/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/180418.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 Wednesday, April 18, 2018, Vol. 19, No. 076 Headlines A U S T R I A BAWAG GROUP: Moody's Assigns (P)Ba1 Rating to New EUR300MM Notes I R E L A N D HARVEST CLO XIX: Moody's Assigns (P)B2 Rating to Cl. F Sr. Notes SAMMON GROUP: High Court Confirms Appointment of Examiner L U X E M B O U R G SAMSONITE FINCO: Moody's Rates New EUR300MM Sr. Unsecured Debt B1 M O N T E N E G R O MONTENEGRO: Credit Profile Balances Relatively High Wealth Levels P O L A N D KOBUD SA: Lublin Court Announces Insolvency POLKAP SA: Files Motion for Opening of Rehabilitation Proceedings VISTAL STOCZNIA: Court Cancels Insolvency Proceedings R U S S I A AMUR GAS: Fitch Corrects April 9 Rating Release COMCOR JSC: Moody's Withdraws B2 Corporate Family Rating UC RUSAL: Fitch Withdraws BB- Long-Term Issuer Default Rating S P A I N SANTANDER HIPOTECARIO 7: DBRS Confirms 'C' Rating on Cl. C Notes T U R K E Y TURKCELL FINANSMAN: Fitch Affirms BB+ IDR, Outlook Now Stable U N I T E D K I N G D O M BETTERWARE: Put on Sale After Entering Administration NEW LOOK: Fitch Cuts Long-Term IDR to 'RD' on CVA Completion SELECT: Creditors Express Concern About Future of High Street ********* ============= A U S T R I A ============= BAWAG GROUP: Moody's Assigns (P)Ba1 Rating to New EUR300MM Notes ---------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)Ba1(hyb) rating to the proposed EUR300 million "Undated Non-Cumulative Fixed to Reset Rate Additional Tier 1 Notes of 2018" (ISIN XS1806328750) to be issued by BAWAG Group AG (BAWAG Group). Moody's provisional ratings, issued in advance of the final issuance, represent its preliminary credit opinion on the proposed notes. A definitive rating may differ from the provisional rating if the terms and conditions of the final issuance are materially different from those of the draft prospectus it reviewed. RATINGS RATIONALE ASSIGNMENT OF LOW TRIGGER AT1 INSTRUMENT RATING The provisional (P)Ba1(hyb) rating assigned to BAWAG Group's "low trigger" Additional Tier 1 (AT1) securities takes into account the instrument's undated deeply subordinated claim in liquidation, as well as the security's non-cumulative coupon deferral features, and is positioned three notches below BAWAG P.S.K.'s Adjusted Baseline Credit Assessment (BCA). According to Moody's framework for rating non-viability securities under its bank rating methodology, the agency typically positions the rating of low-trigger Additional Tier 1 securities three notches below the bank's Adjusted BCA. One notch reflects the high loss-given-failure that these securities are likely to face in a resolution scenario, due to their deep subordination, small volume and limited protection from residual equity. Moody's rating for non-viability securities also incorporates two additional notches to reflect the higher risk associated with the non-cumulative coupon skip mechanism, which could take effect prior to the issuer reaching the point of non- viability. Moody's considers the standalone intrinsic strength of BAWAG Group to match the BCA of BAWAG P.S.K., because the latter represents the sole important operating entity of the group; also, Moody's presently uses BAWAG Group financials to derive the BCA of BAWAG P.S.K. The AT1 securities are senior only to BAWAG Group's ordinary shares and other capital instruments that qualify as Common Equity Tier 1 (CET1). The instrument's principal is subject to a write-down on a contractual basis if BAWAG Group's consolidated CET1 ratio falls below 5.125%. Furthermore, a write-down or conversion into common equity could occur if the bank's regulator or the relevant resolution authority determine that the conditions for a write-down of the instrument are fulfilled and resolution authorities order such a write-down. RATING OUTLOOK Ratings on subordinated instruments, including AT1 instruments, do not carry outlooks. FACTORS THAT COULD LEAD TO AN UPGRADE/DOWNGRADE The rating of this instrument could be upgraded if the BCA of BAWAG P.S.K. is upgraded. Upward rating pressure on BAWAG P.S.K.'s BCA could result from (1) a significant improvement in solvency metrics; and (2) improved execution in terms of risk measurement and controls in relation to BAWAG P.S.K.'s portfolio acquisition-driven diversification and international expansion strategy. Further, the rating could be upgraded following a significant increase in its volume of equal-ranking Additional Tier 1 capital instruments, beyond Moody's current expectations and assumptions. This may lead to rating uplift under Moody's Advanced Loss Given Failure analysis for this debt class. Conversely, the rating of this instrument could be downgraded following a downgrade of BAWAG P.S.K.'s BCA. Downward pressure on BAWAG P.S.K.'s BCA could be triggered by (1) a set-back in the bank's effort to contain asset risks; (2) substantial additional credit charges beyond those currently expected; (3) an extended period of declining earnings and internal capital generation; and/or (4) a decline in capitalisation and regulatory capital buffers. LIST OF AFFECTED RATINGS Issuer: BAWAG Group AG Assignment: -- Preferred Stock non-cumulative rating (low-trigger AT1) of (P)Ba1(hyb) Outlook Action: -- No Outlook Assigned PRINCIPAL METHODOLOGY The principal methodology used in this rating was Banks published in September 2017. ============= I R E L A N D ============= HARVEST CLO XIX: Moody's Assigns (P)B2 Rating to Cl. F Sr. Notes ---------------------------------------------------------------- Moody's Investors Service announced that it has assigned the following provisional ratings to notes to be issued by Harvest CLO XIX DAC by: -- EUR1,500,000 Class X Senior Secured Floating Rate Notes due 2031, Assigned (P)Aaa (sf) -- EUR248,000,000 Class A Senior Secured Floating Rate Notes due 2031, Assigned (P)Aaa (sf) -- EUR22,000,000 Class B-1 Senior Secured Floating Rate Notes due 2031, Assigned (P)Aa2 (sf) -- EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031, Assigned (P)Aa2 (sf) -- EUR26,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)A2 (sf) -- EUR22,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)Baa2 (sf) -- EUR22,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Assigned (P)Ba2 (sf) -- EUR12,000,000 Class F 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, Investcorp Credit Management EU Limited ("Investcorp"), has sufficient experience and operational capacity and is capable of managing this CLO. Harvest CLO XIX DAC is a managed cash flow CLO. At least 90.0% of the portfolio must consist of senior secured loans and senior secured bonds and up to 10.0% of the portfolio may consist of unsecured obligations, second-lien loans, mezzanine loans and high yield bonds. The portfolio is expected to be approximately 75% ramped up as of the closing date and to be comprised predominantly of corporate loans to obligors domiciled in Western Europe. Investcorp will manage the CLO. It will direct the selection, acquisition and disposition of collateral on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction's 4.1-year reinvestment period. Thereafter, purchases are permitted using principal proceeds from unscheduled principal payments and proceeds from sales of credit risk and credit improved obligations, and are subject to certain restrictions. In addition to the eight classes of notes rated by Moody's, the Issuer will issue EUR40M 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. Investcorp's investment decisions and management of the transaction will also affect the notes' performance. Loss and Cash Flow Analysis: Moody's modeled the transaction using CDOEdge, a cash flow model based on the Binomial Expansion Technique, as described in Section 2.3 of the "Moody's Global Approach to Rating Collateralized Loan Obligations" rating methodology published in August 2017. The cash flow model evaluates all default scenarios that are then weighted considering the probabilities of the binomial distribution assumed for the portfolio default rate. In each default scenario, the corresponding loss for each class of notes is calculated given the incoming cash flows from the assets and the outgoing payments to third parties and noteholders. Therefore, the expected loss or EL for each tranche is the sum product of (i) the probability of occurrence of each default scenario and (ii) the loss derived from the cash flow model in each default scenario for each tranche. As such, Moody's encompasses the assessment of stressed scenarios. Moody's used the following base-case modeling assumptions: Par amount: EUR400,000,000 Diversity Score: 40 Weighted Average Rating Factor (WARF): 2675 Weighted Average Spread (WAS): 3.45% Weighted Average Recovery Rate (WARR): 42.0% Weighted Average Life (WAL): 8.5 years As part of its analysis, Moody's has addressed the potential exposure to obligors domiciled in countries with a local currency country risk ceiling of A1 or below. Given the portfolio constraints and the current sovereign ratings in Europe, such exposure may not exceed 10% of the total portfolio with exposures to countries with local currency country risk ceiling of Baa1 to Baa3 further limited to 5%. As a worst case scenario, a maximum 5% of the pool would be domiciled in countries with A3 and a maximum of 5% of the pool would be domiciled in countries with Baa3 local currency country ceiling each. The remainder of the pool will be domiciled in countries which currently have a local currency country ceiling of Aaa or Aa1 to Aa3. Given this portfolio composition, the model was run with different target par amounts depending on the target rating of each class as further described in the methodology. The portfolio haircuts are a function of the exposure size to peripheral countries and the target ratings of the rated notes and amount to 0.75% for the Class X Notes and Class A Notes, 0.50% for the Class B-1 Notes and Class B-2 Notes, 0.38% for the Class C Notes and 0% for classes D, E and F. Stress Scenarios: Together with the set of modeling assumptions above, Moody's conducted additional sensitivity analysis, which was an important component in determining the provisional ratings assigned to the rated notes. This sensitivity analysis includes increased default probability relative to the base case. Below is a summary of the impact of an increase in default probability (expressed in terms of WARF level) on each of the rated notes (shown in terms of the number of notch difference versus the current model output, whereby a negative difference corresponds to higher expected losses), holding all other factors equal. Change in WARF: WARF + 15% (to 3077 from 2675) Ratings Impact in Rating Notches: Class X Senior Secured Floating Rate Notes: 0 Class A Senior Secured Floating Rate Notes: 0 Class B-1 Senior Secured Floating Rate Notes: -2 Class B-2 Senior Secured Fixed Rate Notes: -2 Class C Senior Secured Deferrable Floating Rate Notes: -2 Class D Senior Secured Deferrable Floating Rate Notes: -2 Class E Senior Secured Deferrable Floating Rate Notes: -1 Class F Senior Secured Deferrable Floating Rate Notes: 0 Percentage Change in WARF: WARF +30% (to 3478 from 2675) Ratings Impact in Rating Notches: Class X Senior Secured Floating Rate Notes: 0 Class A Senior Secured Floating Rate Notes: -1 Class B-1 Senior Secured Floating Rate Notes: -3 Class B-2 Senior Secured Fixed Rate Notes: -3 Class C Senior Secured Deferrable Floating Rate Notes: -4 Class D Senior Secured Deferrable Floating Rate Notes: -3 Class E Senior Secured Deferrable Floating Rate Notes: -1 Class F Senior Secured Deferrable Floating Rate Notes: -2 SAMMON GROUP: High Court Confirms Appointment of Examiner --------------------------------------------------------- Tim Healy at Independent.ie reports that the High Court has confirmed the appointment of an examiner to building contractors the Sammon Group which got into difficulty over the collapse of UK construction giant Carillion. The Irish group, which is involved in several major school building projects in Ireland, sought the protection of the courts as it is owed some EUR8 million by an entity involving Carillion, Independent.ie relates. Earlier this month, Michael McAteer -- michael.mcateer@ie.gt.com -- of Grant Thornton Ireland was appointed interim examiner to the Co Kildare based Sammon Contracting Group and related companies, Sammon Contracting Ireland Ltd and Miceal Sammon Woodcraft Ltd., Independent.ie recounts. According to Independent.ie, the court was satisfied to appoint Mr. McAteer after an independent expert's report stated the companies have a reasonable prospect of surviving if certain steps are taken. These steps include the examiner putting together an agreement scheme of arrangement with the group's creditors, Independent.ie notes. If that scheme, which Mr. McAteer has up to 100 days to put together, is approved by the High Court, it will allow the group continue to trade as a going concern, Independent.ie states. =================== L U X E M B O U R G =================== SAMSONITE FINCO: Moody's Rates New EUR300MM Sr. Unsecured Debt B1 ----------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Samsonite Finco S.ar.l's proposed EUR300 million senior unsecured debt, and Ba1 ratings to Samsonite International S.A.'s (Samsonite) proposed $650 million revolver and Samsonite IP Holdings S.ar.l's proposed $828 million Term Loan A and $665 million Term Loan B. Moody's also affirmed Samsonite International S.A Ba2 Corporate Family Rating (CFR), Ba2-PD Probability of Default Rating, and SGL-1 speculative grade liquidity rating. The Ba2 ratings on Samsonite's existing credit facility (Term Loan A, Term Loan B and revolver) are affirmed and will be withdrawn at close. The rating outlook is stable. "Proceeds from the Euro unsecured debt and new term loans will be used to refinance Samsonite's existing credit facilities," "The refinancing is credit positive because it will save the company over $5 million a year in interest and extend debt maturities," said Kevin Cassidy, Senior Credit Officer at Moody's Investors Service.. Moody's affirmed the Ba2 CFR because the transaction does not meaningfully affect leverage and projected credit metrics remain in line with expectations for the rating category. The senior secured credit facility instruments are guaranteed by the company's domestic operating subsidiaries and are secured on a first lien basis by substantially all of the assets of Samsonite and its domestic subsidiaries. The Euro debt is also guaranteed by Samsonite and its domestic and non-domestic operating subsidiaries is effectively subordinated to the senior credit facilities. Some of the guarantor entities will also be co-borrowers under the revolver. Assignments: Issuer: Samsonite Finco S.ar.l -- Guaranteed Senior Unsecured Debt, Assigned B1 (LGD5) Issuer: Samsonite International S.A. -- Senior Secured Revolver, Assigned Ba1 (LGD3) Issuer: Samsonite IP Holdings S.ar.l -- Senior Secured Term Loan A, Assigned Ba1 (LGD3) -- Senior Secured Term Loan B, Assigned Ba1 (LGD3) Affirmations: Issuer: Samsonite International S.A. -- Probability of Default Rating, Affirmed Ba2-PD -- Speculative Grade Liquidity Rating, Affirmed SGL-1 -- Corporate Family Rating, Affirmed Ba2 -- Senior Secured Revolver, Term Loan A and Term Loan B, Affirmed Ba2 (LGD3), to be withdrawn at close Outlook for Samsonite International S.A., Samsonite IP Holdings S.ar.l and Samsonite Finco S.ar.l is Stable RATINGS RATIONALE Samsonite's Ba2 CFR reflects its substantial size for its product niche with revenue around $3.5 billion and moderately high leverage with debt to EBITDA around 3.5 times. Moody's expects leverage to approach 3 times in the next two years due to debt repayment with free cash flow and earnings growth. Because of Samsonite's sensitivity to discretionary consumer spending, Moody's expects Samsonite's credit metrics to be stronger than other similarly-rated consumer durable companies. The rating benefits from strong brand recognition and market share for Samsonite luggage and Tumi bags and accessories. The presence that Tumi brings in the premium segment of the global business bags, travel luggage and accessories market benefits the rating at it is more profitable than lower priced accessories. The rating also reflects Samsonite's substantial geographic diversification, with Asia and North America each generating over 35% of revenue and Europe around 20%. Samsonite is susceptible to various geo-political and other risks that affect travel behavior and discretionary consumer spending such as terrorist attacks and health concerns. The SGL-1 Speculative Grade Liquidity rating reflects Samsonite's very good liquidity, highlighted by cash balances of around $345 million. The company has a committed $650 million undrawn bank revolving credit facility, expiring in 2023. Moody's expect $125 to $175 million of free cash flow in the next year with capital expenditures estimated around $145 million. Moody's expect significant headroom under financial covenants (leverage and interest coverage) over the next year. Moody's don't anticipate any share repurchases in 2018. There are no near-term debt maturities. The stable outlook reflects Moody's view that the company's operating performance will remain strong and that debt-to-EBITDA leverage will be sustained around 3 times. If the company's operating performance or liquidity were to materially weaken for any reason, the rating could be lowered. Significant changes in travel patterns or discretionary consumer spending could prompt a downgrade. Key credit metrics driving a downgrade would be debt to EBITDA sustained above 4.0 times. A sustained improvement in operating performance and financial flexibility to weather downturns is necessary for an upgrade to be considered. Key credit metrics that could prompt an upgrade are debt-to-EBITDA sustained below 3 times and EBIT margins approaching 15%. The company's financial policies would also need to support maintenance of these credit metrics. The principal methodology used in these ratings was Consumer Durables Industry published in April 2017. Samsonite is a publicly-traded designer, manufacturer and distributor of travel luggage and bags worldwide. It offers luggage, business, computer, outdoor, and casual bags, as well as travel accessories and slim protective cases. Major brands include Samsonite and Tumi. Revenue approximates $3.5 billion. =================== M O N T E N E G R O =================== MONTENEGRO: Credit Profile Balances Relatively High Wealth Levels ----------------------------------------------------------------- Montenegro's credit profile is supported by its relatively high GDP per capita compared to regional and similarly rated peers, its good European Union accession prospects and its high level of investment projects, Moody's Investors Service said in a new report. Its credit challenges include the fiscal consequences of the Bar-Boljare highway project, the high share of foreign- currency-denominated public debt and the crystallisation of significant government guarantees since 2009. The report, "Government of Montenegro -- B1 stable, Annual credit analysis", is now available on www.moodys.com. Moody's subscribers can access this report via the link at the end of this press release. The research is an update to the markets and does not constitute a rating action. "After a significant rise in government debt in recent years, Moody's expect consolidation measures to stabilize Montenegro's fiscal position within two years and for debt-to-GDP to peak in 2019," said Heiko Peters, a Moody's Assistant Vice President -- Analyst and the report's author. Despite favorable business cycle indicators, Moody's expects GDP growth to slow to 3.5% in 2018 and to 3.0% in 2019. This will be due to significant fiscal consolidation measures and the fiscal drag on growth after the completion of the first part of the Bar- Boljare highway, expected in mid-2019, which will only partly be compensated by the tourism and energy sectors. Montenegro's moderate institutional strength reflects the country's operating environment which has been constrained by regulatory and administrative weaknesses. However, legal, administrative and procedural reforms are currently underway in preparation for EU accession. While actual accession is not expected before 2025, Moody's expects that the process itself will enhance the operating environment and lift potential growth. Montenegro's longstanding use of the euro as its legal tender leaves fiscal policy as its only policy stabilization tool, making the preservation of fiscal space all the more important. Moody's expects that the government's debt metrics will continue to weaken in 2018 and 2019 owing to the costs of large projects, in particular the Bar-Boljare highway. The debt-to-GDP ratio is likely to rise to 68.2% in 2019, well above where it peaked during the global financial crisis. After 2019, Moody's forecasts that the metrics will start to improve thanks to fiscal consolidation measures adopted end-2016 and mid-2017. Upward pressure on Montenegro's credit profile would emerge should the planned fiscal consolidation efforts place the government's debt trajectory on a definitive downward path. The completion of a majority of the European Union's acquis communautaire, which could accelerate the EU accession process, would also be positive. Equally, a reduction in contingent liabilities, stemming from a combination of materially lower government guarantees and lower risks posed by banks and state-owned enterprises (SOEs), would also be credit positive. Finally, further improvements in external competitiveness gained from the implementation of FDI- funded projects in the tourism and renewable energy sectors, as well as a material reduction in external vulnerability, would support Montenegro's sovereign credit profile. Downward pressure on Montenegro's credit profile would develop if the government's debt metrics and contingent liabilities continue to deteriorate substantially above Moody's central expectations and fail to move to a downward trajectory, possibly related to the Bar-Boljare highway project. Other negative factors would be a weakening of Montenegro's external position, likely reflecting the failure of efforts to gain competitiveness and expand tourism and other export-oriented industries. =========== P O L A N D =========== KOBUD SA: Lublin Court Announces Insolvency ------------------------------------------- Reuters reports that Bumech SA said the court in Lublin has announced the insolvency of its unit, Kobud SA. Bumech itself decided to file for restructuring proceedings in November 2017, Reuters relates. Poland-based Bumech SA provides services in the area of drilling underground headings in coal mines. POLKAP SA: Files Motion for Opening of Rehabilitation Proceedings ----------------------------------------------------------------- Reuters reports that Polkap S.A. on April 16 said that it has filed a motion to court in Bielsko-Biala for opening of rehabilitation proceedings. According to Reuters, as part of the motion the company has also included restructuring plan indicating that its implementation will restore the company's ability to service its obligations. In January, the company failed to buy-back Series B bonds on maturity date, Reuters recounts. The company said that due to the specific and niche market in which Polkap operates, it has also asked for a permission for the company and its representatives to perform the management duties over the whole company within the scope not exceeding the scope of ordinary management, Reuters relates. Polkap S.A. has produced unique headwear since 1924. Polkap specializes in manufacturing woolen and fur felt hat bodies and hats. VISTAL STOCZNIA: Court Cancels Insolvency Proceedings ----------------------------------------------------- Reuters reports that the court has canceled insolvency proceedings for Vistal Stocznia Remontowa. According to Reuters, the court found Vistal Stocznia Remontowa paid its creditors and is not insolvent. Vistal Stocznia Remontowa is based in Poland. =========== R U S S I A =========== AMUR GAS: Fitch Corrects April 9 Rating Release ----------------------------------------------- Fitch Ratings has issued a correction to the ratings release on Amur Gas Chemical Complex (Amur GCC) published on April 9, 2018, which incorrectly stated that Fitch estimates that investments in the Amur Gas Chemical Complex (Amur GCC) will lead to a material increase in SIBUR's leverage from 2021. Fitch's rating case envisages a decrease in the company's leverage in 2021-2022 compared to 2020 as cash flows generated by SIBUR's ZapSib plant, which is currently under construction, are projected to offset the pressure on leverage exerted by investments in Amur GCC. The revised release is as follows: Fitch Ratings has affirmed petrochemical group PAO SIBUR Holding's Long-Term Issuer Default Rating (IDR) at 'BB+' and revised its Outlook to Positive from Negative. The Positive Outlook reflects SIBUR's comfortable leverage throughout its intensive investment cycle, the reduced execution risk on the ZapSib project and the expected strengthening of its business profile once the project is launched in late 2019. SIBUR outperformed Fitch 2017 base case with funds from operations (FFO) adjusted net leverage at 2.0x. Fitch now forecast the ratio at 2.2x-2.3x until 2019 and below 2x thereafter as the company comes out of its intensive investment cycle and as capacity from ZapSib project comes on stream. This contrasts with Fitch previous leverage expectations of 3x in 2018 and 2.7x in 2019 on the back of higher capex and lower EBITDA forecasts. KEY RATING DRIVERS ZapSib Enhances Business Profile: SIBUR's business profile is commensurate with the 'BBB' category rating and is underpinned by its scale, sales mix balanced across energy and petrochemical products, and higher-than-average margins owing to contracted long-term access to low-cost feedstock. ZapSib, a multi-billion- dollar project, will add 2 million tonnes (mt) of polyethylene and polypropylene per annum from late 2019 to SIBUR's existing 1mt polymer capacity. Thus, after 2020 the share of polyolefins sales is expected to increase towards 45% from below 20% in 2017, reducing the current 30% share of more volatile oil-linked energy products. Reduced Execution Risk at ZapSib: The Positive Outlook captures Fitch view that the execution risk on the ZapSib project is limited, with more than 70% completed at end-2017 and nearly USD4 billion of capex remaining in 2018-2020 to be covered almost equally from SIBUR's operational cash flows and committed long- term ZapSib-related credit lines. This is also supported by SIBUR's proven track record of completing large-scale greenfield projects such as Tobolsk Polymer in the past. Comfortable Leverage Despite Large Capex: According to Fitch forecasts, SIBUR should keep its leverage within the comfortable 2.0x-2.5x range in 2018-2019 while capex-to-sales remains high at around 25%, driven by ZapSib. Fitch currently expect SIBUR to deleverage to below 2x by 2020 as ZapSib starts generating operating cash flow. Fitch also assume that the next big greenfield project does not start increasing capex before 2021. SIBUR outperformed Fitch earlier net leverage expectations of 2.7x at end-2017 and 3x at end-2018. Net leverage came at 2.0x at end-2017 primarily on the back of lower capex. Fitch now forecast SIBUR's net leverage to peak at 2.3x at end-2018 as Fitch oil price deck for 2018 is up 10% on last-year's, while capex is assumed to remain flat in 2018. Another Big Greenfield Project: Fitch base case assumes that SIBUR will embark on the Amur Gas Chemical Complex project in the Russian Far East after 2020. Amur GCC will process ethane from PJSC Gazprom's (BBB-/Positive) gas processing plant connected to the Power of Siberia gas pipeline, which is currently under construction, and have a polyethylene capacity of 1.5 mt. The completion of Amur GCC is not expected earlier than 2024. Fitch project the first significant Amur GCC-related capex outlay to take place in 2021 and estimate that the project will not lead to a material increase in leverage. Markets With Divergent Trends: Fitch expect SIBUR's energy products revenue, excluding inflation-driven natural gas sales, to follow Fitch's flat USD57.5/bbl Brent oil price deck while its share in total sales should drop as ZapSib will use liquefied petroleum gas (LPG) as feedstock. In polyolefins, Fitch expect a low single-digit price increase across all products except for polyethylene, which Fitch expect to be under pressure in 2018- 2019 and recover afterwards as the markets absorb new US capacity. Fitch assume broadly flat rubber prices, while prices for intermediate products should have a moderate correlation with oil prices. Moderate Oil and FX Exposure: Fitch estimates that higher oil prices coupled with a stronger rouble would have a roughly neutral effect on SIBUR's leverage. Prices for its products and operating costs have varying degrees of correlation with oil prices and the rouble, but an increase in oil prices and rouble appreciation would cumulatively lead to lower rouble-based EBITDA, according to Fitch projections. Fitch expect that such a reduction should be offset by lower capex, dividends and net debt, resulting in a limited impact on EBITDA-based leverage. DERIVATION SUMMARY SIBUR has larger production scale and stronger product and geographical diversification than its global petrochemical peers Methanex Corp. (BBB-/Stable) and NOVA Chemicals Corporation (BBB- /Negative), similar to Westlake Chemical Corporation (BBB/Stable) and behind Saudi Basic Industries Corporation (SABIC, A+/Stable) and Ineos Group Holdings S.A. (BB+/Stable). SIBUR's advantageous cost position underpins its strong EBITDAR margins that are sustainably above 30%, just behind SABIC's and Methanex's levels and ahead of other global peers' that are in the 15%-20% range. SIBUR's end-2017 leverage of 2x remains the lowest among its global peer group, behind that of higher-rated SABIC and stronger than that of the rest of its peers. Higher-levered Westlake, NOVA and Methanex are projected to delever towards 2x in the medium term, while SIBUR is expected to remain slightly above 2x in 2018-2019 and move comfortably below 2x once its large-scale ZapSib project starts contributing to operational cash flows. No parent/subsidiary linkage or Country Ceiling considerations are applicable to the ratings. SIBUR's ratings have been moderately affected by the operating environment in Russia. KEY ASSUMPTIONS Fitch's Key Assumptions Within Fitch Rating Case for the Issuer - Brent oil price flat at USD57.5/bbl in 2018-2021; - USD/RUB at 58 in 2018 and 59 thereafter; - prices of energy products (excluding natural gas) generally follow oil price movements; - minor changes in most polymer prices except polyethylene, which is set to recover after high single-digit 2018-19 pressure; - petrochemical sales to increase, gradually replacing over half of LPG sales when ZapSib ramps up in 2020-2021; - capex/sales averaging around 25% in 2018-2019, declining to 15% in 2020 and back to above 20% after 2020; - dividend payout of 25% of net income. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Completion and ramp-up of ZapSib coupled with FFO net adjusted leverage sustainably at or below 2.0x - Positive free cash flow (FCF) generation Developments That May, Individually or Collectively, Lead to Negative Rating Action - Material deterioration in the company's cost position or in access to low-cost feedstock - Aggressive capex or material ZapSib delays driving FFO adjusted net leverage above 2.0x could result in the stabilisation of the Outlook LIQUIDITY Adequate Liquidity: SIBUR's end-2017 cash balance of RUB48 billion covered its RUB30 billion short-term debt, while its committed long-term credit lines of RUB132 billion, mostly associated with the ZapSib project, cover Fitch-projected RUB40 billion negative free cash flow in 2018. No Subordination Risk Envisaged: SIBUR's USD500 million Eurobond does not face subordination issues arising from the ZapSib financing. Debt raised at PAO SIBUR Holding and at the ZapSib subsidiary from Russia's National Welfare Fund and Russian Direct Investment Fund is not contractually senior to the notes. The structural seniority of ZapSib debt will materialise once it becomes cash-generative in 2020. However, Fitch expect debt at ZapSib to remain around RUB200 billion in 2018-2021, below Fitch's 2x-2.5x prior-ranking debt to group EBITDA guidance, resulting in no subordination risk for noteholders. FULL LIST OF RATING ACTIONS PAO SIBUR Holding Long-Term Foreign-Currency IDR: affirmed at 'BB+'; Outlook revised to Positive from Negative Short-Term Foreign-Currency IDR: affirmed at 'B' Local-currency senior unsecured rating: affirmed at 'BB+' SIBUR Securities Designated Activity Company Foreign-currency senior unsecured rating: affirmed at 'BB+' COMCOR JSC: Moody's Withdraws B2 Corporate Family Rating -------------------------------------------------------- Moody's Investors Service has withdrawn all ratings of COMCOR JSC. At the time of withdrawal the ratings were: corporate family rating of B2 and probability of default rating of B2-PD. At the time of withdrawal these ratings had a stable outlook. RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. UC RUSAL: Fitch Withdraws BB- Long-Term Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has revised the Rating Watch on Russia-based aluminium company United Company Rusal Plc's (Rusal) Long-Term Issuer Default Rating (IDR) of 'BB-', Short-Term IDR of 'B' as well as Rusal Capital D.A.C.'s senior unsecured rating of 'BB- '/'RR4' to Negative from Evolving. Simultaneously Fitch has withdrawn all the ratings. KEY RATING DRIVERS These rating actions follow the sanctions imposed on Rusal by the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury. US persons will be prohibited from dealing with Rusal from May 7/June 5 (depending on the nature of the transaction). Additionally, non-US persons could face sanctions for knowingly facilitating significant transactions for or on behalf of Rusal. At this stage there is lack of guidance how the latter would be implemented. Rusal will be impacted by the sanctions as the number of counterparties that will be able and willing to provide procurement, marketing, funding or treasury services to the group is likely to be significantly reduced. It will take time for the market to gain visibility on how physical commodity flows will be diverted (Rusal's direct exports to US customers represented around 9% of aluminium sales volumes and 10% of revenues in 2017), together with associated pricing implications, and on what sources Rusal can rely on for funding. Rusal published a press release on 8 April 2018 indicating that their legal counsel is assessing whether OFAC sanctions may result in technical defaults in relation to certain credit obligations of the group. Also, an initial assessment by Rusal shows that it is highly likely that the impact of the sanctions will be materially adverse to the business and prospects of the group. This is reflected in the revision of the Rating Watch to Negative. Fitch has withdrawn the ratings for Rusal due to OFAC sanction restrictions. DERIVATION SUMMARY Not applicable KEY ASSUMPTIONS Not applicable RATING SENSITIVITIES Rating sensitivities are not applicable as the ratings have been withdrawn. LIQUIDITY Not applicable ========= S P A I N ========= SANTANDER HIPOTECARIO 7: DBRS Confirms 'C' Rating on Cl. C Notes ---------------------------------------------------------------- DBRS Ratings Limited upgraded and confirmed its ratings on three Santander RMBS transactions: FTA, Santander Hipotecario 7 (SH7): -- Series A notes confirmed at AAA (sf) -- Series B notes upgraded to B (high) (sf) from CCC (sf) -- Series C notes confirmed at C (sf) FTA, Santander Hipotecario 8 (SH8): -- Series A notes confirmed at AAA (sf) -- Series B notes confirmed at CCC (sf) -- Series C notes confirmed at C (sf) FTA, Santander Hipotecario 9 (SH9): -- Series A notes confirmed at AA (sf) -- Series B notes upgraded to B (high) (sf) from CCC (sf) -- Series C notes confirmed at C (sf) The ratings of the notes address the timely payment of interest and the ultimate payment of principal on or before their respective legal final maturity dates. Today's rating actions follow an annual review of the transactions and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies and defaults, as of the latest payment date for each transaction; -- Portfolio default rate (PD), loss given default (LGD) and expected loss assumptions for the outstanding collateral pools; and -- The current credit enhancement (CE) available to the rated notes to cover the expected losses for the Series A and B notes at their respective rating levels for each transaction. The Series C notes of each transaction were issued to fund the Reserve Fund and are in a first-loss position supported only by available excess spread. Given the characteristics of the Series C notes as defined in the transaction documents, the default would most likely be recognized at maturity or following an early termination of the transaction. The three transactions are securitizations of Spanish prime residential mortgage loans originated and serviced by Banco Santander SA (Santander). The transactions follow Spanish Securitization Law. PORTFOLIO PERFORMANCE AND ASSUMPTIONS The portfolios are performing within DBRS's expectations. For SH7, as of the March 2018 payment date, the arrears over 90 days were at 0.6% of the collateral portfolio, while the current cumulative default ratio stood at 3.7% of the original portfolio balance. For SH8, as of the February 2018 payment date, the 90+ delinquency ratio was at 1.1% of the collateral portfolio, while the current cumulative default ratio stood at 4.7%. For SH9, as of the February 2018 payment date, the 90+ delinquency ratio was at 0.5% of the collateral portfolio, while the current cumulative default ratio stood at 2.3%. DBRS conducted a loan-by-loan analysis on the remaining collateral pools of receivables and maintained its PD and LGD assumptions. For SH7 the base-case PD and LGD are 7.8% and 51.4%, respectively. For SH8 the base-case PD and LGD are 7.6% and 51%, respectively, while for SH9, they are 9.4% and 49.4%, respectively. CREDIT ENHANCEMENT The CEs available to all rated notes have continued to increase as the transactions continue to deleverage. The Series A notes to all three transactions are supported by the subordination of the Series B notes and the Reserve Fund, which is available to cover senior fees, interest and principal of the Series A and Series B notes. The Series B notes are solely supported by the Reserve Fund. For SH7, as of March 2018, the CE to the Series A notes and Series B notes was 38.8% and 4.8%, respectively, increasing from 35.7% and 4.2% as of March 2017. For SH8, as of February 2018, the CE to the Series A notes and Series B notes was 36.1% and 2%, respectively, increasing from 33% and 1.3% as at February 2017. For SH9, as of February 2018, the CE to the Class A notes and Class B notes was 42.4% and 5.5%, respectively, increasing from 39.3% and 4.9% as at February 2017. The Series C notes will be repaid according to the Reserve Fund amortization. All three Reserve Funds are able to amortize once they have reached 10% of the Outstanding Balance of the Series A and Series B notes, maintaining such percentage until the Reserve Fund reaches the floor of 1.8% of the initial amount of the Series A and Series B notes for SH7 and SH8, and the floor of 2.2% for SH9. The Reserve Funds are currently at EUR 50.7 million, EUR 9.3 million and EUR 26.3 million, which is below the targets of EUR 63.6 million, EUR 28.1 million and EUR 28.6 million for SH7, SH8 and SH9, respectively. Santander acts as the Account Bank for all three transactions and the Swap Counterparty for SH7 and SH8. Santander's reference rating of 'A', being one notch below its DBRS public Long-Term Critical Obligations Rating (COR) of A (high), is consistent with the Minimum Institution Rating as described in DBRS's "Legal Criteria for European Structured Finance Transactions" methodology, and meets the First Rating Threshold as described in DBRS's "Derivative Criteria for European Structured Finance Transactions" methodology, given the AAA (sf) ratings of the Series A notes. Notes: All figures are in euros unless otherwise noted. =========== T U R K E Y =========== TURKCELL FINANSMAN: Fitch Affirms BB+ IDR, Outlook Now Stable ------------------------------------------------------------- Fitch Ratings has revised Turkcell Finansman A.S.'s (TFS) Outlook to Stable from Negative while affirming the company's 'BB+' Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs). TFS's 'AA(tur)' National Long-Term Rating is unaffected. The rating action follows the recent Outlook revision of TFS's parent Turkcell Iletisim Hizmetleri A.S. KEY RATING DRIVERS TFS's ratings are based on potential support from the parent Turkcell. Fitch believes Turkcell would have a strong propensity to support TFS given (i) its 100% stake and full operational control; (ii) the close integration of the subsidiary with its parent; and (iii) TFS's role in customer base acquisition for Turkcell. The one-notch difference between the ratings of Turkcell and TFS reflects the subsidiary's focus on a different segment (finance rather than telecom services), its short operating history and different branding. These factors, in Fitch's view, moderately reduce the reputational risk for the parent or potential negative impact on other parts of Turkcell in case of TFS's default. TFS provides Turkcell retail customers with loans-on-mobile devices. The core product is small ticket unsecured loans with a 24-month tenor. The company plans to extend its product range but keep to Turkcell's clientele for the foreseeable future. However, over the long term Turkcell plans to develop TFS into a finance company. TFS sells its products directly via Turkcell's network across Turkey with over 3,000 sales-points. The business model relies heavily on digital integration with shops, allowing TFS to limit fixed costs. RATING SENSITIVITIES As TFS's IDRs are bound to Turkcell's, changes to the latter will be reflected in the subsidiary. The IDRs of Turkcell are currently one notch above the Turkish sovereign level and may move in line with them. An equalisation of TFS's ratings with those of Turkcell is unlikely in the near term unless (i) TFS's role in the Turkcell group strengthens, and (ii) TFS shows a longer track record of operations and of support from Turkcell. A weakening of Turkcell's propensity or ability to support TFS may result in a widening of the notching from the parent's ratings. The rating actions are as follows: Long-Term Issuer Local and Foreign Currency IDRs affirmed at 'BB+', Outlook revised to Stable from Negative Short-Term Local and Foreign Currency IDRs affirmed at 'B' National Long-Term Rating unaffected at 'AA(tur)', Outlook Stable Support Rating affirmed at '3' =========================== U N I T E D K I N G D O M =========================== BETTERWARE: Put on Sale After Entering Administration ----------------------------------------------------- Catherine Deshayes at Business Sale reports that assets of 90- year-old national catalogue company Betterware are on sale after the firm called in administrators following collapse. The door-to-door home products company, which has more than 5,000 distributors around Britain, has announced the appointment of administrators just days after sister company Kleeneze entered administration, Business Sale relates. In the past nine months, the firm has reportedly suffered as a result of difficult trading conditions leading to financial issues, Business Sale discloses. According to Business Sale, the company officially entered administration on April 13, with Gareth Rusling -- gareth.rusling@begbies-traynor.com -- and Claire Dowson -- claire.dowson@begbies-traynor.com -- of Begbies Traynor appointed joint administrators. As a result, all 94 members of staff have now been made redundant, Business Sale notes. Commenting on the firm's position, joint administrator Claire Dowson stated that a failure to find a purchaser for the whole business had led to the decision to offer interested parties the opportunity to acquire assets of the company, Business Sale relays. NEW LOOK: Fitch Cuts Long-Term IDR to 'RD' on CVA Completion ------------------------------------------------------------ Fitch Ratings has downgraded New Look Retail Group Ltd's (New Look) Long-Term Issuer Default Rating (IDR) to 'Restricted Default' (RD) from 'CC', following the completion of the company voluntary arrangement (CVA) which Fitch views as a distressed debt exchange (DDE) based on its existing criteria. Subsequently, Fitch has upgraded New Look's IDR to 'CC', which the agency believes is reflective of a post-DDE credit profile given ongoing restructuring and liquidity risks. The agency has also affirmed New Look Secured Issuer plc's 2022 senior secured notes at 'C' with a Recovery Rating 'RR5'/20% (previously: 'C'/RR5/23%) and New Look Senior Issuer plc's senior notes at 'C' with a Recovery Rating 'RR6'/0%. Fitch views the use of a CVA, a document filed with a UK court, as a critical factor in applying the DDE due to its collective and coercive nature on a particular creditor class. The CVA has enabled the company to come to a compromise agreement with landlord creditors and avoid an administration or liquidation. The CVA was passed by a 98% majority on 21 March 2018 and is effective for the next three years. It was launched by New Look to improve its operational performance by reducing its UK store estate and rental costs, amid weak consumer confidence, Brexit uncertainty and delivery delays. Store closures and rent reductions should reduce rents significantly in the next three years. The CVA is also part of a wider turnaround plan, which aims to re-focus on New Look's core customer base with a broad market appeal product range (unlike the more "niche" 2017 collection), while giving better value through reduced prices. New Look should also improve its supply chain, together with introducing further efficiencies and cost savings to improve the long-term profitability of the business. The 'CC' rating is based on continuing uncertainty over the capital structure given the sharp deterioration in operating performance evidenced by operating losses and accelerating cash outflows in 1Q to 3Q (nine months to December 2017). It also reflects the challenges of the turnaround strategy and of re- positioning New Look's business offering amid weakening UK consumer spending and structural changes to the UK clothing market. Although the 'CC' IDR also takes into account the improved operational cost profile given the significant rent reductions now agreed, it also reflects a weak liquidity position over the short- to medium-term. The now committed GBP100 million operating facility has some remaining draw-down availability, which should help ease liquidity pressure in the short term, probably until end-2018. KEY RATING DRIVERS Agreed Rent Restructuring: The rent restructuring will significantly reduce the rents receivable by landlords and is therefore viewed by Fitch as a DDE, as the CVA court process has imposed changes to the original terms of the leases signed with landlords, The materiality of the lease restructuring, along with its collective and coercive nature means that, in Fitch view, this has been carried out to avoid bankruptcy, similar insolvency or intervention proceedings. Weakening Leverage Metrics: Even though the CVA has significantly reduced the company's rent payment profile, Fitch still expect funds from operations (FFO) adjusted gross leverage to remain high over the next three years. This is due to the poor operating performance in the first three quarters of financial year ended March 2018 and a continued challenging trading environment. Financial flexibility remains weak, with Fitch-estimated FFO fixed charge cover only increasing above 1.0x from FY20. Liquidity Erosion: Following the full drawdown of the GBP100 million RCF in January 2018, management had expected to hold around GBP50 million cash by end-March 2018. The GBP100 million committed operating facility also gives the company some additional available liquidity. However, Fitch forecasts of continued cash outflow against a backdrop of Brexit uncertainty and weak UK consumer spending will put pressure on the company's liquidity headroom in FY18/19 (to end-March 2019), putting in doubt the company's ability to make a coupon payment in November 2018. Lower Recovery Expectations: The remaining availability under the committed GBP100 million operating facility is taken into account in the recovery analysis. Therefore recoveries for the senior secured debt have decreased slightly to 20% from 23% but are still compatible with 'RR5', resulting in the affirmation of its rating at 'C'. The weakened business model, as a result of intense competition in UK clothing, low profitability and the high execution risks in its turnaround strategy, results in an unchanged distressed multiple 4.5x. Fitch have also maintained the premium of 125% to LTM EBITDA of EUR45 million at end-3Q FY18. DERIVATION SUMMARY New Look is a fast fashion multichannel retailer operating in the value segment of the UK clothing & footwear market for women, men and teenage girls. It also generates around 20% of revenue internationally and continues to develop outside the UK, which partially helps offset weaknesses in its domestic retail market, to which it is heavily exposed. Its e-commerce platform is a key differentiating factor relative to other sector peers, such as Financiere IKKS S.A.S (CCC/RWN) or Novartex SA (CCC). However the company's unsustainable leverage (Fitch-estimated FFO lease- adjusted net leverage of 13.3x at end-March 2018) and compromised liquidity place New Look's rating in the 'CC' category, below these peers. The CVA will significantly reduce its rental liabilities, and provide some much-needed financial flexibility in the near-term. KEY ASSUMPTIONS Fitch's Key Assumptions within Fitch Rating Case for the Issuer - Reductions in price promotions in the UK, offset by a challenging consumer spending environment and online competition. - Continued pressure on EBITDA margin partly mitigated by the agreed rents renegotiation. - Capex to reduce to around 1.5% of sales as a cash preservation measure. - No dividend payments. Key Recovery Assumptions - The recovery analysis assumes that New Look would be considered a going concern in bankruptcy and that the company would be reorganised rather than liquidated. Fitch have assumed a 10% administrative claim in the recovery analysis. - The recovery analysis assumes a post-restructuring EBITDA of GBP100 million. At this level of EBITDA, which assumes the successful implementation of corrective measures and lower cash interest following a debt restructuring, Fitch would expect New Look to generate neutral free cash flow (FCF). - Fitch has maintained the distressed multiple at 4.5x (which had already been reduced from 5.0x in Fitch committee of 2 March 2018) in light of the weakened business model. The distressed multiple is between that of Novartex (4.0x) and IKKS (5.0x), as New Look still has a better brand reputation than Novartex's old and dated banners, but lower profit margins than IKKS. - Fitch has added the total amount of both the fully drawn RCF and the new operational facility, both of which rank super senior. Therefore, Fitch's expectations for senior secured note recoveries fall to 20%, in line with a 'C'/'RR5' rating. Following the payment waterfall, the senior noteholders would receive no recovery, in line with a 'C'/'RR6' rating. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - Successful implementation of the turnaround strategy leading to an improvement in the business model, and consequently a material improvement in EBITDA margin. - FCF trending towards neutral. - Significant improvement in liquidity position, including equity injection. Developments That May, Individually or Collectively, Lead to Negative Rating Action - Failure to overcome profit margin pressure, FX impact, loss of market share and weaker consumer confidence in the UK, leading to continued EBITDA margin erosion. - Further liquidity erosion leading to missed coupon and/or interest payments. - Formal announcement of a further DDE. LIQUIDITY Tight, Albeit Temporarily Improved, Liquidity: Management has confirmed that at 2 February 2018, it had GBP128million available liquidity, including that remaining under the partially drawn- down committed GBP100 million operating facility. However, Fitch expectation of continued cash outflow in the current challenging market conditions will put pressure on liquidity headroom, which Fitch expect to be very tight by 1Q19. Fitch does not expect any equity injection from Brait, New Look's private equity owner vehicle. FULL LIST OF RATING ACTIONS Full list of rating actions: New Look Retail Group Limited - Long-Term IDR downgraded to 'RD' from 'CC'; then upgraded to 'CC' New Look Secured Issuer plc - Senior secured notes affirmed at 'C'/'RR5' New Look Senior Issuer plc - Senior notes affirmed at 'C'/'RR6' SELECT: Creditors Express Concern About Future of High Street ------------------------------------------------------------- Pui-Guan Man and Tim Clark at Drapers report that creditors to Select have expressed growing concern about the future of the high street, after the majority approved the value womenswear chain's company voluntary arrangement (CVA) last week. Landlords and suppliers gave Select's CVA proposals the go-ahead on April 13 with a 94% majority vote, Drapers discloses. Under the plans, rent bills will be slashed by up to 75%, Drapers states. Select owner Cafer Mahiroglu told Drapers: "There was a bit of [trepidation] from a few [creditors], but they were all very supportive in getting together and conveying a positive message to the high street. They understand fashion retail has changed dramatically over the past 10 years. Landlords need to think about [rents] more carefully -- smaller town centers are dying as rent pressures increase." Although reluctant to accept rent cuts, Select's landlords were resigned to the retailer's use of the process, Drapers relates. Select employs 1,618 store staff and 132 head office employees. ********* 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 * * *