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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

           Thursday, August 2, 2018, Vol. 19, No. 152


                            Headlines


A Z E R B A I J A N

AZERBAIJAN: S&P Affirms 'BB+/B' Sovereign Credit Ratings


C Y P R U S

BANK OF CYPRUS: S&P Affirms 'B/B' Issuer Credit Ratings


C Z E C H   R E P U B L I C

H-SYSTEM: Czech Government to Deal with Bankruptcy Case


G E R M A N Y

PLATIN 1426: Moody's Rates New EUR100MM Sr. Sec. Notes B3 - LGD4


G R E E C E

GREECE: Eurozone May Have to Provide More Long-Term Debt Relief
WIND HELLAS: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable


I R E L A N D

ADAGIO VII: Moody's Assigns (P)B2 Rating to Class F Notes
CADOGAN SQUARE VIII: S&P Affirms B- (sf) Rating on Class F Notes
HALCYON LOAN 2017-1: S&P Affirms B- (sf) Rating on Class F Notes


L U X E M B O U R G

HLF FINANCING: Moody's Assigns Ba1 Rating to Sr. Sec. Facilities


M A L T A

FIMBANK PLC: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable


N E T H E R L A N D S

BARINGS EURO 2016-1: Moody's Assigns B2 Rating to Class F-R Notes
BARINGS EURO 2016-1: Fitch Assigns 'B-sf' Rating to Cl. F-R Debt
DRYDEN 63: S&P Assigns Prelim B- (sf) Rating to Class F Notes
EURO-GALAXY IV: S&P Affirms B- (sf) Rating on Class F-R Notes


R O M A N I A

* ROMANIA: Number of Liquidated Companies Up 1.19% in 1H 2018


R U S S I A

HMS GROUP: Fitch Affirms 'B+' IDRs, Outlook Stable
SISTEMA PJFSC: S&P Affirms B+ Issuer Credit Rating


S P A I N

CAIXABANK CONSUMO 3: DBRS Confirms CC Rating on Series B Notes


T U R K E Y

* TURKEY: Banks Propose Rules to Speed Up Debt Restructuring


U N I T E D   K I N G D O M

GEMGARTO 2018-1: Moody's Assigns Ca Rating to Class X Notes
NATIONAL GAS: Licenses Revoked Following Default, Halts Trading
RESLOC UK 2007-1: S&P Raises Class E1b Notes Rating to BB (sf)
TOWD POINT 2018-AUBURN: DBRS Puts BB(low) Rating to Cl. E Notes


X X X X X X X X

* DBRS Extends Review of 33 Tranches From 17 Finance Transactions


                            *********



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A Z E R B A I J A N
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AZERBAIJAN: S&P Affirms 'BB+/B' Sovereign Credit Ratings
--------------------------------------------------------
On July 27, 2018, S&P Global Ratings affirmed the long- and
short-term foreign and local currency sovereign credit ratings on
Azerbaijan at 'BB+/B'. The outlook on the long-term ratings is
stable.

OUTLOOK

S&P said, "The stable outlook indicates our view of balanced
risks to the ratings over the next 12 months.

"We could lower the ratings if Azerbaijan's economic prospects
weakened compared to our present forecast. This could happen, for
example, as a result of delays affecting the Shah Deniz II (SDII)
gas project, leading to reduced investments and ultimately lower
exports. It could also occur if oil production declined
substantially faster than expected.

"We could also lower the ratings if external vulnerabilities were
to escalate, resulting for instance in a decline in central bank
reserves, or if domestic political risks increased in response to
a significant recent decline in real incomes, possibly
restricting the government's ability to control spending.

"We could consider an upgrade if there were greater
diversification in the economy over time, in particular in
Azerbaijan's export profile."

RATIONALE

S&P's ratings on Azerbaijan are still primarily supported by the
sovereign's strong fiscal position, underpinned by the large
stock of foreign assets accumulated in the sovereign wealth fund,
SOFAZ. The ratings are constrained by weak institutional
effectiveness, the narrow and concentrated economic base, limited
monetary policy flexibility, and only partial and less-than-
timely data on Azerbaijan's international investment position.

Institutional and Economic Profile: Moderate recovery in economic
growth rates

-- In April 2018, Azerbaijan held early presidential elections,
    with the incumbent president Ilham Aliyev securing 86% of the
    vote.

-- In S&P's view, Azerbaijan's institutions remain weak and we
    expect limited policy changes in the election aftermath.

-- Economic growth will moderately recover but remain dependent
    on oil industry trends and public investment.

In April 2018, Azerbaijan held early presidential elections,
which were originally planned for October 2018. The incumbent
president Ilham Aliyev -- who has been in power since succeeding
his father in 2003 -- secured 86% of the vote. Following the
September 2016 constitutional amendments, Aliyev is now entitled
to serve a seven-year term.

S&P said, "We expect limited changes in policy direction
following the elections. We note that Azerbaijan's institutions
remain weak. They are characterized by highly centralized
decision-making and lack transparency, making future policy
responses difficult to predict. Political power remains
concentrated around the president and his administration, with
limited checks and balances in place, which poses risks, in our
view.

"In addition, we see geopolitical risks stemming from the
unresolved dispute with Armenia over the Nagorno-Karabakh region.
The conflict last flared up in 2016, and we do not expect it to
escalate again in the medium term. The prospects of its
resolution, however, also currently seem remote.

"In our view, Azerbaijan has passed the bottom of the cyclical
downturn induced by the 2014 plunge in oil prices. Over 2016-
2017, growth was held back by the decline in oil production,
cautious public investment, and weak consumption dynamics in the
aftermath of a material weakening of the Azerbaijani manat,
adversely impacting confidence and purchasing power.

"We expect the country's economic performance to gradually shift
over the next few years, and we forecast average growth of 3%
through 2021. Growth should be supported by a steady recovery in
consumption and a cautious increase in business confidence. We
also note that the large SDII gasfield project, which will see
Azeri gas delivered first to Turkey and then to Europe, was
officially launched in early July, in line with the planned
schedule. We expect that, over the next four years, gas exports
will gradually rise as the project reaches full capacity, which
should support broader economic dynamics."

Longer term, S&P also sees some positive momentum given the
recent amendment of the production-sharing agreement (PSA) for
the biggest oilfield in Azerbaijan--the ACG field. The amended
PSA now extends to 2050 and foreign investors will likely invest
significant resources in the field, which should help sustain
production levels. Nevertheless, and importantly, projected
growth rates will still be markedly lower than before 2011. This
is primarily due to the following:

-- Although under the amended PSA more investments will flow
    into the ACG field, production decline is still likely, given
    natural factors, such as the age of the field. This is in
    contrast to pre-2011, when oil production was steadily
    increasing.

-- Gas exports at present constitute about 2% of the republic's
    goods exports. Following the launch of SDII, it is estimated
    that the volume of gas exports will triple in the next few
    years. Even so, given the low starting base, the economic
    impact will be somewhat contained.

-- Even though the non-oil sector should benefit from weaker
    exchange rates, S&P does not forecast substantial growth.
    Diversifying a resource-dependent economy tends to be long
    and complex and, in S&P's view, Azerbaijan's comparatively
    poor business environment will play a negative role. S&P does
    not anticipate significant structural reforms over the next
    few years.

Flexibility and Performance Profile: A strong public balance
sheet partly offsets the weak banking sector and limited monetary
flexibility

-- The strength of Azerbaijan's fiscal balance sheet is the main
    factor supporting the ratings.

-- S&P expects that the higher oil prices will help keep fiscal
    and external balances in surplus throughout the next four
    years.

-- Monetary policy effectiveness remains significantly
    constrained by the weak domestic banking system,
    underdeveloped capital markets, high dollarization, and lack
    of operational independence by the Central Bank of Azerbaijan
    (CBA).

S&P said, "Azerbaijan's strong fiscal balance sheet is still the
main factor supporting the sovereign ratings. It is underpinned
by the large foreign assets accumulated in the sovereign wealth
fund, SOFAZ. Our calculations only count SOFAZ's liquid assets,
excluding the 20% of GDP equivalent exposures that might be hard
to liquidate in a downside scenario, such as the fund's domestic
investments and certain equity exposures. Even so, we forecast
SOFAZ's assets will amount to about 60% of GDP at year-end 2018,
and the sovereign will remain in an overall net-asset position
averaging 38% of GDP over the four-year forecast horizon.

"During that time period, the net-asset position will be
underpinned by the recurrent general government surpluses. In May
2018, we revised upwards our oil price assumptions for 2018 and
2019 (see "S&P Global Ratings Raises 2018 Brent And WTI Oil Price
Assumptions And 2019 Brent Price Assumptions," published on May
7, 2018, on RatingsDirect). Consequently, we now project that
Azerbaijan will post fiscal surpluses averaging 3% of GDP in
these years. This compares to our previous forecast of surpluses
of 1% of GDP.

"We project a stronger budgetary outcome for 2018 than in the
official government forecast. The current year's budget was
originally based on the price of oil of $45 per barrel. However,
in June 2018, in light of higher prevailing spot prices, the
budget was amended in Parliament to raise both revenue and
expenditure assumptions. The amended budget foresees a 2% of GDP
surplus for 2018. In contrast, we anticipate a surplus of 4% of
GDP. This mainly reflects differences in expenditure
expectations. In the past, budgeted spending has often fallen
short of the initial targets and we believe this could happen
again in 2018.

"We do not expect a substantial impact on the general government
budget from the launch of SDII and its expansion over the next
few years. This is because Azerbaijan will mostly use the profits
from planned gas exports to pay down the debt of the Southern Gas
Corridor -- a government special-purpose vehicle that financed a
substantial part of the project and received foreign financing
with government guarantees.

"Nevertheless, over the medium term, Azerbaijan will benefit from
the amended profit-sharing agreement reached last year for the
main Azeri-Chirag-Gunashli oilfield. In addition to the potential
production expansion, the contract provisions Azerbaijan to
receive a bonus payment of $3.6 billion over eight years in equal
instalments, which will be deposited into SOFAZ. We note that the
wealth fund already received the first payment of $450 million at
the end of January. We also take a positive view of the ongoing
adoption of fiscal rules placing limits on the allowed pace of
expenditure growth, although their credibility remains to be
tested.

"In line with stronger projected fiscal performance, we forecast
the stock of general government debt to start declining as a
share of GDP. Over the last two years, it has expanded at a much
faster pace than the headline budgetary balances imply. This is
mainly due to the materialization of contingent liabilities in
the banking system, as the government contributed substantial
resources to the majority state-owned International Bank of
Azerbaijan in 2016. In May 2017, the bank announced its intention
to undertake a debt restructuring to address its weak financial
position. Following the successful exchange, the sovereign
explicitly assumed IBA's liabilities of US$2.3 billion. The
authorities currently plan to privatize IBA, but the timeline and
details remain unclear. We note that the European Bank for
Reconstruction and Development could potentially participate in
the privatization process.

"We believe that most risks for the sovereign from the weak
banking system have already materialized, so we see additional
contingent liabilities as limited. Even though the financial
system remains weak, we forecast it will gradually strengthen in
tandem with improved growth. We also view positively the recent
improvements in supervision. A specialized banking regulator,
FIMSA, has now been set up and has received additional resources
to supervise and oversee banking risks.

"Mirroring the developments on the fiscal side, Azerbaijan's
external position remains strong on a stock basis, and we expect
the country's liquid external assets to exceed external debt for
the foreseeable future. We currently project a gradual
stabilization of external flows, which should help arrest the
previous decline in accumulated buffers. Nevertheless, Azerbaijan
will remain vulnerable to potential terms-of-trade volatility. We
also note the only limited available data for Azerbaijan's
balance of payments and international investment position, which
possibly leads to an underestimation of external risks.

"Our ratings on Azerbaijan remain constrained by the limited
effectiveness of its monetary policy. We believe that the
increased flexibility of the manat exchange rate since 2015 has
helped lessen external pressures and husband foreign exchange
reserves. Since April 2017, the exchange rate has stabilized at
1.7 manat per USD, suggesting interventions in the foreign
exchange (FX) market. Even so, we do not consider the current
arrangement a conventional peg; in our view, should oil prices
become less favorable, the authorities will allow the exchange
rate to adjust promptly in order to avoid the substantial loss of
FX reserves--as happened throughout 2015, still resulting in the
CBA ultimately abandoning the peg in December 2015.

"Nevertheless, apart from setting the country's foreign exchange
regime and making interventions, the CBA's ability to influence
economic developments remains considerably constrained. We
estimate that resident deposit dollarization remains at over 60%,
which in our view severely limits the CBA's attempts to influence
domestic monetary conditions. In addition, Azerbaijan's local
currency debt capital market remains small and underdeveloped,
while CBA's operational independence remains limited.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  RATINGS LIST
  Ratings Affirmed

  Azerbaijan
   Sovereign Credit Rating                BB+/Stable/B
   Transfer & Convertibility Assessment   BB+


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C Y P R U S
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BANK OF CYPRUS: S&P Affirms 'B/B' Issuer Credit Ratings
-------------------------------------------------------
S&P Global Ratings said that it affirmed its 'B/B' long- and
short-term issuer credit ratings on Bank of Cyprus Public Co.
Ltd. (BoC). The outlook is positive. S&P also affirmed its 'B+/B'
long- and short-term resolution counterparty ratings on BoC.

S&P said, "We expect that robust economic recovery, recovering
property prices, ongoing reforms in the legal and judicial
frameworks, and the liquidation of Cyprus Cooperative Bank (CCB)
will help reduce the significant economic imbalances accumulated
by the Cypriot banking system throughout the crisis. Namely, we
now expect Cyprus' exceptionally high stock of problematic assets
will almost halve by end-2018 compared with one year earlier."
This decline will be mostly driven by:

-- The sale of the CCB's state-owned good assets to Hellenic
    Bank, which comes with a government asset protection scheme
    that limits Hellenic's potential losses on the acquired loan
    portfolio;

-- The creation of a government-owned run-off entity that will
    hold the bad assets (of about EUR4 billion, 22% of GDP) from
    the CCB and will be managed privately and independently;

-- Further amendments to the legal and judicial framework in
    order to make it more effective, efficient, and transparent;
    and

-- A specific burden-sharing scheme between banks and the state
    (the so-called "Estia" scheme) to differentiate vulnerable
    borrowers from strategic defaulters.

S&P said, " We believe that these measures will also gradually
improve investors' confidence, which, coupled with sustained and
stable economic growth and some recovery in the real estate
prices, will create more favorable conditions for banks to pursue
their ambitious nonperforming exposure (NPE) reduction plans. We
calculate that Cypriot banks should be able to reduce NPEs by an
additional EUR2.5 billion, reaching an NPE ratio of about 25% by
end-2020 from more than 50% as of end-2017. Moreover, we see
potential for faster NPE reduction through opportunistic market
sales, given pressure from the European regulator to do so, and
investors' increasing appetite for these types of assets.

"We anticipate that over the next two-to-three years, Cypriot
banks will need to accumulate additional credit losses of about
4.0%-5.0% of loans (as of end-March 2018, pro forma of the CCB
transaction) to recognize losses embedded in their NPEs. This is
in addition to losses of about 1% of loans recognized with the
first-time adoption of International Financial Reporting Standard
9. Such a high level of provisions, along with restructuring
costs to reduce the scale of the branch and employee network, and
still very low interest rates and muted volume growth, will
continue to weigh on banks' bottom-line results over the next
two-to-three years.

"We believe that economic risks could eventually ease further for
Cypriot banks, although we see this as a medium-term trend.
Specifically, this could occur if we perceived improvement in
payment culture (one of the structural risks weighing on the
banking system's creditworthiness), and a meaningful reduction of
households' dormant legacy assets (which could indicate that
banks are facing fewer strategic defaulters). Additionally, we
would need to see banks reducing the proportion of re-defaulted
restructured loans while preserving the quality of new lending.

"As a result of the ongoing improvement in banks' asset quality
and decreased economic risks, we now assess Cyprus' Banking
Industry Country Risk Assessment (BICRA) in group '8'. We have
revised upward to 'bb-' from 'b+' our anchor for banks operating
primarily in Cyprus.

"Notwithstanding the improvement we envisage on the Cypriot
banking sector, we affirmed the 'B/B' ratings on BoC. This is
because BoC is lagging behind its peers in improving its business
and financial profile, despite the high 44% decline in the NPE
stock from its peak at December 2014. Asset quality metrics
remain extremely weak, with NPE net of accumulated provisions
accounting for about 2.9x its total adjusted capital (TAC) as of
end-March 2018. We expect the bank will continue working to
reduce its high stock of NPEs, benefiting from a more supportive
economic environment. However, we anticipate that the decline
will only be gradual, with NPEs only falling to about 30% by
2020. This, coupled with BoC's fragile capitalization, exposes
the bank to high risk when implementing its restructuring plan.
Such a high amount of nonperforming loans represents a meaningful
burden for the bank and materially jeopardizes its profitability
and business prospects. We expect the bank's loan book will
continue to generate very high credit losses, at about 6% over
the next two-to-three years.

"These credit losses, coupled with declining operating revenues
owing to falling volumes and margins, will harm BoC's
profitability and capitalization. As such, we expect our measure
of the bank's capital will decline by end-2018 and thereby reduce
the bank's RAC ratio from the calculated 4.7% at end-2017, pro
forma of eased economic risks for the banking system.
Provisioning needs will normalize to about 160-180 basis points
(bps) in 2019 and 2020, when we expect the bank's RAC ratio will
start progressing, but remain slightly below 5%. In our forecast,
we are also factoring in the recently announced sale of Bank of
Cyprus UK Limited, which we anticipate will have a positive
impact of about 15-20 bps on our measure of the bank's
capitalization (see "Bank of Cyprus Ratings Unaffected By Sale Of
U.K. Subsidiary," published July 10, 2018).

"We acknowledge that the bank is working on a structured solution
to help reduce NPEs, but at this stage we do not have enough
visibility on the eventual finalization and the related
conditions, particularly regarding the impact on BOC's
capitalization. Therefore, we are not incorporating any
extraordinary transaction in our ratings.

"Our positive outlook on BoC reflects our view that we could
raise the long-term rating over the next 12 months if the bank
improved its asset quality to levels similar to those of peers,
for example, via extraordinary operations, while preserving its
capitalization. Our outlook reflects our expectation that BoC
will remain focused on continuing to reduce its large stock of
NPEs while its RAC ratio gradually converges towards 5%. This
could also happen if the economic environment in Cyprus becomes
more supportive, ultimately resulting in a strengthening of the
bank's overall capitalization. This could occur if we saw the
country improving its legal framework and continuing to absorb
the credit cost of the bursting of the credit bubble and the
subsequent deep economic recession of 2008-2009.

"We could revise the outlook to stable if we anticipated that the
bank might take a step back in its turnaround plan, for example,
by slowing down its NPE reduction while failing to strengthen its
capitalization, or if it did not maintain a comfortable liquidity
buffer."


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C Z E C H   R E P U B L I C
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H-SYSTEM: Czech Government to Deal with Bankruptcy Case
-------------------------------------------------------
CTK reports that the Czech government will deal with the H-system
case and ask the respective bodies to check this housing
project's bankruptcy proceedings, PM Andrej Babis (ANO) said on
July 29 after a meeting with the Svatopluk cooperative,
associating some of the former H-system clients.

A meeting between representatives of Svatopluk and H-System
bankruptcy administrator Josef Monsport was set to take place on
July 30, with Mr. Babis attending it as a mediator.

Mr. Babis stressed that he had been asked to participate in the
talks by the cooperative representatives, CTK notes.

The Supreme Court (NS) has ruled lately that the Svatopluk
housing cooperative members must leave their flats in eight
houses in Horomerice, which they completed on their own after
H-System went bankrupt, within a month of the court verdict's
effect, CTK relates.  The court complied with Monsport who would
like to sell the flats in Horomerice in order to compensate all
the damaged clients, CTK discloses.

The cooperative was set to submit an offer to purchase the real
estate concerned for CZK10.5 million at the July 30 meeting with
Mr. Monsport, Martin Junek told CTK on behalf of the cooperative
after its one-hour meeting on July 29.

The cooperative also said in its statement that it had always
cared for the protection of its clients' investments, CTK relays.

The NS declared the rent contracts between the Svatopluk
cooperative and the dwellers void, since Svatopluk had completed
a developer project on the H-System plots, thereby actually
investing money in another owner's property, CTK recounts.

The NS verdict affects some 60 families who sharply disagree with
it and refuse to leave their flats, CTK states.

In total, some 1000 people were damaged in the H-system case,
according to CTK.

Part of the damaged H-system clients established Svatopluk in
October 1997 with the aim to complete their housing even with
further investments, CTK relates.  Then bankruptcy administrator
Karel Kudlacek permitted them to do so under certain conditions,
CTK relays.  However, Mr. Monsport called on them to leave the
real estate to enable their sale, CTK notes.


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G E R M A N Y
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PLATIN 1426: Moody's Rates New EUR100MM Sr. Sec. Notes B3 - LGD4
----------------------------------------------------------------
Moody's Investors Service has assigned a B3 -- LGD4 rating to the
proposed EUR100 million additional senior secured notes due 2023
issued by Platin 1426. GmbH, a financing company of Schenck
Process Holding GmbH (Schenck). The existing ratings remain
unchanged. The outlook is positive.

Moody's rating action follows the refinancing of a bank bridge
funding of the same amount for the recently closed and fully debt
financed acquisition of Raymond Bartlett Snow (RBS) and reflects
the following interrelated drivers:

  - The group's high leverage of 7.5x, as adjusted by Moody's
(6.5x if all management add-backs were to be accepted) as of Dec.
2017 pro-forma for the acquisition. Moody's expects the leverage
to improve towards a 5.7-6.2x range within the next 18 months on
the back of EBITDA growth;

  - The positive impact of the acquisition on Schenck's business
profile since it will strengthen its geographic diversification
and product offerings into size reduction, classification,
thermal processing equipment and increase stable aftermarket
sales.

RATINGS RATIONALE

Schenck's CFR reflects: (1) the small size of the group with
total revenues of around EUR600 million expected for 2018 pro-
forma for the acquisition of RBS, (2) the high cyclicality of the
majority of its end markets with a sizeable exposure to the
investment cycle of customers and capacity utilization levels
impacting its aftermarket and services businesses, and (3) the
group's highly leveraged capital structure, with a pro-forma
Moody's-adjusted debt/EBITDA of 7.5x (6.5x if management add-
backs were to be accepted) as of Dec. 2017 expected to decrease
towards 5.7-6.2x in the next 18 months.

At the same time, the rating is supported by the company's (1)
good end-customer industry and geographic diversification, (2)
asset-light business model and flexible cost structure
(approximately 75% of total costs are variable) which enabled the
group to protect margins and remain free cash flow generative
historically, even during times of economic stress; and (3)
fairly solid entry barriers owing to its established leadership
position, the size of aftermarket revenues and long-standing
customer relationships, although the low capital intensity of
operations does not create a significant hurdle to replicate its
business.

STRUCTURAL CONSIDERATIONS

In its loss-given-default analysis, Moody's ranks first the
group's super senior revolving credit facility and second the
EUR425 million senior secured notes and the additional EUR100
million senior secured notes. Given the absence of material
priority as well as junior claims, the senior secured notes are
therefore rated in-line with the CFR at B3.

RATING OUTLOOK

The positive outlook anticipates a successful integration of RBS
as evidenced by an increase in EBITA margin towards 14-15%
(Moody's adjusted) and positive free cash flow of around EUR35-45
million annually (Moody's adjusted) within the next 12-18 months.
The positive outlook further includes Moody's expectation that
the leverage will improve towards 5.7-6.2x Moody's adjusted
debt/EBITDA within the next 18 months on the back of EBITDA
growth.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Positive rating pressure could develop should (1) the leverage
sustainably improve to around 6x Moody's-adjusted debt/EBITDA and
(2) the company consistently generate positive free cash flow.

Downward rating pressure could develop should (1) earnings do not
improve as expected by Moody's base case assumptions, which
assumes a moderate revenue growth of 3-4% and a Moody's EBITA
margin of around 14-15% for 2019-20, (2) the company's Moody's-
adjusted leverage remain sustainably above 7.0x, or (3) the free
cash-flow become sustainably negative.

PRINCIPAL METHODOLOGY

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

PROFILE

Headquartered in Darmstadt, Germany, Schenck Process is one of
the world's largest providers of industrial weighing, screening,
conveying, automation, filtration and loading/transportation
equipment. In December 2017 IK Investment Partners, which held a
majority stake since 2007, sold Schenck Process to Blackstone. In
FY 2017, Schenck generated EUR543 million revenues.


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GREECE: Eurozone May Have to Provide More Long-Term Debt Relief
---------------------------------------------------------------
Mehreen Khan at The Financial Times reports that the
International Monetary Fund has warned eurozone governments that
they need to give Greece more long-term debt relief to stop the
country from being locked out of financial markets as Athens
prepares for life outside a bailout program.

In a swipe at EU capitals that have pushed back at Greek demands
for greater debt relief, the IMF has calculated that Greece's
long-term debt costs will be unsustainable in 20 years' time
because of the high budget surplus targets demanded by European
creditors as part of Athens' post-bailout conditions, the FT
relates.

According to the FT, without more debt relief measures, Greece
"could struggle to maintain market access over the long run," the
fund said in its final economic assessment of the country before
it exits the bailout program on Aug. 20.

The IMF warning comes as Greece prepares to return to the
international capital markets after eight years reliant on loans
from EU governments and the Washington-based fund, the FT notes.

Eurozone governments last month agreed a debt relief deal that
means Greece pays back little on its debt pile until 2032, the FT
recounts.

But although the measures will be enough to ensure Greece can
access international capital markets in the medium term, the IMF
warned that, over the longer run, EU governments would have to
provide more debt relief to maintain investor confidence in the
country and prevent another bailout, the FT discloses.


WIND HELLAS: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit
rating on Crystal Almond Intermediary Holdings Ltd. (CAIH), the
parent of Greek telecom operator Wind Hellas Telecommunications
S.A., and on CAIH's wholly owned financing subsidiary Crystal
Almond S.a.r.l. (together, the group or Wind Hellas). The outlook
on CAIH and Crystal Almond S.a.r.l. is stable.

S&P said, "We also affirmed our 'B' issue rating on the EUR325
million senior secured notes issued by Crystal Almond S.a.r.l.
The recovery rating on the notes is '3', reflecting our
expectation of 50%-70%; rounded estimate (65%) recovery for
secured creditors in the event of a payment default.

"The affirmation reflects our assessment that the Greek
government's easing of capital controls and improving economic
prospects are likely to enhance Wind Hellas' flexibility in
transferring cash abroad and, over time, contribute to
incrementally greater visibility of its earnings and cash flows.
However, while this improves our assessment of Wind Hellas'
business profile, the rating remains constrained by the company's
negative FOCF at this stage, which we believe compares
unfavorably with higher rated peers.

Wind Hellas generates all of its revenues and EBITDA in Greece.
S&P said, "The company is currently making significant
investments in mobile and fixed networks, as well as spectrum.
These investments, according to our base case, peaked at about
28% of revenues in 2017, but will only gradually decrease to 17%-
21% in 2018 and 2019. We forecast that these investments will
help support subscriber growth of 2%-4% in mobile postpaid (4.4%
in first-quarter 2018) and more than 4% in broadband (4.2% in
first-quarter 2018) in 2018 and 2019, fueling topline growth of
3.5%-6.0% over this period. However, we expect associated capital
expenditures (capex) to depress FOCF to negative EUR30 million-
EUR50 million in 2018, before gradually strengthening to negative
EUR25 million-EUR0 million in 2019. In our view, weak FOCF
continues to offset the company's low adjusted debt to EBITDA,
which we project at 3.5x-4.0x in 2018 and 2019."

In S&P's base case, it assumes:

-- Real GDP growth in Greece of 2.0% in 2018 and 2.2% in 2019,
    up from 1.4% in 2017, accompanied by unemployment rates
    slowly declining from 21.5% in 2017 to below 20% in 2019.

-- In S&P's view, the improving macroeconomic situation should
    bolster consumer spending and be conducive to the up-selling
    of larger mobile data packages, higher broadband speeds, and
    pay-TV.

-- Revenue growth for Wind Hellas of 3.5%-5.0% in 2018,
    moderately accelerating from 3.5% in 2017, and 4.0%-6.0% in
    2019, driven by continued subscriber growth in mobile and
    fixed broadband, as well as modest growth in average revenues
    per user.

-- S&P's adjusted EBITDA margins of 26%-28% in 2018, after about
    25% in 2017, expanding to 27.5%-29.5% in 2019, thanks to a
    combination of topline growth and ongoing cost-efficiency
    initiatives.

-- Capex to sales, excluding spectrum payments, of 17%-19% in
    2018 and 2019, slightly down from about 19% in 2017, but
    reflecting continued significant investments in fixed and
    mobile networks.

-- Spectrum payments of about EUR13 million in 2018, and none in
    2019.

-- Current and cash taxes of about zero in 2018-2019, as in
    previous years.

Based on these assumptions, S&P arrives at the following credit
measures:

-- Adjusted debt to EBITDA of 3.8x-4.0x in 2018, down from 4.2x
    in 2017, and decreasing further to 3.5x-3.7x in 2019.

-- Adjusted funds from operations (FFO) to debt of 16%-18% in
    2018 and 19%-21% in 2019, compared with about 17% in 2017.

-- Reported FOCF of negative EUR30 million-EUR50 million in 2018
    and negative EUR25 million-EUR0 million in 2019, after
    negative EUR76 million in 2017.

-- Adjusted FOCF to debt of negative 2%-4% in 2018 and positive
    2%-4% in 2019, compared with negative 9% in 2017.

S&P said, "The stable outlook reflects our expectation that Wind
Hellas will grow its revenues by 3.5%-5.0% and report S&P Global
Ratings-adjusted EBITDA margins of 26%-28% over the next 12
months, enabling it to reduce adjusted debt to EBITDA to below
4.0x. At the same time, the stable outlook incorporates our view
that reported FOCF is likely to remain negative over this
timeframe as the company continues to heavily invest in network
upgrades and spectrum.

"We could take a positive rating action if Wind Hellas' FOCF
turns positive while the company maintains adjusted debt to
EBITDA of less than 4.0x on a sustainable basis, resulting from
the successful monetization of its network and spectrum
investments and continued subscriber growth.

"We could lower our rating if Wind Hellas fails to grow revenues
and EBITDA margins in the next 12 months in line with our base
case, if the company's leverage remained sustainably above 4x, or
we no longer projected the negative FOCF to materially improve in
2019. This could occur if Wind Hellas is not successful in
monetizing its investments and growing its customer base. In
addition, we could lower the rating if debt-financed acquisitions
or shareholder returns lead to higher leverage than we
anticipate, or in case of unexpected liquidity pressure."


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


ADAGIO VII: Moody's Assigns (P)B2 Rating to Class F Notes
---------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
eight classes of notes to be issued by Adagio CLO VII Designated
Activity Company:

EUR248,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR24,400,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Assigned (P)Aa2 (sf)

EUR10,600,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR5,600,000 Class C-1 Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

EUR26,400,000 Class C-2 Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)A2 (sf)

EUR21,400,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2031, Assigned (P)Baa2 (sf)

EUR23,600,000 Class E Deferrable Junior Floating Rate Notes due
2031, Assigned (P)Ba2 (sf)

EUR12,000,000 Class F Deferrable Junior Floating Rate Notes due
2031, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will
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 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, AXA Investment Managers, Inc. ("AXA IM",
the "Manager"), has sufficient experience and operational
capacity and is capable of managing this CLO.

Adagio VII 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,
high yield bonds and/or first lien last out loans. 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 ramp-up
period in compliance with the portfolio guidelines.

AXA IM 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 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 eight classes of notes rated by Moody's, the
Issuer will issue EUR 40,700,000 of Subordinated Notes and EUR
4,500,000 Class Z Notes. Moody's will not assign a rating to
these classes 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: EUR400,000,000

Diversity Score: 40

Weighted Average Rating Factor (WARF): 2765

Weighted Average Spread (WAS): 3.45%

Weighted Average Recovery Rate (WARR): 44.0%

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 constraints, the total exposure to countries with a
local currency country risk bond ceiling ("LCC") below Aa3 shall
not exceed 10%, the total exposure to countries with an LCC below
A3 shall not exceed 5% and the total exposure to countries with
an LCC below Baa3 shall not exceed 0%. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class of notes as further
described in the methodology. The portfolio haircuts are a
function of the exposure size to countries with LCC of A1 or
below and the target ratings of the rated notes, and amount to
0.75% for the Class A Notes, 0.50% for the Class B-1 and Class B-
2 Notes, 0.375% for the Class C-1 and Class C-2 Notes and 0% for
the Class D, Class E and Class F 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 2765 to 3180)

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-1 Deferrable Mezzanine Floating Rate Notes: -2

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

Class D Deferrable Mezzanine Floating Rate Notes: -2

Class E Deferrable Junior Floating Rate Notes: -1

Class F Deferrable Junior Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 2765to 3595)

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-1 Deferrable Mezzanine Floating Rate Notes: -3

Class C-2 Deferrable Mezzanine Floating Rate Notes: -3

Class D Deferrable Mezzanine Floating Rate Notes: -3

Class E Deferrable Junior Floating Rate Notes: -2

Class F Deferrable Junior Floating Rate Notes: -3


CADOGAN SQUARE VIII: S&P Affirms B- (sf) Rating on Class F Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Cadogan Square
CLO VIII D.A.C.'s senior secured notes.

Since the transaction closed in December 2016, the portfolio's
performance has been stable. Available credit enhancement has
increased since closing as the manager was able to build par via
trading. The coverage tests continue to pass at the documented
trigger levels.

For this analysis, S&P determined the scenario default rates
(SDRs) by running the asset portfolio through the CDO Evaluator
model, which is an integral part of its 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 compares
the SDRs to the results generated in its cash flow analysis for
each rated tranche within the CLO transaction.

Although the SDRs generally reflect the amount of credit support
required at each rating level based on the portfolio's credit
characteristics, S&P uses its 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
S&P's cash flow stress assumptions -- that a tranche can
withstand and still fully repay the noteholders.

Taking into account the results of our credit and cash flow
analysis, S&P considers that the available credit enhancement for
all classes of notes is commensurate with the currently assigned
ratings. S&P has therefore affirmed our ratings on these classes
of notes.

S&P said, "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) (see "Global Methodologies And Assumptions For Corporate
Cash Flow And Synthetic CDOs," published on Aug. 8, 2016). 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. We consider that adding
these tests to our simulation model enhances our overall analysis
because the tests are intended to address both event and model
risks that may be present in rated transactions. Our ratings on
these classes of notes are not capped by these supplemental
tests.

"We have performed a credit and cash flow analysis in line with
our corporate CDO criteria. The results indicate that the
available credit enhancement for all classes of notes is still
commensurate with the currently assigned ratings. We have
therefore affirmed our ratings on all classes of notes.
Though the cash flows for certain classes of notes show that they
could achieve higher ratings, today's affirmations follow our
rating framework for CLOs that allow reinvestment of assets
during the reinvestment period. Under our framework, we typically
would not consider upgrades to the rated tranches in the CDO
transaction because the transaction typically would allow the
collateral manager to have a few years to reinvest and change the
transaction's credit risk profile."

Cadogan Square CLO VIII DAC is a European cash flow CLO,
securitizing a portfolio of primarily senior secured euro-
denominated leveraged loans and bonds issued by European
borrowers. Credit Suisse Asset Management Ltd. is the portfolio
manager.

  RATINGS LIST

  Cadogan Square CLO VIII DAC EUR479.14 Million Floating- And
  Fixed-Rate Notes (Including Subordinated Notes)

  Ratings Affirmed

  Class                Rating

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


HALCYON LOAN 2017-1: S&P Affirms B- (sf) Rating on Class F Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Halcyon Loan
Advisors European Funding 2017-1 DAC's class A, B-1, B-2, C, D,
E, and F notes.

The affirmations follow S&P's assessment of the transaction's
performance using data from the latest performance reports, and
the application of its relevant criteria.

Since closing, the portfolio balance has remained stable.

The transaction's key characteristics are:

-- A well-diversified portfolio of leveraged loans, which has
    increased to 134 distinct obligors from 108 at closing.

-- About 97% of the loans in the portfolio are euro-denominated
    and the remainder are non-euro, which are hedged via perfect
    asset swap.

-- There were no defaulted corporates in the portfolio (assets
    rated 'CC', 'C', 'SD' [selective default], or 'D').

-- Both the interest coverage test and principal coverage test
    remain above the documented threshold levels.

-- The weighted-average recovery rates have increased since
    closing.

S&P said, "For this analysis, 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. We then compare the
SDRs to the results generated in our cash flow analysis for each
rated tranche within the CLO transaction.

"Although the SDRs generally reflect the amount of credit support
required at each rating level based on the credit characteristics
of the portfolio, 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 our 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.

"Taking into account the results of our credit and cash flow
analysis, we consider that the available credit enhancement for
class A to F notes is commensurate with the currently assigned
ratings. We have therefore affirmed our ratings on all classes of
notes.

"Although the cash flows for certain classes of notes show that
they could achieve higher ratings than those currently assigned,
today's affirmations follow our rating framework for CLOs that
allow reinvestment of assets during the reinvestment period.
Under our framework, we typically would not consider upgrades to
the rated tranches in the collateralize debt obligation (CDO)
transaction because the transaction typically would allow the
collateral manager to have a few years to reinvest and change the
credit risk profile of the transaction.

"We also applied supplemental tests outlined in our corporate 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. Our
ratings on the classes of notes in this transaction are not
capped by these supplemental tests."

Halcyon Loan Advisors European Funding 2017-1 is a European cash
flow corporate loan CLO securitization of a revolving pool,
comprising primarily euro-denominated senior secured loans and
bonds granted to broadly syndicated corporate borrowers.

  Ratings Affirmed
  Class          Ratings

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


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


HLF FINANCING: Moody's Assigns Ba1 Rating to Sr. Sec. Facilities
----------------------------------------------------------------
Moody's Investors Service affirmed its Ba3 Corporate Family
Rating and Ba3-PD Probability of Default Rating on Herbalife
Nutrition Ltd. At the same time Moody's assigned Ba1 ratings to
HLF Financing S.a.r.l. LLC's proposed first lien senior secured
credit facilities. HLF Financing S.a.r.l., LLC is a wholly owned
subsidiary of Herbalife Nutrition Ltd. The secured credit
facility includes a $200 million senior secured term loan A, $600
million senior secured first lien term loan B and a $200 million
senior secured first lien revolving credit facility. Proceeds
from the senior secured term loans will be used to refinance
existing debt, to pay transaction fees and expenses and for
balance sheet cash. The revolving credit facility will be used
for working capital and general corporate purposes. Moody's also
affirmed Herbalife's Speculative Grade Liquidity Rating at SGL-2.
The rating outlook is stable.

The refinancing is credit positive because it will extend
maturities and lower cash interest costs. However, Moody's is
affirming the ratings because debt and leverage are largely
unchanged.

The Ba1 rating on the senior secured debt is two notches higher
than the Ba3 Corporate Family Rating. This reflects Moody's
expectation that Herbalife will add a meaningful amount of
unsecured debt to the capital structure within the near term.

Moody's also affirmed the Ba1 ratings on the company's existing
credit facilities comprised of a $150 million senior secured
first lien revolving credit facility and a $1,300 senior secured
first lien term loan B. Moody's expects to withdraw the ratings
on the existing credit facilities as part of the proposed
refinancing.

Ratings Affirmed:

Herbalife Nutrition LTD.

Corporate Family Rating at Ba3

Probability of Default at Ba3-PD

Speculative Grade Liquidity Rating at SGL-2

$150 million senior secured first lien revolving credit facility
at Ba1 (LGD2); to be withdrawn at close (*)

HLF Financing S.a.r.l. LLC:

$1,300 million senior secured first lien term loan B at Ba1
(LGD2); to be withdrawn at close (*)

Herbalife International, Inc. and Herbalife International
Luxembourg S.a.r.l are co-borrowers on the existing revolver. HLF
Financing S.a.r.l LLC and HLF Financing US, LLC are co-borrowers
of the existing term loan.

Ratings Assigned:

HLF Financing S.a.r.l. LLC

$200 million senior secured first lien revolving credit facility
at Ba1 (LGD2) (**)

$200 million senior secured first lien term loan A at Ba1 (LGD2)

$600 million senior secured first lien term loan B at Ba1 (LGD2)

Herbalife Nutrition LTD, Herbalife International, Inc., Herbalife
International Luxembourg S.a.r.l and HLF Financing S.a.r.l LLC
are expected to be co-borrowers on the proposed revolver.

The rating outlook on both issuers is stable.

Herbalife is the parent company of Herbalife International, Inc.,
Herbalife International Luxembourg S.a.r.l, HLF Financing US, LLC
and HLF Financing S.a.r.l. LLC.

RATING RATIONALE

The Ba3 CFR reflects Herbalife's narrow product line, operation
in the highly competitive weight-loss and wellness markets
subject to frequent new entrants and shifting consumer
preferences, combined with the inherent risks related to multi-
level marketing. The company's global multi-level marketing
structure increases the risk of adverse regulatory and/or legal
actions, and Moody's recognizes the potential for future actions
by regulatory authorities. Debt will be used to refinance
existing debt and financial leverage (debt/EBITDA) will be at
about 3.7x at close. Further, Moody's expects leverage to remain
relatively flat at about 3.5x within 12 months following close of
the transaction, reflecting debt paydown with the company's
significant cash flow. The rating is also supported by the
company's good profitability, and significant geographic
diversification. Good liquidity is supported by a sizable $1.3
billion cash balance (as of March 31, 2018) projected free cash
flow, and the undrawn revolver. These cash sources provide good
coverage of the remaining $675 million convertible notes maturing
in August 2019, although the notes are currently in-the-money.

The stable outlook reflects Moody's view that Herbalife's
financial leverage will steadily improve due to debt repayment
and competitive pressures will keep earnings relatively flat
despite growth investments. The outlook also reflects Moody's
view that the company will continue to face the fundamental risks
of the multi-level marketing business model.

The rating could be downgraded if Herbalife's operating
performance deteriorates, or if there is an adverse shift in the
industry's regulatory environment. Ratings could also be
downgraded if debt/EBITDA is sustained above 4.0x, or if
liquidity deteriorates.

The rating could be upgraded if the company achieves greater
scale, profitability improves, and Moody's gains greater comfort
with the industry's regulatory environment and business model.
The rating could also be upgraded if Herbalife demonstrates that
it will maintain a more conservative financial policy and
meaningfully reduces leverage.

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

Based in Los Angeles, CA, Herbalife Nutrition LTD. is a leading
direct-seller of weight management products, nutritional
supplements and personal care products intended to support a
healthy lifestyle. The company operates through a multi-level
marketing system that consists of approximately 4 million global
members across 94 countries. Publicly-traded Herbalife generates
roughly $4.5 billion in annual revenues.


=========
M A L T A
=========


FIMBANK PLC: Fitch Affirms 'BB' Long-Term IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Malta-based Fimbank Plc's (FIM) Long-
Term Issuer Default Rating (IDR) at 'BB' with a Stable Outlook
and the bank's Viability Rating at 'bb-'.

KEY RATING DRIVERS

IDRS AND SUPPORT RATING

FIM's IDRs and Support Rating are driven by institutional
support, if required, from the bank's core shareholder Kuwait-
based Burgan Bank, reflecting high levels of management and
operational integration between the two banks. The Support Rating
also reflects FIM's small size relative to Burgan and the wider
group Burgan belongs to, meaning that any required support would
not be too onerous relative to Burgan's ability to provide it.

Burgan's Long-Term IDR of 'A+' is driven by sovereign support
from Kuwait (AA/Stable), but given the latter's shareholding in
FIM is only 19.7% and FIM is not based in Kuwait, Fitch believes
support from Kuwait cannot be relied upon to flow through to the
Maltese associate. Therefore, FIM's IDRs are in line with
Burgan's Viability Rating (VR) of 'bb'.

Burgan's ultimate parent is Kuwait Projects Company Holding
K.S.C.P. (KIPCO), a leading regional investment company. Two
other KIPCO subsidiaries, Bahrain-based United Gulf Holding
Company and Tunisia-based Tunis International Bank, hold 61.2%
and 2.8%, respectively, in FIM. The bank's shareholders remain
supportive, demonstrated by the full subscription of FIM's recent
rights issue, which boosted core capitalisation in 2Q18.

VR
FIM's 'bb-' VR reflects the bank's specialist trade finance focus
and expertise, with business generated in, and reliance on, a
number of emerging markets. The bank's company profile is
underpinned by a strengthening franchise and business model
following restructuring and increasing business with Burgan. The
rating also recognises FIM's capable management team and clear
turnaround strategy, weak but improving earnings and asset
quality metrics, and strengthened capitalisation to levels more
in line with the higher rated trade finance peers.

Fitch believes that underwriting standards have improved with
tighter credit standards and a more conservative approach to
growth. The bank has gained better control of its
subsidiaries/associates, including its under-performing factoring
operations, a source of non-performing assets (NPA) in the past.
Risk management and controls are stronger than in the past,
partly due to Burgan's oversight.

FIM's asset quality remains one of the main rating weaknesses.
Metrics are improving, however, with the bank working through its
legacy problem assets which were mainly originated in its
subsidiaries. NPAs increased in 1Q18 but this is not reflective
of asset quality trends, as from 2014 to 2017 NPAs have been
declining. FIM's NPA ratio was an acceptable 5% at end-1Q18 with
reserve coverage ratio of 69%. Restructured loans continue to be
high, at around 8% of end-2017 loans (or 3% of total exposure),
weighing on its assessment of asset quality.

Earnings and profitability metrics are trending up with FIM
reporting its second consecutive year of profit in 2017 (net
losses from 2013-2015). Fitch expects these trends to be
maintained, particularly with business growth and improving asset
quality.

In April 2018, FIM raised USD105 million of core capital through
a rights issue to existing shareholders. As a consequence, FIM's
regulatory common equity Tier 1 (CET1) and total capital adequacy
ratios rose to 16.8% and 17.6% respectively at end- May 2018
(end-2017: 11.3% and 15.5%). Following this, Fitch believes FIM
is adequately capitalised with its metrics being in line with
higher-rated trade finance peers. Post-rights issue, Fitch
expects FIM to maintain a Fitch core capital ratio of around 15%,
even after taking into consideration its expansion plans. New
capital also allows FIM to establish good buffers over phased-in
regulatory requirements. Proceeds of the rights issue were also
used to repay an existing USD50 million subordinated bond.

FIM is primarily funded by customer deposits (57% of non-equity
funding) of which a large part is sourced in other EU countries
via third-party internet platforms. In its view, these deposits,
which are mostly from retail depositors, cannot be considered
core funding given they are price-sensitive and potentially less
stable. Its assessment of this factor also reflects that ordinary
liquidity support would be forthcoming from Burgan, if needed.
The bank holds sizeable liquid assets in the form of cash and
bank placements and a portfolio of highly rated securities.

RATING SENSITIVITIES

IDRS AND SUPPORT RATING

FIM's IDRs and Support Rating are sensitive to a change in
Burgan's ability, as reflected in the core shareholder's VR, and
propensity to support the subsidiary. FIM's IDRs could be
downgraded if Burgan/KIPCO reduce their stakes or if Burgan's
control or oversight of its associate loosens.

FIM's Long-Term IDR could be upgraded by more than one notch if
Fitch believes that support from its owners is more likely, for
example, due to Burgan taking a majority stake in the bank and
FIM evolving into a key and integral part of the group's business
and providing core products and services to Burgan's core
markets.

VR

A strong and stable recovery in its financial metrics,
particularly core profitability and further strengthening of
capitalisation, could result in FIM's VR being upgraded. Downside
pressure on the VR could come from a marked weakening in asset
quality or a failure to improve underlying earnings further.

The rating actions are as follows:

Fimbank Plc

Long-Term IDR affirmed at 'BB'; Outlook Stable

Short-Term IDR affirmed at 'B'

Viability Rating affirmed at 'bb-'

Support Rating affirmed at '3'


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


BARINGS EURO 2016-1: Moody's Assigns B2 Rating to Class F-R Notes
-----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to refinancing notes issued by
Barings Euro CLO 2016-1 B.V.:

EUR228,000,000 Class A-1-R Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aaa (sf)

EUR12,000,000 Class A-2-R Senior Secured Fixed Rate Notes due
2030, Definitive Rating Assigned Aaa (sf)

EUR38,500,000 Class B-1-R Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aa2 (sf)

EUR7,300,000 Class B-2-R Senior Secured Fixed Rate Notes due
2030, Definitive Rating Assigned Aa2 (sf)

EUR22,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned A2 (sf)

EUR20,500,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned Baa2 (sf)

EUR27,300,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned Ba2 (sf)

EUR12,800,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive ratings of the notes address the expected loss
posed to noteholders by the legal final maturity of the notes in
2030. The definitive ratings reflect the risks due to defaults on
the underlying portfolio of assets, the transaction's legal
structure, and the characteristics of the underlying assets.
Furthermore, Moody's is of the opinion that the collateral
manager, Barings (U.K.) Limited, has sufficient experience and
operational capacity and is capable of managing this CLO.

The Issuer issued the Refinancing Notes in connection with the
refinancing of the following classes of notes: Class A-1 Notes,
Class A-2 Notes, Class B-1 Notes, Class B-2 Notes, Class C Notes,
Class D Notes, Class E Notes and Class F Notes due 2030,
previously issued July 2016. On the Refinancing Date, the Issuer
used the proceeds from the issuance of the Refinancing Notes to
redeem in full the Original Notes. On the Original Closing Date
the Issuer also issued Subordinated Notes, which will remain
outstanding.

The main changes to the terms and conditions occurring in
connection to the refinancing involve (1) extension of the
Weighted Average Life Test by 18 months to a total of 7.5 years
from refinancing date and (2) the use of excess par to skew the
Minimum Weighted Average Spread Test. Furthermore, the Manager
will be able to choose from a new set of collateral quality test
covenants.

Barings Euro CLO 2016-1 B.V. is a managed cash flow CLO with a
target portfolio made up of EUR 400,000,000 par value of mainly
European corporate leveraged loans. At least 90% of the portfolio
must consist of senior secured loans and senior secured bonds and
up to 10% of the portfolio may consist of unsecured senior loans,
second-lien loans or, mezzanine loans. The portfolio is expected
to be 100% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

Barings will actively manage the collateral pool of 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 remaining 2-year reinvestment period. Thereafter,
purchases are permitted using principal proceeds from unscheduled
principal payments and proceeds from sales of credit risk and
credit improved obligations, and are subject to certain
restrictions.

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

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017. The
cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

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

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

Defaulted par: EUR0

Diversity Score: 50

Weighted Average Rating Factor (WARF): 3100

Weighted Average Spread (WAS): 3.90%

Weighted Average Recovery Rate (WARR): 41.0%

Weighted Average Life (WAL): 7.5 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with a local currency
country risk ceiling of A1 or below. Given the portfolio
constraints and the current sovereign ratings in Europe, such
exposure may not exceed 10% of the total portfolio with exposures
to countries with local currency country risk ceiling of Baa1 to
Baa3 further limited to 5%. As a worst case scenario, a maximum
5% of the pool would be domiciled in countries with A3 and a
maximum of 5% of the pool would be domiciled in countries with
Baa3 local currency country ceiling each. The remainder of the
pool will be domiciled in countries which currently have a local
currency country ceiling of Aaa or Aa1 to Aa3. Given this
portfolio composition, the model was run with different target
par amounts depending on the target rating of each class as
further described in the methodology. The portfolio haircuts are
a function of the exposure size to peripheral countries and the
target ratings of the rated notes and amount to 0.75% for the
Class A-1 Notes and Class A-2 Notes, 0.50% for the Class B-1
Notes and Class B-2 Notes, 0.38% for the Class C Notes and 0% for
classes D, E and F.

Stress Scenarios:

Together with the set of modeling assumptions, Moody's conducted
an additional sensitivity analysis, which was a component in
determining the definitive 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 3100 to 3565)

Rating Impact in Rating Notches:

Class A-1-R Senior Secured Floating Rate Notes: 0

Class A-2-R Senior Secured Fixed Rate Notes: 0

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

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

Class C-R Senior Secured Deferrable Floating Rate Notes: -2

Class D-R Senior Secured Deferrable Floating Rate Notes: -2

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F-R Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF -- increase of 30% (from 3100 to 4030)

Rating Impact in Rating Notches:

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

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

Class B-1-R Senior Secured Floating Rate Notes : -4

Class B-2-R Senior Secured Fixed Rate Notes : -4

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

Class D-R Senior Secured Deferrable Floating Rate Notes: -2

Class E-R Senior Secured Deferrable Floating Rate Notes: -1

Class F-R Senior Secured Deferrable Floating Rate Notes: -2


BARINGS EURO 2016-1: Fitch Assigns 'B-sf' Rating to Cl. F-R Debt
----------------------------------------------------------------
Fitch Ratings has assigned Barings Euro CLO 2016-1 B.V. final
ratings, as follows:

EUR228,000,000 Class A-1-R: 'AAAsf', Outlook Stable

EUR12,000,000 Class A-2-R: 'AAAsf', Outlook Stable

EUR38,500,000 Class B-1-R: 'AAsf', Outlook Stable

EUR7,300,000 Class B-2-R: 'AAsf', Outlook Stable

EUR22,000,000 Class C-R: 'Asf', Outlook Stable

EUR20,500,000 Class D-R: 'BBBsf', Outlook Stable

EUR27,300,000 Class E-R: 'BBsf', Outlook Stable

EUR12,800,000 Class F-R: 'B-sf', Outlook Stable

Barings Euro CLO 2016-1 B.V., formerly Babson Euro CLO 2016-1
B.V., is a cash flow collateralised loan obligation (CLO). Net
proceeds from the issuance of the notes have been used to
purchase a EUR400 million portfolio of mostly European leveraged
loans and bonds. The portfolio is managed by Barings (U.K.)
Limited. The reinvestment end date remains in July 2020 and the
weighted average life has been extended by 1.5 years.

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 33.39, below the maximum covenant of 33.5
for assigning the final ratings.

High Recovery Expectations

At least 90% of the portfolio comprises senior secured
obligations. Fitch views the recovery prospects for these assets
as more favourable than for second-lien, unsecured and mezzanine
assets. The Fitch-weighted average recovery rate (WARR) of the
current portfolio is 65.83%, above the minimum covenant of 65 for
assigning the final ratings. Unsecured, second lien and
mezzanines assets represent 5.61% against a covenant at 10%.

Diversified Asset Portfolio

The covenanted maximum exposure to the top 10 obligors for
assigning the final ratings is 18% to 26.5% of the portfolio
balance. This covenant ensures that the asset portfolio will not
be exposed to excessive obligor concentration. The portfolio is
well-diversified with 185 assets from 152 obligors. The largest
obligor and the top 10 obligors represent 2.41% (covenant at 3%)
and 19.52% (covenant at 20%), respectively, of the portfolio,
excluding cash.

Limited Interest Rate Risk

Fixed-rate liabilities represent 4.8% of the target par, while
fixed-rate assets can represent up to 15% of the portfolio. The
transaction is therefore partially hedged against rising interest
rates. Fixed-rate assets represent 14.09% of the current
portfolio, below the maximum of 15%.

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 20% of the portfolio
in non-euro-denominated assets, provided these are hedged with
perfect asset swaps within six months of purchase. There are no
non-euro obligations in the current portfolio.

RATING SENSITIVITIES

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

A 25% reduction in recovery rates would lead to a downgrade of up
to two notches 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 U.S. Bank Trustees Limited as
at June 29, 2018

  - Draft offering circular provided by J.P. Morgan as at
July 25, 2018


DRYDEN 63: S&P Assigns Prelim B- (sf) Rating to Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Dryden 63 GBP CLO 2018 B.V.'s class A-1, A-2, B-1, B-2, C-1, C-2,
D, E, and F notes. At the same time, Dryden 63 GBP CLO 2018 will
issue unrated subordinated notes.

The preliminary ratings assigned to Dryden 63 GBP CLO 2018's
notes reflect our assessment of:

-- The diversified collateral pool, which consists primarily of
    broadly syndicated speculative-grade senior secured term
    loans and bonds that are governed by collateral quality
    tests.

-- The credit enhancement provided through the subordination of
    cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect
    the performance of the rated notes through collateral
    selection, ongoing portfolio management, and trading.

-- The transaction's legal structure, which we expect to be
    bankruptcy remote.

-- The counterparty risks, which we expect to be mitigated and
    in line with S&P's criteria.

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes permanently switch to semiannual payments.

The portfolio's reinvestment period ends approximately four years
after closing, and the portfolio's maximum average maturity date
is 8.5 years after closing.

S&P said, "We understand that the portfolio is well-diversified,
primarily comprising broadly syndicated speculative-grade senior
secured term loans and senior secured bonds. Therefore, we have
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow collateralized debt obligations.

"Following the application of our structured finance ratings
above the sovereign criteria, we consider the transaction's
exposure to country risk to be limited at the assigned
preliminary rating levels, as the exposure to individual
sovereigns does not exceed the diversification thresholds
outlined in our criteria.

"In our cash flow analysis, we used the GBP325 million target par
amount, the covenanted weighted-average spread (4.24%), the
reference weighted-average coupon (5.11%), and the target minimum
weighted-average recovery rate as indicated by the collateral
manager. The transaction also benefits from a GBP32.5 million
interest cap with a strike rate of 4%, reducing interest rate
mismatch between assets and liabilities in a scenario where
interest rates will exceed 4%. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios for
each liability rating category.

"We consider that the transaction's documented counterparty
replacement and remedy mechanisms adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria.

"Until the end of the reinvestment period on Oct. 15, 2022, the
collateral manager is allowed to substitute assets in the
portfolio for so long as our CDO Monitor test is maintained or
improved in relation to the initial ratings on the notes. This
test looks at the total amount of losses that the transaction can
sustain as established by the initial cash flows for each rating,
and compares that with the default potential of the current
portfolio plus par losses to date. As a result, until the end of
the reinvestment period, the collateral manager can, through
trading, deteriorate the transaction's current risk profile, as
long as the initial ratings are maintained.

"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement
for each class of notes from class A-1 to E notes.

"Based on the actual characteristics of the portfolio and the
class F notes' credit enhancement (9.74%), this class is able to
sustain a steady-state scenario, where the current market level
of stress and collateral performance remains steady.
Consequently, we have assigned our 'B- (sf)' preliminary rating
to the class F notes, in line with our criteria."

Dryden 63 GBP CLO 2018 is a European cash flow corporate loan
collateralized loan obligation (CLO) GBP-denominated
securitization of a revolving pool, comprising mostly GBP-
denominated and euro-denominated senior secured loans and bonds
issued mainly by U.K. and European borrowers. PGIM Ltd. is the
collateral manager.

  RATINGS LIST

  Preliminary Ratings Assigned

  Dryden 63 GBP CLO 2018 B.V.
  GBP335.861 Million Fixed- And Floating-Rate Notes (Including
  GBP42.5 Million subordinated Notes)

  Class                   Prelim.        Prelim.
                          rating         amount
                                        (mil. GBP)

  A-1                     AAA (sf)      171.000
  A-2                     AAA (sf)      9.000
  B-1                     AA (sf)       29.100
  B-2                     AA (sf)       14.400
  C-1                     A (sf)        17.300
  C-2                     A (sf)        0.911
  D                       BBB (sf)      16.450
  E                       BB- (sf)      23.800
  F                       B- (sf)       11.400
  Sub. notes              NR            42.500

  NR--Not rated. Sub.--Subordinated.


EURO-GALAXY IV: S&P Affirms B- (sf) Rating on Class F-R Notes
-------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Euro-Galaxy IV
CLO B.V.'s class X-R to F-R notes.

The affirmations follow S&P's credit and cash flow analysis and
the application of its relevant criteria.

Since the issue date of the reset notes in July 2017, the
transaction's performance has been relatively stable.

S&P said, "The portfolio's weighted-average rating has remained
stable at 'B' and the number of obligors has increased to 141
from 126. The portfolio's weighted-average life, estimated by
applying our criteria for corporate cash flow and synthetic
collateralized debt obligations (CDOs), decreased to 5.44 years
from 5.96 years. As a result, our scenario default rates (SDRs)
have improved very slightly at each rating level."

The break-even default rates (BDRs) for each class of notes have
remained in line with our issue date assumptions. The aggregate
collateral amount of EUR320.08 million is just above the target
par amount of EUR320.00 million. Additionally, the portfolio's
weighted-average recovery rates are above the assumptions used in
our analysis in July 2017. Floating-rate assets represent 97% of
the portfolio, with a weighted-average spread of 3.40%, compared
with S&P's reset date assumption of 95% with a weighted-average
spread of 3.60%.

S&P said, "Following our credit and cash flow analysis, we
believe that the class X-R, A-R, and F-R notes can still
withstand the stresses we apply at the currently assigned
ratings. We have therefore affirmed our ratings on these classes
of notes.

"The class B-R, C-R, D-R, and E-R notes benefit from large BDR-
SDR cushions. We would typically consider these cushions to be in
line with higher ratings than those currently assigned. However,
until the end of the reinvestment period on July 30, 2021, the
collateral manager can substitute assets in the portfolio for so
long as the S&P Global Ratings CDO Monitor test is maintained or
improved with regards to the initial ratings on the notes. As a
result, until the end of the reinvestment period, the collateral
manager can, through trading, deteriorate the transaction's
current risk profile, as long as the initial ratings are
maintained. We have therefore affirmed our ratings on the class
B-R, C-R, D-R, and E-R notes."

Euro-Galaxy IV CLO is a European cash flow collateralized loan
obligation (CLO) transaction, securitizing a portfolio of
primarily senior secured euro-denominated leveraged loans and
bonds issued by European borrowers. The transaction is managed by
PineBridge Investments Europe Ltd.

  PORTFOLIO BENCHMARKS

                       Euro-Galaxy IV CLO    European
average
  Expected portfolio default rate (%)    30.04             30.31
  Default rate dispersion (%)             7.15              7.15
  Weighted-average life (years)           5.44              5.58
  Obligor diversity measure              96.93             97.81
  Industry diversity measure             19.80             15.25
  Regional diversity measure              1.72              1.56

  RATINGS LIST

  Euro-Galaxy IV CLO B.V.
  EUR336 mil senior secured floating-rate notes (including EUR
  38.40 mil subordinated notes)
                                       Rating
  Class            Identifier          To         From
  X-R              XS1577960039        AAA (sf)   AAA (sf)
  A-R              XS1577961276        AAA (sf)   AAA (sf)
  B-R              XS1577961193        AA (sf)    AA (sf)
  C-R              XS1577958306        A (sf)     A (sf)
  D-R              XS1577956433        BBB (sf)   BBB (sf)
  E-R              XS1577956193        BB (sf)    BB (sf)
  F-R              XS1577956946        B- (sf)    B- (sf)


=============
R O M A N I A
=============


* ROMANIA: Number of Liquidated Companies Up 1.19% in 1H 2018
-------------------------------------------------------------
Anca Alexe at Business Review reports that the number of
companies that were permanently shut down in Romania during the
first half of 2018 was 1.19% higher than in the same period of
2017, with a total of 41,748 companies liquidated from the
National Trade Registry Office.

According to Business Review, most company liquidations were
registered in Bucharest (6,492) and in Cluj (1,741), Iasi (1,687)
and Timis (1,677) counties.

By sector, the most liquidations were done in retail and
wholesale trade, motorvehicle and motorcycle repairs,
agriculture, forestry and fishing and constructions, Business
Review notes.


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


HMS GROUP: Fitch Affirms 'B+' IDRs, Outlook Stable
--------------------------------------------------
Fitch Ratings has affirmed Russian pumps & compressors
manufacturer JSC HMS Group's (HMS) Foreign- and Local-Currency
Issuer Default Rating (IDR) at 'B+', and Foreign- and Local-
Currency Short-Term IDRs at 'B'. The Outlook is Stable. Fitch has
also affirmed JSC Hydromashservice's senior unsecured rating at
'B+' with Recovery Rating 'RR4'.

The ratings are constrained by a lack of geographical and
customer diversification, smaller scale of operations versus
international peers, volatile free cash flow (FCF) generation and
a low share of aftermarket services revenue. Positively the
ratings reflect HMS's leading market position, strong customer
base, healthy liquidity and stable fundamentals of the oil
industry.

KEY RATING DRIVERS

Strong Market Position: HMS is the leading manufacturer of
industrial pumps and O&G equipment in Russia and CIS with a
market share of about 30% and 44% respectively. HMS possesses the
largest installed base in Russia. Its strong market position
helps protect margins over the long-term, and creates barriers to
entry, which are backed by a history of healthy operating
performance. Nevertheless, growing competition from a large
number of small producers affects the group's profitability.
Competition with foreign producers is limited due to differences
between national and international engineering standards.

Volatile FCF: Fitch views HMS's historical FCF volatility as a
key rating constraint. In 2017 HMS reported positive FCF due to
advance and final payments received in the 4Q17 from large
contracts, resulting in a net inflow of working capital.
Nevertheless, Fitch expects FCF to turn negative again in 2018
due to the implementation of large contracts, ongoing capex and
substantial dividend payments. Fitch expects working capital to
normalise over the medium-to long-term, which should result in
positive FCF generation on a sustained basis.

Stable Outlook for Oil Industry: Fitch has a stable outlook for
the Russian oil and gas (O&G) sector, and expects oil production
to grow in 2018 by 1%-3% year-over-year. Russia remains one of
the leading oil producers in the world. Annual modest decreases
of crude oil production in 2017 of 0.1% and in 1H18 of 0.4% were
due to agreements with OPEC on production cuts. The vast majority
of HMS's revenue is driven by Russian companies from the O&G
industry such as Gazprom and Rosneft. Taking into account the
leading market position of HMS, ongoing capex of Russian O&G
majors and the successful long-term relationship of the group
with major O&G companies in Russia, Fitch expects HMS to maintain
stable operating performance.

Weak Geographical Diversification: HMS's ratings are constrained
by limited geographic diversification as the company's primary
focus is Russia. The share of exports at around 10% of sales is
not significant. However, its strong market position underpins
stable demand for the company's products over the long-term.

Limited Customer Diversification: Fitch views HMS's high exposure
to cyclical end-markets as a rating-negative. Moreover, despite a
long list of customers covering around 5,000 clients, customer
diversification is limited as it is dominated by large O&G
companies, constraining HMS's bargaining power and resulting in
lower EBITDA margins than close peer Borets International
Limited's.

Low Share of Aftermarket Services: The contribution of higher
quality aftermarket services revenue to HMS is in the low single-
digits, as most of its customers usually have their own service
departments. Service and aftermarket revenue is recurring income
that is typically less sensitive to economic cycles.

DERIVATION SUMMARY

The ratings of HMS are underpinned by its leading market position
in Russia and CIS, relatively high barriers to entry, long-term
and successful relationship with leading O&G companies, healthy
liquidity and expected stable demand for its products.

HMS is comparable to its Russian and foreign manufacturing peers,
such as Borets International Limited (BB-/Stable), CJSC
Transmashholding (TMH; BB-/Positive), and Flowserve Corporation
(Flowserve; BBB/Negative). A smaller scale of operations than
that of TMH and Flowserve is offset by a strong market position,
low FX mismatch and moderate leverage metrics. However, HMS's
lower share of aftermarket revenue, limited geographical
diversification, weaker profitability and volatile FCF results in
the ratings being lower than those of the Russian peers.

No country-ceiling, parent/subsidiary or operating environment
aspects affect the rating.

KEY ASSUMPTIONS

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

  - Revenue growth of 20% in 2018 due to large contracts,
followed by a single-digit revenue decrease in 2019.

  - Single-digit revenue growth in 2020-2021, averaging 4% yoy.

  - EBITDA margin deteriorating to an average of 12% over 2018-
2021 due to growing competition.

  - Capex intensity in line with the company's guidance at around
4.5% over 2018-2021.

  - Dividend pay-out ratio in line with management's dividend
policy at above 50%.

  - Share buy-back to continue in 2018.

Key Recovery Rating Assumptions

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

  - A 10% administrative claim.

  - Its going-concern EBITDA estimate of RUB4.6 billion reflects
Fitch's view of a sustainable, post-reorganisation EBITDA level
upon which Fitch bases the valuation of the company.

  - Its going-concern EBITDA estimate is 25% below LTM 2017
EBITDA, assuming likely operating challenges at the time of
distress.

  - An enterprise value (EV) multiple of 4x is used to calculate
a post-reorganisation valuation and is in line with multiple
applied to other Russian industrial peers.

  - Fitch estimates the total amount of debt for claims at
RUB18.3 billion, which includes secured bank debt of RUB421
million and unsecured debt of RUB17.9 billion.

  - Fitch calculates the recovery prospects at 89%-100%, but the
Recovery Rating for the RUB3 billion of senior unsecured bond is
limited to 'RR4' due to country considerations.

RATING SENSITIVITIES

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

  - Sustained positive FCF generation after dividends pay-out

  - Improved diversification of end-markets in terms of geography

  - Funds from operations (FFO) adjusted net leverage sustained
below 2.5 x (2017: 2.1x; 2018F: 2.8x)

  - FFO fixed-charge coverage sustained above 3.5x (2017: 3.5x;
2018F: 3.4x)

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

  - Continuous failure to secure large integrated projects from
major Russian O&G companies

  - Higher FX mismatch not offset by appropriate hedging

  - FFO-adjusted net leverage sustained above 3.5x

  - FFO fixed-charge coverage sustained below 2.0x

LIQUIDITY

Healthy Liquidity: As of end-July 2018 HMS had RUB3.9 billion of
cash on its balance sheet, out of which Fitch treats RUB1 billion
as restricted. Together with available undrawn credit facilities
of RUB15.5 billion with maturity of more than one year it should
be more than sufficient to cover expected debt repayment of
RUB760 million and projected negative FCF of RUB882 million
during 2H18-1H19.


SISTEMA PJFSC: S&P Affirms B+ Issuer Credit Rating
--------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
Russian holding company Sistema (PJFSC). The outlook is stable.

S&P said, 'We also affirmed our 'B+' issue ratings on Sistema's
senior unsecured notes issued by a special purpose vehicle
Sistema International Funding S.A. (due in May 2019).

"The affirmation reflects our view that Sistema has been
demonstrating proactive liquidity risk management by refinancing
RUB39 billion (around US$620 million) over the past three months.
In addition, we expect Sistema's financial leverage (as measured
by its loan-to-value [LTV] ratio) will remain sustainably below
50% despite some decrease in the value of its portfolio in the
recent months. We also believe the group is committed to further
deleveraging, which we expect will support the refinancing of
around US$0.8 billion of upcoming maturities in the 12 months
from July 1, 2018 (including the Eurobond due in May 2019) pro
forma the executed refinancing.

"The recent decrease in Sistema's portfolio value was mainly the
result of lower market value of 50.004% of shares in Mobile
TeleSystems PJSC (MTS), representing around 60% of Sistema's
portfolio, which we assess at close to US$7 billion (10% less
than at end-March 2018). Between March 28, 2018, and July 23,
2018, the ADR price of MTS traded at LSE decreased by 21.7% from
US$11.1 to US$8.69. Nevertheless, we believe the stand-alone
credit quality of MTS (which we assess at 'bbb-', ("Russian
Mobile TeleSystems Affirmed At 'BB'; Off CreditWatch Negative;
Outlook Stable," published June 20, 2018) remains unchanged,
supporting the average credit quality of Sistema's assets in our
'BB' category."

Moderate reduction of net financial liabilities, which totaled
RUB217.7 billion at the end of first-quarter 2018, offset the
decreased value of Sistema's portfolio. This was financed by
dividends from investees and the sale of 28.63% of MTS Bank to
MTS at RUB8.27 billion (implying 1.4x capital multiplier) at the
beginning of July 2018. As a result, we assess Sistema's LTV
remains sustainably in the 45%-50% range, somewhat lower than
around 50% at end-March 2018, when we removed the rating from
CreditWatch negative after the settlement from Rosneft.

S&P said, "We understand Sistema's management has a strong
commitment to deleveraging within the next 12 months after debt
increased following the settlement with Rosneft. We believe
deleveraging will be mostly driven by monetization of Sistema's
assets. In our view, this might increase the company's already
significant exposure to MTS, which we continue to see as a rating
constraint, but may ease the pressure on Sistema's metrics if it
uses disposal proceeds for debt repayment. We assume asset
monetization is subject to execution risk and its success will
depend on market conditions. Due to this uncertainty, at this
point we do not include asset monetization (apart from
finalization of monetization of MTS Bank, where Sistema currently
holds 43.24% worth around RUB12 billion) in our base case.

"Despite the high share of listed assets within Sistema's
portfolio at just below 70%, we believe that the pledge of part
of Sistema's listed assets (MTS and Detski Mir) could somewhat
constrain these assets' liquidity. Positively, refinancing of the
Gazprombank loan, as announced by Sistema on July 30, 2018, with
the issuance of a new RUB15 billion unsecured facility from
Otkritie Bank due in July 2021 improves the liquidity of
Sistema's assets, as the pledge over 52.099% of Detski Mir shares
(currently worth around US$550 million) will be removed after
this repayment. That said, we understand that part of the MTS
shares owned by Sistema remain pledged to secure the RUB60
billion outstanding amount under RUB105 billion facility from
Sberbank. If Sistema draws more on this facility, the share of
secured debt in total debt would increase further. At the same
time, we understand management is giving preference to unsecured
financing sources when considering future refinancing options. As
a result, we don't see heightened subordination risks for
unsecured bondholders at this stage.

"Availability of other assets continues to support our business
risk assessment. This includes real estate business Leader Invest
JSC (B/Positive/B), pulp and paper producer Segezha (not rated),
and medical clinics chain Medsi (not rated), among others, in
which Sistema maintains controlling stakes. We understand Sistema
intends to set up its own investment funds as an additional
investment tool and profit source, and it will attract investors
in these funds. That said, we believe a full transition to a fund
management business model, which we see as different from our
definition of investment holding company model, is unlikely in
the next one to two years.

"The stable outlook reflects our expectation that Sistema's LTV
will not exceed 45%-50% in the next 12 months. We expect Sistema
will use a major part of the proceeds for deleveraging if it
sells any assets. That said, we do not expect Sistema will
decrease its stake in MTS below 50%. Finally, our stable outlook
factors in our expectation that Sistema will continue to
proactively manage its liquidity.

"Rating upside will largely depend on the potential gradual
improvements we may observe in Sistema's LTV ratio. We may
upgrade Sistema by one notch to 'BB-' if its LTV stays below 45%
(versus 35% previously) as a result of deleveraging through asset
monetization, most likely, and if its near-term maturities
(including the Eurobond due in May 2019) are comfortably covered
by liquidity sources.

"We could consider a negative rating action if Sistema's
financial risk profile deteriorates, with LTV approaching 55%-60%
or higher. This may be a result of aggressive debt-financed asset
acquisition, which we currently do not expect, or asset
divestment not balanced by proportionate debt reduction, or
deterioration of performance of Sistema's key assets, which is
not our base case. We may also downgrade Sistema if its liquidity
deteriorates."


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


CAIXABANK CONSUMO 3: DBRS Confirms CC Rating on Series B Notes
--------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings of A (high) (sf) on
the Series A notes and CC (sf) on the Series B notes (together,
the Notes) issued by Caixabank Consumo 3 F.T. (the Issuer).

Additionally, DBRS removed the Notes from their Under Review with
Positive Implications (UR-Pos.) status. The Notes were placed UR-
Pos. on April 30, 2018, following the upgrade of the Kingdom of
Spain's Long-Term Foreign and Local Currency - Issuer Rating to
"A" from A (low) and DBRS's analysis of the recent performance of
the Spanish real estate market. The rating actions follow an
annual review of the transaction incorporating the Spanish
sovereign rating upgrade and the following analytical
considerations:

   -- The portfolio performance, in terms of level of
delinquencies and cumulative net losses, as of the June 2018
payment date;

  -- Revised default rate and expected loss assumptions for the
remaining collateral pool, considering the proposed update on the
House Price Indexation (HPI) and Market Value Decline (MVD) rates
as published in "European RMBS Insight: Spanish Addendum -
Request for Comment" methodology; and

  -- The current levels of credit enhancement (CE) available to
the Series A and Series B notes to cover the expected losses
assumed at the A (high) (sf) and CC (sf) rating levels,
respectively.

The rating on the Series A notes addresses the timely payment of
interest and the ultimate repayment of principal on or before the
legal maturity date in March 2053.

The rating on the Series B notes addresses the ultimate payment
of interest and repayment of principal on or before the legal
maturity date in March 2053.

The Issuer is a securitization collateralized by a portfolio of
consumer loans granted by CaixaBank, S.A. (Caixabank) to
individuals in Spain. The portfolio consists of unsecured and
mortgage loans, including standard contracts and drawdowns from a
revolving credit line (Credito Abierto).

PORTFOLIO PERFORMANCE

As of the June 2018 payment date, 30-day to 60-day delinquencies
represented 0.4% of the outstanding principal balance and 60-day
to 90-day delinquencies represented 0.1%, while delinquencies
greater than 90 days represented 2.7%. The gross cumulative
defaults as a ratio of the original portfolio were 0.2%, of which
0.8% have been recovered so far.

PORTFOLIO ASSUMPTIONS

DBRS conducted a loan-by-loan analysis on the remaining pool and
updated its probability of default (PD) and loss given default
(LGD) base case assumptions on the remaining mortgage receivable
portion of the portfolio to 9.7% and 49.8%; and on the remaining
unsecured consumer loan pool to 6.4% and 67.3%, respectively.

The updated assumptions incorporate the Spanish sovereign rating
which was upgraded to "A" from A (low) on 6 April 2018. DBRS
determined that the proposed updated MVDs and HPIs, as per the
"European RMBS Insight: Spanish Addendum - Request for Comment",
do not have any rating impact on this transaction. As a result,
the ratings of the Notes have been removed from UR-Pos.

CREDIT ENHANCEMENT

CE is provided to the Series A notes by the subordination of the
Series B notes and the cash reserve; while CE to the Series B
notes is provided solely by the cash reserve. CE to the Series A
notes increased to 15.1% in June 2018, from 11.0% at closing; CE
to the Series B notes increased to 5.5% from 4.0%.

Caixabank acts as the account bank for the transaction.
Caixabank's reference rating is one notch below its DBRS Long-
Term Critical Obligations Rating of AA (low), which is consistent
with the Minimum Institution Rating, given the rating assigned to
the Series A, as described in DBRS's "Legal Criteria for European
Structured Finance Transactions" methodology.

Notes: All figures are in euros unless otherwise noted.


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


* TURKEY: Banks Propose Rules to Speed Up Debt Restructuring
------------------------------------------------------------
Kerim Karakaya and Ercan Ersoy at Bloomberg News report that
Turkish banks have proposed rules to speed up the restructuring
of company debt and allow lenders to avoid booking problematic
credit as non-performing loans, a move that may help avoid
defaults from piling up.

The program would apply to loans that exceed TRY50 million
(US$10.2 million) for borrowers going through temporary repayment
difficulties, that are willing to repay their debts and would
benefit from a restructuring, Bloomberg relays, citing a
framework of principles proposed by a bank industry group.

The proposal by the Banks Association of Turkey, seen by
Bloomberg, was dated July 24 and members had until July 30 to
provide feedback.  Regulators would have to approve the
recommendation, Bloomberg states.  TBB, as the industry group is
known, represents 46 institutions, including some of the
country's biggest local and international institutions, Bloomberg
notes.

The recommendations come as a 23% slide in the country's currency
against the dollar hammers the ability of companies to repay
their foreign debt to banks, Bloomberg relays.  Interest rate
increases that have taken local borrowing costs to their highest
level in almost a decade to contain a jump in inflation are also
hindering debt repayments, Bloomberg discloses.

TBB is suggesting that a loan be restructured if lenders with
exposure to at least 75% of the total owed agree to do so,
Bloomberg relates.  The proposals show a committee of lenders
could then order measures such as changes to shareholder
structure and management, asset sales, spinoffs and capital
injections, according to Bloomberg.  The document shows
restructurings would be resolved within 150 days of an agreement
being reached, Bloomberg notes.

Companies have been renegotiating more than US$20 billion in
loans as the Turkish lira heads for its longest streak of monthly
losses since an International Monetary Fund bailout in 2001,
Bloomberg recounts.


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


GEMGARTO 2018-1: Moody's Assigns Ca Rating to Class X Notes
-----------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to the Notes issued by Gemgarto 2018-1 Plc:

GBP 210M Class A Mortgage Backed Floating Rate Notes due
September 2065, Definitive Rating Assigned Aaa (sf)

GBP 12.5M Class B Mortgage Backed Floating Rate Notes due
September 2065, Definitive Rating Assigned Aa2 (sf)

GBP 6.25M Class C Mortgage Backed Floating Rate Notes due
September 2065, Definitive Rating Assigned A1 (sf)

GBP 5M Class D Mortgage Backed Floating Rate Notes due September
2065, Definitive Rating Assigned Baa1 (sf)

GBP 8.75M Class E Mortgage Backed Floating Rate Notes due
September 2065, Definitive Rating Assigned Ba1 (sf)

GBP 7.5M Class F Mortgage Backed Floating Rate Notes due
September 2065, Definitive Rating Assigned Caa3 (sf)

GBP 8.75M Class X Floating Rate Notes due September 2065,
Definitive Rating Assigned Ca (sf)

Moody's has not assigned a rating to the GBP 5.0M Class Z Notes
due September 2065, which will also be issued at closing of the
transaction.

The portfolio backing the Class A to F Notes consists of UK prime
residential loans originated by Kensington Mortgage Company
Limited ("KMC", not rated). The loans were sold by KMC to Koala
Warehouse Limited (the "Seller", not rated) at the time of each
loan origination date. On the closing date, the Seller sold the
portfolio to Gemgarto 2018-1 Plc. Approximately, 96.5% of the
pool have been originated during 2018. Class X Notes are not
backed by assets and are repaid from unused excess spread in the
transaction.

RATINGS RATIONALE

The ratings of the Notes take into account, among other factors:
(1) the performance of the previous transactions launched by KMC;
(2) the credit quality of the underlying mortgage loan pool; (3)
legal considerations; (4) credit enhancement by subordination of
Notes, the reserve fund and excess spread; as well as (5) the
ability to add new loans to the collateral pool during the
prefunding period before the first interest payment date (up to
15.5% of the final collateral pool) and during the four year
revolving period. The structure provides at closing for
subordination of asset-backed Notes of 16.0% for Class A; 11.0%
for Class B, 8.5% for Class C, 6.5% for Class D, and 3.0% for
Class E.

Expected Loss and MILAN CE Analysis

Moody's determined the MILAN credit enhancement (MILAN CE) and
the portfolio's expected loss (EL) based on the pool's credit
quality. The MILAN CE reflects the loss Moody's expects the
portfolio to suffer in the event of a severe recession scenario.
The expected portfolio loss of 2.1% and the MILAN CE of 16.0%
serve as input parameters for Moody's cash flow model and
tranching model, which is based on a probabilistic lognormal
distribution.

Portfolio EL of 2.1%: this is higher than the UK Prime RMBS
sector average of ca. 1.1% and was evaluated by assessing the
originator's limited historical performance data and benchmarking
with other UK Prime RMBS transactions. It also takes into account
Moody's stable UK Prime RMBS outlook and the UK economic
environment.

MILAN CE of 16.0%: this is higher than the UK Prime RMBS sector
average of ca. 8.7% and follows Moody's assessment of the loan-
by-loan information taking into account the historical
performance available and the following key drivers: (1) Moody's
classified the loans as prime but borrowers in the portfolio may
have characteristics that would lead to a decline from a high
street lender; (2) the weighted average current loan-to-value
(CLTV) of 75.7%; (3) the very low seasoning of 0.27 years; (4)
the absence of any right-to-buy, shared equity, fast track or
self-certified loans; (5) the proportion of help-to-buy loans
(14.6%); and (6) the ability to add new loans to the collateral
pool during the prefunding period before the first interest
payment date (up to 15.5% of the final collateral pool) as well
as during the four year revolving period and portfolio criteria
to limit changes in portfolio characteristics during the
prefunding and the revolving period.

Transaction structure

At closing, the mortgage pool balance consists of GBP 212.2
million of loans. At closing, the Reserve Fund is equal to 2.1%
of the principal amount outstanding of Class A to F Notes and
will be reduced to 2.0% of the original balance of Class A to F
Notes on the first interest payment date. This amount will only
be available to pay senior expenses, Class A to E Notes interest
and to cover Class A to E losses. The Reserve Fund will not be
amortising as long as the Class A to E Notes are outstanding and
will afterwards be released to the revenue waterfall. If the
Reserve Fund is less than 1.5% of the principal outstanding of
Class A to F Notes, a liquidity reserve fund will be funded with
principal proceeds up to an amount equal to 2.0% of Class A and B
Notes outstanding.

Operational risk analysis

KMC is acting as servicer and cash manager in the transaction. In
order to mitigate the operational risk, there is a back-up
servicer facilitator CSC Capital Markets UK Limited (not rated,
also acting as corporate services provider), and Wells Fargo Bank
International Unlimited Company (not rated) acts as a back-up
cash manager from close.

All of the payments under the loans in the securitised pool are
paid into the collection account in the name of KMC at Barclays
Bank PLC ("Barclays", A2/P-1 and A2(cr)/P-1(cr)). There is a
daily sweep of the funds held in the collection account into the
issuer account. In the event Barclays rating falls below Baa3 the
collection account will be transferred to an entity rated at
least Baa3. There is a declaration of trust over the collection
account held with Barclays in favour of the Issuer. The issuer
account is held in the name of the Issuer at Citibank N.A.,
London Branch (A1/(P)P-1 and A1(cr)/P-1(cr)) with a transfer
requirement if the rating of the account bank falls below A3.

To ensure payment continuity over the transaction's lifetime the
transaction documents incorporate estimation language whereby the
cash manager can use the three most recent servicer reports to
determine the cash allocation in case no servicer report is
available. In case of a cash manager termination event, the back-
up cash manager appointed at closing will on short notice take
over the cash manager's obligations. The transaction also
benefits from principal to pay interest for Class A to E Notes,
subject to certain conditions being met.

Interest rate risk analysis

100% of the loans in the closing pool are fixed-rate mortgages,
which will revert to three-month sterling LIBOR plus margin
between March 2019 and June 2022. The Note coupons are linked to
three-month sterling LIBOR, which leads to a fixed-floating rate
mismatch in the transaction. To mitigate the fixed-floating rate
mismatch the structure benefits from a fixed-floating interest
rate swap. The swap will mature the earlier of the date on which
floating rating Notes have redeemed in full or the date on which
the swap notional is reduced to zero. BNP Paribas (Aa3/P-1 and
Aa3(cr)/P-1(cr)) acting through its London Branch, is the swap
counterparty for the fixed-floating interest rate swap in the
transaction.

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

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see "Moody's Approach to Rating RMBS Using the
MILAN Framework" for further information on Moody's analysis at
the initial rating assignment and the on-going surveillance in
RMBS.

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

Significantly different loss assumptions compared with itd
expectations at close due to either a change in economic
conditions from its central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecasted, higher
defaults and loss severities resulting from higher unemployment,
worsening household affordability and a weaker housing market
could result in a downgrade of the ratings. Deleveraging of the
capital structure or conversely a deterioration in the Notes'
available credit enhancement could result in an upgrade or a
downgrade of the ratings, respectively.

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


NATIONAL GAS: Licenses Revoked Following Default, Halts Trading
---------------------------------------------------------------
Anna Shiryaevskaya at Bloomberg News reports that regulator Ofgem
said in a statement National Gas and Power Ltd., with around 80
non-domestic customers, ceased trading.

According to Bloomberg, Hudson Energy was appointed supplier of
last resort for these customers.

NGP's gas and power supply licenses were revoked after the
company was unable to pay its debts to Hudson Energy, Bloomberg
relates.

"National Gas and Power's customers will continue to receive
energy supplies as normal," Bloomberg quotes Ofgem as saying.

National Gas and Power Ltd., is a small U.K. utility company.


RESLOC UK 2007-1: S&P Raises Class E1b Notes Rating to BB (sf)
--------------------------------------------------------------
S&P Global Ratings raised its credit ratings on all classes of
notes in ResLoC U.K. 2007-1 PLC.

S&P said, "The upgrades follow our full analysis based on the
most recent transaction information that we received from the
servicer (dated March 2018), and reflect the transaction's
current structural features.

"We applied our relevant criteria including our European
residential loans criteria and our current counterparty criteria.

"The transaction is currently paying down the notes pro rata,
which has limited the build-up of credit enhancement since our
July 29, 2016, review. Credit enhancement has slightly increased
to 41.8% (for the class A3a, A3b, and A3c notes), 26.2% (for the
class M1a and M1b notes), 18.3% (for the class B1a and B1b
notes), 12.7% (for the class C1a and C1b notes), and 5.3% (for
the class D1a and D1b notes).

"Delinquencies of more than 90 days remain low compared with
other U.K. nonconforming transactions that we rate and have
decreased since our previous review, to 3.6% from 5.5%. Total
delinquencies have declined to 13.0% from 13.7% since July 2016.

"Our weighted-average foreclosure frequency (WAFF) assumptions
have improved since our previous review, mainly because of
falling arrears and increased seasoning. Our weighted-average
loss severity (WALS) assumptions are lower at each rating level
since our previous review because the lower current weighted-
average loan-to-value ratio is offset by increased market value
decline assumptions."

  WAFF AND WALS ASSUMPTIONS
  Rating                  WAFF           WALS
                         (%)            (%)
  AAA                    28.76           44.87
  AA                     22.59           37.92
  A                      17.64           25.96
  BBB                    13.75           19.04
  BB                      9.80           14.27
  B                       8.15           10.41

S&P said, "The liquidity facility documentation does not comply
with our current counterparty criteria as there are no draw-to-
cash mechanics defined in the contract. Therefore, and giving
benefit to the liquidity facility, our ratings on the notes are
capped at our long-term issuer credit rating (ICR) on the
liquidity facility provider, Lloyds Bank PLC (A+/Stable/A-1).

"In addition, the currency swap agreements do not fully comply
with our current counterparty criteria. However, these contracts
contain replacement options and remedy periods. Therefore, the
noncompliance of the currency swap documents results in our
ratings on the notes being capped at our long-term ICR on each of
the swap providers, Morgan Stanley & Co. International PLC
(A+/Stable/A-1) and Barclays Bank PLC (A/Stable/A-1), plus one
notch, in line with our current counterparty criteria.

"The basis swap agreement does not fully comply with our current
counterparty criteria and the agreement was breached as in the
past the basis swap counterparty was not replaced based on the
triggers defined in the contract. Consequently, our current
counterparty criteria cap our ratings on the notes at our long-
term ICR of the swap provider, Morgan Stanley Capital Services
LLC (A+/Stable/A-1).

"The liquidity facility will be unavailable for the transaction
if 90-plus-day arrears exceed 19.5%. There are also additional
stop usage triggers set up by the transaction documentation.
Under our European residential loans criteria, we assume
recession timing at inception and at the end of year three. Our
cash flow model suggests that the liquidity stop usage triggers
are breached shortly after the beginning of defaults application
in most rating categories, except for 'B', when the recession is
delayed by three years.

"The application of our European residential loans criteria,
including our updated credit figures and our cash flow analysis,
indicates that the available credit enhancement for the class
A3a, A3b, and A3c notes is now commensurate with 'A (sf)' ratings
and with a 'BBB+ (sf)' rating for the class M1a and M1b notes. We
have therefore raised to 'A (sf)' from 'BBB+ (sf)' our ratings on
the class A3a, A3b, and A3c notes, and to 'BBB+ (sf)' from 'BBB
(sf)' our ratings on the class M1a and M1b notes.

"The application of our European residential loans criteria,
including our updated credit figures and our cash flow analysis,
indicates that class B1a, B1b, C1a, C1b, D1a, D1b, and E1b notes
could withstand our stresses at higher rating levels than those
assigned. However, our ratings reflect the different credit
enhancements available for each and their position in the capital
structure. We have therefore raised to 'BBB (sf)' from 'BBB-
(sf)' our ratings on the class B1a and B1b notes, to 'BBB- (sf)'
from 'BB+ (sf)' our ratings on the class C1a and C1b notes, to
'BB+ (sf)' from 'BB (sf)' our ratings on the class D1a and D1b
notes, and to 'BB (sf)' from 'B+ (sf)' our rating on the class
E1b notes."

ResLoC U.K. 2007-1 is backed by nonconforming residential
mortgage loans secured over U.K. freehold and leasehold
properties. The mortgage loans were originated by Morgan Stanley
Advantage Services (the trading name of Morgan Stanley Bank
International Ltd.), GMAC Residential Funding Co. LLC (now known
as Paratus AMC Ltd.), Amber Homeloans Ltd., and Victoria Mortgage
Funding Ltd.

  RATINGS LIST

  RATINGS RAISED

  ResLoC U.K. 2007-1 PLC
  EUR395.5 Million, GBP485.795 Million, And $303.7 Million
  Mortgage-Backed Floating-Rate Notes

  Class            Rating
               To             From

  A3a         A (sf)         BBB+ (sf)
  A3b         A (sf)         BBB+ (sf)
  A3c         A (sf)         BBB+ (sf)
  M1a         BBB+ (sf)      BBB (sf)
  M1b         BBB+ (sf)      BBB (sf)
  B1a         BBB (sf)       BBB- (sf)
  B1b         BBB (sf)       BBB- (sf)
  C1a         BBB- (sf)      BB+ (sf)
  C1b         BBB- (sf)      BB+ (sf)
  D1a         BB+ (sf)       BB (sf)
  D1b         BB+ (sf)       BB (sf)
  E1b         BB (sf)        B+ (sf)


TOWD POINT 2018-AUBURN: DBRS Puts BB(low) Rating to Cl. E Notes
-----------------------------------------------------------------
DBRS Ratings Limited assigned provisional ratings to the notes to
be issued by Towd Point Mortgage Funding 2018-Auburn 12 Plc.
(Auburn 12 or the Issuer) as follows:

-- Class A notes rated AAA (sf)
-- Class B notes rated AA (low) (sf)
-- Class C notes rated A (low) (sf)
-- Class D notes rated BBB (low) (sf)
-- Class E notes rated BB (low) (sf)

The Class F notes are not rated.

The Class A notes is provisionally rated for timely payment of
interest and ultimate payment of principal. The Class B notes,
Class C notes, Class D notes and Class E notes are provisionally
rated for ultimate payment of interest (subject to the net
weighted-average coupon cap (Net WAC Cap)) and ultimate payment
of principal. The Net WAC Cap is calculated as the WAC due on the
asset portfolio less the senior fee cap of 0.3% divided by the
floating-rate note percentage, which is the outstanding balance
of the Class A to Class E Notes divided by the outstanding
balances of the mortgage portfolio. In the event that the
interest paid to the Class A to Class E Notes is lower than the
coupon based on the net WAC cap, the difference is to be paid to
the note holders subordinated in the revenue priority of payments
as net WAC additional amounts. Such payments are not addressed in
the ratings assigned by DBRS.

Auburn 12 is the refinancing of Auburn Securities 9 plc. (Auburn
9). Auburn 12 is a bankruptcy-remote special-purpose vehicle
incorporated in the United Kingdom. The issued notes will be used
to fund the purchase of U.K. buy-to-let (BTL) and owner-occupied
residential mortgage loans originated by Capital Home Loans
Limited (CHL). These loans currently collateralize the
outstanding notes under the Auburn 9 transaction. CHL ceased
mortgage originations in 2008. Servicing is undertaken by CHL
with Home loan Management Limited (HML) expected to be appointed
as Backup Servicer. The legal title to the residential mortgage
loans is held by CHL.

CHL is an experienced entity in the BTL sector and originated a
number of residential mortgage-backed securities transactions
before 2008 through its Auburn securitization platform. The
Auburn programme was established in November 1998 (Auburn 1) with
eight further stand-alone securitizations publicly issued. The
latest securitizations originated post-2008 by CHL are Auburn 9
(July 2015), Towd Point Mortgage Funding 2016-Auburn 10 Plc.
(October 2016) and Towd Point Mortgage Funding 2017-Auburn 11
Plc. (February 2017).

Credit enhancement is expected to be provided in the form of
subordination of the junior notes.

The credit enhancement available to the Class A notes is 16.9%,
provided by subordination of the Class B, Class C, Class D, Class
E and Class F notes. Credit enhancement available to the Class B
notes is 10.3%, Class C notes is 7.5%, Class D notes is 5.0% and
Class E notes is 2.4%. Credit enhancement percentages are
expressed as a percentage of the portfolio balance.

The liquidity support for the Class A notes is initially
available through a liquidity facility provided by Salisbury
Receivables Company LLC (on an uncommitted basis) and Barclays
Bank PLC (Barclays; rated "A" with a Stable trend by DBRS) (on a
committed basis). The liquidity facility is equal to 1.7% of the
Class A notes and is available until the First Optional
Redemption Date (FORD). From the FORD, the liquidity facility
will be replaced by the liquidity reserve fund (LRF), which has a
target balance of 1.7% of the Class A notes funded by the Senior
Deferred Coupon (SDC) Ledger. To the extent that the LRF has not
been funded to the required level, the liquidity facility will
continue to support the Class A notes' interest payments. Any
shortfalls in funding the LRF up to the required amount will be
made good using excess spread after crediting the Class E notes'
principal deficiency ledger (PDL) in accordance with the interest
priority of payments. Further shortfalls can be funded by
principal receipts from the assets. Until the point where the LRF
reaches the required level, for the first time, ignoring any
debits (usage of the LRF to support the Class A notes' interest
payments), principal available funds will be used to top up any
interest payment dates (IPDs) after the FORD. After the LRF
reaches the required level for the first time, principal funds
will no longer be used to replenish the LRF to the required
level. The LRF is floored at 1.00% of the initial Class A notes'
balance.

Liquidity to the junior notes will be provided by the Excess Cash
Flow Reserve Fund (XSRF), which will come into existence from
closing and is funded via excess spread. On the IPD, when all the
Class A notes outstanding has been paid, the amounts in the LRF
will be used to fund the XSRF. On the FORD, the XSRF will be
funded by any amount left in the SDC Ledger after the funding of
the LRF. On each IPD after the FORD, the amounts trapped in the
SDC Ledger minus the senior fees payable will be used to fund the
XSRF. The XSRF will be used to support shortfalls on payment of
interest to the Class B, Class C, Class D and Class E notes.

0.3% p.a. of the aggregate principal balance of the loans at the
end of each of the three months in a collection period, minus
senior expenses, is set aside from the available revenue. Such
amounts are credited to the SDC Ledger each IPD, until the FORD.
There is no target amount for the funds collected in the SDC
Ledger. The amounts credited to the SDC Ledger are used to pay
senior fees, interest on the drawn amount of the liquidity
facility, Class A note interest and Class A note PDL.

The liquidity support to the notes is further enhanced by the use
of principal receipts to support the most-senior outstanding
class of notes.

The provisional portfolio balance as of May 31, 2018 equates to
approximately GBP 393 million. The portfolio is significantly
seasoned with a weighted-average seasoning of 11.5 years. The
majority of the portfolio was originated between 2005 and 2008
(91.6%). DBRS calculated the weighted-average current LTV
(WACLTV) based on the current loan balance and original property
valuation of 58.1%. The indexed WACLTV is 58.2%. Of the mortgage
portfolio, 93.1% comprises interest-only mortgage loans. The high
concentration is a consequence of the BTL loans in the portfolio
(96.5%). The performance of BTL loans have been relatively
stronger than owner-occupied loans.

The weighted-average coupon generated by the mortgage loans
stands at 2.1%. The interest rate is low, as the loans are
indexed to the bank base rate (98.7%). The remaining 1.3% is
linked to a standard variable rate. The interest payable on the
rated notes is linked to three months' GBP LIBOR. The average
annualized prepayment rate (CPR) on the Auburn 9 mortgage
portfolio has trended at approximately 7% over the last two
years; however, DBRS notes the transaction structure is sensitive
to low CPR rates. DBRS will continue to monitor CPR rates as part
of its surveillance process.

CHL is appointed as the servicer with HML appointed as the
backup-servicer. The monthly receipts are deposited into the
collections account at Barclays and held on trust by the legal
titleholder in accordance with the collection account declaration
of trust. The funds credited to the collection are swept daily
into the transaction account. The daily sweep of funds mitigates
the potential risk of disruption in servicing, particularly
following a servicer event of default, including insolvency. The
funds credited to the collections account are swept daily into
the transaction account in the name of the Issuer, which is held
with HSBC Bank plc. The legal titleholder has declared a trust
over the funds in the collections account in favor of the Issuer.
The transaction documents include account bank rating triggers
and downgrade provisions that lead DBRS to conclude that the
account bank satisfies DBRS's "Legal Criteria for European
Structured Finance Transactions" methodology.

The mortgage sale agreement contains representations and
warranties given by CHL in relation to the portfolio. Upon breach
of representation or warranties, CHL is required to repurchase or
indemnify the Issuer. CHL may have limited resources at its
disposal to fund such a repurchase. Given the significant
seasoning of the loans in the mortgage portfolio, loans in breach
of warranties would have been expected to be identified during
the earlier life of the loans. Any future breach of
representation or warranty is expected to be limited.

The rating assignments are based on a review by DBRS of the
following analytical considerations:

   -- Transaction capital structure, proposed ratings and form
and sufficiency of available credit enhancement.

   -- The credit quality of the mortgage loan portfolio and
ability of the servicer to perform collection activities. DBRS
calculated probability of default, loss given default (LGD) and
expected loss outputs on the mortgage loan portfolio.

  -- The ability of the transaction to withstand stressed cash
flow assumptions and repay the rated notes according to the terms
of the transaction documents. The transaction cash flows were
modeled using portfolio default (PD) rates and LGD outputs
provided by the European RMBS Insight Model. Transaction cash
flows were projected using INTEX Dealmaker.

   -- The legal structure and presence of legal opinions
addressing the assignment of the assets to the Issuer and
consistency with DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.

Notes: All figures are in British pounds sterling unless
otherwise noted.


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


* DBRS Extends Review of 33 Tranches From 17 Finance Transactions
-----------------------------------------------------------------
DBRS Ratings Limited extended its Under Review with Positive
Implication Status (UR-Pos.) on 33 tranches from 17 European
Structured Finance transactions.

The rating actions reflect the publication of the "European RMBS
Insight: Spanish Addendum - Request for Comment" (the Updated
Methodology) on July 24, 2018
https://www.dbrs.com/research/330614/european-rmbs-insight-
spanish-addendum-request-for-comment.

In the Updated Methodology, DBRS updated its house price
indexation and market value decline rates to reflect data through
the third quarter of 2017. Such periodic updates are envisaged in
the European RMBS Insight Methodology.

The 33 ratings were initially placed UR-Pos. on April 30, 2018,
following the Kingdom of Spain's (Spain) Long-Term Foreign and
Local Currency - Issuer Rating being upgraded to "A", with a
Stable trend on 6 April 2018 from A (low) (see DBRS press release
entitled, "DBRS Upgrades the Kingdom of Spain to A, Stable
Trend"), and DBRS's analysis of the Spanish real estate market's
recent performance.

Spain's sovereign upgrade has already been incorporated into the
default rates and expected loss assumptions for each transaction.
DBRS considers that these assumptions could improve further as a
result of the proposed update to the house price indexation and
market value decline rates as per the Updated Methodology. The
combined effect of both would likely result in a confirmation or
upgrade of the current ratings.

Notes: All figures are in euros unless otherwise noted.

The Affected Ratings is available at https://bit.ly/2NYNheb



                            *********

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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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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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