---

        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, June 12, 2018, Vol. 19, No. 115


                            Headlines


B U L G A R I A

BULGARIAN ENERGY: Moody's Affirms Ba1 CFR, Ba2 Sr. Bond Rating


G E R M A N Y

TECHEM GMBH: Fitch Cuts Long-Term Issuer Default Rating to B+


I R E L A N D

OZLME IV: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'


K A Z A K H S T A N

RG BRANDS: Moody's Affirms B2 CFR, Outlook Stable


L U X E M B O U R G

EUROPEAN CROPS: Moody's Assigns 'B2' CFR, Sr. Secured TLB Rating
QGOG CONSTELLATION: Makes $3MM Interest Payment on 6.25% Notes


N E T H E R L A N D S

JUBILEE CLO 2018-XX: Moody's Assigns (P)B2 Rating to Cl. F Notes


P O L A N D

HYPERION SA: Warsaw Court Discontinues Bankruptcy Proceedings


P O R T U G A L

CAIXA GERAL: Moody's Assigns Ba1 LT Counterparty Risk Rating
LISGRAFICA IMPRESSAO: Creditor Agreement Fails to Get Court Nod


R U S S I A

ALTAI REGION: Fitch Affirms LT IDRs at BB+, Outlook Stable
BANK OTKRITIE: Moody's Hikes Sr. Debt & Deposit Ratings to B1
CHUVASH REPUBLIC: Fitch Affirms LT IDRs at BB+, Outlook Stable
KAZAN CITY: Fitch Withdraws 'BB-' IDRs for Commercial Reasons
KRASNODAR REGION: Fitch Affirms Then Withdraws BB LT IDRs

ROSMED JSIC: Bank of Russia Provides Update on Administration


S P A I N

IBERCAJA BANCO: Moody's Assigns Ba2 LT Counterparty Risk Rating


T U R K E Y

ISTANBUL MUNICIPALTY: Fitch Affirms LT IDR at BB+, Outlook Stable


U N I T E D   K I N G D O M

CARILLION PLC: Talks on Sale of Remaining Contracts Ongoing
CHARTER MORTGAGE 2018-1: Moody's Rates Class X Notes 'B1'
FABB SOFAS: Enters Administration After Sale Attempts Fail
POUNDWORLD: Enters Administration, 5,100 Jobs at Risk

* UK: ABI Rejects Government's Airline Insolvency Proposal


                            *********



===============
B U L G A R I A
===============


BULGARIAN ENERGY: Moody's Affirms Ba1 CFR, Ba2 Sr. Bond Rating
--------------------------------------------------------------
Moody's Investors Service affirmed the Ba1 corporate family
rating of Bulgarian Energy Holding EAD (BEH). Concurrently,
Moody's has also affirmed BEH's probability of default rating of
Ba1-PD and the Ba2 rating assigned to its EUR550 million 4.875%
senior unsecured bonds due in 2021 (the Bonds) with a loss-given
default assessment of LGD4. The rating outlook is stable.

RATINGS RATIONALE

The rating action follows the amendments to the Bulgarian Energy
Act published in the state gazette on May 8, 2018 and their
subsequent incorporation in the annual regulated electricity
price proposal as published on May 25, 2018. Following the
amendments, Nationalna Elektricheska Kompania (NEK) a wholly-
owned subsidiary of BEH, will no longer act as a mandatory off-
taker for some of the subsidised electricity generation in
Bulgaria, namely renewables and co-generation, and will also no
longer supply electricity for network losses at regulated prices.
As a result, NEK's public trader activities will decrease by
about a quarter, approximately 5 Terawatt hours at an estimated
value of around BGN 1 billion, therefore providing a permanent
reduction in the company's exposure to the energy system and
related financial pressure from potential system deficits if such
were to occur again in the future.

Furthermore, Moody's rating action takes into account (1) recent
positive developments, including BEH's stabilised financial
profile, evidenced by a Funds from operations (FFO) /debt ratio
of around 20% in 2016 and 2017, which is expected to continue,
underpinned by continuous tariff deficit reduction measures; (2)
the group's dominant position within the electricity generation
industry in Bulgaria, which is a net exporter of power to the
wider Balkan region; and (3) its ownership of strategic national
infrastructure such as nuclear power generation plant and main
electricity and gas transmission assets.

However, the rating remains constrained by (1) the evolving
wholesale power market in Bulgaria, including uncertainty with
respect to full market liberalisation and increasing
environmental challenges for BEH's thermal generation and coal
mining assets; (2) the relatively untransparent nature of the
regulation of the gas and electricity transmission assets and the
gas transit contracts; (3) the volatile earnings profile of the
group which limits cash flow visibility; and (4) the fact that
BEH's liquidity is fully reliant on internal cash flow generation
only, although Moody's notes the much improved liquidity position
of the company as at end 2017 supported by BGN1.26 billion of
cash and cash equivalents with no overdue payables.

The rating incorporates three notches of uplift to BEH's
standalone credit quality, expressed as a baseline credit
assessment of b1, to reflect the high likelihood that the
Government of Bulgaria (Baa2 stable), BEH's 100% owner, would
step in with timely support to avoid a payment default of BEH if
this became necessary.

BEH's Ba2 senior unsecured bond rating also takes into account
legal and structural subordination of unsecured holding company
creditors to claims of existing senior secured lenders/trade
payables of the operating subsidiaries. BEH's strategy is to
consolidate debt at the holding company level whose debt
liabilities accounted for close to 90% of total group debt as of
December 2017, but their share reduces when other relevant claims
are taken into account. Holding company debt service is fully
reliant on dividend receipts from the operating subsidiaries and
this is ensured through a required distribution of 50% of net
profits after certain allocations to retained earnings and
reserves.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects the fact that, while BEH's standalone
credit profile has improved in recent years, this is offset by
BEH's operating environment which remains volatile, partially due
to the transition of the Bulgarian electricity market.

The stable outlook also reflects Moody's view that a one notch
downgrade/upgrade of the BCA may not necessarily result in a
change of the final rating.

WHAT COULD CHANGE THE RATING UP/DOWN

Currently, there is limited upward rating potential in light of
the transitioning wholesale electricity market in Bulgaria and
the increasing environmental pressures on BEH's thermal
generation and coal mining assets.

Downward rating pressure may develop if (1) Moody's were to
reassess the estimate of high support from the Government of
Bulgaria; or (2) the Government's rating were to be downgraded.

Moody's would expect BEH to maintain an FFO/debt ratio at least
in the high teens in percentage terms to maintain the existing b1
BCA. Downward pressure on the BCA could occur if BEH's financial
profile were to deteriorate persistently below the above guidance
as a result of, but not limited to (1) changes in operating
environment, including due to market liberalisation; and (2)
negative regulatory changes.

The methodologies used in these ratings were Regulated Electric
and Gas Utilities published in June 2017, and Government Related
Issuers published in June 2018.


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


TECHEM GMBH: Fitch Cuts Long-Term Issuer Default Rating to B+
-------------------------------------------------------------
Fitch Ratings has downgraded Germany-based energy services
company Techem GmbH's (Techem) Long-Term Issuer Default Rating
(IDR) from 'BB-' to 'B+' and placed the IDR on Rating Watch
Negative (RWN). Fitch has also placed Techem's senior secured
debt rating of 'BB' and Recovery Rating 'RR2' on RWN.

The rating action on the IDR reflects Fitch's expectations of a
material re-leveraging following the recent sale of Techem to a
group of investors led by Partners Group, which is likely to lead
to more than a notch downgrade from the previous 'BB-' IDR. The
RWN for the senior secured debt reflects Fitch's expectations of
significantly increased amount of first lien debt, issued within
the existing restricted group.

Fitch intends to resolve the RWN after the assessment of the
post-acquisition financing structure in combination with the
asset development strategy and financial policies to be pursued
by the new equity owner as well as the new group structure and
its recovery estimates for the debt rating.

KEY RATING DRIVERS

Material Re-Leveraging Likely: Fitch expects a material increase
in gross leverage significantly in excess of 6.0x on funds from
operations (FFO) adjusted basis, which was its negative rating
sensitivity at 'BB-' IDR. This view is supported by a combination
of the enterprise value (EV)/EBITDA acquisition multiple of 12x-
13x, at which Techem is estimated to have been acquired by
Partners Group, and the provisions contained in the current
financing documentation permitting a re-leveraging to up to 7.5x
without a consent from the lenders' consortium, which provides an
accommodating framework for material re-leveraging.

Legislation Driving Long-Term Demand: Techem's business profile
is underpinned by the Energy Efficiency Directive in the EU
driving long-term demand for services around energy and water
consumption. Services around smoke detectors and water testing
also benefit from supportive national legislation in Germany.

No Immediate Regulatory Changes Expected: Based on the coalition
agreement of the current federal government, regulation of cost
of sub-metering is unlikely to be completed, or significantly
advanced, in this legislative period. Fitch therefore expects no
immediate regulatory changes.

Strong EBITDA and Operating Cash flows: Techem's continued
investments into optimising the company's business processes and
operations will have a lasting positive effect on profitability
and operating cash flows. Fitch therefore projects EBITDA margins
to remain at or above 40% in the medium term.

DERIVATION SUMMARY

Techem's IDR of 'B+' reflects a utility-like business profile
that is positioned between high non-investment and low investment
grade (BB+/BBB-) categories and a 'B' financial risk that may
worsen after re-leveraging. Proximity to utility peers such as
Viridian Group Investments Limited (B+/Stable) and Melton
Renewable Energy UK PLC (BB/Stable) is underpinned by a benign
regulatory environment and a high share of contracted revenue. A
large share of the company's earnings is derived from medium-term
contracts, with high renewal rates leading to stable recurring
cash flows. The ratings are constrained by Techem's aggressive
financial profile, which has high influence in Fitch's analytical
considerations.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Techem
include:
  - Low single-digit revenue growth allowing EBITDA margin to
remain at 40%-41%;

  - Capex at 16%-18% of sales;

  - One-off charges of EUR10 million-EUR15 million in 2018-2019
due to business optimisation and operational improvement
measures; and

  - Significant increase in gross debt following post-acquisition
re-leveraging.

RECOVERY ASSUMPTIONS

Given Techem's strong cash flow generation and asset-light
operations, Fitch has applied the going concern approach, which
would lead to higher realisable recoveries as opposed to balance
sheet liquidation.

Considering Techem's stable business nature and cross-referencing
it to peers with similarly stable cash generation and
infrastructure-like operations, Fitch has applied a 7.0x distress
EV/EBITDA multiple to a Fitch-estimated EBITDA of EUR322 million
as of March 2018 discounted by 30%. After deduction of 10% for
administrative claims, its term loan B of EUR1.6 billion ranking
pari passu with the revolving credit facility (RCF) of EUR150
million would achieve a recovery of around 81%, resulting in an
unchanged senior secured debt instrument rating of
'BB'/'RR2'/81%, after a two-notch uplift from the IDR of 'B+'.

RATING SENSITIVITIES

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

  - FFO adjusted gross leverage remaining sustainably below 6.0x

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

  - FFO adjusted gross leverage significantly and sustainably
above 7.0x

  - Contracting revenue and EBITDA margin erosion leading to a
significant decline in pre-dividend free cash flow (FCF) margin

LIQUIDITY

Sufficient Liquidity: Strong operating performance will lead to
continued increases in pre-dividend FCF of at least EUR100
million, This strong internal cash generation is further
supported by the committed RCF of EUR150 million, most of which
Fitch expects to remain undrawn over the next three years.


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


OZLME IV: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'
-------------------------------------------------------
Fitch Ratings has assigned OZLME IV D.A.C. expected ratings, as
follows:

EUR223 million Class A-1: 'AAA(EXP)sf'; Outlook Stable

EUR25 million Class A-2: 'AAA(EXP)sf'; Outlook Stable

EUR37 million Class B: 'AA(EXP)sf'; Outlook Stable

EUR5.25 million Class C-1: 'A(EXP)sf'; Outlook Stable

EUR22.75 million Class C-2: 'A(EXP)sf'; Outlook Stable

EUR23 million Class D: 'BBB-(EXP)sf'; Outlook Stable

EUR24 million Class E: 'BB (EXP)sf'; Outlook Stable

EUR12 million Class F: 'B-(EXP)sf'; Outlook Stable

EUR40.8 million subordinated notes: not rated

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

OZLME IV D.A.C. is a securitisation of mainly senior secured
loans (at least 90%) with a component of senior unsecured,
mezzanine, and second-lien loans. A total expected note issuance
of EUR412.8 million will be used to fund a portfolio with a
target par of EUR400 million. The portfolio will be managed by
Och-Ziff Europe Loan Management Limited. The CLO envisages a
4.25-year reinvestment period and an 8.5-year weighted average
life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
identified portfolio is 31.3.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rating (WARR) of the
identified portfolio is 68.4%.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the expected ratings is 21% of the portfolio balance.
The transaction also includes limits on maximum industry exposure
based on Fitch industry definitions. The maximum exposure to the
three-largest (Fitch-defined) industries in the portfolio is
covenanted at 40%. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction features a 4.25-year reinvestment period and
includes reinvestment criteria similar to other European
transactions. Fitch analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the
transaction structure against its covenants and portfolio
guidelines.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls and the various structural
features of the transaction, and to assess their effectiveness,
including the structural protection provided by excess spread
diverted through the par value and interest coverage tests.

RATING SENSITIVITIES

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

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.


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


RG BRANDS: Moody's Affirms B2 CFR, Outlook Stable
-------------------------------------------------
Moody's Investors Service affirmed JSC RG Brands' (RG Brands)
Corporate Family Rating (CFR) of B2 as well as its Probability of
Default Rating (PDR) of B2-PD. The outlook on the ratings is
stable.

The affirmation of RG Brands' ratings acknowledges the company's
development broadly in line with Moody's rating guidance. The
company maintains a strong position in its key Kazakhstan market,
moderate leverage and adequate liquidity.

RATINGS RATIONALE

RG Brands's B2 CFR primarily reflects the company's small scale
of operations by international standards, with revenue of $163
million in the 12 months ended March 2018. The rating also
captures RG Brands' high geographic concentration in Kazakhstan,
which exposes the company to local economic and foreign-exchange
risks, changes in consumer demand, as well as risks related to
the country's less-developed regulatory, political and legal
frameworks.

More positively, RG Brands' rating takes into account the
company's (1) strong domestic market position; (2) diversified
product portfolio, with a good product mix and strong brand
names, including its long-term exclusive bottling agreement with
PepsiCo and Pepsi Lipton International; (3) modern production
facilities, with spare capacity and discretionary investment
requirements; and (4) proved access to bank funding.

In 2017, RG Brands' revenue grew by 7.6% from a year earlier,
just slightly above 7.0% inflation. At the same time, the company
managed to avoid any significant increase in its cost of
materials, helped by some appreciation in the tenge because these
costs are mainly in foreign currency. As a result, despite the
still weak consumer market in Kazakhstan and increasing marketing
expenses in promoting sales, the adjusted EBITDA and EBIT margins
slightly improved to 13.3% and 8.4%, respectively, in 2017.

That said, RG Brands' free cash flow (FCF), which had been
positive for many years, turned negative on the back of a sizable
cash outflow owing to its increased working capital needs
effected by prepayments to suppliers with a view to getting
favorable prices and terms of delivery, and higher capital
spending.

Nevertheless, RG Brands reduced adjusted debt/EBITDA to 2.7x in
2017 from 3.8x in 2016, primarily by paying debt from its
significant accumulated cash reserves (KZT15.7 billion, or $47.0
million as of year-end 2016). Leverage marginally increased to
3.1x in the first quarter of 2018. The increase is mainly
attributed to the company's decision to accumulate reserves in
liquid foreign-currency denominated instruments while using debt
to finance its working capital and capital spending requirements.

Over the next 12-18 months, in line with its plans, RG Brands is
likely to turn FCF positive on the back of the projected
Kazakhstan market recovery, solid sales and sustainable
profitability. As a result, the company should be able to avoid
any significant increase in leverage and maintain it at around
3.0x on adjusted basis. This expectation factors in RG Brands'
internal financial target of unadjusted net debt/EBITDA at 2.5x
and plans to accumulate up to $20 million in highly liquid
instruments for potential bolt-on acquisitions.

RG Brands' liquidity position is adequate despite a significant
amount of short-term debt (61% of total debt). As of the end of
March 2018, cash and reserved liquidity, represented by highly
liquid foreign-currency denominated instruments, of KZT8.4
billion, together with available long-term committed bank
facilities of around KZT13.6 billion, including revolving credit
facilities, was sufficient to cover RG Brands' debt maturities of
KZT14.2 billion over the next 18 months. Together with the
company's operating cash flow, these sources should cover all the
company's cash needs in the same period, including capital
spending and dividends.

According to management, the company is targeting to refinance
its short-term debt with long-term instruments and decrease the
share of short-term debt in total debt towards 30%.

RG Brands significantly benefits from its established access to
long-term funding from leading financial institutions, such as
the International Finance Corporation, the European Bank of
Reconstruction and Development, the Asian Development Bank and
the Eurasian Development Bank, as well as state funding on
favorable terms.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on RG Brands' rating reflects Moody's
expectation that, over the next 12-18 months, despite the risk of
a slow recovery of the still-weak consumer environment in
Kazakhstan, the company will demonstrate solid operating results,
return to positive free cash flow, and maintain its credit
metrics within the rating guidance while proactively and timely
addressing liquidity needs.

WHAT COULD CHANGE THE RATING UP / DOWN

RG Brands' rating could move upward if the company delivers: (1)
a material increase in revenue generation while maintaining a
significant market share in key markets; (2) adjusted debt/EBITDA
below 2.5x and FFO/debt above 30% on a sustained basis; and (3) a
strong liquidity and compliance with all debt covenants.

RG Brands' rating could move downward if: (1) the company's
adjusted debt/EBITDA and FFO/debt weaken respectively above 3.5x
and below 10% on a sustained basis; (2) adjusted EBITA margin
deteriorates below a 8%-10% on a sustained basis; and (3) the
company's liquidity position erodes.

COMPANY PROFILE

JSC RG Brands is a leading private beverage and food company in
Kazakhstan with its own manufacturing and distribution
capacities. The company predominantly operates in Kazakhstan and
Central Asia and, to a lesser extent, in Russia. The company's
beverages portfolio consists of juices, soft drinks, energy
drinks and mineral water, while its food product and snacks
portfolio includes packaged goods such as tea, ultra-high-
temperature milk and snacks. In 2017, the company reported
revenue of KZT52.4 billion ($160.8 million).

RG Brands is majority-owned by two individuals, Mr. Mazhibayev
and Mr. Kozhkinbayev, who hold around 97% of the company's
shares.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Packaged Goods published in January 2017.


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


EUROPEAN CROPS: Moody's Assigns 'B2' CFR, Sr. Secured TLB Rating
----------------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and a B2-PD probability of default rating (PDR) to European
Crops Products 2 S.a r.l. (ECP), the parent company of Broccoli
Portugal S.A., which is the owner of a group of companies
operating in the specialty agrochemical sector (together, Sapec
Agro). Concurrently, Moody's assigned a B2 rating to ECP's senior
secured term loan B ("TLB") due 2025 and senior secured revolving
credit facility (RCF) expiring in 2024. The outlook on all
ratings is stable.

The new ratings were assigned in the context of the refinancing
and maturity extension for a further 24 months of the group's
existing TLB and RCF, in parallel with an add-on to TLB of around
EUR130 million. The additional debt will be used for general
corporate purposes and to fund a EUR72 million distribution to
shareholders.

RATINGS RATIONALE

ECP's B2 CFR is primarily constrained by 1) the high leverage
that ECP will exhibit immediately post refinancing with Moody's
adjusted total debt to EBITDA of 6.5x at the end of June 2018, on
a pro-forma basis (i.e. including a full-year contribution from
recent acquisitions) and 2) the low free cash flow after capex
(FCF) coverage of debt stemming from the high debt burden and
resulting interest payments. ECP's rating is further constrained
by the relatively small scale of its operations and high, albeit
reducing, exposure to the Iberian agricultural markets.

With pro-forma revenues estimated at around EUR290 million in the
year to June 2018, the scale of ECP's operations is modest
relative to global R&D-led crop science players and fertiliser
producers such as Syngenta AG (Ba2 stable), Bayer AG (Baa1
negative) and Yara International ASA (Baa2 stable), but also
compared to some of its peers in the differentiated generic crop
protection (CP) markets, such as the agro division of diversified
US-based chemical group FMC Corporation (Baa2 stable) and Arysta
owned by Platform Specialty Products Corporation (B2 stable).

However, ECP has a broad and diversified portfolio of specialty
crop nutrition (SCN) and differentiated CP products that covers
most of the plant input spectrum and caters throughout the plant
lifecycle. It ranks amongst the world's largest independent
producers of SCN products and holds strong positions in niche
markets such as micronutrients and biostimulants, which accounted
for 40% and 25% of its SCN sales in 2017. Also, ECP develops and
supplies more than 150 differentiated CP formulations based on a
diverse portfolio of proprietary generic active ingredients
(AIs), including fungicides, herbicides and insecticides.

Against the backdrop of supportive long-term fundamentals
prevailing in the agricultural sector, ECP exhibits a good
innovation track-record, which underpins its overall
profitability. In the last five years, it launched 98 new SCN
products, which typically yield higher than average gross margins
and accounted for around 16% of sales in 2017. Also, its strong
formulation and registration know-how allows the continuous
development of new CP products, with approximately 80% of its AIs
and formulations dossiers developed in-house. These proprietary
capabilities enable the group to differentiate itself from other
producers and act as a barrier to entry in an otherwise highly
competitive generic CP market. While yielding lower returns than
patented CP products, ECP's differentiated and complex
formulations (i.e. multi-AI products) command significantly
higher margins than volume generics.

In 2018, Moody's estimates that more than three quarters of ECP's
sales were originated in the Europe, with nearly half of its
revenues generated in Spain and Portugal, including 69% and 20%
of its CP and SCN sales respectively. This leaves the group
particularly exposed to the vagaries of the weather conditions in
these countries. However, this regional concentration is somewhat
mitigated by the entrenched positions ECP holds in the Iberian
off-patent CP market and its strong focus on high value,
specialty cash crops (e.g. fruit and vegetable products, vine,
flowers and intensive crops). Also, in the last decade, ECP has
continuously expanded its international presence, increasing
market penetration in France and Italy (about 20% of revenues and
profits in 2018), but also Latin America, in particular Brazil,
which is one of the world's major agricultural markets and
accounts for around 7% of its sales. Currently, the group
generates sales in over 80 countries world-wide through a hub-
and-spoke sales network of more than 20 local teams of sales
agronomists allowing client proximity.

The robust operating performance reported in recent years by ECP,
despite the challenging operating conditions prevailing in global
agricultural markets, demonstrates the resilience of its business
model underpinned by a broad portfolio of differentiated
products, strong focus on high-value cash crops and loyal
customer base. Since June 2016, ECP posted average annual growth
in organic revenue and EBITDA before special items of 6% and 13%
respectively.

Moody's expects that an improved product mix across regions
driven by the growth in high margin biostimulants and new CP
product registrations (mainly in Portugal and Spain) as well as
efficiency gains resulting from the operational improvement
programme, will have lifted Moody's adjusted EBITDA margin by 2.1
percentage points to 19.5% in the year to June 2018. Excluding
the incremental debt of EUR128 million that ECP will contract as
part of the planned refinancing, Moody's estimates that adjusted
total debt to EBITDA would fall to 5.1x at June 2018, from around
5.9x post Bridgepoint acquisition in January 2017.

However, following the planned refinancing, Moody's expects that
ECP's adjusted total leverage will rise to 6.5x based on pro-
forma 2018 EBITDA of EUR58 million (i.e. including a full-year
contribution from recent acquisitions but excluding cost
synergies of EUR3 million p.a. targeted by management). Moody's
considers that this will leave ECP's B2 rating weakly positioned.
It will therefore be looking for ECP to grow EBITDA generation
while generating positive free cash flow after interest costs and
capex, which would allow some gradual decline in leverage even in
the absence of any reduction in gross debt.

Moody's views ECP's liquidity position as adequate. Moody's
expects the group to generate positive free cash flow after capex
in a range of EUR15-20 million in coming years. In addition, the
group's EUR0 million committed RCF, which expires in 2024, will
be fully undrawn following the completion of the planned
refinancing. This will provide ECP with a source of alternate
liquidity deemed sufficient to meet its short-term working
capital requirements beside the factoring lines it has arranged
separately. The RCF will have one springing net leverage
maintenance covenant, to be tested if the RCF is utilised at 35%
or more. The covenant will initially be set at a level to give
35% headroom.

ECP's B2-PD probability of default rating (PDR) is at the same
level as the CFR, reflecting an assumed family recovery rate of
50%. The EUR318 million TLB and EUR60 million RCF rank pari passu
with each other, and are rated B2 at the same level as the CFR.
Obligations under TLB are to be guaranteed by ECP and its
subsidiaries, which together must account for at least 80% of the
group's consolidated EBITDA. The company's capital structure also
includes other shareholder instruments of EUR281 million, which
meet Moody's criteria for equity treatment.

RATIONALE FOR STABLE OUTLOOK

The stable outlook on ECP's ratings assumes: (1) positive FCF and
ongoing adequate liquidity; (2) continued solid revenue and
EBITDA growth on an organic basis, leading to some gradual
decline in leverage; and (3) no material debt-funded acquisitions
or shareholder distributions.

WHAT COULD CHANGE THE RATING UP/DOWN

While unlikely at this juncture, Moody's may consider a rating
upgrade in the context of further significant expansion and
geographical diversification of ECP's revenue base as well as
EBITDA growth, which would allow the group to apply substantial
FCF in reduction of debt, so that Moody's adjusted total debt to
EBITDA trends towards 4x on a sustainable basis.

Conversely, ECP's ratings could come under negative pressure
should (i) ECP fail to grow EBITDA and total debt EBITDA remains
above 6x for a prolonged period and/or the group generates
negative FCF leading to some deterioration in its liquidity
profile.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemical
Industry published in January 2018.

Incorporated in Luxembourg, European Crops Products 2 S.Ö r.l.
(ECP) is the parent company of Broccoli Portugal S.A, which is
the owner of a group of companies operating in the agri business
sector, supplying specialty crop nutrition and crop protection
products to growers. In the year to June 2018, Moody's expects
ECP to report EBITDA of EUR47.2 million on sales revenue of
EUR253 million.


QGOG CONSTELLATION: Makes $3MM Interest Payment on 6.25% Notes
--------------------------------------------------------------
QGOG Constellation S.A. ("QGOG Constellation" or the "Company")
on June 8 disclosed that it made a $3.0 million interest payment
on its 6.25% Senior Notes due 2019 (the "2019 Notes") within the
30-day grace period it had previously elected to utilize in
connection with the 2019 Notes.  The delivery of this payment
cures all defaults in respect of the 2019 Notes.

The Company had also elected to enter into a 30-day grace period
to defer a $27.3 million interest payment on its 9.000%
Cash/0.500% PIK Senior Secured Notes due 2024 (the "2024 Notes").
The Company has determined not to make such payment at this time
as it has entered into a forbearance agreement expiring on
June 15, 2018 with (i) the holders of over 75% of the aggregate
principal amount of the 2024 Notes outstanding, (ii) Banco
Bradesco S.A. and (iii) a majority of its project finance
lenders.

The Company's determination not to make the interest payment on
the 2024 Notes at this time was a strategic decision to
facilitate ongoing negotiations with the Company's key
stakeholders.  The Company continues to advance these discussions
with the aim of a comprehensive re-profiling of its capital
structure to match its operating business and the industry's
current economic environment.

QGOG Constellation SA provides offshore and onshore oil and gas
contract drilling services.  The Company offers chartering of
offshore and onshore drilling rigs. QGOG Constellation operates
in Luxembourg.


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


JUBILEE CLO 2018-XX: Moody's Assigns (P)B2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Jubilee
CLO 2018-XX B.V.

EUR 2,000,000 Class X Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 236,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 16,200,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 10,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 25,000,000 Class B-3 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 12,800,000 Class C-1 Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

EUR 15,000,000 Class C-2 Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

EUR 20,000,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)Baa2 (sf)

EUR 26,300,000 Class E Deferrable Junior Floating Rate Notes due
2031, Assigned (P)Ba2 (sf)

EUR 10,800,000 Class F Deferrable Junior Floating Rate Notes due
2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2031. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Alcentra Limited
("Alcentra"), has sufficient experience and operational capacity
and is capable of managing this CLO.

Jubilee CLO 2018-XX B.V. is a managed cash flow CLO. At least 90%
of the portfolio must consist of senior secured loans and senior
secured bonds and up to 10% of the portfolio may consist of
unsecured obligations, second-lien loans, mezzanine loans and
high yield bonds. The bond bucket gives the flexibility to
Jubilee CLO 2018-XX B.V. to hold bonds if Volcker Rule is
changed. The portfolio is expected to be approximately 75% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

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

In addition to the ten classes of notes rated by Moody's, the
Issuer will issue EUR 37.6m of subordinated notes, which will not
be rated.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority.

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. Alcentra's investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

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

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

Par amount: EUR 400,000,000

Diversity Score: 37

Weighted Average Rating Factor (WARF): 2825

Weighted Average Spread (WAS): 3.60%

Weighted Average Coupon (WAC): 4.50%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional ratings assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. 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 3249 from 2825)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A Senior Secured Floating Rate Notes: 0

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

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

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

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

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

Class D Deferrable Mezzanine Floating Rate Notes.-2

Class E Deferrable Junior Floating Rate Notes: -1

Class F Deferrable Junior Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3673 from 2825)

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A Senior Secured Floating Rate Notes: -1

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

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

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

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

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

Class D Deferrable Mezzanine Floating Rate Notes.-3

Class E Deferrable Junior Floating Rate Notes: -2

Class F Deferrable Junior Floating Rate Notes: -2


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


HYPERION SA: Warsaw Court Discontinues Bankruptcy Proceedings
-------------------------------------------------------------
Reuters reports that Hyperion SA on June 10 said the court in
Warsaw discontinued the company's bankruptcy proceedings.

The court declared the company bankrupt in February, Reuters
relates.

Hyperion S.A. engages in the construction and handling of optical
fiber infrastructure in Poland.  It serves mobile operators,
telecom network and cable TV operators, Internet providers,
public institutions, and educational establishments.  The company
was founded in 2006 and is based in Warsaw, Poland.


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


CAIXA GERAL: Moody's Assigns Ba1 LT Counterparty Risk Rating
------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
to six Portuguese banking groups: Caixa Geral de Depositos, S.A.
(CGD), Banco Comercial Portugues, S.A. (BCP), Novo Banco, S.A.,
Banco Santander Totta S.A. (BST), Banco BPI S.A. (BPI) and Caixa
Economica Montepio Geral, caixa economica bancaria, S.A. (CEMG).

Moody's Counterparty Risk Ratings (CRR) are opinions of the
ability of entities to honor the uncollateralized portion of non-
debt counterparty financial liabilities (CRR liabilities) and
also reflect the expected financial losses in the event such
liabilities are not honored. CRR liabilities typically relate to
transactions with unrelated parties. Examples of CRR liabilities
include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of
liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated
with covered bonds, letters of credit, guarantees, servicer and
trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.

RATINGS RATIONALE

In assigning CRRs to the banks and branches subject to this
rating action, Moody's starts with the banks' adjusted Baseline
Credit Assessment (BCA) and uses the agency's existing advanced
Loss-Given-Failure (LGF) approach that takes into account the
level of subordination to CRR liabilities in the bank's balance
sheet and assumes a nominal volume of such liabilities. In
addition, where applicable, Moody's has incorporated a moderate
likelihood of government support for CRR liabilities.

As a result, of the CRRs assigned to the six groups, the CRRs of
four banking groups (CGD, BCP, Novo Banco and BPI) are three
notches higher than their respective adjusted BCAs and the CRRs
of two banking groups (BST and CEMG) are two notches higher.

In all cases the CRRs assigned are equal to or higher than the
rated banks' senior debt ratings. This reflects Moody's view that
secured counterparties to banks typically benefit from greater
protections under insolvency laws and bank resolution regimes
than do senior unsecured creditors, and that this benefit is
likely to extend to the unsecured portion of such secured
transactions in most bank resolution regimes. Moody's believes
that in many cases regulators will use their discretion to allow
a bank in resolution to continue to honor its CRR liabilities or
to transfer those liabilities to another party who will honor
them, in part because of the greater complexity of bailing in
obligations that fluctuate with market prices, and also because
the regulator will typically seek to preserve much of the bank's
operations as a going concern in order to maximize the value of
the bank in resolution, stabilize the bank quickly, and avoid
contagion within the banking system. CRR liabilities at these
banking groups therefore benefit from the subordination provided
by more junior liabilities, with the extent of the uplift of the
CRR from the adjusted BCA depending on the amount of
subordination.

FACTORS THAT COULD LEAD TO AN UPGRADE

As the banks' CRRs are linked to the standalone BCA and the
results of Moody's LGF analysis, any upward change to the BCA and
rating uplift under the LGF analysis would likely also affect
these ratings.

The banks' standalone BCAs could be upgraded as a consequence of
a sustained recovery in recurrent profitability levels, while
maintaining improving trends of asset risk indicators, with an
ongoing reduction in the stock of problematic assets. The banks'
BCAs could also be upgraded on the back of stronger Tangible
Common Equity (TCE) levels.

The banks' CRRs could also experience upward pressure from
movements in the loss-given-failure faced by these liabilities.
Changes in the banks' liability structure which would indicate a
lower loss severity for senior creditors could result in higher
ratings uplift, except for Novo Banco and BPI . The significant
level of subordination below the CRR liabilities at each of the
two banking groups already provides the maximum amount of uplift
allowed under Moody's rating methodology.

Further, under Moody's methodology, a bank's CRR will typically
not exceed the sovereign rating by more than two notches.
Portuguese banks' maximum achievable CRR is therefore Baa2/Prime-
2.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Likewise, as the banks' CRRs are linked to the standalone BCA and
the results of Moody's LGF analysis, any deterioration of the BCA
and lower rating uplift under the LGF analysis would likely also
affect these ratings.

Downward pressure on the banks' BCAs could develop as a result
of: (1) the reversal in current asset risk trends with an
increase in the stock of nonperforming assets; (2) a weakening of
banks' internal capital-generation and risk-absorption capacity
as a result of subdued profitability levels; and/or (3) a
deterioration in the banks' liquidity position.

The banks' CRRs could also experience downward pressure from
movements in the loss-given-failure faced by these liabilities.
Sustained lower volumes of subordinated, senior debt instruments
or junior deposits could result in fewer notches of rating uplift
under the Advanced LGF analysis.

Furthermore, where applicable, Moody's re-assessment of the
likelihood of systemic support from the Government of Portugal
could reduce rating uplift and lead to downgrades of CRR.

LIST OF AFFECTED RATINGS

Issuer: Caixa Geral de Depositos, S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba1

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Caixa Geral de Depositos, S.A. (Paris)

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba1

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Caixa Geral de Depositos/New York

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba1

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Banco Comercial Portugues, S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Banco Comercial Portugues, SA, Macao Br

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Banco Comercial Portugues, SA, Madeira

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Ba2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Novo Banco, S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned B2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Novo Banco S.A., London Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned B2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Novo Banco S.A., Luxembourg Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned B2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Novo Banco, S.A., Cayman Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned B2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Novo Banco, S.A., Madeira Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned B2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned NP

Issuer: Banco Santander Totta S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco Santander Totta S.A., London

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco BPI S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco BPI S.A. (Cayman)

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco BPI S.A. (Madeira)

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco BPI S.A. (Santa Maria)

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Caixa Economica Montepio Geral, CEB, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned B2

Short-term (Local Currency) Counterparty Risk Rating, assigned NP

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in June 2018.


LISGRAFICA IMPRESSAO: Creditor Agreement Fails to Get Court Nod
---------------------------------------------------------------
Lisgrafica Impressao E Artes Graficas SA on June 8 said the court
refused to grant approval to the agreement reached between the
company and its creditors.

Lisgrafica Impressao is a Portugal-based company primarily
engaged in the provision of printing services.


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


ALTAI REGION: Fitch Affirms LT IDRs at BB+, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Russian Altai Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'BB+' with Stable Outlook and Short-Term Foreign-Currency IDR at
'B'.

The affirmation reflects Altai's sound budgetary performance with
strong operating balance and very low direct risk amid strong
liquidity leading to a net cash positive position. This is
balanced by the modest size of the region's economy leading to
its limited fiscal capacity. The ratings also factor in the
region's low fiscal flexibility due to its high dependence on the
decisions of the federal authorities amid a weak institutional
framework for Russian subnationals.

KEY RATING DRIVERS

Budgetary Performance (Neutral/ Positive)

Altai has demonstrated a notable improvement in operating
performance over the last two years when the operating margin
averaged 18.7% compared with 7.6% in 2012-2015. The operating
performance improvement was supported by a tax increase, in
particular corporate income tax (CIT), which demonstrated 1.5x
growth in 2016 and higher current transfers in 2017 amid tight
control of operating expenditure. Under its rating case scenario,
Fitch assumes Altai's operating margin could drop back toward
12%-14% over the medium term, fuelled by acceleration of opex and
uncertainty about the stability of increased federal grants.

At the same time, Fitch considers the region's tax capacity will
remain below its national peers. This implies that federal
transfers will continue to constitute a notable proportion of
Altai's budget, exceeding 50% of annual operating revenue in
2018-2020.

Fitch expects a moderate decline in tax revenue in 2018 due to
the deceleration of CIT proceeds stemming from the high tax base
reached in the previous years, and lower proceeds from excises
driven by the federal government decision to decrease rates on
petroleum excises. However, this should be fully compensated by
higher current transfers from the federal government, which will
increase by about 30% driven by a new formula of general purpose
grants allocation and higher earmarked transfers for co-financing
an increase in salary expenses.

Altai intends to channel most of the additional non-earmarked
federal transfers to cover higher capex, so Fitch does not expect
significant growth of operating expenditure in 2018. However,
pressure from growth in staff costs, which was induced by the
recent federal government decision to increase minimal salary to
subsistence level will remain challenging in the medium term.

The region recorded a surplus budget before debt at 5.7% and 1.7%
of total revenue in 2016 and 2017, driven by higher revenue
growth, which outpaced expenditure increase. According to Fitch's
base case scenario, the region will record a moderate deficit
before debt variation of 1%-2% of total revenue in the medium
term driven by higher capex amid moderate deceleration of revenue
growth. However, the expected deficit will be covered by a
material cash balance of RUB7.9 billion as of January 1, 2018,
which will limit recourse to new debt.

Debt and Liquidity (Strength/Stable)

Fitch expects Altai's direct risk to remain low by national and
international standards over the medium term, corresponding to
higher rated peers. Historically, the region's debt has been low,
with subsidised federal budget loans the sole debt instrument
since 2007. Altai's direct risk accounted for a low RUB2.0
billion or 2.4% of current revenue at end-2017, while a strong
cash balance led to a positive net cash position and very strong
debt payback.

At end-2017, the maturity of outstanding budget loans was
prolonged until 2024 according to the budget loan restructuring
programme initiated by the federal government at end-2017. This
improved the weighted average life of region's debt to seven
years, which is strong compared with the majority of national
peers.

Management (Neutral/Stable)

In general, the region's budgetary policy is dependent on the
decisions of the federal authorities and flexibility both in
revenue and expenditure side is low. In mitigation Altai follows
a prudent and conservative budgetary and debt policy, which is
evident in strong accumulated liquidity and a very low debt
burden. At the same time, the region maintains a relatively high
level of capex, which averaged 19% of total spending in 2012-
2017, investing in the development of social and economic
infrastructure in the region, including development of special
economic and recreation zones.

Economic (Weakness/Stable)

Fitch assesses Altai's economy as weak by international standards
due to the region's low economic output per capita. Its 2015,
gross regional product (GRP) per capita was 63% of the national
median. This is in part due to the high proportion of agriculture
and food processing in the local economy. Fitch expects the
Russian economy will continue a moderate recovery at 2.0% in
2018-2019, and Altai will likely to follow this trend.

Institutional Framework (Weakness/Stable)

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional
governments (LRGs), which has a shorter record of stable
development than many of its international peers. This leads to
lower predictability of Russian LRGs' budgetary policies, which
are subject to the federal government's continuous reallocation
of revenue and expenditure responsibilities within government
tiers.

RATING SENSITIVITIES

Sustainably strong budgetary performance with an operating margin
of about 15% and maintaining low direct risk would lead to an
upgrade.

A downgrade could result from significant deterioration in
operating performance, coupled with a sharp increase in the
region's overall risk.


BANK OTKRITIE: Moody's Hikes Sr. Debt & Deposit Ratings to B1
-------------------------------------------------------------
Moody's Investors Service upgraded the long-term foreign- and
local-currency senior unsecured debt and deposit ratings of Bank
Otkritie Financial Corporation PJSC (BOFC) to B1 from B2, and its
long-term counterparty risk assessment (CRA) to Ba3(cr) from
B1(cr). Concurrently, Moody's upgraded BOFC's baseline credit
assessment (BCA) to caa1 from caa3, its adjusted BCA to caa1 from
caa3. The outlook on the long-term debt and deposit ratings has
been changed to Positive from Rating under Review.

In addition, Moody's affirmed BOFC's short-term deposit ratings
of Not Prime, and the short-term CRA of Not Prime(cr). The
foreign-currency subordinated debt (ISIN: XS0776121062) rating
was affirmed at C and will be withdrawn given its defaulted
status.

The rating action was driven by the following rating factors: (1)
a significant reduction of the bank's exposures to problem assets
after the loan to its former subsidiary National Bank Trust (NBT)
was fully repaid in Q1 2018; and (2) an improvement in its
capital position after the deconsolidation of NBT.

RATINGS RATIONALE

REDUCED EXPOSURE TO PROBLEM ASSETS

The repayment of exposure to NBT has eased pressure on the
quality of BOFC's capital. This exposure significantly exceeded
the standalone regulatory capital of BOFC, while NBT reported
significant negative equity and was in breach of minimum
regulatory capital ratios at end-Q1 2018.

DECONSOLIDATION OF NBT RESULTS IN IMPROVEMENT IN CAPITAL POSITION

On March 14, 2018, NBT was transferred from BOFC to the Fund of
Consolidation of Banking Assets of the Central Bank of the
Russian Federation (CBR). As a result, BOFC's equity improved to
RUB 270 billion at end-Q1 2018 from RUB 149 billion at end-2017.
While BOFC's management will provide operational support to NBT,
it is unlikely to lead to its re-consolidation within BOFC nor
does Moody's expect it to provide any financial support to NBT.
At end-Q1 2018, BOFC's regulatory and IFRS capital ratios were
reasonable, with (1) a common Equity Tier 1 ratio (N1.1) of
12.9%, exceeding the regulatory thresholds and Basel III
additional buffers for systemically important banks (SIB) by over
500bp; and (2) Tangible Common Equity to Risk Weighted Assets
ratio of 13% (up from 3% at end-2017).

REMAINING CREDIT CHALLENGES AND OTHER DEVELOPMENTS

Pending the transfer of problem assets, BOFC's capital position
remains vulnerable, given insufficient provisions on the
substantial problem assets. In addition, BOFC's ability to re-
build the bank's business and generate sufficient recurring
revenue will be challenging. The forthcoming merger with B&N Bank
(B&N; also under CBR control) and existing multiple businesses
under the perimeter of BOFC (e.g. insurance, pension funds) will
make performance improvements complex and difficult. The bank's
management expects the group to breakeven in 2018 and to be
profitable in 2019, but these forecasts are subject to
considerable uncertainty.

BOFC's customer deposits are now broadly stable and its liquidity
cushion is now ample, at over 40% of total assets. During Q1
2018, the bank repaid the majority of funding from the CBR.
Moody's expects liquidity to remain high at least until end-2018
and then to return to more normal levels as the bank grows its
business.

TRANSFER OF BAD ASSETS AND IMPROVEMENT IN PERFORMANCE UNDERPIN
POSITIVE OUTLOOK

The positive outlook on the long-term debt and deposit ratings
reflects Moody's expectations that the forthcoming transfer of
problem assets to NBT from BOFC and B&N and simultaneous recovery
of bank's operations will significantly improve the asset quality
and profitability indicators while maintaining capital position
at an adequate level.

BOFC's management expects that the majority of problem loans
(problem loans currently exceed 50% of the loan portfolio) will
be transferred to NBT under the CBR financial rehabilitation
scheme by end-2018, following which BOFC and B&N will merge.

The CBR is set to create a special bank for problem and non-core
assets based upon NBT and another bank, Rost Bank, which will
merge with NBT. The new entity will then take on problem and non-
core assets from BOFC, B&N and some other failed banks.

GOVERNMENT SUPPORT

Moody's incorporates a very high likelihood of government support
for BOFC's debt and deposit ratings, resulting in three notches
of uplift from the BCA of caa1. This is based upon the CBR's
almost 100% ownership of the bank, BOFC's status as a SIB, a
still significant market share by assets among the 10 largest
Russian banks, and a history of financial support from the CBR,
both capital and funding.

WHAT COULD MOVE THE RATINGS UP/ DOWN

The bank's BCA could be upgraded if (1) the bank significantly
reduces exposure to problem assets after it transfers bulk of
remaining problem assets to NBT; and/or (2) the bank's return to
sustainable profitability becomes more certain. An upgrade in the
BCA may result in an upgrade in the bank's ratings, but this will
also depend on an updated assessment of potential further
government support.

The possibility of a downgrade to the bank's BCA is limited given
the positive outlook on the bank's BCA and ratings. Moody's may
change the outlook to stable if the bank fails to dispose of
problem assets and/or fails to improve financial performance.

The ratings could be downgraded in the unlikely event that the
CBR appeared less likely to continue its support to BOFC, or if
the Russian government's overall capacity and propensity to
render support to systemically important financial institutions
should diminish.

LIST OF AFFECTED RATINGS

Issuer: Bank Otkritie Financial Corporation PJSC

Upgraded:

Adjusted Baseline Credit Assessment, Upgraded to caa1 from caa3

Baseline Credit Assessment, Upgraded to caa1 from caa3

LT Bank Deposits, upgraded to B1 from B2, Outlook changed to
Positive from Rating under Review

Senior Unsecured Regular Bond/Debenture, upgraded to B1 from B2,
Outlook changed to Positive from Rating under Review

LT Counterparty Risk Assessment, upgraded to Ba3(cr) from B1(cr)

Affirmations:

ST Bank Deposits, Affirmed NP

ST Counterparty Risk Assessment, Affirmed NP(cr)

Affirmation and subsequent withdrawal:

Subordinate, Affirmed C (ISIN: XS0776121062), will be withdrawn

Outlook Action:

Outlook, Changed to Positive from Rating under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in June 2018.


CHUVASH REPUBLIC: Fitch Affirms LT IDRs at BB+, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed the Russian Chuvash Republic's
(Chuvashia) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) at 'BB+' with Stable Outlooks and Short-Term
Foreign-Currency IDR at 'B'. The agency has also affirmed the
republic's outstanding senior debt at 'BB+'.

The affirmation reflects the republic's sound fiscal performance
and moderate direct risk. This is balanced by the modest size of
the republic's economy and budget leading to a limited fiscal
capacity. The ratings also factor in the region's low fiscal
flexibility due to a high dependence on the federal authorities
for budgetary decisions amid a weak institutional framework for
Russian subnationals.

KEY RATING DRIVERS

Budgetary Performance (Neutral/Stable)

Fitch expects Chuvashia to continue its sound fiscal performance
in 2018, with an operating margin close to the high average of
18.4% in 2016-2017. Improvement was driven by growth of corporate
income tax proceeds on the back of economic recovery and a
significant increase in transfers from the federal government.
The latter was due to a new formula of general purpose grants
allocation and higher earmarked transfers for co-financing salary
increase.

In the longer term Fitch expects the operating margin will weaken
to a still sound 12%-13% as higher operating expenditure outpaces
growth of operating revenue. Among others operating spending will
be fuelled by higher staff cost following the recent federal
government decision to increase minimal salary to subsistence
level.

Chuvashia's exceptionally strong fiscal performance in 2016-2017
led to a surplus budget, after deficits averaging 5.7% of total
revenue in 2012-2015. According to Fitch's base case scenario,
the region will record a moderate deficit before debt variation
of 2%-3% in the medium term.

The moderate size of the republic's local economy and budget
results in a smaller tax capacity and ability to absorb potential
shocks than national peers. This leads to the region's high
reliance on federal transfers remaining steady; the latter
constitutes a third of Chuvashia's operating revenue annually.

Debt and Liquidity (Neutral/Stable)

Fitch forecasts the region's direct risk should remain moderate
at below 40% of current revenue (2017: 35.4%) over the medium
term and that the direct risk-to-current balance should
consolidate at two-to-three years, compared with an average of
five years in 2011-2015. Fitch believes that the expected 2018
deficit will likely be covered by the republic's cash balance of
RUB2.6 billion (as of January 1, 2018). Fitch projects that
direct risk will grow moderately to about RUB15.5 billion by end-
2020 (2017: RUB14 billion).

Chuvashia's direct risk profile is dominated by low-cost budget
loans, which reached 98% as of May 1, 2018 (end-2017: 55%),
allowing the region to save on interest payments. As they mature
budget loans as a share of direct risk will likely decline to 50%
in the medium term. They will be refinanced by market debt (bonds
and bank loans), which will add pressure to debt servicing and
refinancing needs, in Fitch's view.

At end-2017, the maturity of outstanding budget loans was
restructured under a programme initiated by the federal
government at end-2017. The maturity of RUB6.7 billion budget
loans received by the region in 2015-2017 has been extended to
2024, with most of the payments in 2021-2024.

Management (Neutral/Stable)

In general, the republic's budgetary policy is strongly dependent
on the decisions of the federal authorities and has low
flexibility both in revenue and expenditure. In mitigation the
administration follows a prudent and conservative budgetary
policy, which is manifested in a moderate debt burden. The
administration intends to narrow the region's fiscal deficit and
gradually reduce debt relative to revenue in the medium term, in
line with a bilateral agreement with the federal Ministry of
Finance.

Economic (Weakness/Stable)

Chuvashia is a medium-sized region in the eastern part of
European Russia with population of 1.231 million residents. The
republic's socio-economic profile is historically weaker than
that of the average Russian region. Its per capita GRP was 62% of
the national median in 2015. According to preliminary estimates,
the republic's economy marginally grew in 2016 after a 2.7%
contraction in 2015, which is in line with the national economic
trend. Fitch expects the Russian economy will continue its
moderate recovery with 2% GDP growth per annum in 2018-2019, and
Chuvash will likely follow this trend.

Institutional Framework (Weakness/Stable)

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional
governments (LRGs), which has a shorter record of stable
development than many of its international peers. This leads to
lower predictability of Russian LRGs' budgetary policies, which
are subject to the federal government's continuing reallocation
of revenue and expenditure responsibilities within government
tiers.

RATING SENSITIVITIES

Consolidation of strong budgetary performance with an operating
margin of about 15% on a sustained basis, accompanied by improved
fiscal flexibility and moderate direct risk could lead to an
upgrade.

Growth of direct risk, accompanied by deterioration in the
operating performance leading to a direct risk-to-current balance
rising above eight years on a sustained basis, would lead to a
downgrade.


KAZAN CITY: Fitch Withdraws 'BB-' IDRs for Commercial Reasons
-------------------------------------------------------------
Fitch Ratings has withdrawn Russian City of Kazan's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) of
'BB-' with Stable Outlook and Short-Term Foreign-Currency IDR of
'B'.

KEY RATING DRIVERS

Not applicable.

RATING SENSITIVITIES

Not applicable.

RATING WITHDRAWALS

Fitch has chosen to withdraw the city of Kazan's ratings for
commercial reasons. As Fitch does not have sufficient information
to maintain the ratings, accordingly, the agency has withdrawn
the city's ratings without affirmation and will no longer provide
ratings or analytical coverage for the city of Kazan.

DATE OF RELEVANT COMMITTEE

June 5, 2018


Kazan, City of

  - Short Term Issuer Default Rating; Withdrawn; WD

  - Local Currency Long Term Issuer Default Rating; Withdrawn; WD

  - Long Term Issuer Default Rating; Withdrawn; WD


KRASNODAR REGION: Fitch Affirms Then Withdraws BB LT IDRs
---------------------------------------------------------
Fitch Ratings has affirmed Russian Krasnodar Region's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB'
with Stable Outlook and Short-Term Foreign-Currency IDR at 'B'.
The region's outstanding senior unsecured domestic debt has been
affirmed at 'BB'.

At the same time, the agency has withdrawn the region's ratings
for commercial reasons, and will no longer provide ratings or
analytical coverage for the issuer.

KEY RATING DRIVERS

Debt and Other Long-Term Liabilities Reassessed to Neutral from
Weakness

Fitch expects the region's direct risk will further decline and
remain in the range of 50%-55% of current revenue over the medium
term. In 2017, direct risk decreased to 58% from 72% one year
earlier, supported by a 7.4% budget surplus. The debt payback
(direct risk to current balance) ratio improved to 5.1 years
(2016: 17.5 years), which is close to the weighted average life
of debt of 4.9 years. According to Fitch's rating case scenario,
the debt payback will hover around eight years in 2018-2020.

As of May 1, 2018, direct risk stood at RUB118.2 billion, of
which 51% was budget loans from the federal government. Around
70% of the budget loans are linked to financing for the Olympics
facilities and are due between 2023 and 2034. The maturity on
another part of budget loans has been prolonged until 2024 as a
result of the budget loan restructuring programme initiated by
the federal government at end-2017, which allows a reduction in
annual debt servicing and eases refinancing pressure on the
budget. Bank loans with maturities until 2021 represent 40% of
direct risk, while the remainder is issued debt.

The region remains exposed to notable contingent risk. In 2017
the region issued RUB21 billion guarantee in favour of the
Olympics developer NPJSC Centre Omega. The guarantee covers both
principal and interest payments and stretches until 2022, when
the company's debt is due. The guaranteed amount accounted for
around 10% of the region's current revenue at end-2017. The
availability of information on debt of companies from the broader
public sector is limited to Fitch, but Fitch assumes this could
represent some risk for the budget.

Fiscal Performance Assessed as Neutral

Fitch expects the operating balance will hover around 10% of
operating revenue in the medium term, supported by moderate
expansion of the tax base and cost control. In 2017, the
operating margin further improved to 14.2% (2016: 7.7%) supported
by increase of both taxes and current transfers from the federal
government as well as containment of opex growth at close to
inflation level.

According to Fitch's base case, Krasnodar will record low deficit
before debt at around 1% of total revenue annually in 2018-2020,
after two years of surplus budget in 2016-2017, due to
maintenance of low capex at below 10% of total spending. The
region's infrastructure was substantially upgraded ahead of the
Sochi Winter Olympic Games in 2014, when capex peaked at 30% of
total expenditure.

A positive budget balance in 2016-2017 allowed the region to
improve its liquidity position with cash reaching RUB16.2 billion
as of the beginning of 2018. In Fitch's view, the accumulated
cash reserves will largely be absorbed for deficit funding over
the medium term.

Economy Assessed as Neutral

Krasnodar's economy is large by national comparison and
diversified, providing a broad tax base. Krasnodar is among the
top five Russian regions by gross regional product (GRP) and
population, and its GRP per capita was 8% above the national
median in 2015 (the latest available data). According to the
regional government's estimates GRP grew 2.3% in 2017 outpacing
the national growth of 1.5%. The regional authorities expect GRP
will grow by 2.5% in 2018 and 2.9%-3.2% in 2019-2020, which is
above the Fitch's forecast of national economy growth at 2.0%
annually in 2018-2019.

Management and Administration Assessed as Neutral

In general, the region's budgetary policy is strongly dependent
on the decisions of the federal authorities, which leads to low
flexibility both in revenue and expenditure side. The regional
authorities follow a socially-oriented fiscal policy within an
annually adopted three-year budget, which includes the budget for
the current financial year and forecasts for two years ahead. The
regional government intends to gradually reduce its direct risk,
a significant part of which is budget loans linked to preparation
for the Olympic Games in 2014.

Institutional Framework Assessed as Weakness

Fitch views Russia's weak institutional framework for local and
regional governments (LRGs) as a constraint on the region's
ratings. Weak institutions have a short track record of stable
development compared with many of its international peers.
Unstable intergovernmental set-up leads to lower predictability
of LRGs' budgetary policies and negatively affects the region's
forecasting ability, and debt and investment management.

RATING SENSITIVITIES

Not applicable.


ROSMED JSIC: Bank of Russia Provides Update on Administration
-------------------------------------------------------------
Whereas Joint-stock Insurance Company ROSMED (hereinafter, the
Company) violated the requirements for maintaining financial
sustainability and solvency, the Bank of Russia, pursuant to its
Order No. OD-3427, dated December 7, 2017, effective December 8,
2017, appointed a provisional administration to manage the
Company (hereinafter, the provisional administration) for a term
of six months.

The Company's failure to timely rectify violations of the
insurance legislation served the grounds for the Bank of Russia
to revoke the Company's insurance licenses by its Order No.
OD-3584, dated December 21, 2017.

Acting within its mandate, the provisional administration
established facts in the activities of the Company's former
management and owners bearing the signs of asset withdrawal
through operations with real estate and through the sale of the
Company's liquid assets to third parties.

Besides, the provisional administration revealed the facts of
theft and abuse of authority in the activities of the Company's
former management and owners committed through entering into loan
and receivables assignment agreements.  The provisional
administration further established that, despite failure to
fulfill obligations to its counterparties, the insurance company
had conducted transactions to the detriment of the Company's
financial situation.

On April 17, 2018, the Arbitration Court of the City of Moscow
recognized the Company as insolvent (bankrupt).  The state
corporation Deposit Insurance Agency was appointed as a receiver.

The Bank of Russia submitted the information on financial
transactions bearing the evidence of the criminal offence
conducted by the officials of the Company to the Prosecutor
General's Office of the Russian Federation, the Ministry of
Internal Affairs of the Russian Federation and the Investigative
Committee of the Russian Federation for consideration and
procedural decision making.

The current development of the bank's status has been detailed in
a press statement released by the Bank of Russia.


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


IBERCAJA BANCO: Moody's Assigns Ba2 LT Counterparty Risk Rating
---------------------------------------------------------------
On June 8, 2018, Moody's changed the headline to "Moody's assigns
Counterparty Risk Ratings to 18 Spanish banking groups." Revised
release is as follows:

Moody's Investors Service has assigned Counterparty Risk Ratings
to 18 Spanish banking groups: Banco Santander S.A. (Spain) (Banco
Santander), Santander Consumer Finance S.A. (SCF), Banco Popular
Espanol, S.A. (Banco Popular), Banco Bilbao Vizcaya Argentaria
S.A. (BBVA), CaixaBank S.A., Banco Sabadell S.A., Bankia S.A.,
Bankinter S.A., Kutxabank S.A., Unicaja Banco (Unicaja), Ibercaja
Banco SA (Ibercaja), ABANCA Corporacion Bancaria, S.A. (Abanca),
Liberbank, Banca March S.A., Caja Rural de Navarra, CECABANK
S.A., Banco Cooperativo Espanol, S.A. (BCE), and Bankoa, S.A.

Moody's Counterparty Risk Ratings (CRR) are opinions of the
ability of entities to honor the uncollateralized portion of non-
debt counterparty financial liabilities (CRR liabilities) and
also reflect the expected financial losses in the event such
liabilities are not honored. CRR liabilities typically relate to
transactions with unrelated parties. Examples of CRR liabilities
include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of
liabilities under sale and repurchase agreements. CRRs are not
applicable to funding commitments or other obligations associated
with covered bonds, letters of credit, guarantees, servicer and
trustee obligations, and other similar obligations that arise
from a bank performing its essential operating functions.


RATINGS RATIONALE

In assigning CRRs to the banks subject to this rating action,
Moody's starts with the banks' adjusted Baseline Credit
Assessment (BCA) and uses the agency's existing advanced Loss-
Given-Failure (LGF) approach that takes into account the level of
subordination to CRR liabilities in the bank's balance sheet and
assumes a nominal volume of such liabilities. In addition, where
applicable, Moody's has incorporated the likelihood of government
support for CRR liabilities.

As a result, of the CRRs assigned to the 18 banking groups, the
CRRs of two banks (Banco Sabadell and Bankia) are four notches
higher than their respective adjusted BCAs, the CRRs of six banks
(BBVA, CaixaBank, Bankinter, Unicaja, CECABANK and Banca March)
are three notches higher, the CRRs of four banks (Banco
Santander, SCF, Banco Popular and BCE) are two notches higher and
the CRRs of six banks (Kutxabank, Abanca, Ibercaja, Liberbank,
Caja Rural de Navarra and Bankoa) are one notch higher.

Although most if not all of the eight banking groups whose CRRs
receive four or three notches of uplift from their adjusted BCAs
are likely to have more than a nominal volume of CRR liabilities
at failure, this has no impact on the ratings because the
significant level of subordination below the CRR liabilities at
each of the eight banking groups already provides the maximum
amount of uplift allowed under Moody's rating methodology.

CRR's of Banco Santander, SCF and Banco Popular are constrained
by Spain's sovereign rating of Baa1. Under Moody's methodology, a
bank's CRR will typically not exceed the sovereign rating by more
than two notches.

In all cases the CRRs assigned are equal to or higher than the
rated bank senior debt ratings, where applicable. This reflects
Moody's view that secured counterparties to banks typically
benefit from greater protections under insolvency laws and bank
resolution regimes than do senior unsecured creditors, and that
this benefit is likely to extend to the unsecured portion of such
secured transactions in most bank resolution regimes. Moody's
believes that in many cases regulators will use their discretion
to allow a bank in resolution to continue to honor its CRR
liabilities or to transfer those liabilities to another party who
will honor them, in part because of the greater complexity of
bailing in obligations that fluctuate with market prices, and
also because the regulator will typically seek to preserve much
of the bank's operations as a going concern in order to maximize
the value of the bank in resolution, stabilize the bank quickly,
and avoid contagion within the banking system. CRR liabilities at
these banking groups therefore benefit from the subordination
provided by more junior liabilities, with the extent of the
uplift of the CRR from the adjusted BCA depending on the amount
of subordination.

FACTORS THAT COULD LEAD TO AN UPGRADE

As the banks' CRRs are linked to the standalone BCA and the
results of Moody's LGF analysis, any upward change to the BCA and
rating uplift under the LGF analysis would likely also affect
these ratings.

The banks' standalone BCAs could be upgraded as a consequence of
a sustained recovery in recurrent profitability levels, while
maintaining current improving trends of asset risk indicators,
with an ongoing reduction in the stock of problematic assets. The
banks' BCAs could also be upgraded on the back of stronger
Tangible Common Equity (TCE) levels.

The banks' CRRs could also experience upward pressure from
movements in the loss-given-failure faced by these liabilities.
Changes in the banks' liability structure which would indicate a
lower loss severity for senior creditors could result in higher
ratings uplift, except for those eight banking groups whose CRR's
are positioned three notches above their adjusted BCA. The
significant level of subordination below the CRR liabilities at
each of the eight banking groups already provides the maximum
amount of uplift allowed under Moody's rating methodology.

Further, under Moody's methodology, a bank's CRR will typically
not exceed the sovereign rating by more than two notches. Spanish
banks' maximum achievable CRR is therefore A2/Prime-1.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Likewise, as the banks' CRRs are linked to the standalone BCA and
the results of Moody's LGF analysis, any deterioration of the BCA
and lower rating uplift under the LGF analysis would likely also
affect these ratings.

Downward pressure on the banks' BCAs could develop as a result
of: (1) the reversal in current asset risk trends with an
increase in the stock of nonperforming assets; (2) a weakening of
banks' internal capital-generation and risk-absorption capacity
as a result of subdued profitability levels; and/or (3) a
deterioration in the banks' liquidity position.

The banks' CRRs could also experience downward pressure from
movements in the loss-given-failure faced by these liabilities.
Sustained lower volumes of subordinated, senior debt instruments
or junior deposits could result in fewer notches of rating uplift
under the Advanced LGF analysis.

Furthermore, where applicable, Moody's re-assessment of the
likelihood of systemic support from the Government of Spain could
reduce rating uplift and lead to downgrades of CRR.

LIST OF AFFECTED RATINGS

Issuer: Banco Santander S.A. (Spain)

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Santander, S.A., London Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Santander, S.A., New York Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Santander Consumer Finance S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Popular Espanol, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned A2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
1

Issuer: Banco Bilbao Vizcaya Argentaria, S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Bilbao Vizcaya Argentaria, SA London Br

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Bilbao Vizcaya Argentaria, SA Paris Br

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: Banco Bilbao Vizcaya Argentaria,SA, New York

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned A2

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-1

Issuer: CaixaBank, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa1

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco Sabadell, S.A.

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Baa1

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-2

Issuer: Banco Sabadell S.A., London Branch

Assignments:

Long-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned Baa1

Short-term (Local and Foreign Currency) Counterparty Risk Rating,
assigned P-2

Issuer: Bankia, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa1

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Bankinter, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned A3

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Kutxabank, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa1

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Unicaja Banco

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Ibercaja Banco SA

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned Ba2

Short-term (Local Currency) Counterparty Risk Rating, assigned NP

Issuer: ABANCA Corporacion Bancaria, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned Ba1

Short-term (Local Currency) Counterparty Risk Rating, assigned NP

Issuer: Liberbank

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned Ba3

Short-term (Local Currency) Counterparty Risk Rating, assigned NP

Issuer: Banca March S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned A2

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
1

Issuer: Caja Rural de Navarra

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned A3

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: CECABANK S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa1

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Banco Cooperativo Espanol, S.A.

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned
Baa1

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

Issuer: Bankoa, S.A

Assignments:

Long-term (Local Currency) Counterparty Risk Rating, assigned A3

Short-term (Local Currency) Counterparty Risk Rating, assigned P-
2

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in June 2018.


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


ISTANBUL MUNICIPALTY: Fitch Affirms LT IDR at BB+, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Metropolitan Municipality of
Istanbul's (Istanbul) Long-Term Foreign Currency Issuer Default
Rating (IDR) at 'BB+' and Short-Term Foreign Currency IDR at 'B'.
Further, Fitch has affirmed Istanbul's Long Term Local Currency
IDR at 'BBB-' and National Long-Term Rating at 'AAA(tur)'. The
Outlooks are Stable.

The affirmation of the ratings reflects a continuation of
Istanbul's robust operating balance, albeit declining mainly due
to higher opex growth, and keeping debt-to-current balance on
average at two years.

The ratings further take into account the large unhedged FX
liabilities of the city and therefore the depreciation risk the
city is exposed to. This is mitigated by the amortising nature
and lengthy maturity of its debt and its predictable monthly cash
flows and access to financial markets.

KEY RATING DRIVERS

Fiscal Performance (Strength/ Stable): Fitch projects Istanbul to
post robust operating margins, due to its well-diversified
economy, albeit at the lower end of 40% against its previous
expectations at the high end of 40%, for 2018-2020. This is
because opex growth will remain on average in line with operating
revenue growth over the forecast period, except for 2018 when it
will outpace operating revenue by almost 6%. Following Fitch's
downward revision of national GDP growth for 2018-2019, it
expects shared tax revenue growth attributable to the
metropolitan area to slow to 14% yoy, from the previously
expected 16% yoy, in 2018-2019.

In line with Fitch's expectations shared tax revenue attributable
to the metropolitan area increased 16% yoy in 2017 to TRY9.4
billion, Opex continued its upward trend, growing 26.6% yoy
against its expectation of 20.8%, mainly on the back of an
increase in services ahead of local elections, and surpassing
operating revenue growth. The spending was mostly related to
external services such as technical support for construction,
advisory services, security staff and cleaning services.

Higher-than-expected capex realisation at 115% of the budgeted
level (versus Fitch's expectation of 97.3%) caused the budget
deficit to widen to a high 33.7% of total revenue in 2017 from
28.6% in 2016. Fitch estimates the city will continue to post
large budget deficits before financing on average at about 25% of
total revenue. This is due to expected large capex realisation
prior to local elections in 2019, which will not be fully covered
by current balance and capital revenue, thereby increasing debt
funding.

Debt (Neutral/ Stable): Fitch changed the trend on debt &
liquidity to stable from negative, as it expects the city will
incur at least about 40% of new borrowing through inter-company
loans, thereby not increasing its financial market debt. This
will help keep debt-to-current revenue at 80% in 2018-2019 and to
lower it below 80% in 2020. Fitch also takes a conservative
approach to debt funding, as it does not assume that Istanbul
will scale down its capex for 2018-2020. This will continue to
lead to more borrowing, irrespective of the pressure on budgetary
performance, which is reflected in its forecasts.

Liquidity is under pressure from ongoing large capex expected in
2018-2019. At end-2017 year-end cash further weakened to 0.2x of
annual debt servicing costs. However, the city's operating
balance should remain healthy so that direct debt-to-current
balance will remain at around two years over 2018-2020.

Fitch expects direct risk to increase significantly to about
TRY20 billion at end- 2020 from TRY15 billion at end-2017, as the
city shifts its borrowing to more inter-company loans (from ISKI)
due to zero interest rates and netting this debt by means of
asset transfer than by cash.

Unhedged foreign currency-denominated debt as a share of total
debt declined to 80.4% in 2017 from 98% in 2016, which exposes
the city to significant foreign exchange risk. Euro-denominated
loans constitute 88% of the foreign-currency debt, with the
remainder being US dollar-denominated loans.

At end-2017, the Turkish lira depreciated by about 20% against
the euro and dollar, adding a TRY662.1 million cost to Istanbul's
budget. Fitch estimates that in a stress scenario of an annual
depreciation of the Turkish lira to euro by 30% in 2018-2020 and
an annual drop in tax revenue to below the national average will
cause debt ratios to deteriorate. Despite these adverse effects,
the operating balance should comfortably cover an increase in
debt, therefore keeping debt ratios in line with the 'BB' rating
category median. Nevertheless, the full impact on Istanbul's
credit profile depends on the extent of any macroeconomic
dislocation that accompanies such currency weakness, its impact
on tax revenue and operating performance.

The weighted maturity of Istanbul's foreign currency debt was six
years at end-2017, well above the city's expected debt payback
(direct debt/current balance) ratio of two years. This, together
with its amortising nature, the city's predictable and non-
seasonal monthly cash flows, several credit lines with state-
owned and commercial banks, mitigates short-term refinancing risk
and extends the debt servicing of the city's foreign currency
loans.

Economy (Strength / Stable): Istanbul is Turkey's main economic
hub, contributing on average 30.5% of the country's gross value
added in 2006-2014 (latest available statistics), with GDP per
capita of USD19,957 in 2014 far above the nation's average of
USD12,112 . This underpins the city's fiscal strength and ready
access to financial markets. Rapid urbanisation and continued
immigration flows challenge the city with a continued need for
infrastructure investments. In 2017, the population grew 1.5% yoy
to 15,029,231 inhabitants.

Management (Weakness/ Stable): Fitch changed the status of
management to weakness from stable following its negative trend.
This is based on weakened fiscal discipline following higher-
than-expected capex ahead of local elections in March 2019. This
caused the city's current balance coverage of capex to decline
below 50% to a low of 39.4% against Fitch's expectation of 52.8%
for 2017.

Although operating revenue growth at 12.3% yoy was largely in
line with Fitch's expectation, opex growth of 26.6% was higher
than its expectation of 20.8%. This led the operating margin to
decrease to 39.8% in 2017, versus the 43.9% expected by Fitch and
48.8% in 2015. As a result debt sustainability has deteriorated
to 2.1 years in 2017 from 1.6 years in 2016.

Institutional Framework (Weakness/ Stable): Istanbul'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, a weak financial
equalisation system and the evolving nature of the city's debt
management in comparison with their international peers.

RATING SENSITIVITIES

The rating of Istanbul is at the sovereign rating level. A
reduction of city's debt-to-current revenue below 60% on a
sustained basis, coupled with continued financial strength and
consistent management policies, could trigger a positive rating
action, provided there has been a sovereign rating upgrade.

A negative rating action on Turkey would be mirrored on
Istanbul's ratings. A sharp increase in Istanbul's direct debt-
to-current balance above four years, driven by capex and local
currency depreciation could also lead to a downgrade of the
city's Long Term IDRs.


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


CARILLION PLC: Talks on Sale of Remaining Contracts Ongoing
-----------------------------------------------------------
The Official Receiver provides an update on employment within the
Carillion group in liquidation.

A spokesperson for the Official Receiver said:

"Secure on-going employment has been confirmed for a further 101
members of staff who are transferring to new suppliers, taking
the total number of jobs saved to 11,739.

"Regrettably eight job losses are being announced and those
leaving the business this week will be provided with every
support to find new work by Jobcentre Plus' Rapid Response
Service.

"We continue to discuss with potential purchases for Carillion's
remaining contracts, as well as remain committed to engaging with
staff, elected employee representatives and unions as these
arrangements are confirmed."

Further information

* In total, to date 11,739 jobs (64% of the pre-liquidation
   workforce) have been saved and 2,340 (13%) jobs have been made
   redundant through the liquidation

* A further 1,121 employees have left the business during the
   liquidation through finding new work, retirement or for other
   reasons

* This information does not include jobs attached to contracts
   where an intention to purchase has been entered into but has
   not yet formally occurred

* Just under 3,000 employees are currently retained to enable
   Carillion to deliver the remaining services it is providing
   for public and private sector customers until decisions are
   taken to transfer or cease these contracts

Headquartered in Wolverhampton, United Kingdom, Carillion plc --
http://www.carillionplc.com/-- is an integrated support services
company.  The Company operates through four business segments:
Support services, Public Private Partnership projects, Middle
East construction services and Construction services (excluding
the Middle East).


CHARTER MORTGAGE 2018-1: Moody's Rates Class X Notes 'B1'
---------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to Notes issued by Charter Mortgage Funding 2018-1
plc:

GBP 261.690 M Class A Mortgage Backed Floating Rate Notes due
June 2055, Definitive Rating Assigned Aaa (sf)

GBP 7.150 M Class B Mortgage Backed Floating Rate Notes due June
2055, Definitive Rating Assigned Aa1 (sf)

GBP 7.150 M Class C Mortgage Backed Floating Rate Notes due June
2055, Definitive Rating Assigned A1 (sf)

GBP 7.150 M Class D Mortgage Backed Floating Rate Notes due June
2055, Definitive Rating Assigned Baa1 (sf)

GBP 2.860 M Class E Mortgage Backed Floating Rate Notes due June
2055, Definitive Rating Assigned Ba1 (sf)

GBP 12.870 M Class X Mortgage Backed Floating Rate Notes due June
2055, Definitive Rating Assigned B1 (sf)

Moody's has not assigned ratings to the RC1 Residual Certificates
due June 2055 and RC2 Residual Certificates due June 2055.

The portfolio backing this transaction consists of first ranking
prime mortgage loans advanced to prime borrowers and secured by
properties located in England, Wales and Scotland which were
originated by Charter Court Financial Services Limited, and
subsequently sold to Charter Mortgages Limited.

On the closing date Charter Mortgages Limited (not rated) sold
the portfolio to Charter Mortgage Funding 2018-1 plc.

Moody's assigned provisional ratings to the Notes on 17 May 2018.

RATINGS RATIONALE

The rating takes into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 1.3% and the MILAN required credit
enhancement of 9.0% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

The portfolio expected loss is 1.3% which is marginally higher
than other comparable prime transactions in the UK mainly due to:
(i) the originators' limited historical performance, (ii) the
current macroeconomic environment in the UK, (iii) the low
weighted-average seasoning of the collateral of 1.01 years; and
(iv) benchmarking with similar UK prime transactions.

The portfolio MILAN CE is 9.0%: which is marginally higher than
other comparable prime transactions in the UK mainly due to: (i)
a weighted average current LTV of 70.7%; (ii) the originators'
limited historical performance (iii) benchmarking with other UK
prime transactions. In particular the portfolio has a relatively
high concentration 20.2% of "help-to-buy" loans versus other
prime portfolios.

At closing the mortgage pool balance consists of GBP 285.5
million of loans. Two amortising reserve funds have been funded.
The first is funded to 1.5% of the aggregate principal amount
outstanding of the Class A and B Notes; while the second is
funded to 1.5% of the Classes C, D and E Notes as of the closing
date. The second reserve fund benefits all the Notes, while the
first reserve fund is only available for the Class A and B Notes.
Moreover, there is a principal to pay interest mechanism.

Operational Risk Analysis: Charter Mortgages Limited (NR) is
acting as servicer. In order to mitigate the operational risk,
there is a back-up servicer facilitator, Intertrust Management
Limited (not rated), and Elavon Financial Services DAC (Aa2/P-1)
acting through its UK branch acts as an independent cash manager
from close. To ensure payment continuity over the transaction's
lifetime the transaction documents incorporate estimation
language whereby the cash manager can use the three most recent
servicer reports to determine the cash allocation in case no
servicer report is available.

Interest Rate Risk Analysis: The transaction benefits from a swap
provided by Natixis (A2/P-1, A1(cr)/P-1(cr)) acting through its
London Branch. Under the swap agreement during the term of the
life of the fixed rate loans the issuer pays a fixed swap rate
while on the other side the swap counterparty pays three-month
sterling Libor.

The definitive ratings address 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 at par on or before the rated final
legal maturity date for all rated notes. 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.

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.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 1.3% to 3.9% of current balance, and the MILAN
CE was increased from 9.0% to 14.4%, the model output indicates
that the Class A Notes would achieve Aa3 (sf) and Class B Notes
would achieve A2 (sf), assuming that all other factors remained
equal. 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.

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 downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.


FABB SOFAS: Enters Administration After Sale Attempts Fail
----------------------------------------------------------
Caroline Ramsey at Business-Sale reports that Fabb Sofas, the
furniture retailer founded in 2016 by billionaire Lord Kirkham,
has fallen into administration after failing to "meet payments as
they fall due".

The company was unsuccessful in finding a buyer and thus
appointed PwC as its administrators, Business-Sale relates.

According to Business-Sale, Toby Scott Underwood and Peter David
Dickens -- peter.d.dickens@pwc.com -- of PwC, who have been
appointed as the joint administrators of the company, stated:
"Despite achieving significant revenues in such a short period,
the business remained reliant on external funding to support
trading losses."


POUNDWORLD: Enters Administration, 5,100 Jobs at Risk
-----------------------------------------------------
Ben Woods at The Telegraph reports that Poundworld has plunged
into administration putting 5,100 jobs in jeopardy after efforts
to secure a last-minute buyer failed.

US private equity owner TPG has appointed Deloitte as
administrators, casting doubt over the future of the retailer's
335 stores, The Telegraph relates.

It comes after Little Chef owner Rcapital called time on talks to
buy the retailer as a solvent business over the weekend, The
Telegraph discloses.


* UK: ABI Rejects Government's Airline Insolvency Proposal
----------------------------------------------------------
International Travel & Health Insurance Journal reports that the
Association of British Insurers (ABI) has rejected proposals from
the UK Government for airline insolvency cover to be made a
mandatory element of standard travel insurance policies.

Responding to the findings and suggestions of the Airline
Insolvency Review from the Department of Transport, the ABI has
said that as travel insurance is already an incredibly
competitive and challenging marketplace in which to operate, the
addition of an extra compulsory level to standard cover - and all
the complexities and challenges that would come with it - would
be 'an unwelcome disruption'. Customer choice would be more
limited as a result, and take-up could also suffer as premiums
would need to go up, according to ITIJ.

The report relates that the issue, as far as the ABI is
concerned, is not the cover that it is available, as much as a
lack of awareness among the travelling public of what is already
on the market. While it rejects the suggestion of adding airline
insolvency cover to standard policies, it does support the
Review's assertion that ATOL protections be extended or
replicated across all airlines (rather than merely those that are
part of package holidays), the report notes. The ABI also
supports a wide-ranging analysis of where there are currently
gaps and overlaps in consumer protections.

"[While] we are fully supportive of measures that improve the
level of protection consumers have [while] travelling abroad, the
primary design of travel insurance is to cover the cost of
expensive medical treatment," the report quotes Charlie Campbell,
the ABI's Senior Travel Policy Adviser, as saying. "Introducing
mandatory airline insolvency cover ignores the real issue of lack
of awareness of cover already in place, [while] increasing costs
and confusion."



                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *