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

                           E U R O P E

           Friday, June 22, 2018, Vol. 19, No. 123


                            Headlines


C Y P R U S

QIWI PLC: S&P Assigns BB-/B Issuer Credit Ratings, Outlook Stable


F I N L A N D

TECNOTREE: Viking Acquisition Withdraws Bankruptcy Petition


F R A N C E

3AB OPTIQUE: Fitch Raises Credit Facility Rating to 'BB'
FINANCIERE IKKS: Fitch Cuts IDR to 'CC', Removes RWN


G R E E C E

ALPHA BANK: Moody's Assigns Caa1 LT Counterparty Risk Rating


I R E L A N D

ARBOUR CLO V: Moody's Assigns (P)B2 Rating to Class F Notes
ARBOUR CLO V: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
CVC CORDATUS III: Moody's Assigns B2 Rating to Class F Notes
CVC CORDATUS III: Fitch Assigns 'B-sf' Rating to Class F-R Notes
HALCYON LOAN 2018-1: Moody's Assigns (P)B2 Rating to Cl. F Notes


R U S S I A

VOZROZHDENIE BANK: S&P Alters 'B' ICR Watch to Developing


S P A I N

BBVA CONSUMER 2018-1: Moody's Assigns Ca Rating to Series Z Notes


S W E D E N

CYBAERO AB: Declared Bankrupt, Shares Trading Halted


S W I T Z E R L A N D

UNILABS DIAGNOSTICS: Moody's Rates New EUR250M Term Loan 'B1'


U N I T E D   K I N G D O M

KEMBLE WATER: Fitch Puts 'BB-' IDR on Rating Watch Negative
MINISCOFF LTD: Enters Liquidation, Buyer Sought for Assets
NEWDAY FUNDING 2018-1: Fitch Rates Class F Notes 'B(EXP)sf'
POUNDWORLD: Commences Closing Down Sales, Hopes to Find Buyer
PRESCOTT & CONRAN: Enters Administration, 168+ Jobs at Risk


X X X X X X X X

* BOOK REVIEW: Bankruptcy Crimes


                            *********



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C Y P R U S
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QIWI PLC: S&P Assigns BB-/B Issuer Credit Ratings, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings said that it had assigned its 'BB-/B' long and
short-term issuer credit ratings to Cyprus-based QIWI PLC. The
outlook is stable.

S&P said, "The ratings reflect our view of the QIWI group's
business concentration on the Russian market, existing regulatory
risks, and potentially higher earnings volatility than peers'. In
our opinion, these weaknesses are partly mitigated by the group's
minimal financial risk profile, relatively stable market position
and product diversity its operating segment, the steadily
increasing demand for noncash payments in Russia, and the group's
relatively strong profitability."

QIWI PLC is the holding company. Its major operating subsidiaries
are QIWI Bank JSC, QIWI JSC, and QIWI Payments Services Provider
Ltd. QIWI focuses on providing payment and money remittances
services, predominantly in Russia and some other countries in the
Commonwealth of Independent States (CIS). QIWI also issues
payment-by-installment cards under the "Sovest" brand, through
QIWI Bank, and provides financial services to small and midsize
enterprises through the joint venture "Tochka" with Otkritie
Bank.

Stability and the recurring nature of cash-flow generation is an
important rating factor for QIWI. In 2017, the group received
around 90% of revenues from its payment services business.
Revenues from the recently launched projects "Sovest" and
"Tochka" were around 3% for each. S&P expects the proportion of
revenues from the payment services business segment will dominate
in the coming years, though.

Total gross revenues increased by a strong 17% in 2017 to reach
Russian ruble (RUB) 20.9 billion ($363 million). QIWI's payment
business recorded RUB18.6 billion of revenues in 2017, a 14%
increase over the RUB16.3 billion in 2016. This owed mainly to
growth in payment volumes and yields in the money remittances and
e-commerce categories, but was tempered by a decrease in
financial services and telecom. S&P expects that the group will
be able to maintain its revenue growth at about 20% in 2018 and
about 16%-18% in 2019-2020, benefiting from increasing demand for
noncash payments in Russia and the rest of the CIS, as well as
the entrance into new segments and niches, such as the sharing
economy, betting, and self-employed.

S&P's assessment of the group's business risk profile is also
affected by current regulatory risks related to QIWI Bank and
evolving legislative initiatives related to a potential increase
in taxation and additional regulation of e-commerce, peer-to-peer
money transfers, and the self-employed sector.

The group does not have any significant debt outstanding at this
time, other than interbank debt with short maturities. As of Dec.
31, 2017, its liabilities consisted mostly of payables to
merchants (47% of total liabilities), deposits received from
individual customers or balances of cash on prepaid QIWI Wallets
(24%), and deposits received from agents in advance for payments
made through the kiosks (18%). These liabilities are mainly
predeposited customer funds used for payment and money transfer
services. On the assets side, most of the funds are placed in
corresponding accounts and short-term deposits with the Central
Bank of Russia or large Russian and international banks, while
deposits received from agents are usually offset against future
payments processed through agents and are not expected to be
called by the agents.

S&P said, "Our assessment of the group's financial risk profile
as minimal is based on our view that QIWI will maintain zero or
minimal debt within our 2018-2019 forecast horizon. At the same
time, we understand that if the group is not able to realize its
strategy of transforming Sovest from QIWI Bank into a broker-like
multi-banking model, or (in case of any delay) the project will
likely require additional external funding. That, in turn, might
lead to volatility in its ratios, given that the target debt
level is not constrained by QIWI's current financial policy.

"We apply a negative adjustment for our comparable ratings
analysis for QIWI. In our view, compared with its peers that we
rate, QIWI bears some additional risks that might cause
potentially higher earnings or leverage volatility for QIWI. We
compare QIWI with a wide range of companies, including online
payment systems like PayPal Holdings; money transfers and
processing companies Credit Union Payment Center, Western Union
Company, MoneyGram International; payment servicers like Wex
Inc.; and technology companies like Paysafe.

"QIWI is exposed to credit risks associated with its Sovest
project, a risk its peers do not share. Additionally, we
understand that QIWI Bank is an integral part of the group. The
bank is a regulated entity, which has to comply with regulatory
requirements. While QIWI Bank's tier 1 capital ratio was a
comfortable 17.9% as of May 1, 2018 (minimal requirement is 8%),
it is still somewhat below the ratio we observe among those peers
we rate that also have regulatory entities in their structures.
We therefore highlight the risk that the regulator could
theoretically restrict dividends or other cash flows from the
bank to the holding company.

"The stable outlook reflects our opinion that the QIWI group
should be able to maintain its competitive position and resilient
financial risk profile in the next 12-18 months, despite
increasing competition and still challenging operating conditions
in the region.

"We could consider taking a negative rating action over the next
12-18 months if, contrary to our expectations, QIWI's operating
conditions lead to a material decline in revenues and its
profitability weakens substantially, or if the regulatory
environment changes in an unfavorable way. We could also lower
the rating in the unlikely event that QIWI raised a significant
amount of debt, such that its debt to EBITDA exceeded 2x.

"We do not currently view a positive rating action as likely,
given QIWI's high business concentration in Russia and the rest
of the CIS, increasing competition, and existing regulatory
risks. However, we could raise the rating if the group
successfully transforms Sovest, thus reducing risks of increasing
leverage, and its fulfills and sustains its financial policy of
maintaining low to minimal debt."


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F I N L A N D
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TECNOTREE: Viking Acquisition Withdraws Bankruptcy Petition
-----------------------------------------------------------
Telecompaper reports that Finnish communications software
provider Tecnotree said in a very brief statement that it has
been informed that Viking Acquisitions has cancelled its filing
for Tecnotree's bankruptcy at Espoo District Court.

The previous day, Tecnotree had called the filing unfounded, as
it had by then paid the debt that formed the basis of Viking's
application, Telecompaper relates.

In March, Viking announced a voluntary EUR0.10 per share public
cash tender offer for the outstanding shares in Tecnotree, but
the bid missed its 90% take-up target, reaching only
approximately 88%, Telecompaper recounts.  Subsequently,
shareholders at Tecnotree's AGM voted against a motion to elect
Viking nominees to the Tecnotree board of directors, Telecompaper
discloses.


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F R A N C E
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3AB OPTIQUE: Fitch Raises Credit Facility Rating to 'BB'
--------------------------------------------------------
Fitch Ratings has resolved the Rating Watch on the issuance
ratings of various speculative grade EMEA corporates.

KEY RATING DRIVERS

The rating actions reflect the implementation of Fitch's
"Country-Specific Treatment of Recovery Ratings" methodology
dated April 16, 2018.

FULL LIST OF RATING ACTIONS

Fitch has taken the following rating actions:

3AB Optique Developpement S.A.S

  - Senior secured revolving credit facility rating upgraded to
'BB'/'RR1'/'100%' from 'BB-'/'RR2'; removed from Rating Watch
Positive (RWP)

Crystal Almond S.a.r.l.

  - Senior secured long-term rating downgraded to 'B-
'/'RR4'/'50%' from 'B'/'RR3'; removed from Rating Watch Negative
(RWN)

Picard Groupe SAS

  - Senior secured long-term rating of the EUR30 million Floating
revolving credit facility upgraded to 'BB'/'RR1'/'100%' from 'BB-
'/'RR2'; removed from RWP

Telenet Finance Luxembourg Notes S.a.r.l. / Telenet Finance VI
Luxembourg / Telenet Financing USD LLC / Telenet International
Finance Sarl (Telenet)

  - Senior secured long-term rating upgraded to 'BB+'/'RR1' from
'BB'/'RR2'; removed from RWP

UPC Broadband Holding B.V. / UPC Financing Partnership / UPCB
Finance IV Limited / UPCB Finance VII Limited (UPC)

  - Senior secured long-term rating upgraded to 'BB+'/'RR2' from
'BB'/'RR3'; removed from RWP

Wind Tre SpA (Wind Tre)

  - Senior secured long-term rating downgraded to 'BB-
'/'RR3'/'70%' from 'BB'/'RR2'; removed from RWN


FINANCIERE IKKS: Fitch Cuts IDR to 'CC', Removes RWN
----------------------------------------------------
Fitch has downgraded the Issuer Default Rating (IDR) of
Financiere IKKS S.A.S. to 'CC' from 'CCC' and has removed the
Rating Watch Negative (RWN). Fitch has also downgraded the super
senior revolving credit facility (RCF) to 'CCC+'/'RR1'/100% from
'B-'/ 'RR2'/90% issued by IKKS Group S.A.S and removed the Rating
Watch Evolving, and Fitch has downgraded the senior secured notes
issued by HoldIKKS S.A.S. to 'CC'/'RR4'/43% from 'CCC'/'RR4'/50%
and removed the Rating Watch Negative.

The downgrade to 'CC' from 'CCC' (RWN) reflects two successive
breaches of covenants in December 2017 and March 2018, combined
with a worsening liquidity position (the EUR33 million revolving
credit facility remained fully drawn at end-March 2018). IKKS met
its January 2018 coupon payment, but Fitch sees increasing risk
to its ability to meet its next coupon payments and a material
threat of a liquidity shortage from September 2018, if no new
funding is agreed upon. Given the ongoing lengthy negotiations
with lenders of the RCF, Fitch assumes that shareholders may not
be willing to provide any form of financial support.

The ratings were put on Rating Watch Negative in December 2017,
to reflect an unclear liquidity situation after the January 2018
coupon payment, given IKKS's weaker cash-flow generation and
fully exhausted debt funding. The rating of the super senior
revolving credit facility was put on Rating Watch Evolving in
March 2018 following Fitch's release of the "Exposure Draft on
the Country-Specific Treatments of Recovery Ratings".

KEY RATING DRIVERS

Unfunded Liquidity: IKKS fully drew its RCF of EUR33 million
leaving no material leeway for additional liquidity at end-March
2018. Fitch believes that IKKS will have sufficient funds to meet
the next coupon payment on the notes in July 2018 for
approximately EUR11 million given the ending cash on balance
sheet of EUR22 million at end-March 2018. However, IKKS's
liquidity over the next six months is uncertain, and Fitch
believes that there is a material threat of a liquidity shortage
from September 2018. IKKS's working capital flow fully relies on
its cash generation capacity and its factoring line for a maximum
of EUR10 million.

Lengthy Negotiations With Lenders: IKKS breached the new
covenants in December 2017 with 7.13x total net debt/EBITDA
versus a 6.6x threshold, and again in March 2018 with 9.28x
versus 4.01x threshold. Fitch believes that the acceleration
repayment risk of the RCF is low given that RCF is for only EUR33
million and is expected to be fully recovered in a going-concern
scenario. However, Fitch believes that the risk of delaying the
next coupon is high, as the company will want to preserve
liquidity if no agreement is found by July 2018.

Unclear Prospects of Operational Turnaround: Fitch expects no
sustained and meaningful improvement in sales due to uncertainty
in the sector and dilution of EBITDA since 2016. Fitch
anticipates, however, seeing some trading consolidation with the
contribution of the new chief designer, whose impact on the
success of the next collection will become visible in 2018 (+8.5%
revenue in March 2018 versus March 2017) and from the
contribution from the Outlet business. Fitch also bases its Fitch
case on the expectation of remedial action implemented by the
management to halt the negative operating trend.

Operating Profitability to Remain Low: Profitability will
probably remain at historically low levels of 11%-12% (EBITDA
margin) held back by a higher share of older collections after
the addition of the Outlet business in early 2017, and slow
reconnection with the customer base.

Consistent Negative Free Cash Flows: Weak funds from operations
(FFO) in combination with a lower level of capex, estimated at
EUR15 million per year, will result in persistently negative free
cash flows, requiring a continuous reliance on external funding.
Trade working capital outflow of EUR15 million in 2017, which is
primarily due to the addition of the Outlet business materially
impacted the FCF profile (FCF margin around minus 8.2% in
December 2017). From 2018, Fitch anticipates the volatility on
the trade working-capital side will subside after adjusting to
the new enlarged distribution platform.

Unsustainable Leverage: The current debt structure remains no
longer appropriate, leading to an FFO adjusted leverage of more
than 10.0x, or a 'CCC' category type of financial risk. In the
absence of a marked operating turnaround or a reduction of debt,
coupled with an equity injection from the sponsor, Fitch sees no
room for a medium-term improvement back to the performing levels
of less than 7.0x on an FFO adjusted level.

DERIVATION SUMMARY

Similarly to other European clothing retailers including New Look
Retail Group Ltd (CC) and Novartex S.A. (CCC), IKKS has been
struggling operationally, which is reflected in declining sales,
EBITDA and FFO margins, and excessive financial leverage at
around 11.4x (2017) on an FFO adjusted basis. The reasons for the
operating underperformance for all three companies ultimately lie
in the structural changes in non-food retail, with uncompetitive
offerings eroding the customer base, even in the more
conservative, and therefore traditionally more stable premium
clothing segment. While IKKS generates substantially lower sales
than New Look, both groups are struggling in a fierce competitive
environment and against low-cost pure online players, although
Fitch believes that IKKS is slightly less exposed to low-cost
competition due to its higher-value end products.

KEY ASSUMPTIONS

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

  - Low single digit sales growth in 2018 and thereafter (around
1%)

  - EBITDA margin at 11.0% (creation costs of EUR5-6 million are
included)

  - Restricted cash of EUR15 million per year for operating
purposes

  - Capex scaled back to EUR13 million a year, creation costs of
EUR6 million are excluded

  - Trade working capital outflow of EUR10 million in 2018

  - Factoring increases by EUR3 million in 2018 and EUR2 million
thereafter

RECOVERY ANALYSIS

The recovery analysis is based on the going-concern approach
given IKKS's asset-light business model. As a starting point
Fitch uses its estimate for a post-distress EBITDA of EUR41
million (including creation costs of around EUR6.1 million),
serving as a cash-flow proxy post distress, at which level IKKS
would operate around break-even on the FCF level. Fitch applies a
distressed EV/EBITDA multiple of 5.0x, which reflects the still
intact brand equity, the quality of the store network, as well as
its multiple store formats and distribution channels.

After deducting the customary administrative charges of 10%,
Fitch estimates the lenders of the super senior RCF would recover
in a hypothetical distress situation up to 100% of the claims.
This would lead to an RCF instrument rating of 'CCC+'/'RR1'/100%,
with a three-notch uplift from the IDR.

After considering super senior creditors claims, Fitch estimates
that holders of the senior secured notes, which rank second on
enforcement, will recover up to 43% of the claims, leading to an
instrument rating of 'CC'/'RR4'/43%.

RATING SENSITIVITIES

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

  - Additional financial support from shareholders or from third
parties in order to comply with covenants

  - Successful funding with new and stable capital structure to
allow more time for strategy and execution

  - Evidence of revenue pick up, stabilisation of like-for-like
revenues, margin stabilisation, and stable FFO adjusted leverage

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

  - Postponing or failure to pay the next coupon in July 2018

  - Acceleration of the RCF repayment leading to cross default
and repayment of the notes

  - Failure to renegotiate or refinance the RCF, leading to a
standstill, following the non-payment of the July coupon on 15
July, or announcement of a distressed debt exchange.

LIQUIDITY

Unfunded Liquidity: At end-March 2018 IKKS had fully utilised its
RCF of EUR33 million and it is now completely reliant on
factoring as its only source of funding. IKKS paid its January
2018 coupon (around EUR11 million) and has sufficient funds to
meet short-term liquidity requirements, including approximately
EUR11 million of interest payable on 15 July 2018. IKKS'
liquidity over the next three months is uncertain and Fitch
believes that there is a material threat of a liquidity shortage
from September 2018 (when IKKS builds up inventory, the highest
period of liquidity need).

Fitch further includes the utilisation of receivables factoring
of EUR3 million in 2018, followed by a further increase of EUR2
million thereafter. This is in accordance with Fitch's treatment
of receivables factoring.

FULL LIST OF RATING ACTIONS

Financiere IKKS SAS

  - Issuer Default Rating downgraded to 'CC' from 'CCC' Rating
Watch Negative

HoldIKKS S.A.S

  - Senior secured notes; downgraded to 'CC'/'RR4'/43% from
'CCC'/'RR4'/50% Rating Watch Negative

IKKS Group S.A.S

  - Revolving credit facility; downgraded to 'CCC'/'RR1'/100%
from 'B-'/'RR2'/90% Rating Watch Evolving


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G R E E C E
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ALPHA BANK: Moody's Assigns Caa1 LT Counterparty Risk Rating
------------------------------------------------------------
Moody's Investors Service has assigned Counterparty Risk Ratings
to 12 rated banks in Bulgaria, Cyprus and Greece.

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. For most of these
banks, Moody's considers the likelihood of government support for
CRR liabilities to be low, resulting in no rating uplift from
their respective adjusted BCAs, considering the current European
Union's bank recovery and resolution directive (BRRD) with legal
restrictions on many forms of government support. For First
Investment Bank in Bulgaria, Moody's considers the likelihood of
government support for CRR liabilities to be moderate resulting
in one notch of support in the bank's CRR. The moderate
government support assumption reflects First Investment Bank's
position as the third largest bank and the track record of
support.

Although these banks are likely to have more than a nominal
volume of CRR liabilities at failure, this has no impact on the
ratings of some of these banks because the significant level of
subordination below the CRR liabilities already provides the
maximum amount of uplift allowed under Moody's rating
methodology.

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.

Cyprus Cooperative Bank's long-term CRR is placed under review,
direction uncertain. The review will focus on the outcome of the
process launched by the bank, on March 19, to find investors
willing to either subscribe additional capital, or to buy its
assets and liabilities.

What Could Change the Rating Up/Down

The CRR may be upgraded if there is a strengthening in banks'
operating environment or financial fundamentals in a way that
will lead to an upgrade of their adjusted BCA or if Moody's
revises upwards its assessment of authorities' willingness to
provide support or if Moody's revises upwards its assessment of
the government's capacity to provide support, captured by an
upgrade in the sovereign ratings or related ceilings.

The CRR may be downgraded if there is a weakening in banks'
operating environment or financial fundamentals in a way that
will lead to a downgrade of their adjusted BCA or if Moody's
revises downwards its assessment of authorities' willingness to
provide support or if Moody's revises downwards its assessment of
the government's capacity to provide support, captured by a
downgrade in the sovereign ratings or related ceilings.

Finally, any change in these institutions' liability structure
that may impact Moody's LGF analysis may affect the positioning
of the CRR. For example, the CRR may be downgraded if an
institution's liability structure changes in a way that
negatively affects the amount of subordinated instruments below
these CRR liabilities.

The principal methodology used in these ratings was Banks
published 6 June 2018.

LIST OF AFFECTED RATINGS

GREECE

Issuer: Alpha Bank AE

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa1

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

Issuer: Attica Bank S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa2

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

Issuer: Eurobank Ergasias S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa1

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

Issuer: National Bank of Greece S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa1

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

Issuer: Piraeus Bank S.A.

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa1

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

CYPRUS

Issuer: Bank of Cyprus Public Company Limited

Assignments:

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

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

Issuer: Cyprus Cooperative Bank Ltd

Assignments:

Long-term Counterparty Risk Rating (Local and Foreign Currency),
Assigned Caa2, Placed Under Review Direction Uncertain

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

Issuer: Hellenic Bank Public Company Ltd

Assignments:

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

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

Issuer: RCB Bank Ltd.

Assignments:

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

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

BULGARIA

Issuer: First Investment Bank AD

Assignments:

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

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

Issuer: Municipal Bank AD

Assignments:

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

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

Issuer: Raiffeisenbank (Bulgaria) EAD

Assignments:

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

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


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I R E L A N D
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ARBOUR CLO V: Moody's Assigns (P)B2 Rating to Class F Notes
-----------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
eight classes of notes to be issued by Arbour CLO V DAC:

EUR 1,750,000 Class X Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 248,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 20,000,000 Class B-1 Senior Secured Fixed Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 22,000,000 Class B-2 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 26,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR 21,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa2 (sf)

EUR 23,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR 12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B2 (sf)

RATINGS RATIONALE

Moody's ratings of the Notes addresses the expected loss posed to
noteholders. The rating reflects the risks due to defaults on the
underlying portfolio of assets, the transaction's legal
structure, and the characteristics of the underlying assets.

Arbour V is a managed cash flow CLO. The issued notes are
collateralized primarily by broadly syndicated first lien senior
secured corporate loans. At least 90% of the portfolio must
consist of senior secured loans, senior secured bonds and
eligible investments, and up to 10% of the portfolio may consist
of second lien loans, unsecured loans, mezzanine obligations and
high yield bonds.

Oaktree Capital Management (UK) LLP manages the CLO. It directs
the selection, acquisition, and disposition of collateral on
behalf of the Issuer. After the reinvestment period, which ends
in March 2023 the Manager may reinvest unscheduled principal
payments and proceeds from sales of credit risk and credit
improved obligations, subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 39.1m of subordinated notes which will not
be rated.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
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.

The key model inputs Moody's used in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par and principal proceeds balance: EUR400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2670

Weighted Average Spread (WAS): 3.45%

Weighted Average Recovery Rate (WARR): 42.0%

Weighted Average Life (WAL): 8.5 years

Loss and Cash Flow Analysis:

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
an additional sensitivity analysis, which was a component in
determining the 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 the Notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds
to higher expected losses), assuming that all other factors are
held equal:

Percentage Change in WARF -- increase of 15% (from 2670 to 3071)

Rating 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 Fixed Rate Notes: -2

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 2670 to 3471)

Rating 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 Fixed Rate Notes: -3

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -2


ARBOUR CLO V: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
---------------------------------------------------------------
Fitch Ratings has assigned Arbour V CLO DAC notes expected
ratings, as follows:

Class X: 'AAA(EXP)sf'; Outlook Stable

Class A: 'AAA(EXP)sf'; Outlook Stable

Class B-1: 'AA(EXP)sf'; Outlook Stable

Class B-2: 'AA(EXP)sf'; Outlook Stable

Class C: 'A(EXP)sf'; Outlook Stable

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

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

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

Subordinated Notes: Not Rated (EXP)

Arbour V CLO DAC is a cash flow collateralised loan obligation
(CLO). Net proceeds from the notes will be used used to purchase
a portfolio of EUR400 million of mostly European leveraged loans
and bonds. The portfolio is actively managed by Oaktree Capital
Management UK (LLP). The CLO envisages a 4.5 year reinvestment
period and an 8.5 year weighted average life (WAL).

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

KEY RATING DRIVERS

Asset Quality: Fitch considers the average credit quality of
obligors to be in the 'B' range. The Fitch-weighted average
rating factor (WARF) of the identified portfolio is 31.59 below
the indicative maximum covenant WARF of 32 for assigning expected
ratings.

Asset Security: At least 90% of the portfolio comprises senior
secured obligations. Fitch views the recovery prospects for these
assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-weighted average recovery rate (WARR)
of the current portfolio is 66.49 above the indicative maximum
covenant WARR of 65 for assigning expected ratings.

Portfolio Composition: The covenanted maximum exposure to the top
10 obligors for assigning the expected ratings is 23% 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.

Adverse Selection and Portfolio Management: The transaction
features a 4.5 year reinvestment period and includes reinvestment
criteria similar to other European transactions. Fitch's 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.

A minimum of 5% and up to 15% of the portfolio can be invested in
fixed-rate assets, while fixed-rate liabilities represent 5% of
the target par. Fitch modelled both 5% and 15% fixed-rate buckets
and found that the rated notes can withstand the interest rate
mismatch associated with each scenario.

Limited FX Risk: The transaction is allowed to invest up to 20%
of the portfolio in non-euro-denominated assets, provided these
are hedged with perfect asset swaps within six months of
purchase. Unhedged obligations are limited at 2.5% and subject to
principal haircuts. Unhedged obligations can only be purchased if
the transaction is above the reinvestment target par.

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 three 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.


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

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

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

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

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

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

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

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

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

EUR 13,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2032, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the notes address the expected loss
posed to noteholders. The definitive ratings reflect the risks
due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets, the relevant portfolio tests and covenants as
well as the transaction's capital and legal structure.
Furthermore, Moody's is of the opinion that the collateral
manager, CVC Credit Partners Group Limited ("CVC"), has
sufficient experience and operational capacity and is capable of
managing this CLO.

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

CVC Cordatus III is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, mezzanine obligations and high
yield bonds. The underlying portfolio is expected to be 100%
ramped as of the second refinancing date.

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

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

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

Par Amount: EUR 436,500,000

Diversity Score: 43

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 3.55%

Weighted Average Coupon (WAC): 4.25%

Weighted Average Recovery Rate (WARR): 43.5%

Weighted Average Life (WAL): 8.8 years

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum of 5% of the pool would be domiciled in
countries with local or foreign currency country ceiling of A1 to
A3 and a maximum 5% of the pool would be domiciled in countries
with local or foreign currency country ceiling of Baa1 to Baa3.
The remainder of the pool will be domiciled in countries which
currently have a local or foreign currency country ceiling of Aaa
or Aa1 to Aa3. Given this portfolio composition, the model was
run with different target par amounts depending on the target
rating of each class as further described in the methodology. The
portfolio haircuts are a function of the exposure size to
peripheral countries and the target ratings of the rated notes
and amount to 0.75% for the Class X, Class A-1 and Class A-2
notes, 0.5% for the Class B-1 and Class B-2 notes, 0.375% for the
Class C, and 0% for the Class D, Class E and Class F notes.

Stress Scenarios:

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

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

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: 0

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

Ratings Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: -1

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

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

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -3

Class D Senior Secured Deferrable Floating Rate Notes: -3

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -3


CVC CORDATUS III: Fitch Assigns 'B-sf' Rating to Class F-R Notes
----------------------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund III Designated
Activity Company reissuance notes final ratings, as follows:

EUR2,000,000,000 Class X: 'AAAsf'; Outlook Stable

EUR250,500,000 Class A-1-RR: 'AAAsf'; Outlook Stable

EUR20,000,000 Class A-2-RR: 'AAAsf'; Outlook Stable

EUR19,000,000 Class B-1-RR: 'AAsf'; Outlook Stable

EUR16,000,000 Class B-2-RR: 'AAsf'; Outlook Stable

EUR32,000,000 Class C-RR: 'Asf'; Outlook Stable

EUR28,000,000 Class D-R: 'BBB-sf'; Outlook Stable

EUR27,500,000 Class E-R: 'BBsf'; Outlook Stable

EUR13,000,000 Class F-R: 'B-sf'; Outlook Stable

EUR47,900,000 Subordinated: not rated

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

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
category. The Fitch weighted average rating factor (WARF) of the
identified portfolio is 32.92.

High Recovery Expectations

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

Diversified Asset Portfolio

The transaction includes two Fitch matrices that the manager may
choose from, corresponding to the top 10 obligor limit at 18% and
26.5%. The manager is allowed to interpolate between these
matrices with respect to the 10 obligor limit.

Partial Interest Rate Hedge

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

Adverse Selection and Portfolio Management

The transaction is governed by collateral quality and portfolio
profile tests, which limit potential adverse selection by the
manager. These limitations are based, among others, on Fitch
ratings and recovery ratings.

Unhedged Non-Euro Assets Exposure

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

TRANSACTION SUMMARY

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

RATING SENSITIVITIES

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

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

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

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

DATA ADEQUACY

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

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


HALCYON LOAN 2018-1: Moody's Assigns (P)B2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Halcyon
Loan Advisors European Funding 2018-1 Designated Activity
Company:

EUR 206,500,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 9,500,000 Class A-2 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 16,500,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 15,000,000 Class B-2 Senior Secured Fixed Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR 25,250,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR 22,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa3 (sf)

EUR 20,250,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR 10,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by 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, Halcyon Loan
Advisors (UK) LLP ("Halcyon"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Halcyon Loan Advisors European Funding 2018-1 Designated Activity
Company is a managed cash flow CLO. At least 90% of the portfolio
must consist of senior secured obligations and up to 10% of the
portfolio may consist of senior unsecured obligations, second-
lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 90% ramped up as of the closing date
and to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe. The remainder of the portfolio will
be acquired during the six month ramp-up period in compliance
with the portfolio guidelines.

Halcyon 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 obligations or credit improved obligations, and are subject
to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 35,900,000 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. Halcyon'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 350,000,000

Diversity Score: 44

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.40%

Weighted Average Recovery Rate (WARR): 43%

Weighted Average Life (WAL): 8.5 years

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with local currency country
risk ceiling rating of A1 or below cannot exceed 10%, with
exposures to countries local currency country risk ceiling rating
of Baa1 to Baa3 further limited to 5%. Following the effective
date, and given these portfolio constraints and the current
sovereign ratings of eligible countries, the total exposure to
countries with a LCC of A1 or below may not exceed 10% of the
total portfolio. As a worst case scenario, a maximum 5% of the
pool would be domiciled in countries with LCC of A3 and 5% in
countries with LCC of Baa3. The remainder of the pool will be
domiciled in countries which currently have a LCC of Aa3 and
above. Given this portfolio composition, the model was run with
different target par amounts depending on the target rating of
each class of notes as further described in the methodology. The
portfolio haircuts are a function of the exposure size to
countries with a LCC of A1 or below and the target ratings of the
rated notes and amount to 0.75% for the Class A-1 and A-2 notes,
0.50% for the Class B-1 and B-2 notes, 0.375% for the Class C
notes and 0% for Classes D, E and F.

Stress Scenarios:

Together with the set of modeling assumptions, 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.

Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

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

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

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

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

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -3


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


VOZROZHDENIE BANK: S&P Alters 'B' ICR Watch to Developing
---------------------------------------------------------
S&P Global Ratings revised the CreditWatch implications on its
'B' long-term issuer credit rating on Russia-based Vozrozhdenie
Bank to developing from negative.

S&P originally placed the 'B' rating on CreditWatch with negative
implications on Dec. 19, 2017.

At the same time, S&P affirmed its 'B' short-term issuer credit
rating on the bank.

The rating actions follow the announcement by VTB Bank's CEO that
the bank is interested in acquiring control of Vozrozhdenie Bank,
subject to the results of ongoing due diligence and negotiations
with representatives of Vozrozhdenie Bank's ultimate majority
owner. S&P said, "We see potential ratings upside for
Vozrozhdenie Bank if the deal materializes, given our view that
VTB Bank (BBB-/Stable/A-3) has much stronger creditworthiness
than Vozrozhdenie Bank. At the same time, we also see potential
downside risks if the deal does not proceed, since this may put
additional pressure on Vozrozhdenie Bank's franchise and cause
client fund outflows, in our opinion. As we understand, there are
not any binding agreements related to the deal at the moment."

S&P said, "We currently assess Vozrozhdenie Bank's stand-alone
credit profile at 'b'. This reflects the bank's historically
strong franchise in the wealthy Moscow region, which suffered
somewhat during the period of stress at the level of shareholders
over the last 12 months, but remains quite significant in terms
of market shares. As of May 1, 2018, the bank had a market share
in the Moscow region of 2.8% by loans to individuals and 7.2% by
retail customer deposits. We currently estimate the level of
loans to companies linked with the Ananiev brothers (former
controlling shareholders who are now required by the regulator to
sell their stake) at around 5.4% of total loans. We expect this
share will likely decrease to around 3.9% in the next several
months.

"We also note that the bank has managed to substitute the outflow
of corporate deposits during an exceptionally difficult period at
the end of 2017 with retail deposits. Overall, the level of
client funds decreased by approximately 2% by June 1, 2018,
compared to the level a year ago. We currently estimate that
available liquid assets cover short-term customer deposits and
short-term wholesale funding by around 54%, which compares well
with local peers.

"The developing implications indicate that we may raise, lower,
or affirm the long-term rating on the bank upon receiving further
information. We aim to resolve the CreditWatch placement within
the next three months, once we have better clarity on the
evolution of Vozrozhdenie Bank's ownership structure.

"We could upgrade Vozrozhdenie Bank's rating if it was acquired
by VTB Bank and its new owner had long-term interest in
developing its business. For the positive rating action, we would
also need to see that Vozrozhdenie Bank's stand-alone
creditworthiness did not deteriorate.

"We could affirm our rating on Vozrozhdenie Bank within the next
three months if we did not obtain clarity regarding the new
ultimate owner, but considered that the bank is able to sustain
its business model and retain its client base while it looks for
a new strategic investor.

"We could lower the rating on Vozrozhdenie Bank in the next three
months if the deal were cancelled, and we observed deterioration
of its liquidity position and franchise triggered by the
prolonged period of uncertainty around the ownership structure."


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


BBVA CONSUMER 2018-1: Moody's Assigns Ca Rating to Series Z Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to Notes issued by BBVA CONSUMER AUTO 2018-1 FONDO DE
TITULIZACION:

EUR 728.0 million Series A Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned Aa1 (sf)

EUR 23.2 million Series B Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned A1 (sf)

EUR 32.8 million Series C Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned Baa1 (sf)

EUR 10.0 million Series D Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned Ba2 (sf)

EUR 6.0 million Series E Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned B3 (sf)

EUR 4.0 million Series Z Fixed Rate Asset Backed Notes due July
2031, Definitive Rating Assigned Ca (sf)

RATINGS RATIONALE

The transaction is a revolving cash securitisation of auto loans
extended to obligors in Spain by Banco Bilbao Vizcaya Argentaria,
S.A. (BBVA) (A3 SU/ A3(cr), A2 LT Bank Deposits) with the purpose
of financing new or used vehicles via car dealers
(prescriptores).

The revolving period lasts 1.5 years and ends on the payment date
falling in January 2020.

BBVA also acts as asset servicer, calculation agent, collection
and issuer account bank provider. The previous BBVA Consumo
transactions, which had a similar structure, are currently
performing in line with Moody's expectations.

The provisional portfolio of underlying assets consists of auto
loans originated in Spain, with fixed rates and a total
outstanding balance of approximately EUR919.1 million. The final
portfolio will be selected at random from the provisional
portfolio to match the final Note issuance amount.

As at May 21, 2018, the provisional pool cut had 101,709 loans
with a weighted average seasoning of 18.96 months. Loans are used
for the purpose of new (56.4%) or used (43.6%) car acquisition.
The majority of the loans 69.8% do not have any security over the
vehicle and hence the servicer cannot repossess it in order to
increase recoveries. The remaining 30.2% of the portfolio contain
a "reserva de dominio" clause, meaning that the vehicles can be
registered at the seller's option on the Registro de Bienes
Muebles, the Spanish moveable goods register. The transaction
benefits from credit strengths such as the granularity of the
portfolio, the excess spread-trapping mechanism through a 6
months artificial write off mechanism, the high average interest
rate of 7.6% and the financial strength and securitisation
experience of the originator. However, Moody's notes that the
transaction features some credit weaknesses such as high linkage
to BBVA. In addition, the revolving structure could increase
performance volatility of the underlying portfolio. Various
mitigants have been put in place in the transaction structure,
such as early amortisation triggers, strict substitution criteria
both on individual loan and portfolio level and eligibility
criteria for the portfolio. Commingling risk is partly mitigated
by the transfer of collections to the issuer account within two
days. If BBVA's long term deposit rating is downgraded below
Baa3, it will either transfer the issuer account to an eligible
entity or guarantee the obligations of BBVA.

Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of auto loans and the
eligibility criteria; (ii) historical performance provided on
BBVA's total book and past consumer loan ABS transactions; (iii)
the credit enhancement provided by subordination, excess spread
and the reserve fund; (iv) the revolving structure of the
transaction; (v) the liquidity support available in the
transaction by way of principal to pay interest; and (vi) the
overall legal and structural integrity of the transaction.

The public and political debate about the future of diesel
engines has heated up in recent months due to new proposals
restricting diesel cars in various metropolitan areas in Europe.
As a consequence, diesel cars have recently shown signs of
diminished attractiveness through declines in new car
registrations and a softening in the residual value premium of
diesel over petrol cars. Moody's is closely monitoring
developments, but at this time believes that these recent trends
are captured in current rating assumptions, i.e. recovery rates.

MAIN MODEL ASSUMPTIONS

Moody's determined a portfolio lifetime expected mean default
rate of 4.0%, expected recoveries of 35.0% and a portfolio credit
enhancement ("PCE") of 15.0% for both the current and substituted
portfolios of the issuer. The expected defaults and recoveries
capture Moody's expectations of performance considering the
current economic outlook, while the PCE captures the loss Moody's
expects the portfolio to suffer in the event of a severe
recession scenario. Expected defaults and PCE are parameters used
by Moody's to calibrate its lognormal portfolio loss distribution
curve and to associate a probability with each potential future
loss scenario in its ABSROM cash flow model to rate consumer ABS
transactions.

The portfolio expected mean default rate of 4.0% is lower than
the Spanish consumer loan transactions and is based on Moody's
assessment of the lifetime expectation for the pool taking into
account (i) historic performance of the loan book of the
originator, (ii) strict criteria requiring the long seasoning of
the loans during the revolving period, (iii) benchmark
transactions, and (iv) other qualitative considerations.

Portfolio expected recoveries of 35% are higher than Spanish
consumer loan average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i)
historic performance of the loan book of the originator, (ii)
benchmark transactions, and (iii) other qualitative
considerations such as quality of data provided and asset
security provisions.

The PCE of 15.0% is lower than other Spanish consumer loan peers
and is based on Moody's assessment of the pool taking into
account the relative ranking to originator peers in the Spanish
consumer loan market. The PCE of 15.0% results in an implied
coefficient of variation ("CoV") of 63.4%.

METHODOLOGY

The principal methodology used in these ratings was 'Moody's
Global Approach to Rating Auto Loan- and Lease-Backed ABS'
published in October 2016. P

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

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATINGS:

Factors or circumstances that could lead to an upgrade of the
ratings of the Notes would be (1) better than expected
performance of the underlying collateral; (2) significant
improvement in the credit quality of BBVA; or (3) a lowering of
Spain's sovereign risk leading to the removal of the local
currency ceiling cap. Factors or circumstances that could lead to
a downgrade of the ratings would be (1) worse than expected
performance of the underlying collateral; (2) deterioration in
the credit quality of BBVA; or (3) an increase in Spain's
sovereign risk.

LOSS AND CASH FLOW ANALYSIS:

Moody's used its cash flow model ABSROM as part of its
quantitative analysis of the transaction. ABSROM enables users to
model various features of a standard European ABS transaction -
including the specifics of the loss distribution of the assets,
their portfolio amortisation profile, yield as well as the
specific priority of payments, swaps and reserve funds on the
liability side of the ABS structure. The model is used to
represent the cash flows and determine the loss for each tranche.
The cash flow model evaluates all loss scenarios that are then
weighted considering the probabilities of the lognormal
distribution assumed for the portfolio loss rate. In each loss
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 loss scenario; and (ii)
the loss derived from the cash flow model in each loss scenario
for each tranche.

STRESS SCENARIOS:

As described, Moody's analysis encompasses the assessment of
stressed scenarios.

MOODY'S PARAMETER SENSITIVITIES

In rating auto loan ABS, the mean default rate and the recovery
rate are two key inputs that determine the transaction cash flows
in the cash flow model. Parameter sensitivities for this
transaction have been tested in the following manner: Moody's
tested nine scenarios derived from a combination of mean default
rate: 4.0% (base case), 5.0% (base case + 1.0%), 6.0% (base case
+ 2.0%) and recovery rate: 35.0% (base case), 30.0% (base case -
5.0%), 25.0% (base case - 10%). the model output indicated that
Class A would have achieved Aa1 output even if the cumulative
mean default probability (DP) had been as high as 6.0%, and the
recovery rate as low as 25.0% (all other factors being constant).

Parameter sensitivities provide a quantitative/model indicated
calculation of the number of notches that a Moody's rated
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. It is not intended to measure how the
rating of the security might migrate over time, but rather how
the initial model output for the Class A Notes might have
differed if the two parameters within a given sector that have
the greatest impact were varied.


===========
S W E D E N
===========


CYBAERO AB: Declared Bankrupt, Shares Trading Halted
----------------------------------------------------
CybAero AB on June 19 published a press release with information
that the Linkoeping's District Court has declared the company
bankrupt.

According to item 7.2.2 of Nasdaq First North Nordic Rulebook,
the Nasdaq Stockholm AB can make an administrative decision to
remove a company's financial instruments from trading on Nasdaq
First North if the company no longer meets the applicable
admission requirements, for example if the company is subject to
an insolvency procedure.

The trading in CybAero's shares, and related instruments, is to
cease with immediate effect.

Trading in the shares, and related instruments, is halted and
will not be resumed.


=====================
S W I T Z E R L A N D
=====================


UNILABS DIAGNOSTICS: Moody's Rates New EUR250M Term Loan 'B1'
-------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to a new
EUR250 million senior secured term loan B3 to be borrowed by
Unilabs Diagnostics AB, a wholly owned subsidiary of Unilabs
Subholding AB (Unilabs), a clinical laboratory services and
medical diagnostic imaging services network. Unilabs' other
ratings remain unchanged, namely, the B2 corporate family rating
(CFR), the B2-PD probability of default rating (PDR), the B1
rating of the senior secured facilities, including the EUR1,130
million term loan B2 and EUR200 million revolving credit facility
(RCF) both borrowed by Unilabs Diagnostics AB, and the Caa1
rating of the EUR405 million senior unsecured notes issued by
Unilabs. The outlook for all ratings is stable.

The rating action follows the company's announcement that it is
in advanced discussions to acquire a clinical laboratory services
network in a key existing market, and reflects Moody's
understanding that the new EUR250 million loan will not be
mutually interchangeable (fungible) with the outstanding EUR1,130
million term loan.

RATINGS RATIONALE

Unilabs' B2 corporate family rating (CFR) reflects: (1) the
company's good geographical diversification across different
regulatory regimes, which limits its exposure to adverse changes
in one particular regime; (2) leading positions in several of its
key markets with good underlying fundamental trends that support
volumes of clinical laboratory tests; (3) good execution track
record in terms of delivering cost efficiencies; and (4) good
volumes expected in the Nordics' imaging business.

Conversely, the CFR reflects (1) the company's high leverage, as
measured by Moody's-adjusted debt/EBITDA, of around 6.5x at
closing of the recently announced financing based on the last
twelve months ending March 31, 2018 on a pro-forma basis; (2)
Moody's expectation that Unilabs will continue over time to
acquire companies in the clinical laboratory services industry,
which may slow down deleveraging; (3) remaining risk of potential
tariff cuts in key markets, in common with peers, which drives
the need to grow externally to achieve economies of scale.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that Unilabs'
leverage, as measured by Moody's-adjusted debt/EBITDA, will trend
towards 6.0x over the next 12-18 months, though Moody's views the
rating positioning at the outset as somewhat weak with limited
room for further sizeable acquisitions or underperformance in the
near term.

FACTORS THAT COULD LEAD TO AN UPGRADE

Unilabs' leverage, as measured by Moody's-adjusted debt/EBITDA,
were to decrease sustainably below 5.5x, and the company were to
maintain good liquidity.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Unilabs' leverage, as measured by Moody's-adjusted debt/EBITDA,
were to go above 6.5x; or the company's cash flow or liquidity
profile were to deteriorate.

STRUCTURAL CONSIDERATIONS

The B1 ratings of the company's senior secured bank credit
facilities, including the EUR1,130 million term loan, the EUR250
million term loan, and the EUR200 million RCF, one notch above
the B2 CFR reflect the loss absorption cushion from the sizable
EUR405 million senior notes. The B2-PD probability of default
rating (PDR) in line with the B2 CFR reflects Moody's 50%
corporate family recovery rate. The shareholder loans borrowed by
Unilabs Holding AB (two levels above Unilabs Subholding AB) are
outside of the senior notes restricted group and therefore not
included in Moody's leverage calculations.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Unilabs, headquartered in Geneva, Switzerland, is a clinical
laboratory services and medical diagnostic imaging services
network. Unilabs' revenue is EUR1.05 billion for the last twelve
months to March 31, 2018 pro forma for the completed acquisitions
and the planned acquisition. The company is majority owned by
funds advised by Apax Partners LLP.


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


KEMBLE WATER: Fitch Puts 'BB-' IDR on Rating Watch Negative
-----------------------------------------------------------
Fitch Ratings has placed Kemble Water Finance Limited's (Kemble
Water) 'BB-' Long-Term Issuer Default Rating (IDR) and 'BB'
senior secured rating on Rating Watch Negative (RWN) following
the announcement of a GBP120 million regulatory penalty. The
agency has also placed the 'BB' ratings of Thames Water (Kemble)
Finance PLC's (TWKF) GBP400 million and GBP175 million senior
secured bond issues, which are guaranteed by Kemble Water, on
RWN.

The RWN reflects financial profile pressure stemming from the
GBP120 million penalty imposed on Thames Water Utilities Limited
(Thames Water), the operating company beneath Kemble Water and
the only source of Kemble Water's cash flows. Of the GBP120
million, GBP55 million relates to automatic penalties, with a
further GBP65 million of customer refunds. The penalty adds to
the rating pressure Fitch already anticipates from the tougher
price control starting in FY21, and could reduce Kemble Water's
debt service capacity to below a level commensurate with the
rating. The RWN also factors in the regulator's concern about
inadequate systems of control over leakage reduction performance
at a board level, although Fitch recognises the significant
recent changes at the board, with the new chairman leading a full
governance review.

Fitch expects to resolve the RWN in autumn 2018, once it has more
visibility on Thames Water's business plan for the next price
control, its progress towards reducing the leakage and towards
enhancing board governance.

Kemble Water is a holding company of Thames Water, the regulated
monopoly provider for water and wastewater services in London and
the surrounding areas.

KEY RATING DRIVERS

Large Penalty for Poor Performance: The water industry regulator,
Ofwat, agreed a GBP120 million penalty with Thames Water after
the company failed to meet its leakage performance targets. The
company missed its regulatory target by a large margin in FY17,
exceeding the penalty collar, and is only planning to be back on
target in FY20. Higher investments and an improved approach to
leakage find and fix activities aid performance improvement.
Thames Water has infringed a provision of the Water Industry Act
1991 and two licence provisions. The fine is substantial as it
represents 20% of Thames Water's FY17 operating profit, while it
relates to only one specific area of operating performance
(leakage).

Reduced Dividend Cover: The penalty will reduce Thames Water's
operating profit and dividend capacity, and will in turn lead to
lower dividend cover at Kemble Water. The cash flow impact will
be spread across seven years, including the last two years of the
current price control, and the whole next price control. Fitch's
preliminary analysis indicates a dividend cover ratio below the
negative rating sensitivity of 2.5x in the foreseeable future.

Rating Pressure Increased: The fine adds to the rating pressure
Fitch already anticipates from the tougher price control starting
in FY21 (AMP7). Fitch expects Thames Water's financial profile to
deteriorate in AMP7 due to lower allowed WACC, and tougher cost
and performance targets. The company's regulatory performance in
leakage and customer service is lagging its rated peers, which
may lead to overspend on totex and incentive penalties in AMP7.
Progress in improving leakage and customer service performance
will be important in mitigating these risks. To improve
performance, the company is planning totex spend significantly
above the regulatory allowance in AMP6, supported by a
significant dividend reduction.

Board Weakness Identified: Ofwat's findings on weak board
governance also weigh on the rating. The regulator stated that
Thames Water's board failed to identify the scale of poor leakage
performance, and take timely action. In response to Ofwat's
findings, the company has agreed to continue to enhance board
governance and will appoint an independent auditor to monitor its
annual assurance reports. There have been significant changes in
senior management and the composition of the board in the last 18
months: half of the board was changed, including the new chairman
as of January 2018.

DERIVATION SUMMARY

Kemble Water Finance Limited is a holding company of Thames
Water, one of the regulated, monopoly providers for water and
wastewater services in England and Wales. The weaker rating
compared with peers such as Osprey Acquisitions Limited
(BB/Stable) and Kelda Finance (No.2) Limited (BB/Stable) reflects
Kemble Water's weaker operating and regulatory performance as
well as weaker credit metrics.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for Thames Water:

  - Regulated revenues in line with the final determination of
tariffs for AMP6, ie assuming no material over- or under-
recoveries

  - Combined totex underperformance of around GBP200 million in
nominal terms for FY18 to FY20

  - Underperformance in retail costs of around GBP70 million
above allowances for FY18 to FY20

  - Unregulated EBITDA of around GBP10 million per annum

  - Retail price inflation of 3% from 2018 onwards

  - Limited impact on cash-flow generation from outcome delivery
incentives (ODIs), given that financial rewards and penalties
will be taken into account as part of the next price review

  - Fitch has included GBP43 million of penalties related to ODIs
in FY19 (including GBP12.6 million of leakage-related penalties)
and GBP30 million of penalties related to leakage in FY20; GBP77
million of leakage-related penalties are assumed to affect AMP7
price control

Fitch's key assumptions for Kemble Water:

  - Incremental debt at the holding-company level of around 6%
pension adjusted net/debt to RAV (90% or below for the whole
group)

  - Average annual finance charge at holding company level of
around GBP58 million from FY18 to FY20

RATING SENSITIVITIES

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

Positive rating action is unlikely. Fitch may affirm the rating
if there is sufficient evidence of:

  - Kemble Water's ability to sustain dividend cover above 2.5x
and post-maintenance and post-tax interest cover above 1.05x
during the remainder of AMP6 and during AMP7 price controls

  - Material reduction of the regulatory gearing and substantial
improvement in regulatory performance at the operating company
level

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

Fitch could downgrade the rating if its expectation of a
sustained deterioration in the expected credit metrics
materialised:

  - Dividend cover below 2.5x, increase of gearing above 90%
and/or decrease of post-maintenance and post-tax interest cover
below 1.05x

Fitch will review the rating sensitivities for UK water
companies, including Kemble Water, as part of its assessment of
AMP7 price control.

LIQUIDITY

Adequate Liquidity: Kemble Water mainly relies on dividend
upstream in order to service its debt payments. As at September
31, 2017, Kemble Water held GBP28.4 million in unrestricted cash
and cash equivalents and GBP65 million of committed, undrawn
revolving credit facility maturing in 2022, compared with an
annual finance charge of around GBP58 million. The next debt
maturity is a GBP400 million bond maturing in April 2019.


MINISCOFF LTD: Enters Liquidation, Buyer Sought for Assets
----------------------------------------------------------
Catherine Deshayes at Business-Sale reports that award-winning
children's organic food manufacturer Miniscoff Ltd. has entered
liquidation.

According to Business-Sale, the company is now seeking a buyer to
take on its brand name, services, and assets which include
recipes.

Partners Simon Haskew -- simon.haskew@begbies-traynor.com -- and
Neil Vinnicombe -- neil.vinnicombe@begbies-traynor.com -- from
the Bristol and Bath branches of corporate recovery services
Begbies Traynor, were assigned as the joint liquidators on June
15, 2018, Business-Sale discloses.


NEWDAY FUNDING 2018-1: Fitch Rates Class F Notes 'B(EXP)sf'
-----------------------------------------------------------
Fitch Ratings has assigned NewDay Funding's Series 2018-1 notes
expected ratings as follows:

Series 2018-1 A1: 'AAA(EXP)sf'; Outlook Stable

Series 2018-1 A2: 'AAA(EXP)sf'; Outlook Stable

Series 2018-1 B: 'AA(EXP)sf'; Outlook Stable

Series 2018-1 C: 'A(EXP)sf'; Outlook Stable

Series 2018-1 D: 'BBB(EXP)sf'; Outlook Stable

Series 2018-1 E: 'BB(EXP)sf'; Outlook Stable

Series 2018-1 F: 'B(EXP)sf'; Outlook Stable

The notes to be issued by NewDay Funding 2018-1 plc are
collateralised by a pool of non-prime UK credit card receivables.

The final rating is contingent on the receipt of final
documentation conforming to information already reviewed. Fitch
expects to affirm NewDay Funding's existing tranches when it
assigns final ratings.

KEY RATING DRIVERS

Non-Prime Asset Pool

The charge-off and payment rate performance of the portfolio
differs from that of other rated UK credit card trusts, due to
the non-prime nature of the underlying assets. Fitch assumes a
steady state charge-off rate of 18%, with a stress on the lower
end of the spectrum (3.5x for 'AAAsf'), considering the high
absolute level of the steady state assumption and lower
historical volatility in charge-offs. Fitch applied a steady
state payment rate assumption of 10%, with a median level of
stress (45% at 'AAAsf').

Changing Pool Composition

The portfolio consists of an open book and a closed book, which
have displayed different historical performance trends. Overall
pool performance is expected to migrate towards the performance
of the open book as the closed book amortises. This has been
incorporated into Fitch's steady state asset assumptions.

Variable Funding Notes Add Flexibility

In addition to Series VFN-F1 providing the funding flexibility
that is typical and necessary for credit card trusts, the
structure employs a separate originator VFN, purchased and held
by NewDay Funding Transferor Ltd (the transferor). It provides
credit enhancement to the rated notes, adds protection against
dilution by way of a separate functional transferor interest, and
meets the EU risk retention requirements.

Key Counterparties Unrated

The NewDay Group will act in a number of capacities through its
various entities, most prominently as originator, servicer and
cash manager to the securitisation. In most other UK trusts,
these roles are fulfilled by large institutions with strong
credit profiles. The degree of reliance is mitigated in this
transaction by the transferability of operations, agreements with
established card service providers, a back-up cash management
agreement and a series-specific liquidity reserve.

Stable Asset Outlook

Fitch maintains its stable sector outlook, as performance remains
benign and any potential deterioration would remain fully
consistent with the steady-state assumptions for UK credit card
trusts.

Weak real wage growth and changes to the benign unemployment
levels in the UK would put the repayment ability of borrowers
under pressure in the near future. However, receivables
performance did not deteriorate during the most recent multi-year
period of negative real wage growth, likely due to the robust
labour market that coincided with that period. Fitch's current
expectation for UK unemployment supports the stable rating
outlook for credit card trusts.

RATING SENSITIVITIES

Rating sensitivity to increased charge-off rate

Increase base case by 25% / 50% / 75%

Series 2018-1 A: 'AAsf' / 'AA-sf' / 'A+sf'

Series 2018-1 B: 'A+sf' / 'Asf' / 'BBB+sf'

Series 2018-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'

Series 2018-1 D: 'BB+sf' / 'BB-sf' / 'B+sf'

Series 2018-1 E: 'B+sf' / 'Bsf' / NA

Series 2018-1 F: NA / NA / NA

Rating sensitivity to reduced Monthly Payment Rate (MPR)

Reduce base case by 15% / 25% / 35%

Series 2018-1 A: 'AAsf' / 'AA-sf' / 'Asf'

Series 2018-1 B: 'A+sf' / 'Asf' / 'A-sf'

Series 2018-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'

Series 2018-1 D: 'BBB-sf' / 'BB+sf' / 'BBsf'

Series 2018-1 E: 'BB-sf' / 'B+sf' / 'B+sf'

Series 2018-1 F: NA / NA / NA

Rating sensitivity to reduced purchase rate (ie aggregate new
purchases divided by aggregate principal repayments in a given
month)

Reduce base case by 50% / 75% / 100%

Series 2018-1 D: 'BBB-sf' / 'BBB-sf' / 'BBB-sf'

Series 2018-1 E: 'BB-sf' / 'BB-sf' / 'B+sf'

Series 2018-1 F: NA / NA / NA

Rating sensitivity to increased charge-off rate and reduced MPR

Increase base case charge-offs by 25% and reduce MPR by 15% /

Increase base case charge-offs by 50% and reduce MPR by 25% /

Increase base case charge-offs by 75% and reduce MPR by 35%

Series 2018-1 A: 'A+sf' / 'A-sf' / 'BBB-sf'

Series 2018-1 B: 'A-sf' / 'BBBsf' / 'BB+sf'

Series 2018-1 C: 'BBBsf' / 'BB+sf' / 'BB-sf'

Series 2018-1 D: 'BBsf' / 'B+sf' / NA

Series 2018-1 E: 'Bsf' / NA / NA

Series 2018-1 F: NA / NA / NA

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

Fitch was provided with Form ABS Due Diligence-15E ("Form 15E")
as prepared by Deloitte LLP. The third-party due diligence
described in Form 15E focused on observing and comparing specific
loan level data contained in a sample of credit card receivables.
Fitch considered this information in its analysis and it did not
have an effect on Fitch's analysis or conclusions.

DATA ADEQUACY

Fitch reviewed the results of a third party assessment conducted
on the asset portfolio information, and concluded that there were
no findings that affected the rating analysis.

Fitch conducted a review of a small targeted sample of NewDay's
origination files and found the information contained in the
reviewed files to be adequately consistent with the originator's
policies and practices and the other information provided to the
agency about the asset portfolio.

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.


POUNDWORLD: Commences Closing Down Sales, Hopes to Find Buyer
-------------------------------------------------------------
Adam Parsons at Sky News reports that Poundworld has started a
closing down sale across its entire estate of shops -- but says
it still hopes to survive.

According to Sky News, the retailer, which went into
administration earlier this month, sent a memo to staff saying
that "trading has been difficult for a substantial period of
time" and confirming that "stores are to commence 'closing down'
sales."

However, the message went on to say that the move "does not mean
that stores will definitely close", confirming that
administrators are still looking to secure a sale of the business
"either in whole or part", Sky News notes.

It has also emerged that the restructuring firm Hilco has been
brought in to help manage the process of either selling or
closing the chain's stores, Sky News states.

A hundred jobs were lost at Poundworld's headquarters in
Yorkshire as the company made a desperate attempt to cut
overheads and attract a buyer for all, or some, of the business,
Sky News discloses.

Sources have told Sky News that more than one bid has been
received and that these are now being evaluated by administrators
from Deloitte.  It is understood that the two bids involve
different packages of stores and distribution centres, Sky News
relays.

It seems very unlikely that a buyer will be found for the whole
chain, meaning that store closures are inevitable, according to
Sky News.

The process of evaluating those bids is continuing at pace, Sky
News states.  Insiders suggest that a final decision could come
as soon as Monday, June 25, with a simple choice of either
accepting an offer for some of the company, or else starting the
process of what one source described as "the total wind-down of
Poundworld", according to Sky News.


PRESCOTT & CONRAN: Enters Administration, 168+ Jobs at Risk
-----------------------------------------------------------
Helen Cahill at Press Association reports that upmarket
restaurant chain Prescott & Conran, founded by Sir Terence
Conran, has gone into administration, putting more than 168 jobs
at risk.

Duff & Phelps have been called in to handle the administration,
and some restaurants have already been closed, Press Association
relates.

According to Press Association, Stephen Clancy, of Duff & Phelps,
said: "Over the past few months the group has been undertaking an
operational review, looking to enhance profitability and exit
under-performing businesses.  As part of that process some
restaurants had already been closed.

"The restaurant trade is going through a period of sustained
change off the back of changing consumer demand.  As such, the
group's directors made the difficult decision to exit under-
performing restaurants."



===============
X X X X X X X X
===============


* BOOK REVIEW: Bankruptcy Crimes
--------------------------------
Author: Stephanie Wickouski
Publisher: Beard Books
Softcover: 395 Pages
List Price: $124.95
Review by Gail Owens Hoelscher
Order your personal copy today at
http://www.beardbooks.com/beardbooks/bankruptcy_crimes_third_edit
ion.html

Did you know that you could be executed for non-payment of debt
in England in the 1700s? Or that the nailing of an ear was the
sentence for perjury in bankruptcy cases in 1604? While ruling
out such archaic penalties, Stephanie Wickouski does believe "in
the need for criminal sanctions against bankruptcy fraud and for
consistent, effective enforcement of those sanctions." She
decries the harm done to individuals through fraud schemes and
laments the resulting erosion in public confidence in the
judicial system.

This leading authoritative treatise on the subject of bankruptcy
fraud, first published in August 2000 and updated annually with
new material, will prove invaluable for bankruptcy law
practitioners, white collar criminal practitioners, and
prosecutors faced with criminal activity in bankruptcy cases.
Indeed, E. Lawrence Barcella, Jr. of Paul, Hastings, Janofsky,
and Walker, in Washington, DC, says, "If I were a lawyer involved
in a bankruptcy matter, whether civil or criminal, and had only
one reference work that I could rely upon, it would be this
book." And, Thomas J. Moloney with Cleary, Gottlieb, Steen &
Hamilton describes the book as "an essential reference tool."

An estimated ten percent of bankruptcy cases involve some kind of
abuse or fraud. Since launching Operation Total Disclosure in
1992, the U.S. Department of Justice has endeavored to send the
message that bankruptcy fraud will not be tolerated. Bankruptcy
judges and trustees are required to report suspected bankruptcy
crimes to a U.S. attorney. The decision to prosecute is based on
the level of loss or injury, the existence of sufficient
evidence, and the clarity of the law. In some cases, civil
penalties for fraud are deemed sufficient to punish and deter.

Ms. Wickouski suggests that some lawyers might not recognize
criminal activity that the DOJ now targets for investigation. She
gives several examples, including filing for bankruptcy using an
incorrect Social Security number, and receiving payments from a
bankruptcy debtor that were not approved by the bankruptcy court.
In both of these real life examples, DOJ investigations led to
convictions and jail time.

Ms. Wickouski says that although new schemes in bankruptcy fraud
have come along, others have been around for centuries. She takes
the reader through the most common traditional schemes, including
skimming, the bustout, the bleedout, and looting, as well as some
new ones, including the bankruptcy mill. The main substance of
Bankruptcy Crimes is Ms. Wickouski's detailed analysis of the
U.S. Bankruptcy Criminal Code, chapter 9 of title 18, the Federal
Criminal Code. She painstakingly analyzes each provision,
carefully defining terms and providing clear and useful examples
of actual cases. She ends with a good chapter on ethics and
professional responsibility, and provides a comprehensive set of
annexes. Bankruptcy Crimes is never dry, and some of the cases
will make you nostalgic for the days of ear-nailing. This
comprehensive, well researched treatise is a particularly
invaluable guide for debtors' counsel in dealing with conflicts,
attorney-client relationships, asset planning, and an array of
legal and ethical issues that lawyers and bankruptcy fiduciaries
often face in advising clients in financially distressed
situations.

Stephanie Wickouski is a partner at Bryan Cave Leighton Paisner
LLP, advising clients on all aspects of bankruptcy, insolvency
and commercial transactions, including bond defaults, trust
indentures, business acquisitions, real estate, health care and
financial fraud. With more than 30 years of experience handling
complex reorganization cases throughout the country, she has
served as lead bankruptcy counsel in multiple high-profile cases.
Ms. Wickouski is also the author of Indenture Trustee Bankruptcy
Powers & Duties, an essential guide to the legal role of bond
trustee. She also writes the Corporate Restructuring blog
(http://blogs.bankrupt.com).She has a national reputation and is
an industry leader in corporate insolvency, and is a frequent
lecturer, author and commentator on bankruptcy subjects.
Ms. Wickouski joined Gardner Carton & Douglas' Corporate
Restructuring Practice as a partner in August 2002 and worked in
the Firm's Washington, D.C. office. Prior to joining Gardner
Carton & Douglas, she was a partner at Arent Fox Kintner Plotkin
& Kahn in Washington, D.C. and New York City, and prior to that,
a partner at Reed Smith.

Prior to entering private practice, she was a trial attorney with
the Civil Division of the U.S. Department of Justice, where she
received awards for her handling of litigation in airline
bankruptcies. She is a panel mediator for the U.S. Bankruptcy
Court for the Southern District of New York.



                            *********

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 * * *