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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

           Wednesday, August 1, 2018, Vol. 19, No. 151


                            Headlines


A Z E R B A I J A N

AZERBAIJAN: Fitch Affirms 'BB+' LT IDR, Outlook Stable


C Y P R U S

CYPRUS: Moody's Raises Issuer Rating to Ba2, Outlook Stable


F R A N C E

FINANCIERE EFEL: S&P Affirms 'B' LT Issuer Credit Rating


G E R M A N Y

TELE COLUMBUS: Fitch Alters Outlook to Stable & Affirms 'B' IDR


I R E L A N D

CADOGAN SQUARE XII: Moody's Assigns (P)B2 Rating to Class F Notes
HAYFIN EMERALD I: Fitch Rates Class F Notes 'B-(EXP)sf'
HAYFIN EMERALD I: Moody's Assigns (P)B2 Rating to Class F Notes
OPENHYDRO: High Court Appoints Provisional Liquidators


N E T H E R L A N D S

ADAGIO CLO VII: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'
DRYDEN 52 2017: S&P Affirms B- (sf) Rating on Class F Notes
DRYDEN 63 2018: Moody's Assigns (P)B2 Rating to Class F Notes
INTERGEN NV: S&P Hikes Issuer Credit Rating to B+, Outlook Stable
MUNDA CLO I: S&P Lowers Class E Notes Rating to CCC (sf)


S E R B I A

HIP AZOTARA: Serbia's Government Files Bankruptcy Petition


U K R A I N E

ODESSA CITY: Fitch Affirms 'B-' LT IDRs, Outlook Stable


U N I T E D   K I N G D O M

FORCE INDIA: Explores Future Options, Operations to Continue
HARVEYSON HAULAGE: Trading Difficulties Prompt Administration
HOUSE OF FRASER: Advisers in Rescue Talks with Mike Ashley
HOUSE OF FRASER: S&P Lowers Long-Term Issuer Credit Rating to SD
NORDIC PACKING: Moody's Downgrades CFR to B2, Outlook Stable


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A Z E R B A I J A N
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AZERBAIJAN: Fitch Affirms 'BB+' LT IDR, Outlook Stable
------------------------------------------------------
Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign-
Currency Issuer Default Rating (IDR) at 'BB+' with a Stable
Outlook.

KEY RATING DRIVERS

Azerbaijan's 'BB+' ratings balance a strong external balance
sheet and low government debt, stemming from accumulated
surpluses in times of high oil revenues, with a heavy dependence
on hydrocarbons, an underdeveloped and opaque policy framework,
and a weak banking sector and governance indicators.

Azerbaijan's external balance sheet is strong relative to peers,
with sovereign net foreign assets accounting for 81% of GDP at
end-2017, compared with negative 3% of GDP for the current 'BB'
median. Assets of the State Oil Fund of Azerbaijan (Sofaz)
increased by 5.1% in 1Q18 to USD37 billion (77% of GDP), from
USD36 billion in 2017. FX reserves are set to recover to USD8.6
billion in 2018 (USD6.7 billion in 2017) or 4.5 months of import
cover (3.9 months in 2017).

Azerbaijan's economy is recovering slowly from the oil price
shock and the subsequent policy response, which included exchange
rate devaluations and tightening of fiscal policy. Growth reached
1.3% y-o-y in 1H18. Higher oil prices and gas output and uptick
in the agriculture and tourism sectors should push up growth to
2% in 2018. However, commodity dependence remains high, with the
hydrocarbon sector representing 44% of GDP, 90% of good exports
and 50% of fiscal revenues. Non-oil sector growth is gradually
picking-up, but Fitch expects diversification of the economy to
be incremental.

Macro-stability improved further as inflation fell to 3.2% over
the first five months of 2018, from 12.9% in 2017 due to the
stable exchange rate and imported disinflation from Azerbaijan's
main trading partners. Dollarisation decreased to 63% of deposits
and 39% of loans in May 2018 (67% and 41% at end-December 2017),
as confidence in the manat has recovered and regulatory measures
limiting FX-lending and tightening reserves requirements have
supported manat loans.

However, Fitch believes that Azerbaijan's underdeveloped and
opaque policy framework would reduce the country's ability to
effectively withstand a new external shock. Monetary policy is
still constrained by the high level of dollarisation and the
underdeveloped money market, making inflation targeting a medium-
term objective. The stability of the exchange rate, which has
remained at around 1.70AZN/USD since April 2017 suggests that the
exchange rate is not fully floating.

The current account turned into a surplus in 2017 and Fitch
expects it to reach 6.4% of GDP in 2018, compared with a current
'BB' median deficit of 2.6% of GDP. Higher oil prices, completion
of the Southern Gas Corridor project and production from the Shah
Deniz II field will boost hydrocarbon exports. Rising external
surplus will help rebuild foreign exchange reserves and Sofaz
assets.

Fitch forecasts Azerbaijan's fiscal balance to turn into a
surplus in 2018 due to higher oil and gas revenues and after
recording a 1.6% of GDP deficit in 2017. This is despite a
loosening of policy in the revised 2018 budget, with higher
revenues used to finance higher spending, including an AZN1.6
billion (2% of GDP) increase in capex. Budget transfers from
Sofaz will rise by 13% to AZN11 billion, while support to the
state-owned oil and gas company SOCAR will also increase by
AZN0.96 billion in form of a capital injection and subsidies.

New fiscal rules, elaborated with IFI technical assistance, are
expected to be adopted by the parliament in 2018 and are set for
implementation in 2019. The rules provide for a more prudent
fiscal policy framework, including a potential upper limit for
expenditure. The new framework could reduce the current pro-
cyclicality of the budget and enhance fiscal discipline, although
Fitch believes implementation could be delayed.

Gross general government debt is low relative to peers at a
forecast 21% of GDP in 2018, compared to 39% for the current 'BB'
median, but high contingent liabilities are a risk to the
sovereign. State-owned Aqrarkredit's debt issuances also
benefited from sovereign guarantees of 15.1% of GDP to purchase
the bad loans of the country's largest bank, International Bank
of Azerbaijan (IBA), which brought contingent liabilities to
30.7% of GDP in 2017. However, progressive asset disposal in 1Q18
has helped decrease Aqrarkredit's balance sheet by 21% to
AZN11.9billion. IBA's capitalisation and asset quality improved
markedly after its restructuring in 2017 but the closing of the
bank's large net FX open positon of USD1.2 billion in 1Q18 (2.5%
of GDP) could entail additional costs for the government.

The banking sector remains weak, as reflected by Fitch Banking
System Indicator (BSI) score of 'ccc'. Capital adequacy declined
to 17.2% in April 2018, from 18.4% at end-2017 (excluding IBA),
non-performing loans rose by 1.3pp to 21% over 4M18 and
profitability eroded. Credit growth recovered slightly to 1.6%
over 4M18, supported by looser monetary policy, and following a
29% contraction in 2017 due to IBA restructuring. The net open FX
position of the overall banking sector (excluding IBA) stood at
AZN1.5 billion in April 2018 (1.8% of GDP).

GDP per capita on a PPP basis and human development indicators
are close to the 'BB' medians and Fitch does not expect any
significant policy or governance evolution after the last
presidential election. The incumbent president, Ilham Aliyev, was
re-elected for a fourth term on April 11, 2018 after calling for
snap elections in February. The presidential term was extended to
seven years in 2016, which will likely support policy continuity,
given the long-standing centralisation of power. Political risk
associated with the unresolved conflict with Armenia over
Nagorno-Karabakh also remains material and negotiations leading
to a resolution are not expected in the near term. Hence,
escalation remains a real risk.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Azerbaijan a score equivalent to
a rating of 'BB' on the Long-Term Foreign-Currency (LT FC) IDR
scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LT FC IDR by applying its QO, relative
to rated peers, as follows:

- External Finances: +1 notch, to reflect the size of Sofaz
assets, which underpin Azerbaijan's exceptionally strong foreign
currency liquidity position and the very large net external
creditor position of the country.

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three-year
centred averages, including one year of forecasts, to produce a
score equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within its
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES

The main factors that could, individually or collectively,
trigger positive rating action are:

  - Improvement in the macroeconomic policy framework,
strengthening the country's ability to address external shocks
and reducing macro volatility.

  - An improvement in governance and the business environment and
progress in economic diversification underpinning growth
prospects.

  - A significant improvement in public and external balance
sheet.

The main factors that could, individually or collectively,
trigger negative rating action are:

  - An oil price or other external shock that would have a
significant adverse effect on the economy, the public finances or
the external position.

  - Developments in the economic policy framework that undermine
macroeconomic stability.

  - Weakening growth performance and prospects.

KEY ASSUMPTIONS

Fitch forecasts Brent Crude to average USD70/b in 2018, USD65/b
in 2019 and USD57.5/b in 2020.

Fitch assumes that Azerbaijan will continue to experience broad
social and political stability and that there will be no
prolonged escalation in the conflict with Armenia over Nagorno-
Karabakh to a level that would affect economic and financial
stability.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable

Long-Term Local-Currency IDR affirmed at 'BB+'; Outlook Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Short-Term Local-Currency IDR affirmed at 'B'
Country Ceiling affirmed at 'BB+'

Issue ratings on long-term senior unsecured foreign-currency
bonds affirmed at 'BB+'

Issue ratings on long-term senior unsecured local-currency bonds
affirmed at 'BB+'

Issue ratings on short-term senior unsecured local-currency bonds
affirmed at 'B'

Issue ratings on short-term senior unsecured foreign-currency
bonds affirmed at 'B'


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C Y P R U S
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CYPRUS: Moody's Raises Issuer Rating to Ba2, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has upgraded the government of Cyprus's
long-term issuer rating to Ba2 from Ba3. All senior unsecured
bond and programme ratings have also been upgraded to Ba2 and
(P)Ba2, respectively.

Concurrently, Cyprus's short-term ratings have been affirmed at
Not Prime (NP) and (P)NP.

The outlook on Cyprus's ratings has been changed to stable from
positive.

The upgrade of Cyprus's ratings to Ba2 from Ba3 is driven by the
following interrelated rating factors:

(1) The ongoing recovery of Cyprus's banking system, in the
context of which the liquidation of Cyprus Cooperative Bank Ltd
(CCB, Caa2, RUR+) via the sale of its healthy assets and
liabilities has materially reduced systemic risks emanating from
the banking sector.

(2) The positive fundamental trend with respect to the
government's balance sheet, based on robust nominal growth and a
primary surplus, irrespective of the one-off related to the
recent CCB transaction.

The stable outlook on Cyprus's Ba2 ratings balances Cyprus's
strong fiscal dynamics against pressures for higher public
expenditure. It also reflects uncertainty around the extent to
which new legal tools will enable a material decline in the
banking system's non-performing loan (NPL) ratio.

Cyprus's long-term local and foreign currency bond and bank
deposit country ceilings have risen to A2 from A3. Moody's
maintains a six-notch gap between the government bond rating and
the bond and deposit ceilings. Its short-term foreign currency
bond and bank deposit country ceilings has changed to P-1 from P-
2.

RATINGS RATIONALE

RATIONALE FOR UPGRADING CYPRUS'S RATINGS TO Ba2

FIRST KEY RATING DRIVER: RECOVERY OF THE COUNTRY'S BANKING SYSTEM

The first key rating driver underpinning the upgrade of Cyprus's
ratings to Ba2 relates to the ongoing recovery of country's
banking system. Cyprus has taken an important step forward in the
recovery of its banking sector in recent months. On March 19,
2018, CCB announced that it had appointed a financial adviser to
assist in identifying interested parties for an investment in
either the fully licensed bank or all or part of CCB's assets and
liabilities. CCB was wholly owned by the government of Cyprus and
was the second-largest Cypriot bank. The cooperative banks were
always the weakest link in the Cypriot banking sector. The
government and the European authorities twice (in February 2014
and December 2015) tried to enable these institutions to become
financially viable, but by 2018 it was clear that CCB was not
viable in its current form.

The bank had a provisioning shortfall, stemming from weak asset
quality, that had to be filled through a capital increase. CCB's
non-performing exposures (NPEs) stood at 59% of gross loans in
September 2017 while the provision coverage was low at 45%. The
CCB transaction will have cost the government more than 15% of
GDP, about EUR1 billion more than was originally announced due to
conditions that were attached to the sale of the performing
assets and deposits to Hellenic Bank Public Company Ltd
(Hellenic, Caa1, RUR+). In total, the government has issued
EUR3.190 billion in debt in order to carry out an orderly
liquidation of CCB.

The Cypriot banking system still faces significant challenges.
Over half of loans to Cypriot households are non-performing, and
the total stock of NPEs currently stands at over 100% of GDP;
provisioning against potential losses on these assets is not
particularly high. CCB was the weakest bank in the Cypriot
system, and NPEs in the banking system as a whole will fall by
about 1/3 when the bad assets in CCB are moved into an asset
management company. Further NPE reduction will come following
amendments to the legal framework to facilitate timely
foreclosures and to support asset sales. The other two systemic
domestic banks have agreements with distressed debt collection
companies to help deal with their problems of NPLs as debt
restructuring becomes more difficult.

SECOND KEY RATING DRIVER: POSITIVE FUNDAMENTAL FISCAL TREND
IRRESPECTIVE OF THE CCB-RELATED ONE-OFF

The second key rating driver for the upgrade to Ba2 is based on
the positive fundamental trend with respect to the government's
balance sheet, based on robust nominal growth and a primary
surplus, irrespective of the one-off related to the CCB
transaction.

The positive debt dynamics are underpinned by Cyprus's large
fiscal surplus as well as strong economic growth. The fiscal
surplus is also structural in nature, though the size of the
structural surplus is in decline. A large number of investment
projects and real estate construction is giving growth a
temporary boost for the next few years to levels that are above
the country's potential growth rate of roughly 2% per annum, but
Moody's expects for growth to fall thereafter gradually towards
this potential rate.

While one-off costs of the CCB transaction will have put back the
government's debt reduction efforts by 3 years, Moody's expects
debt/GDP to begin falling again from 2019 onwards from its new
peak of 107.0% in 2018. This debt reduction will be supported by
strong economic growth and persistent primary surpluses. In its
base case, Moody's sees debt falling by 5-6 percentage points per
year. Moody's expects the general government debt/GDP ratio to
fall below 90% by the end of 2021. Moody's stress tests indicate
that reductions in the debt burden are resilient to a multitude
of shocks to growth, interest rates, and fiscal performance.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects the balanced risks that the sovereign
faces in continuing to address the aftermath of the country's
financial crisis. As mentioned, debt dynamics will likely be
strongly positive. Moreover, the government has recently passed
legislation that closes loopholes in the insolvency and
foreclosure laws and facilitates NPE sales. Though this has the
potential to make a significant contribution to NPL reduction
efforts, whether or not this will be successful will be driven by
lenders' and the courts' willingness to use these new legal tools
and borrowers' willingness and ability to negotiate a loan
restructuring or a sale of non-performing assets.

The government has also initiated a programme called ESTIA that,
subject to limits on income, other assets, and property value,
aims to help some households that are struggling with mortgage
payments on their primary residence by reducing the outstanding
principle on the mortgage, cutting the interest rate on the loan
and extending the repayment period. Given the government
subsidies for this programme, it will have recurring fiscal costs
of 0.1-0.2% of GDP over the next 20-25 years on top of the 0.35%
of GDP in additional interest that the government will pay due to
the debt issued as part of the CCB transaction. This transacttion
will have also more than doubled the number of outstanding
government guarantees under one of the conditions of the sale to
Hellenic.

Pressures to increase expenditure in other areas are increasing.
Moody's expects to see more pressure on public sector wages next
year than Moody's has seen since the beginning of the euro area
sovereign debt crisis. While the public-sector wage bill is
considerably lower now than it was pre-crisis, it remains higher
than the EU average. There is no public-sector wage agreement
that goes beyond 2018. Moreover, the government has agreed to
roll back the cuts to wages and pensions that were introduced
during the crisis.

Nevertheless, the 2018-2021 Stability Programme relies
predominantly on lower employee compensation for expenditure
decreases (on the principle that wage growth will be slower than
nominal GDP growth). This may prove optimistic given that
promotions have now been unfrozen, the COLA has been re-
instituted (albeit with less generous terms than those that
prevailed pre-crisis), annual pay rises on top of COLA increases
have returned, and seasonal personnel are now employed for 11
months per year (up from 8 months per year). In short, risks to
its fiscal balance forecast are skewed to the downside.

Another source of potential pressure on spending comes from
health care. From 2019 onwards, Cyprus will roll out its health
care reform programme. While the government has a framework to
manage the rise in health care costs, demographic trends and
experience in other countries indicates that 1) health spending
could rise more quickly than the government expects in the
current years and 2) the political pressures associated with
health care expenditure can prove to be exceptionally difficult
for governments to resist.

WHAT COULD CHANGE THE RATING--UP/DOWN

Moody's would consider changing the outlook on the Ba2 ratings to
positive and eventually upgrading Cyprus's Ba2 ratings if Moody's
were to conclude that macroeconomic conditions and policy actions
were to result in a sustained and significant decline in the
government debt stock and in the stock of non-performing loans in
the banking sector.
Downward pressure that could lead to a negative outlook and
eventually a downgrade of the rating could develop if growth or
fiscal policy decisions were to cause a reversal of the
supportive fundamental debt trend. A failure to translate recent
legislative actions and interventions in the banking sector into
a significant decline in the non-performing loan ratio would also
be credit negative.

GDP per capita (PPP basis, US$): 37,023 (2017 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 3.9% (2017 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): -0.6% (2017 Actual)

Gen. Gov. Financial Balance/GDP: 1.8% (2017 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -6.7% (2017 Actual) (also known as
External Balance)

External debt/GDP: [not available]

Level of economic development: Moderate level of economic
resilience

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

On July 23, 2018, a rating committee was called to discuss the
rating of the Cyprus, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially improved. The
issuer's institutional strength/ framework, have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has materially decreased. The issuer has become
more susceptible to event risks.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Cyprus, Government of

LT Issuer Rating, Upgraded to Ba2 from Ba3

Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba2
from (P)Ba3

Senior Unsecured Regular Bond/Debenture, Upgraded to Ba2 from Ba3

Affirmations:

Commercial Paper (Local Currency), Affirmed NP

Other Short Term, Affirmed (P)NP

Outlook Actions:

Outlook, Changed To Stable From Positive

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2016.


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F R A N C E
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FINANCIERE EFEL: S&P Affirms 'B' LT Issuer Credit Rating
--------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit
rating on Financiere EFEL and assigned its preliminary 'B' long-
term issuer credit rating to Optimus Bidco, the holding company
of France-based storage system manufacturer Averys SA. The
outlook is stable.

S&P said, "At the same time, we assigned our preliminary 'B'
issue rating to the EUR400 million first-lien term loan issued by
Optimus Bidco, with a '3' recovery rating, indicating our
expectation of average recovery (rounded estimate: 60%) in the
event of a default. We assigned our preliminary 'CCC+' issue
rating to the EUR85 million second-lien term loan issue by
Optimus Bidco, with a '6' recovery rating, indicating our
expectation of zero recovery in the event of a payment default.

"We expect the transaction to close in the third quarter of 2018,
at which time we will withdraw our 'B' issuer credit rating on
Financiere EFEL, the current holding company of Averys and issuer
of outstanding debt.

"All the ratings depend on our review of the final transaction
documentation. If we do not receive the final documentation
within a reasonable time frame, or if the final documentation
departs from materials we have reviewed, we reserve the right to
withdraw or revise our ratings. Potential changes include, but
are not limited to, the use of proceeds, interest rate, maturity,
size, and financial and other covenants."

Averys/Optimus is a European leader in the manufacture of storage
systems (heavy and light duty racking) and metal furniture for
numerous applications in industrial warehouses. Headquartered in
France, the group operates through 11 industrial sites in Europe
and in 13 countries across Europe, the Middle East, and Asia-
Pacific through a portfolio of five brands. After the acquisition
of Storax, the leading Southern European manufacturer of racking
products, Averys/Optimus Group benefits from Storax's
distribution network, which will allow the group to access the
Spanish and Portuguese market for storage racking products, with
further potential to penetrate new markets and expand its
geographic footprint. Including Storax, Averys/Optimus generated
sales of about EUR304 million and EBITDA of EUR39 million for the
first half of 2018. S&P expects the combined group will generate
sales of EUR640 million and EBITDA of EUR80 million in 2018 on
pro-forma basis.

S&P said, "We assess Averys/Optimus' business risk profile as
weak. Most notably, it is constrained by the limited scale,
scope, and diversification of its operations compared with other
capital goods sector companies. The group has addressed its
geographic concentration over the past 10 years through acquiring
Standard in Turkey and Stow across Europe. The integration of
Storax reduced the importance of France in revenue generation (at
about 35%), but Europe still accounts for 90% of the group's
revenue base. We also view the market for racking storage
products as fragmented and competitive, which is a further
constraining factor.

"We positively view Averys/Optimus' solid market shares in its
core geographic markets (38% in France, 42% in Belgium)
translating into its No.1 position as storage solution provider
in Europe and No.3 position globally. Furthermore, on the
strength of its leading market position, Averys/Optimus has
maintained long-term relationships with a fairly wide range of
customers from original equipment manufacturers (forklift
companies), to E-retailers and retailers, with no contract
losses. While its top-10 customers account for less than 30% of
its sales, the group remains somewhat exposed to its
relationships with its largest industrial customers. We also view
positively the group's variable cost structure, which has
historically enabled the group to deliver an EBITDA margin of
10%-12% through the cycle. At the end of fiscal year 2017, as of
Dec. 31, we estimate the S&P Global Ratings-adjusted EBITDA
margin at 12.2%.

"Furthermore, the group's private-equity ownership structure by a
financial sponsor constrains our financial risk profile
assessment. We expect that Averys/Optimus' fully S&P Global
Ratings-adjusted debt-to-EBITDA ratio will be at 6.2x in 2018 and
our expectation is that it will reduce to below 5.7x from 2019.
Our adjusted debt includes EUR5 million in pension liabilities
and about EUR18 million of operating leases, resulting in a total
debt of about EUR509 million for 2018.

"The financial risk profile is, however, supported by our
expectation of moderate volatility in Averys/Optimus' operating
cash flow, our expectation that Averys will be able to continue
generating positive free operating cash flow (FOCF) under our
base case, and maintain healthy cash interest-coverage ratios
above 2.5x in 2018 and 2019. Our financial risk profile
assessment also incorporates our opinion of the group's adequate
liquidity in the next 12 months.

"The stable outlook reflects our expectation that Averys/Optimus
will grow organically and will likely generate positive FOCF over
2018-2019. We base this view on our assumption that the group
will be able to execute on its increased order backlog, leading
to a stronger operating performance than the past 12 months and
an EBITDA margin of 12%-13%. We estimate a reported adjusted debt
to EBITDA below 6.0x at year-end 2019 and FFO to cash interest
coverage comfortably more than 2.5x by year-end 2018, as well as
adequate liquidity.

"We could lower the rating if the company faced the loss of a
major customer contract or if the anticipated growth did not
materialize, due to a sharp downturn in the global economy,
leading to lower revenues, EBITDA, and a contraction in operating
cash flow generation compared with our base case. A more
aggressive financial policy, for example in the form of
shareholder distributions, or deteriorating liquidity could also
put the rating under pressure. Likewise, FFO cash interest
coverage converging toward less than 2.5x or adjusted debt to
EBITDA not improving into 2019 to below 6.0x or less-than-
adequate liquidity would likely trigger a negative rating action.

Given the company's small absolute size, we see an upgrade as
remote. Any positive rating action would require:

-- Further significant diversification;

-- The company outperforming S&P's base-case projections, with
    the EBITDA margin improving sustainably; and

-- Demonstration of a supportive financial policy, such as a
    constant deleveraging path combined with a lack of further
    returns to shareholders. This is unlikely over the next 12
    months, in S&P's view.


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G E R M A N Y
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TELE COLUMBUS: Fitch Alters Outlook to Stable & Affirms 'B' IDR
---------------------------------------------------------------
Fitch Ratings has revised the Outlook on Tele Columbus AG's Long-
Term IDR to Stable from Positive and affirmed the IDR at 'B'.
Fitch has also affirmed the 'BB-/RR2'rating on Tele Columbus's
senior secured debt instruments.

Tele Columbus is the third-largest cable provider in Germany
after Kabel Deutschland (a subsidiary of Vodafone) and Unitymedia
(B+/Rating Watch Positive; a subsidiary of Liberty Global), with
around 3.5 million connected homes. The company's ratings reflect
its stable business model but also high funds from operations
(FFO) adjusted net leverage expected at around 5.5x in 2018-2019
and slow deleveraging prospects.

KEY RATING DRIVERS

Operating Slow-Down: Fitch expects Tele Columbus's customer base
and revenue growth to slow down in 2018. Fitch believes it would
be a challenge to accelerate it in line with the management's
mid-term ambition target of mid-to-high single-digit range. The
uptake of its premium services will continue to gradually
increase, but the loss of even small contracts with housing
associations (HA) may exert pressure on premium revenue
generating units (RGUs), and overall performance, in its view.

Integration Taking Longer: The on-going integration with Pepcom
and Primacom is taking longer than initially expected by
management, and Fitch believes it will be a drag on the company's
operating and financial performance in the short to medium term.
Integration glitches may have a negative impact on service
quality and churn, and would also impede rebranding efforts (the
company launched single brand PYUR in 2H2017).

Fitch forecasts integration costs will significantly dilute the
positive impact of remaining integration synergies, estimated by
management at EUR16 million in 2018. Overall, Fitch projects that
any improvements in EBITDA profitability are likely to be slow
after the synergies programme runs its course by end-2018.

Rational Cable Competition: Peer cable competition is rational
and primarily based on legacy cable infrastructure, with limited
overlaps and appetite for opportunistic new development. Fitch
believes this will allow Tele Columbus to maintain its strong
regional market shares. The company holds above 50% cable market
shares on territories where 2.4 million of its 3.5 million
connected homes are located.

Limited Infrastructure Competition: Cable operators typically
have exclusive access to their client housing associations (HAs),
with only incumbent Deutsche Telekom (BBB+/Stable) able to offer
a full range of competing premium services including broadband
connection, premium TV and mobile service on own wireline
infrastructure.

Long-Term Contract Relationships: Tele Columbus benefits from
long-term contracts with HAs, which ensures stability of its core
revenues, protects against excessive competition with other cable
companies and helps keep churn under control. Bulk contracts with
HAs for basic TV service have a typical duration of eight to 10
years.

A relationship with the HA is likely maintained for a long time
once it has been established. A switch to a new cable operator
would require new equipment installation and/or network rewiring,
which HAs are generally keen to avoid.

Focused Upselling Strategy: The company's focused upselling
strategy shields Tele Columbus from expansion risks associated
with entering new areas without established relationships.
Management does not have plans to enter new areas, and remains
committed to only increasing services take-up across the existing
connected homes franchise.

Low FCF in 2018-2019. Fitch projects the company's free cash flow
(FCF) to be close to break-even in 2018-2019, pressured by high
capex and significant one-off including integration costs as well
as no longer benefiting from high growth. The management now
expects capex to peak in 2019 (vs. 2017 previously) following
high capex equal to 27%- 30% of revenues in 2018. Fitch believes
FCF will be helped by no dividends policy until FCF becomes
sustainably positive.

Slow Deleveraging. Fitch expects deleveraging to be slow, with
FFO adjusted net leverage projected at 5.5x-5.6x in 2018-2019,
comfortably below and unlikely to approach the 6x downgrade
threshold. Deleveraging may gain pace from 2020, assuming the
company manages to sort out integration issues while its capex
starts abating by that time.

Acquisition Risks Rising: A remedy package for the proposed Unity
Media-Vodafone merger, if approved, may trigger some cable asset
divestments that could potentially be a strategic fit for Tele
Columbus, increasing its acquisition risks. However, the
transaction is still at a regulatory review stage, and Fitch
would treat any significant asset purchases as an event risk.
Otherwise, M&A risks for the company are moderate, with no large
cable acquisition targets in the market while management is only
keen to pursue small acquisitions as a cost-efficient capex
substitution alternative.

DERIVATION SUMMARY

Tele Columbus has a significantly smaller operational scale than
its closest domestic peer Unitymedia, the second-largest cable
company in Germany. Unitymedia has broadbly similar leverage but
its rating benefits from better infrastructure, a larger
footprint and sustainably strong FCF, Unitymedia also reports
higher blended average revenue per user (ARPU) and revenue
generating unit (RGU) per customer.

Liberty Global's cable subsidiaries Virgin Media and UPC Holding
are rated 'BB-' due to lower leverage, solid financial profiles
and stronger market positions. VodafoneZiggo has a stronger
operating profile and is broadly equally leveraged, and as a
result is rated 'B+'. Cable companies typically have looser
leverage thresholds than mobile and fixed-line operators due to
the more sustainable nature of their business and stronger FCF.

KEY ASSUMPTIONS

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

  - Stable homes connected of around 3.5-3.6 million in 2018-
2021.

  - Low single digit revenue growth in 2018-2021.

  - Fitch-defined normalised EBITDA margin of above 50% in the
medium term.

  - EUR35 million of one-off costs in 2018 of which EUR10 million
are treated as recurring and reducing EBITDA.

  - Capital intensity at above 30% of revenues in 2018-2019
declining to 26%-28% in 2020-2021.

  - No dividends until FCF generation become sustainably
positive.

KEY RECOVERY RATING ASSUMPTIONS

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

  - A 10% administrative claim.

  - The going-concern EBITDA estimate of EUR207 million reflects
Fitch's view of a sustainable, post-reorganisation EBITDA level
upon which Fitch bases the valuation of the company.

  - The going-concern EBITDA is 20% below estimated LTM 1Q18
EBITDA with a portion of company-reported non-recurring items
treated as an ongoing cost and assuming likely operating
challenges at the time of distress.

  - An enterprise value (EV) multiple of 6x is used to calculate
a post-reorganisation valuation and reflects a conservative mid-
cycle multiple.

  - Fitch assumes that EUR8 million loans at operating
subsidiaries will have a priority over senior secured instruments

  - Fitch estimates the total amount of debt for claims at EUR1.5
billion, which includes EUR1.4 billion senior secured term loan
and secured notes, EUR50 million RCF and EUR69m of finance leases
as of end-1Q18.

  - Fitch estimates the expected recoveries for senior secured
debt at above 70%. This results in the senior secured debt being
rated 'BB-'/'RR2', two notches above the IDR.

RATING SENSITIVITIES

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

  - FFO-adjusted net leverage sustained below 5.0x (2017: 5.7)
and supported by robust FCF.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

  - FFO adjusted net leverage rising and remaining above 6.0x

  - Significant shortening of the remaining contract life with
HAs

LIQUIDITY

Adequate Liquidity: Tele Columbus does not face any significant
refinancing exposure before 2021 when its heavily taped (as of
end-1Q18) EUR50 million RCF comes due. Following the refinancing
in May 2018, EUR 650 million senior secured notes mature in May
2025, with the remaining term loan maturing in October 2024.
Fitch believes liquidity will be supported by modest positive FCF
generation in 2018-2019.


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


CADOGAN SQUARE XII: Moody's Assigns (P)B2 Rating to Class F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
seven classes of notes to be issued by Cadogan Square CLO XII
Designated Activity Company:

EUR274,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR5,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR45,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR29,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR24,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa2 (sf)

EUR27,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba2 (sf)

EUR13,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in October 2031. The provisional ratings reflect the
risks due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets. Furthermore, Moody's is of the opinion that
the Collateral Manager, Credit Suisse Asset Management Limited
("CSAM", the "Manager"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Cadogan XII is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior obligations and up to
10% of the portfolio may consist of unsecured senior loans,
second lien loans, mezzanine obligations and high yield bonds. At
closing, the portfolio is expected 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.

CSAM will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's 4.5 year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
improved and credit risk obligations, and are subject to certain
restrictions.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR 38,900,000 of subordinated notes. Moody's
will not assign a rating to this class of notes.

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:

Target Par Amount: EUR450,000,000

Diversity Score: 50

Weighted Average Rating Factor (WARF): 2750

Weighted Average Spread (WAS): 3.40%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44%

Weighted Average Life (WAL): 8.50 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond ratings of A1 or below. According to the
portfolio eligibility criteria, obligors must be domiciled in a
jurisdiction which has a Moody's local currency country risk
ceiling ("LCC") of "A3" or above. In addition, according to the
portfolio constraints, the total exposure to countries with a
local currency country risk bond ceiling ("LCC") between "A1" and
"A3" shall not exceed 10.0%. As a result, in accordance with its
methodology, Moody's did not adjust the target par amount
depending on the target rating of each class of notes.

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
an additional sensitivity analysis, which was a 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 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 2750 to 3163)

Rating Impact in Rating Notches:

Class A Senior Secured Floating 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: -1

Percentage Change in WARF -- increase of 30% (from 2750 to 3575)

Rating Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

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

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

Class C Senior Secured Deferrable Floating Rate Notes: -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: -4


HAYFIN EMERALD I: Fitch Rates Class F Notes 'B-(EXP)sf'
-------------------------------------------------------
Fitch Ratings has assigned Hayfin Emerald CLO I DAC notes
expected ratings, as follows:

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

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

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

Class A-3: 'AAA(EXP)sf'; Outlook Stable

Class B: '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

Hayfin Emerald CLO I DAC is a securitisation of mainly senior
secured loans (at least 90%) with a component of senior
unsecured, mezzanine, and second-lien loans. A total note
issuance of EUR412.8 million will be used to fund a portfolio
with a target par of EUR400 million. The portfolio will be
actively managed by HayFin Capital Management LLP. The CLO
envisages a four-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

'B' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the 'B'
range. The Fitch-weighted average rating factor (WARF) of the
current portfolio is 33.29.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured
obligations. Fitch views the recovery prospects for these assets
as more favorable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate of the current
portfolio is 66.32.

Diversified Asset Portfolio

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

Portfolio Management

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

Cash Flow Analysis

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

RATING SENSITIVITIES

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

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Loan-by-loan data provided by arranger as at July 23, 2018

  - Draft offering circular provided by arranger as at July 23,
2018


HAYFIN EMERALD I: Moody's Assigns (P)B2 Rating to Class F Notes
---------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
nine classes of notes to be issued by Hayfin Emerald CLO I DAC:

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

EUR 173,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 60,000,000 Class A-2 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 15,000,000 Class A-3 Senior Secured Fixed Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR 34,000,000 Class B Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

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

EUR 27,750,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa3 (sf)

EUR 23,500,000 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
endeavour to assign definitive ratings. A definitive rating (if
any) may differ from a provisional rating.

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in August 2031. The provisional ratings reflect the
risks due to defaults on the underlying portfolio 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, Hayfin Emerald
Management LLP, has sufficient experience and operational
capacity and is capable of managing this CLO.

Hayfin Emerald CLO I is a managed cash flow CLO. At least 90% of
the portfolio must consist of secured senior obligations and up
to 10% of the portfolio may consist of unsecured senior loans,
unsecured senior bonds, second lien loans, mezzanine obligations
and high yield bonds. At closing, the portfolio is expected to be
almost fully ramped up and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

Hayfin 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-years reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from the sale of
credit risk obligations, and are subject to certain restrictions.

In addition to the nine classes of notes rated by Moody's, the
Issuer will issue EUR42.05M 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 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.

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

Target Par Amount: EUR400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2805

Weighted Average Spread (WAS): 3.40%

Weighted Average Fixed Coupon (WAC): 4.75%

Weighted Average Recovery Rate (WARR): 42.75%

Weighted Average Life (WAL): 8.5 years

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
an additional sensitivity analysis, which was a 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 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 2805 to 3226)

Rating Impact in Rating Notches:

Class X Senior Secured Floating Rate Notes: 0

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

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

Class A-3 Senior Secured Fixed Rate Notes: -1

Class B Senior Secured Floating 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 -- increase of 30% (from 2805 to 3647)

Class X Senior Secured Floating Rate Notes: 0

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

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

Class A-3 Senior Secured Fixed Rate Notes: -1

Class B Senior Secured Floating 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


OPENHYDRO: High Court Appoints Provisional Liquidators
------------------------------------------------------
Irish Legal News reports that the High Court has appointed
provisional liquidators to two Irish companies involved in the
renewable energy sector that employ more than 100 people.

Ms. Justice Caroline Costello said she was satisfied to appoint
Michael McAteer and Stephen Tennant of Grant Thornton as joint
provisional liquidators to the Dublin based OpenHydro Group Ltd
and its subsidiary Open Hydro Technologies Ltd after being told
both companies were "seriously insolvent" with debts of
approximately EUR280 million, Irish Legal News relates.

According to Irish Legal News, the court agreed to the
appointments after being told that OpenHydro's French parent,
which had invested EUR260 million in the firms, was no longer
prepared to support the enterprises because the companies were
loss-making.

The application to wind up the companies was made by Naval
Energies, which the High Court heard is the largest shareholder
and creditor of OpenHydro Group, Irish Legal News discloses.

Rossa Fanning SC for Naval Energies, which is part of the French
marine engineering group of companies, said that on top of what
the parent had already invested in the Irish group, it was
projected that Openhydro would make further losses of EUR128
million between now and 2026, Irish Legal News notes.

The counsel, as cited by Irish Legal News, said that 2017 had
been a particularly challenging year for the group.

During that period OpenHydro, which has operations in Ireland,
Scotland, Canada and Japan had sustained approximately EUR160
million in losses, Irish Legal News discloses.

The OpenHydro Group of companies needed EUR1 million a week to
survive, Irish Legal News says.  Naval Energies counsel said had
acquired the company in 2013 from those who established it in
2006, Irish Legal News recounts.

The counsel said given the predictions about group's future
income and expenditure, the parent firm was not prepared to
advance any more money that would allow it continue to operate,
according to Irish Legal News.


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


ADAGIO CLO VII: Fitch Rates EUR12MM Class F Notes 'B-(EXP)sf'
-------------------------------------------------------------
Fitch Ratings has assigned Adagio CLO VII Designated Activity
Company expected ratings, as follows:

EUR248,000,000 Class A: 'AAA(EXP)sf'; Outlook Stable

EUR24,400,000 Class B-1: 'AA(EXP)sf'; Outlook Stable

EUR10,600,000 Class B-2: 'AA(EXP)sf'; Outlook Stable

EUR5,600,000 Class C-1: 'A(EXP)sf'; Outlook Stable

EUR26,400,000 Class C-2: 'A(EXP)sf'; Outlook Stable

EUR21,400,000 Class D: 'BBB(EXP)sf'; Outlook Stable

EUR23,600,000 Class E: 'BB(EXP)sf'; Outlook Stable

EUR12,000,000 Class F: 'B-(EXP)sf'; Outlook Stable

EUR40,700,000 subordinated notes: not rated

EUR4,700,000 Class Z: not rated

Adagio CLO VII Designated Activity Company is a cash flow
collateralised loan obligation (CLO). Net proceeds from the notes
will be used to purchase a EUR400 million portfolio of mainly
euro-denominated leveraged loans and bonds. The transaction has a
4.25-year reinvestment period, and a weighted average life of 8.5
years. The portfolio of assets will be managed by AXA Investment
Managers.

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

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors at the 'B'
category. The Fitch-calculated weighted average rating factor
(WARF) of the underlying portfolio is 32.73, below the maximum
covenanted WARF of 34.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-calculated weighted average recovery rate
(WARR) of the identified portfolio is 66.66%, above the minimum
covenanted WARR of 63.1%.

Diversified Asset Portfolio

The transaction includes two Fitch matrices that the manager may
choose from, corresponding to the top 10 obligors limits at 18%
and 26.5%. The covenanted maximum exposure to the top 10 obligors
for assigning the rating is 20% of the portfolio balance. This
covenant ensures that the asset portfolio will not be exposed to
excessive obligor concentration. The transaction also includes
limits on maximum industry exposure based on Fitch's industry
definitions. The maximum exposure to the three-largest Fitch-
defined industries in the portfolio is covenanted at 40%.

Limited Interest Rate Risk

Unhedged fixed-rate assets cannot exceed 5% of the portfolio
while there are 2.65% fixed-rate liabilities. Therefore the
interest rate risk is partially hedged.

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's
ratings and Recovery Ratings.

Limited FX Risk

The transaction is allowed to invest up to 30% of the portfolio
in non-euro-denominated assets, provided these are hedged with
perfect asset swaps at settlement.

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 remaining 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 Recognized 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.

SOURCES OF INFORMATION

The information here was used in the analysis.

  - Loan-by-loan data provided by Goldman Sachs International as
at June 18, 2018

  - Draft offering circular provided by Goldman Sachs
International as at July 27, 2018


DRYDEN 52 2017: S&P Affirms B- (sf) Rating on Class F Notes
-----------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Dryden 52 Euro
CLO 2017 B.V.'s class A-1 to F notes.

Since the transaction closed in July 2017, the portfolio's
weighted-average rating has remained at the 'B' level and the
transaction has built approximately EUR1.4 million of par above
its target par level.

The portfolio's weighted-average spread reported by the trustee
as of June 2018 is 4.07% and the weighted-average coupon is
4.53%. The portfolio's weighted-average life decreased to 5.81
years from 6.32 years.

S&P said, "We have performed a credit and cash flow analysis by
applying our corporate collateralized debt obligation (CDO)
criteria and our criteria for assigning 'CCC' category ratings.
Taking into account the transaction's current performance and the
results from our credit and cash flow analysis, in our view the
notes are able to withstand our credit and cash flow stresses at
their current rating levels. We have therefore affirmed our
ratings on all classes of notes."

Dryden 52 Euro CLO 2017 is a European cash flow collateralized
loan obligation (CLO) transaction, comprising euro-denominated
senior secured loans and bonds issued by European borrowers. PGIM
Ltd. is the collateral manager. The reinvestment period ends in
August 2021.

  RATINGS LIST

  Class          Rating
  Dryden 52 Euro CLO 2017 B.V.
  EUR415.7 Million Fixed- And Floating-Rate Notes (Including
  Subordinated Notes)

  Ratings Affirmed
  A-1            AAA (sf)
  B-1            AA (sf)
  B-2            AA (sf)
  C-1            A (sf)
  C-2            A (sf)
  D              BBB (sf)
  E              BB (sf)
  F              B- (sf)


DRYDEN 63 2018: Moody's Assigns (P)B2 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Dryden 63
GBP CLO 2018 B.V.:

GBP171,000,000 Class A-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aaa (sf)

GBP9,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2032,
Assigned (P)Aaa (sf)

GBP29,100,000 Class B-1 Senior Secured Floating Rate Notes due
2032, Assigned (P)Aa2 (sf)

GBP14,400,000 Class B-2 Senior Secured Fixed Rate Notes due 2032,
Assigned (P)Aa2 (sf)

GBP17,300,000 Class C-1 Mezzanine Secured Deferrable Floating
Rate Notes due 2032, Assigned (P)A2 (sf)

GBP911,000 Class C-2 Mezzanine Secured Deferrable Fixed Rate
Notes due 2032, Assigned (P)A2 (sf)

GBP16,450,000 Class D Mezzanine Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Baa2 (sf)

GBP23,800,000 Class E Mezzanine Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)Ba2 (sf)

GBP11,400,000 Class F Mezzanine Secured Deferrable Floating Rate
Notes due 2032, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

Moody's provisional ratings of the rated notes address the
expected loss posed to noteholders by the legal final maturity of
the notes in 2032. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, PGIM Limited has
sufficient experience and operational capacity and is capable of
managing this CLO.

Dryden 63 is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and senior secured
bonds. The portfolio is expected to be at least 67% ramped up as
of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

Dryden 63 is permitted to purchase up to 80% of assets which are
not denominated in GBP. It is a requirement that non GBP assets
are hedged with a perfect asset swap from the commitment date,
with the exception of 5% which are primary market obligations.
For these 5%, the hedging should take place either on the
settlement date or six months from the settlement date depending
on the currency of the assets. In addition to the global
portfolio limit on non GBP assets, Dryden 63 is also subject to
limitation with regards to the swap counterparty credit risk.
Moody's preliminary analysis of the hedging risks is based on the
information and documentation provided so far and may differ upon
a conclusive review of the final documentation.

PGIM Limited will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four year and one month
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit risk and credit improved
obligations, and are subject to certain restrictions. In
addition, purchases are permitted using scheduled principal
proceeds and proceeds from discretionary sales (committed to sale
prior to the end of the reinvestment period) during the first
period after the reinvestment period. Those purchases are also
subject to certain restrictions.

In addition to the nine classes of notes rated by Moody's, the
Issuer will issue GBP42.4 M of Subordinated Notes which will not
be rated.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

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

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

Par amount: GBP 325,000,000

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2900

Weighted Average Spread (WAS): 4.19%

Weighted Average Coupon (WAC): 5.06%

Weighted Average Recovery Rate (WARR): 40.25%

Weighted Average Life (WAL): 8.75 years

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 LCC of A1 or below cannot exceed 10%, with
exposures to LCC of Baa1 or below limited to 0%.

Stress Scenarios:

Together with the set of modelling 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.

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

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

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

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

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

Class C-2 Mezzanine Secured Deferrable Fixed Rate Notes: -2

Class D Mezzanine Secured Deferrable Floating Rate Notes: -2

Class E Mezzanine Secured Deferrable Floating Rate Notes: -1

Class F Mezzanine Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3777 from 2900)

Ratings Impact in Rating Notches:

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-1 Mezzanine Secured Deferrable Floating Rate Notes: -4

Class C-2 Mezzanine Secured Deferrable Fixed Rate Notes: -4

Class D Mezzanine Secured Deferrable Floating Rate Notes: -2

Class E Mezzanine Secured Deferrable Floating Rate Notes: -2

Class F Mezzanine Secured Deferrable Floating Rate Notes: -3


INTERGEN NV: S&P Hikes Issuer Credit Rating to B+, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on InterGen
N.V. to 'B+' from 'B'. The outlook is stable.

At the same time, S&P raised its issue-level rating on the
company's senior secured debt to 'B+' from 'B'. The '3' recovery
rating remains unchanged, indicating its expectation for
meaningful (50%-70%; rounded estimate: 55%) recovery in the event
of a default.

The upgrade reflects InterGen's improved financial position
following the significant debt paydown it completed with the
proceeds from the the sale of its Mexican assets. In April 2018,
InterGen sold all of its Mexican assets, or about 2.2 gigawatts
(GW) of the company's 5.1 GW capacity, to Actis at an enterprise
value of $1.26 billion. The sale implied a significant loss of
contracted cash flow for InterGen, thereby leaving the company
more exposed to volatile merchant energy margins. The company
used the $857 million of net sale proceeds to repay $760 million
of its outstanding debt. Currently, the company has about $566
million of adjusted debt outstanding (per S&P's Ratios and
Adjustments Methodology), which is materially lower than we had
previously anticipated. Accordingly, S&P now expects InterGen to
maintain an adjusted debt-to-EBITDA metric of about 4.1x in the
near term, which led it to reassess its financial risk as
aggressive, one notch better than the previous assessment.

S&P said, "The stable outlook on InterGen reflects our
expectation that the company will maintain adjusted debt-to-
EBITDA of around 4.1x and a FFO-to-debt ratio of around 14% in
the near-term following the successful sale of its Mexican assets
and the $760 million debt repayment it completed in the second
quarter of 2018. We also expect all of the company's assets in
both the U.K. and Australia to maintain stable operating
performances.

"We could lower our rating on InterGen if the company's leverage
exceeds 5x. This could occur because of unexpected declines in
U.K. or Australian electricity prices or higher-than-expected gas
prices in the U.K. Increased market volatility or new coal
regulations in Australia could also negatively affect the rating.

"We could raise our rating on InterGen if the company reduces its
leverage below 4.0x on a sustained basis, the prices in its core
markets stabilize, and we come to believe that its portfolio will
have a greater level of future cash flow visibility."


MUNDA CLO I: S&P Lowers Class E Notes Rating to CCC (sf)
--------------------------------------------------------
S&P Global Ratings took various rating actions in Munda CLO I
B.V.

S&P said, "The rating actions follow our review of the
transaction's performance. We conducted a credit and cash flow
analysis and assessed the support that each participant provides
to the transaction by applying our current counterparty criteria.
In our analysis, we used data from the June 2018 investor report.

"The available credit enhancement has increased for all of the
rated classes of notes (except the most junior rated class E
notes), driven by the deleveraging of the senior notes following
the end of the reinvestment period in January 2014. Although the
class E notes benefit from turbo redemption and the senior notes'
deleveraging, higher defaults leading to losses have resulted in
a fall in credit enhancement for this classes of notes.

"The portfolio's sovereign exposure is within the allowable
thresholds under our structured finance ratings above the
sovereign (RAS) criteria, except for the exposure to Spain. The
current exposure to assets from Spain is about 20% of the pool,
which is higher than the 15% threshold in our RAS criteria. In
our analysis, we have stressed this excess exposure using our CDO
Evaluator model.

"We determined the scenario default rates (SDRs) by running the
asset portfolio through the CDO Evaluator model, which is an
integral part of our methodology for rating and monitoring
collateralized loan obligation (CLO) transactions. Through a
Monte Carlo simulation, the CDO Evaluator assesses a portfolio's
credit quality, taking into consideration each asset's credit
rating, size, and maturity, and the estimated correlation between
each pair of assets. The portfolio's credit quality is presented
in terms of a probability distribution for potential portfolio
default rates."

From this probability distribution, the CDO Evaluator derives a
set of SDRs, each of which identifies the minimum level of
portfolio defaults each CLO tranche is expected to be able to
withstand to support a specific rating level. S&P then compare
the SDRs to the results generated in its cash flow analysis for
each rated tranche within the CLO transaction.

S&P said, "Although the SDRs generally reflect the amount of
credit support required at each rating level based on the
portfolio's credit characteristics, we use our proprietary cash
flow model to determine the applicable percentile break-even
default rate (BDR) for each tranche, given the stresses specified
by its criteria for generating cash flow analysis at various
rating levels.

"The cash flow analysis and BDRs take into account the
transaction's capital structure, interest and principal diversion
mechanisms, payment mechanics, and general characteristics of the
portfolio collateral. For each rated tranche, the BDRs represent
an estimate of the maximum level of gross defaults--based on our
cash flow stress assumptions--that a tranche can withstand and
still fully repay the noteholders.

"We also applied supplemental tests outlined in our corporate
collateralized debt obligation (CDO) criteria (the largest
obligor default test and the largest industry default test).
These supplemental tests are additional quantitative elements in
our analysis that are separate and distinct from the Monte Carlo
default simulations we run in the CDO Evaluator and the cash flow
analysis generated for each transaction. The tests are intended
to address both event and model risks that may be present in
rated transactions.

"Taking into account the results of our credit and cash flow
analysis, the transaction's current performance, and the
application of the supplemental tests, we have affirmed our 'AAA
(sf)' ratings on the class A-1 and A-2 notes as they are
commensurate with the available credit enhancement.

"In our view, the class A-1 and A-2 notes will fully redeem in
the short term, following which the class B notes will be the
most senior class of notes. Additionally, the available credit
enhancement for the class B notes has increased since our
previous review. We have therefore raised to 'AAA (sf)' from 'AA+
(sf)' our rating on this class of notes.

"Following the increased credit enhancement for the class C
notes, the cash flows pass at a higher rating than that currently
assigned. However, the transaction's deleveraging has increased
the concentration risk, and the supplemental test output now
shows a lower ratings cap on this class of notes. Taking into
account the available credit enhancement, the higher weighted-
average rating on the asset portfolio, and other positive
developments in the transaction's performance, we have affirmed
our 'A+ (sf)' rating on the class C notes.

"The increased concentration risk has also resulted in a lower
rating cap for the class D and E notes based on the supplemental
tests. While the available credit enhancement for the class D
notes is commensurate with the currently assigned rating, we have
lowered it to 'BB- (sf)' from 'BB+ (sf)' to account for the
increased portfolio concentration. That said, as the average pool
quality is better compared with other amortizing CLOs that we
rate, we have made a qualitative assessment when lowering our
rating on this class of notes, rather than following the
supplemental tests' ratings output.

"With losses from defaults eroding available credit enhancement
on the most junior classes of notes, the cash flows for the class
E notes do not pass even at the lowest performing ratings.
Consequently, we have lowered to 'CCC (sf)' from 'CCC+ (sf)' our
rating on the class E notes. In line with our 'CCC' ratings
criteria, we believe that payment on this class of notes is
dependent upon favorable business, financial, and economic
conditions."

Munda CLO I is a managed cash flow CLO transaction that
securitizes loans to primarily European speculative-grade
corporate firms. The transaction closed in December 2007 and is
managed by Cohen & Co. Financial Ltd.

  RATINGS LIST

  Munda CLO I B.V. EUR650 Million Senior Secured Floating-Rate
  And Deferrable Notes

  Class            Rating
               To             From

  Rating Raised

  B            AAA (sf)       AA+ (sf)

  Ratings Lowered

  D            BB- (sf)       BB+ (sf)
  E            CCC (sf)       CCC+ (sf)

  Ratings Affirmed

  A-1          AAA (sf)
  A-2          AAA (sf)
  C            A+ (sf)


===========
S E R B I A
===========


HIP AZOTARA: Serbia's Government Files Bankruptcy Petition
----------------------------------------------------------
SeeNews reports that Serbia's government said it has filed for
bankruptcy of state-controlled fertiliser maker HIP Azotara after
its attempts to find a strategic investor failed.

The economy ministry has requested the State Attorney Office to
initiate bankruptcy procedures of Azotara, the Serbian government
said in a statement on the 30-month Policy Coordination
Instrument-supported program it had agreed on with the
International Monetary Fund (IMF), SeeNews relays, citing a
document posted on the website of the Fund on July 24.

The government said the attempts to find a strategic investor for
Azotara by the end-March deadline set by the government had
failed, SeeNews relates.

Earlier this month, energy minister Aleksandar Antic said the
government plans to launch insolvency proceedings and sell the
assets of loss-making Azotara, in line with the government's
commitments to the IMF and to the Serbian citizens, SeeNews
recounts.

Mr. Antic, as cited by SeeNews, said the assets of Azotara will
be put up for sale which will enable the new owners to reorganize
the production activities without worrying about outstanding
liabilities.



=============
U K R A I N E
=============


ODESSA CITY: Fitch Affirms 'B-' LT IDRs, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed the Ukrainian City of Odessa's Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'B-'. The Outlooks are Stable.

The ratings continue to be constrained by Ukraine's sovereign
ratings (B-/Stable/B) and the weak institutional framework
governing Ukrainian local and regional governments. Positively,
the ratings take into account Fitch's expectations that the city
will maintain its sound operating results over the medium term.
The ratings further take into account Odessa's expected low
direct debt over the medium term, as well as low contingent
liabilities stemming from guarantees issued to municipal
companies.

KEY RATING DRIVERS

Institutional Framework Assessed as Weakness/Stable
The institutional framework governing Ukrainian subnationals is
characterised by political risks, particularly ahead of national
elections in 2019. The challenging reform agenda arising from
Ukraine's IMF programme to secure external funding led to
continued financial decentralisation, which resulted in frequent
changes to the allocation of revenue sources and spending
responsibilities for subnationals. A high inflation environment
(24.7% per year on average in 2015-2017) and frequent raises in
interest rates make forecasting subnationals' budgets, debt and
investments challenging.

Fiscal Performance Assessed as Neutral/Stable

Fitch projects Odessa's operating margin to remain close to 20%
in 2018-2019, in line with the 2017 result (20.3%). It will be
supported by expected tax revenue growth, which is the city's
main current revenue source (57% in 2017), outpacing inflation
and current cost restraint. The 1Q18 results show tax revenue
slightly exceeding the budget, while main spending items were
just below budget.

Odessa has large investment needs stemming from all areas of the
city's responsibilities (infrastructure, public transport,
housing, and waste management etc). Fitch assumes that the city
will spend at least 20% of total expenditure on investments, ie
around UAH2.3 billion annually in 2018-2019. Capital expenditure
in 2017 was historically high at UAH3.1 billion. Consequently the
city reported a high budget deficit of around 10% of total
revenue, which it covered with cash and new debt.

Debt and Other Long-Term Liabilities Assessed as Neutral/Stable
Fitch expects Odessa's direct debt to remain low in the medium
term, although it may rise to about 9% of current revenue (UAH900
million) in 2018 from about 6% in 2017 (UAH509 million). The city
is drawing down a five-year loan from a local bank, leaving an
outstanding UAH612.4 million under the loan at end-June 2018. The
loan outstanding can be increased to a maximum UAH1 billion by
October 2018. The loan has fixed interest costs and a smooth
repayment schedule with quarterly instalments.

Fitch expects Odessa's net overall risk, including guarantees
issued to municipal companies, to remain low at around 13% of
current revenue in 2018-2019 (2017: 15.2%). At end-2017, the
value of these guarantees totalled UAH981 million. The guaranteed
loans were provided by EBRD and IBRD (World Bank Group) in euros
and US dollars with final maturity in 2027-2028. For 2018 the
city plans to provide subsidies of about UAH860 million to its
companies, compared with UAH1.3 billion in 2017. The city injects
capital to fund investments, loans repayments and cover
companies' losses.

Management and Administration Assessed as Neutral/Stable
The city authorities' main priority is to support the dynamic
growth of the city, by making it attractive to investors and
inhabitants. The authorities follow a policy of gradually
increasing local tax rates for the city's inhabitants and fees
for public services, and strive to increase efficiency in service
delivery.

Odessa's administration is prudent in its budgetary policy and
its financial goal is to maintain an operating surplus that
allows it to secure funding for the city's investment needs. The
city's credit policy foresees medium- and long-term financing
from local and international financial institutions with smooth
repayment schedules. The administration exercises strong
oversight over the city's companies.

Economy Assessed as Weakness/Stable

Odessa is the third-largest city in Ukraine and its key port at
the Black Sea. Besides the maritime and tourist industries the
city is one of the country's key scientific, industrial and
cultural centres. Its economy is diversified across services and
manufacturing. In 2017 Ukraine's economy grew 2.5% and Fitch
expects growth to accelerate to 3.2%-3.5% per year in 2018-2019,
which should strengthen the city's economic prospects. However,
the wealth indicators of Ukraine and Odessa are weak by
international comparison, with a national GDP per capita of
USD2,193 in 2016.

RATING SENSITIVITIES

The city's ratings are constrained by those of the sovereign.
Positive rating action on Ukraine will lead to corresponding
action on Odessa's ratings, provided the city's credit profile
remains unchanged.

A material increase in the city's net overall risk and a
significant deterioration in the city's financial flexibility
could lead to negative rating action.


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


FORCE INDIA: Explores Future Options, Operations to Continue
------------------------------------------------------------
Alan Baldwin at Reuters reports that administrators for Force
India said on July 28 the Formula One team would continue to
operate as normal while future options were assessed.

The team, co-owned by Indian businessman Vijay Mallya, went into
administration on July 27 after a High Court hearing in London,
Reuters relates.

"We shall be engaging with key stakeholders on an urgent basis to
secure the best outcome for creditors," Reuters quotes the joint
administrator Geoff Rowley in a statement issued by FRP Advisory,
as saying.

"In the meantime, the team will continue to operate as normal,
including racing in Hungary this weekend.

"Our aim is for business as usual whilst we assess options to
secure the future of the team."

Force India's drivers are Mexican Sergio Perez and Frenchman
Esteban Ocon, who is backed by engine provider Mercedes, Reuters
discloses.

A well-placed source told Reuters that Ocon, who has been linked
to a move to Renault, was now a free agent under the terms of the
administration.

The legal action was triggered by Mr. Perez, supported by
Mercedes and sponsor BWT who are all owed millions by the
Silverstone-based team, Reuters notes.

The racefans.net website cited court documents in which Mr.
Perez's legal team claimed Force India "is or is likely to become
unable to pay its debt" and its parent company "are unlikely to
be able to provide financial support", Reuters relays.


HARVEYSON HAULAGE: Trading Difficulties Prompt Administration
-------------------------------------------------------------
Business Sale reports that Harveyson Haulage Ltd., a Norfolk-
based haulage business, has been forced to call in administrators
as a result of "historic trading difficulties".

The company brought in corporate insolvency practitioners
Quantuma on July 18, and appointed partners Simon Campbell --
simon.campbell@quantuma.com -- and Andrew Watling --
andrew.watling@quantuma.com -- as joint administrators, Business
Sale relates.

According to Business Sale, a buyer is now being sought for the
business, located in East Harling, Norwich, as it continues to
trade.

The business operates in a number of areas in Norfolk, including
Attleborough, Wymondham, Watton, Long Stratton and Scole.  All 17
members of staff have been kept on board during the
administration process, Business Sale notes.

"Harveyson Haulage Ltd was founded in 2006 and the turnover of
the company has reached GBP2 million, but the business was the
subject of a winding up petition from HMRC due to historic
trading difficulties, and Quantuma have been appointed to trade
and sell a fundamentally viable business," Business Sale quotes
Mr. Campbell, who is also Quantuma's director, as saying.


HOUSE OF FRASER: Advisers in Rescue Talks with Mike Ashley
----------------------------------------------------------
Mark Kleinman at Sky News reports that advisers to House of
Fraser (HoF) are courting Mike Ashley, the Sports Direct tycoon,
to fund an emergency GBP50 million deal to stave off the ailing
department store chain's collapse.

Sky News has learnt that bankers acting for the retailer, which
is trying to force through the closure of dozens of shops and
thousands of jobs being axed, held initial talks with Mr.
Ashley's executives late last week.

According to Sky News, a source close to HoF said on July 30 that
Rothschild, which is advising HoF, had been approached by Mr.
Ashley about providing new funding, potentially in the form of a
loan or equity injection.

In a letter from Sports Direct dated July 2 which has been seen
by Sky News, the company told HoF that it "would like to look at
making an alternative offer".

The move follows the disclosure that a GBP70 million capital
injection into HoF from the Chinese owner of Hamleys, the toy
store, would be delayed for several months, Sky News notes.

Sources said that a secured loan from Mr. Ashley's Sports Direct
International, which owns an 11% stake in HoF, was one of a
number of options now being explored, Sky News relates.

In its letter earlier this month, Sports Direct, as cited by Sky
News, said it was "willing to structure a transaction on similar
terms (subject to due diligence to confirm the level of
investment/cash injection required".

Mr. Ashley's company added that it had cash resources available
for investment and the ability to support HoF in areas such as
"warehousing, online sales and the running of the business
generally", Sky News relays.

A number of other parties, including unnamed financial investors,
have also been approached, although the status of the talks is
unclear, Sky News states.

The department store group, which traces its roots back to 1849,
is understood to be seeking new financing within the next four
weeks, according to Sky News.

People close to HoF believe it is likely to collapse into
administration without such support, putting 17,000 jobs at risk,
Sky News discloses.


HOUSE OF FRASER: S&P Lowers Long-Term Issuer Credit Rating to SD
----------------------------------------------------------------
S&P Global Ratings said that it lowered its long-term issuer
credit rating on U.K. department store retailer House of Fraser
(UK & Ireland) Ltd. to 'SD' (selective default) from 'CCC+'.

S&P said, "At the same time, we lowered our long-term issue
rating on the group's GBP175 million senior secured floating-rate
notes (of which GBP164.9 million remain outstanding) to 'D' from
'CCC+'. We removed all the ratings from CreditWatch with negative
implications where we placed them on June 15, 2018."

Under House of Fraser's recently approved schemes of arrangement,
lenders have given their consent to make certain amendments to
the terms of the group's existing capital structure. As part of
the schemes, the group requested to extend the maturities of both
its bonds and bank facilities to October 2020 in exchange for an
extension fee of 1% of outstanding principal.

Without the implementation of the schemes, House of Fraser would
likely have faced a liquidity crisis on or immediately after July
29, 2018, when interest and GBP26.1 million of principal were due
under the group's banking facilities. In light of this liquidity
pressure -- as well as the company's weak performance over the
past year and its ongoing operational restructuring -- S&P
considers the schemes a distressed exchange transaction and
therefore akin to a default, as per our definition.

S&P said, "We also believe the challenge lodged by a selection of
landlords against the group's Company Voluntary Arrangement
presents a material test to the company's restructuring plans and
could delay the injection of GBP70 million of new equity capital
expected as part of C.Banner's acquisition of a majority stake in
the group. We expect to review the issuer credit rating in the
next few days. Our analysis will incorporate the company's
revised capital structure, liquidity position and the impact of
this legal challenge. Based on our preliminary assessment, we
expect to raise the issuer credit rating, but likely to a level
no higher than 'CCC'."


NORDIC PACKING: Moody's Downgrades CFR to B2, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Nordic Packaging and Container Holdings Limited to B2
from B1, its probability of default rating (PDR) to B2-PD from
B1-PD, as well as the rating of the senior secured first lien
facilities issued by its guaranteed subsidiary Nordic Packaging
and Container (Finland) Holdings Oy to B2 from B1. The outlook is
now stable.

This rating action concludes the review for downgrade process
initiated on January 9, 2018, which followed NPAC signing an
agreement to sell 100% of the outstanding shares of Powerflute
Group Holdings Oy, the owner of its semi-chemical fluting
activity (Powerflute), to Mondi Plc (Baa1 stable) for a total
consideration of EUR365 million on a cash free - debt free
enterprise value basis. The closing of the transaction took place
on June 1, 2018.

"Today's downgrade is primarily driven by the fact that the sale
of the Powerflute business will lead to a meaningful reduction of
NPAC's scale, diversification and profitability, while leverage
will remain material", says Martin Fujerik, lead analyst for
NPAC.

RATINGS RATIONALE

RATIONALE FOR DOWNGRADE

With the sale of the Powerflute business, NPAC will lose roughly
50% of its EBITDA generation. The remaining coreboard and cores
business (Corenso), one of the world's leading producers of high
performance cores and coreboards for a wide range of end markets
sold under the brand Corenso, generated around EUR230 million
revenues and EUR33 million of EBITDA (excluding central and IT
costs) in 2017, which makes NPAC clearly one of the smallest
issuers in the Moody's rated universe of paper and forest
products companies. The substantial reduction of scale will also
make NPAC's leverage more sensitive to any future absolute
changes in EBITDA, even though volatility of Corenso's EBITDA
generation over the last three years was fairly limited.

The transaction will also negatively impact NPAC's fairly high
profit margins, as the Powerflute business has been historically
more profitable than Corenso. Moody's estimates that Moody's
adjusted EBITDA margin will reduce from around 16% during 2017 in
the old perimeter to roughly 13-14% in 2018, depending on NPAC's
ability to reduce central costs following the disposal.

In addition, the impact of the lower scale, diversification and
profitability might not be fully offset by a reduction of
financial leverage. While Moody's notes that the final
application of the proceeds has not been established yet, based
on EUR27 million EBITDA Corenso achieved for the 12 months to
April 2018 (including EUR8 million central and IT costs
pertaining to the previous perimeter including Powerflute), the
rating agency estimates that NPAC would need to repay roughly
EUR160 million debt to get to a pro-forma reported net leverage
of 4.0x specified in the loan documentation.

Depending on the company's ability to address central and IT
costs and achieve further efficiency improvements, Moody's
estimates that NPAC pro-forma Moody's adjusted debt/EBITDA would
most likely range between 4.5x-5.0x. This would provide the
company with the capacity for future releveraging, which is
possible although rectricted by the debt documentation. NPAC's
management targets a roughly 50% reduction of IT and central
costs and further operational improvements possible leading to
savings up to EUR3 million per annum.

RATIONALE FOR STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that over
the next 12-18 months NPAC will operate with a Moody's-adjusted
EBITDA margin of around 13% - 14% and Moody's-adjusted
debt/EBITDA between 4.5x and 5.0x, which would position the
company solidly in the B2 category.

WHAT COULD CHANGE THE RATING UP/DOWN

NPAC's ratings may be downgraded in the event of deterioration in
the operating performance, reflected in (1) Moody's adjusted
gross debt/EBITDA above 5.5x for a sustained period, or (ii)
Moody's adjusted EBITDA margin moving sustainably towards 10%.
The ratings could also be downgraded if the company recorded
negative free cash flow and if liquidity weakened.

Upgrade of NPAC's ratings will primarily require the company to
materially increases its scale and diversification. The upgrade
would also require: (1) a track record of financial policies
leading to Moody's adjusted gross debt/EBITDA sustainably below
4.5x, (ii) further improvement of EBITDA margin (Moody's
adjusted) sustainably above 15%, and (iii) maintenance of
consistent material free cash flow generation, with a solid
liquidity profile.

The principal methodology used in these ratings was Paper and
Forest Products Industry published in March 2018.



                            *********

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-
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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
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