic peers, ING did not engage in NPL sales as of
Q3 2017. ING's dependence on wholesale funding remains relatively
high, with market funds at 40% of tangible banking assets,
however, the refinancing risk is partly mitigated as a large part
of such funding is sourced from the parent.

Sekerbank T.A.S. (Sekerbank)

The B2 long-term foreign and local currency deposit ratings of
Sekerbank were affirmed and the outlook changed to stable from
negative. The bank's b2 BCA was also affirmed.

Moody's has affirmed Sekerbank's ratings and changed the outlook
to stable given the bank's resiliency at the low rating level of
b2, despite the challenging operating environment, as evidenced by
improving liquidity and slightly declining problem loans at
September 2017. Sekerbank's challenges and expected deterioration
are already incorporated in its b2 BCA and stable outlook on its
B2 deposit ratings. Moody's expects the bank's asset quality to
weaken from an above average level of problem loans (at 5.4% of
gross loans at September-2017), dampening its low net
profitability. The bank's loss absorption capacity is constrained
by weak and declining provisioning coverage and a modest
capitalisation. Sekerbank's capitalisation has slightly improved
for the last three years (Moody's adjusted Tangible Common Equity
ratio has risen from 9.5% at end-2015 to 10% at September-2017)
but may decline due to loan growth and/or foreign currency
volatility. Sekerbank's dependence on wholesale funding remains
significant, with market funds at 27% of tangible banking assets
at September 2017 and high refinancing risk because liquid assets
remain insufficient to cover wholesale funding.

Odea Bank A.S. (Odea)

Odea's long-term foreign and local currency deposit ratings were
affirmed at Ba3, and the outlook was changed to stable from
negative. Odea's standalone BCA was affirmed at ba3. Odea's long-
term National Scale Rating (NSR) was upgraded to A1.tr from A2.tr.

Moody's says the principal driver for this rating action is change
of outlook on the Turkish government's debt rating to stable from
negative outlook. The stable outlook on Odea's long term ratings
is consistent with the outlook on the sovereign rating. The stable
outlook also reflects the fact that Odea's ratings already
incorporate Moody's expectations of a weakening of financial
fundamentals.

The rating agency has affirmed Odea's standalone BCA at ba3
because of the resiliency of Odea's standalone credit profile to
the challenging operating environment, as evidenced by its
strengthening capitalisation, profitability and funding. Moody's
expects the bank's asset quality to weaken from an above average
level of problem loans (at 4.3% of gross loans at September-2017),
dampening its still modest although strengthening net
profitability. The bank's loss absorption capacity is constrained
by low provisioning coverage but supported by strong
capitalisation. Odea's capitalisation has significantly
strengthened for the last three years (Moody's adjusted Tangible
Common Equity ratio has improved from 5.8% at end-2015 to 13.4% at
September-2017) but may somewhat decline due to loan growth and/or
foreign currency volatility. Odea's dependence on wholesale
funding remains moderate, with market funds at 12% of tangible
banking assets, with manageable refinancing risk.

Following the Turkish sovereign debt downgrade to Ba2 from Ba1,
Odea's Ba3 local currency deposit rating now maps to a range of
Aa3.tr-A2.tr from A2.tr-A3.tr. Moody's has remapped Odea's NSR to
A1.tr (the middle of the new range), from A2.tr (the top of the
previous range), because it better reflects the bank's relative
strength within the system.

Turkiye Sinai Kalkinma Bankasi A.S. (TSKB)

The long-term foreign and local currency issuer and long-term
foreign currency senior unsecured debt ratings of TSKB were
downgraded to Ba2 from Ba1 and the outlook changed to stable from
negative. The BCA was downgraded to ba3 from ba2.

The rating agency has downgraded TSKB's standalone BCA because of
the sensitivity of TSKB's standalone credit profile to the
challenging operating environment, particularly its capitalisation
and funding. Moody's expects the bank's asset quality to weaken
from a negligible level of problem loans (0.2% of gross loans at
end-2017), somewhat dampening its currently strong net
profitability. The bank's loss absorption capacity is supported by
full provisioning coverage and adequate capitalisation relative to
its low problem loans. TSKB's capitalisation has weakened for the
last three years (Moody's adjusted Tangible Common Equity ratio
has declined from 13.3% at end-2015 to 10.9% at September-2017)
and may decline further due to loan growth and/or foreign currency
volatility. TSKB's is fully dependent on wholesale funding, as a
non-deposit taking institution. Its refinancing risk is however
mitigated by access to long-term supranational funding sources,
largely under government guarantees.

The rating agency has downgraded TSKB's standalone BCA because of
the sensitivity of TSKB's standalone credit profile to the
challenging operating environment, particularly its capitalisation
and funding. Moody's expects the bank's asset quality to weaken
from a negligible level of problem loans (0.2% of gross loans at
end-2017), somewhat dampening its currently strong net
profitability. The bank's loss absorption capacity is supported by
full provisioning coverage and adequate capitalisation relative to
its low problem loans. TSKB's capitalisation has weakened for the
last three years (Moody's adjusted Tangible Common Equity ratio
has declined from 13.3% at end-2015 to 10.9% at September-2017)
and may decline further due to loan growth and/or foreign currency
volatility. TSKB's is fully dependent on wholesale funding, as a
non-deposit taking institution. Its refinancing risk is however
mitigated by access to long-term supranational funding sources,
largely under government guarantees.

Export Credit Bank of Turkey A.S. (Turk Exim)

The long-term foreign and local currency issuer and foreign-
currency senior unsecured debt ratings of Turk Exim were
downgraded to Ba2 from Ba1 and the outlook changed to stable from
negative. The BCA was downgraded to ba3 from ba2.

Moody's says the principal driver for the rating action is the
downgrade of the Turkish government's debt rating to Ba2 with
stable outlook from Ba1 with negative outlook. While Moody's
continues to assume a very high probability of support for this
government-owned development bank, leading to one notch of uplift
for the debt ratings, the rating action reflects a weakening in
the government's capacity to provide support in case of need, as
signalled by downgrade of the sovereign rating. The stable outlook
on Turk Exim's long-term ratings is consistent with the outlook on
the sovereign bond rating. The stable outlook also reflects the
fact that Turk Exim's ratings already incorporate Moody's
expectations of a weakening of financial fundamentals.

The rating agency has downgraded Turk Exim's BCA to ba3 from ba2
because of the sensitivity of Turk Exim's standalone credit
profile to the challenging operating environment, particularly its
profitability and funding. Moody's expects the bank's asset
quality to weaken from a negligible level of problem loans (at
0.4% of gross loans at June-2017), dampening its modest net
profitability. The bank's loss absorption capacity is supported by
high provisioning coverage and good capitalisation. Turk Exim's
capitalisation has weakened for the last three years (Moody's
adjusted Tangible Common Equity ratio has declined from 18.2% at
end-2015 to 14.6% at end-2017) and may decline further due to loan
growth and/or foreign currency volatility. Turk Exim's dependence
on wholesale funding remains significant given its wholesale
funding profile, but with refinancing risk mitigated by funding
from the Central Bank or government-guaranteed.


TURKEY: Moody's Lowers Rating on Five Companies to Ba1
------------------------------------------------------
Moody's Investors Service has taken rating actions on nine Turkish
corporates. The rating actions were driven by Moody's recent
decision to downgrade Turkey's government issuer rating to Ba2
stable from Ba1 negative.

RATINGS RATIONALE

DOWNGRADES

Moody's downgraded to Ba1 from Baa3 the following ratings and
changed the outlook to stable from negative on:

* Anadolu Efes Biracilik ve Malt Sanayii A.S. (Efes)

* Coca-Cola Icecek A.S. (CCI)

* Koc Holding A.S. (Koc Holding)

* Ordu Yardimlasma Kurumu (OYAK)

* Turkcell Iletisim Hizmetleri A.S. (Turkcell)

As a result of the downgrades, Moody's has withdrawn the issuer
ratings and assigned corporate family ratings (CFR) to the above
corporates, in line with the rating agency's policy for non-
financial corporates with non-investment grade ratings.

In addition, for those corporates that have rated bonds (Efes,
CCI, Koc Holding and Turkcell), Moody's has assigned probability
of default ratings (PDR).

Moody's also downgraded the rating of Dogus Holding A.S. (Dogus)
to Ba2 from Ba1. The outlook remains negative.

AFFIRMATIONS

Moody's has affirmed the Ba1 CFR and Ba1-PD PDR on Turkiye Sise ve
Cam Fabrikalari A.S. (Sisecam) and Turkiye Petrol Rafinerileri
A.S. (Tupras). The outlook on Sisecam's ratings remains stable
while the outlook on Tupras' ratings has been changed to stable
from positive.

Moody's has also affirmed the Ba2 CFR and Ba2-PD PDR on Erdemir.
The agency has also upgraded the company's national scale
corporate family rating to Aa1.tr from A1.tr. This follows the
update of the National Scale Rating Map for Turkey as published on
March 7 on Moodys.com shortly after the announcement of the
downgrade of the Turkey's government issuer rating. The outlook
remains stable on Erdemir's ratings.

The ratings of Turk Hava Yollari Anonim Ortakligi (Turkish
Airlines, Ba3 stable) are unaffected by downgrade of the Turkish
sovereign ratings.

-- DOWNGRADE TO Ba1 OF EFES, CCI, KOC HOLDING, OYAK, AND
    TURKCELL; CHANGE OF OUTLOOK TO STABLE FROM NEGATIVE

These corporates' Ba1 corporate family ratings are one notch above
Turkey's government bond rating of Ba2. While recognizing their
investment grade financial profiles and market leadership
positions, they also have a high dependence on their Turkish
operations for revenue and cash flow generation. The corporates
also have significant cash balances, which are in part deposited
in the domestic banking system. As such, these ratings are
constrained at one notch above the sovereign rating and their
outlooks have changed to stable in line with the sovereign outlook
of Turkey.

EFES

Efes' high dependence on its Turkish operations for revenue and
cash flow generation, with Turkey representing 45% of the Beer
group's EBITDA in 2017, constrains its Ba1 CFR at one notch above
the sovereign rating of Turkey and one notch below Moody's foreign
currency bond ceiling of Baa3 for the country. While the company
has international operations that contribute materially to cash
flow generation, the sovereign ratings of these countries are too
close to that of Turkey to warrant more than one notch of
differentiation between Efes' rating and that of Turkey.

Efes' rating reflects (1) its leadership position in the Turkish
market with a market share of 61% according to the company; (2)
its improving position in Russia, its largest beer market by
volume; (3) the tangible actions management has initiated to
offset the negative pressure on the company's financial profile;
(4) a strong liquidity profile, with the ability to continue to
generate positive free cash flows despite an adverse operating
environment and an average debt maturity profile of 4 years as of
December 31, 2017; and (5) the substantial equity value from the
company's 50.3% investment in Coca-Cola Icecek A.S. (CCI, Ba1
stable), which is valued at around TRY4.4 billion ($1.2 billion)
as of December 31, 2017.

The Ba1 rating is constrained by (1) Efes' mid-sized operations
with a high degree of geographical sales concentration in Russia
(Ba1 positive) and Turkey; (2) exposure to foreign currencies
through both its operations and balance sheet, although these are
partially mitigated by foreign currency hedges on operational
expenses; (3) challenging domestic operations because of low
consumer confidence; and (4) stricter regulation in the company's
main Turkish and Russian markets which result in structurally
weaker markets.

CCI

CCI's Ba1 CFR reflects the company's (1) strong market positions,
as leader in Turkey and across Central Asia (Azerbaijan (Ba2
stable), Kazakhstan (Baa3 stable), Turkmenistan , Kyrgyzstan (B2
stable)) and second in Iraq (Caa1 stable) and Pakistan (B3
stable); (2) improving financial profile, with its Moody's-
adjusted retained cash flow (RCF)/net debt increasing to 47.3% in
2017 from 36.2% in 2016; and (3) strong liquidity profile,
underpinned by strong cash balance, a long-term maturity profile
and positive free cash flow (FCF) since 2016 (as adjusted by
Moody's).

However, CCI's rating is constrained at one notch above the Ba2
sovereign rating of Turkey given its exposure to the Turkish
economy. The rating also reflects CCI's exposure to foreign
currencies through both its operations and balance sheet, and
reduced pricing flexibility to accommodate rising input costs
(primarily aluminum, resin and sugar) during times of increased
competition or deteriorating consumer confidence.

KOC HOLDING and OYAK

Koc Holding and OYAK are two Turkish investment holding companies,
both with credit linkages and high exposure to the domestic
operating environment in Turkey. However, Koc Holding and OYAK
have diversified investment portfolios with a number of mature,
dividend generating investments as well as exposure to export
revenues, which allows their Ba1 CFRs to be rated one notch above
the Government of Turkey.

In addition, both these companies maintain strong financial
flexibility and have for many years maintained net cash positions.
As of year-end 2017, Koc Holding at the holding level had about
$2.1 billion of cash and $1.5 billion of borrowings. Similarly,
OYAK as of December 31, 2016 had about TRY 8.8 billion ($2.5
billion) of cash with TRY90 million of borrowings at the holding
level but had TRY 5.8 billion ($1.6 billion) of net debt at an
intermediate holding company which holds ATAER (iron & steel,
chemical and automotive investments), OYAK Cimento (cement
investments) and BIREN (energy investments).

TURKCELL

Turkcell's Ba1 corporate family rating (CFR) is rated one notch
above Turkey's bond rating of Ba2. While the company has a strong
financial profile and a market leadership position, it also has a
high dependence on its Turkish operations for revenue and cash
flow generation. Turkcell also has significant cash balances of
TRY4.7 billion with the majority deposited in the domestic banking
system. As such, the ratings are constrained at one notch above
the sovereign rating and the outlook has changed in line with the
sovereign rating of Turkey. While Turkcell has international
operations that contribute to cash flow generation, the majority
of these international operations are in countries rated below the
sovereign bond rating of Turkey.

Turkcell's Ba1 CFR reflects its very strong financial and
liquidity profiles and the track record that the company has built
over the last few years in running the business with a
conservative financial profile. It also reflects (1) Turkcell's
leadership position in the Turkish mobile telephony market (2) the
strong fundamentals of the mobile sector in Turkey, driven by its
young population and low smartphone penetration relative to other
European peers; (3) Turkcell's conservative financial policies,
which the company continues to adhere to with a maximum net
debt/EBITDA of 1.5x; and (4) Turkcell's ability to tap the debt
capital markets and its strong relationships with international
banks.

DOGUS

The downgrade of Dogus to Ba2 reflects (1) its operational
exposure to Turkey; (2) moderate financial profile, with estimated
market value-based leverage (MVL) of about 29.7% (using equity
book value for unlisted assets) and 9.8% (using management fair
value estimates) as of Dec-2017; (3) an investment portfolio which
is skewed towards growth businesses and therefore many investments
are not regularly paying dividends resulting in a low interest
cover ratio of 0.1x ((FFO + interest expense)/ interest expense);
and (4) a limited degree of liquidity available through its listed
stakes in Dogus Otomotiv (DOAS) and Dogus REIT that covers about
0.67x of holding level net debt.

The outlook remains negative given the weaker liquidity profile
due to diminishing public stakes and reduced dividend inflows.
Dogus sold its remaining 9.95% stake in Turkiye Garanti Bankasi
A.S. (Garanti Bank, Ba2 stable senior unsecured rating) in
February 2017 which has been used to diversify its investment
portfolio. Dogus has been growing its international operations
away from Turkey which is expected to compensate against its
exposure in Turkey. However, the reduction of cash balances and
loss of dividend income from Garanti Bank combined with limited
visibility on future dividend income from its investments, has
weakened Dogus' liquidity profile over the next 12 to 18 months.

SISECAM

The affirmation of Sisecam's Ba1 CFR reflects the company's
leading market position in Turkey as well as the group's strong
financial profile, with debt/EBITDA averaging about 3.1x over the
past five years and a robust liquidity position. Sisecam has a
balanced revenue and product mix derived from its flat glass,
glassware, glass packaging and chemicals businesses.

The rating is constrained by its geographic concentration, with
around 2/5 of revenues generated in Turkey, and an additional 1/5
exported from the country, and exposure to other markets limited
to Eastern European countries and Russia (Ba1 positive).

TUPRAS

The affirmation of the Ba1 CFR reflects the healthy financial
profile of the company but Tupras' credit linkages with Turkey
constrains the rating given that all of the company's core assets
are located in Turkey and a majority of its cash flows are
generated domestically. The change in outlook is therefore a
direct result of the downgrade in Turkey's government bond rating.
Tupras' rating is positioned one notch higher than the government
bond rating to reflect (1) its strong financial profile with
Moody's adjusted debt/EBITDA of 2.2x and adjusted EBIT/interest
expense of 6.3x as of September 30, 2017 (LTM); and (2) its sales
exposure to refined products commodities which can be readily sold
in the international markets if domestic demand for any reason
declines.

ERDEMIR

The affirmation of Erdemir's CFR at Ba2 considers the company's
continued robust operating and financial performance in 2017,
leading to high margin and strong credit metrics for the rating.
Adjusted gross debt/EBITDA improved to 0.8x in 2017 from 1.2x in
2016 mainly due to a large EBITDA improvement. The high EBITDA and
moderate interests associated to very low absolute financial debt
translate into robust operating cash flow generation. Positive FCF
in 2017 and a large cash balance support the liquidity of the
company, which Moody's assess only as adequate due to high amount
of short term debt and lack of committed long term facilities.

The rating also reflects Erdemir's leading market position in the
Turkish flat steel market where the supply / demand balance is
favourable to the company. High exposure to Turkey, where Erdemir
produces all its steel and sells the majority of it, is a
potentially credit constraining factor, after Moody's has
downgraded the sovereign rating to Ba2 stable in March 2018.
However, the solid financial profile of Erdemir provides a cushion
for its rating, which Moody's expect to remain well positioned
even under a less favourable economic scenario in the country over
the next 12 to 18 months.

The Ba2 CFR rating also reflects (1) the cyclicality of the
company's underlying end markets with a large reliance on
construction and the distribution chain; (2) competition from
imports, particularly from CIS steelmakers; (3) majority of
reported debt being short term, although this is mitigated by
overall positive net cash position due to very large cash balance
at the end of 2017; and (4) expected rising capital expenditures
and high dividend pay-outs which could turn free cash flow into
negative territory in 2018 and beyond if operational cash flows do
not improve further.

WHAT COULD CHANGE THE RATINGS UP/DOWN

EFES

The rating is constrained by the government of Turkey's Ba2 stable
rating and upward pressure on the rating is unlikely because of
Efes' credit linkages with Turkey. Positive pressure on the
sovereign rating could lead to positive pressure on Efes' rating
if current credit metrics are sustained. This includes EBITA
margin for its core beer operations (i.e., excluding the impact
from consolidating CCI's financials, which Moody's deconsolidates)
above 20%, Debt/EBITDA below 2.5x and EBIT/interest expense above
4.0x.

The rating could be downgraded if Efes failed to maintain EBITA
margin above 15%, debt/EBITDA below 4.0x or EBIT/interest expense
above 3.0x. Negative rating pressure could also occur should the
group's liquidity deteriorate substantially. Any assessment would
also take into account the benefits of Efes' ownership stake in
CCI as a counterbalancing factor.

CCI

The rating is constrained by the government of Turkey's Ba2 stable
rating and upward pressure on the rating is unlikely because of
CCI's credit linkages with Turkey. Positive pressure on the
sovereign rating could lead to positive pressure on CCI's rating
if current credit metrics are sustained. This includes EBITA
margin above 10%, RCF/net debt above 30%, and debt/EBITDA below
3.5x.

The rating could be downgraded if CCI failed to maintain EBITA
margin above 8%, RCF/net debt fell above 20%, or debt/EBITDA
increased below 4.0x. A reassessment of the bottler support
assumptions could also affect the rating and result in a
downgrade.

KOC HOLDING

Given the credit linkages between the Koc Group's investments and
the operating environment in Turkey, an upgrade of Koc Holding's
rating is unlikely at this stage. The company's rating could be
upgraded if Turkey's sovereign rating is upgraded in combination
with the Koc Group's investments continuing to display a strong
financial profile including market value-based leverage (MVL)
remaining below 35%.

Koc Holding's rating could come under negative pressure if Moody's
expects that MVL will exceed 40% on a forward-looking basis, for
instance as a result of a structural decline in the value of
investments during a period of increased leverage and a weaker
liquidity position.

Negative pressure on Turkey's sovereign rating could place
downward pressure on Koc Holding's ratings.

OYAK

Given OYAK's close links with the Turkish economy and dependency
on the economic base from which the investments generate income,
OYAK's rating is constrained by one notch above the government of
Turkey's Ba2 rating. There could be positive pressure on OYAK's
rating if Turkey's sovereign bond rating is upgraded.

A weakening of the Turkish economy could impact the ability of its
holdings to pay dividends in line with previous years. This could
have implications for OYAK's FFO interest coverage ratio and, were
the ratio to be sustained below 2.5x, Moody's could downgrade the
rating in the absence of a strong liquidity profile. OYAK's rating
could also come under pressure should cash flow distributions to
members increase significantly and therefore weaken OYAK's
liquidity profile. Negative pressure on Turkey's sovereign rating
could put downward pressure on OYAK's ratings.

TURKCELL

Given the current sovereign constraint, an upgrade of the rating
at this stage is unlikely. Ratings could be upgraded if the
ratings of the Turkish government were to be upgraded and Turkcell
continues to demonstrate stable operating performance with a
conservative financial and liquidity profile.

Turkcell's rating could come under negative pressure if the rating
of the government of Turkey were to be downgraded, given the
strong credit inter-linkages between Turkcell and the Turkish
economy.

There could also be negative pressure on Turkcell's rating if it
increased its investment and acquisition plans or shareholder
returns such that: (1) RCF/debt ratio were to fall below 30%; (2)
Debt/EBITDA were to move above 2.5x (taking into account the
company's liquidity profile); (3) (EBITDA - capex)/interest
expense ratio were to fall below 4.0x, on a persistent basis.

DOGUS

An upgrade is unlikely at this time given Dogus' operational
concentration in Turkey, exposing the company to the heightened
risks associated with the operating environment in Turkey. The
ratings are also constrained by an investment portfolio that has
yet to mature to a level where the holding company regularly
receives a diversified dividend income stream through its
investments and subsidiaries. In addition to having a stronger
liquidity profile, Moody's expectation would be for MVL to be
below 30% and FFO interest coverage above 3.0x on a sustained
basis.

The rating could be downgraded if MVL were to increase above 40%
and FFO interest coverage were to remain below 2.0x. Weaker
liquidity, particularly if holding level cash is less than
upcoming debt maturities (assessed over a rolling 18 months
forward-looking view) could also create negative rating pressure.

Negative pressure on Turkey's sovereign rating could also place
downward pressure on Dogus' ratings.

SISECAM

The rating is constrained by the government of Turkey's Ba2 stable
rating and upward pressure on the rating is unlikely because of
Sisecam's credit linkages with Turkey. Positive pressure on the
sovereign rating could lead to positive pressure on Sisecam's
rating if current credit metrics are sustained. This includes
EBITDA margin above 20% and free cash flow to debt above 10%. An
upgrade would also require Sisecam to diversify and strengthen its
geographical footprint so as to mitigate against event risks while
maintaining debt/EBITDA below 2.5x.

Sisecam's ratings could come under negative rating pressure if the
group faces a structural decline in profitability with EBITDA
margin below 15% or if debt/EBITDA rises above 3.5x. Negative
rating pressure could also occur should the group's liquidity
deteriorate substantially, as an example, through a large
acquisition.

TUPRAS

The rating is constrained by the government of Turkey's Ba2 stable
rating and upward pressure on the rating is unlikely because of
Tupras' credit linkages with Turkey. A positive pressure on the
sovereign rating could lead to positive pressure on Tupras' rating
if current credit metrics are sustained. This includes adjusted
debt/EBITDA maintained below 2.5x and adjusted EBIT/interest cover
above 5.0x.

The rating could be downgraded if the company fails to maintain
adjusted gross debt/EBITDA below 4.0x and adjusted EBIT/interest
cover above 3.5x. Negative rating pressure on the sovereign is
likely to lead to negative pressure on Tupras' rating.

ERDEMIR

Positive rating pressure would be considered if the company
maintains a Moody's adjusted debt/EBITDA well below 1.5x and
generates positive free cash flow on a sustainable basis, while
having a conservative liquidity management. Positive pressure on
the sovereign rating could also lead to positive pressure on
Erdemir's rating if strong credit metrics are sustained and
liquidity remains more than adequate.

Although unlikely, the rating could be downgraded if Erdemir's
adjusted debt/EBITDA rises above 2.5x on a sustainable basis,
retained cash flow (RCF) was projected to be less than maintenance
capex on a recurring basis and liquidity materially weakens.
Negative pressure on the sovereign rating could also lead to
negative pressure on Erdemir's rating.

LIST OF AFFECTED RATINGS

Issuer: Anadolu Efes Biracilik ve Malt Sanayii A.S.

Downgrades:

-- Senior Unsecured Regular Bond/Debenture, downgraded to Ba1
    from Baa3

Assignments:

-- Long-term Corporate Family Rating, assigned Ba1

-- Probability of Default Rating, assigned Ba1-PD

Withdrawals:

-- Long-term Issuer Rating, previously rated Baa3

Outlook Action:

-- Outlook changed to Stable from Negative

Issuer: Koc Holding A.S.

Downgrades:

-- Senior Unsecured Regular Bond/Debenture, downgraded to Ba1
    from Baa3

Assignments:

-- Probability of Default Rating, assigned Ba1-PD

-- Long-term Corporate Family Rating, assigned Ba1

Withdrawals:

-- Long-term Issuer Ratings, previously rated Baa3

Outlook Action:

-- Outlook changed to Stable from Negative

Issuer: Ordu Yardimlasma Kurumu (OYAK)

Assignments:

-- Long-term Corporate Family Rating, assigned Ba1

Withdrawals:

-- Long-term Issuer Ratings, previously rated Baa3

Outlook Action:

-- Outlook changed to Stable from Negative

Issuer: Turkiye Sise ve Cam Fabrikalari A.S.

Affirmations:

-- Long-term Corporate Family Rating, affirmed Ba1

-- Probability of Default Rating, affirmed Ba1-PD

-- Senior Unsecured Regular Bond/Debenture, affirmed Ba1

Outlook Action:

-- Outlook remains Stable

Issuer: Turkiye Petrol Rafinerileri A.S.

Affirmations:

-- Long-term Corporate Family Rating, affirmed Ba1

-- Probability of Default Rating, affirmed Ba1-PD

-- Senior Unsecured Regular Bond/Debenture, affirmed Ba1

Outlook Action:

-- Outlook changed to Stable from Positive

Issuer: Turkcell Iletisim Hizmetleri A.S.

Downgrades:

-- Senior Unsecured Regular Bond/Debenture, downgraded to Ba1
    from Baa3

Assignments:

-- Long-term Corporate Family Rating, assigned Ba1

-- Probability of Default Rating, assigned Ba1-PD

Withdrawals:

-- Long-term Issuer Rating, previously rated Baa3

Outlook Action:

-- Outlook changed to Stable from Negative

Issuer: Coca-Cola Icecek A.S.

Downgrades:

-- Senior Unsecured Regular Bond/Debenture, downgraded to Ba1
    from Baa3

Assignments:

-- Long-term Corporate Family Rating, assigned Ba1

-- Probability of Default Rating, assigned Ba1-PD

Withdrawals:

-- Long-term Issuer Ratings, previously rated Baa3

Outlook Action:

-- Outlook changed to Stable from Negative

Issuer: Dogus Holding A.S.

Downgrade:

-- Long-term Corporate Family Rating, downgraded to Ba2 from Ba1

-- Probability of Default Rating, downgraded to Ba2-PD from
    Ba1-PD

Outlook Action:

-- Outlook remains Negative

Issuer: Erdemir

Affirmations:

-- Long-term Corporate Family Rating, affirmed Ba2

-- Probability of Default Rating, affirmed Ba2-PD

Upgrade:

-- NSR long-term Corporate Family Rating, upgraded to Aa1.tr
    from A1.tr

Outlook Action:

-- Outlook remains Stable



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


CONTOURGLOBAL PLC: Fitch Assigns BB- IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has assigned a 'BB-' Long-Term Issuer Default Rating
(IDR) to ContourGlobal Plc (CGPLC) with a Stable Outlook. Fitch
has also affirmed and simultaneously withdrawn the 'BB-' Long-Term
IDR of ContourGlobal L.P. (CGLP). Fitch will therefore no longer
provide ratings or analytical coverage for CGLP. The rating
assignment and withdrawal reflects the company's corporate
structure reorganisation.

Fitch has also affirmed ContourGlobal Power Holdings, S.A.'s
(CGPH) senior secured notes due 2021 at 'BB'/'RR3' and affirmed
the super senior revolver at 'BB+'/'RR1'. CGPH is a financing
subsidiary of CGPLC and the ratings of its debt obligations
primarily benefit from a guarantee from CGPLC (previously from
CGLP).

The proposed acquisition of a Spanish renewable portfolio is
rating neutral for CGPLC. The company signed an agreement
regarding the acquisition of Acciona Energia, S.A.U.'s 250 MW
portfolio of concentrating solar power (CSP) plants in Spain on
Feb. 27, 2018.

KEY RATING DRIVERS

Changes to Group Structure: Ahead of its IPO in November 2017,
CGPLC acquired from CGLP full ownership of ContourGlobal Worldwide
Holdings SARL, which owns the operating subsidiaries of the group.
CGLP owns 71% equity interest in CGPLC and public shareholders own
29%. CGLP is no longer a parent guarantor. CGPLC has become the
new parent guarantor of the debt obligations at CGPH.

Larger and More Diversified Asset Base: The upgrade of CGLP's
rating to 'BB-' from 'B+' and CGPH's senior secured debt rating to
'BB' from 'BB-' in September 2017 reflected the increased scale
and diversification of CGLP's portfolio of generating assets and
Fitch's expectation that average credit metrics for the parent
company will be in line with the 'BB-' IDR in 2018-2020.
Completion of several projects under construction and improved
financial flexibility contributed to the upgrade.

Earnings Supported by Long-Term Contracts: CGPLC's IDR primarily
reflects its relatively stable earnings from long-term contracts
and regulated earnings, which will account for about 95% of total
revenue between 2017 and 2022. CGPLC owns and operates 69 power
generation assets in 19 countries and three continents. EBITDA is
split 51% Europe, 37% Latin America and 15% Africa. Power purchase
agreements (PPAs) have a weighted average life of about 12 years.

Long-Term Recontracting Risks: PPAs for 45% of total capacity will
expire before 2025 if they are not extended. This includes the two
largest contracts, Maritsa's PPA expiring in 2024 and Arrubal's in
2021. Management indicated that if the weak wholesale power prices
and capacity were to continue in Europe, some contracts, such as
Maritsa, could become shorter in tenure or, for Arrubal, could
become fully merchant.

The company has recently extended the Sochagota PPA in Colombia
two years ahead of expiry to manage its recontracting risk. The
company also expects its Austria Wind projects to soon receive new
feed-in-tariffs for 12 years through repowering projects, two of
which have already been confirmed.

Spanish Acquisition Rating Neutral: CGPLC's proposed acquisition
of a Spanish renewable portfolio is rating neutral. If closed, the
acquisition of Acciona Energia, S.A.U.'s 250 MW portfolio will
strengthen CGPLC's business profile due to increased scale and
diversification of the company's power generation portfolio, and
the addition of largely regulated cash flows from the Spanish CSP
plants. Fitch forecast that after the acquisition average credit
metrics for the parent company will be in line with the 'BB-'
rating in 2018-2020.

The enterprise value of the Spanish acquisition is EUR962 million,
implying a multiple of 8.8x based on unaudited 2017 adjusted
EBITDA. CGPLC will use EUR171 million of its large cash balance at
the parent level to fund the acquisition. The cash balance was
boosted by the IPO in November 2017, with net proceeds of about
USD370 million (EUR301 million). Funding will also include non-
recourse project financing of about EUR635 million.

Leverage in Line with Guidelines: The recourse debt/available
parent-only cash flow (APOCF) after the acquisition will average
comfortably below 4x in 2018-2020 according to Fitch's
projections, which is the maximum level for the 'BB-' rating. The
company expects its consolidated net debt/EBITDA ratio to remain
at constant foreign exchange rates within 4.0x-4.5x at end-2018,
in line with the stated leverage guidance at IPO.

The Spanish assets have limited wholesale price and volume
exposure. About 70% of revenues are regulated through fixed-price
capacity-based remuneration. The five 50 MW CSP plants are
entitled to receive investment and operation remuneration for 25
years from the start of operations under the Spanish renewable
remuneration scheme. There are 18 years left in the regulatory
scheme.

Regulatory Framework in Spain: The regulatory framework for
renewables in Spain continues to evolve after a hard landing in
2013. Current regulatory return (7.4%) could be at risk at the end
of the first regulatory period in 2019 due to the links to the 10-
year Spanish bond yield, which has declined substantially since
the financial crisis. Fitch has assumed in its projections a
modest decline of distributions from the Spanish portfolio after
2019 to reflect the risk of lower regulatory return in the next
regulatory period.

Impact on Business Profile: CGPLC expects the acquisition to
increase the share of European assets in adjusted EBITDA to 59%
from 49% and the share of renewables in adjusted EBITDA to 49%
from 39%, further diversifying the fuel mix. The transaction will
also extend the average remaining contract life for CGPLC's
portfolio to 12 years from 11 years at end-2017. The transaction
is subject to shareholder and regulatory approvals. CGPLC expects
to complete it in 2Q18.

The acquisition will also reduce the relative importance of the
Kosovo 500 MW lignite-fired power plant project in CGPLC's
portfolio. Fitch regard the Kosovo project as a source of credit
concern for CGPLC due to its large size, long construction period
and weak counterparty. CGPLC signed project agreements with the
Republic of Kosovo in late 2017 and expects the project to reach
financial close and begin construction in late 2018 or early 2019.

DERIVATION SUMMARY

Fitch rates CGPLC based on a deconsolidated approach. The
company's portfolio comprises assets financed using non-recourse
project debt and equity. CGPLC is comparable to Terraform Power
Operating LLC (TERPO: BB-/Stable) and Nextera Energy Operating
Partners (NEP, BB+/Stable) in terms of operating scale.

Fitch views TERPO and NEP's US-dominated portfolio of renewable
assets as superior to those of CGPLC, which are thermal intensive
and carry significant re-contracting risk and political and
regulatory risks in emerging markets. TERPO and NEP have strong
and diversified sponsors, which support their liquidity position
and credit quality. Fitch expects CGPLC's credit metrics to
stabilise and position between those of TERPO (weaker) and NEP
(stronger) in the coming years.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer
(Parent Company Only Projections)

- Equity investments totalling about USD450 million for existing
   assets and new projects in 2018-2020.

- The Kosovo project funded with about 70:30 debt to equity
   split. Total capex for the project at EUR1.3 billion. CGPLC to
   own 51% of the project's equity and a third party the
   remaining 49%. Debt of the project to be raised by the project
   company.

- Dividends from the parent company to the shareholders starting
   from 2017.

RATING SENSITIVITIES

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

Fitch sees limited potential for a positive rating action
following the upgrade due to the company's scale, contract
portfolio and diversification. However, on a parent-only basis,
recourse debt/APOCF substantially below 3x on a sustained basis
and APOCF/interest higher than 5x may be positive for the rating.

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

- On a parent-only basis, recourse debt/APOCF above 4x on a
   sustained basis and APOCF/interest lower than 3x, for example
   driven by opportunistic recourse debt financing
- If the major PPAs experience unexpected and material price
   reduction or termination
- If more than 40% of total revenue becomes uncontracted
- A change in strategy to invest in more speculative, non-
   contracted assets or material decline in cash flow from
   contracted power generation assets
- If future projects, including the Kosovo project, experience
   material cost overruns and delays, are not prudently financed
   and/or encounter substantial political interference, causing
   financial distress at the project level and/or at the parent
   level so that CGPLC breaches the guideline ratios on a
   sustained basis
- If CGPC's involvement in the Kosovo power plant project is
   substantially larger than expected by Fitch

LIQUIDITY

Sufficient Liquidity: CGPLC will use EUR171 million of its large
cash balance at the parent level to fund the acquisition. The cash
balance was boosted by the IPO of CGPLC in November 2017 with net
proceeds of about USD370 million (EUR301 million). CGPLC had total
liquidity of USD490 million at parent level at end-3Q17, including
USD431 million corporate cash (pro forma for IPO proceeds and 4Q17
acquisitions) and USD59 million undrawn corporate level credit
facility due in 2020. CGPH's EUR700 million bonds are due in 2021.

Recovery Analysis: The 'BB+'/'RR1' ratings for CGPH's super senior
revolver and 'BB'/'RR3' for its senior secured notes are based on
Fitch's recovery waterfall analysis. Fitch values CGPLC's equity
interest in its operating subsidiaries at about USD800 million
under a distressed scenario, less administrative claims of 10%.

The 'RR1' rating for the revolver reflects outstanding recovery
prospects given default with securities historically recovering
91%-100% of current principal and related interest and reflects a
two-notch positive differential from CGPLC's 'BB-' IDR. The 'RR3'
rating for the senior secured notes reflects a one-notch positive
differential from the 'BB-' IDR and indicates good recovery of
principal and related interest of 51%-70%.

FULL LIST OF RATING ACTIONS

CGPLC
-- Long-Term IDR of 'BB-' with a Stable Outlook assigned.

CGLP
-- Long-Term IDR affirmed at 'BB-' with a Stable Outlook and
    withdrawn.

CGPH
-- Senior secured revolver affirmed at 'BB+/RR1';
-- Senior secured debt affirmed at 'BB/RR3'.


CO-OP BANK: Suffers Fifth Consecutive Year of Losses in 2017
------------------------------------------------------------
Nicholas Megaw at The Financial Times reports that The Co-Op Bank
suffered a fifth consecutive year of losses in 2017, but managed
to improve its performance in the second half of the year after
agreeing a GBP700 million rescue deal that left the former mutual
almost entirely owned by hedge funds.

The bank's adjusted pre-tax loss shrunk to GBP140.3 million,
excluding the impact of August's restructuring deal, down from
almost GBP500 million the previous year, the FT discloses.

However, while its bottom line benefited from further cost
cutting, its net interest income fell by almost 20%, to GBP317.6
million, the FT notes.

The group, as cited by the FT, said it had "anticipated"
uncertainty during the first half of the year, when it was
initially seeking a buyer and later negotiating its
recapitalization.

But it said performance had improved "in a number of key areas" in
the second half, including net mortgage lending, which grew by
GBP200 million year on year in the second half despite increased
redemptions from existing customers, the FT relays.

According to the FT, despite the recent improvement, however,
chief executive Liam Coleman warned that "we are operating in a
difficult marketplace and we expect increasing competition in the
mortgage market moving forward".

The bank's troubles stem from the disastrous takeover of Britannia
Building Society in 2009, which exposed it to large numbers of bad
property loans and led to the discovery of a GBP1.5 billion
capital hole in 2013, the FT recounts.

                     About Co-operative Bank

The Co-operative Bank plc is a retail and commercial bank in the
United Kingdom, with its headquarters in Balloon Street,
Manchester.

In 2013-2014, the Bank was the subject of a rescue plan to
address a capital shortfall of about GBP1.9 billion.  The Bank
mostly raised equity to cover the shortfall from hedge funds.

In February 2017, the Bank's board announced that they were
commencing a sale process for the Bank and were "inviting
offers."

The Troubled Company Reporter-Europe reported on Sept. 12, 2017,
that Moody's Investors Service upgraded the standalone baseline
credit assessment (BCA) of the Co-operative Bank Plc (the Co-op
Bank) to caa2 from ca in light of its improved credit profile and
capital position given the implementation of the bank's capital
increase.

Moody's upgraded the bank's long-term senior unsecured debt
rating to Caa2 from Ca, reflecting the completion of the bank's
capital raising plan without the imposition of any losses on this
class of creditors.

Moody's confirmed the long-term deposit ratings at Caa2, at the
same level as its standalone BCA, given the reduced amount of
subordination benefiting this class of liabilities due to the
cancellation of Tier 2 capital as part of the restructuring. The
short-term deposit ratings were affirmed at Not Prime.


HEALTHCARE SUPPORT: S&P Affirms BB+ Debt Ratings, Outlook Stable
----------------------------------------------------------------
S&P Global Ratings revised to stable from positive its outlook on
the senior secured debt issued by U.K.-based special-purpose
vehicle Healthcare Support (Newcastle) Finance PLC. At the same
time, S&P affirmed its 'BB+' long-term issue ratings on the debt.

The debt comprises a GBP115 million senior secured loan from the
European Investment Bank due March 2038, and GBP197.82 million of
senior secured bonds due September 2041. The debt was issued by
Healthcare Support (Newcastle) Finance PLC (Issuer) in 2005 and
lent to Healthcare Support (Newcastle) Ltd. (ProjectCo) to fund
the design and construction of two new facilities at the Freeman
Hospital and Royal Victoria Infirmary (RVI) in Newcastle, under a
38-year project agreement with the Newcastle-Upon-Tyne Hospitals
National Health Service (NHS) Foundation Trust (the Trust).

Both debt tranches benefit from an unconditional and irrevocable
payment guarantee of scheduled interest and principal provided by
Syncora Guarantee U.K. Ltd. According to S&P's criteria, the issue
rating on debt guaranteed by a monoline insurer is the higher of
the rating on the insurer and the S&P underlying rating (SPUR).
Because S&P does not rate Syncora, the rating on the issues
reflects the SPUR.

The recovery rating on the debt remains at '2', indicating S&P's
expectation of substantial (70%-90%; rounded estimate: 80%)
recovery of principal if there is a payment default that is not
covered by the financial guarantee.

The revision of the outlook to stable from positive reflects that
any rating upside is constrained by the continued tensions in the
relationship between the Trust and the project parties. Despite
the remedial actions taken by ProjectCo and the project's
facilities management (FM) service provider, Interserve FM, there
remains a large discrepancy between the Trust's and ProjectCo's
views on the service level provided. The Trust continues to
perceive that the delivery of some operational services remains
below the contractual requirements and the Trust's expectations.
In S&P's opinion, these disagreements may lead to increased
deductions from the unitary charge and currently constrain any
potential ratings upside in the near future.

Despite Interserve FM's current financial distress, the company is
continuing operations at the project and, in conjunction with
ProjectCo, has taken a number of positive steps to increase
performance-monitoring and to improve the quality of self-
reporting. These include the appointment of a new onsite business
improvement manager and commercial manager from Interserve FM,
along with the implementation of a new helpdesk IT system due to
go online in the first half of 2018.

Moreover, ProjectCo commissioned a third-party improvement report
at the end of 2017. ProjectCo subsequently appointed an
improvement manager to implement the report's findings, who will
start in March 2018. These actions have strong potential to
stabilize performance and relationships, in our opinion. The Trust
recognizes that service performance progress is being made, but
still needs to see further improvement to be satisfied.

S&P said, "Our 'BB+' rating continues to reflect our view of the
project's operational risk. Compared with other rated peers,
operational risk remains heightened by uncertainties related to
the ongoing disagreements among the project's parties. The
relationship between ProjectCo and the Trust has been strained
since the construction phase and the recent change in a number of
key Trust personnel adds to the uncertainty. We expect it to take
time for the parties to establish a stable working partnership
that minimizes the risk of future conflicts and material penalty
deductions. However, this is partly offset by the project's
financial health since the implementation of the settlement
agreement. We forecast our base-case annual debt service coverage
ratio (DSCR) will be 1.14x minimum in September 2020, with an
average annual DSCR of over 1.25x over the remaining life of the
debt.

"Our view of the project's performance under our downside case has
weakened, however, in light of the increased likelihood of higher
operating costs should the replacement of Interserve FM be
required, given its current financial difficulties. We therefore
make only a one-notch positive rating adjustment to reflect cash-
flow resilience under our downside stress scenario, down from two
notches previously."

The project's construction contractor, Laing O'Rourke Construction
Ltd. (LOR), is progressing well with the remedial works outlined
by the settlement agreement's deeds of amendment. S&P said, "We
assume in our base case that all settlement agreement remedial
works will be completed at LOR's cost prior to the longstop date
in March 2020, and we have removed our one-notch negative rating
adjustment previously assigned to reflect ProjectCo's exposure to
the remedial works' timeliness and costs."

The chilled water pipework rectification is advancing well, with
surveys completed at RVI and ongoing at Freeman Hospital. S&P
said, "Our financial analysis includes the maximum GBP0.5 million
contribution that ProjectCo could be required to make if remedial
works costs associated with chilled water pipework exceed certain
defined levels. Progress with the fire-stopping works, also part
of the settlement agreement's requirements, is less advanced than
the initial scheduled. We understand that LOR has a full-time team
addressing this issue."

The project was established for the purposes of financing the
design and construction of two new facilities at the Freeman
Hospital and RVI, designed to rationalize the Trust's sites in
Newcastle and provide better facilities for patients in its
catchment area. The project operates under a 38-year project
agreement with the Trust through to September 2043 and provides
hard FM and certain nonclinical services to the new facilities.

The stable outlook on the issue rating reflects that the ProjectCo
and Interserve FM have taken steps to improve service performance
and dialogue with the Trust that should support resolution of the
current disagreements. S&P also expects LOR to complete the
settlement agreement remedial works in line with the defined
remedial works' schedule and at its own cost prior to the March
2020 longstop date.

The stable outlook also reflects S&P's expectations of a minimum
annual DSCR above 1.13x (current minimum is 1.14x) in September
2020.

S&P said, "We could lower the rating by one or more notches if the
Trust continues to view the level of service performance as below
contractual requirements, leading to increased deductions from the
unitary charge and a higher risk of default under the contractual
arrangements.

"We could also lower the rating if LOR's progress in completing
the remedial works associated with the settlement agreement slips
materially behind schedule, increasing the risk of a breach of the
March 2020 longstop date, or if LOR does not cover the costs
associated with the remedial works."

The replacement of Interserve FM as the FM service provider would
also likely put the rating under pressure, given the potential for
increased operating costs.

S&P said, "We could also lower the rating by one notch should the
minimum annual DSCR trend toward 1.1x. This could be driven by
either increased operational costs and deductions to the unitary
charge.

"We currently see an upgrade as unlikely, due to the ongoing
disagreement among the project's parties. However, we could raise
the rating once the project has demonstrated a sustained period of
strong operational performance with minimal service performance
deductions. This would require that we see strong evidence that
the relationship between the Trust and the project parties is
robust and that all parties can work together to minimize the risk
of future conflicts and material penalty deductions. We would also
need to see completion of the settlement agreement's remedial
works prior to the March 2020 longstop date, performed at LOR's
cost."


LLOYDS BANKING: S&P Affirms BB- Rating on Tier 1 Hybrid Issuance
----------------------------------------------------------------
S&P Global Ratings said that it affirmed its 'BB-' ratings on the
high-trigger additional tier 1 (AT1) capital instruments issued by
Lloyds Banking Group PLC. The review followed Lloyds' announcement
on Feb. 21, 2018, that it had revised its capital policy and now
targets a Common Equity Tier 1 (CET1) ratio of "around 13% plus a
management buffer of around 1%" (on a fully loaded basis).
Previously, its target was "around 13%." Although the revision
indicates an incremental strengthening of Lloyds' already-strong
regulatory capitalization, S&P would only upgrade these AT1
instruments if it had high confidence that Lloyds will
consistently maintain CET1 above 14%--that is, at least 700 basis
points (bps) above the 7% conversion trigger.

Lloyds adjusted its capital policy in light of the third-quarter
2017 rise in its Pillar 2 requirement (P2A) to 3.0% from 2.5% and
the further rise in the countercyclical buffer on U.K. exposures
that the Bank of England announced in November 2017 and due to
take effect in late 2018. Including the capital conservation
buffer, at end-2017, Lloyds' CET1 capital requirement stood at
8.75%. S&P expects that it will rise to close to 13.0% by January
2019 following the full implementation of the capital conservation
and systemic risk buffers, and the hike in the countercyclical
buffer. On top of this base-line requirement, Lloyds' capital
policy reflects any regulatory Pillar 2 buffer (P2B) and Lloyds'
own management buffer.

S&P's 'BB-' ratings on the AT1s reflect the rating agency's 'a-'
assessment of Lloyds's unsupported group credit profile (GCP).

The issue ratings stand six notches below the unsupported GCP due
to the following deductions:

-- One notch because the notes are contractually subordinated;

-- Two notches to reflect the notes' discretionary coupon
    payments and regulatory Tier 1 capital status;

-- One notch because the notes contain a contractual write-down
    clause;

-- One notch because we project that Lloyds will maintain its
    CET1 ratio around, but not reliably above, 700 bps greater
    than the 7% CET1 (fully-loaded) mandatory conversion trigger
    level; and

-- One notch because the notes are issued (or guaranteed) by a
    nonoperating holding company (NOHC) and S&P assumes that
    these do not have an appreciably lower likelihood of
    regulatory intervention leading to nonpayment, principal
    write-down, or conversion to equity than (theoretical)
    equivalent instruments issued by the operating bank.

In S&P's view, Lloyds' capital policy demonstrates management's
sustained commitment to maintaining comfortable headroom above the
group's regulatory capital requirements. However, although it is
possible that the reported and pro forma CET1 ratios will operate
a little above 14% in the coming 18-24 months, the guidance of a
target ratio around 14% gives us insufficient confidence that the
CET1 will operate above 14.0% on a sustained basis.

S&P's issuer credit ratings on Lloyds Banking Group remain
unchanged at 'BBB+/A-2', with a stable outlook.


TULLOW OIL: Sells US$650 Mil. Bonds to Cover Debt Repayments
------------------------------------------------------------
Jillian Ambrose at The Telegraph reports that Tullow Oil will
continue to drive to reset its balance sheet after a tough three
year downturn by selling US$650 million (GBP470 million) of bonds
to cover its 2020 debt repayments.

The Africa-focused oil and gas producer revealed last month that
it returned to profit for the first time in three years in 2017
due to rising oil prices, The Telegraph recounts.

The recovery helped slash its debt pile by US$1.3 billion last
year to US$3.5 billion after its borrowing burden forced a US$750
million rights issue and a major financial restructuring, The
Telegraph relays.

Although the company won over the market with its better-than-
expected cash flows for last year, equity analysts have warned
that Tullow's debt "continues to loom large", The Telegraph notes.

According to The Telegraph, Hargreaves Lansdown warned that until
the debt is back at manageable levels Tullow's future will remain
largely outside of its control and at the mercy of volatile oil
prices.

Tullow Oil is an independent oil exploration and production
company founded in Tullow, Ireland with its headquarters in
London, United Kingdom.  It is focused on finding and monetizing
oil in Africa and South America.


* UK: Fewer Phoenix-Type Pre-Pack Sales Put Up for Scrutiny
-----------------------------------------------------------
Ben Chapman at Independent.co.uk reports that company directors
are dodging measures designed to stop abuse of the insolvency
system so that they can avoid paying their creditors, new research
suggests.

According to Independent.co.uk, experts have expressed concern
about the number of "phoenix" companies, which are created by
directors after a firm is put into what's known as a pre-pack
administration.

Research from accountancy firm Moore Stephens show that despite
the potential for abuse, just 23 such sales were referred for
scrutiny in 2017 by the Pre-Pack Pool, the independent review body
set up to police the system, Independent.co.uk discloses. The
number was down by more than half from the 49 recorded in 2016
despite the total number of corporate insolvencies rising 4% in
that time, Independent.co.uk notes.

The Pre-Pack Pool found that half of the 371 pre-pack
administrations between November 2015 and January 2017 involved a
purchase by a connected party, Independent.co.uk relays.

Moore Stephens, as cited by Independent.co.uk, said phoenix
pre-pack administrations can, when done correctly, give businesses
a second chance to succeed and save jobs.

Moore Stephens said the fall that occurred suggests the connected-
party purchasers of the business concerned have become
increasingly wary of opening these deals up to examination,
Independent.co.uk relates.

Brendan Clarkson -- brendan.clarkson@moorestephens.com -- head of
national creditor services at Moore Stephens, said it was
disappointing that even fewer phoenix-type pre-pack sales were
putting themselves up for independent scrutiny, Independent.co.uk
notes.


* UK: Restaurant Bosses Call for Action Amid Sector Woes
--------------------------------------------------------
BBC News reports that a group of restaurant bosses is warning the
government it must act to avoid "damaging closures and job
losses".

In a letter to Chancellor Philip Hammond, they have asked for
"root and branch" reform of business rates, BBC relates.

The chief executive of Bills and the chairman of pub and
restaurant chain Mitchells and Butlers are among the 15 who signed
the letter, BBC notes.

A string of chains including Jamie's Italian and Byron have closed
outlets recently amid financial difficulties, BBC relays.

In the letter to the chancellor, the business leaders described a
"perfect storm" that has hit their sector, BBC discloses.

They blamed "soaring business rates, rising employment costs and
Brexit-fuelled inflation" for the difficult trading conditions,
BBC states.

"We need government action now to reduce the unnecessary costs of
doing business if we are to avoid damaging closures and job
losses," BBC quotes the letter as saying.

"The sector is at a tipping point and needs focused attention
now."

According to research published recently, one in three of the UK's
top 100 restaurant groups are not making a profit,
BBC notes.

Consumer spending power -- squeezed by low wage growth and higher
inflation -- means consumers are reining in discretionary leisure
spending in general, BBC discloses.



                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *