/raid1/www/Hosts/bankrupt/TCREUR_Public/180522.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

             Tuesday, May 22, 2018, Vol. 19, No. 100


                            Headlines


D E N M A R K

TDC A/S: Fitch Assigns 'BB+(EXP)' Rating to EUR3.9BB Term Loan B


G E R M A N Y

SKW STAHL-METALLURGIE: No Alternative to Financial Restructuring


I R E L A N D

CVC CORDATUS III: Moody's Assigns (P)B2 Rating to Class F Notes
CVC CORDATUS III: Fitch Assigns 'B-(EXP)' Rating to Cl. F-R Notes


I T A L Y

EVOCA SPA: Moody's Affirms 'B2' CFR, Outlook Stable
MONTE DEI PASCHI: FinMin Slams Five Star, Northern League


L U X E M B O U R G

AL SIRONA: Moody's Assigns First-Time B3 CFR, Outlook Stable


N O R W A Y

NORSKE SKOG: Moody's Withdraws Caa3 CFR & C Debenture Ratings


P O L A N D

SKOK RAFINERIA: BGZ BNP Paribas Wins KNF Approval for Takeover


R U S S I A

SVIAZ-BANK: Fitch Affirms Long-Term IDRs at 'BB-', Outlook Stable
VERTU RUSSIA: Moscow Court Confirms Bankruptcy


S P A I N

PYMES BANESTO 2: Fitch Affirms Rating on Class C Notes at 'CCsf'


T U R K E Y

BURSA: Fitch Affirms Long-Term IDRs at BB, Outlook Stable
IZMIR: Fitch Affirms BB+ Long-Term FC IDR, Outlook Stable
OJER TELEKOMUNIKASYON: Bank Debt Trades at 6% Off


U N I T E D   K I N G D O M

CAMBRIDGE ANALYTICA: Voluntary Chapter 7 Case Summary
CARILLION PLC: Jobs Lost Following Collapse Total More Than 2,303
DURHAM MORTGAGES A: Moody's Assigns (P)Ca Rating to Class X Notes
DURHAM MORTGAGES B: Moody's Assigns (P)Ca Rating to Class X Notes
LONMIN PLC: Bank Debt Trades at 4% Off

NIGHTHAWK ENERGY: English High Court Recognizes Ch.11 Proceedings


                            *********



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D E N M A R K
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TDC A/S: Fitch Assigns 'BB+(EXP)' Rating to EUR3.9BB Term Loan B
----------------------------------------------------------------
Fitch Ratings has assigned TDC A/S's (TDC) EUR3.9 billion term
loan B an expected rating of 'BB+(EXP)'. The loan is secured with
bank accounts, intra-group receivables, and shares in both TDC
and material subsidiaries.

Fitch estimates recoveries for the secured loan at 100%,
corresponding to a Recovery Rating of 'RR1'. This implies a
three-notch uplift to TDC's Long-Term Issuer Default Rating (IDR)
of 'B+', resulting in the 'BB+' rating for the term loan. The
final rating is contingent upon the receipt of final
documentation conforming materially to the preliminary
documentation reviewed.

KEY RATING DRIVERS

HoldCo/OpCo Debt Assessed Jointly: Following a change in
ownership of TDC, the new owners plan to refinance the
acquisition debt initially raised by its parent DKT Holdings ApS
(DKT; B+(EXP)/Stable) and its intermediate holding companies
(collectively known as HoldCo), as well as existing debt at TDC,
the operating entity (OpCo). Fitch expects total OpCo debt to
amount to EUR4.9 billion, including the new EUR3.9 billion senior
secured term loan B.

Fitch intends to analyse any HoldCo debt together with debt at
TDC as it seese both the OpCo and HoldCo tied together from a
credit perspective. Fitch does not expect to see significant
barriers to cash flow being up-streamed from the OpCo to the
HoldCo. Any HoldCo debt would be structurally subordinated to
both senior secured and unsecured debt at the OpCo.

Subordination Risk: TDC has asked the holders of EUR500 million
notes due 2022 and GBP425 million notes due 2023 to waive their
change of control put option rights. If they waive their put
option rights, Fitch expects these notes will become subordinated
to the new senior secured debt, which would also include
revolving credit (RCF) and capex facilities alongside the term
loan. This would reduce the recovery prospects of the 2022 and
2023 bonds if TDC goes into financial distress.

Spike in Leverage: Fitch expects the group's funds from
operations (FFO) adjusted net leverage to increase to 6.7x at
end-2018 from 3.6x at end-2017, following the acquisition. TDC's
leverage had previously benefited from 50% equity credit Fitch
had assigned to the company's DKK5.6 billion of hybrid
instruments. The planned refinancing of these hybrids will remove
this equity credit. Fitch believes that the company should be
able to reduce leverage below 6.5x within the next 18-24 months
with a combination of stable EBITDA generation, lower capex and
potentially reduced dividends.

Leverage Management: Fitch believes that the company retains
substantial flexibility in managing its leverage. Fitch estimates
its pre-dividend free cash flow (FCF) margin will remain strong
at high single-digits in 2018-2021. The increase in interest
expenses on the back of higher debt will be mitigated by lower
capex intensity, which Fitch estimates at around 17%-18% in 2018-
2021, compared with 20%-22% in 2015-2017. Shareholder
remuneration is another means for the new owners of TDC to manage
leverage and FCF as they should have more flexibility with the
dividend policy.

Fixed-Line Supportive: TDC owns both the incumbent copper network
and around half of the cable infrastructure in Denmark. This
provides the company with a stronger domestic fixed-line position
than its European peers. It also supports the company's long-term
credit profile given the lack of competing fixed-line
infrastructure. Combined with its number-one domestic market
position, TDC is thus able to sustain slightly higher leverage
than peers. Competitive pressures are more prevalent in the
mobile and business segments.

Slower EBITDA Declines: TDC's domestic EBITDA declined 4.6% yoy
in 2017 after 12.7% and 10.5% yoy declines in 2016 and 2015,
respectively, indicating that the company's strategy to reduce
costs and focus on bundled product value and quality-based
differentiation in conjunction with price increases is working.
Fitch expects that the new shareholders will not dramatically
change the company's operating strategy in the short- to medium-
term and TDC's EBITDA should continue to benefit from the
company's operating cost reduction programme in 2018.
Consistently strong performance in Norway should also contribute
to improving EBITDA for the group.

Network Separation Plan: The new shareholders intend to split the
company into two, creating a customer-facing service unit and a
wholesale network company. The latter should become a utility-
like regulated wholesale telecom operator generating stable long-
term returns. Fitch estimates these changes are likely to take a
few years. Fitch has not incorporated these long-term changes
into its ratings and will treat such a development as event risk,
due to a large number of uncertainties including regulation, the
terms of any network separation and impact on TDC's capital
structure.

DERIVATION SUMMARY

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

TDC is rated lower than other peer incumbents such as Royal KPN
N.V (BBB/Stable) due to notably higher leverage, which puts it
more in line with cable operators with similarly high leverage
such as VodafoneZiggo Group B.V. (B+/Stable), Unitymedia GmbH
(B+/RWP), Telenet Group Holding N.V. (BB-/Stable) and Virgin
Media Inc. (BB-/Stable). TDC's incumbent status, leading
positions in both fixed and mobile markets, and unique
infrastructure ownership justify higher leverage thresholds than
cable peers.

KEY ASSUMPTIONS

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

  - Stabilisation of revenue in 2018 and a flat trend thereafter

  - Broadly stable EBITDA margin at around 40%-41% in 2018-2021

  - Capex at around 17% of revenue in 2018-2021 (including
spectrum)

  - Conservative dividend policy to support initial deleveraging

  - No M&A

KEY RECOVERY RATING ASSUMPTIONS

- The recovery analysis assumes that the company would be
considered a going concern in bankruptcy and that it would
be reorganised rather than liquidated

  - A 10% administrative claim

  - Fitch's going-concern EBITDA estimate of DKK6.6 billion
reflects Fitch's view of a sustainable, post-reorganisation
EBITDA level upon which it bases the valuation of the company
  - Fitch's going-concern EBITDA estimate is 20% below LTM 2017
EBITDA, assuming likely operating challenges at the time of
distress
  - An enterprise value (EV) multiple of 6x is used to calculate
a post-reorganisation valuation and reflects a conservative mid-
cycle multiple
  - Fitch estimates the total amount of debt for claims at EUR6.8
billion, which includes debt instruments at OpCo and HoldCo level
as well as drawings on available credit facilities
  - Fitch incorporates EUR4.25 billion of prior-ranking debt
(term loan B of EUR3.9 billion, EUR300 million of RCF and 50% of
EUR200 million capex facility) and EUR1 billion of remaining
senior unsecured debt at OpCo. Fitch calculates the recovery
prospects for the senior secured debt at TDC at 'RR1'/100% which
implies a three-notch uplift to the IDR to result in the 'BB+'
rating for the term loan.

RATING SENSITIVITIES

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

  - Expectation that FFO adjusted net leverage will fall below
5.7x on a sustained basis

  - Strong and stable FCF generation, reflecting a stable
competitive and regulatory environment

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

  - FFO adjusted net leverage above 6.5x on a sustained basis

  - Further declines in the Danish business resulting in FCF
margins in mid-to low-single digits

LIQUIDITY

Comfortable Liquidity: Fitch expects the OpCo and HoldCo to have
comfortable liquidity positions upon refinancing, which will be
supported by EUR600 million of credit facilities. Fitch expects
this to comprise EUR500m of RCF and capex facilities at the OpCo,
and a EUR100m RCF at the HoldCo. The maturity profile is yet to
be established, but given the major refinancing of the existing
instruments, Fitch expects the first large debt pay-out to be
only in three to five years. The company's liquidity profile is
also supported by strong pre-dividend FCF generation.


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G E R M A N Y
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SKW STAHL-METALLURGIE: No Alternative to Financial Restructuring
----------------------------------------------------------------
There is no alternative to the financial restructuring of SKW
Stahl-Metallurgie Holding AG by means of an insolvency plan.  On
the May 18 general meeting in Munich, the group of shareholders
surrounding the member of the supervisory board Dr. Olaf Marx,
who have convocated the general meeting according to sec. 122
para. 3 sentence 1 German Stock Corporation Act ("AktG") have
despite repeated requests by the CEO, the supervisory board and
the shareholders, not produced a viable alternative concept for
the financial restructuring of the Company.

On December 1, 2017, insolvency proceedings under self-
administration have been initiated in respect of the Company.
The insolvency plan which has already been submitted provides --
as already communicated -- for a swap of a substantial part of
SKW Group's debt (in the nominal amount of approximately
EUR76 million) purchased by the US-Investor Speyside Equity into
equity, associated with the current shareholders exiting the
Company.

The debt which is kept by Speyside will be converted into a long-
time shareholder loan for the Company.

Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG,
highlighted the advantages of the insolvency plan as follows:
"SKW is maintained as a group and has the chance to continue its
professional up-wards trend with a balance sheet which is now
healthy again.  Up to know, we have managed to continue the
business operations in our subsidiaries despite the insolvency of
SKW Holding without considerable impediments.  Customers and
business partners remain loyal to our Company."

Addressing the group of shareholders which are massively opposing
the insolvency plan, Dr. Michel announced: "In the interest of
employees and customers, the management team of SKW will exercise
its best efforts to make sure that SKW group of companies is
preserved and the change for the better is not scattered by
further irresponsible acts of Dr. Marx and his associates."

The shareholders have, among other things, decided to reduce the
current supervisory board from six to four members.  Dr. Eva Nase
und Mr. Estanislao Urquijo have been newly elected to the
supervisory board.  The current members Dr. Alexander Kirsch
(Chairman), Volker Stegmann, Titus Weinheimer and Dr. Peter
Ramsauer have been dismissed.

          About SKW Stahl-Metallurgie Holding AG
                             and the
                     SKW Metallurgie Group

The SKW Metallurgie Group -- http://www.skw-steel.com-- is a
global market leader for chemical additives for hot metal
desulphurization and for cored wire and other products for
secondary metallurgy.  The Group's products enable steel-makers
to efficiently manufacture high-quality steel products. Clients
include the world's leading companies in the steel industry.  The
SKW Metallurgie Group has more than 50 years of metallurgical
know how, and currently operates in more than 40 countries.  What
is more, the Group is a leading supplier of Quab specialty
chemicals, which are mainly used in the global production of
industrial starch for the paper industry.  The SKW Metallurgie
Group is headquartered in Germany with production facilities
in France, the US, Canada, Mexico, Brazil, South Korea, Russia,
the Peoples' Republic of China and India (joint venture). Shares
of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt
Stock Exchange's Prime Standard since December 1, 2006; since
2011 (conversion to name shares) with ISIN DE000SKWM021.


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CVC CORDATUS III: Moody's Assigns (P)B2 Rating to Class F Notes
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to refinancing notes to be issued
by CVC Cordatus Loan Fund III Designated Activity Company:

EUR 2,000,000 Class X Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 250,500,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 20,000,000 Class A-2 Senior Secured Fixed Rate Notes due
2032, Assigned (P)Aaa (sf)

EUR 19,000,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 16,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2032, Assigned (P)Aa2 (sf)

EUR 32,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)A2 (sf)

EUR 28,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Baa2 (sf)

EUR 27,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Ba2 (sf)

EUR 13,000,000 Class F Senior 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 notes address the expected
loss posed to noteholders. The provisional ratings reflect the
risks due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets, 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, CVC Credit Partners Group Limited ("CVC"), has
sufficient experience and operational capacity and is capable of
managing this CLO.

The Issuer will issue the Refinancing Notes in connection with
the refinancing of the following classes of notes: the Class A-1
Notes, Class A-2 Notes, Class B-1 Notes, Class B-2 Notes, Class
C-1 Notes and Class C-2 Notes due July 8, 2027 previously issued
on December 16, 2016 as well as the Class D Notes, Class E Notes
and the Class F Notes due July 8, 2027 previously issued on May
8, 2014. On the Refinancing Date, the Issuer will sell part of
the portfolio and use the sale proceeds to redeem the Refinanced
Notes and will then repurchase the portfolio with the proceeds
from the issuance of the Refinancing Notes. On the Original
Closing Date, the Issuer also issued EUR47.9M of Subordinated
Notes. These will remain outstanding and their maturity will be
extended to match the maturity date of the refinancing notes.

CVC Cordatus III 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 underlying portfolio is expected to be 100%
ramped as of the second refinancing date.

CVC Credit Partners Group 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 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.

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. CVC Credit Partners Group
Limited'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.

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

Par Amount: EUR 436,500,000

Diversity Score: 43

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.55%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 43.5%

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 of 5% of the pool would be domiciled in
countries with local or foreign currency country ceiling of A1 to
A3 and a maximum 5% of the pool would be domiciled in countries
with local or foreign currency country ceiling of Baa1 to Baa3.
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 X, Class A-1 and Class A-2
notes, 0.5% for the Class B-1 and Class B-2 notes, 0.375% for the
Class C, and 0% for the Class D, Class E and Class F notes.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted an 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. Here 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 3335 from 2900)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

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 3770 from 2900)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: -1

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

Class A-2 Senior Secured Fixed 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: -3

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -3


CVC CORDATUS III: Fitch Assigns 'B-(EXP)' Rating to Cl. F-R Notes
-----------------------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund III Designated
Activity Company reissuance notes expected ratings, as follows:

Class X: 'AAA(EXP)sf'; Outlook Stable
Class A-1-RR: 'AAA(EXP)sf'; Outlook Stable
Class A-2-RR: 'AAA(EXP)sf'; Outlook Stable
Class B-1-RR: 'AA(EXP)sf'; Outlook Stable
Class B-2-RR: 'AA(EXP)sf'; Outlook Stable
Class C-RR: 'A(EXP)sf'; Outlook Stable
Class D-R: 'BBB-(EXP)sf'; Outlook Stable
Class E-R: 'BB(EXP)sf'; Outlook Stable
Class F-R: 'B-(EXP)sf'; Outlook Stable

CVC Cordatus Loan Fund III Designated Activity Company is a cash
flow collateralised loan obligation (CLO). On the issue date,
assets in the existing transaction will be liquidated and the
proceeds used to redeem the existing notes. Net proceeds from the
new notes will then be used to purchase back the portfolio. The
new eligibility criteria will only be required to be satisfied in
respect of assets being purchased after the issue date. The
portfolio is managed by CVC Credit Partners Investment Management
Ltd. The refinanced CLO envisages a reinvestment period ending 15
November 2022 and an 8.5-year weighted average life (WAL).

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

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch expects the average credit quality of obligors to be in the
'B' category. The Fitch weighted average rating factor (WARF) of
the identified portfolio is 32.92, which is below the covenanted
maximum WARF of 34.5 for assigning the expected ratings.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured
obligations. Fitch views the recovery prospects as more
favourable than for second-lien, unsecured and mezzanine assets.
The Fitch weighted average recovery rate (WARR) of the identified
portfolio is 63.42% which is above the covenanted minimum WARR of
60% for assigning the expected ratings.

Unhedged Non-Euro Assets Exposure

The transaction is allowed to invest up to 2.5% of the portfolio
in non-euro-denominated assets, subject to principal haircuts.
The manager can only invest in unhedged assets if after the
applicable haircuts the aggregate balance of the assets is above
the reinvestment target par balance.

Partial Interest Rate Hedge

Up to 10% of the portfolio can be invested in fixed-rate assets,
while fixed-rate liabilities represent 8.25% of the target par.
Fitch modelled both 0% and 10% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

TRANSACTION SUMMARY

The issuer will amend the capital structure and reset the
maturity of the notes as well as the reinvestment period. The
4.5-year reinvestment period is scheduled to end in 2022. The
issuer will introduce the new class X notes, the interest payment
of which will rank pari passu and pro-rata to the class A-1-R
notes. Principal on these notes is scheduled to amortise in eight
equal instalments starting from the first payment date. Class X
notional is excluded from the over-collateralisation test
calculation, but a breach of this test will divert interest and
principal proceeds to the repayment of the class X notes.

RATING SENSITIVITIES

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

Fitch tested the impact of the transaction's liquidity facility
on the ratings and found that the impact is immaterial. As such,
the liquidity facility was not considered in the base modelling.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other
Nationally Recognised Statistical Rating Organisations and/or
European Securities and Markets Authority-registered rating
agencies. Fitch has relied on the practices of the relevant
groups within Fitch and/or other rating agencies to assess the
asset portfolio information.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.


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I T A L Y
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EVOCA SPA: Moody's Affirms 'B2' CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR) of
EVOCA S.p.A. (EVOCA), the leading European manufacturer of
automatic vending machines for hot and cold drinks and other food
and beverage products. Concurrently, Moody's has affirmed the B2
instrument rating assigned to the company's EUR410 million first
lien senior secured notes. The outlook on the ratings has been
changed to stable from negative.

RATINGS RATIONALE

Evoca's B2 CFR and B2-PD PDR balance the company's strong
operating profile evidenced by its very high profitability and
its ability to generate good cash flows and improved business
profile following the acquisition of Saeco Vending and two
smaller activities during 2017 with high, and increased, leverage
and still small operations in a fairly mature market.

"Moody's decision to affirm the ratings assigned to EVOCA and to
stabilize the outlook reflects the solid performance the company
has delivered throughout 2017, in particular an EBITA margin in
the mid-teens (15.3% as adjusted by Moody's) and a retained cash
flow coverage of 7.1% of net debt", said Oliver Giani, Moody's
lead analyst for EVOCA. "Moody's also factored in its expectation
that EVOCA will be able to reduce leverage below 6x Debt / EBITDA
during 2018 while continuing to deliver a positive free cash
flow", he went on to say.

The ratings are primarily constrained by EVOCA's (1) small size
despite the acquisitions made in 2017 which increased revenues by
approximately EUR95-100 million to a level above EUR400 million
and limited product diversification; (2) high leverage, with
Moody's adjusted debt/ EBITDA of around 6.4x pro forma for full-
year effect of the transactions up from estimated 5.9x in 2016,
which still positions EVOCA weakly in the B2 rating category but
with an expectation of gradual improvements over the next 6-12
months; (3) some concentration risk in terms of geographies, with
the majority of revenues being generated in Western Europe; and
(4) limited revenue visibility, with a backlog of around one
month of sales.

The B2 ratings are supported by the company's (1) clear market
leadership in its key European markets; (2) very high
profitability, with a Moody's adjusted EBITA margin in a range
between 15% to 20% and its expectation that the company will be
able keep its profitability at the upper end of that range after
the integration of Saeco Vending, enabled by the breadth of the
company's product portfolio, constant innovation, profitable
accessories and spare parts business, and strong ties to the key
customers in the industry; and (3) asset light business model,
with fairly low tangible capex requirements and a variable cost
structure that helps to maintain stability of margins and to
support free cash flow generation.

LIQUIDITY

EVOCA has an adequate liquidity position which is supported by a
cash balance of approximately EUR57 million as of December 2017
and a revolving credit facility (RCF) of EUR40 million maturing
in 2022, completely undrawn as of December 2017. Moody's expects
that EVOCA's liquidity sources including cash on balance sheet,
the undrawn RCF and decent free cash flow generation are
sufficient to cover its liquidity needs over the next 12-18
months. The revolving facility only contains one net leverage
covenant that is being tested only when drawings under the RCF
increase above 35% of the total commitment. The company does not
have any debt maturities until 2023, when the EUR410 million bond
matures.

RATIONALE FOR INSTRUMENT RATING

The EUR410 million first lien senior secured notes issued by
EVOCA are rated B2, in line with the CFR, despite the fact that
they rank ahead of EUR100 million second lien senior secured
notes (unrated) that provide a cushion for the secured debt.
However, this is not viewed as sufficient to warrant an uplift
also considering the still weak positioning of EVOCA at B2. In a
default scenario, the super senior revolving facility ranks at
the top of the Loss Given Default waterfall, followed by the
EUR410 million first lien senior secured notes and trade payables
at second rank ahead of the EUR100 million second lien senior
secured bond. The guarantors for senior secured debt represent at
least 80% of group sales, EBITDA and assets.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that in the next
12 months EVOCA will be able to reduce leverage below 6.0x
debt/EBITDA and to achieve a Moody's adjusted EBITA margin in the
high teen percentage range, while generating positive free cash
flow.

WHAT COULD CHANGE THE RATINGS UP/DOWN

An upgrade would require that EVOCA shows the ability to sustain
its strong profitability with Moody's adjusted EBITA margin
returning to around 20% and healthy free cash flow generation,
while improving Moody's adjusted gross debt/EBITDA sustainably
below 5.0x (around 6.4x for 2017, pro-forma assuming full year
contribution of the acquisitions made).

EVOCA's ratings could be downgraded, if the company (1) fails to
reduce gross debt/EBITDA, as adjusted by Moody's, to below 6.0x
by FY2018; (2) EBITA margin, as adjusted by Moody's, deteriorates
towards the mid-teens on a sustainable basis; (3) free cash flow,
as adjusted by Moody's, deteriorates significantly towards break-
even; or (4) liquidity position tightens. In addition, any signs
of deteriorating market conditions on a sustained basis could put
pressure on the ratings.

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.

Headquartered in Bergamo, Italy, EVOCA S.p.A. (EVOCA, formerly
known as N&W Global Vending S.p.A.1) is the leading European
manufacturer of automatic vending machines for hot and cold
drinks and other food and beverage products. It also produces
coffee machines designed for use in hotels, restaurants,
cafeterias and offices. With a number of acquisitions over the
last few years the company increasingly focused on coffee and
reflected this in a new corporate branding and a change in
segment reporting. As of December 2017 EVOCA operated 8
manufacturing sites and had around 1,800 employees. On a pro-
forma basis the company reported revenue of more than EUR400
million for the year 2017.

EVOCA was acquired by funds controlled by private equity firm
Lone Star (unrated) for a total consideration of roughly EUR670
million in March 2016. In March 2017 EVOCA announced the
acquisition of Saeco Vending S.p.A. for an undisclosed purchase
price. Saeco Vending, headquartered in Gaggio Montano, Italy,
generated approximately EUR62 million revenues in 2016 and
employs approximately 330 employees. In addition, two
complementary bolt-on acquisitions, Ducale macchine da caffe
S.r.l. and a 67% stake in Cafection, have been done in June 2017.


MONTE DEI PASCHI: FinMin Slams Five Star, Northern League
---------------------------------------------------------
Rachel Sanderson at The Financial Times reports that Italy's
outgoing finance minister Pier Carlo Padoan slammed the Five Star
Movement and Northern League after shares in Italy's partially
privatized bank Monte dei Paschi di Siena plunged on suggestions
that the incoming anti-establishment parties could undertake a
new review of the bank's strategy.

Monte Paschi was partly bailed out by the state last year after
more than a year of wrangling with European authorities to save
it from bankruptcy, the FT recounts.  Its shares plunged nearly
10% on Thursday, May 17, 2018, their steepest fall in almost
seven months, the FT relates.

The drop occurred after Italy's Corriere della Sera newspaper
published a report, confirmed by Five Star and Northern League
officials, outlining plans to rewrite a strategy review for Monte
Paschi, the FT discloses.

Claudio Borghi, a member of the League who ran against Mr. Padoan
in Siena in the March 4 general elections, later told Reuters the
bank should retain control of the bank and stop a programme of
branch closures agreed with Brussels, the FT relays.

According to the FT, Mr. Padoan slammed the Northern League and
Five Star Movement for having "immediately created a crisis of
confidence".

The draft also suggested separating investment banking from
deposit-taking consumer banking, a review of Basel banking
regulations and reimbursement to retail investors of banks that
have been wound down, the FT states.

Mr. Padoan spent much of his time as finance minister in the
outgoing centre-left government seeking to shore up Italy's
fragile banking sector. He said the Monte Paschi's strategic plan
was being implemented in an "efficient manner", the FT notes.

Marco Morelli, Monte Paschi chief executive, told reporters he
was "going ahead with the plan", according to the FT.


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


AL SIRONA: Moody's Assigns First-Time B3 CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned a first-time B3 corporate
family rating (CFR) and a B3-PD Probability of Default Rating
(PDR) to Al Sirona (Luxembourg) Acquisition S.a.r.l. Sirona is
controlled by funds managed and advised by Advent International
and was formed in connection with its proposed acquisition of
Zentiva, Sanofi's European generics business. Concurrently,
Moody's has assigned a B2 instrument rating to the EUR880 million
equivalent term loan and EUR125 million revolving credit facility
(RCF), both senior secured first lien, and a Caa2 rating to the
EUR275 million second lien senior secured term loan, all being
raised by Sirona to fund the acquisition. The outlook on all
ratings is stable.

Zentiva is being acquired by Advent for an enterprise value of
EUR1.9 billion, with the balance of the funding requirement
funded by Advent's equity injection of approximately EUR810
million. The transaction is expected to complete by the end of
2018, subject to the finalization of definitive agreements,
completion of appropriate social processes and regulatory
approvals.

RATINGS RATIONALE

The B3 rating reflects (1) highly leveraged capital structure
with 2018 Moody's pro forma adjusted gross debt to EBITDA
(including R&D as they are considered as costs) of 7.7x (albeit
with potential for deleverage driven by positive earnings growth
and free cash flow); (2) small scale relative to other European
and global pharma rated peers, with relatively limited
geographical diversity; (3) commoditized nature of the portfolio;
(4) ongoing price erosion for the industry; (5) exposure to
foreign currency fluctuations, which can drive volatility in
results and; (6) modest execution risk from the separation from
Sanofi.

The rating also factors in the Group's (1) steady growth rate for
the industry driven by higher volumes more than offsetting weak
pricing; (2) strong profitability and cash flow generation and
positive free cash flow and; (3) strong market position in most
of its markets and good diversity in the small molecules market;
(4) pipeline with good coverage of small molecules losing
exclusively in the next 5 years.

Zentiva has experienced a 4% CAGR net sales decline over 2015-17,
due to a combination of market shares losses in France, price
erosion in the UK and a historical focus on short term
profitability over net sales growth under Sanofi's ownership.
Despite lower revenues, reported EBITDA improved by almost 7%
CAGR over 2015-17, driven by a focus on efficient cost management
leading to ongoing gross margin improvement.

Moody's expects muted earnings growth in 2018, with flat net
revenue and higher operating costs due to higher promotional
activity and increase in sales force, offset by stronger gross
margin on the back of continued cost management. Over 2019-20,
Moody's anticipates earnings to increase in the low-to mid
singledigit range driven by higher volumes (offset by weaker
pricing), and additional COGS improvements mainly coming from the
re-insourcing of production currently covered by external
parties.

Moody's expects stable operating cash flow with strong cash
conversion (operating cash flow to EBITDA) based on modest
working capital needs. In addition, Moody's expects annual capex
of EUR30 million over 2019-21 to prepare the Prague plant for
future volume growth, normalizing towards EUR20 million in 2022,
excluding R&D costs.

Based on that, Moody's anticipate positive free cash flow of
EUR80 million after interest paid in 2018, to decline towards
EUR50 million in 2019-20 mainly due to higher capex.

Due to the high level of opening debt, Moody's expects leverage
to remain above 7.0x in 2018 with potential for improvements
towards 6.5x by 2020, driven by a modest EBITDA increase and
stable gross debt. Moody's consider the R&D expenses as costs and
therefore are included in the EBITDA.

LIQUIDITY

Moody's expects the Group to maintain good liquidity driven by
(1) undrawn EUR125 million RCF; (2) positive free cash flow
generation; (3) a long debt maturity profile.

The RCF will be subject to a senior secured leverage covenant at
10.0x, tested quarterly if more than 40% of the facilities are
drawn.

STRUCTURAL CONSIDERATIONS

The B3-PD is in line with the CFR and reflects a 50% recovery
rate. The capital structure includes the EUR880 million
equivalent term loan and the EUR125 million RCF, both senior
secured first lien, ranking pari passu, and guaranteed by at
least 80% of Group EBITDA; and the EUR275 million senior secured
second lien term loan. Moody's has assigned a B2 instrument
rating to the first lien term loan and RCF reflecting the senior
ranking; and a Caa2 instrument rating to the second lien facility
reflecting the subordinated nature.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectations that operating
performance will remain broadly stable with deleveraging below
7.0x in 2019.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive pressure on the rating would materialize as a
combination of (1) stronger free cash flow used for debt
repayment and (2) adjusted gross debt/EBITDA to trend below 6.0x
on a sustainable basis.

Conversely, negative pressure on the rating could materialize if
(1) free cash flow generation turns negative on a sustainable
basis; (2) operating performance would start deteriorating.

With reported pro forma revenue of EUR742 million at December
2017, Zentiva is Sanofi's European generics business holding
number 1 market position in Czech Republic, Slovakia and Romania;
and strong market position in Germany and France. Zentiva
benefits from a vertical integrated model through the value
chain.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Pharmaceutical Industry published in June 2017.

LIST OF ASSIGNED RATINGS

Assignments:

Issuer: AI Sirona (Luxembourg) Acquisition S.a.r.l.

Corporate Family Rating, Assigned B3

Probability of Default Rating, Assigned B3-PD

Senior Secured Bank Credit Facility, Assigned B2

Senior Secured Bank Credit Facility, Assigned Caa2

Outlook Actions:

Issuer: AI Sirona (Luxembourg) Acquisition S.a.r.l.

Outlook, Assigned Stable


===========
N O R W A Y
===========


NORSKE SKOG: Moody's Withdraws Caa3 CFR & C Debenture Ratings
-------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings and outlooks
of Norske Skogindustrier ASA and its subsidiaries Norske Skog AS
and Norske Skog Holdings AS.

RATINGS RATIONALE

Moody's rating action primarily reflects Norske Skogindustrier
ASA filing for bankruptcy in December 2017. It also reflects the
announcement from May 5, 2018 that the fund Oceanwood had entered
into a sale and purchase agreement to buy the entire issued share
capital of Norske Skog AS. The rating agency understands that
upon the successful closure of the transaction no rated debt will
remain outstanding.

Norske Skog AS, with headquarters in Oslo, Norway, is among the
world's leading newsprint and magazine producers with production
in Europe (around 70% of sales) and Australasia (30%) and an
annual production capacity of 2.7 million tons (fully owned
mills). In 2016 Norske Skog AS recorded sales of around NOK11.8
billion (approximately US$1.4 billion).

Withdrawals:

Issuer: Norske Skog AS

Senior Secured Regular Bond/Debenture, Withdrawn, previously
rated Caa2

Issuer: Norske Skog Holdings AS

Senior Unsecured Regular Bond/Debentures, Withdrawn, previously
rated Ca

Issuer: Norske Skogindustrier ASA

Probability of Default Rating, Withdrawn, previously rated D-PD

Corporate Family Rating, Withdrawn, previously rated Caa3

Senior Subordinated Regular Bond/Debenture, Withdrawn, previously
rated C

Senior Unsecured Regular Bond/Debentures, Withdrawn, previously
rated C

Outlook Actions:

Issuer: Norske Skog AS

Outlook, Changed To Rating Withdrawn From Stable

Issuer: Norske Skog Holdings AS

Outlook, Changed To Rating Withdrawn From Stable

Issuer: Norske Skogindustrier ASA

Outlook, Changed To Rating Withdrawn From Stable


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


SKOK RAFINERIA: BGZ BNP Paribas Wins KNF Approval for Takeover
--------------------------------------------------------------
Polska Agencja Prasowa reports that BGZ BNP Paribas won approval
of financial market watchdog KNF for takeover of insolvent credit
and savings union SKOK Rafineria.

SKOK Rafineria had PLN142.7 million in assets as of June 13 2017,
PAP relays, citing the savings union's appointed receiver.


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


SVIAZ-BANK: Fitch Affirms Long-Term IDRs at 'BB-', Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of Sviaz-Bank (SB), Globexbank (GB) and Bank Rossiysky
Capital (RosCap) at 'BB-' and Eurofinance Mosnarbank (EMB) at
'B+'. The agency has revised the Outlooks on SB's and GB's IDRs
to Stable from Negative, removed RosCap's IDR from Rating Watch
Negative (RWN) and assigned a Positive Outlook.

KEY RATING DRIVERS

IDRS, SUPPORT RATING, SUPPORT RATING FLOOR (SRF) AND SENIOR DEBT
SB AND GB

The affirmation of SB's and GB's Long-Term IDRs at 'BB-' reflects
Fitch's view of the probability of potential support from their
sole shareholder, state-owned Vnesheconombank (VEB, BBB-
/Positive). The revision of the Outlooks on the two banks to
Stable from Negative reflects the reduced probability that the
banks will be sold in the near term.

This follows a recent decision by VEB's Supervisory Board to
first merge the banks under the SB brand and then seek to sell
the merged entity in three to four years after it has established
an effective business model. In Fitch's view, the potential sale
would depend on investor interest in Russian banking assets
(currently considered as low), VEB's sale price expectations and
SB's performance post-merger.

At the same time, Fitch believes that prior to the sale SB (and
GB pre-merger) are likely to be supported by VEB in case of need.
This takes into account: (i) the banks' full ownership by VEB;
(ii) the track record of equity and liquidity support to date;
(iii) potential high reputational risk for VEB in case of SB or
GB defaulting; and (iv) the post-merger bank likely qualifying as
a principal subsidiary for VEB as per the cross-default clause in
its LPN programme documentation.

SB's senior unsecured debt ratings have been affirmed in line
with its Long-Term Local-Currency IDR. The debt ratings apply to
debt issued by SB prior to 1 August 2014.

RosCap

The affirmation of RosCap's IDRs at 'BB-' and Support Rating at
'3', and removal of the ratings from RWN reflects (i) the
transfer in 4Q17 of the bank's ownership from the Depository
Insurance Agency (DIA) to Joint-Stock Company DOM.RF Russia
Housing and Urban Development Corporation (DOMRF, 'BBB-
/Positive', previously known as the state Agency for Housing
Mortgage Lending (AHML)); (ii) the significant capital support to
the bank from the Russian authorities prior to its transfer, and
an additional sizeable injection expected in 2018; and (iii)
DOMRF's plans to incorporate the bank into its core operations,
namely mortgage origination and residential construction
development.

At the same time, the three-notch difference between DOMRF's and
RosCap's IDRs reflects (i) the limited track record of operations
under the new shareholder and therefore some uncertainty about
the strategic importance of the bank for DOMRF; (ii) RosCap's
still weak solvency, despite the recent balance sheet clean-up,
and the need for further equity injections; and (iii) the
parent's limited ability to provide support to RosCap without
DOMRF itself receiving government assistance, given the bank's
large size (40% of DOMRF's consolidated assets).

The Positive Outlook on RosCap's IDRs mirrors that on DOMRF's
IDRs. Furthermore, it reflects a potential narrowing in the
notching between the parent and subsidiary bank, if the bank
demonstrates its importance for DOMRF's fulfilment of its policy
role. RosCap's expected rebranding into DOM.RF Bank would also
likely be positive for the parent's propensity to support the
bank due to increasing reputational risks in case of the
subsidiary's default.

Fitch has not assigned a Viability Rating (VR) to RosCap due to
its still negative core capital and uncertainty about its future
business model and the extent to which it will operate as a
predominantly policy, rather than commercial, institution. The
bank's integration with the parent, reorganisation, further
balance sheet clean-up/recapitalisation and rebranding will be
ongoing at least until end-2018.

A large RUB50 billion of state support (equal to 19% of
regulatory RWAs), including an equity injection and buy out of
bad assets, was provided to RosCap prior to its transfer in 4Q17.
However, in Fitch's view, this has not been sufficient to fully
reserve the bank's problem assets, and RosCap has therefore
requested an additional RUB23 billion equity injection from its
shareholder (equal to 9% of end-1Q18 regulatory RWAs). In Fitch's
view, this support would likely come from the Russian authorities
and be channelled through DOMRF to the bank not later than end-
2018 when RosCap's rehabilitation procedure should be completed.

The Fitch Core Capital (FCC) ratio was estimated at a negative
12% at end-2017, and the agency expects the ratio to improve to
around positive 6% after the anticipated recap and the expected
write-down of non-market subordinated debt. At end-1Q18, RosCap
had regulatory capital ratios above the Central Bank of Russia's
(CBR) minimum requirements, but below the requirements plus the
buffers. At the same time, Fitch estimates RosCap's regulatory
capital ratios would be near zero or negative if all required
reserves had been created at end-1Q18. However, the bank is
expected to comply with the regulatory minimums including the
buffers after the recap.

EMB

EMB's ratings reflect the bank's standalone profile, as expressed
by a VR of 'b+', and do not take into account potential support
from the Russian and Venezuelan authorities. This is due to
continued delays to the ratification of an intergovernmental
agreement, initially signed by Russia (BBB-/Positive) and
Venezuela (RD) in 2011 to transform the bank into an
international financial institution (IFI), equally owned by the
two governments directly or through government agencies.
Currently, EMB is owned by Gazprombank (BB+/Positive; 25% plus
one share), VTB Bank (unrated; 25% plus one share) and the
National Development Fund of Venezuela (50% minus two shares).

VRs

SB AND GB

The downgrade of SB's VR to 'b-' from 'b' reflects continued
asset quality deterioration which coupled with weak pre-
impairment performance, has resulted in downward pressure on SB's
capitalisation, and also the upcoming merger with the somewhat
weaker GB.

The affirmation of GB's VR at 'b-' reflects significant asset
quality risks stemming from sizable problem assets, including
unreserved restructured loans and real estate investments, and
weak operating performance. At the same time, the rating benefits
from the recently improved capital and liquidity positions.

SB's NPLs stood at 9.5% of gross loans at end-2017, up from 8% at
end-2016, and were 1.3x covered by impairment reserves.
Restructured loans made up a further 5% of gross loans and were
adequately collateralised. The loan book is highly concentrated
by borrowers, with the 25 largest accounting for 45% of total
loans. Fitch assesses most of these as of moderate/low risk,
while net of reserves high risk loans accounted for 0.3x of FCC.
SB's exposure to market risk is also higher than at other Fitch-
rated banks in Russia as long-duration (with maturity up to 2047)
sovereign bonds made up 21% of the securities portfolio (equal to
38% of FCC).

GB's asset quality is weaker. NPLs were an estimated 21% of the
end-1Q18 book, and restructured, but currently performing,
exposures a further 18%, the latter significantly reduced after
VEB purchased a portfolio in 1Q18. Fitch estimates that at end-
1Q18 problem loans comprised 39% of the portfolio, reserve
coverage was over 75% and uncovered problem loans accounted for
25% of FCC. Asset quality is also pressured by the bank's
investment property (0.4x FCC at end-2017) and an equity
investment into development company Rose Group (a further 0.2x).

The banks showed improvements in pre-impairment profitability in
2017 (about positive 1% of average assets for both, compared with
breakeven for SB and marginally negative for GB in 2016).
However, due to asset quality problems the banks reported
negative 1%-2% ROAAs, net of non-recurring items.

SB's capital position has been under pressure due to weak
performance, with the FCC to regulatory risk-weighted assets
(RWAs) ratio down to 8.5% at end-2017 from 9.7% at end-2016. GB's
FCC ratio improved to 15% at end-2017 (from 10.3% at end-2016)
despite weak results thanks to a significant reduction in RWAs.
However, Fitch regards GB's capitalisation as weak due to a high
share of unreserved problem loans and non-core investments. Both
banks' FCC ratios will likely fall by about 1ppt in 1Q18 due to
the impact of IFRS 9.

Liquidity is acceptable at both banks, with liquid assets (cash
and equivalents, short-term interbank placements and bonds
eligible for repo funding with the CBR) covering, respectively,
32% and 50% of SB's and GB's liabilities at end-1Q18. Third-party
wholesale funding is limited at both banks, but SB is more
dependent on parent funding (19% of total liabilties at end-
2017).

EMB

The affirmation of EMB's VR reflects very limited changes in the
bank's credit profile over the last year. The VR continues to
capture a narrow and concentrated franchise, moderate pre-
impairment profitability, volatile funding and a lack of a
defined alternative strategy in case the transformation plan is
cancelled. At the same time, the ratings factor in EMB's solid
capitalisation, ample liquidity and reasonable asset quality.

Credit risk stems from EMB's high-risk Venezuelan exposure, equal
to 6% of end-2017 FCC, net of impairment reserves. Except for
these, the securities book (30% of total assets) is of decent
quality, with 70% rated in the 'BB' category or higher. The loan
book is small (9% of total assets at end-2017) and its quality is
reasonable, in Fitch's view.

EMB's capital position is healthy, with Tier 1 and total
regulatory CARs slightly up to high 28.8% and 33.1% at end-2017,
providing a solid buffer against market and credit risks. EMB's
profitability in 2017 was negative (ROAA and ROAE of -4% and -13%
in 2017, respectively) reflecting large provisions on the
Venezuelan exposure. The bank's pre-impairment profit for 2017
equalled a moderate 1.2% of RWAs.

EMB's balance sheet has been volatile, driven by sporadic inflows
of large short-term placements by Venezuelan entities (in 2017,
the bank's customer accounts almost doubled), reflecting its
focus on trade finance and settlement operations. However, these
have been prudently covered with liquid assets. At end-2017,
EMB's total available liquidity, net of potential debt repayments
within one year, equalled a substantial 41% of total liabilities.

RATING SENSITIVITIES

SB AND GB

SB's and GB's IDRs could be downgraded if the propensity of VEB
to provide support weakens, or if the Russian Federation, and
hence VEB, are downgraded, or the banks are sold to lower
rated/unrated investors (in which case the IDRs will be
downgraded to the level of banks' VRs). The IDRs are unlikely to
be upgraded if VEB is upgraded given the long-term plan to sell
the post-merger bank.

SB's and GB's VRs could be downgraded in case of significant
asset quality deterioration or weak performance resulting in
material capital erosion without timely recapitalisation. Upside
is limited and would require a significant improvement of the
banks' asset quality and core profitability.

RosCap

Any change in DOMRF's IDR is likely to result in similar rating
action on the bank's IDR, with the current notching maintained.

RosCap's IDRs could be upgraded, and the notching decreased, if
the bank becomes firmly integrated into DOMRF's core strategy and
demonstrates high importance for the parent's policy operations
through sound execution.

Conversely, the ratings could be affirmed and the Outlook revised
to Stable if DOMRF's Outlook is revised to Stable.

EMB

Successful transformation of EMB into an IFI could lead to an
upgrade of its IDRs, although the level of the ratings would
depend on the ratings of Russia and Venezuela, Fitch's assessment
of the bank's policy role and the extent of the shareholders'
capital commitments.

Capital deterioration as a result of a significant increase in
leverage or material losses, or increased exposure to Venezuela,
could lead to a downgrade. Upside for EMB's VR is currently
limited given the bank's narrow franchise and mixed performance.

The rating actions are as follows:

SB
Long-Term Foreign- and Local Currency IDRs: affirmed at 'BB-';
Outlooks revised to Stable from Negative
Short-Term Foreign Currency IDR: affirmed at 'B'
Viability Rating: downgraded to 'b-' from 'b'
Support Rating: affirmed at '3'
Senior unsecured debt: affirmed at 'BB-'

GB
Long-Term Foreign- and Local Currency IDRs: affirmed at 'BB-';
Outlooks revised to Stable from Negative
Short-Term Foreign Currency IDR: affirmed at 'B'
Support Rating: affirmed at '3'
Viability Rating: affirmed at 'b-'

RosCap
Long-Term Foreign- and Local Currency IDRs: affirmed at 'BB-';
off RWN; Outlooks Positive
Short-Term Foreign Currency IDR: affirmed at 'B'
Support Rating: affirmed at '3'; off RWN
Support Rating Floor: revised to 'No Floor' from 'BB-'; off RWN
Senior unsecured debt: affirmed at 'BB-'; off RWN

EMB
Long-Term Foreign- and Local Currency IDRs: affirmed at 'B+';
Outlooks Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'


VERTU RUSSIA: Moscow Court Confirms Bankruptcy
----------------------------------------------
Telecompaper, citing Tdaily.ru, reports that a court in Moscow
has confirmed the bankruptcy of the Russian subsidiary of UK-
based company Vertu, a producer of premium smartphones.

Vertu Russia submitted an application on the bankruptcy to the
Arbitrage in October 2017, Telecompaper relates.

Russia was one of the key markets of Vertu, Telecompaper notes.


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


PYMES BANESTO 2: Fitch Affirms Rating on Class C Notes at 'CCsf'
----------------------------------------------------------------
Fitch Ratings has affirmed FTA, Pymes Banesto 2's notes, as
follows:

Class B notes (ISIN ES0372260028): affirmed at 'Asf'; Outlook
Stable

Class C notes (ISIN ES0372260036): affirmed at 'CCsf'; Recovery
Estimate revised to 50% from 0%

FTA PYMES Banesto 2 is a cash flow SME CLO originated by Banco
Espanol de Credito S.A., now part of Banco Santander S.A. (A-
/Stable/F2). At closing, the issuer used the note proceeds to
purchase a EUR1 billion portfolio of secured and unsecured loans
granted to Spanish small and medium enterprises and self-employed
individuals. The transaction is managed by Santander de
Titulizacion, S.G.F.T., S.A.

KEY RATING DRIVERS

Stable Concentration Levels

The portfolio has amortised over the last 12 months, with the
pool factor - a measure of outstanding performing loans balance
relative to the initial balance - falling to 3.6% from 5.4%.
However, the pool remains granular, with the top five and 10
obligors representing 4.2% and 7.4% of the performing portfolio
respectively.

Liquidity Risk

The ratings of the notes are capped at 'Asf' as the reserve fund
is completely depleted and the transaction has no other liquidity
sources to mitigate any disruption of the collection process and
maintain timely payments to the noteholders.

Positive Performance Expectations

Fitch expects performance of Spanish SME portfolios to improve,
as reflected by the reduction of the Spanish country benchmark to
3.5% from 4% in the latest update of the agency's SME Balance
Sheet Securitisation Rating Criteria published on February 23,
2018. As a result and combined with the falling delinquency
levels of the portfolio over the last three years, Fitch reduced
its one-year probability of default to 4% from 5.4%.

Class C Notes Under-collateralised

The principal deficiency ledger was reduced by EUR2.8 million in
the last 12 months to March 2018 and currently stands at EUR11
million. Therefore, the class C notes remain under-collateralised
and its likely default is reflected by its 'CCsf' rating. The
revision of the Recovery Estimate reflects the reduction of the
principal deficiency ledger and the improved portfolio
performance expectations.

Low Observed Recoveries

Over the last 12 months, the transaction has received EUR4
million of recoveries, while the weighted average recovery rate
remains below 30%, in line with Fitch's unsecured recovery
assumptions. Fitch has analysed the underlying portfolio on an
unsecured basis due to the low observed recovery rate despite the
collateralisation of the loans.

RATING SENSITIVITIES

Large credit enhancement available to the class B notes makes the
rating fairly resilient to adverse changes in asset assumptions,
with no rating impact in all tested scenarios.


USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

Overall, Fitch's assessment of the information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.


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


BURSA: Fitch Affirms Long-Term IDRs at BB, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Metropolitan Municipality of
Bursa's Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDR) at 'BB' and National Long-Term rating at 'AA-
(tur)'. The Outlooks are Stable.

The affirmation reflects Bursa's continued sound operating
performance, with margins in the high 30s (2017: 35.3%)
supporting its debt service capacity, in line with Fitch's rating
case scenario and an expected increase in debt due to large capex
realisation.

The Stable Outlook reflects Fitch's expectations of continued
robust fiscal performance with an operating balance covering over
30% of operating revenue in 2018-2020 and debt payback capacity
decreasing below five years in 2018-2020, after the city
recommitting to cost control.

KEY RATING DRIVERS

Fiscal Performance (Neutral/Stable): Fitch projects Bursa will
continue to post sound operating margins of above 30% in 2018-
2020, and converging to its five-year average of 40% due to its
strong local economic base. This reflects a broad tax base and
management's willingness to recommit to spending control, after
two consecutive years of a looser spending policy ahead of the
elections.

At end-2017 opex grew by 15.6% yoy, remaining below operating
revenue growth (18.6% yoy) for the first time since 2014. This
was mainly due to cost control on staff costs, which were fully
on budget, while goods and services purchases exceeded the
budgeted amount by no more than 10% yoy in comparison with 2015-
2016. Bursa posted a large deficit before financing of 20.3% of
total revenue, which was slightly higher than Fitch's
expectations of 17.6%. This was due to large capex realisations
of 115.9% of the budgeted amount against Fitch's expectation of
102%.

The city posted an overall deficit of 6.7% of total revenue or
TRY128.4 million, which is solely related to capex and has been
paid in 2018 due to the contract agreement with commercial
takers, and is recognised in the balance as payables. Similar to
other metropolitan municipalities, capex is frontloaded prior to
elections in 2019, so higher capex across the municipal sector is
evident, with some part of invoices arranged to be paid with
commercial takers in the following year.

Fitch has revised its expectation for capex realisation to
decline to 70% in 2018 of the budgeted amount or 35% of total
expenditure from about 40% in 2017, after the administration's
recommitted to fiscal discipline. Fitch expects the capex/total
expenditure ratio to reach 30% in 2020.

Debt & Liquidity (Weakness/Stable): Bursa has the highest
indebtedness of its Fitch-rated national peers, with a debt to
current revenue ratio of 152.8% at end-FY17. This is due to a
track record of significantly higher capex than budgeted, which
was almost in line with Fitch's expectations of 146.1% for FY17.
Fitch expects debt to increase, albeit more slowly, to about
TRY2.50 billion at end-2019 from TRY2.28 billion at end-2017, due
to capital spending and the expected depreciation of the Turkish
lira against the euro. Fitch expects debt to gradually decrease
after the elections. A healthy operating balance will support
debt to current balance gradually decreasing below five years
from the peak of six and half years in 2018-2020.

Bursa has the lowest share of unhedged external debt among its
national peers, as the city stopped borrowing in foreign currency
in 2013. Consequently, the share of its external debt further
declined to 38.9% at end 2017 from 42.3% at end 2016. Fitch
considers immediate refinancing and repayment risks are mitigated
by the lengthy weighted average maturity of Bursa's FX debt (10.2
years) and predictable and regular monthly cash flows with
Treasury repayment guarantees.

Bursa's contingent liabilities are largely limited to the debt of
its waste water and water distribution management affiliate
(BUSKI), which is not a company and is established according to a
separate law, similar to affiliates in other metropolitan
municipalities. BUSKI is self-funding and has increased its capex
significantly due to the enlargement of the city's boundaries
after Law 6360 in 2014. At end-2017, BUSKI posted a deficit
before financing of 61% of total revenue (2016: 49%). In line
with our expectation, capex-induced total debt reached TRY1,266.4
million at end-2017 (end-2016: TRY777.5 million). However, the
healthy operating balance helped the debt/current balance ratio
remain strong at 2.7 years. BUSKI budgeted to realise its capex
over the forecast period mainly from its own operating surpluses
and to a lesser extent by borrowing.

Economy (Neutral/Stable): Bursa is one of the most important
industrial hubs in Turkey with wealth levels higher than the
national average. Bursa accounts for about 4% of Turkey's GDP on
average. Bursa's industrial sector contributes an average 40% of
its local GDP, well above the national average of 26% in 2004-
2014. The share of employment in the industrial sector was the
highest among Turkish regions at end-2017. Bursa is also Turkey's
fourth-largest city by population (2,901,396 at end-2017 or 3.6%
of the national population).

Management (Neutral/Stable): Fitch has changed the trend for
Management to Stable from Negative. This reflects spending
discipline on opex, mainly staff costs, and on capex that was not
significantly higher than budgeted in comparison with the last
two years. This is backed by the administration's recommitment to
fiscal discipline.

Bursa's increased indebtedness has significantly diminished its
financial flexibility, as direct debt servicing absorbs more than
50% of its operating balance (2017: 85.9%). However, Fitch
forecasts this will reach around 50% by end-2020.

Institutional Framework (Weakness/Stable): Bursa's credit profile
is constrained by a weak Turkish institutional framework,
reflecting a short track record of stable relationship between
the central government and the local governments with regard to
allocation of revenue and responsibilities, weak financial
equalisation system and the evolving nature of its debt
management in comparison with international peers.

RATING SENSITIVITIES

A sustained reduction of overall risk closer to 100% from its
current 150% and continued sound fiscal performance, with a
current margin sufficient to cover at least 60% capex together
with operating expenditure in line with the budget could trigger
positive rating action.

Negative rating action would be triggered by Bursa's inability to
adjust capex in relation to its current balance and to apply cost
control, weakening the sustainability of the budgetary
performance, and a debt to current revenue ratio above 170%.

ASSUMPTIONS

Fitch based its forecasts on the recommitment of management to
fiscal discipline, which it will monitor closely. Any further
deviation from fiscal discipline, which would to significantly
weaken debt sustainability, would be credit negative.


IZMIR: Fitch Affirms BB+ Long-Term FC IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Metropolitan Municipality of
Izmir's Long-Term Foreign-Currency Issuer Default Rating (IDR) at
'BB+' and Long-Term Local-Currency IDR at 'BBB-'. The Outlooks
are Stable. The National Rating has been affirmed at 'AAA(tur)'
with Stable Outlook.

The affirmation reflects Izmir's sustainable strong operating
performance, with operating margins above 50% in 2017, and the
city's prudent management, as well as its resilient local economy
supporting the local tax base.

The Stable Outlook reflects Fitch's expectations of a continued
sound fiscal performance with operating margins well above 50% in
2018-2020 and the debt payback remaining strong at below two
years.

KEY RATING DRIVERS

Fiscal Performance (Strength/Stable): Fitch expects Izmir will
post strong operating margins in the high 50s in 2018-2020 (2017:
56.2%). This will reflect an expected increase in tax revenue
income by 17% yoy due to the buoyant local economic performance
and control of opex.

In line with Fitch's expectations, the city posted a deficit
before financing of TRY858.6 million or 22.8% of its total
revenue in 2017. This was due to increased infrastructure
investments ahead of the local elections in March 2019 and write-
offs at its loss-making companies. However, this is declining and
will be completed off by 2019. Of the TRY858.6 million, TRY506.5
million was related to capex and TRY162.1 million to write-offs.
Both are non- cash items. TRY506.5 million was from invoiced
metro and tram line-related purchases (85 metro and tramline
puller machines) in 2017. These invoices needed to be recognised
in 2017, but as part of the contract 40% of the payment will be
made in 2018. This corresponded to TRY506.54 million and is
recognised in the balance sheet as payables.

Izmir is exposed to contingent liabilities. Its municipal
companies have been increasingly loss making since 2016, when
public services were increased. Nevertheless, write-offs further
declined to TRY162.1 million in 2017 from TRY375.4 million in
2016. According to 2012 regulation, the companies' losses should
be reduced by equity on the city's balance sheet, but shown as an
expense on its budget (a non-cash item). However, the city also
needed to increase its equity in the companies with capital
injections of TRY386.6 million in 2017 (cash item), to keep the
required equity stake. This leads to double counting in its
budget. After deducting for non-cash items, Izmir posted a
deficit before financing of TRY190 million, which is partly
covered by funding and cash.

Fitch expects the city to post a further large deficit ahead of
the elections of about 13% of its total revenue in 2018. Fitch
expects it to then decline to close to a balanced budget in 2019-
2020.

Debt & Liquidity (Neutral/Stable): Fitch expects debt funding to
increase moderately mainly due to capital spending needs and
expected depreciation of the Turkish lira against the euro to
about TRY3.0 billion at end-2020 from TRY2.2 billion at end-2017.
Fitch expects the city to realise 90% of its budgeted capex on
average and for capex to account for at least 50% of its total
expenditure. This would lead debt to current revenue to hover
close to 60% in 2018-2020., The healthy operating balance will
allow debt to remain sustainable, with debt to current balance
remaining strong below two years, which is commensurate with the
'BBB' category

Izmir faces significant foreign currency risk, as its foreign
currency debt is unhedged. 15.4% of the 28.5% increase in direct
debt in 2017 was due to depreciation of the Turkish lira, as 84%
of debt was euro-denominated at end-2017. The lengthy maturity
(weighted average maturity of 9.3 years), the amortising nature
of its total debt and healthy liquidity levels are mitigating
factors for foreign currency risk. In a stress scenario of annual
depreciation of the Turkish lira to euro by 30% in 2018-2020 and
an annual drop in its tax revenue by 4% yoy, debt ratios will
deteriorate. Despite these adverse effects, the operating balance
will comfortably cover the increase in debt and therefore debt
ratios will remain commensurate with the 'BB' rating category
median.

Economy (Neutral/Stable): Izmir is Turkey's third-largest
municipality in terms of population, which increased by 1.3% to
4,279,677 inhabitants or 5.3% of Turkey's population in 2017. The
city's wealth indicators are above the national average and its
local GDP of TRY127.4 billion in 2014 (according to the latest
available statistics) accounts for 6.2% of the national GDP,
making Izmir the nation's third-largest GDP contributor. The city
is an important transport and industrial hub and accounts for 6%
of the country's exports. Its dynamic socio-economic profile and
high standard of living exposes it to migrant flows, resulting in
the unemployment rate (2017: 14%) being persistently above the
national average (11.1%).

Management (Strength/Stable): Fitch has changed the status of
Management to Strength from Neutral on the back of a long track
record of strong budgetary performance and financial planning,
leading to sustainable debt ratios while undertaking large
infrastructure projects. Like other large metropolitan
municipalities, Izmir borrows foreign currency, and has unhedged
FX liabilities, which exposes the city to losses resulting from
lira volatility, as Turkey has a floating exchange rate regime.

Fitch understands that lack of regulative stimulus in setting
up/providing swap counterparties prevents local authorities from
using hedging instruments. Nevertheless, the city's good
liquidity planning compared with its peers helps generate solid
liquidity levels, covering on average at least 1x of its annual
debt servicing costs, and therefore any immediate liquidity
squeezes. Izmir also has a solid track record of fulfilling its
strong investment profile with capex to total expenditure
consistently above 50%, and current balance coverage of the capex
of at least 65% for the last five years.

Institutional Framework (Weakness/Stable): Izmir's credit profile
is constrained by a weak Turkish institutional framework,
reflecting a short track record of a stable relationship between
the central government and the local governments with regard to
allocation of revenue and responsibilities, weak financial
equalisation system and an evolving nature of its debt management
in comparison with their international peers.

RATING SENSITIVITIES

Izmir's ratings are constrained by the sovereign. Positive rating
action on the sovereign would result in corresponding rating
action on Izmir, provided its credit metrics remain strong. A
reduction of foreign currency exposure below to 35% of its
outstanding debt, improving financial strength with budgetary
surplus before financing and continuation of the prudent
management policies would support Izmir's intrinsic credit
profile.

As Izmir's IDRs are constrained by the sovereign, any negative
rating action on Turkey would be mirrored on Izmir's IDRs. A
sharp increase in Izmir's direct debt to current balance above
four years, driven by capex and local currency devaluation could
also lead to a downgrade.

Fitch has made an adjustment to the official accounts in order to
make the LRG comparable internationally for analysis purposes.
For Izmir, this adjustment includes:

  -Included in the 2017 year end cash the amount of the 2017
overall deficit of TRY 40, 4 million, as the closure of the
fiscal year was prolonged to the beginning of the next year


OJER TELEKOMUNIKASYON: Bank Debt Trades at 6% Off
-------------------------------------------------
Participations in a syndicated loan under which Ojer
Telekomunikasyon AS is a borrower traded in the secondary market
at 94.10 cents-on-the-dollar during the week ended Friday, May 4,
2018, according to data compiled by LSTA/Thomson Reuters MTM
Pricing. This represents an increase of 1.98 percentage points
from the previous week.  Ojer Telekomunikasyon pays 300 basis
points above LIBOR to borrow under the $800 million facility.
The bank loan matures on April 12, 2024. Moody's rates the loan
'Ba2' and Standard & Poor's gave a 'BB' rating to the loan.  The
loan is one of the biggest gainers and losers among 247 widely
quoted syndicated loans with five or more bids in secondary
trading for the week ended Friday, May 4.

Ojer Telekomunikasyon A.S. provides telecommunication services in
Turkey. The company offers fixed-line and mobile communications,
and Internet access services.


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


CAMBRIDGE ANALYTICA: Voluntary Chapter 7 Case Summary
-----------------------------------------------------
Debtor: Cambridge Analytica LLC
        597 5th Avenue
        New York, NY

Business Description: Cambridge Analytica LLC, is a subsidiary of
                      London-based data analytics firm Cambridge
                      Analytica (UK) Limited.  Cambridge
Analytica
                      offers data mining, analysis, and
behavioral
                      communication solutions.  Cambridge
                      Analytica combines behavioral psychology
                      with a statistically robust research
                      methodology to provide the fullest picture
                      of consumer behavior, competition, and
                      trends.  Its clients include governments,
                      non-governmental organizations (NGOs),
                      commercial entities, and political parties.
                      The company was founded in 2013 and is
                      headquartered in New York, New York.  Visit
                      https://cambridgeanalytica.org for more
                      information.

Chapter 7 Petition Date: May 17, 2018

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Case No.: 18-11500

Judge: Hon. Sean H. Lane

Debtor's Counsel: Adam Craig Harris, Esq.
                  SCHULTE ROTH & ZABEL, LLP
                  919 Third Avenue
                  New York, NY 10022
                  Tel: (212) 756-2000
                  Fax: (212) 593-5955
                  Email: adam.harris@srz.com

Estimated Assets: $100,000 to $500,000

Estimated Liabilities: $1 million to $10 million

The petition was signed by Julian Wheatland, authorized person.

A full-text copy of the Chapter 7 petition is available for free
at: http://bankrupt.com/misc/nysb18-11500.pdf


CARILLION PLC: Jobs Lost Following Collapse Total More Than 2,303
-----------------------------------------------------------------
Alan Jones at Press Association reports that more jobs have been
lost following the collapse of engineering giant Carillion,
taking the total to over 2,300.

The Official Receiver announced that redundancies now account for
12% of the workforce before the company went into liquidation,
Press Association notes.

Secure ongoing employment has been found for 64% of Carillion's
former workforce, with 11,637 jobs saved, Press Association
discloses.

According to Press Association, a total of 2,303 jobs have been
made redundant, a further 1,115 employees have left the business
through finding new work or retiring and just over 3,000 have
been retained until decisions are taken on the contracts they are
working on.

Discussions continue with potential purchasers for Carillion's
remaining contracts, Press Association states.


DURHAM MORTGAGES A: Moody's Assigns (P)Ca Rating to Class X Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to the
following classes of notes to be issued by Durham Mortgages A
PLC:

GBP [ ]M Class A Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Aaa (sf)

GBP [ ]M Class B Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Aa1 (sf)

GBP [ ]M Class C Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)A1 (sf)

GBP [ ]M Class D Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Baa2 (sf)

GBP [ ]M Class E Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Ba3 (sf)

GBP [ ]M Class F Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Caa1 (sf)

GBP [ ]M Class X Mortgage Backed Floating Rate Notes due March
2053, Assigned (P)Ca (sf)

The subject transaction is a static cash securitisation of non-
conforming residential mortgage loans extended to borrowers
located in the UK. The portfolio consists of first lien owner
occupied home loans extended to [21,893] borrowers, with the
current pool balance of approximately GBP [2,755] million. The
assets were originated by Bradford & Bingley plc and Mortgage
Express. The portfolio will be serviced by Topaz Finance Limited
(NR), part of the Computershare group.

RATINGS RATIONALE

The ratings of the notes take into account, among other factors:
(1) the historical performance of the assets; (2) the credit
quality of the underlying mortgage loan pool, (3) legal
considerations (4) the initial credit enhancement provided to the
senior notes by the junior notes and the reserve fund and (5) the
low level of excess spread.

Expected Loss and MILAN CE Analysis

Moody's determined the MILAN credit enhancement (MILAN CE) and
the portfolio's expected loss (EL) based on the pool's credit
quality. The MILAN CE reflects the loss Moody's expects the
portfolio to suffer in the event of a severe recession scenario.
The expected portfolio loss (EL) of [2.3]% and the MILAN CE of
[15.0]% serve as input parameters for Moody's cash flow and
tranching model, which is based on a probabilistic lognormal
distribution.

MILAN CE for this pool is [15.0]%, which is lower than the UK
non-conforming sector average of ca. 24.23%, owing to: (1) the
high weighted-average seasoning of [11.37] years; (2) the
weighted average original loan-to-value (LTV) of [87.65]%, which
is higher than the LTV observed in other comparable UK non-
conforming transactions; (3) the historical performance of the
pool (high levels of arrears were observed in stressed
scenarios); (4) the proportion of interest-only loans ([81.7]%);
and (5) benchmarking with other UK non-conforming RMBS
transactions.

The expected loss is [2.3]%, which is lower than the UK non-
conforming sector average of ca. 4.7%, owing to: (1) the
performance of the originator's precedent transactions; (2)
benchmarking with comparable transactions in the UK non-
conforming RMBS market; and (3) the current economic conditions
in the UK and the potential impact of future interest rate rises
on the performance of the mortgage loans.

Operational Risk Analysis

Topaz Finance Limited ("Topaz") will act as a Long Term Servicer
and will start servicing the portfolio 9 months after closing.
Bradford & Bingley plc will act as the Interim Servicer and will
service the portfolio for the first 9 months after closing.
Moreover, Bradford & Bingley plc will delegate their servicing to
Computershare Mortgage Services Limited ("Computershare").
Computershare has been servicing the portfolio prior to closing.
A back-up servicer facilitator (CSC Capital Markets UK Limited
(not rated)) will be appointed at closing. The backup servicer
facilitator is required to find a suitable replacement within 30
days if, amongst other things, the servicer is insolvent or
defaults on its obligation under the servicing agreement.
Citibank N.A., London Branch (A1 Senior Unsecured/(P)P-1/A1(cr))
will act as cash manager. The collection account is held at
National Westminster Bank plc (A1/P-1 Bank Deposits/Aa3(cr))
("NWB"). There is a daily sweep of the funds held in the
collection account into the transaction account. In the event NWB
rating falls below Baa3 the collection account will be
transferred to an entity rated at least Baa3. The issuer account
is held at Citibank N.A., London Branch (A1 Senior
Unsecured/(P)P-1/A1(cr)) with a transfer requirement if the
rating of the account bank falls below A3.

Transaction structure

There is no General Reserve Fund in place at closing. The reserve
fund will be funded by the Available Revenues up to a target
amount of [2.5%] of Classes A and B initial amount less the
Liquidity Reserve Fund target, according to the priority of
payments. The General Reserve Fund can be used to cover
shortfalls in interest payments for Classes A to F as well as to
cure PDL. There will be a fully funded Liquidity Reserve Fund in
place at closing equal to [2.5]% of the Class A and B Notes
outstanding balance. Following the first IPD the Liquidity
Reserve Fund will be available to cover senior fees and interest
shortfalls on Class A and B Notes after using revenue and
principal proceeds. At closing, the Liquidity Reserve Fund
provides approx. 5 months of liquidity to the Class A assuming
Libor of 5.7%. Principal can be used as an additional source of
liquidity to meet shortfalls on senior fees and interest on the
most senior outstanding class, principal can also be used to
cover interest payment for more junior classes subject to a PDL
condition.

Interest Rate Risk Analysis

The majority of the loans in the pool are BBR linked (ca.
[99.4]%) with the remaining proportion being linked to an SVR.
There is no swap in the transaction to mitigate the risk of
mismatch between the index applicable to the loans in the pool
and the index applicable to the notes. Moody's has taken the
absence of swap into account in the stressed margin vector used
in the cash flow modelling.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.

For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Downward pressure on the ratings could also stem from (1)
deterioration in the notes' available credit enhancement; (2)
counterparty risk, based on a weakening of a counterparty's
credit profile, or (3) any unforeseen legal or regulatory
changes.

Conversely, the junior notes' ratings could be upgraded: (1) if
economic conditions are significantly better than forecasted; or
(2) upon deleveraging of the capital structure.

STRESS SCENARIOS:

Parameter Sensitivities

At the time the ratings were assigned, the model output indicated
that Class A Notes would have achieved Aaa (sf), even if MILAN CE
was increased to 22.4% from 16.0% and the portfolio expected loss
was increased to 7.8% from 2.6% and all other factors remained
the same.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

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

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

The provisional rating addresses the expected loss posed to
investors by the legal final maturity of the notes. In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal with respect to the Classes A and B
Notes by the legal final maturity. In Moody's opinion, the
structure allows for ultimate payment of interest and principal
with respect to the Class C, Class D, Class E, Class F and Class
X Notes by the legal final maturity. Moody's ratings only address
the credit risk associated with the transaction. Other non-credit
risks have not been addressed, but may have a significant effect
on yield to investors.

Moody's issues provisional ratings in advance of the final sale
of securities, but these ratings only represent Moody's
preliminary credit opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavour
to assign definitive ratings to the Notes. A definitive rating
may differ from a provisional rating. Moody's will monitor this
transaction on an ongoing basis.


DURHAM MORTGAGES B: Moody's Assigns (P)Ca Rating to Class X Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to the
following classes of notes to be issued by Durham Mortgages B PLC
("Durham"):

GBP [ ]M Class A Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)Aaa (sf)

GBP [ ]M Class B Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)Aa1 (sf)

GBP [ ]M Class C Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)A2 (sf)

GBP [ ]M Class D Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)Baa2 (sf)

GBP [ ]M Class E Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)Ba3 (sf)

GBP [ ]M Class F Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)B3 (sf)

GBP [ ]M Class X Mortgage Backed Floating Rate Notes due March
2054, Assigned (P)Ca (sf)

The subject transaction is a static cash securitisation of
residential buy-to-let (BTL) mortgage loans extended to borrowers
located in the UK. The portfolio consists of first lien BTL home
loans extended to [14,801] borrowers, with the current pool
balance of approximately GBP [2,363] million. A significant
portion of the assets comes from pools originated by GMAC-RFC
Limited and Mortgage Express. The portfolio will be serviced by
Topaz Finance Limited (NR), part of the Computershare group.

RATINGS RATIONALE

The ratings of the notes take into account, among other factors:
(1) the historical performance of the assets; (2) the credit
quality of the underlying mortgage loan pool, (3) legal
considerations (4) the initial credit enhancement provided to the
senior notes by the junior notes and the reserve fund and (5) the
low level of excess spread.

Expected Loss and MILAN CE Analysis

Moody's determined the MILAN credit enhancement (MILAN CE) and
the portfolio's expected loss (EL) based on the pool's credit
quality. The MILAN CE reflects the loss Moody's expects the
portfolio to suffer in the event of a severe recession scenario.
The expected portfolio loss (EL) of [2.6]% and the MILAN CE of
[16.0]% serve as input parameters for Moody's cash flow and
tranching model, which is based on a probabilistic lognormal
distribution.

MILAN CE for this pool is [16.0]%, which is higher than the UK
buy-to-let sector average of ca. 14.7%, owing to: (1) the
weighted average original loan-to-value (LTV) of [78.81]%, which
is higher than the LTV observed in other comparable UK BTL
transactions; (2) the historical performance of the pool (high
levels of arrears were observed in stressed scenarios); (3) the
weighted-average seasoning of [11.49] years; (4) the proportion
of interest-only loans ([96.2]%); and (5) benchmarking with other
UK BTL RMBS transactions.

The expected loss is [2.6]%, which is higher than the UK buy-to-
let sector average of ca. 1.7%, owing to: (1) the performance of
the originator's precedent transactions; (2) benchmarking with
comparable transactions in the UK BTL RMBS market; and (3) the
current economic conditions in the UK and the potential impact of
future interest rate rises on the performance of the mortgage
loans.

Operational Risk Analysis

Topaz Finance Limited ("Topaz") will act as a Long Term Servicer
and will start servicing the portfolio 9 months after closing.
Bradford & Bingley plc will act as the Interim Servicer and will
service the portfolio for the first 9 months after closing.
Moreover, Bradford & Bingley plc will delegate their servicing to
Computershare Mortgage Services Limited ("Computershare").
Computershare has been servicing the portfolio prior to closing.
A back-up servicer facilitator (CSC Capital Markets UK Limited
(not rated)) will be appointed at closing. The backup servicer
facilitator is required to find a suitable replacement within 30
days if, amongst other things, the servicer is insolvent or
defaults on its obligation under the servicing agreement.
Citibank N.A., London Branch (A1 Senior Unsecured/(P)P-1/A1(cr))
will act as cash manager. The collection account is held at
National Westminster Bank plc (A1/P-1 Bank Deposits/Aa3(cr))
("NWB"). There is a daily sweep of the funds held in the
collection account into the transaction account. In the event NWB
rating falls below Baa3 the collection account will be
transferred to an entity rated at least Baa3. The issuer account
is held at Citibank N.A., London Branch (A1 Senior
Unsecured/(P)P-1/A1(cr)) with a transfer requirement if the
rating of the account bank falls below A3.

Transaction structure

There is no General Reserve Fund in place at closing. The reserve
fund will be funded by the Available Revenues up to a target
amount of [2.5%] of Classes A and B initial amount less the
Liquidity Reserve Fund target, according to the priority of
payments. The General Reserve Fund can be used to cover
shortfalls in interest payments for Classes A to F as well as to
cure PDL. There will be a fully funded Liquidity Reserve Fund in
place at closing equal to [2.5]% of the Class A and B Notes
outstanding balance. Following the first IPD the Liquidity
Reserve Fund will be available to cover senior fees and interest
shortfalls on Class A and B Notes after using revenue and
principal proceeds. At closing, the Liquidity Reserve Fund
provides approx. 4 months of liquidity to the Class A assuming
Libor of 5.7%. Principal can be used as an additional source of
liquidity to meet shortfall on senior fees and interest on the
most senior outstanding class, principal can also be used to
cover interest payment for more junior classes subject to a PDL
condition.

Interest Rate Risk Analysis

The majority of the loans in the pool are BBR linked (ca.
[67.7]%) with the remaining small proportion being linked to SVR.
There is no swap in the transaction to mitigate the risk of
mismatch between the index applicable to the loans in the pool
and the index applicable to the notes. Moody's has taken the
absence of swap into account in the stressed margin vector used
in the cash flow modelling.

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

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from its central scenario forecast or idiosyncratic
performance factors would lead to rating actions.

For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Downward pressure on the ratings could also stem from (1)
deterioration in the notes' available credit enhancement; (2)
counterparty risk, based on a weakening of a counterparty's
credit profile, or (3) any unforeseen legal or regulatory
changes.

Conversely, the junior notes' ratings could be upgraded: (1) if
economic conditions are significantly better than forecasted; or
(2) upon deleveraging of the capital structure.

STRESS SCENARIOS:

Parameter Sensitivities

At the time the ratings were assigned, the model output indicated
that Class A Notes would have achieved Aaa (sf), even if MILAN CE
was increased to 22.4% from 16.0% and the portfolio expected loss
was increased to 7.8% from 2.6% and all other factors remained
the same.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

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

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

The provisional rating addresses the expected loss posed to
investors by the legal final maturity of the notes. In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal with respect to the Classes A and B
Notes by the legal final maturity. In Moody's opinion, the
structure allows for ultimate payment of interest and principal
with respect to the Class C, Class D, Class E, Class F and Class
X Notes by the legal final maturity. Moody's ratings only address
the credit risk associated with the transaction. Other non-credit
risks have not been addressed, but may have a significant effect
on yield to investors.

Moody's issues provisional ratings in advance of the final sale
of securities, but these ratings only represent Moody's
preliminary credit opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavour
to assign definitive ratings to the Notes. A definitive rating
may differ from a provisional rating. Moody's will monitor this
transaction on an ongoing basis.


LONMIN PLC: Bank Debt Trades at 4% Off
--------------------------------------
Participations in a syndicated loan under which Lonmin Plc is a
borrower traded in the secondary market at 95.80 cents-on-the-
dollar during the week ended Friday, May 4, 2018, according to
data compiled by LSTA/Thomson Reuters MTM Pricing.  This
represents an increase of 2.91 percentage points from the
previous week. Lonmin Plc pays 450 basis points above LIBOR to
borrow under the $1.933 billion facility.  The bank loan matures
on January 27, 2023. Moody's rates the loan 'B2' and Standard &
Poor's gave a 'B+' rating to the loan.  The loan is one
of the biggest gainers and losers among 247 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended Friday, May 4.

Lonmin plc, formerly the mining division of Lonrho plc, is a
British producer of platinum group metals operating in the
Bushveld Complex of South Africa.  It is listed on the London
Stock Exchange.


NIGHTHAWK ENERGY: English High Court Recognizes Ch.11 Proceedings
-----------------------------------------------------------------
Nighthawk Energy plc ("Nighthawk" or "the Company"), the US
focused oil development and production company, on May 14
disclosed that it has obtained orders (the "Orders") from the
English High Court recognizing the Chapter 11 proceedings
commenced by the Company and its U.S. subsidiary Nighthawk
Royalties LLC ("Nighthawk Royalties") on Monday April 30, 2018,
in the United States Bankruptcy Court for the District of
Delaware as a foreign main proceeding under Article 15 of
Schedule 1 of the Cross-Border Insolvency Regulations 2006 (" the
CBIR").

The effect of the Orders is that the English High Court ("Court")
has imposed a stay on any action or proceeding against the
Company and/or Nighthawk Royalties and their property except by
leave of the Court and subject to such terms as the Court may
impose, pursuant to Article 20 and Article 21 of Schedule 1 of
the CBIR, as well as pursuant to the Court's common law powers of
assistance.

The Company's ordinary shares remain suspended from trading on
AIM pending clarification of its financial position.

Further announcements will be made in due course.

                  About Nighthawk Energy plc

Nighthawk Energy plc (AIM: HAWK and OTCQX: NHEGY) is a US focused
oil development and production company.

On May 1, 2018, the Company filed for protection under Chapter 11
of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware.  The Company's
first-tier U.S. subsidiary, Nighthawk Royalties LLC, also filed
for Chapter 11 protection.

With reference to the Company's April 20 2018 announcement, on
April 19, 2018, the Company received a notice of default from the
Commonwealth Bank of Australia ("CBA") relating to its April 18,
2018 deadline for a definitive agreement of sale or restructure
as set forth in the 9th Amendment.  Consequently, the Company is
subject to possible remedial actions by CBA that may include
foreclosure or other recourse against assets of the Company and
its U.S. subsidiaries.



                            *********

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.

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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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